Document:

Prepared by R.R. Donnelley Financial -- Employment Agreement

  
 EXHIBIT 10.63 
  
 EMPLOYMENT AGREEMENT 
  
 THIS AGREEMENT is entered into on
January        , 2001, between The E. W. Scripps Company, an Ohio corporation (the “Company”), and B. Jeff Craig (“Executive”), with an effective date of February 19, 2001 (the
“Effective Date”). 
  
 W I T N E S S E T H: 
  
 WHEREAS, the Company and Executive desire to enter into this Agreement to insure the Company of the services of Executive, to provide for compensation and other benefits to be paid and
provided by the Company to Executive in connection therewith, and to set forth the rights and duties of the parties in connection therewith; 
  
 NOW, THEREFORE, in consideration of the mutual promises herein contained, the parties hereby agree as follows: 
  
 1.  Employment. 
  
 (a)  The Company hereby employs Executive as Vice President and Chief Technology Officer of the Company, and Executive hereby accepts such employment, on the terms and conditions set forth herein, effective as of the Effective
Date. 
  
 (b)  During the term of this Agreement, Executive shall have the aforesaid title and shall
devote his entire business time and all reasonable efforts to his employment and perform diligently such duties as are customarily performed by a Vice President and Chief Technology Officer of companies the size and structure of the Company,
together with such other duties as may be reasonably required from time to time by the Board of Directors of the Company (the “Board”), which duties shall be consistent with his position as set forth above. 
  
 (c)  Executive shall not, without the prior written consent of the Company, directly or indirectly, during the term of this
Agreement, other than in the performance of duties naturally inherent to the businesses of the Company and in furtherance thereof, render services of a business, professional or commercial nature to any other person or firm, whether for compensation
or otherwise; provided, however, that so long as it does not materially interfere with his full-time employment hereunder, Executive may attend to outside investments, serve as a director, trustee or officer of, or otherwise participate in,
educational, welfare, social, religious and civic organizations, and serve as a director on the Board of Directors of each of Kobalt Interactive, Inc., BTI Video, Inc., and Aspen Capital Partners, LLC. Executive may also render services to any other
business entity or organization as may be approved by the executive officer of the Company to whom Executive reports or as approved by the President or the Chief Executive Officer of the Company. 
  

2.  Term and Positions. 
 

 E-3 

 (a)  The term of this Agreement shall begin on the Effective Date and shall continue for the current
calendar year and for the succeeding two calendar years (the “Term”). The Company shall provide the Executive with at least sixty (60) days prior written notice in the event that the Company does not intend to renew this Agreement for an
additional term or does not intend to continue to employ the Executive on an at-will basis upon the expiration of the Term. In the event that the Company does not provide Executive with such notice at least sixty (60) days prior to the expiration of
the Term or the parties do not renew this Agreement for an additional term or enter into a new employment agreement upon the expiration of the Term, the parties agree that Executive shall continue to be employed by the Company on an at-will basis in
accordance with the terms and conditions contained in Sections 1 and 3 of this Agreement; provided, however, that neither Executive nor Company may terminate such employment relationship without giving the other party at least thirty (30) days prior
written notice of such termination. 
  
 (b)  Executive shall report to the Board of the Company
and the Executive Vice President of the Company. 
 

 E-4 

 3.  Compensation. 
  
 (a)  Annual Salary.    For all services he may render to the Company during the term of this Agreement, the Company shall pay to
Executive an annual salary of two hundred fifty thousand dollars ($250,000), payable in those installments customarily used in payment of salaries to the Company’s corporate level executives (but in no event less frequently than monthly).
During the term of this Agreement, Executive’s annual salary shall be subject to the Company’s salary review policies and may be increased pursuant thereto in the Company’s discretion; provided, however, that Executive’s annual
salary may not be decreased at any time during the Term. 
  
 (b)  Incentive
Bonus.    For calendar year 2001, Executive shall be eligible for a target bonus equal to 30% of his annual salary under Paragraph 3(a) hereof based on his attainment of the performance objectives established for such year by
the Company. For each of calendar years 2002 and 2003, Executive shall be entitled to participate in any bonus program in which other corporate level executives of the Company participate during such years in accordance with such performance
objectives and target bonuses as are established by the Company. 
  
 (c)  Benefits.    Executive shall be entitled, subject to the terms and conditions of the appropriate plans, to all benefits provided to corporate level executives in accordance with the Company’s
policies from time to time in effect. 
  
 (d)  Business Expenses.    Upon
delivery of proper documentation therefor, Executive shall be reimbursed for all travel, hotel and other business expenses when incurred on Company business. 
  
 (e)  Vacation.    During the term of this Agreement, Executive shall be entitled to four (4) weeks of paid vacation per calendar
year. 
  
 (f)  Luncheon Club.    During the term of this Agreement, the
Company shall provide Executive with privileges at a luncheon club in Cincinnati, Ohio in accordance with the Company’s policies in effect from time to time. The initiation fee and periodic dues required by such Club shall be paid by the
Company or the Company shall reimburse Executive therefor if such fee or dues are paid by the Executive. 
  
 4.  Stay Bonus.    On each of December 31, 2001, 2002 and 2003, the Company will pay a stay bonus to Executive equal to $115,000. Notwithstanding the foregoing, entitlement to such stay bonus shall cease
upon the effective date of the termination of this Agreement for any reason. 
 

 E-5 

 5.  Relocation Assistance.    The Company will provide relocation assistance to
Executive in accordance with its policies for corporate level executives to enable Executive and his family to move to the Cincinnati, Ohio area. 
  
