Document:

fl_8k1130ex.htm

     

    

    Exhibit
      10.1

    

    

    

    

    

    

    THE
      FINISH LINE, INC.

    NON-QUALIFIED
      DEFERRED

    COMPENSATION
      PLAN

    2008

    

    

    

    

    

    

    

    

    

    

    
      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

    

    

    TABLE
      OF CONTENTS

    

    

    Page

    
      	
              ARTICLE
                I PURPOSE

            	
              1

            
	 	 
	
              ARTICLE
                II DEFINITIONS

            	
              1

            
	
              2.01

            	
              “Account”

            	
              1

            
	
              2.02

            	
              “Affiliate”

            	
              1

            
	
              2.03

            	
              “Beneficiary”

            	
              1

            
	
              2.04

            	
              “Change
                in Control”

            	
              2

            
	
              2.05

            	
              “Code”

            	
              4

            
	
              2.06

            	
              “Committee”

            	
              4

            
	
              2.07

            	
              “Company”

            	
              4

            
	
              2.08

            	
              “Compensation”

            	
              4

            
	
              2.09

            	
              “Compensation
                Deferral”

            	
              4

            
	
              2.10

            	
              “Eligible
                Employee”

            	
              4

            
	
              2.11

            	
              “Matching
                Contribution”

            	
              4

            
	
              2.12

            	
              “Participant”

            	
              4

            
	
              2.13

            	
              “Plan”

            	
              4

            
	
              2.14

            	
              “Plan
                Year”

            	
              5

            
	
              2.15

            	
              “Performance
                Bonus”

            	
              5

            
	
              2.16

            	
              “Performance
                Bonus Deferral”

            	
              5

            
	
              2.17

            	
              “Qualified
                Plan”

            	
              5

            
	
              2.18

            	
              “Regulations”

            	
              5

            
	
              2.19

            	
              “Separation
                from Service”

            	
              5

            
	
              2.20

            	
              “Specified
                Employee”

            	
              5

            
	 	 
	
              ARTICLE
                III ELIGIBLE EMPLOYEE COMPENSATION DEFERRALS

            	
              6

            
	
              3.01

            	
              Compensation
                Deferrals

            	
              6

            
	
              3.02

            	
              Performance
                Bonus Deferrals

            	
              6

            
	
              3.03

            	
              Coordination
                with Qualified Plan

            	
              7

            
	
              3.04

            	
              Matching
                Contributions

            	
              7

            
	 	 
	
              ARTICLE
                IV EARNINGS

            	
              8

            
	 	 
	
              ARTICLE
                V VESTING

            	
              8

            
	 	 
	
              ARTICLE
                VI DISTRIBUTIONS

            	
              8

            
	
              6.01

            	
              Distribution
                of Benefits

            	
              8

            
	
              6.02

            	
              Death

            	
              10

            
	
              6.03

            	
              Hardship
                Withdrawal

            	
              10

            
	
              6.04

            	
              Valuation

            	
              10

            
	
              6.05

            	
              Withholding

            	
              10

            
	
              6.06

            	
              Deferred
                Commencement

            	
              10

            
	
              6.07

            	
              Payment
                of Small Accounts

            	
              11

            
	
              6.08

            	
              Distributions
                Upon Income Inclusion Under Section 409A of The Code

            	
              11

            
	 	 

    

    

    

    
      
        
          
          

        

        
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              ARTICLE
                VII MISCELLANEOUS

            	
              11

            
	
              7.01

            	
              Limitation
                of Rights

            	
              11

            
	
              7.02

            	
              Additional
                Restrictions

            	
              11

            
	
              7.03

            	
              Claims
                Procedure

            	
              11

            
	
              7.04

            	
              Indemnification

            	
              12

            
	
              7.05

            	
              Assignment

            	
              12

            
	
              7.06

            	
              Inability
                to Locate Recipient

            	
              12

            
	
              7.07

            	
              Amendment
                and Termination

            	
              12

            
	
              7.08

            	
              Applicable
                Law

            	
              13

            
	
              7.09

            	
              No
                Funding

            	
              13

            
	
              7.10

            	
              Trust

            	
              13

            

    

    

    
      
        
          
          

        

        
          ii

          
            

          

        

        
          
          

        

      

    

    

    THE
      FINISH LINE, INC.

    NON-QUALIFIED
      DEFERRED

    COMPENSATION
      PLAN

    (EFFECTIVE
      JANUARY 1, 2008)

    

    ARTICLE
      I

    PURPOSE

     

    This
      Finish Line, Inc. Non-Qualified Deferred Compensation Plan (the “Plan”) is
      designed to restore to selected employees of The Finish Line, Inc. (the
“Company”) and its affiliates certain benefits that cannot be provided under the
      tax-qualified plans maintained by the Company and its
      affiliates.  This Plan is adopted effective as of January 1,
      2008.

     

    This
      Plan
      is intended to comply with the provisions of Section 409A of the Internal
      Revenue Code applicable to deferred compensation arrangements and shall be
      administered and operated in conformity with those provisions and applicable
      Treasury Regulations.

     

    This
      Plan
      is intended to be a plan that is unfunded and maintained by The Finish Line,
      Inc. primarily for the purpose of providing deferred compensation for a select
      group of management or highly compensated employees within the meaning of the
      Employee Retirement Income Security Act of 1974 (“ERISA”).

     

    ARTICLE
      II

    DEFINITIONS

     

    In
      this
      Plan, the following terms have the meanings indicated below:

     

    2.01           “Account”   means
      the account maintained under the Plan for each Participant which is credited
      with amounts under Article III of the Plan and adjusted
      periodically  for investment performance under Article IV of the Plan
      and distributions or withdrawals in accordance with Article VII.  Each
      Participant’s Account shall be divided into a series of Plan Year Subaccounts,
      one for each Plan Year for which the Participant defers any Compensation under
      the Plan.  To the extent it considers necessary or appropriate, the
      Committee or its delegate may further divide each such Plan Year Subaccount
      into
      a series of separate subaccounts so that each category of deferred Compensation
      may be credited to its own separate subcategories within that particular Plan
      Year Subaccount.

     

    2.02           “Affiliate”
      means an entity required to be aggregated with the Company under
      Section 414(b), (c) or (m) of the Code.

     

    2.03           “Beneficiary”  means
      the person or persons, natural or otherwise, designated in writing, to receive
      a
      Participant’s vested Account if the Participant dies before distribution of the
      entire vested balance credited to that Account.  A Participant may
      designate one or more primary Beneficiaries and one or more secondary
      Beneficiaries.  A Participant’s Beneficiary designation must be made
      in writing pursuant to such procedures as the Committee may establish
      and

     

    

    
      
        
          
          

        

        
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    delivered
      to the Committee before the Participant’s death.  The Participant may
      revoke or change this designation at any time before his or her death by
      following such procedures as the Committee may establish.  If the
      Committee has not received a Participant’s Beneficiary designation before the
      Participant’s death or if the Participant does not otherwise have an effective
      Beneficiary designation on file when he or she dies, the vested balance of
      such
      Participant’s Account will be distributed to his or her estate.

     

    2.04           “Change
      in Control” shall mean any of the following:

     

    
      	
               

            	
              (1)

            	
              a
                change in the ownership of the Company, which shall occur on the
                date that
                any one person, or more than one person acting as a group, acquires
                ownership of stock of the Company that, together with stock held
                by such
                person or group, constitutes more than fifty percent (50%) of the
                total
                fair market value or total voting power of the stock of the
                Company.  However, if any one person, or more than one person
                acting as a group, is considered to own more than fifty percent (50%)
                of
                the total fair market value or total voting power of the stock of
                the
                Company, the acquisition of additional stock by the same person or
                persons
                is not considered to cause a change in the ownership of the Company
                (or to
                cause a change in the effective control of the Company (within the
                meaning
                of subsection (2)).  An increase in the percentage of stock
                owned by any one person, or persons acting as a group, as a result
                of a
                transaction in which the Company acquires its stock in exchange for
                property will be treated as an acquisition of stock for purposes
                of this
                subsection.  This subsection applies only when there is a
                transfer of stock of the Company (or issuance of stock of the Company)
                and
                stock in the Company remains outstanding after the
                transaction.

            

    

     

    
      	
               

            	
              (2)

            	
              a
                change in the effective control of the Company, which shall occur
                only on
                either of the following dates:

            

    

     

    
      	
               

            	
              (i)

            	
              the
                date any one person, or more than one person acting as a group acquires
                (or has acquired during the 12 month period ending on the date of
                the most
                recent acquisition by such person or persons) ownership of stock
                of the
                Company possessing thirty five percent (35%) or more of the total
                voting
                power of the stock of the Company.

            

    

     

    
      	
               

            	
              (ii)

            	
              the
                date a majority of members of the Company’s board of directors is replaced
                during any 12 month period by directors whose appointment or election
                is
                not endorsed by a majority of the members of the Company’s board of
                directors before the date of the appointment or election; provided,
                however, that this provision shall not apply if another corporation
                is a majority shareholder of the
                Company.

            

    

     

    

    
      
        
          
          

        

        
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                If
                  any one person, or more than one person acting as a group, is considered
                  to effectively control the Company, the acquisition of additional
                  control
                  of the Company by the same person or persons is not considered
                  to cause a
                  change in the effective control of the Company (or to cause a change
                  in
                  the ownership of the Company within the meaning of subsection (1)
                  of this
                  section).

