Document:

ex10_8.htm

     

    EXHIBIT 10.8

    
      

      EMPLOYMENT
CONTRACT

      

      THIS EMPLOYMENT CONTRACT
("Agreement") is dated as of the 15th day of November, 2007, by and between
SEREFEX CORPORATION, a
Delaware corporation (the "Company"), with an address at 4328 Corporate Square
Blvd., Suite C, Naples, FL 34104, and SHAWN M. WILLIAMS, an
individual ("Executive"), residing at 444 This Way, Naples, Florida
34110.

      

      W
I T N E S S E T H:

      

      WHEREAS, the Board of
Directors of the Company (the "Board") and Executive desire that Executive
furnish services to the Company on the terms and conditions hereinafter set
forth; and

      

      WHEREAS, the parties desire to
enter into this Agreement setting forth the terms and conditions of the
employment of the Executive with the Company;

      

      NOW, THEREFORE, in
consideration of the foregoing and of the mutual promises and undertakings
contained in the Employment Contract and this Agreement, and for other good and
valuable consideration, the receipt and adequacy of which are hereby
acknowledged, and intending to be legally bound hereby, the parties hereto agree
as follows:

      

      1.           Employment

      

      The
Company hereby agrees to employ the Executive, and the Executive hereby accepts
such employment, on the terms and conditions hereinafter set forth.

      

      2.           Terms
and Parties.

      

      
        	
                 
      

              	
                (a)
       Term. The term of the Executive's employment under this Agreement
      shall be for a period of 61 full calendar months, commencing November 15,
      2007, and ending December 31, 2012, unless further extended or sooner
      terminated as hereinafter provided ("Term"). On December 31, 2012, the
      Term shall be automatically extended for 12 calendar months in the absence
      of any timely written notice provided by either party to this Agreement
      advising the other party of a decision not to extend the obligations of
      this Agreement beyond December 31, 2012, and the extended term of the
      Executive's employment thereafter shall be regarded as the "Term," as used
      in this Agreement, and the Term shall be automatically extended from time
      to time thereafter in the same manner. The last day of the Term, as from
      time to time extended, is hereinafter referred to as the "Expiration
      Date." The Company may elect to terminate the automatic extension of the
      Term set forth in this Section 2(a) by giving written notice of such
      election to the Executive on or before December 31 of the calendar year
      immediately preceding the then-current Expiration Date. The Executive may
      elect to terminate the automatic extension of the Term set forth in this
      Section 2(a) by giving written notice of such election to the President of
      the Company on or before June 30 of the calendar year during which the
      then-current Expiration Date falls. Upon the giving of any such written
      notice, the Executive's employment under this Agreement shall terminate on
      the Expiration Date (as last extended). Notwithstanding any other
      provision(s) of this Agreement, any written notice given by either party
      to this Agreement that communicates a decision not to extend the Term
      shall not be construed to constitute a termination of this Agreement
      either Without Cause or by way of a Constructive Termination (each as
      defined in Section 6 hereof).

              

      

      

      
        	
                 
      

              	
                (b)
       Parties. The obligations of the Company hereunder shall include the
      obligation to cause the Company
      to act in accordance with the terms
  hereof.

              

      

      
      

       

      3.           Position
and Duties.

      

      During
the Term of this Agreement, the Executive shall be employed as Chief Operations
Officer of the Company or other position to be mutually determined by the Board
of Directors and the Executive, and the Board shall consider him to be elected
as a member of the Board of the Company. In addition, Executive shall serve as
Director of Operational Efficiencies of W.P. Hickman Systems, Inc., and all
present and future subsidiaries or affiliates of the Company during times of
transition. In these capacities, duties, powers and responsibilities, as
determined from time to time by the Board of Directors, the Executive shall have
overall responsibility for the operations of the business of the Company and the
subsidiaries and affiliates of the Company for which he shall serve as Chief
Operations Officer. As Chief Operations Officer, the Executive shall report
directly to the Chief Executive Officer and the Board of the Company and
Executive's title(s), reporting relationship(s) to others associated with the
Company and its present and future subsidiaries and affiliates, or duties as
expressed in this Section 3 shall not be altered or diminished in any way
without Executive's prior written consent. The Executive hereby accepts such
employment and agrees to perform the duties and responsibilities set forth
herein.

      

      4.           Place
of Performance

      

      The
principal place of employment and office of the Executive shall be at the
Company's headquarters in Solon, Ohio, or such other location of the companies
operations as may be required by the Board of Directors.

      

      5.           Compensation
and Related Matters.

      

      The
Executive shall receive the following compensation and benefits for his services
rendered under this Agreement, each of which shall constitute a material
obligation of the Company hereunder:

      

      
        	
                (a)

              	
                Base
      Salary. As compensation for the performance by the Executive of his duties
      hereunder, the Company shall pay the Executive a base salary of One
      Hundred Forty Thousand and No/100 Dollars ($140,000.00) (U.S.) per annum
      for the period commencing November 15, 2007, through and including
      December 31, 2008. Thereafter, the Executive's base salary for each
      subsequent 12-month period commencing January 1, 2009, shall be fixed at a
      minimum amount of one hundred and ten percent (110%) of the Executive's
      base salary during the immediately preceding calendar year or as
      additionally increased by the company's compensation
      committee.

              

      

      

      
        	
                (b)

              	
                Incentive
      Compensation. In addition to the compensation described in Section 5(a) of
      this Agreement, the Executive shall receive such additional
      compensation in the form of monthly commissions, as
    follows:

              

      

      

      
        	
                 
      

              	
                (1)    The
      Executive shall receive payment equal to two percent (2%) of the total
      purchase price of all international imports of products by or for the
      Company and/or any of its subsidiaries, whether wholly or partially owned
      or controlled by the Company, The parties acknowledge and agree that this
      component of the Executive's incentive compensation shall be paid by Brian
      S. Dunn, Chief Executive Officer of the Company, as and when the Company
      remits commissions to Mr. Dunn in respect of the purchase of such imported
      products realized by the Company and/or any of its subsidiaries. The
      Executive's incentive compensation under this Section 5(b)(1) shall be
      remitted by Mr. Dunn gross of all taxes not later than the 10th business
      day of the month immediately following the date for which the Company pays
      Mr. Dunn for commissions in respect of the purchase of such imported
      products. In the event Mr. Dunn's tenure with the Company is terminated,
      disrupted, or interrupted for any reason (including, without limitation,
      his death or disability), or if Mr. Dunn fails, refuses, or is unable or
      unwilling to pay the Executive the incentive compensation earned under
      this Section 5(b)(1) as and when his obligation to do so shall become due
      from time to time, the Company agrees to remit additional compensation to
      the Executive in the full amount of the incentive compensation payable
      under this Section 5(b)(1) not later than the last day of the calendar
      month in which such incentive compensation became due and
      payable.