 6.  Termination 
  
 (a)  The employment of Executive under this Agreement and the term of this Agreement: 
  
 (i)  shall be terminated automatically upon the death or permanent disability of Executive, or 
  
 (ii)  may be terminated for Cause at any time by the Company, with any such termination not being in limitation of any other right or remedy the Company may have under this Agreement or otherwise (for purposes of this Agreement,
the term “Cause” meaning: 
  
 (A)  Executive’s conviction of a felony or commission of
a fraudulent act or series of fraudulent acts, which in any case results in material injury to the business or reputation of the Company, or Executive’s willful failure to perform his duties under this Agreement, which failure has not been
cured in all material respects within twenty (20) days after the Company gives notice thereof to Executive; or 
  
 (B)  Executive’s material breach of any provision of this Agreement, which breach has not been cured in all material respects within twenty (20) days after the Company gives notice thereof to Executive). 

 
 (iii)  may be terminated for Good Reason by the Executive by giving written notice to the Company, which such
notice shall become effective on the date twenty (20) days after the date the Company receives such written notice, provided that the Company has failed to cure the Good Reason specified in the notice (for purposes of this Agreement, the term
“Good Reason” meaning: 
  
 (A)  a material failure by the Company to perform its obligations
under this Agreement; 
  
 (B)  a material change in the Executive’s title or a material reduction
in duties or responsibilities which have not been agreed to by Executive; 
  
 (C)  a material
reduction in the level of the executive (not the individual executive) to whom Executive reports; 
  
 (D)  relocation or reassignment of Executive, without Executive’s consent, to work in a Company location outside of the Cincinnati, Ohio metropolitan area; or 
  
 (E)  a Change in Control of the Company (as defined in the Company’s 1997 Long-Term Incentive Plan (the “Plan”))). 
 

 E-6 

  
 (iv)  shall terminate automatically at 11:59 p.m. on December 31,
2003. Except as provided in Section 2(a) concerning the continued employment of Executive as an at-will employee upon the expiration of the Term, upon any such termination, Executive shall be deemed automatically to have resigned from all offices
held by Executive in the Company. 
  
 (b)  If Executive’s employment with the Company is
terminated by the Company without Cause or if Executive terminates this Agreement for Good Reason, the Company shall pay to Executive within thirty (30) days of such termination a lump sum in cash equal to his then-current annual salary and all
obligations of Executive to make payments to the Company pursuant to the terms of that certain Promissory Note, to be dated as of the Effective Date and in the form attached as Exhibit A hereto (the “Promissory Note”), by and
between Executive, as maker, and the Company, as payee, shall be deemed forgiven by the Company, except as otherwise provided therein. 
  
 (c)  In the event of termination due to the death or permanent disability of Executive or termination of this Agreement by the Company for Cause, Executive shall be entitled to no further compensation
or other payments or benefits under this Agreement, except as to that portion of any unpaid salary earned under paragraph 3(a), any prorated bonus earned under Paragraph 3(b) as determined by the Board, or any other benefits accrued and earned by
him hereunder, in each case up to and including the effective date of such termination. In addition to the foregoing, in the event of termination due to the death or the permanent disability of Executive, all obligations of Executive to make
payments to the Company pursuant to the terms of the Promissory Note shall be deemed forgiven by the Company, except as otherwise provided therein. 
  
 (d)  For purposes of this Agreement, Executive’s “permanent disability” shall be deemed to have occurred after one hundred fifty (150) days in
the aggregate during any consecutive twelve (12) month period, or after ninety (90) consecutive days, during which one hundred fifty (150) or ninety (90) days, as the case may be, Executive, by reason of his physical or mental disability or illness,
shall have been unable to discharge his duties under this Agreement. The date of permanent disability shall be such one hundred fiftieth (150th) or ninetieth (90th) day, as the case may be. If the Company or Executive, after receipt of
notice of Executive’s permanent disability from the other, dispute that Executive’s permanent disability shall have occurred, Executive shall promptly submit to a physical examination by the chief of medicine of any major accredited
hospital in the Cincinnati, Ohio, area selected by the Company and, unless such physician shall issue his written statement to the effect that in his or her opinion, based on his or her diagnosis, Executive is capable of resuming his employment and
devoting his full time and energy to discharging his duties within thirty (30) days after the date of such statement, such permanent disability shall be deemed to have occurred. 
  
 (e)  The Company warrants that, if at the time Executive is terminated without Cause or Executive terminates this Agreement for Good Reason, the Company has a
standard corporate severance practice in effect that would result in Executive receiving a greater sum than the sum provided for by the terms of this Agreement, Executive will receive such greater sum in lieu of such other sum. 
 

 E-7 

 7.  Certain Covenants  
  
 (a)  Executive acknowledges the Company’s reliance on and expectation of Executive’s continued commitment to performance of his duties and
responsibilities during the term of this Agreement. In light of such reliance and expectation on the part of the Company, during the term of this Agreement and for nine (9) months (for one (1) year in the case of Sections 7(a) (ii) and (iii) below)
after termination of this Agreement by Executive without Good Reason or termination of this Agreement by the Company for Cause, Executive shall not, directly or indirectly, do or suffer any of the following: 
  
 (i)  Own, manage, control or participate in the ownership, management, or control of, or be employed or engaged by or
otherwise affiliated or associated as a consultant, independent contractor or otherwise with, any other corporation, partnership, proprietorship, firm, association or other business entity that is a newspaper publisher with a broadcast station group
or a cable network group in home, garden, do-it-yourself, food and other categories as may be developed and implemented by the Company during the Term of this Agreement; provided, however, that the ownership of not more than one percent (1%) of any
class of publicly traded securities of any entity shall not be deemed a violation of this covenant; 
  
 (ii)  Solicit the employment of, assist in soliciting the employment of, or otherwise solicit the association in business with any person or entity of, any employee or officer of the Company or any affiliate thereof; or

  
 (iii)  Induce any person who is an employee, officer or agent of the Company or any affiliate
thereof to terminate said relationship. 
 