              

      

       

    

    
      	
               

            	
              (3)

            	
              a
                change in the ownership of a substantial portion of the Company’s assets,
                which shall occur on the date that any one person, or more than one
                person
                acting as a group, acquires (or has acquired during the 12 month
                period
                ending on the date of the most recent acquisition by such person
                or
                persons) assets from the Company that have a total gross fair market
                value
                equal to or more than forty percent (40%) of the total gross fair
                market
                value of all of the assets of the Company immediately before such
                acquisition or acquisitions.  For this purpose, gross fair
                market value means the value of the assets of the Company, or the
                value of
                the assets being disposed of, determined without regard to any liabilities
                associated with such assets.  No change in control event occurs
                under this subsection (3) when there is a transfer to an entity that
                is
                controlled by the shareholders of the Company immediately after the
                transfer.  A transfer of assets by the Company is not treated as
                a change in the ownership of such assets if the assets are transferred
                to
                –

            

    

     

    
      	
               

            	
              (i)

            	
              a
                shareholder of the Company (immediately before the asset transfer)
                in
                exchange for or with respect to its
                stock;

            

    

     

    
      	
               

            	
              (ii)

            	
              an
                entity, 50 percent or more of the total value or voting power of
                which is
                owned, directly or indirectly, by the
                Company.

            

    

     

    
      	
               

            	
              (iii)

            	
              a
                person, or more than one person acting as a group, that owns, directly
                or
                indirectly, 50 percent or more of the total value or voting power
                of all
                the outstanding stock of the Company;
                or

            

    

     

    
      	
               

            	
              (iv)

            	
              an
                entity, at least 50 percent of the total value or voting power of
                which is
                owned, directly or indirectly, by a person described in paragraph
                (iii).

            

    

     

    For
      purposes of this subsection (3) and except as otherwise provided in paragraph
      (i) above, a person’s status is determined immediately after the transfer of the
      assets.  For purposes of this section, persons will not be considered
      to be acting as a group solely because they purchase or own stock of the same
      corporation at the same time, or as a result of the same public
      offering.  However, persons will be considered to be acting as a group
      if they are owners of a corporation that enters into a merger, consolidation,
      purchase or acquisition of stock, or similar business transaction with the
      Company.  If a person, including an entity, owns stock in both
      corporations that enter into a merger, consolidation, purchase

     

    

    
      
        
          
          

        

        
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    or
      acquisition of stock, or similar transaction, such shareholder is considered
      to
      be acting as a group with other shareholders only with respect to the ownership
      in that corporation before the transaction giving rise to the change and not
      with respect to the ownership interest in the other corporation.

     

    2.05           “Code”
      means the Internal Revenue Code of 1986, as amended from time to
      time.

     

    2.06           “Committee”
      means the Compensation and Stock Option Committee of the Company’s Board of
      Directors or a subcommittee of one or more members thereof.  The
      Committee shall have full discretionary authority to administer and interpret
      the Plan, to determine eligibility for Plan benefits, to select employees for
      Plan participation, to determine the benefit entitlement of each Participant
      and
      Beneficiary hereunder and to correct errors.  The Committee may
      delegate one or more of its duties and responsibilities hereunder to an officer
      of the Company and unless the Committee expressly provides to the contrary,
      any
      such delegation will carry with it the Committee’s full discretionary authority
      with respect to the delegated duties and responsibilities.  In no
      event, however, shall the Committee delegate its authority to amend or terminate
      the Plan pursuant to the provisions of Sections 7.02 and 7.07. Decisions of
      the Committee or its delegate will be final and binding on all
      persons.

     

    2.07           “Company”
      means The Finish Line, Inc., an Indiana corporation.

     

    2.08           “Compensation”
      means compensation as defined in the Qualified Plan, as constituted from time
      to
      time, other than Performance Bonuses and without regard to the application
      of
      the limitation under Code Section 401(a)(17).

     

    2.09           “Compensation
      Deferral” means an election by a Participant to defer the receipt of
      Compensation in accordance with the requirements of Article III of this
      Plan.

     

    2.10           “Eligible
      Employee” means each management or highly compensated employee of the
      Company or an Affiliate whose participation in the Plan is authorized by the
      Committee.  Qualification as an Eligible Employee shall be on a Plan
      Year by Plan Year basis, and an individual who qualifies as an Eligible Employee
      for a particular Plan Year will automatically cease to be such an Eligible
      Employee upon the earlier of (a) the beginning of any Plan Year in which the
      individual ceases to meet any qualification requirements established by the
      Committee or (b) the date the Plan is terminated.  In addition, the
      Committee may, in its sole discretion, place further requirements and/or
      limitations on an Eligible Employee’s participation in any portion of the
      Plan.

     

    2.11           “Matching
      Contribution” means a matching contribution pursuant to Section 3.04 of
      this Plan.

     

    2.12           “Participant”
      means a current or former Eligible Employee for whom an Account (including
      one
      or more Plan Year Subaccounts) is maintained.

     

    2.13           “Plan”
      means The Finish Line, Inc. Non-Qualified Deferred Compensation Plan, as amended
      from time to time.

     

    

    
      
        
          
          

        

        
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        2.14           “Plan
        Year” means the calendar year.

    

     

    2.15           “Performance
      Bonus” means an amount awarded to an Eligible Employee as “performance-based
      compensation,” as defined in Section 409A(a)(4)(B)(iii) of the Code and the
      Regulations.

     

    2.16           “Performance
      Bonus Deferral” means an election by a Participant to defer the receipt of a
      Performance Bonus in accordance with the requirements of Article III of this
      Plan.

     

    2.17           “Qualified
      Plan” means The Finish Line Profit Sharing and 401(k) Plan, as amended from
      time to time.

     

    2.18           “Regulations”
      mean Treasury Regulations issued pursuant to the Code.

     

    2.19           “Separation
      from Service” means the termination of the Participant’s employment with the
      Company and any Affiliate for reasons other than death.  Whether a
      termination of employment takes place is determined based on the facts and
      circumstances surrounding the termination of the Participant’s
      employment.  A termination of employment will be considered to have
      occurred if it is reasonably anticipated that:

     

    (a)           the
      Participant will not perform any services for the Company after termination
      of
      employment, or

     

    (b)           the
      Participant will continue to provide services to the Company at an annual rate
      that is less than fifty percent (50%) of the average of the bona fide services
      rendered during the immediately preceding thirty-six (36) months of
      employment.

     

    2.20           “Specified
      Employee” means for each April 1 through March 31 period each
      individual identified by the Company as of the immediately preceding December
      31
      as a “key employee,” as defined under Section 416(i) of the Code,
      disregarding Section 416(i)(5) of the Code.

     

    

    

    
      
        
          
          

        

        
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    ARTICLE
      III

    ELIGIBLE
      EMPLOYEE COMPENSATION DEFERRALS

    

     

    3.01           Compensation
      Deferrals.

     

    (a)           Elections.  In
      order to be eligible to make Compensation Deferrals for a Plan Year, an Eligible
      Employee must file an appropriate deferral election for that Plan
      Year.  Such election must be made before the start of the Plan Year in
      which the Compensation subject to that election is to be
      earned.  However, if an individual first becomes eligible to
      participate in this Plan after the start of a Plan Year (and is not already
      eligible to participate in any other “account balance plan” (as defined in
      Proposed Treasury Regulation Section 1.409A-1(c)(2)(i)(A)) of the Company),
      that individual may elect, within thirty (30) days after he or she first becomes
      eligible to participate in the Plan, to make
      Compensation Deferrals with respect to Compensation earned
      for services performed by such individual in pay periods beginning after the
      filing of his or her deferral election.  A new deferral election will
      be required for each Plan Year such individual remains an Eligible
      Employee.

     

    In
      addition, an Eligible Employee shall be permitted to make a one-time only
      election to make an additional Compensation Deferral in an amount equal to
      a
      specified percentage of the refund to be paid to him from the Qualified Plan
      in
      2008 to reflect correction of excess deferrals under the average deferral
      percentage test as required under the Code.  Such election must be
      made on or before December 31, 2007.

     

    (b)           No
      Changes.  A Participant’s Compensation Deferral election for a
      particular Plan Year may not be revoked, modified or suspended after the start
      of that Plan Year, except to the extent permitted under Code Section 409A and
      the Regulations thereunder.

     

    (c)           Late
      Election.  If an Eligible Employee does not make a timely election
      for a Plan Year, no Compensation Deferrals will be made under the Plan on behalf
      of that Eligible Employee for that Plan Year.

     

    (d)           Amount.  An
      Eligible Employee may elect to defer for each payroll period in a Plan Year
      an
      amount equal to a specified percentage (not to exceed 80%) of the Compensation
      payable to the Eligible Employee.

     

    (e)           Crediting.  The
      Compensation Deferrals made by the Participant will be credited to his or her
      applicable Plan Year Subaccount as soon as practical after the date that the
      Compensation to which those Compensation Deferrals relate would otherwise have
      been paid.

     

    3.02           Performance
      Bonus Deferrals.

     

    (a)           Elections.  An
      Eligible Employee may make a Performance Bonus Deferral with respect to any
      Performance Bonus to be paid in the upcoming Plan Year by filing an appropriate
      deferral election no later than the June 30 immediately preceding that Plan
      Year.  A new Performance Bonus Deferral election will be required with
      respect to each Plan Year such

     

    

    
      
        
          
          

        

        
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    individual
      remains an Eligible Employee.  The Committee may prescribe such rules
      and requirements regarding Performance Bonus Deferral elections.