              

      

      

      
        	
                 
      

              	
                (2)

              	
                The
      Executive shall receive payment equal to one half of one percent (1/2%) of
      the aggregate value of all future mergers or acquisitions, stock
      exchanges, asset purchases or aggregations, and any other form of
      acquisition of the capital stock, equity, business interests, and/or
      assets of any other company, corporation, general or limited partnership,
      limited liability company, proprietorship, joint venture, or other form of
      business enterprise, either partially or completely, concluded by or for
      the Company or any of its subsidiaries, whether wholly or partially owned
      or controlled by the Company. In determining the amount of compensation to
      be remitted to the Executive by operation of this Section 5(b)(2), the
      "aggregate value" of any qualifying merger or acquisition shall equal the
      total amount of obligation of the Company and/or any of its subsidiaries,
      whether wholly or partially owned or controlled by the Company, under
      the terms of such merger or acquisition in consideration of the sale,
      exchange, or transfer of the capital stock, equity interests, business
      interests, and or assets sold, transferred, or exchanged under the terms
      of such merger or acquisition. All compensation to be remitted to the
      Executive under this Section 5(b)(2) shall be due and payable not later
      than the last day of the calendar month immediately following the date(s)
      of closing for each merger or acquisition described herein and shall be
      tendered to the Executive, either by way of a check made payable to the
      Executive and/or by way of the issuance of the Company's restricted stock
      in such manner and according to such terms and conditions as will be
      negotiated in an agreement whereby the Company and the Executive agree
      that part or all of the Company's obligations under this Section 5(b)(2)
      might be satisfied.

              

      

      

      
        	
                 
      

              	
                (3)

              	
                The
      obligation to remit incentive compensation under Sections 5(b)(1) and
      5(b)(2) of this Agreement shall survive expiration or termination of this
      Agreement and the Executive shall be entitled, even after expiration or
      termination of this Agreement, to receive all incentive compensation
      otherwise payable to him but for his no longer remaining an active
      employee of the Company in respect of each shipment of imported products
      received, each merger or acquisition closed within 6 months from his
      termination, to the extent the Executive contributed in any material
      fashion to booking any such business, finding any source of supply,
      negotiating any contract or instrument, identifying and/or qualifying any
      merger or acquisition target or opportunity, or otherwise participating in
      the administration, processing, accounting, negotiation, execution,
      delivery, performance, and/or modification of any transaction(s) by which
      any such purchases of imported products and/or mergers and/or acquisitions
      may have been concluded.

              

      

      

      
        	
                (c)

              	
                Annual
      Bonus. In addition to the compensation described in Sections 5(a) and 5(b)
      of this Agreement, beginning with the calendar year of 2008, the Executive
      shall receive such additional compensation in the form of an annual bonus,
      as and when calculated, approved and recommended by the Executive
      Committee or the Board of the Company, and shall be determined according
      to a formula that shall have been approved by the Board of the Company in
      writing and shall have been provided to the Executive as soon as
      practical. In the event the Board fails or refuses to provide the
      Executive with timely written notice of the formula to be used in
      determining the amount(s) of any annual bonus payable under this Section
      5(c) for any given calendar year, the Executive shall be entitled to
      receive an annual bonus for such calendar year according to the formula
      used in determining the Executive's annual bonus for the immediately
      preceding calendar year. Any annual bonus awarded to Executive shall be
      payable when other executives of the company are paid their bonuses but to
      be no later than go days after the end of the calendar year for which said
      bonus was earned except as otherwise provided by other provisions of this
      agreement, the obligation to remit the annual bonus payable under this
      Section 6(c) shall survive expiration or termination of this Agreement and
      the Executive shall be entitled, even after expiration or termination of
      this agreement, to receive such annual bonus otherwise payable to him but
      for his no longer remaining an active employee of the company, provided,
      however, that the amount of the annual bonus payable to the Executive for
      each calendar year during the Term shall be a target amount minimum of One
      Hundred Thousand and No/100 Dollars
  ($100,000.00)(U.S.).

              

      

       

      (d)           Additional
Benefits and Perquisites of Employment. The Executive shall be entitled to each
ofthe following additional benefits and perquisites of employment:

      

      
        	
                 
      

              	
                (1)

              	
                Health
      Care Benefits. The Company shall pay on the Executives behalf 100 percent
      (100%) of the expenses associated with providing the Executive, his spouse
      and children with the Companies group or individual health care insurance
      and benefits, including (without limitation) such major medical, cancer
      coverage, dental, optical, prescription drug, and other health insurance
      coverage as may be provided from time to time by the Company for its
      senior-most officers, directors, and/or employees during the Term of this
      Agreement and any renewal thereof.

              

      

      

      
        	
                 
      

              	
                (2)

              	
                Disability
      Benefits, Other Insurance Coverages, and Benefit Plans. The Company shall
      pay on the Executives behalf 100 percent (100%) of the expense associated
      with providing the Executive disability insurance as provided for other
      senior executives of the company and such other insurance coverages as may
      be provided from time to time for the Company's senior-most officers,
      directors, and/ or employees during the Term of this Agreement and any
      renewal thereof, including (without limitation) life insurance and long
      term care policies. The Company shall pay 100 percent (100%) of the costs
      of providing a 20-year term life insurance policy with a death benefit of
      not less than One Million and No/100 Dollars ($1,000,000.00) (U.S.) for
      the Executive. The Executive also shall be included as a member in any
      profit-sharing, pension, retirement, or other employee benefit plan which
      may be adopted by the Company during the Term of this Agreement or any
      renewal thereof as long as such plan(s) shall be offered or available to
      any of the Company's other senior-most officers, directors, or employees
      and the Executive meets the eligibility requirements
    thereof.