 E-8 

 (b)  Executive expressly agrees and understands that the remedy at law for any breach by him of this
Paragraph 7 may be inadequate and that the damages flowing from such breach are not readily susceptible to being measured in monetary terms. Accordingly, it is acknowledged that, upon adequate proof of Executive’s violation of any provision of
this Paragraph 7, the Company shall be entitled to immediate injunctive relief and may obtain a temporary order restraining any threatened or further breach and may withhold any amounts owed to Executive pursuant to this Agreement. Nothing in this
Paragraph 7 shall be deemed to limit the Company’s remedies at law or in equity for any breach by Executive of any of the provisions of this Paragraph 7 which may be pursued or availed by the Company. 
  
 (c)  In the event Executive shall violate any legally enforceable provision of this Paragraph 7 as to which there is a
specific time period during which he is prohibited from taking certain actions or from engaging in certain activities, as set forth in such provision, then, in such event, such violation shall toll the running of such time period from the date of
such violation until such violation shall cease. 
  
 (d)  Executive has carefully considered the nature
and extent of the restrictions upon him and the rights and remedies conferred upon the Company under this Paragraph 7, and hereby acknowledges and agrees that the same are reasonable in time and territory, are designed to eliminate competition which
otherwise would be unfair to the Company, do not stifle the inherent skill and experience of Executive, would not operate as a bar to Executive’s sole means of support, are fully required to protect the legitimate interests of the Company and
do not confer a benefit upon the Company disproportionate to the detriment to Executive. 
  
 (e)  All
copyrightable material originated and developed by Executive pursuant to this Agreement (the “Works”) shall constitute “works made for hire” for the Company, as that phrase is defined in Sections 101 and 201 of the
Copyright Act of 1976 (Title 17, United States Code), and the Company shall be considered the author and shall be the copyright owner of all such Works. Executive shall execute such documents and do such other acts as may be reasonably necessary to
further evidence or effectuate the Company’s rights in and to the Works. If any of the Works do not qualify for treatment as a “work made for hire” or if Executive retains any interest in any components of the Works for any other
reason, Executive 
 

 E-9 

 hereby grants, assigns and transfers to the Company all worldwide right, title, and interest in and to the Works, including, but not
limited to, all United States and international copyrights and all other intellectual property rights in the Works, and all subsidiary rights therein, free and clear of any and all claims for royalties or other compensation except as stated in this
Agreement. 
  
 (f)  If (i) the Executive’s employment or this Agreement is terminated by the
Company without Cause, (ii) this Agreement is terminated by Executive for Good Reason, or (iii) Executive works for the Company through and until the end of the Term and this Agreement expires in accordance with its terms, the Company agrees that
the Executive will be relieved from the covenant not to compete as set forth in this Section 7(a)(i). 
  
 8.  Stock and Options.    The Company shall grant to Executive, effective as soon as practicable following the Effective Date but no later than March 31, 2001, an award of 1,500 restricted Class A Common
Shares of the Company (the “Class A Shares”) and a non-qualified option for 10,000 Class A Shares. The Company shall also grant to Executive, effective no later than March 31, 2001, an additional non-qualified option for 3,000 Class A
Shares. The restricted stock award will vest on December 31, 2003, if Executive is employed by the Company on such date. The options will vest in three equal installments on each of the first two anniversaries of their respective grant dates and on
December 31, 2003, so long as Executive is an employee of the Company on each vesting date. Such award and options shall be issued pursuant to, and have such other terms and conditions as are customarily provided under, the Plan. 

  
 9.  Withholding Taxes.    All payments to Executive hereunder shall be
subject to withholding on account of federal, state and local taxes as required by law. 
  
 10.  No
Conflicting Agreements.    Executive represents and warrants that, as of the Effective Date, he will not be a party to any agreement, contract or understanding, whether employment or otherwise, which would restrict or
prohibit him from undertaking or performing employment in accordance with the terms and conditions of this Agreement. 
  
 11.  Severable Provisions.    The provisions of this Agreement are severable and if any one or more provisions may be determined to be illegal or otherwise unenforceable, in whole or in part, the
remaining provisions and any partially unenforceable provision to the extent enforceable in any jurisdiction nevertheless shall be binding and enforceable. 
  
 12.  Binding Agreement.    The rights and obligations of the Company under this Agreement shall inure to the benefit of, and shall
be binding on, the Company and its successors and assigns, and the rights and obligations (other than obligations to perform 
 

 E-10 

 services) of Executive under this Agreement shall inure to the benefit of, and shall be binding upon, Executive and his heirs, personal
representatives and successors and assigns. 
  
 13.  Arbitration.    Any
controversy or claim arising out of or relating to this Agreement, or the breach thereof, shall be settled by arbitration in accordance with the Rules of the American Arbitration Association then pertaining in the City of Cincinnati, Ohio, and
judgment upon the award rendered by the arbitrator or arbitrators may be entered in any court having jurisdiction thereof. The arbitrator or arbitrators shall be deemed to possess the powers to issue mandatory orders and restraining orders in
connection with such arbitration; provided, however, that nothing in this Paragraph 13 shall be construed so as to deny the Company the right and power to seek and obtain injunctive relief in a court of equity for any breach or threatened breach by
Executive of any of his covenants contained in Paragraph 7 hereof. The parties shall share equally the fees and other expenses of the arbitrator(s). 
  
