Document:

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                                                                   Exhibit 10.74

                                            ***TEXT OMITTED AND FILED SEPARATELY
                                                CONFIDENTIAL TREATMENT REQUESTED
                                           UNDER 17 C.F.R. SECTIONS 200.80(b)(4)
                                                                   AND 240.24B-2

                                SUPPLY AGREEMENT
                              AMENDMENT NUMBER ONE

THIS SUPPLY AGREEMENT AMENDMENT NUMBER ONE ("Amendment") is made and entered
into as of June 4, 2004 ("Amendment Effective Date"), by and between GEN-PROBE
INCORPORATED, a Delaware corporation, with its principal place of business at
10210 Genetic Center Drive, San Diego, California 92121 ("Gen-Probe") and MGM
INSTRUMENTS, INC., a Nevada corporation, with its principal place of business at
925 Sherman Avenue, Hamden, Connecticut 06514 ("MGM"). All capitalized terms
used but not defined in this Amendment will have the respective meaning given to
them in the Agreement (defined below).

                                    RECITALS

      WHEREAS, MGM and Gen-Probe previously entered into a Supply Agreement
having an effective date of January 1, 2002 ("Agreement"); and

      WHEREAS, MGM has developed a thermoelectric device known as the
Shaker/Baker, which Gen-Probe desires to have MGM manufacture and supply to
Gen-Probe for sale or lease to Gen-Probe's customers under the terms and
conditions set forth herein.

      NOW, THEREFORE, for good and valuable consideration, the parties agree to
amend the Agreement as follows:

1.    DEFINITIONS

1.1. "Affiliate" shall mean, as to any Person, any other Person which directly
or indirectly controls, is controlled by, or is under common control with such
Person. For purposes of the preceding definition, "control" shall mean
beneficial ownership of more than fifty percent (50%) of the outstanding shares
or securities or the ability otherwise to elect a majority of the board of
directors or other managing authority.

1.2. "[...***...]" shall mean the [...***...].

1.3. "[...***...]" shall mean the [...***...].

1.4. "Instrument" or "Instruments" shall mean those items identified in EXHIBIT
C to the Agreement and in EXHIBIT C-1, which is attached hereto and incorporated
by reference herein.

1.5. "MGM Technology" shall mean all techniques, ideas, inventions (including
patentable inventions), practices, methods, knowledge, know-how, trade secrets,
skill, experience, documents, data or apparatus relating to, and all Patents
claiming, any aspect or component of the Shaker/Baker Instrument.

1.6. "Shaker/Baker Instrument" shall mean the instrument described on EXHIBIT
C-1 hereto.

                                               *CONFIDENTIAL TREATMENT REQUESTED

<PAGE>

1.7. "Specifications" shall mean with respect to the Shaker/Baker Instrument,
the specifications and drawings of the Shaker/Baker Instrument provided by MGM
as they may be modified from time to time in accordance with Article 3 of the
Agreement.

1.8. "Patent" shall mean any (a) U.S. or foreign patent, re-examination,
reissue, renewal, extension or term restoration, or (b) pending application for
a U.S. or foreign patent, including, without limitation, any provisional
application, continuation, continuation-in-part, divisional or substitute
application, or inventors' certificate.

1.9. "Person" shall mean any corporation, natural person, firm, joint venture,
partnership, trust, unincorporated organization, government or any department or
agency of any government.

1.10. "Repair" shall mean to bring an instrument to working order.

1.11. "Retrofit" shall mean to upgrade an instrument to the latest revision or
version of an instrument.

1.12. "Refurbishment" shall mean to bring an instrument to nearly new condition.

1.13. "Parts" for purposes of this Amendment shall have the meaning set forth in
Section 2.2.

1.14. "Supply Term" for purposes of this Amendment shall have the meaning set
forth in Section 4.1 of this Amendment.

1.15. "Third Party" shall mean any Person other than MGM, Gen-Probe or an
Affiliate of MGM or Gen-Probe.

1.16. "Warranty Period" for purposes of this Amendment shall have the meaning
set forth in Section 10.3.1 of this Amendment.

2.    SCOPE OF WORK TO BE PERFORMED BY MGM AND GEN-PROBE

2.1 For purposes of this Amendment and only with respect to the Shaker/Baker
Instrument, Section 2 of the Agreement shall be amended and replaced in its
entirety as follows:

      "2.1 MGM shall manufacture, supply, deliver and service the Shaker/Baker
      Instrument in accordance with the terms of the Agreement and this
      Amendment.

      2.2 Gen-Probe may purchase spare parts listed on EXHIBIT E-1 ("Spare Parts
      Price List"), attached hereto and incorporated by reference herein
      ("Parts") and the Shaker/Baker Instruments from MGM and then distribute,
      sell, resell, rent, lease or otherwise dispose of such instruments and
      parts to users and distributors pursuant to Section 4 of this Amendment."

                                       2
<PAGE>

3.    SUPPLY OF INSTRUMENT AND PARTS

3.1 For purposes of this Amendment and only with respect to the Shaker/Baker
Instrument, Section 4.1 of the Agreement shall be amended as follows:

      "4.1 The Shaker/Baker Supply Term shall commence on the Amendment
      Effective Date and shall continue for six (6) years from the Amendment
      Effective Date ("Supply Term"). Prior to the end of the Supply Term, the
      parties may agree to renew this Agreement for additional six (6) year
      periods on the same terms and conditions by executing a Renewal Agreement,
      an example of which is attached to the Agreement as EXHIBIT G and
      incorporated by reference herein."