     

    (b)           No
      Changes.  A Participant’s Performance Bonus Deferral election for
      a particular Plan Year may not be revoked, modified or suspended after the
      deadline for making it, except to the extent permitted under Code Section 409A
      and the Regulations thereunder.

     

    (c)           Late
      Election.  If an Eligible Employee does not make a timely election
      for a Plan Year, no Performance Bonus Deferrals will be made under the Plan
      on
      behalf of that Eligible Employee for that Plan Year.

     

    (d)           Amount.  An
      Eligible Employee may separately elect to make a Performance Bonus Deferral
      with
      respect to any amount of his or her Performance Bonus for a Plan Year in any
      amount or percentage that does not exceed 80% of his or her Performance
      Bonus.

     

    (e)           Crediting.  Performance
      Bonus Deferrals made by the Participant will be credited to his or her
      applicable Plan Year Subaccount as soon as practical after the date that the
      Performance Bonus amount to which those Performance Bonus Deferrals relate
      would
      have otherwise been paid.

     

    3.03           Coordination
      with Qualified Plan.  On or before the end of each Plan
      Year, the Committee shall direct that an amount be transferred from the Eligible
      Employee’s Account to the Qualified Plan equal to the lesser of: (1) the amount
      of his Compensation Deferrals and Performance Bonus Deferrals for that Plan
      Year, (2) the amount elected by the Eligible Employee to be contributed to
      the
      Qualified Plan for that Plan Year, (3) the maximum amount of elective deferrals
      that may be made by the Eligible Employee for that Plan Year after the
      application of the actual deferral percentage test under Section
      401(k)(3)(A)(ii) of the Code plus any contribution that may be made for that
      Plan Year by the Eligible Employee pursuant to Section 414(v) of the Code,
      or
      (4) the maximum amount of elective deferrals that may be made by the Eligible
      Employee for that Plan Year pursuant to Section 402(g) of the Code plus any
      contribution that may be made for that Plan Year by the Eligible Employee
      pursuant to Section 414(v) of the Code.

     

    3.04           Matching
      Contributions.

     

    (a)           Eligibility.  An
      Eligible Employee shall be entitled to a Matching Contribution under this Plan
      only to the extent he or she has satisfied the eligibility requirements for
      an
      employer matching contribution under the Qualified Plan.

     

    (b)           Amount.  The
      amount of the Matching Contribution to which the Eligible Employee is entitled
      for each Plan Year will be equal to three percent (3%) of his or her
      Compensation and Performance Bonuses that he or she elects to defer under this
      Plan (either as a Compensation Deferral or Performance Bonus Deferral) less
      the
      amount of matching contribution to be made under the Qualified Plan with respect
      to his or her elective deferrals under the Qualified Plan for that Plan
      Year.

     

    

    
      
        
          
          

        

        
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    (c)           Crediting.  The
      Matching Contributions to which the Participant is entitled will be credited
      to
      his or her applicable Plan Year Subaccount at such time and in such manner
      as
      determined by the Committee or its designate and as applied uniformly to all
      Participants.

     

     

    ARTICLE
      IV

    EARNINGS

     

    Amounts
      credited to a Participant’s Account under the Plan shall be credited with
      earnings, at periodic intervals determined by the Committee, at a rate equal
      to
      the actual rate of return for such period on the investment fund or funds or
      index or indices or vehicle or vehicles selected by that Participant from a
      range of investment vehicles authorized by the Committee.  The rate of
      return on such investment vehicles shall be tracked solely for the purpose
      of
      determining the phantom investment gain, earnings and losses to be credited
      to
      the Participant’s Account during the deferral period.  Neither the
      Company nor any of its affiliates shall be obligated to make any actual
      investment.  It is intended that, unless otherwise determined by the
      Committee, the applicable investment funds shall be the same as those offered
      under the Qualified Plan.

     

     

    ARTICLE
      V

    VESTING

     

    Each
      Participant will be 100% vested in that portion of his or her Account
      attributable to Compensation Deferrals and Performance Bonus Deferrals made
      under Section 3.01 or 3.02.  Matching Contributions made to a
      Participant’s Account under Section 3.04 of this Plan shall vest in the
      same manner as matching contributions vest under the Qualified Plan, as amended
      from time to time; provided, however, that Matching Contributions
      that would otherwise be nonvested shall immediately vest upon a Change in
      Control.

     

     

    ARTICLE
      VI

    DISTRIBUTIONS

     

    6.01           Distribution
      of Benefits.  Each Participant must, prior to the start of each
      Plan Year, elect the manner in which the Plan Year Subaccount for that Plan
      Year
      will be distributed.  Accordingly, the Participant shall make a
      separate distribution election with respect to each Plan Year Subaccount by
      following the procedures described below and by satisfying such additional
      requirements as the Committee may determine.

     

    (a)           Annual
      Election.  Unless a later date is permitted in the Regulations, at
      the same time the Participant files his or her deferral election for one or
      more
      items of Compensation to be earned in the upcoming Plan Year, the Participant
      must also elect, in writing, which of the distribution options described below
      will govern the payment of the vested balance of the Plan Year Subaccount to
      which those deferred items of Compensation are credited.

     

    

    
      
        
          
          

        

        
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    (b)           Timing
      of Payment.  A Participant may elect to have the vested portion of
      his or her Plan Year Subaccount distributed no later than the 15th day of
      the third
      month following one of the following distribution events (or the earlier or
      later of any such events):

     

    
      	
               

            	
              (i)

            	
              Separation
                from Service;

            

    

     

    
      	
               

            	
               (ii)

            	
              a
                specified date; or

            

    

     

    
      	
               

            	
              (iii)

            	
              Change
                in Control of the Company.

            

    

     

    (c)           Form
      of Payment.  A Participant may elect to have the vested portion of
      his or her Plan Year Subaccount distributed no later than the 15th day of
      the third
      month following his or her elected distribution event in one of the following
      distribution forms:

     

    
      	
               

            	
              (i)

            	
              a
                single lump sum payment; or

            

    

     

    
      	
               

            	
               (ii)

            	
              equal
                annual installments over a period not to exceed  10
                years.

            

    

     

    (d)           Subsequent
      Election.  A Participant may change the timing and form of payment
      with respect to his or her Plan Year Subaccount in accordance with such policies
      and procedures as may be adopted by the Committee.  :Any change in the
      form or timing of distributions hereunder must comply with the following
      requirements.  The changes:

     

    
      	
               

            	
              (i)

            	
              may
                not accelerate the time or schedule of any distribution, except as
                provided in Section 409A of the Code and the regulations
                thereunder;

            

    

     

    
      	
               

            	
              (ii)

            	
              must,
                for benefits distributable as of a specified date or Separation from
                Service, delay the commencement of distributions for a minimum of
                five (5)
                years from the date the first distribution was originally scheduled
                to be
                made;

            

    

     

    
      	
               

            	
              (iii)

            	
              must
                take effect not less than twelve (12) months after the election is
                made;
                and

            

    

     

    
      	
               

            	
              (iv)

            	
              in
                the case of a distribution to be made as of a specified date, must
                be made
                at least twelve (12) months before the first scheduled
                payment.

            

    

     

    For
      purposes of this subsection (d), in accordance with the Regulations, a
      series of annual installments shall be treated as a single payment.

     

    (e)           Default.    If,
      upon a Participant’s Separation from Service, the Committee does not have a
      proper distribution election on file for that Participant with respect to one
      or
      more of his or her Plan Year Subaccounts, the vested portion of each of those
      Plan Year Subaccounts will be distributed to the Participant in one lump sum
      as
      soon as administratively feasible following the Participant’s Separation from
      Service.

     

    

    
      
        
          
          

        

        
          9

          
            

          

        

        
          
          

        

      

    

     

                    
      6.02           Death.  If
      a Participant dies with a vested balance credited to one or more of his or
      her
      Plan Year Subaccounts, whether or not the Participant was receiving payouts
      from
      those subaccounts at the time of his or her death, then the Participant’s
      Beneficiary will receive the vested balance of each of those Plan Year
      Subaccounts in accordance with the timing and form of distribution provisions
      set forth in Section 6.01.

     

    6.03           Hardship
      Withdrawal.  If
      a Participant (a) incurs a severe financial hardship as a result of (i) a sudden
      and unexpected illness or accident involving the Participant or his or her
      spouse or any dependent (as determined pursuant to Section 152(a) of the
      Code), (ii) a casualty loss involving the Participant’s property or (iii) other
      similar extraordinary and unforeseeable event beyond the Participant’s control
      and (b) does not have any other resources available, whether through
      reimbursement or compensation (by insurance or otherwise) or liquidation of
      existing assets (to the extent such liquidation would not itself result in
      financial hardship), to satisfy such financial emergency, then the Participant
      may apply to the Committee for an immediate distribution from the vested portion
      of his or her Account in an amount necessary to satisfy such financial hardship
      and the tax liability attributable to such distribution.  The
      Committee shall have complete discretion to accept or reject the request and
      shall in no event authorize a distribution in an amount in excess of that
      reasonably required to meet such financial hardship and the tax liability
      attributable to that distribution.

     

    Any
      hardship withdrawal shall be made only to the extent permitted in accordance
      with Section 1.409A-3(g)(3) of the Regulations.  As a condition
      of the Committee’s acceptance of a request for a hardship withdrawal under this
      Section 6.03, the Participant’s election to make Performance Bonus
      Deferrals and/or Compensation Deferrals shall be terminated for the remainder
      of
      that Plan Year.  Thereafter, such Participant shall be suspended from
      making Performance Bonus Deferrals under Section 3.02 or Compensation
      Deferrals under Section 3.01 until the second Plan Year following the Plan
      Year in which the hardship withdrawal was made.