 14.  Notices.    Notices and other communications hereunder shall be in writing and shall be deemed to have been duly given when
sent by certified mail, postage prepaid, addressed to the intended recipient at the address set forth below, or at such other address as such intended recipient hereafter may have designated most recently to the other party hereto with specific
reference to this Paragraph 14. 
  
 
	 If to the Company:
 	    	 The E. W. Scripps Company
 28th Floor
 312 Walnut Street
 Cincinnati, Ohio
45202
 Attn: Gregory Ebel, Vice President/Human Resources
 
	  	    	  

 
 
	 with a copy to:
 	    	 William Appleton, Esq
 Baker
& Hostetler LLP
 312 Walnut Street, Suite 2650
 Cincinnati, Ohio 45202
 
	  	    	  

 
 
	 If to Executive:
 	    	 B. Jeff Craig
 28th Floor
 312 Walnut Street
 Cincinnati, Ohio 45202
 
	  	    	  

 
 
	 with a copy to:
 	    	 Andrew M. Friedman, Esq.
 McDermott, Will & Emery
 600 13th Street, N.W.
 Washington, D.C.
20005
 

 
  
 15.  Waiver.    The
failure of either party to enforce any provision of this Agreement shall not in any way be construed as a waiver of any such provision as to any future violations thereof, nor prevent that party thereafter from enforcing each and every other
provision of this Agreement. The rights granted the parties herein are cumulative and the waiver of any single remedy shall not constitute a waiver of such party’s right to assert all other legal remedies available to it under the
circumstances. 
  
 16.  Miscellaneous.    This Agreement supersedes all
prior agreements and understandings between the parties and may not be modified or terminated orally. All obligations and liabilities of each party hereto in favor of the other party hereto relating to 
 

 E-11 

 matters arising prior to the date hereof have been fully satisfied, paid and discharge. No modification, termination or attempted
waiver shall be valid unless in writing and signed by the party against whom the same is sought to be enforced. 
  
 17.  Governing Law.    This Agreement shall be governed by and construed according to the laws of the State of Ohio. 
  
 18.  Captions and Paragraph Headings.    Captions and paragraph headings used herein are for convenience and are not a part of this
Agreement and shall not be used in construing it. 
  
 IN WITNESS WHEREOF, the parties have executed this Agreement on the day and
year first set forth above. 
  
 
	 THE E. W. SCRIPPS COMPANY
 
	 
	 By:
 	 	 /s/    
 

	 Name:
 	 	  
	  
 Its:
  
 	 	  
	  	 	 

	  	 	 B. Jeff Craig
 

 
 

 E-12<PAGE>

                                                                   EXHIBIT 10.10

                 THE WARRANTS EVIDENCED HEREBY, AND THE SHARES
               OF CLASS A COMMON STOCK ISSUABLE UPON EXERCISE OF
                 SUCH WARRANTS, HAVE NOT BEEN REGISTERED UNDER
            THE SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE
                     TRANSFERRED IN VIOLATION OF SUCH ACT.

                              WARRANT CERTIFICATE

                               149,688 Warrants

              To Subscribe for and Purchase Class A Common Stock,
                              $.001 Par Value, of

                       SUPER VISION INTERNATIONAL, INC.

     THIS CERTIFIES that, for value received, HAYWARD INDUSTRIES, INC., or its
registered successors or assigns, is the owner of 149,688 Warrants, each of
which entitles the owner thereof to purchase, from SUPER VISION INTERNATIONAL,
INC., a Delaware corporation (hereinafter referred to as the "Corporation"),
from time to time during the period from February 13, 2002 hereinafter referred
to as the "Issuance Date") through 5:00 P.M., New York time, on September 25,
2006, one fully paid and nonassessable share of Class A Common Stock (as
hereinafter defined), as such stock is constituted on the Issuance Date, subject
to adjustment from time to time pursuant to the provisions hereinafter set
forth, at the initial price of $8.02 (hereinafter referred to as the "Exercise
Price"), subject further to the conditions hereinafter set forth.

     This Warrant Certificate is subject to the following provisions, terms and
conditions:

     1.   The Warrants evidenced hereby may be exercised by the registered
holder hereof, in whole or in part, by the surrender of this Warrant
Certificate, duly endorsed (unless endorsement is waived by the Corporation), at
the principal executive office of the Corporation, 8210 Presidents Drive,
Orlando, Florida 32809 and upon payment to it by certified or official bank
check or checks of the purchase price of the shares of Class A Common Stock
purchased. The Corporation agrees that the shares of Class A Common Stock so
purchased shall be deemed to be issued to the registered holder hereof on the
date on which this Warrant Certificate shall have been surrendered and payment
made for such shares as aforesaid. The certificates for such shares shall be
delivered to the registered holder hereof within a reasonable time, not
exceeding ten business days, after Warrants evidenced hereby shall have been
exercised, and a new Warrant Certificate evidencing the number of the Warrants,
if any, remaining unexercised shall also be issued to the registered holder
within

                                       1
<PAGE>

such time unless such Warrants have expired. No fractional shares of capital
stock of the Corporation, or scrip for any such fractional shares, shall be
issued upon the exercise of any Warrants.

     2.   The number and kind of shares of Class A Common Stock of the
Corporation subject to each Warrant evidenced hereby, and the Exercise Price,
shall be subject to adjustment as follows:

          (a) Upon each adjustment of the Exercise Price as provided herein, the
holder of the Warrants evidenced hereby shall thereafter be entitled to
purchase, at the Exercise Price resulting from such adjustment, the number of
shares of Class A Common Stock (calculated to the nearest tenth of a share)
obtained by multiplying the Exercise Price in effect immediately prior to such
adjustment by the number of shares purchasable pursuant hereto immediately prior
to such adjustment and dividing the product thereof by the Exercise Price
resulting from such adjustment.