4.    DISTRIBUTION AND EXCLUSIVITY

4.1 MGM grants Gen-Probe the worldwide exclusive right to distribute, sell,
rent, lease or otherwise dispose of the Shaker/Baker Instrument [...***...] for
six (6) years from the Amendment Effective Date ("Initial Distribution Term").
Gen-Probe may, at its option, extend the Initial Distribution Term for
subsequent six (6) year terms (each an "Additional Distribution Term") subject
to the terms of Section 5.1 of the Amendment, by providing written notice to MGM
prior to the expiration of the Initial Distribution Term or any subsequent term.

4.2 If after the first [...***...] of the Initial Distribution Term, Gen-Probe
has failed to distribute, sell, rent, lease or otherwise dispose of any
Shaker/Baker Instrument(s) [...***...], then MGM shall also have the right
(co-exclusive with Gen-Probe) to distribute, sell, rent, lease or otherwise
dispose of the Shaker/Baker Instrument [...***...]. If after the first
[...***...] of the Initial Distribution Term, Gen-Probe has failed to
distribute, sell, rent, lease or otherwise dispose of any Shaker/Baker
Instrument(s) [...***...], then MGM shall also have the right (co-exclusive with
Gen-Probe) to distribute, sell, rent, lease or otherwise dispose of the
Shaker/Baker Instrument [...***...].

5.    FEES AND PRICING

5.1 For purposes of this Amendment and only with respect to the Shaker/Baker
Instrument, Section 5 of the Agreement shall be amended as follows:

      "5.1 In consideration of the rights granted by MGM to Gen-Probe in Section
      4.1 of the Amendment, Gen-Probe shall pay to MGM [...***...], payable upon
      execution of this Amendment. In the event Gen-Probe elects to extend the
      Initial Distribution Term or any subsequent term for an Additional
      Distribution Term, Gen-Probe shall pay MGM [...***...] for each such
      Additional Distribution Term, payable within [...***...] of Gen-Probe's
      election to extend such term.

      5.2 Gen-Probe shall pay to MGM the purchase price of [...***...] for each
      Shaker/Baker Instrument ("Shaker/Baker Instrument Purchase Price")
      purchased by Gen-Probe from MGM during the period following [...***...]
      from the Amendment Effective Date.

                                               *CONFIDENTIAL TREATMENT REQUESTED

                                       3
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      5.3 Following the [...***...] anniversary of the Effective Date, MGM may
      adjust the Shaker/Baker Instrument Purchase Price, [...***...]. In the
      event that Gen-Probe elects to extend the Initial Distribution Term or any
      subsequent term for Additional Distribution Terms pursuant to Section 4.1
      of the Amendment, Gen-Probe shall pay to MGM the Adjusted Price for each
      Shaker/Baker Instrument purchased during such Additional Distribution
      Term.

      5.4 In the event that MGM distributes, sells, rents, leases or otherwise
      disposes of the Shaker/Baker Instrument to a party other than Gen-Probe (a
      "Third Party") [...***...] described in Section 5.1 of this Amendment;
      [...***...].

      5.4 Additional discounts/repayments for each calendar year may be agreed
      upon by Gen-Probe and MGM, and any such additional discounts/repayments
      will be set forth in and made a part of EXHIBIT D ("Additional Discounts
      and Repayments") of the Agreement, without the necessity of amendment of
      the Agreement or this Amendment.

      5.5 Parts and materials shall be priced as shown on EXHIBIT E-1 ("Spare
      Parts Price list"). These items will be appropriately wrapped, packaged,
      and identified with Gen-Probe's and MGM's part numbers, revision,
      description and any other markings or designations requested by Gen-Probe.

      5.6 All payments hereunder shall be made in United States dollars.
      Gen-Probe shall pay MGM [...***...] for each Shaker/Baker Instrument
      [...***...] as set forth in Section 4.2 of the Agreement. The [...***...]
      shall be paid by Gen-Probe within [...***...] of Gen-PROBe's receipt and
      acceptance of the Shaker/Baker Instrument."

6.    SERVICE, MANUALS AND REPLACEMENT PARTS

6.1 For purposes of this Amendment and only with respect to the Shaker/Baker
Instrument, Section 7 shall be amended as follows:

6.2 The following Sections 7.4 and 7.5 shall be added as follows:

      "7.4 Within three (3) months of the Amendment Effective Date, MGM will
      provide Gen-Probe with procedures for on-site Repair of the Shaker/Baker
      Instrument by Gen-Probe service technicians, including a list and pricing
      of parts necessary for such on-site Repairs.

      7.5 Within [...***...] of the Amendment Effective Date, MGM will:

            7.5.1 Establish repair facilities in the United States and the
            European Union for the Repair, Refurbishment and/or Retrofit of the
            Shaker/Baker Instruments beyond the Warranty Period.

                                               *CONFIDENTIAL TREATMENT REQUESTED

                                       4
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            7.5.2 Establish a menu and price list for each Repair, Refurbishment
            and Retrofit and update such price list annually for reasonable cost
            of living and material increases or decreases only.

            7.5.3 Establish a list and prices for replacement parts for
            preventative maintenance recommended every three (3) years at MGM's
            repair facilities and update such price list annually for reasonable
            cost of living and material increases or decreases only."