              

      

      

      
        	
                 
      

              	
                (3)
      Vacation. During the Term of this Agreement and any renewal thereof, the
      Executive shall be entitled to paid vacation leave equal to four (4) weeks
      each calendar year, beginning January 1, 2008, and such additional
      vacation leave as shall be approved by the President of the Company from
      time to time. Vacation leave shall be taken by the Executive at such times
      as are mutually convenient to Executive and the President of the Company.
      The Executive agrees to provide reasonable advance notice to the President
      of the Company of the Executive's plan to take vacation leave. If the
      President of the Company concurs in the Executive's plan to take vacation
      leave or if the President fails to notify the Executive within 21 calendar
      days of the Executive's notice that any given plan to take vacation leave
      would not be convenient to the Company, such plan shall be deemed to have
      been approved by the President of the Company. Once approved by the
      President in a manner consistent with this Section 5(d)(3), the President
      of the Company may not change, condition, or rescind the Executive's
      vacation plans without the written consent of the Executive. Executive
      shall not be entitled to carry over any unused vacation accrued during any
      calendar year to any succeeding year, provided, however, that
      notwithstanding this provision respecting vacation leave carryovers, the
      Executive shall be compensated at his base salary determined according to
      Section 5(a) of this Agreement for any accrued vacation leave not taken in
      any given calendar year because the President did not approve or vacation
      leave requested by the Executive at least 21 calendar days in advance or
      the Executive consented in writing to the President's request that the
      Executive not take an approved vacation leave or not taken because
      the employment of the Executive was terminated for any reason before the
      Executive was able to take such vacation leave. Vacation leave may be
      taken in increments of not less than one (x) full calendar day each and
      the Executive's plan to take more than two consecutive weeks of vacation
      leave within any i2-month period during any Term of this Agreement shall
      require the express written consent of the President of the
      Company. Notwithstanding the foregoing provisions of this Section 5(d)(3),
      The Executive shall be released from the notice requirements and
      restrictions on taking vacation leave, as expressed herein, to the extent
      the Executive takes vacation leave for the purpose of attending to any
      family emergency, any unplanned surgery or medical care involving himself
      or his spouse or children, or any bereavement leave occasioned by the
      death of any of the immediate family members of the Executive or the
      Executive's spouse.

              

      

       

      
        	
                 
      

              	
                (4)

              	
                Expense
      Reimbursement. Upon submission of receipts and reasonable documentation,
      the Company hereby agrees to reimburse the Executive for expenses incurred
      by the Executive in connection with business travel, including (without
      limitation) parking, tolls, mileage, lodging, and meals. Business
      entertainment, dues, subscription fees, and membership fees to any
      professional association or organization related to the Company's business
      of which the Executive is a member or shall become a member during the
      term hereof or any renewal thereof, shall be first approved by the
      company.

              

      

      

      
        	
                 
      

              	
                (5)

              	
                Automobile.
      During the Term of this Agreement, the Company shall afford the Executive
      access to similar automobile benefits being granted to other Executives of
      the company.

              

      

      

      
        	
                 
      

              	
                (6)

              	
                No
      Disqualification of the Executive, His Spouse, or His Children. The
      Company acknowledges and agrees that the Executive and his spouse and
      children qualify for all benefits for which they, or any of them, may be
      or shall become eligible under this Section 5 immediately upon the
      Executive's execution of this Agreement. All insurance policies referenced
      in this Section 5 are to be in place as soon as Brian S. Dunn's policies,
      Chief Executive Officer, are in
place.

              

      

      

      
        	
                 
      

              	
                (7)

              	
                Alternate
      Forms of Satisfying Certain Obligations Under Section 5(d). With the
      mutual consent of the Executive and the company, the Executive may
      instruct the Company to remit directly to such insurance company or
      companies as the Executive may designate from time to time, in full or
      partial satisfaction of the Executive's own obligations under his own
      contract(s) of insurance with such company or companies, a sum equal to
      the total amount otherwise payable by the company for its in place
      insurance coverage's being offered to other executives for premiums
      covered under any contract(s) for any insurance policy or policies
      contemplated by the terms of Section 5(d) of this Agreement. Upon honoring
      the Executive's instruction respecting any individual insurance policy,
      the Company's obligation to provide the same coverage and/or benefits
      under the terms of Section 5(d) of this Agreement shall abate and
      thereafter shall be limited to continuing to remit sums under the Section
      5(d)(7) to the Executive's own insurer(s) as and when such obligations
      become due and payable during any Term of this Agreement. The obligation
      to remit any sum(s) payable under this Section 5(d)(7) shall continue
      until the first anniversary of the termination of this Agreement for any
      reason.

              

      

      

      
        	
                (e)

              	
                Relocation
      Expenses. The Executive will be required to relocate from Naples, Florida,
      to Solon, Ohio, or a community within Northeast Ohio that is within 45
      minutes driving distance of Solon, Ohio, to perform his corporate duties
      as described in this contract. The Company agrees to reimburse the
      Executive for any and all pre approved fees and expenses associated with
      said relocation including but not limited
to:

              

      

       

      
        	
                 (1)Temporary
      Housing. The Company shall reimburse the Executive for reasonable
      temporary living expenses (including reasonable travel expenses between
      the Executives primary residence as of the effective date and
      Cleveland/Solon, Ohio metropolitan area) for the executive and
      his family in the Cleveland/Solon, Ohio metropolitan area for a
      period not to exceed one year from the effective
  date.

              

      

      

      
        	
                 
      

              	
                (2)

              	
                Moving
      Expenses. The Company shall reimburse the Executive for all moving
      expenses, including packing, shipping, insurance, unpacking and temporary
      storage costs. .

              

      

      

      
        	
                 
      

              	
                (3)

              	
                Housing
      Value Adjustment. The Company will make available to the Executive the
      opportunity to recapture any loss in the sales proceeds from his family's
      home using a base of $550,000, located in Naples, FL 34110, where the
      Executive currently resides by either making a cash or Serefex common
      stock payment in the amount due including all broker's fees and closing
      costs. Said payment form of either Serefex common stock or cash is to be
      mutually agreed upon by the Executive and the
  Company.

              

      

      

      
        	
                 
      

              	
                (4)

              	
                Relocation
      Bonus. In addition, the Executive shall receive a relocation bonus of
      $19,000, payable on the Effective Date, to cover the other costs
      associated with the relocation of Executive's primary
      residence.

              

      

      

      
        	
                 
      

              	
                (5)

              	
                All
      relocation payments and benefits are to be fully grossed-up for any
      applicable taxes.

              

      

      

      
        	
                (f)

              	
                Retirement.
      The executive shall be entitled to any retirement plan and benefits put in
      place by the company that is offered to other senior
      executives

              

      

      

      
        	
                (g)

              	
                Payment.
      All amounts in compensation and benefits payable under Sections 5(a)
      through 5(f) of this Agreement shall be remitted and honored in accordance
      with the terms set forth or referenced therein in a timely fashion and in
      such manner as shall be mutually agreeable between Executive and the
      Company to the extent not otherwise specified in this Agreement. In the
      event that the Company cannot legally compensate Executive for any or all
      items listed in Sections 5(a) through 5(f) of this agreement due to local,
      state, or federal laws and/or regulations, the Company shall remit amounts
      equivalent to the compensation and/or benefits otherwise foreclosed by
      such laws and/or regulations in the form of increased annual base salary
      in addition to the then-current base salary determined for the
      then-current calendar year by operation of Section 5(a) of this
      Agreement.