          (b) No fractional shares of Class A Common Stock or scrip shall be
issued upon exercise of the Warrants evidenced hereby. Instead of any fractional
shares of Class A Common Stock which would otherwise be issuable upon exercise
of the Warrants evidenced hereby (or portion hereof), the Corporation shall pay
a cash adjustment in respect of such fractional share of Class A Common Stock in
an amount equal to the same fraction of the then current fair value of a share
of Class A Common Stock, as determined in good faith by the Board of Directors
of the Corporation.

          (c) In case the Corporation shall at any time subdivide its
outstanding shares of Class A Common Stock into a greater number of shares of
Class A Common Stock, the Exercise Price in effect immediately prior to such
subdivision shall be proportionately reduced, and conversely, in case the
outstanding shares of Class A Common Stock of the Corporation shall be combined
into a smaller number of shares of Class A Common Stock, the Exercise Price in
effect immediately prior to such combination shall be proportionately increased.

          (d) If and whenever after the Issuance Date the Corporation shall
issue or sell any shares of its Class A Common Stock for a consideration per
share less than the Market Price (as hereinafter defined) in effect immediately
prior to the time of such issue or sale, or without consideration, then,
forthwith upon each such issue or sale, the Exercise Price shall be reduced (but
not increased) to the price (calculated to the nearest cent) equal to the
quotient obtained by dividing (i) the amount equal to the sum of (a) the number
of shares of Class A Common Stock outstanding immediately prior to such issue or
sale multiplied by the then existing Exercise Price, and (b) the consideration,
if any, received by the Corporation upon such issue or sale by (ii)

                                       2
<PAGE>

the total number of shares of Class A Common Stock outstanding immediately after
such issue or sale. "Market Price" for purposes hereof shall mean (i) the
average closing sale price for 30 consecutive business days (or such other
period as the holder hereof may consent to), ending within 15 days of the date
of the subject event, of the Class A Common Stock as reported by the Nasdaq
National Market System, if the Class A Common Stock is so reported, or (ii) if
not so reported, the average last reported sale price for 30 consecutive
business days (or such other period as the holder hereof may consent to), ending
within 15 days of the date of the subject event, of the Class A Common Stock on
the primary exchange on which the Class A Common Stock is traded, if the Class A
Common Stock is traded on a national securities exchange, or (iii) if not so
reported or traded, the average of the last reported bid and asked prices of the
Class A Common Stock for 30 consecutive business days (or such other period as
the holder hereof may consent to), ending within 15 days of the date of the
subject event, of the Class A Common Stock, as reported by the Nasdaq SmallCap
Market or other automated quotation system of a registered national securities
association, or (iv) if not so reported or traded, as determined by the Board of
Directors of the Corporation in its reasonable discretion. Any average
calculated as aforesaid shall be proportionately adjusted for any stock split,
stock dividend, combination or reclassification that took effect during the
relevant period. No adjustment of the Exercise Price, however, shall be made in
an amount less than $.001 per share, but any such lesser adjustment shall be
carried forward and shall be made at the time and together with the next
subsequent adjustment which together with any adjustments so carried forward
shall amount to $.001 per share or more. In addition, the provisions of this
Paragraph (d) shall not apply upon: (w) issuance by the Corporation of shares of
Class A Common Stock upon the exercise of the Warrants issued to Hayward
Industries, Inc., (x) issuance by the Corporation of Class A Common Stock upon
the exercise of Eligible Warrants (as hereinafter defined), (y) issuance by the
Corporation of stock options, or the issuance by the Corporation of shares upon
the exercise of such stock options, under any employee stock option plan
approved by the stockholders of the Corporation now or hereafter in effect, as
any such plan may be amended from time to time, or (z) issuance by the
Corporation of shares for cash pursuant to an underwritten public offering
registered under the Act (as hereinafter defined). "Eligible Warrants" for
purposes hereof shall mean any and all warrants, options or other rights to
acquire shares of Class A Common Stock from the Corporation, or any securities
convertible into or exchangeable for Class A Common Stock, in each case
outstanding as of September 25, 1996 (the "Original Issuance Date") or issuable
directly or indirectly pursuant to warrants, options or other rights outstanding
as of the Original Issuance Date. For purposes of this Paragraph (d) the
following additional sub-paragraphs shall apply:

                                       3
<PAGE>

          (i)  Issuance of Rights or Options. In case at any time the
               -----------------------------
     Corporation shall in any manner grant (whether directly or by assumption in
     a merger or otherwise) any rights to subscribe for or to purchase, or any
     options for the purchase of, Class A Common Stock or any stock or
     securities convertible into or exchangeable for Class A Common Stock (such
     rights or options being herein called "Options" and such convertible or
     exchangeable stock or securities being herein called "Convertible
     Securities") whether or not such Options or the right to convert or
     exchange any such Convertible Securities are immediately exercisable, and
     the price per share for which Class A Common Stock is issuable upon the
     exercise of such Options or upon the conversion or exchange of such
     Convertible Securities (determined by dividing (i) the total amount, if
     any, received or receivable by the Corporation as consideration for the
     granting of such Options, plus the aggregate amount of additional
     consideration payable to the Corporation upon the exercise of all such
     Options, plus, in the case of such Options which relate to Convertible
     Securities, the aggregate amount of additional consideration, if any,
     payable upon the issue or sale of such Convertible Securities and upon the
     conversion or exchange thereof, by (ii) the total maximum number of shares
     of Class A Common Stock issuable upon the exercise of such options or upon
     the conversion or exchange of all such Convertible Securities issuable upon
     the exercise of such Options) shall be less than the Market Price in effect
     immediately prior to the time of the granting of such Options, then the
     total maximum number of shares of Class A Common Stock issuable upon the
     exercise of such Options or upon conversion or exchange of the total
     maximum amount of such Convertible Securities issuable upon the exercise of
     such Options shall be deemed to have been issued for such price per share
     as of the date of granting of such Options and thereafter shall be deemed
     to be outstanding. Except as otherwise provided in Sub-Paragraph (iii) of
     this Paragraph (d), no adjustment of the Exercise Price shall be made upon
     the actual issue of such Class A Common Stock or of such Convertible
     Securities upon exercise of such Options or upon the actual issue of such
     Class A Common Stock upon conversion or exchange of such Convertible
     Securities.