7. REPRESENTATION AND WARRANTIES

7.1 For purposes of this Amendment and only with respect to the Shaker/Baker
Instrument, Section 10.1 and Section 10.3.1 of the Agreement shall be amended as
follows:

      "10.1 MGM represents and warrants to Gen-Probe that: (i) it has full
      corporate authority to enter into the Agreement and this Amendment and to
      consummate the transactions contemplated herein and to fulfill its
      obligations set forth in the Agreement and this Amendment; and (ii) the
      MGM Technology and the Shaker/Baker Instrument do not infringe the
      intellectual property rights of any Third Party."

      "10.3.1 The Shaker/Baker Instruments and Parts delivered will (i) perform
      in accordance with the requirements of the Specifications, the ATP, and
      Article 12 of the Agreement; and (ii) be free from defects in material,
      design, and workmanship for a period of twenty-four (24) months beginning
      from the date of delivery of the Shaker/Baker Instrument to Gen-Probe (the
      "Warranty Period"). As to any such Shaker/Baker Instrument defect, MGM
      shall be relieved of all obligations of liability under Section 10.3.1 of
      the Agreement if the Shaker/Baker Instrument is operated with any
      accessory or part not manufactured in accordance with the approved
      Specifications, or is operated with any fluid or material not jointly
      approved by MGM and Gen-Probe, or is not operated or maintained in
      accordance with the Operator's and/or Service Manuals."

                                       5
<PAGE>

8. BACK-UP MANUFACTURING RIGHTS

8.1 If MGM: (i) discontinues or permanently ceases to manufacture the
Shaker/Baker Instrument (unless otherwise agreed to in advance by Gen-Probe); or
(ii) otherwise breaches its supply obligations hereunder ("Back-up License
Event"), then, effective as of the occurrence of such Back-up License Event,
Gen-Probe shall have a right to purchase from MGM, at a reasonable purchase
price to be negotiated in good faith and to conclusion by the parties pursuant
to Section 8.3 below, and MGM shall grant to Gen-Probe a non-exclusive,
worldwide, irrevocable and perpetual license under the MGM Technology necessary
or useful to the manufacture, use, importation or sale of the Shaker/Baker
Instrument ("Back-up License"), solely to enable Gen-Probe to make or have made
the Shaker/Baker Instruments for distribution, sale, rental, lease or other
disposition of the Shaker/Baker Instrument by Gen-Probe. In the event of a
Back-up License Event during the Initial Distribution Term or any Additional
Distribution Term, MGM shall refund to Gen-Probe a pro-rata amount of exclusive
distribution fee paid by Gen-Probe for any remaining portion of such term
following a Back-up License Event.

8.2 If a Back-up License Event has occurred, and Gen-Probe has purchased the
Back-up License from MGM pursuant to Section 8.1 above, MGM shall cooperate with
Gen-Probe in effecting the disclosure and/or transfer, as appropriate, of such
MGM Technology as is reasonably necessary to commence or continue commercial
manufacture of Shaker/Baker Instrument, and shall provide such technical
assistance as Gen-Probe may reasonably require, at Gen-Probe's cost to the
extent of any out-of-pocket expenses incurred by MGM in connection therewith.
Such cooperation shall include the prompt assignment to Gen-Probe of any Third
Party manufacturing or supply contracts relevant to the manufacture of the
Shaker/Baker Instrument, or, where assignment is impractical because such Third
Party is performing other services for MGM under the same contract, MGM shall
take reasonable steps to facilitate a similar agreement between such Third Party
and Gen-Probe directly.

8.3 If Gen-Probe notifies MGM in writing that Gen-Probe believes a Back-up
License Event has occurred and that Gen-Probe elects to exercise its right to a
Back-up License, the parties shall immediately negotiate the purchase price for
the Back-up License pursuant to terms of this Section 8.3. If the parties are
unable to agree on the purchase price within 10 days despite their best efforts,
then each party shall notify the other in writing of its final purchase price
offer. With its notice, Gen-Probe shall deliver to MGM payment in an amount
equal to its final purchase price offer. MGM shall then immediately take the
actions required by Section 8.2. The parties shall then submit the purchase
price dispute to arbitration pursuant to Section 16 of the Agreement for
decision within 45 days. The arbitrator shall determine the purchase price by
selecting one party's final purchase price offer made in accordance with this
Section 8.3. If the arbitrator finds that a Back-up License Event did not occur,
the arbitrator shall award MGM [...***...] of the purchase price determined by
the arbitrator, as MGM's sole relief; provided, however, that if the arbitrator
determines that Gen-Probe acted with intentional bad faith in declaring a
Back-up License Event, then the arbitrator may award MGM not more than
[...***...] of the purchase price, as MGM's sole relief. Gen-Probe shall pay any
additional amount due MGM as a result of the arbitrator's decision within
[...***...] business days of the award.

                                               *CONFIDENTIAL TREATMENT REQUESTED

                                       6
<PAGE>

9. INDEMNIFICATION AND LIMITATIONS

9.1 MGM will indemnify and hold harmless Gen-Probe, its officers, directors,
employees and agents ("Indemnified Parties") from and against any and all
losses, damages, liabilities, expenses and costs, including reasonable legal
expense and attorneys' fees ("Losses") to which such Indemnified Parties may
become subject as a result of any claim, demand, action or other proceeding by
any Third Party to the extent such Losses arise directly or indirectly out of
(a) a breach by MGM of any warranty, representation, covenant or agreement made
by MGM in this Amendment, or (b) personal injury resulting from the manufacture
of the Shaker/Baker Instrument by MGM, except in each case, to the extent such
Losses result from, the breach of this Agreement by, or the gross negligence or
willful misconduct of, any of the Indemnified Parties.