              

      

      

      6.           Termination.

      

      The
Executive's employment hereunder shall terminate upon expiration of any Term of
this Agreement by operation of Section 2(a) of this Agreement, but otherwise may
be terminated only as follows:

      

      
        	
                (a)

              	
                Death
      of the Executive. Subject to any post-mortem rights or obligations
      specified herein, the Executive's
      employment shall terminate immediately upon his
    death.

              

      

       

      
        	
                (b)

              	
                Disability
      of the Executive. If the Executive shall fail or become unable to perform
      any of his duties
      hereunder due to illness or other incapacity (as determined by a medical
      doctor mutually agreed to by the Executive or his attorney-in-fact and the
      Company) and such illness or incapacity shall continue for a period of
      more than 9o consecutive days ("Disability"), the Company may terminate
      the Executive's employment hereunder 3o days after written notice of
      termination is given to the Executive or his attorney-at-law or
      attorney-in-fact if the Executive shall not have returned to the
      performance of his duties on a full-time basis by the end of such 3o-day
      notice period.

              

      

      
      

      

      
        	
                 (c)

              	
                With
      Cause or Without Cause. Except as otherwise provided by Sections 6(a) and
      6(b) of this Agreement, the Company may terminate the Executive's
      employment only in the event one or more of the following events should
      occur and the Executive shall not have cured any defect in his performance
      or conduct (if curable) within 3o days after written notice thereof has
      been given by the Company to the Executive coupled with a disclosure that
      the Company intends to terminate the Executive's employment under this
      Section 6(c), effective as of the date such notice is given or such later
      date as may be indicated in such notice, and specifying the factual basis
      for the Company's decision to invoke the remedy of
      termination:

              

      

      

      
        	
                 
      

              	
                (1)

              	
                A
      failure by the Executive to perform material duties assigned to him as an
      employee of the Company (other than due to physical or mental disability
      or impairment or after the delivery of a Notice of Termination for
      Constructive Termination by the Executive pursuant to Section 6(d) of this
      Agreement);

              

      

      

      
        	
                 
      

              	
                (2)

              	
                Engaging
      in misconduct that injures the Company or any subsidiary or any
      affiliate of the Company in a material
  fashion;

              

      

      

      
        	
                (3)

              	
                The
      Executive's conviction for a felony offense;

                (4)

              
	
                (4)

              	
                A
      material breach by the Executive of any written covenant or agreement not
      to compete with
      the Company or any subsidiary or any affiliate;
  or

              

      

       

      
        	
                 
      

              	
                (5)

              	
                A
      breach of the Executive's fiduciary duty to the
  Company.

              

      

      

      Any
termination of the Executive's employment for any of the reasons listed in this
Section 6(c) shall constitute a termination "With Cause" for purposes of this
Agreement and any termination of the Executive's employment for any reason other
than those listed in this Section 6(c) or as provided by Sections 6(a) or 6(b)
hereof, whether for the convenience of the Company or otherwise, shall
constitute a termination "Without Cause" for purposes of this
Agreement.

      

      
        	
                (d)

              	
                Constructive
      Termination. The Executive may terminate his employment in the event one
      or  more of the following events should occur, without the prior
      written consent of the Executive, and the Company shall not have cured any
      defect in its performance or conduct (if curable) within 3o days after
      written notice thereof has been given by the Executive to the Company
      coupled with a disclosure that the Executive intends to terminate this
      Agreement under this Section 6(d), effective as of the date such notice is
      given or such later date as may be indicated in such notice, and
      specifying the factual basis for the Executive's decision to invoke the
      remedy of termination:

              

      

      

      
        	
                 
      

              	
                (1)

              	
                Any
      change in the Executive's reporting relationship as specified in Section 3
      of this Agreement, any assignment or delegation, without Executive's prior
      express written consent, of any of the duties previously assigned to the
      Executive or any reduction of the Executive's duties, either of which
      results in a significant diminution in Executive's position, authority, or
      responsibilities with the Company otherwise in effect immediately prior to
      such assignment, or the removal of the Executive from such position and
      responsibilities, or the elimination of any such authority from the
      Executive;

              

      

      

      
        	
                 
      

              	
                (2)

              	
                Any
      substantial reduction of the facilities and perquisites (including office
      space, location, and available administrative support) available to the
      Executive immediately prior to such reduction except to the extent the
      Executive may have consented in writing to such
  reduction;

              

      

      

      
        	
                 
      

              	
                (3)

              	
                Any
      relocation of the Executive for a period of more than twenty one (21)
      consecutive calendar days to a facility or a location more than 45 miles
      from the Executive's principle office prior to such relocation except to
      the extent the Executive may have consented the same in
      writing;

                 

              

      

      
        	
                 
      

              	
                (4)

              	
                Any
      purported or attempted termination of Executive's employment by the
      Company Without Cause, or any purported or attempted termination of the
      Executive's employment for any reason under Section 6(b) and/or 6(c) of
      this Agreement whereby the grounds on which the Company relies in
      connection with any such termination or a tempted termination are not
      valid or depend upon determinations of fact or conclusion respecting the
      Executive's performance of his obligations under this Agreement or the
      Executive's conduct that either are not true or are not supported by the
      evidence on which the Company relies in taking its action against the
      Executive;

              

      

      

      
        	
                 
      

              	
                (5)

              	
                The
      filing of any voluntary or involuntary petition seeking protection under
      the bankruptcy laws, the appointment of any receiver or other fiduciary
      designated by any court or by operation of any agreement or undertaking to
      which the Company or any of its subsidiaries or affiliates is a party or
      beneficiary for the purpose of gathering, collecting, seizing, managing,
      or administering the business, assets, or affairs of the Company or any
      its subsidiaries or affiliates, or any change in the ownership or
      controlling interest of the Company or any of its subsidiaries or
      affiliates except to the extent the Executive, in respect of any of the
      events listed in this Section 6(d)(5), shall have consented in writing 1
      the same;

              

      

      

      
        	
                 
      

              	
                (6)

              	
                Termination
      of the services of Brian S. Dunn and Chief Executive Officer of the
      Company for any reason or removal or demotion of Mr. Dunn from his
      position as Chief Executive Officer of the
  Company;

              

      

      

      
        	
                 
      

              	
                (7)

              	
                The
      Company's failure to honor any material duty or obligation set forth or
      referenced in this Agreement; or

              

      

      

      
        	
                 
      

              	
                (8)

              	
                Failure
      of the Company to maintain current and in effect Directors and Officers
      Insurance including Employment Practices Liability, Fiduciary Liability
      and Errors and Omissions Insurance. As of date of this agreement,
      coverages have been applied for. The company agrees to indemnify the
      Executive of any and all areas that would be covered by said coverages
      during times of transition.