          (ii) Issuance of Convertible Securities. In case the Corporation shall
               ----------------------------------
     in any manner issue (whether directly or by assumption in a merger or
     otherwise) or sell any Convertible Securities, whether or not the rights to
     exchange or convert any such Convertible Securities are immediately
     exercisable, and the price per share for which Class A Common Stock is
     issuable upon such conversion or exchange (determined by dividing (i) the
     total amount received or receivable by the Corporation as consideration for
     the issue or sale of such Convertible Securities, plus the aggregate amount
     of additional consideration, if any, payable to the Corporation

                                       4
<PAGE>

     upon the conversion or exchange thereof, by (ii) the total maximum number
     of shares of Class A Common Stock issuable upon the conversion or exchange
     of all such Convertible Securities) shall be less than the Market Price in
     effect immediately prior to the time of such issue or sale, then the total
     maximum number of shares of Class A Common Stock issuable upon conversion
     or exchange of all such Convertible Securities shall be deemed to have been
     issued for such price per shares of the date of the issue or sale of such
     Convertible Securities and thereafter shall be deemed to be outstanding,
     provided that (x) except as otherwise provided in Sub-Paragraph (iii) of
     this Paragraph (d), no adjustment of the Exercise Price shall be made upon
     the actual issue of such Class A Common Stock upon conversion or exchange
     of such Convertible Securities, and (y) if any such issue or sale of such
     Convertible Securities is made upon exercises of any Options to purchase
     any such Convertible Securities for which adjustments of the Exercise Price
     have been or are to be made pursuant to other provisions of this Sub-
     Paragraph (ii), no further adjustment of the Exercise Price shall be made
     by reason of such issue or sale.

          (iii) Change in Option Price or Exercise Rate. Upon the happening of
                ---------------------------------------
     any of the following events, namely, if the purchase price provided for in
     any Option referred to in Sub-Paragraph (i) of this Paragraph (d), the
     additional consideration, if any, payable upon the conversion or exchange
     of any Convertible Securities referred to in Sub-Paragraphs (i) or (ii) of
     this Paragraph (d), or the rate at which any Convertible Securities
     referred to in Sub-Paragraphs (i) or (ii) of this Paragraph (d) are
     convertible into or exchangeable for Class A Common Stock shall change at
     any time (other than under or by reason of provisions designed to protect
     against dilution), the Exercise Price in effect at the time of such event
     shall forthwith be readjusted to the Exercise Price which would have been
     in effect at such time had such Options or Convertible Securities still
     outstanding provided for such changed purchase price, additional
     consideration or conversion rate, as the case may be, at the time initially
     granted, issued or sold; and on the expiration of any such Option or the
     termination of any such right to convert or exchange such Convertible
     Securities, the Exercise Price then in effect hereunder shall forthwith be
     increased to the Exercise Price which would have been in effect at the time
     of such expiration or termination had such Option or Convertible
     Securities, to the extent outstanding immediately prior to such expiration
     or termination, never been issued, and the Class A Common Stock issuable
     thereunder shall no longer be deemed to be outstanding. If the purchase
     price provided for in any such Option referred to in Sub-Paragraph (i) of
     this Paragraph (d) or the rate at which any Convertible Securities referred
     to in Sub-Paragraphs (i) or (ii) of this Paragraph

                                       5
<PAGE>

     (d) are convertible into or exchangeable for Class A Common Stock shall be
     reduced at any time under or by reason of provisions with respect thereto
     designed to protect against dilution, then, in case of the delivery of
     Class A Common Stock upon the exercise of any such Option or upon
     conversion or exchange of any such Convertible Securities, the Exercise
     Price then in effect hereunder shall forthwith be adjusted to such
     respective amount as would have been obtained had such Option or
     Convertible Securities never been issued as to such Class A Common Stock
     and had adjustments been made upon the issuance of the shares of Class A
     Common Stock delivered as aforesaid, but only if as a result of such
     adjustment the Exercise Price then in effect hereunder is thereby reduced.

          (iv) Stock Dividends. In case the Corporation shall declare a dividend
               ---------------
     or make any other distribution upon any stock of the Corporation payable in
     Class A Common Stock, Options or Convertible Securities, any Class A Common
     Stock, Options or Convertible Securities, as the case may be, issuable in
     payment of such dividend or distribution shall be deemed to have been
     issued in a subdivision of outstanding shares as provided in Paragraph (c)
     immediately preceding.