9.2 Notwithstanding Section 9.1 above or any other provision of this Agreement,
MGM will have no liability for any claim based on: (i) Gen-Probe's noncompliance
with MGM's Specifications, (ii) any modification of or damage to the
Shaker/Baker Instrument after shipment by MGM, including any repair of the
Shaker/Baker Instrument performed by a party other than MGM or its designated
agent(s), or (iii) use of the Shaker/Baker Instrument in combination with
materials or instrumentation from third parties not provided or approved by MGM
and used in a manner that is materially inconsistent with the Operator's and
Service Manuals for the Shaker/Baker Instrument.

10. LIMITATION OF LIABILITY.

      Except for liability for breach of Section 11 of the Agreement, neither
party shall be entitled to recover from the other party any special, incidental,
consequential or punitive damages in connection with the Agreement or this
Amendment; provided however, that this Section 10 shall not be construed to
limit either Gen-Probe's indemnification rights or obligations under Section 9
of this Amendment.

11. FULL FORCE AND EFFECT

      All other terms and conditions of the Agreement remain unchanged and in
full force and effect.

12. SIGNATURES

      Facsimile signatures are deemed equivalent to original signatures for
purposes of this Amendment.

13. ENTIRE AGREEMENT

      The Agreement and this Amendment constitute the entire agreement and
understanding between the parties with respect to the subject matter hereof and
there are no promises, representations, conditions, warranties, commitments,
understanding, provisions or terms related thereto other than those set forth in
the Agreement and this Amendment, and the Agreement and this Amendment supercede
all previous understandings, agreements and representations between

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<PAGE>

the parties, written or oral with respect to the subject matter hereof. The
provisions of this Agreement may not be waived, changed, modified or amended
except by a writing signed by both parties.

      IN WITNESS WHEREOF, the parties have entered into this Amendment by their
duly authorized representatives as of the date first written above.

GEN-PROBE INCORPORATED                                MGM INSTRUMENTS, INC.

By:  /s/ Henry L. Nordhoff                            By: /s/ George Mismas
    -----------------------------------                   ----------------------
   Henry L. Nordhoff                                     George Mismas
   President & Chief Executive Officer                   Chief Executive Officer

                                       8
<PAGE>

LIST OF EXHIBITS

EXHIBIT C-1 LIST OF INSTRUMENTS/PRICING

EXHIBIT E-1 SPARE PARTS PRICE LIST

                                       9
<PAGE>

                                   EXHIBIT C-1

                           LIST OF INSTRUMENTS/PRICING

Shaker/Baker Instrument: Thermoelectric device capable of active heating and
cooling as well as mixing.

<TABLE>
<S>                       <C>
Gen-Probe part number:    [...***...]
Description:              [...***...]
Price:                  $ [...***...]
</TABLE>

                                               *CONFIDENTIAL TREATMENT REQUESTED

                                       10
<PAGE>

                                   EXHIBIT E-1

                             SPARE PARTS PRICE LIST

[...***...]

[...***...]
[...***...]

[...***...]

[...***...]

[...***...]

[...***...]

[...***...]

                                               *CONFIDENTIAL TREATMENT REQUESTED

                                       11<PAGE>

                                                                    Exhibit 10.1

                              EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT, dated as of April 1, 2004 (this "Agreement"), by and
between SOLA International, Inc., a Delaware corporation (the "Company"), and
Barry Packham (the "Executive").

WHEREAS, the Executive possesses skills and experience that are of value to the
Company; and

WHEREAS, the Company has determined that it is in its best interest to secure
the continued services and employment of the Executive on behalf of the Company
in accordance with the terms of this Agreement and the Executive is willing to
render such services on the terms and conditions set forth herein.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the
parties hereto agree as follows:

1.    Duties. During the Employment Term, the Executive shall serve as Executive
      Vice President and General Manager, North America and such other
      position(s) as the Chief Executive Officer of the Company (the "CEO") may
      reasonably designate.

      The Executive shall devote all of his business time and attention and
      ability to the performance of such duties, services and responsibilities,
      and will use his best efforts to promote the interests of the Company. The
      Executive will not, directly or indirectly, render services of a business,
      commercial or professional nature to any other person or organization,
      whether for compensation or otherwise, without the prior consent of the
      CEO.

2.    Compensation. In full consideration of the performance by the Executive of
      the Executive's obligations during his employment (including any services
      by the Executive as an officer, director, employee or member of any
      committee of any subsidiary or affiliate of the Company, or otherwise on
      behalf of Company), the Executive shall be compensated as follows:

      Your remuneration package as an executive of the Company will be as
      follows:

      2.1.  A base salary of US$ 330,000.

      2.2.  The Executive will be eligible for a bonus pursuant to the terms and
            conditions of the Company's "Management Incentive Plan". I have
            provided you with an outline of how I intend to structure your
            incentive plan in this role.

      2.3.  A company car allowance in the sum of US$ 800 per month.

      2.4.  You will continue to be a member of the SOLA Australia
            Superannuation Fund, which will be paid at the rate of an equivalent
            Australian salary rather than a direct translation of your US
            salary.