              

      

      

      Any
termination of this Agreement by the Executive any of the reasons listed in this
Section 6(d1,2,3,5,6,7 and 8) shall constitute a "Constructive Termination" for
purposes of this Agreement. And for all purposes under this Agreement, a
Constructive Termination shall afford the Executive and h: heirs, executors,
administrators, successors, assigns, and dependents that same rights, privilege
and benefits as if the Company had terminated his services Without
Cause.

      

      
        	
                (e)

              	
                By
      the Executive Without Good Reason. The Executive may terminate his
      employment hereunder without Good Reason at any time upon twenty (20) days
      prior written notice to the Company. If however the Executive terminates
      this agreement without good cause within the first 3 years from the
      effective date, then the executive agrees to return to the company all
      payments made to him under section 5 e(3) of this
    agreement.

              

      

      

      
        	
                (f)

              	
                Procedure
      in the Event of Disputes Concerning Termination. Any party receiving a
      written notice invoking the remedy of termination under Sections 6(b),
      6(c), or 6(d) of this Agreement may give written notice to the other party
      not later than the first Tuesday immediately following the 3oth day after
      which such notice shall have been delivered to the effect that a dispute
      exists concerning the termination or the impact or effect such termination
      shall have on the post-termination rights, benefits, expectations,
      obligations, and/or duties of the parties under this Agreement. Upon
      completing service of such written notice respecting termination, the
      parties agree to refer their dispute to mediation subject to the
      provisions of Section 19(b) of this Agreement unless the notice of
      termination of the Executive's employment specifies that such action is
      taken for one of the reasons set forth or referenced in Sections 6(c)(3),
      6(c)(4), 6(d)(5), 6 (d)(6), 6(d)(7)and/or 6(d)(8) of this Agreement, and
      no party to this Agreement shall pursue any post-termination remedies in
      any civil action for enforcement of the terms and conditions hereof except
      upon the conclusion of such mediation efforts. The Executive shall be
      reimbursed for any and all associated legal and non-legal fees associated
      with said dispute in the event the Executive is the prevailing
      party.

              

      

      

      
        	
                7.  

              	
                Termination
      Benefits

              

      

      

      Upon the
termination of this Agreement by the Company Without Cause, or upon the
Executive's termination of this Agreement for Constructive Termination, and in
addition to any other post termination obligations imposed by operation of
this Agreement, the Company shall remit to the Executive, or upon the death or
disability of the Executive, as and for a termination benefit, all of the
following:

      

      
        	
                (a)

              	
                Salary
      Benefit. The Company shall pay to Executive (or to the Executive's spouse
      or the Executive's estate in the event the Executive should die without a
      spouse) in a lump sum not later than 3o days after the effective date of
      the notice of termination for any reason other than the death, termination
      with cause or disability of the Executive an amount equal to 500 percent
      (500%) of the annual base salary of the Executive, determined according to
      Section 5(a) of this Agreement, that was in effect as of the effective
      date of the termination of the Executive's employment hereunder, plus the
      value of all of the Executive's accrued and unused vacation
      leave.

              

      

      

      
        	
                (b)

              	
                Incentive
      Compensation Benefits. The Company shall remit to the Executive (or to the
      Executive's spouse or the Executive's estate in the event the Executive
      should die without a spouse) all accrued and unpaid incentive compensation
      earned by the Executive under Section 5(b) of this Agreement as and when
      such compensation becomes due and payable after the date of termination of
      the Executive's employment.

              

      

      

      
        	
                (c)

              	
                Annual
      Bonus Benefit. The Company shall remit to the Executive (or to the
      Executive's spouse or the Executive's estate in the event the Executive
      should die without a spouse) all accrued and unpaid annual bonus
      obligations of the Company arising under Section 5(b) of this Agreement as
      and when such annual bonus compensation becomes due and payable after the
      date of termination of the Executive's
  employment.

              

      

      

      
        	
                (d)

              	
                Death
      Benefit. The aforementioned life insurance
  policy.

              

      

      

      
        	
                (e)

              	
                Disability
      Benefit. The Company shall remit to the Executive (or to the Executive's
      spouse or the
      Executive's estate in the event the Executive should die without a spouse)
      the cost incurred by the Executive to acquire like insurance as offered in
      section 5 d (2) of this contract until the expiration date of the last
      extension.

              

      

      
        	
                 
      

              	
                 

              

      

      

      
        	
                (f)

              	
                Health
      Care Benefits. The Company shall remit to the Executive (or to the
      Executive's spouse or
      the Executive's estate in the event the Executive should die without a
      spouse) the cost incurred by the Executive to acquire like insurance as
      offered in section 5 d (i) of this contract until the expiration date of
      the last extension.

              

      

      
        	
                 
      

              	
                 

              

      

      

      
        	
                8.  

              	
                Noncompetition
      and Confidentiality.

              

      

      

      
        	
                (a)

              	
                Noncompetition.  In
      recognition of the foregoing agreements, in the event that Executives
      employment pursuant to this Agreement is terminated for any reason by
      either party:

              

      

      

      
        	
                 
      

              	
                (1)

              	
                If
      the termination of the Executive’s employment is With Cause, as defined in
      Section 6(c) of this Agreement, or is occasioned by the expiration of the
      then-current Term of this Agreement, the Executive agrees that for a
      period of 365 days following the date of such termination, he shall not
      within a geographic limit of 100 miles of the primary location of the
      Company be employed by, participate in the formation, ownership,
      management, operation, or control of, or be connected in any manner with
      (other than as a holder of not in excess of 10% of the outstanding voting
      shares of any publicly traded company) any existing retail distributor or
      roofing products company that competes with the business of the Company
      except as listed below in Section 8(c) of this Agreement;
    and

              

      

      

      
        	
                 
      

              	
                (2)

              	
                If
      the termination of the Executive's employment is terminated without cause,
      whether or not such reason is specified or contemplated by the terms and
      conditions of this Agreement, the Company acknowledges and agrees that the
      Executive shall not be bound by any noncompetition
    provisions.