          (v)  Consideration for Stock. In case any shares of Class A Common
               -----------------------
     Stock, Options or Convertible Securities shall be issued or sold for cash,
     the consideration received therefor shall be deemed to be the amount
     received by the Corporation therefor, without deduction therefrom of any
     expenses incurred or any underwriting commissions or concessions paid or
     allowed by the Corporation in connection therewith. In case any shares of
     Class A Common Stock, Options or Convertible Securities shall be issued or
     sold for a consideration other than cash, the amount of the consideration
     other than cash received by the Corporation shall be deemed to be the fair
     value of such consideration as determined in good faith by the Board of
     Directors of the Corporation, without deduction of any expenses incurred or
     any underwriting commissions or concessions paid or allowed by the
     Corporation in connection therewith. In case any Options shall be issued in
     connection with the issue and sale of other securities of the Corporation,
     together comprising one integral transaction in which no specific
     consideration is allocated to such Options by the parties thereto, such
     Options shall be deemed to have been issued without consideration.

          (vi) Record Date. In case the Corporation shall take a record of the
               -----------
     holders of its Class A Common Stock for the purpose of entitling them (i)
     to receive a dividend or other distribution payable in Class A Common
     Stock, Options or Convertible Securities, or (ii) to subscribe for or
     purchase Class A Common Stock, Options or Convertible Securities, then such
     record date shall be deemed to be the date of the issue

                                       6
<PAGE>

     or sale of the shares of Class A Common Stock deemed to have been issued or
     sold upon the declaration of such dividend or the making of such other
     distribution or the date of the granting of such right of subscription or
     purchase, as the case may be.

          (vii) Treasury Shares. The number of shares of Class A Common Stock
                ---------------
     outstanding at any given time shall not include shares owned or held by or
     for the account of the Corporation, and the disposition of any such shares
     shall be considered an issue or sale of Class A Common Stock for the
     purposes of this Paragraph (d).

          (e)   No adjustment in the number of shares of Class A Common Stock
issuable upon exercise of the Warrants evidenced hereby shall be required unless
such adjustment would require an increase or decrease of at least two percent in
the number of shares of Class A Common Stock at the time issuable upon exercise
of the Warrants evidenced hereby; provided, however, that any adjustments which
by reason of this clause (e) are not required to be made shall be carried
forward and taken into account in any subsequent adjustment. Except as otherwise
set forth herein, all computations made pursuant to the provisions of this
paragraph 2 shall be made to the nearest cent or to the nearest one hundredth of
a share, as the case may be.

          (f)   For purposes of this Warrant Certificate, the term "Class A
Common Stock" shall mean shares of the class A common stock, $.001 par value, of
the Corporation, and shall also include any shares of capital stock of any class
of the Corporation hereinafter authorized which shall not be limited to a fixed
sum or percentage in respect of the rights of the holders thereof to participate
in dividends and in the distribution of assets upon the voluntary liquidation,
dissolution or winding-up of the Corporation; provided, however, that the shares
of Class A Common Stock receivable upon exercise of the Warrants evidenced
hereby shall include only shares of Class A Common Stock as constituted on the
Issuance Date including any stock into which it may be changed, reclassified or
converted.

     3.   If any consolidation or merger of the Corporation with another
corporation after the Issuance Date, or the sale of all or substantially all of
its assets to another corporation shall be effected after the Issuance Date or
in case of any capital reorganization or reclassification of the capital stock
of the Corporation, then, as a condition of such consolidation, merger or sale,
reorganization or reclassification, lawful and adequate provision shall be made
whereby the holder of this Warrant Certificate shall thereafter have the right
to purchase and receive upon the basis and upon the terms and conditions
specified herein and in lieu of the shares of Class A Common Stock immediately
theretofore purchasable and receivable upon the exercise of each Warrant
evidenced hereby, such shares of stock,

                                       7
<PAGE>

securities or assets as may be issuable or payable with respect to or in
exchange for a number of outstanding shares of Class A Common Stock of the
Corporation equal to the number of shares of Class A Common Stock immediately
theretofore purchasable and receivable upon the exercise of one Warrant
evidenced hereby had such consolidation, merger, sale, reorganization, or
reclassification not taken place, and in any such case appropriate provision
shall be made with respect to the rights and interest of the registered holder
of this Warrant Certificate to the end that the provisions hereof (including
without limitation provisions for adjustment of the Exercise Price) shall
thereafter be applicable, as nearly as may be, in relation of any shares of
stock, securities or assets thereafter deliverable upon the exercise of the
Warrants evidenced hereby.

     4.   Upon any adjustment of the Exercise Price or the number of shares of
Class A Common Stock subject to the Warrants evidenced hereby, then and in each
such case the Corporation shall give written notice thereof, by first class
mail, postage prepaid, to the holder hereof, which notice shall state the
Exercise Price and/or the number of shares of Class A Common Stock subject to
the Warrants evidenced hereby resulting from such adjustment, setting forth in
reasonable detail the method of calculation and the facts upon which such
calculation is based.

     5.   In case at any time:

          (a) the Corporation shall declare any dividend upon its shares of
     Class A Common Stock payable in stock or make any special dividend or other
     distribution (other than a cash dividend to the holders of its shares of
     Class A Common Stock);

          (b) the Corporation shall offer for subscription pro rata to the
     holders of its shares of Class A Common Stock any additional shares of
     stock of any class or other rights;

          (c) there shall be any capital reorganization or reclassification of
     the capital stock of the Corporation, or consolidation or merger of the
     Corporation with, or sale of all or substantially all its assets to,
     another corporation; or

          (d) there shall be a voluntary or involuntary dissolution, liquidation
     or winding-up of the Corporation;

then, in any one or more of said cases, the Corporation shall give written
notice, by first class mail, postage prepaid, to the holder hereof, of the date
on which (i) the books of the Corporation shall close or a record shall be taken
for such dividend, distribution or subscription rights, or (ii) such
reorganization, reclassification, consolidation, merger, sale, dissolution,
liquidation or winding-up shall take place, as the

                                       8
<PAGE>

case may be. Such notice shall also specify the date as of which the holders of
shares of Class A Common Stock of record shall participate in such dividend,
distribution or subscription rights or shall be entitled to exchange their
shares of Class A Common Stock for securities or other property deliverable upon
such reorganization, reclassification, consolidation, merger, sale, dissolution,
liquidation, or winding-up, as the case may be. Such written notice shall be
given at least 30 days prior to the action in question and not less than 30 days
prior to the record date or the date on which the Corporation's transfer books
are closed in respect thereto.