3.    Benefits.

       (i) In addition to the payments and awards described in Section 3 of this
           agreement, during your employment, the Executive shall be entitled to
           participate in any and all employee benefit plans the Company
           regularly provides its other executives or employees including, but
           not limited to, health, dental, vision, pension or other retirement
           plans.

      (ii) The Company will pay your telephone rental and reimburse you for all
           business related calls.

4.    Vacation. You will be entitled to 20 days Annual Leave with no annual
      leave loading.

<PAGE>

5.    Termination. Employment with the Company may be terminated by either party
      upon the occurrence of any of the following events:

      5.1.  The death or disability of the Executive.

      5.2.  The termination of employment by the Company for Cause. As used
            herein, "Cause" shall mean Executive's: (i) willful misconduct,
            neglect of duties, or any act or omission any or all of which
            materially adversely affect the Company's business after receipt
            from the Company of a detailed statement of the cause for
            termination, or (ii) conviction of, or plea of guilty or nolo
            contendere to, a felony.

      5.3.  If the Executive's employment is terminated by SOLA, other than for
            cause, prior to September 30, 2005 the Executive's current 18 month
            severance agreement will apply.

      5.4.  If termination of employment by the Executive or the Company occurs
            after October 1, 2005, other than for cause, notice of termination
            of employment by either side is 6 months and must be given in
            writing.

      5.5.  Resignation by the Executive for Good Reason. As used herein, "Good
            Reason" shall mean (i) regular assignment by the Company to the
            Executive of duties and responsibilities that materially diminish
            his position as Executive Vice President and General Manger, North
            America or (ii) reduction of the Executive's Base Salary or a
            material reduction in his employee benefits (other than incentive
            compensation) that is not part of, or is disproportionate to a
            general reduction by the Company of executive compensation.

6.    Termination Payments. If the Executive's employment with the Company
      terminates the Company's, its subsidiaries' and its affiliates' sole
      obligation hereunder, except as otherwise provided in this Section 6,
      shall be to pay the Executive (a) any accrued and unpaid Base Salary as of
      the Termination Date and (b) an amount equal to such reasonable and
      necessary business expenses incurred by the Executive in connection with
      the Executive's employment on behalf of the Company on or prior to the
      Termination Date but not previously paid to the Executive (the "Accrued
      Compensation"). In addition, if the Executive's employment with the
      Company terminates pursuant to either Section 5.3, Section 5.4 or Section
      5.5 hereof, the Company's, its subsidiaries' and its affiliates' sole
      obligation hereunder shall be to (a) pay the Accrued Compensation, (b)
      continue to pay the Executive the Base Salary (at the rate in effect at
      the time of termination of employment) for the appropriate termination
      period as detailed in 5.3 and 5.4 above, commencing with the first of the
      month following the month in which termination takes place, (c) pay the
      Executive the appropriate percentage, determined by the termination period
      detailed in 5.3 and 5.4 above, of the average Management Incentive Plan
      compensation (or successor thereto) paid or payable to him for the three
      completed fiscal years immediately prior to the date of such termination
      (including the year of termination if the Termination Date occurs on the
      last day of a fiscal year) (the "MIP Severance"), (d) continue to provide
      the Executive with the benefits described in Section 3 of this Agreement
      for a period of six months after the date of such termination and (e) pay
      up to AU$25,000 for outplacement assistance on behalf of the Executive in
      the form of professional consultation and administrative assistance during
      the twelve months after the date of such termination, in the latter case,
      subject to the Company's approval which may not be unreasonably withheld.
      All monies due under (b), (c) and (d) above will be reduced by an amount
      equivalent to any and all compensation, in whatever form received or
      promised, that is paid to the executive for services or advice of any kind
      provided to another organization or individual during the twelve month
      period following termination. The executive recognizes and agrees to
      promptly and accurately report all such compensation to the company.

      The Company shall have no obligation to the Executive for any payments or
      benefits other than the Accrued Compensation if the Executive terminates
      his employment with the Company other than for Good Reason.

7.    Executive Covenants.

                                       2
<PAGE>

      (a)   Unauthorized Disclosure. The Executive recognizes that the services
            to be performed during the Employment Term by the Company are
            special, unique, and extraordinary and that by reason of the
            Executive's employment with the Company the Executive has acquired
            and will acquire confidential information and trade secrets
            concerning the Company's operations ("Company Confidential
            Information") and the operations of its affiliates ("Affiliate
            Confidential Information"). Accordingly, it is agreed that:

            (i)   The Executive shall not divulge to any entity or person, other
                  than the Company or its affiliates, or, in the event of an
                  assignment of this Agreement pursuant to Section 14 hereof,
                  the assignee and its affiliates, if any, whether during the
                  Employment Term or after a severance Event, any Company
                  Confidential Information concerning the Company's customer
                  lists, research or development programs or plans, processes,
                  methods or any other of its trade secrets, except information
                  that is then available to the public in published literature
                  and became publicly available through no fault of the
                  Executive.

            (ii)  The Executive shall not divulge to any person or entity,
                  including an assignee of this Agreement and its affiliates,
                  but excepting the Company and its affiliates, whether during
                  the Employment Term or after a Severance Event, any Affiliate
                  Confidential Information acquired by the Executive concerning
                  the customer lists, research or development programs or plans,
                  processes, methods or any other trade secrets of the Company
                  or any affiliate, except information which is then available
                  to the public in published literature and became publicly
                  available through no fault of the Executive.