              

      

      

      
        	
                (b)

              	
                Confidentiality.
      The Executive acknowledges that he will be subject to certain restrictive
      covenants concerning his employment. The Executive further acknowledges
      that he will acquire confidential information of a special and unique
      nature and value relating to the Company's intentions, plans, procedures,
      confidential reports, financial resources, shareholders, investors,, and
      prospective business that is not generally shared by the Company in the
      public domain. In this regard, the Executive hereby agrees that he will
      not (1) persuade or attempt to persuade any customer of the Company to
      cease doing business with the Company or persuade or attempt to persuade
      any potential customer to refrain from becoming a customer of the Company,
      (2) persuade or attempt to persuade any employee of the Company to leave
      the Company's employ or to become employed by any person, firm, or
      corporation other than the Company, or (3) divulge any knowledge or
      information of any type whatsoever of a confidential nature relating to
      the businesses of the Company to anyone other than the Company or any
      person employed or designated in writing by the Company, or make any
      unauthorized use of such confidential knowledge or information, or publish
      or use such confidential knowledge or in formation for the benefit of
      any third parties or to the Company's
detriment.

              

      

      

      
        	
                (c)

              	
                Exclusions
      to Noncompetition Obligations of the Executive. The Company acknowledges
      and agrees that the Executive has involvement and ownership rights in
      family businesses based in Naples, Florida, and Sarasota, Florida, and
      that some or all of those family businesses may compete from time to time
      with the business of the Company. The family-owned or affiliated
      businesses in which the Executive shall have continuing involvement and/or
      ownership rights after the effective date of this Agreement include (but
      may not be limited to) to Hi-Lite Services, Inc., and Wholesale
      Construction Materials, LLC. Notwithstanding the provisions of Sections
      8(a) and 8(b) of this Agreement, the Company acknowledges and agrees that
      the Executive shall not be subjected to the restrictions or limitations
      imposed by operation of this Section 8 to the extent the same might
      otherwise apply to the family-owned or affiliated businesses identified or
      referenced in this Section 8(c).

              

      

      

      
        	
                9.

              	
                Joint
      and Several Obligations

              

      

      

      The
obligations set forth herein shall be deemed to be joint and several obligations
of each of the Company and each of its subsidiaries.

      

      
        	
                10.  

              	
                Assignment.

              

      

      

      This
Agreement shall not be assignable by either party except upon the prior written
consent of the other party. Notwithstanding this restriction, and subject to the
other rights and remedies afforded the parties to this Agreement, (1) the
Company's obligations to the Executive and the members of the Executive's
immediately family and their respective heirs, successors, executors,
administrators, and assigns may be assigned by the Company to any person or
entity acquiring all or substantially all of the assets of the
Company.

      

      
        	
                11.

              	
                Severability
      of Provisions.

              

      

      

      If any of
the provisions of this Agreement or the application of any such provision(s)
shall for any reason be held invalid by a court of competent jurisdiction, such
invalidity shall not affect or impair any other provision, it being the
intention of the parties that such other provisions shall be and remain in full
force and effect.

      

      
        	
                12.

              	
                Compliance
      with Applicable Laws.

              

      

      

      The
Executive agrees to comply with all laws and regulations in the conduct of his
duties and obligations under this Agreement and to comply with all regulations,
resolutions, and policies of the Company.

      

      13.           Notices.

      

      When any
notice is to be given by a certain date specified in this Agreement, to the
extent the deadline for such notice falls on a Saturday, Sunday, or legal
holiday, such deadline shall extend to the next succeeding calendar day that is
not a Saturday, Sunday, or legal holiday. All notices, requests, demands, and
other communications provided for by this Agreement shall be in writing and
shall be deemed to have been given at the time when dispatched by certified mail
at any office of the United States Postal Service to the recipient thereof at
the address(es) set forth below or to such changed address as such party may
have fixed by notice to the other party, provided, however, that any notice or
change of address shall be affected only upon receipt and further provided that
any notice may be personally delivered to the respective party by the party
giving notice in lieu of being mailed.

      

      If to the
Company:                
   Serefex Corporation

      4328 Corporate Square Blvd. Suite
C

      Naples,
FL 34104

      Attention:
Brian S. Dunn, President

      

      If to the
Executive:                    Mr.
Shawn Williams

      444 Ibis
Way

      Naples,
Florida 34110

       

      14.           Binding
Effect.

      

      This
Agreement shall inure to the benefit of and shall be binding upon the Company,
its subsidiaries, its successors and assigns, and any corporation, person(s), or
entity that may acquire all or substantially all of the Company's assets or into
which the Company may be consolidated or merged, and shall inure to the benefit
of Executive's personal or legal representatives, executors, administrators,
successors, heirs, distributees, devisees, and legatees. Upon the Executive's
death, all amounts to which he is entitled hereunder, and unless otherwise
provided herein, shall be paid in accordance with the terms of this Agreement to
the Executive's devisee, legatee, or other designee, or, if there be no such
designee, to the Executive's estate.

      

      15.           Governing
Law and Consent to Jurisdiction.

      

      This
Agreement shall be governed by and construed in accordance with the laws of the
State of Ohio without regard for principles of choice of law. The parties hereto
agree to consent to the jurisdiction  and venue of the courts of the State
of Ohio located in Cuyahoga County, Ohio, and agree that all disputes between
the parties shall be litigated only therein.

      

      16.           Entire
Agreement.

      

      This
Agreement represents the entire agreement of the parties, and supersedes all
prior understandings and agreements between the parties relating to the subject
matter of the employment of Executive, including a certain Employment Contract
dated January 1 2006, as amended. This Agreement may not be modified or amended
except by an instrument in writing signed by all of the parties hereto. The
parties acknowledge and agree that while the Executive and his counsel were
responsible principally for formatting this Agreement with the use of their
respective word processing equipment, the Company engaged in a material and
direct fashion in drafting various provisions appearing herein, and therefore
for purposes of resolving any disputes respecting the interpretation,
application, or enforcement of this Agreement, neither party shall be deemed to
have been the author of the terms and conditions expressed herein.

      

      17.           Execution
in Counterparts.

      

      This
Agreement may be executed by the parties hereto signing the same instrument, or
by each party hereto signing a separate counterpart or counterparts, each of
which shall be deemed to be an original, but all of which together shall
constitute one and the same instrument. The parties agree that documents
executed by facsimile shall be acceptable in this transaction, and the
signatures thereof shall have the same force and effect as original
signatures.

      

      18.           Waiver

      

      The
failure of any party to insist in any one or more instances upon performance of
any terms or conditions of this Agreement shall not be construed as a waiver of
future performance of any such term, covenant or conditions, but the obligations
of either party with respect thereto shall continue in full force and
effect.