     

    6.04           Valuation.  The
      amount to be distributed from any Plan Year Subaccount pursuant to this
      Article VI shall be determined on the basis of the vested balance credited
      to that subaccount as of the most recent practicable date (as determined by
      the
      Committee or its designate) preceding the date of the actual
      distribution.

     

    6.05           Withholding.  Either
      the Company or an Affiliate will deduct from Plan payouts, or from other
      compensation payable to a Participant or Beneficiary, amounts required by law
      to
      be withheld for taxes with respect to benefits under this Plan.  The
      Company and each affiliate reserves the right to reduce any deferral or
      contribution that would otherwise be made under this Plan on behalf of a
      Participant to satisfy the Participant’s tax withholding
      liabilities.

     

    6.06           Deferred
      Commencement.  Notwithstanding
      any provision of this Plan to the contrary, if a Participant is considered
      a
      Specified Employee at Separation from Service, benefit distributions that are
      made upon Separation from Service may not commence earlier than six (6) months
      after the date of such Separation from Service.  In the event this
      Section 6.06 is applicable to a Participant, any distribution which would
      otherwise be paid to the Participant within the first six months following
      the
      Separation from Service shall be accumulated and paid to
      the
      Participant in a lump sum on the first day of the seventh month following the
      Separation from Service.  All subsequent distributions shall be paid
      in the manner specified

     

    

    
      
        
          
          

        

        
          10

          
            

          

        

        
          
          

        

      

    

     

    6.07           Payment
      of Small Accounts.  Notwithstanding
      anything in this Plan to the contrary and only to the extent permitted under
      Section 409A of the Code, if a Participant becomes entitled to a
      distribution of his Account balance by reason of his or her Separation from
      Service and the value of the Participant’s Account balance is equal to or less
      than the dollar limit set forth in Section 402(g) of the Code, then the
      Committee may, in its sole discretion, pay to the Participant his or her entire
      Account balance in a single lump sum cash payment.  Any such payment
      will be made as soon as administratively feasible following Separation from
      Service and before the 15th day of
      the third
      month following the Participant’s Separation from Service.

     

    6.08           Distributions
      Upon Income Inclusion Under Section 409A of The Code.  Upon
      the inclusion of any amount into a Participant’s income as a result of the
      failure of this non-qualified deferred compensation plan to comply with the
      requirements of Section 409A of the Code, to the extent such tax liability
      can
      be covered by the amount of the Participant’s Account, a distribution shall be
      made as soon as is administratively practicable following the discovery of
      the
      plan failure.

     

     

    ARTICLE
      VII

    MISCELLANEOUS

     

    7.01           Limitation
      of Rights.  Participation
      in this Plan does not give any individual the right to be retained in the
      service of the Company or any Affiliate or other related entity.

     

    7.02           Additional
      Restrictions.  If
      the Committee determines that additional restrictions or limitations must be
      placed on the investment vehicles utilized for measuring the return on the
      amounts credited to Participant Accounts, the right of Participants to make
      investment elections with respect to their Accounts, their ability to make
      or
      change distribution elections, their ability to defer distributions or to change
      the commencement date for the distribution of their benefits or the method
      of
      such distribution or their rights or status as creditors under the Plan in
      order
      to avoid current income taxation of amounts deferred under the Plan, the
      Committee may, in its sole discretion, amend the Plan to impose such
      restrictions or limitations, cease deferrals under the Plan and/or defer
      distribution dates under the Plan.

     

    7.03           Claims
      Procedure.  No
      application is required for the commencement of benefits under the
      Plan.  However, if a Participant or Beneficiary (“Claimant”) believes
      that he or she is entitled to a greater benefit under the Plan, the Claimant
      may
      submit a signed, written application to the Committee (or the Committee’s
      authorized delegate hereunder) within ninety (90) days after having been denied
      such a greater benefit.  The Claimant will generally be notified of
      the approval or denial of this application within ninety (90) days after having
      been denied such a greater benefit.  The Claimant will generally be
      notified of the approval or denial of this application within ninety (90) days
      after the date that the Committee (or the Committee’s authorized delegate
      hereunder) receives the application.  If the claim is denied, the
      notification will state specific reasons for the denial and the Claimant will
      have sixty (60) days to file a signed, written request for a review of the
      denial with the Committee.  This request will include the
      reasons for requesting a review, facts supporting the request and any other
      relevant comments.  The Committee (or the Committee’s authorized
      delegate hereunder) will generally

     

    

    
      
        
          
          

        

        
          11

          
            

          

        

        
          
          

        

      

    

    

    make
      a
      final, written determination of the Claimant’s eligibility for benefits within
      sixty (60) days after receipt of the request for review.

     

    7.04           Indemnification.  The
      Company will indemnify and hold harmless the Directors, the members of the
      Committee and any delegate of the Committee, and employees of the Company and
      its Affiliates who may be deemed fiduciaries of the Plan, from and against
      any
      and all liabilities, claims, costs and expenses, including attorneys’ fees,
      arising out of an alleged breach in the performance of their fiduciary duties
      under the Plan, other than such liabilities, claims, costs and expenses as
      may
      result from the gross negligence or willful misconduct of such
      persons.  The Company shall have the right, but not the obligation, to
      conduct the defense of such persons in any proceeding to which this
      Section 7.04 applies.

     

    7.05           Assignment.  To
      the fullest extent permitted by law, benefits under the Plan and rights thereto
      are not subject in any manner to anticipation, alienation, sale, transfer,
      assignment, pledge, encumbrance, attachment, or garnishment by creditors of
      a
      Participant or a Beneficiary.

     

    7.06           Inability
      to Locate Recipient.  If
      a benefit under the Plan remains unpaid for two (2) years from the date it
      becomes payable, solely by reason of the inability of the Committee to locate
      the Participant or Beneficiary entitled to the payment, the benefit shall be
      treated as forfeited.  Any amount forfeited in this manner shall be
      restored without interest upon presentation of an authenticated written claim
      by
      the person entitled to the benefit.

     

    7.07           Amendment
      and Termination.  The
      Committee may, at any time, amend or terminate the Plan.  Any
      amendment must be made in writing; no oral amendment will be
      effective.  Except to the limited extent authorized pursuant to
      Section 7.02, no amendment may, without the consent of an affected
      Participant (or, if the Participant is deceased, the Participant’s Beneficiary),
      adversely affect the Participant’s or the Beneficiary’s rights and obligations
      under the Plan with respect to amounts already credited to a Participant’s
      Account, and, except as otherwise provided below, all amounts deferred under
      the
      Plan prior to the date of any such amendment or termination of the Plan shall
      continue to become due and payable in accordance with the distribution
      provisions of Article VI as in effect immediately prior to  such
      amendment or termination.

     

    Notwithstanding
      anything to the contrary in this Section 7.07, each Participant’s benefit shall
      be distributed immediately in a lump sum if this Plan terminates in the
      following circumstances:

     

    (a)           Within
      thirty (30) days before or twelve (12) months after a Change in Control of
      the
      Company; provided, however, that termination of this Plan was
      effected through an irrevocable action taken by the Company; provided,
further, that all distributions are made no later than twelve (12)
      months
      following such termination of the Plan and that all the Company's arrangements
      which are substantially similar to the Plan are terminated so all Participants
      and any participants in the similar arrangements are required to receive all
      amounts of compensation deferred under the terminated arrangements within twelve
      (12) months of the termination of the arrangements;

     

    

    
      
        
          
          

        

        
          12

          
            

          

        

        
          
          

        

      

    

    

    (b)           Upon
      the Company’s dissolution or with the approval of a bankruptcy court provided
      that the amounts deferred under the Plan are included in each Participant's
      gross income in the latest of (i) the calendar year in which the Plan
      terminates; (ii) the calendar year in which the amount is no longer subject
      to a
      substantial risk of forfeiture; or (iii) the first calendar year in which the
      distribution is administratively practical; or

     

    (c)           Upon
      the Company’s termination of this and all other account balance plans (as
      referenced in Section 409A of the Code or the regulations thereunder);
provided, however that all distributions are made no earlier than
      twelve (12) months and no later than twenty-four (24) months following such
      termination; provided, further, that the termination of this Plan
      does not occur proximate to the downturn in the financial health of the Company;
      and provided, further, that the Company does not adopt any new
      account balance plans for a minimum of three (3) years following the date of
      such termination.

     

    7.08           Applicable
      Law.  To
      the extent not governed by Federal law, the laws of the State of Indiana shall
      govern the Plan.  If any provision of the Plan is held to be invalid
      or unenforceable, the remaining provisions of the Plan will continue to be
      fully
      effective.

     

    7.09           No
      Funding.  The
      obligation to pay the vested balance of each Participant’s Account shall at all
      times be an unfunded and unsecured obligation of the Company, and. Participants
      and Beneficiaries shall have the status of general unsecured creditors of the
      Company.  Except to the extent provided below in Section 7.10,
      Plan benefits will be paid from the general assets of the Company, and nothing
      in the Plan will be construed to give any Participant or any other person rights
      to any specific assets of the Company or its Affiliates. In all events, it
      is
      the intention of the Company and its Affiliates and all Participants that the
      Plan be treated as unfunded for tax purposes and for purposes of Title I of
      ERISA.