            (iii) The Executive acknowledges that all information the disclosure
                  of which is prohibited hereby is of a confidential and
                  proprietary character and of great value to the Company and
                  its affiliates. Upon a Severance Event, the Executive shall
                  forthwith deliver up to the Company all records, memoranda,
                  data and documents of any description which refer or relate in
                  any way to Company Confidential Information or Affiliate
                  Confidential Information and return to the Company any of its
                  equipment and property which may then be in the Executive's
                  possession or under the Executive's personal control. Upon the
                  assignment of this Agreement, pursuant to Section 14, the
                  Executive shall forthwith deliver up to the Company all
                  records, memoranda, data and documents of any description
                  which refer or relate in any way to Affiliate Confidential
                  Information and return to the Company any of its equipment and
                  property which may then be in the Executive's possession or
                  under the Executive's personal control.

      (b)   Non-competition. By and in consideration of the Company's entering
            into this Agreement and the payments to be made and benefits to be
            provided by the Company hereunder, and in further consideration of
            the Executive's exposure to the Company Confidential Information and
            Affiliate Confidential Information, it is agreed that during his
            employment, and for twelve months following a Severance Event or the
            termination of his employment by the Executive other than for Good
            Reason, the Executive will not, directly or indirectly, as an
            officer, director, stockholder, partner, associate, owner, employee,
            consultant or otherwise, become or be interested in or associated
            with any other corporation, firm or business engaged in the same or
            a similar or competitive business with the Company or any of its
            affiliates in any geographical area in which the Company or any of
            its affiliates are then engaged in business, provided that the
            Executive's ownership, directly or indirectly, of not more than one
            percent of the issued and outstanding stock of a corporation the
            shares of which are regularly traded on a national securities
            exchange or in the over-the-counter market shall not, in any event,
            be deemed to be a violation of this Subsection.

      (c)   Non-solicitation. The Executive agrees not to solicit any person
            employed by the Company or its affiliates. As used herein, "solicit"
            or "soliciting" means any direct or indirect approach or appeals to
            such an employee to leave the Company. Indirect solicitation
            includes but is not limited to, acting through a third party or
            parties or

                                       3
<PAGE>

            characterizing job advertisements or opportunities in such a fashion
            so as to entice any employee. The Executive agrees that, if
            approached by a Company employee, the Executive will:

            (i)   Inform the employee of the Executive's obligations set forth
                  in this subparagraph;

            (ii)  Refer the employee to the relevant Company Human Resources
                  personnel; and

            (iii) Request that the employee confirms in writing to the Company
                  that he has approached the Executive and confirms that request
                  in a memorandum to such Human Resources organization.

      (d)   Remedies. The Company shall be entitled, in addition to any other
            right or remedy that it may have at law or in equity with respect to
            a breach of this Agreement by the Executive (including the right to
            terminate payments pursuant to Section 6 hereof), to an injunction,
            without the posting of a bond or other security, enjoining or
            restraining the Executive from any violation or threatened violation
            of this Section 7 and Sections 8 and 9 hereof and the Executive
            hereby consents to the issuance of such an injunction.

8.    Proprietary Rights. The Executive agrees that any invention made by the
      Executive during his employment shall belong to the Company if (a) it was
      made in the normal course of the duties of the Executive or in the course
      of duties falling outside the Executive's normal duties but specifically
      assigned to the Executive, and the circumstances in either case were such
      that an invention might reasonably be expected to result from the carrying
      out of such duties, or (b) the invention was made in the course of the
      duties of the Executive and, at the time of making the invention, because
      of the nature of the Executive's duties and the particular
      responsibilities arising from the nature of the Executive's duties, the
      Executive had a special obligation to further the interests of the
      Company. In addition, if (a) the Executive during his employment shall
      make any improvement or develop any know-how, copyrightable work or
      design, (b) such improvement, know-how, copyrightable work or design is
      relevant to the business of the Company or any of its subsidiaries, and
      (c) such improvement, know-how, copyrightable work or design arose
      directly out of any work carried out during his employment, or out of
      Confidential Company Information or Confidential Affiliate Information to
      which the Executive had access while in the employ of the Company, then
      such improvement, know-how, copyrightable work or design shall belong to
      the Company, whether or not it was disclosed to the Company during the
      Employment Term by the Company.

      In the event that the Executive makes any invention or develops any
      improvement, know-how, copyrightable design or work which belongs to the
      Company, the Executive shall fully, freely and immediately communicate the
      same to the Company and the Executive shall, if and as desired by the
      Company execute all documents and do all acts and things at the Company's
      cost which may be necessary or desirable to obtain letters patent or other
      adequate protection in any part of the world for such invention,
      improvement, know-how, copyrightable work or design and to vest the same
      in the Company for the Company's benefit. The Executive hereby irrevocably
      appoints the Company as the Executive's attorney in the Executive's name
      and on the Executive's behalf to execute all such deeds and documents and
      to do all such acts and things as may be necessary to give effect to this
      Subsection in the event that the Executive fails to comply within seven
      days with the written directions given by the Company pursuant to this
      Subsection.