      

      19.           Miscellaneous
Provisions.

      

      
        	
                (a)

              	
                Survival.
      All warranties, representations, and covenants, unless expressly provided
      otherwise by the terms and conditions hereof, shall survive the closing of
      the transaction(s) contemplated by this
  Agreement.

              

      

      

      
        	
                (b)   
      Mediation. Except as otherwise provided by the terms of this Agreement,
      the parties agree to submit any disputes arising under this Agreement
      or respecting the interpretation, application, and/or enforcement of its
      various terms and conditions to a trained mediator or retired judge with
      experience in mediating employment-related or commercial disputes. The
      Company shall bear responsibility for selecting and compensating the
      mediator, but the Executive agrees to bear one-half of the fee charged by
      the mediator for his or her services if a settlement of the dispute(s)
      submitted for mediation is concluded within 45 days of the conclusion of
      the mediation session(s) devoted to such dispute(s). If a request is made
      by either party for mediation of any such dispute(s), the other party
      shall use his or its best efforts to accommodate the schedules of the
      other party and the mediator so as to allow for the first mediation
      session to take place within 21 calendar days of the date the mediator is
      selected and not more than 3o days from the date the request for mediation
      is received. No party to this Agreement shall commence litigation for the
      enforcement of his or its rights or expectations hereunder without first
      declaring in a written notice to the other party that the parties are at
      impasse and waiting ten (10) calendar days to afford the other party an
      opportunity to reconsider his or its position and/or make an at tempt to
      renew settlement discussions or mediation talks. Once either party
      declares the parties to be at impasse and waits the required ten (10) days
      following his or its notice to that effect, such party may initiate
      litigation in a court of competent jurisdiction in respect of the
      dispute(s) addressed in mediation. Except as otherwise provided in this
      Agreement, the mediation process outlined in this Section 19(b) shall be
      followed by the parties for each dispute arising under this Agreement and
      no part of any dispute not first subjected to such mediation process shall
      be included in any pending litigation by amendment or otherwise or as the
      subject matter of any new civil action commenced in respect of such
      dispute(s) until such mediation process is exhausted in respect of each
      such dispute.

                 

              

      

      
        	
                (c)

              	
                Costs
      of Litigation. In any civil action for the interpretation or enforcement
      of any of the provisions of this Agreement, the prevailing party shall be
      entitled, in addition to all other rights and remedies provided or allowed
      by law, to an order or judgment awarding the prevailing party
      reimbursement of all attorney fees and litigation expenses ordinarily,
      reasonably, and necessarily incurred in the successful prosecution or
      defense of such civil action, all preparation, research, and investigation
      conducted in respect of such litigation or any claims asserted or
      threatened in respect of the subject matter of such litigation in advance
      of the commencement of such civil action, and all services rendered in
      participating in any mediation session(s) conducted pursuant to Section
      i9(b) of this Agreement.

              

      

      

      
        	
                (d)

              	
                All
      Other Remedies Reserved. Nothing in this Agreement shall be construed as a
      limitation, replacement, or elimination of any right or remedy otherwise
      enjoyed by any party or any of such party's heirs, successors, assigns, or
      transferees, or as a condition on the exercise of any such right or the
      availability of any such remedy, except as may be expressly provided to
      the contrary by any provision(s) of this
  Agreement.

              

      

      

      
        	
                (e)

              	
                Headings.
      Headings used in this Agreement are for the convenience of the reader and
      are not meant to alter the substantive meaning of any other provision(s)
      set forth or referenced herein.

              

      

       

      20.           Authority
to Execute Agreement

      

      In
signing this Agreement, each signatory represents and warrants that he or she
has the authority to do so, is not subject to any condition, restriction, or
encumbrance that would condition, restrict, limit, or otherwise affect or
control his or her decision to enter into this Agreement or his or her ability
to honor or discharge the various duties, responsibilities, obligations,
commitments, conditions, covenants, representations, and warranties set forth or
referenced herein, has read each of the terms and conditions hereof and
understands the same, has had adequate opportunity to seek advice or counsel
from an attorney of his or her own choosing prior to executing this Agreement,
intends fully to be bound contractually by the provisions of this Agreement in
accordance with its terms, and has entered into this agreement freely,
voluntarily, and without reservation.

      

        ONCE
EXECUTED BY ALL PARTIES, THIS AGREEMENT WILL CONSTITUTE A BINDING CONTRACT FULLY
ENFORCEABLE ACCORDING TO ITS TERMS. THE PARTIES ARE ADVISED TO CONSULT
INDEPENDENT PROFESSIONALS IF TAX OR LEGAL ADVICE IS DESIRED.

      

      
      

       

      IN
WITNESS WHEREOF, the parties hereto have executed this Agreement under seal the
day and year above first written.

      

      SEREFEX
CORPORATION

      

      Attest:                                                                           Date:

      

      

      

      /s/ Brian S.
Dunn                                                                                                              
         ___________________

      Brian S.
Dunn, President & CEO

      Serefex
Corporation

      

      

      Witness:                                                              
        Date:

       

      

      

      _______________________________                                                                                     ___________________

      Attest:                                                                           Date:

      

       

       

      

      

      /s/ Shawn
Williams                                                                          
                                         ___________________

      Shawn
Williams,
Executive                                  

      Serefex
Corporation

      

      

      Witness:                                                                Date:

      

      

      

      _______________________________                                                                                     ___________________

      

      
 

      

      

      

      ADDENDUM

      

      TO

      

      EMPLOYMENT
CONTRACT

      

      

      This
addendum is to an Employment Contract dated November 15, 2007 by and between
Serefex Corporation, a Delaware corporation, and Mr. Shawn M. Williams, formerly
of Naples, Florida.

      

      WHEREAS, for mutual consideration, the
receipt of which is hereby acknowledged, the parties hereby amend the Employment
Contract as follows:

      

      1.           Section
5 (b) is hereby deleted in its entirety.

      

      

      IN
WITNESS WHEREOF, Serefex Corporation and Shawn M. Williams have caused this
Addendum to the Employment Contract to be duly executed on the day of ______ day
of May, 2008.

      

      

      SEREFEX
CORPORATION                                                                                                           EXECUTIVE

      

      

      
 

      /s/ Brian S.
Dunn                                                                                                    
                   /s/ Shawn M.
Williams,

      Brian S.
Dunn, President &
CEO                                                                                                Shawn
M. Williams, Executive

      Serefex
Corporation

      

      

      WITNESS:

      

      

      

      

      _____________________________

      Name:
_______________________

      

      

      

      ADDENDUM

      

      TO

      

      EMPLOYMENT
CONTRACT

      

      This
addendum is to an Employment Contract dated November 15, 2007 by and between
Serefex Corporation, a Delaware corporation, and Mr. Shawn M. Williams, formerly
of Naples, Florida.