     

    7.10           Trust.  The
      benefits under the Plan will be paid from the assets of a grantor trust (the
      “Trust”) established by the Company to assist it in meeting its obligations
      hereunder and, to the extent that such assets are not sufficient, by the Company
      out of its general assets. The Trust shall conform to the terms of the Internal
      Revenue Service Model Trust in Internal Revenue Service Procedure 92-64
      (or any successor procedure).

     

    IN
      WITNESS WHEREOF, The Finish Line, Inc. has caused this Plan to be
      executed by its duly authorized representative as of the date indicated
      above.

     

    

     

    
      	 	
              THE
                FINISH LINE, INC.

               

            
	 	
              By:

            	
              /s/
                Alan H. Cohen

            
	 	
              Name:

            	
              Alan
                H. Cohen

            
	 	
              Title:

            	
              Chairman
                of the Board and Chief Executive
                Officer

            

    

    

     

     

     

     

     

     

     

    13CONFIDENTIAL TREATMENT REQUESTED
                                         WITH RESPECT TO CERTAIN PORTIONS HEREOF
                                                              DENOTED WITH "***"

                                                                    EXHIBIT 10.1
                              EMPLOYMENT AGREEMENT

         This Employment Agreement (the "Agreement"), dated as of November 28,
2007 ("Agreement Date"), by and between Hudson Securities, Inc., a Delaware
corporation ("Company"), having an address of 111 Town Square Place, 15th Floor,
Jersey City, New Jersey 07310, and Vincent Pelosi (the "Employee"), residing at
255 Flagg Place, Staten Island, NY 10304.

                                  WITNESSESTH:

         WHEREAS, the Company is a registered broker-dealer and member of the
Financial Industry Regulatory Authority ("FINRA") engaged in the business of
market making, trading, institutional agency trading, investment banking and
research; and

         WHEREAS, the Company wishes to employ the Employee and the Employee is
willing to be so employed and to render services to the Company, all upon the
terms and subject to the conditions contained herein;

         NOW THEREFORE, in consideration of the mutual covenants and agreements
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which is acknowledged, the parties agree as follows:

         1. EMPLOYMENT. Subject to and upon the terms and conditions contained
in this Agreement, the Company hereby agrees to employ Employee and Employee
agrees to enter the employ of the Company, for the period set forth in Paragraph
2 hereof, to render the services to the Company, its affiliates and/or
subsidiaries described in Paragraph 3 hereof.

         2. TERM. Employee's employment by the Company is at the will of either
party. Employee's term of employment (the "Agreement Term") under this Agreement
shall commence on a date no later than November 20, 2007 (such date, the
"Commencement Date") and shall continue until terminated by either party for any
reason but subject to the terms and conditions set forth herein, but in no event
will Employee render any services under this Agreement to the Company in any
form whatsoever prior to the Commencement Date.

3. DUTIES AND RESPONSIBILITIES OF PARTIES.

                  (a) Employee shall be employed as the Company's Senior Vice
President ("SVP") of Institutional Sales, as co-Head of the Institutional Sales
Group with an individual who Employee has the sole approval of as co-head. It is
agreed that Employee shall perform his services in the Company's Jersey City,
New Jersey offices, as well as in the offices of the Company's affiliates and/or
subsidiaries in New Jersey and he will be responsible for institutional account
coverage and, at the request of the Company, for managing institutional sales
and sales trading, which duties, responsibilities and work location may only be
changed by mutual written agreement of the parties. All existing and future
institutional sales traders or other members of the Institutional Sales Group
(each, a "Subordinate", and collectively, the "Subordinates") employed by the
Company will report to the co-Heads of the Institutional Sales Group, unless
existing employees previously specified by written commitments of the firm are
prohibited from doing so.

                  (b) Employee shall report to the Chief Executive Officer of
the Company or any other more senior executive officers appointed by the Board
of Directors of the Company and agrees to abide by all bylaws and applicable
policies of the Company promulgated from time to time by the Board of Directors
of the Company.

                  (c) The Company represents that it will continue to update its
technological resources to maintain its current level of technology.

                  (d) The Company represents that it has, and will maintain, the
ability to trade in the overseas markets currently available to the firm.

                                      -1-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED
                                         WITH RESPECT TO CERTAIN PORTIONS HEREOF
                                                              DENOTED WITH "***"

                  (e) The Company agrees to implement the employment of a CSA
agreement and soft dollar person with knowledge and expertise of regulatory and
legal requirements applicable to the Institutional Sales Group business as
necessitated by the business needs of the Institutional Sales Group as
determined by the Company.

         4. EXCLUSIVE SERVICES AND BEST EFFORTS. Employee shall devote all of
his working time, attention, best efforts and ability during regular business
hours exclusively to the service of the Company, its affiliates and subsidiaries
during the term of this Agreement. Nothing shall preclude Employee from (i)
engaging in charitable activities and community affairs or (ii) managing his
personal investments and affairs; provided, however, that such activities do not
materially interfere with the proper performance of his duties and
responsibilities as an employee of the Company.

         5.1. COMPENSATION AND EXPENSES.

(a) Subject to the limitations set forth in this Agreement, Company shall pay
out to the Employee a commission that is *** of the "Net Commissions" generated
by Employee (the "Employee's Commission").

(b) For purposes of this Agreement, the term "Net Commissions" shall mean gross
commissions that are actually received by the Company and derived directly from
the Employee's total purchase and sale of securities from transactions on
accounts that are covered by the Employee for the firm, less any and all
expenses related to the fees incurred in connection with the purchase or sale
transactions effectuated by Employee, and any associated trading system or other
costs including,

                           (i) all actual, third-party transaction costs
         including execution, brokerage fees, give-up, clearing and/or flip
         charges, and processing ticket charges;

                           (ii) all applicable, direct internal transaction
         costs including execution, brokerage fees, give-up, clearing and/or
         flip charges, and processing ticket charges;

                           (iii) all commission rebates relating to equity
         business payable to introducing brokers or account executives not
         employed by the Company, if any, which are approved by the Company;

                           (iv) all bad debts of any Employee customer,
         including uncollectible commissions;

                            (v) all errors relating to Employee's customers'
         business;

                           (vi) reasonable travel, entertainment and meal
         expenses consistent with the policy determined by Company for such
         matters, so long as approved by Company management prior to
         reimbursement;

                           (vii) expenses incurred directly by Employee related
         to recruitment, promotion or marketing by or of Employee, in each case
         as approved by Company management;

                  (c) Notwithstanding anything to the contrary contained herein,
and for purposes of clarity, in no event shall Company be required to pay
Employee's Commission for those sales whose fees are not actually received by
Company.

         (d) Upon his entering into this Agreement, the Company shall grant to
Employee *** shares of "restricted stock". For so long as Employee shall remain
in the employ of Company, the "restricted stock" shall vest equally on an annual
basis over a four (4) year period (the "Vesting Period") from the Commencement
Date, and the initial *** shares shall begin to vest on the first anniversary of
the Commencement Date. All vested stock is not forfeited by the Employee in the
event his employment with the Company ends for any reason. In the event of a
Change of Control, all previously unvested restricted stock granted by this
Section 5.1(c) shall automatically vest with Employee, regardless of the date.

                                      -2-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED
                                         WITH RESPECT TO CERTAIN PORTIONS HEREOF
                                                              DENOTED WITH "***"

For the purposes herein, "Change of Control" shall mean any of the following:
(i) direct or indirect acquisition by any person (as the term "person" is used
in Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as
amended) of more than fifty percent (51%) of the voting capital stock of the
Company, in a single or series of related transactions; (ii) the occurrence of a
sale of all or substantially all of the assets of the Company to an entity which
is not a direct or indirect subsidiary of the Company; (iii) the occurrence of a
reorganization, merger, consolidation or similar transaction involving the
Company, unless (A) the shareholders of the Company immediately prior to the
consummation of any such transaction will initially own securities representing
a majority of the voting power of the surviving or resulting corporation, and
(B) the directors of the Company immediately prior to the consummation of such
transaction will initially represent a majority of the directors of the
surviving or resulting corporation; or (iv) any other event which is at any time
irrevocably designated as "Change in Control" for purposes of this Agreement by
resolution adopted by a majority of the directors of the Employer.

                  (e) The Company will grant options for the purchase of common
stock of the Company at an exercise price of *** per share to the Employee in
the following amounts in the event Revenue earned by the Institutional Sales
Group reaches in the aggregate certain milestones by December 31st, 2008 (the
"Milestone Date"). The options shall be in the same form and under the same
terms as described under the Company's Stock Option Plan. For the purpose of
this Agreement, "Revenue" is defined as the total commissions earned by the
Company on the purchase and sale of securities from transactions on accounts
that are covered by the Institutional Sales Group for the firm. In addition, all
stock grants under this section vest immediately upon the Milestone Date, and
are not forfeited by the Employee in the event his employment with the Company
ends for any reason after the Milestone Date.

                           REVENUE MILESTONE                  OPTION GRANTS
                           -----------------                  -------------
                           ***                                     ***
                           ***                                     ***
                           ***                                     ***

                  (f) The Company agrees to pay Employee a draw against the
Employee's Commissions during the first two months following the Commencement
Date in the amount of *** per month. Employee agrees to pay back any deficiency
in the draw beginning in the third month of his employment.

                  (g) Employee agrees that the Company may, at any time, demand
and receive payment from the Employee for or deduct from any Employee's
Commission payable to Employee under this Agreement, any taxes, withholding
payments, license fees, registration fees, ticket charges, bonding fees, or such
other expenses, fees or costs payable or chargeable to the Employee which have
been paid, accrued or otherwise incurred by the Company on behalf of the
Employee in connection with the Employee's duties under this Agreement.