      The Executive has been notified and understands that the provisions of the
      two immediately preceding paragraphs of this Section 8 do not apply to any
      invention that qualifies fully under the provisions of Section 2870 of the
      California Labor Code, which states as follows:

      (a)   Any provision in an employment agreement which provides that an
            employee shall assign, or offer to assign, any of his or her rights
            in an invention to his or her employer shall not apply to an
            invention that the employee developed entirely on his or her own
            time without using the employer's equipment, supplies, facilities,
            or trade secret information except for those inventions that either:

                                       4
<PAGE>

                           (i) Relate at the time of conception or reduction to
                           practice of the invention to the employer's business,
                           or actual or demonstrably anticipated research or
                           development of the employer, or

                           (ii) Result from any work performed by the employee
                           for the employer.

      (b)   To the extent a provision in an employment agreement purports to
            require an employee to assign an invention otherwise excluded from
            being required to be assigned under subdivision (a), the provision
            is against the public policy of this state and is unenforceable.

9.    Non-Disparagement. In the event of a Severance Event both the Executive
      and the Company agree that neither of them will disparage the other in any
      manner.

10.   Moral Rights Waiver. As used herein, "Moral Rights" shall mean any right
      to claim authorship of a work, any right to object to any distortion, or
      other modification of a work, and any similar right, existing under the
      law of any country in the world, or under any treaty. Executive hereby
      irrevocably transfers and assigns to the Company any and all Moral Rights
      that Executive may have in any services or materials. Executive also
      hereby forever waives and agrees never to assert against the Company, its
      successors or assigns any and all Moral Rights Executive may have in any
      services or materials, even after termination of this Agreement.

11.   Release. In consideration of the payments and covenants under this
      Agreement, the Executive hereby releases the Company, its employees,
      officers, directors, subsidiaries, affiliates, successors and assigns and
      the Company, its subsidiaries, affiliates, successors and assigns hereby
      release the Executive from any and all claims for relief or causes of
      action relating to any matters of any kind arising out of his employment
      (or its termination) with the Company arising prior to the date hereof.

      The Executive expressly waives all rights and remedies under Section 1542
      of the Civil Code of the State of California, which provides as follows:

      A general release does not extend to claims which the creditor does not
      know or suspect to exist in his favor at the time of executing the
      release, which if known by him must have materially affected his
      settlement with the debtor.

      The Executive understands that if the facts with respect to which this
      Agreement is executed are found hereafter to be different from the facts
      that he now believes to be true, the Executive expressly accepts and
      assumes the risk of such possible differences in facts and agrees that
      this Agreement shall be and remain effective notwithstanding such
      differences in facts.

12.   Notices. All notices, consents, waivers or demands of any kind which
      either party to this Agreement may be required or may desire to serve on
      the other party in connection with this Agreement shall be in writing and
      may be delivered by personal service or sent by telegraph or cable or sent
      by registered or certified mail, return receipt requested with postage
      thereon fully prepaid. All such communications shall be addressed as
      follows:

                  The Company:          SOLA International, Inc.
                                        10590 West Ocean Air Drive, Suite 300
                                        San Diego, California 92130
                                        Attn: Jeremy C Bishop

                  The Executive:        Barry Packham  [        ]

                                        Date           [        ]

                                       5
<PAGE>

If sent by telegraph or cable, a confirmed copy of such telegraphic or cable
notice shall be promptly sent by mail (in the manner provided above) to the
addressees. Service of any such communication made only by mail shall be deemed
complete on the date of actual delivery as shown by the addressee's registry or
certification receipt or at the expiration of the third (3rd) business day after
the date of mailing whichever is later in time. Either party hereto may from
time to time, by notice in writing served upon the other as aforesaid, designate
a different mailing address or a different person to which such notices or
demands are thereafter to be addressed or delivered. Nothing contained in this
Agreement shall excuse either party from giving oral notice to the other when
prompt notification is appropriate, but any oral notice given shall not satisfy
the requirement of written notice as provided in this paragraph.

13.   Governing Law. This Agreement shall be governed and construed and enforced
      in accordance with the laws of the State of California (regardless of that
      jurisdiction or any other jurisdictions' choice of law principles).

14.   Assignment. The Company may assign this Agreement to any affiliate of the
      Company or to any non-affiliate of the Company that shall succeed to the
      business and assets of the Company. In the event of such assignment, the
      Company shall cause such affiliate or non-affiliate as the case may be, to
      assume the obligations of the Company hereunder by written agreement
      addressed to the Executive concurrently with any assignment with the same
      effect as if such assignee were the Company hereunder. This Agreement is
      personal to the Executive and the Executive may not assign any rights or
      delegate any responsibilities hereunder without the prior approval of the
      Company.

15.   Entire Agreement. This Agreement is the entire Agreement between the
      Company and the Executive with respect to the subject matter hereof and
      cancels and supersedes any and all other agreements regarding the subject
      matter hereof between the parties. This Agreement may not be altered,
      modified, changed, or discharged except in writing signed by both of the
      parties.

16.   Severability. If any one or more of the provisions (or any part thereof)
      of this Agreement, or any application thereof to the circumstances, shall
      be held to be invalid, illegal or unenforceable in any respect the
      remaining provisions (or any part thereof) shall not in any way be
      affected or impaired thereby.