     6.   The Corporation shall at all times reserve and keep available out of
its authorized shares of Class A Common Stock, solely for the purpose of its
issue upon the exercise of the Warrants evidenced hereby as herein provided,
such number of shares of Class A Common Stock as shall then be issuable upon the
exercise of the Warrants evidenced hereby.

     7.   The issuance of certificates of shares for Class A Common Stock upon
the exercise of the Warrants evidenced hereby shall be made without charge to
the holders of such Warrants for any issuance tax in respect thereto; provided,
however, that the Corporation shall not be required to pay any tax which may be
payable in respect of any transfer involved in the issuance and delivery of any
certificate in a name other than that of the holder of the Warrants evidenced
hereby.

     8.   The Corporation will at no time close its transfer books against the
transfer of any Class A Common Stock issued or issuable upon the exercise of the
Warrants evidenced hereby in any manner which interferes with the timely
exercise of such Warrants.

     9.   The shares of Class A Common Stock issuable hereunder shall be subject
to the registration rights set forth in the Registration Rights Agreement dated
September 25, 1996, as amended September 23, 1997 and March 9, 1999, between the
Corporation and Hayward Industries, Inc. to the same extent as if the provisions
of said Agreement were reproduced in their entirety in this Warrant Certificate.

     10.  The person in whose name this Warrant Certificate is registered shall
be deemed the owner hereof and of the Warrant evidenced hereby for all purposes.
The registered holder of this Warrant Certificate shall not be entitled to any
rights whatsoever as a stockholder of the Corporation except as herein provided.

     11.  Upon receipt by the Corporation of evidence satisfactory to it of the
loss, theft, destruction or mutilation of this Warrant Certificate, and (in case
of loss, theft or destruction) of indemnity reasonably satisfactory to it, and
upon surrender and cancellation of this Warrant Certificate, if mutilated, the
Corporation, upon reimbursement to it of all

                                       9
<PAGE>

reasonable expenses incidental thereto, will make and deliver a new Warrant
Certificate, of like tenor, in lieu of this Warrant Certificate.

     12.  This Warrant Certificate and the Warrants evidenced hereby may not be
transferred unless such transfer would not result in a violation of the
provisions of the Securities Act of 1933, as amended (herein referred to as the
"Act"). Any transfer of this Warrant Certificate and the Warrants evidenced
hereby, in whole or in part, shall be effected upon surrender of this Warrant
Certificate, duly endorsed (unless endorsement is waived by the Corporation), at
the principal office or agency of the Corporation referred to in paragraph 1.

     13.  All notices, requests or instructions hereunder shall be in writing
and delivered personally or sent by registered or certified mail, postage
prepaid as follows:

          (1)  if to the Corporation:

               8210 Presidents Drive
               Orlando, Florida 32809

               Attention: President

               with a copy to:

               Susan Abramson, Esq.
               Katz, Kutter, Haigler, Alderman,
               Bryant & Yon, P.A.
               111 N. Orange Avenue, Suite 900
               Orlando, Florida 32801

          (2)  if to the holder of the Warrants evidenced hereby:

               620 Division Street
               Elizabeth, New Jersey 07207

               Attention: President

               with a copy to:

               Robert I. Wexler, Esq.
               Krugman & Kailes LLP
               Park 80 West Plaza Two
               Saddle Brook, New Jersey 07663-5835

Any of the above addresses may be changed at any time by notice given as
provided above; provided, however, that any such notice of change of address
shall be effective only upon receipt.

                                       10
<PAGE>

     14.  Pursuant to the Confidential Resolution Agreement dated August 15,
2001 between Super Vision International, Inc. and Hayward Industries, Inc., this
Warrant Certificate and the Warrants evidenced hereby supersede the Warrant
Certificate dated September 25, 1996 (as amended January 10, 2000) heretofore
delivered by Super Vision International, Inc. to Hayward Industries, Inc. (which
shall have no further force and effect).

     IN WITNESS WHEREOF, Super Vision International, Inc. has caused this
Warrant Certificate to be signed by its duly authorized officers and this
Warrant Certificate to be dated as of February 13, 2002.

ATTEST:                                 SUPER VISION INTERNATIONAL, INC.

/s/ Cindy Queen                         By  /s/ Larry J. Calise
---------------------------               ---------------------------------

                                       11
<PAGE>

                               FORM OF EXERCISE
                               ----------------

               (to be executed by the registered holder hereof)

The undersigned hereby exercises ______________ Warrants to subscribe for and
purchase shares of Class A common stock, $.001 par value ("Class A Common
Stock"), of Super Vision International, Inc. evidenced by the within Warrant
Certificate and herewith makes payment of the purchase price in full. Kindly
issue certificates for shares of class A Common Stock in accordance with the
instructions given below. The certificate for the unexercised balance of the
Warrants evidenced by the within Warrants Certificate, if any, will be
registered in the name of the undersigned.

Dated:

                              ___________________________________

Instructions for registration of stock

________________________________
Name (please print)

Social Security or Other Identifying Number:

________________________________

Address:

________________________________
Street

________________________________
City, State and Zip Code

                                       12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}]]