                  (h). With respect to Subordinates, Subordinates shall be
compensated by the Institutional Sales Group in an amount ***

5.2      FORGIVABLE LOAN.

                  (a) The Employee hereby acknowledges the future receipt of ***
(the "Loan") to be loaned to Employee by the Company, which will be distributed
in the following manner: *** shall be paid to the attorneys for the Employee
upon the Company's receipt of Employee's acknowledgement of the Company's offer
of employment. Such funds shall be placed in an attorney trust account and not
released until the Employee reports to work on the Commencement Date and
executes this Agreement, as verified in writing by the Company. If the Employee
does not report to work by the Commencement Date, such funds shall be returned
to the Company. If and only if Employee reports to work by the Commencement Date
and executes this Agreement, the Company shall wire directly to the Employee on
the Commencement Date an ***, and the remaining *** no later than the one month
anniversary of the Commencement Date. The Loan shall accrue interest at the
annual rate of *** from the Commencement Date, up to and including the two year
anniversary of the Commencement Date (the "Due Date"), and if payment of the

                                      -3-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED
                                         WITH RESPECT TO CERTAIN PORTIONS HEREOF
                                                              DENOTED WITH "***"

Loan is accelerated during such period, the total amount due under the Loan
shall be payable on a demand basis. The Loan shall be evidenced by a Promissory
Note executed and delivered on or after the date hereof, the form of which is
annexed hereto as Exhibit "A", and the terms of which incorporated herein by
this reference.

         Employee agrees and acknowledges that the Company may take out life
insurance and disability policies upon the Employee, with the Company as sole
beneficiary, in the amount of the Loan and shall keep such policies in force
until the Loan is repaid in full.

(b) The Loan will be forgiven as follows:

                  i. In the event the Employee is employed as of the first
                  anniversary of the Commencement Date (the "First
                  Anniversary"), the Company will forgive *** of the Loan and
                  the accrued interest on the forgiven debt. Once forgiven, the
                  Company cannot seek repayment of the forgiven debt that is the
                  subject of this paragraph.

                  ii In the event the Employee is employed as of the second
                  anniversary of the Commencement Date (the "Second
                  Anniversary"), the Company will forgive the full balance of
                  the Loan, including all accrued interest and will issue to the
                  Employee a written release confirming the cancellation and
                  forgiveness of the debt and the related document attached as
                  Exhibit A.

                  iii In the event that the Company terminates the Employee's
                  employment without "Good Cause" (as defined herein) prior to
                  the Due Date, the Company agrees to cancel and forgive the
                  Loan and any accrued interest and as such the Employee is not
                  obligated to repay the Loan and any accrued interest, and will
                  issue to the Employee a written release confirming the
                  cancellation and forgiveness of the debt and the related
                  document attached as Exhibit A. The termination of Employee's
                  employment will be deemed to have been for "Good Cause" as
                  defined below in paragraph 13.

                  iv. In the event that the Employee terminates the Agreement
                  with "Good Reason" (as defined herein) prior to the Due Date,
                  the Company agrees to cancel and forgive the Loan and any
                  accrued interest and as such the Employee is not obligated to
                  repay the Loan and any accrued interest, and will issue to the
                  Employee a written release confirming the cancellation and
                  forgiveness of the debt and the related document attached as
                  Exhibit A. "Good Reason" is defined as any of the following
                  events which are not cured by Company within thirty (30) days
                  after receipt of written notice of termination from Employee
                  based on: (1) a significant change in the nature or scope of
                  Employee's authorities, powers, functions or duties, or a
                  reduction in compensation; (2) a determination by a court that
                  there has occurred a material breach by the Company of any
                  provision of this Agreement which is not remedied within 30
                  days after receipt by the Company of written notice from
                  Employee; or (3) a Change in Control as defined in Section
                  5.1(d).

                  v. Upon Employee's termination of this Agreement other than
                  for Good Reason prior to the First Anniversary Date of the
                  Commencement Date, the Loan shall become immediately due and
                  payable. Upon Employee's termination of this Agreement other
                  than for Good Reason after the First Anniversary but prior to
                  the Second Anniversary, the remaining balance of the Loan not
                  forgiven shall become immediately due and payable, in each
                  case without further action from the Company on the date
                  employment ceases. In the event that the Company is forced to
                  expend legal or other fees in its effort to the collect the
                  amount due and payable under the Loan and this paragraph
                  5.2(b), Employee agrees that such costs shall be borne and
                  payable exclusively by Employee, and that such costs shall
                  begin to accrue interest at the rate of 8% from the date
                  Employee ceases to be in the employ of Company.

                                      -4-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED
                                         WITH RESPECT TO CERTAIN PORTIONS HEREOF
                                                              DENOTED WITH "***"

         6. BUSINESS EXPENSES. Subject to 5.1(b), the Employee shall be
reimbursed by the Company for those business expenses incurred by him, which are
reasonable and necessary for the Employee to perform his duties under this
Agreement, upon submission of such accounts and records as may reasonably be
required by the policies established from time to time by the Company.

         7. CONFIDENTIALITY. Employee shall keep confidential, except as the
Company may otherwise consent in writing, and not disclose or make any use of
except for the benefit of the Company and in no way harmful to the Company, at
any time either during the term of this Agreement or thereafter, any trade
secrets, knowledge, data, intellectual property or other information of the
Company relating to the Company and its businesses, including, without
limitation, information regarding cost of new accounts, customer lists, customer
activity rates and other customer information, technology (hardware and
software), discoveries, processes, algorithms, mask works, strategies, products,
processes, know how, technical data, designs, formulas, test data, business
plans, marketing plans and advertising results or other subject matter
pertaining to any business of the Company or any of its clients, customers,
consultants, licensees or affiliates which Employee may produce, obtain or
otherwise learn of during the course of Employee's performance of services
(collectively "CONFIDENTIAL Information"). Employee shall not deliver,
reproduce, or in any way allow any such Confidential Information to be delivered
to or used by any third parties without the specific direction or consent of a
duly authorized representative of the Company, except in connection with the
discharge of his duties thereunder. The terms of this paragraph shall survive
termination of this Agreement. Notwithstanding anything to the contrary herein,
Employee shall not have any obligation to keep confidential any information
that: (a) is required by law or regulation to be disclosed by Employee, or (b)
is required to be disclosed by Employee to any government agency or person to
whom disclosure is required by judicial or administrative process or (c) any
client information of clients that Employee has had contact while in the Employ
of the Company, or (d) any client information or clients that Employee had
contact with prior to becoming an Employee of the Company.

         7.1 RESTRICTION DURING EMPLOYMENT. Employee agrees that at no time
during its employment with the Company will Employee (i) in any way induce or
attempt to induce any employee or registered representative of the Company (or
of any affiliate of the Company) or any person, firm or corporation having any
contract with the Company (or any affiliate of the Company), either to leave
such employment or association with the Company or to breach or terminate its
contract with the Company (or with any affiliate of the Company); (ii) in any
way induce or attempt to induce any employee or registered representative of the
Company (or any affiliate of the Company) or any person, firm or corporation
having a contract with the Company (or any affiliate of the Company) to become
employed by, associated with or enter into a contract or agreement with another
stock brokerage firm or other entity; and (iii) in any way induce or attempt to
induce any account, customer and client of the Company from terminating their
relationship with the Company or becoming an account, customer and client of
another stock brokerage or trading firm or similar entity.

         7.2      RESTRICTIONS AFTER EMPLOYMENT.

                 (a) Employee agrees that for a period of one (1) year after the
termination of his employment with the Company, the Employee will not induce or
attempt to induce any employee or registered representative of the Company or
any other person, firm or corporation having any contract or association with
the Company either from leaving such employment or association with the Company
or to breach or terminate his or its contract with the Company or in any way
induce or attempt to induce any employee or registered representative of the
Company (or any affiliate of the Company), except the Co-Head of the
Institutional Sales Group, or any person, firm or corporation having a contract
with the Company (or any affiliate of the Company) to become employed by,
associated with or enter into a contract or agreement with another stock
brokerage or trading firm or other similar entity

                  (b) Employee agrees that for a period of thirty (30) days
after the termination of his employment with the Company for whatever reason,
the Employee will not engage, as an owner, partner, shareholder, officer,
director, employee, consultant, advisor, agent or representative, in any
business which competes with the Company or any of its affiliates in trading or
executing in equity markets, including but not limited to equity-related
products.

                                      -5-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED
                                         WITH RESPECT TO CERTAIN PORTIONS HEREOF
                                                              DENOTED WITH "***"

         8. RETURN OF CONFIDENTIAL MATERIAL. Upon the completion or other
termination of Employee's services for the Company, Employee shall promptly
surrender and deliver to the Company all records, materials, equipment,
drawings, documents, notes and books and data of any nature pertaining to any
invention, trade secret or Confidential Information of the Company or to
Employee's services, and Employee will not take with him any description
containing or pertaining to any Confidential Information, knowledge or data of
the Company which Employee may produce or obtain during the course of his
services. The terms of this paragraph shall survive termination of this
Agreement.

         9. OTHER OBLIGATIONS; CERTAIN REPRESENTATIONS.

                  (a) Employee acknowledges that the Company from time to time
may have agreements with other persons which impose obligations or restrictions
on the Company made during the course of work there under or regarding the
confidential nature of such work. Employee will be bound by all such obligations
and restrictions and will take all action necessary to discharge the obligations
of the Company there under.