17.   Arbitration. Except as otherwise provided in Section 7(d) hereof, with
      respect to any controversy arising out of or relating to this Agreement,
      or the subject matter thereof, such controversy shall be settled by final
      and binding arbitration in San Diego, California or such other location as
      the company may determine, in accordance with the then existing rules
      ("the Rules") of the American Arbitration Association ("AAA") and judgment
      upon the award rendered by the arbitrators may be entered in any court
      having jurisdiction thereof; provided, however, that the law applicable to
      any controversy shall be the law of California, regardless of its or any
      jurisdiction's choice of law principle. Arbitration shall be the sole and
      exclusive remedy for the resolution of the disputes described above. In
      any such arbitration, the award or decision shall be rendered by a
      majority of the members of a board of arbitration consisting of three
      members, one of whom shall be appointed by each party and the third of
      whom shall be the chairman of the panel and be appointed by mutual
      agreement of said two party appointed arbitrators. In the event of the
      failure of said two arbitrators to agree, within five working days after
      the commencement of the arbitration, upon appointment of the third
      arbitrator, the third arbitrator shall be appointed by the AAA in
      accordance with the Rules. In the event that either party shall fail to
      appoint an arbitrator within five days after the commencement of the
      arbitration proceeding, such arbitrator and the third arbitrator shall be
      appointed by the AAA in accordance with the Rules. The arbitrators are
      empowered but not limited in making an award in favor of the Executive to
      require any act or acts that they believe necessary to effectuate the
      intent of this Agreement. The Company agrees that any costs of any
      arbitration borne by the Executive, including the Executive's reasonable
      attorneys' fees and expenses and the costs, fees and expenses of the
      Executive's appointed arbitrator, shall be borne by the Company to the
      extent attributable to issues on which the Executive prevails on the
      merits.

                                       6
<PAGE>

18.   Excise Tax Limitation.

         (a)      Notwithstanding anything contained in this Agreement to the
                  contrary, to the extent that the payments and benefits
                  provided under this Agreement and benefits provided to, or for
                  the benefit of, the Executive under any other Company plan or
                  agreement (such payments or benefits are collectively referred
                  to as the "Payments") would be subject to the excise tax (the
                  "Excise Tax") imposed under Section 4999 of the Internal
                  Revenue Code of 1986, as amended (the "Code"), the Payments
                  shall be reduced (but not below zero) if and to the extent
                  necessary so that no Payment to be made or benefit to be
                  provided to the Executive shall be subject to the Excise Tax
                  (such reduced amount is hereinafter referred to as the
                  "Limited Payment Amount"). Unless the Executive shall have
                  given prior written notice specifying a different order to the
                  Company to effectuate the foregoing, the Company shall reduce
                  or eliminate the Payments, by first reducing or eliminating
                  the portion of the Payments which are not payable in cash and
                  then by reducing or eliminating cash payments, in each case in
                  reverse order beginning with payments or benefits which are to
                  be paid the farthest in time from the Determination (as
                  hereinafter defined). Any notice given by the Executive
                  pursuant to the preceding sentence shall take precedence over
                  the provisions of any other plan, arrangement or agreement
                  governing the Executive's rights and entitlements to any
                  benefits or compensation.

         (b)      The determination of whether the Payments shall be reduced to
                  the Limited Payment Amount pursuant to this Agreement and the
                  amount of such Limited Payment Amount shall be made, at the
                  Company's expense, by an accounting firm selected by the
                  Executive which is one of the five largest accounting firms in
                  the United States (the "Accounting Firm"). The Accounting Firm
                  shall provide its determination (the "Determination"),
                  together with detailed supporting calculations and
                  documentation to the Company and the Executive within ten (10)
                  days of the date of termination, if applicable, or such other
                  time as requested by the Company or by the Executive (provided
                  the Executive reasonably believes that any of the Payments may
                  be subject to the Excise Tax) and if the Accounting Firm
                  determines that no Excise Tax is payable by the Executive with
                  respect to the Payments, it shall furnish the Executive and
                  the Company with an opinion reasonably acceptable to the
                  Executive that no Excise Tax will be imposed with respect to
                  any such Payments. The Determination shall be binding, final
                  and conclusive upon the Company and the Executive.

19.   Non-Waiver of Rights. The failure to enforce at any time the provisions of
      this Agreement or to require at any time performance by any other party of
      any provisions hereof shall in no way be construed to be a waiver of such
      provisions or to affect either the validity of this Agreement or any part
      hereof, or the right of any party to enforce each and every provision in
      accordance with its terms. No waiver by any party hereto of any breach by
      any other party hereto of any provision of this Agreement to be performed
      by such other party shall be deemed a waiver of similar or dissimilar
      provisions at the time or at any prior or subsequent time.

20.   Headings. The headings contained herein are solely for the purposes of
      reference, are not part of this Agreement and shall not in any way affect
      the meaning or interpretation of this Agreement.

21.   Counterparts. This Agreement may be executed in two or more counterparts,
      each of which shall be deemed to be an original but all of which together
      shall constitute one and the same instrument.

22.   THE EXECUTIVE ACKNOWLEDGES THAT HE HAS HAD THE OPPORTUNITY TO CONSULT WITH
      THE ADVISOR OF HIS CHOICE AND THAT HE HAS FREELY AND VOLUNTARILY ENTERED
      INTO THIS AGREEMENT.

                                       7
<PAGE>

IN WITNESS WHEREOF, the Company has caused this Employment Agreement to be
executed by authority of its Board of Directors, and the Executive has hereunto
set the Executive's hand, on the day and year first above written.

                                   SOLA International, Inc.:

                                   By: /s/ Jeremy C. Bishop
                                       ------------------------
                                       Name:  Jeremy C Bishop
                                       Title: President and CEO

                                   Executive:

                                   /s/ Barry Packham
                                   ----------------------------------
                                   Barry Packham

                                       8

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