                  (b) All of Employee's obligations under this Agreement shall
be subject to any applicable agreements with, and policies issued by the Company
to which Employee is subject, that are generally applicable to the five highest
paid executives of the Company.

                  (c) Employee represents that he has the legal capacity to
enter into this Agreement, and as of the Commencement Date he is under no
employment contract, non-competition agreement, or any other obligation that
would violate or be in conflict with the terms and conditions of this Agreement
or encumber his performance of duties assigned to him by the Company other than
potential conflicts arising from Employee's previous relationship with eTrade
Financial, Inc., or any successor, assignee, or purchaser of any rights of
eTrade Financial, Inc. (the "Former Employer"). Employee further represents and
warrants that he has not signed or committed to any employment or consultant
duties or other obligations that would divert his full attention or conflict
with from the duties assigned to him by the Company.

                  (d) Employee holds all licenses required by FINRA, all
applicable self regulatory organizations, and all federal and state securities
and other laws necessary to perform services to the Company as contemplated by
this Agreement. All such licenses are in full force and effect, and Employee
covenants to take such action as is necessary to maintain all such licenses in
full force and effect during the term of this Agreement.

                  (e) If during the first two-years of this Agreement while the
Loan is still outstanding the Employee is enjoined from working for the Company
by a court of law, the Employee agrees to: (i) return to work to the Company
whenever the restraints lapse or are removed or (ii) at the Company's sole
discretion, continue to remain in the employ of the Company performing services
not prevented from being provided by the Employee under the restraints.

                  (f) If the Employee is enjoined from working for the Company
by a court of law and the Employee decides, in his sole discretion, not to
return to work for the Company after the restraints lapse or are removed, in
such event the Company may demand the Loan to be repaid by the Employee and the
Employee agrees to repay the Loan, interest free, as follows: the Employee will
be entitled to keep a prorated portion of the Loan for the period of time the
Employee worked during the two-year period accrued through the latest month-end
prior to the Employee's last day of work and pay back the balance. For example,
if the Employee last worked 45 days into the two-year period, the Employee would
be entitled to keep two-months/24-months multiplied by *** of the Loan, or ***,
and repay the balance of ***. For the avoidance of doubt, any time during which
the Employee was restrained from working for the Company in the role of either
SVP of Institutional Sales, Co-Head of the Institutional Sales Group, or in any
role generally associated with such positions, and the Company elects not to

                                      -6-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED
                                         WITH RESPECT TO CERTAIN PORTIONS HEREOF
                                                              DENOTED WITH "***"

have the Employee perform any other services for the Company, such time shall
not be considered time worked for the previous equation herein. If the Employee
refuses to tender said Loan repayment within 60 days of the demand from Company,
Employee agrees to reimburse Company for any reasonable costs of collection of
such debt, including reasonable attorneys' fees and to pay interest on the debt
at an annual rate of 5% calculated from the date demand is made by the Company.
Notwithstanding the foregoing, if the Employee reports to work after the
restraints lapse and the Company refuses to continue Employee's employment or
re-employment, the Company cannot demand repayment of the Loan and the Employee
is not obligated in any manner to pay back the Loan, and the Employee will also
immediately vest in all "restricted stock" under Section 5.1(d).

                  (g) ADJUSTMENT FOR INJUNCTION OR OTHER RESTRAINT.

          If the Employee is enjoined or otherwise restrained from performing
his duties as SVP of Institutional Sales and/or Co-Head of Institutional Sales
for a certain time period ("Time of Restraint"), the Company may elect during
such Time of Restraint, in its sole option, to either (i) request that Employee
perform other duties for the Company, or (ii) perform no duties for the Company
until such restraints lapse. Only in the event that the Company elects to have
Employee perform no duties for the Company during the Time of Restraint, each of
the First Anniversary, Second Anniversary, Due Date and Milestone Dates
(collectively, the "Defined Dates") as defined in this Agreement, as well as any
other dates based upon any of the Defined Dates, shall be extended by an amount
of time equal to the Time of Restraint.

         10. TRADE SECRETS OF OTHERS. Employee will not enter into any
agreement, either written or oral, which is in conflict with this Agreement.

         11. EMPLOYEE BENEFITS. During the Agreement Term, the Company agrees to
include Employee in its group medical and hospital plan. Employee understands
and acknowledges that Employee will be responsible for monthly payments for such
insurance at the rate commensurate with other employees of Company. Employee
hereby authorizes the Company to deduct the fees accrued for the insurance
provided to Employee under this paragraph on a monthly basis from the Employee's
share of net commissions prior to Company's distribution of the same. Company
reserves the right to (i) cancel Employee's insurance in the event Employee's
share of net commissions is insufficient to cover the monthly insurance expense
hereunder, or (ii) require Employee to make such monthly payments in lieu of
Company's deduction of the same from Employee's share of net commissions. The
Company may withhold from any benefits payable to the Employee all federal,
state, local and other taxes and amounts as shall be permitted or required
pursuant to law, rule or regulation.

         12. DEATH AND DISABILITY.

                  (a) The Agreement Term shall terminate on the date of
Employee's death, in which event the Employee's Commission and reimbursable
expenses and benefits, if any, owing to Employee through the date of Employee's
death shall be paid to his estate. Employee's estate will not be entitled to any
other compensation upon termination of this Agreement pursuant to this Paragraph
12(a). For purposes of clarity, and notwithstanding anything contrary herein,
should the Employee's death occur prior to the expiring of the Vesting Period
set forth in paragraph 5.1 (d) herein the Company shall have no obligation to
continue to issue Employee's estate stock, subsequent to the date of Employee's
death. Furthermore, should Employee's death occur prior to the Due Dates as set
forth in paragraph 5.2 herein, the Company shall forgive and cancel the Loan and
any accrued interest, and may not seek to recover the same as a collection from
Employee's estate.

                  (b) If, during the Agreement Term, in the opinion of a duly
licensed physician acceptable to the Employee and the Company, the Employee
because of physical or mental illness or incapacity shall become substantially
unable to perform the duties and services required of him under this Agreement
for a period of thirty (30) or more consecutive days or an aggregate of thirty
(30) days in any twelve-month period (the "Disability"), the Company may, upon
at least thirty (30) days' prior written notice (given at any time after the
expiration of such period) to the Employee of its intentions to do so, terminate
this Agreement as of such date as may be set forth in the notice. In case of
such termination, the Employee shall be entitled to receive any remaining
Employee's Commission and reimbursable expenses and benefits, if any, owing to
the Employee through the date of termination. Furthermore, should Employee's
disability occur prior to the Due Dates as set forth in paragraph 5.2 herein,
the Company shall forgive and cancel the Loan and any accrued interest, and may
not seek to recover the same as a collection from Employee or his estate.
Employee will not be entitled to any other compensation upon termination of this
Agreement pursuant to this Paragraph 12(b) and the vesting of the restricted
stock granted under 5.1(d) shall cease upon termination of this Agreement for
Disability.

                                      -7-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED
                                         WITH RESPECT TO CERTAIN PORTIONS HEREOF
                                                              DENOTED WITH "***"

         13. GOOD CAUSE.

                  (a) As used herein, the term "Good Cause" shall mean:

                           (i) a material breach by Employee of the terms of
this Agreement or the Company's written policies delivered to him, including
those with respect to insider trading and other trading activities, which
material breach remains uncured after twenty (20) days following Employee's
receipt from Company of written notice specifying such breach or default;

                           (ii) gross negligence or willful misconduct by
Employee or the material breach of a fiduciary duty of Employee to the Company
in the performance of his duties hereunder;

                           (iii) the commission by Employee of an act of fraud,
embezzlement or any other crime by Employee in the performance of his duties as
an employee hereunder as determined by a court that has jurisdiction over such
matters;

                           (iv) conviction of Employee of a felony or any other
crime that could materially interfere with the performance of Employee's duties
hereunder or material damages the reputation of the Company;

                           (v) failure to hold and maintain in full force and
effect during the term of this Agreement, all licenses required by FINRA, all
applicable self regulatory organizations ("SRO"), and all federal and state
securities and other laws necessary to perform services to the Company as
contemplated by this Agreement.

                           (vi) except as may have been disclosed in writing to
the Company, Employee's failure to disclose to Company prior or existing
customer complaints, arbitrations, legal proceedings, or regulatory,
administrative, civil or criminal matters threatened or pending, or any other
matter which may adversely affect the employment of the Employee by the Company,
such as a violation of any rules promulgated by the NASD or another SRO, or any
other reportable event that should be disclosed by Employee on Form U-4..

                           (vii) failure to promptly notify the Company if (i)
Employee becomes a party to any inquiry, investigation, litigation, legal
proceeding or arbitration, (ii) any award or judgment is entered against
Employee; (iii) Employee's registration or license to sell securities is
refused, suspended, threatened or revoked by the SEC, FINRA or any SRO; (iv)
Employee becomes subject to a proceeding to effectuate the foregoing; (v)
Employee is enjoined, temporarily or otherwise, from selling or dealing in
securities; or (vi) Employee is arrested, summoned, arraigned, or indicted in
connection with a criminal offense.

                  (b) As used herein, the term "Good Cause" shall NOT mean any
action or threatened action against either the Company or the Employee, or both,
by the Former Employer of Employee to restrain or enjoin Employee's employment
with the Company or the Company's business, in whole or in part.

                  (c) Upon Employee's termination for Good Cause prior to the
First Anniversary of this Agreement, the Loan, shall become immediate due and
payable pursuant to the terms described in paragraph 5.2 hereunder. Upon
Employee's termination for Good Cause after the First Anniversary but prior to
the Second Anniversary, the remaining balance of the Loan not forgiven shall
become immediate due and payable pursuant to the terms described in paragraph
5.2 hereunder

         14. REMEDY. It is mutually understood and agreed that Employee's
services are special, unique, unusual, extraordinary and of an intellectual
character giving them a peculiar value, the loss of which cannot be reasonably
or adequately compensated in damages or in an action at law. Accordingly, in the
event of any breach of this Agreement by Employee, the Company shall be entitled
to equitable relief by way of injunction or otherwise in addition to damages the
Company may be entitled to recover. In addition, the Company shall be entitled
to reimbursement from Employee, upon request, of any and all reasonable
attorneys' fees and expenses incurred by it in enforcing any term or provision
of this Agreement.

                                      -8-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED
                                         WITH RESPECT TO CERTAIN PORTIONS HEREOF
                                                              DENOTED WITH "***"

         15. NOTICES. All notices given hereunder shall be in writing and shall
be deemed effectively given when mailed, if sent by registered or certified
mail, return receipt requested, address to Employee at his address set forth on
the first page of this Agreement and to the Company at its address set forth on
the first page of this Agreement, Attention: MARTY CUNNINGHAM, with a copy to
Ellenoff Grossman & Schole, LLP, 370 Lexington Avenue, 19th Floor, New York, New
York 10016, Attention: David Selengut, Esq., or at such address as such party
shall have designated by a notice given in accordance with this Paragraph 15.

         16. ENTIRE AGREEMENT. This Agreement constitutes the entire
understanding of the parties with respect to its subject matter and no change,
alteration or modification hereof may be made except in writing signed by the
parties hereto. Any prior or other agreements, promises, negotiations,
understandings or representations not expressly set forth in this Agreement are
of no force or effect.

         17. SEVERABILITY. If any provision of this Agreement shall be
unenforceable under any applicable law, then notwithstanding such
unenforceability, the remainder of this Agreement shall continue in full force
and effect.

         18. AMENDMENTS, MODIFICATIONS, WAIVERS.No amendment, modification or
waiver of any provisions of this Agreement shall be effective unless the same
shall be in writing and signed by each of the parties hereto, and then such
waiver or consent shall be effective only in specific instances and for the
specific purpose for which given.

         19. ASSIGNMENT. Neither this Agreement, nor any of Employee's rights,
powers, duties or obligations hereunder, may be assigned by Employee. This
Agreement shall be binding upon and inure to the benefit of Employee and his
heirs and legal representatives and the Company and its successors and assigns.
Successors of the Company shall include, without limitation, any corporation or
corporations acquiring, directly or indirectly, all or substantially all of the
assets of the Company, whether by merger, acquisition, consolidation, purchase
or otherwise, and such successor shall thereafter be deemed "the Company" for
purposes hereof.

         20. APPLICABLE LAW. This Agreement shall be deemed to have been made,
drafted, negotiated and the transactions contemplated hereby consummated and
fully performed in the State of New York and shall be governed by and construed
in accordance with the laws of the State of New York , without regard to the
conflicts of law rules thereof.

         21. ARBITRATION.

                  (a) The parties agree that any and all claims or disputes
arising under this Agreement, as to which they may be adverse parties, will be
resolved by arbitration before FINRA and that with respect to this Agreement, a
party may seek injunctive relief and ancillary damages before FINRA. Each party
irrevocably consents to subject matter and personal jurisdiction before FINRA.
The parties shall restrict themselves to claims for compensatory damages and no
claims shall be made by any party for punitive or similar damages. The parties
agree that any award or decision by FINRA shall be final and binding upon the
parties and a judgment may be entered in a court of competent jurisdiction upon
such award or decision. The parties agree that the location of any arbitration
or legal proceedings hereunder shall be the City of New York, State of New York.

                  (b) The parties agree that in the event that there is a
threatened breach or breach of any of the covenants, agreements and
representations contained in this Agreement, the Company will suffer immediate
and irreparable harm and money damages and as a result thereof, the Company
shall have the right to seek injunctive relief before FINRA or through the
judicial process in addition to any and all rights and remedies at law or equity
it may have. In any such action or proceeding, the Company shall be entitled to
reimbursement for all legal fees it may incur. The parties further agree that
the Company shall not be required to post any bond with regards to it seeking
any equitable or legal relief hereunder.

                                      -9-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED
                                         WITH RESPECT TO CERTAIN PORTIONS HEREOF
                                                              DENOTED WITH "***"

         22. FULL UNDERSTANDING. Employee represents and agrees that he fully
understands his right to discuss all aspects of this Agreement with his private
attorney, that to the extent, if any that he desired, he availed himself of this
right, that he has carefully read and fully understands all provisions of this
Agreement, that he is competent to execute this Agreement, that his agreement to
execute this Agreement has not been obtained by any duress and that he freely
and voluntarily enters into it, and that he has read this document in its
entirety and fully understands the meaning, intent and consequences of this
document, which is that it constitutes and agreement of employment.

         23. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original and all of which taken
together shall constitute one and the same agreement.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -10-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED
                                         WITH RESPECT TO CERTAIN PORTIONS HEREOF
                                                              DENOTED WITH "***"

         IN WITNESS WHEREOF, the parties have executed this Agreement as of the
date first above written.

                                        HUDSON SECURITIES, INC.

                                        By: /S/ KEITH KNOX
                                            --------------
                                               Name: Keith Knox
                                               Title: President

                                        EMPLOYEE

                                        /S/ VINCENT PELOSI
                                        ------------------
                                        Name: Vincent Pelosi

                                      -11-
<PAGE>

                                                CONFIDENTIAL TREATMENT REQUESTED
                                         WITH RESPECT TO CERTAIN PORTIONS HEREOF
                                                              DENOTED WITH "***"

                                 PROMISSORY NOTE

DANA PASCUCCI., an individual residing 11 Denise Court, Lincroft, New Jersey
07738. ("Debtor"), promises to pay to HUDSON SECURITIES, INC., a Delaware
corporation, having an address of 111 Town Square Place, 15th Floor, Jersey
City, New Jersey 07310, hereinafter referred to as "Creditor", the sum of ***
which represents a forgivable loan owed by the Debtor to the Creditor under the
employment agreement between the Debtor and Creditor dated November 28, 2007
(the "Employment Agreement"), and interest at the annual rate of *** (the
"Loan") in the event the Loan becomes due under the terms of the Employment
Agreement, which is fully adopted and incorporated herein.

         Payment shall be made to the order of Creditor at the address of
Creditor set forth above, or at such other place as Creditor or any subsequent
holder of this Note may designate when the Loan becomes due, unless forgiven
under the terms of the Employment Agreement. Debtor and Creditor further agree
as follows:

         1) It is the desire and intent of the parties that the terms,
provisions, covenants and remedies contained in this Note shall be enforceable
to the fullest extent permitted by law. If any term, provision, covenant or
remedy of this Note shall, to any extent, be construed to be invalid or
unenforceable in whole or in part, then such term, provision, covenant or remedy
shall be construed in a manner so as to permit its enforceability under the
applicable law to the fullest extent permitted by law. In any case, the
remaining provisions of this Note or the application thereof, other than those
to which they have been held invalid or unenforceable, shall remain in full
force and effect.

         2) Should any provision of this Note require interpretation or
construction, it is agreed by the parties that the entity interpreting or
construing this Note shall not apply a presumption that the provisions hereof
shall be more strictly construed against one party by reason of the rule of
construction that a document is to be construed more strictly against the party
who prepared the Note, it being agreed that both parties (by their respective
attorneys) have participated in the preparation of all the provisions of this
Note.

         3) The laws of the State of New York govern this Note and the validity
and performance thereof.

         4) This Note and the Employment Agreement embodies the entire
understanding between the parties hereto with respect to the subject matter
hereof and may not be used as evidence of wrongdoing or as an admission of guilt
by either party in any subsequent legal action.

         5) This Note may be changed, waived, discharged or terminated only by
an instrument in writing signed by the party against whom enforcement of any
change, waiver, discharge or termination is to be sought. No waiver of any term
or provision of this Note will be deemed a waiver of any subsequent breach of
such term or provision, or the breach of any other term or provision of this
Note. Failure of any party to claim default of all or any part of this Note by
the other party, or failure to enforce all or any of its rights hereunder, will
not be construed as a waiver of any subsequent claims or rights or as novation
or modification in any way of this Note.

         6) This Note and any rights herein granted are personal to Creditor,
and any assignment (including a merger, sale of majority stock interest or
transfer of control of Debtor) by Debtor, or other encumbrance, is void (or
shall be deemed to be ineffective in transferring any rights pursuant to this
Note) without Creditor's prior written consent.

         7) Creditor has the right to assign the Note.

         8) Debtor and any other person who has obligations under this Note
waives the rights of presentment and notice of dishonor. "Presentiment" means
the right to require the Creditor to demand payment of amount due. "Notice of
Dishonor" means the right to require the Creditor to give notice to other
persons that amounts have not been paid.

         9) The Debtor represents that he is duly authorized to enter into this
Note.

/S/ VINCENT PELOSI
------------------
Vincent Pelosi
Dated: November 28, 2007                    Notary:  /S/ FARISHA W. MOHAMMED
                                                     -----------------------

                                      -12-

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