      

      WHEREAS, for mutual consideration, the
receipt of which is hereby acknowledged, the parties hereby amend the Employment
Contract as follows:

      

      
        	
                1.  

              	
                Section
      5 (a) is to read:

              

      

       

      Base
Salary. As compensation for the performance by the Executive of his duties
hereunder, the Company shall pay the Executive a base salary of One Hundred
Forty Thousand and No/100 Dollars ($140,000.00) (U.S.) per annum for the period
commencing November 15, 2007, through November 15, 2008. Thereafter, the
Executive's base salary for each subsequent 12-month period shall be fixed at a
minimum amount of one hundred and ten percent (11o%) of the Executive's base
salary during the immediately preceding calendar year or as additionally
increased by the company's compensation committee.

      

      
        	
                2.  

              	
                Section
      5 (b) is hereby deleted in its
entirety.

              

      

      

      
        	
                3.  

              	
                Section
      5 (c) is to read:

              

      

      

      Annual
Bonus. In addition to the compensation described in Sections 5(a) and 5(b) of
this Agreement, beginning with the fiscal year of 2007, the Executive shall
receive such additional compensation in the form of an annual bonus, as and when
calculated, approved and recommended by the Executive Committee or the Board of
the Company, and shall be determined according to a formula that shall have been
approved by the Board of the Company in writing and shall have been provided to
the Executive as soon as practical. In the event the Board fails or refuses to
provide the Executive with timely written notice of the formula to be used in
determining the amount(s) of any annual bonus payable under this Section 5(c)
for any given fiscal year, the Executive shall be entitled to receive an annual
bonus for such fiscal year according to the formula used in determining the
Executive's annual bonus for the immediately preceding fiscal year. Any annual
bonus awarded to Executive shall be payable when other executives of the company
are paid their bonuses but to be no later than go days after the end of the
fiscal year for which said bonus was earned except as otherwise provided by
other provisions of this Agreement, the obligation to remit the annual bonus
payable under this Section 6(c) shall survive expiration or termination of this
Agreement and the Executive shall be entitled, even after expiration or
termination of this Agreement, to receive such annual bonus otherwise payable to
him but for his no longer remaining an active employee of the Company, provided,
however, that the amount of the annual bonus payable to the Executive for each
calendar year during the Term shall be a target amount minimum of One Hundred
Thousand and No/100 Dollars ($100,000.00) (U.S.).

       

      IN WITNESS WHEREOF, Serefex Corporation
and Shawn M. Williams have caused this Addendum to the Employment Contract to be
duly executed on the 3rd day
of June, 2008.

      

      SEREFEX
CORPORATION                                                                                                           EXECUTIVE

      

      

      

      /s/ Brian S.
Dunn                                                                                                                       
/s/ Shawn M.
Williams

      Brian S.
Dunn, President &
CEO                                                                                                Shawn
M. Williams, Executive

      Serefex
Corporation

      

      

      W.P. HICKMAN SYSTEMS,
INC.                                                                                                           WITNESS:

      

      

      

      

      /s/ Brian S.
Dunn                                                                                                                    
   _____________________________

      Brian S.
Dunn, President &
CEO                                                                                                Name:
_______________________

      W.P.
Hickman Systems, Inc.EX-10.1

Exhibit 10.1

SPLIT DOLLAR INSURANCE AGREEMENT

THIS AGREEMENT made this  15th  of  October 2008
, by and between JO-ANN STORES, INC., an Ohio corporation (the “Company”) and Kenneth Haverkost
(the “Employee”),

W I T N E S S E T H:

WHEREAS, the Employee has performed his duties in a capable and efficient manner and is a
valued employee of the Company and has indicated his intention to continue such services, and the
Company desires that he do so; and

WHEREAS, in the continuation of such relationship, the parties desire to establish an
arrangement in order to provide insurance protection for the benefit of the Employee;

NOW, THEREFORE, in consideration of the services rendered and to be rendered by the Employee
and of the mutual covenants contained herein, the parties hereto agree as follows:

1. Purchases of Insurance. The Company shall maintain life insurance policies
acquired by the Company on the life of the Employee (the “Policies”) from insurance companies
selected by the Company (the “Insurance Companies”), shall pay the premiums on the policies when
due, and shall be designated as sole owner of the policies subject to the conditions hereafter set
forth.

2. Allocation of Premiums Between Company and Employee. The Company will pay the
entirety of the Premiums due on the Policies and shall annually furnish the Employee a statement of
the amount of income reportable by the Employee for Federal and State income tax purposes, if any,
as a result of its payment of such premiums.

3. Payment of Proceeds. Upon the death of the Employee while this Agreement remains
in effect, the proceeds of the Policies shall be paid as follows:

(a) To the Employee’s beneficiary or beneficiaries designated in accordance
with paragraph 4 hereof, the amount of Six Hundred Thousand ($600,000) Dollars.

(b) To the Company, an amount equal to the balance, if any, of the proceeds of
the Policies, and of any paid-up additional insurance purchased through dividend
reinvestment, if any, after payment of the applicable amount to the Employee’s
beneficiary or beneficiaries pursuant to subparagraph (a) of this paragraph 3.

4. Ownership. The Employee shall have the right to designate the beneficiary or
beneficiaries to receive payment of any proceeds of the Policies which might become payable
pursuant to the provisions of paragraph 3(a) hereof. Each and every other right of ownership of
the Policies shall be reserved to the Company even though the exercise of such right or rights
would adversely affect or extinguish the payment of any benefits pursuant to Paragraph 3(a) hereof
or the existence thereafter of the right reserved to the Employee pursuant to the first sentence of
this paragraph.

5. Dividends. The Policies shall provide that the dividends, if any, payable with
respect to the Policies may be applied as determined by the Company in its sole discretion.

6. Termination. This Agreement may be terminated by either party hereto, with or
without the consent of the other, upon the giving of notice of termination in writing. It shall
terminate automatically upon termination of employment of the Employee with the Company for any
reason whatsoever, including early retirement. In the event of termination, the Employee agrees,
upon request to him by the Company, to join with the Company in executing such documents as may be
necessary to designate the Company as sole owner and sole beneficiary of the Policies.

7. Possession of Policy. The Company shall keep possession of the Policies. The
Company agrees from time to time to make the Policies available to the Employee or to the Insurance
Company for the purpose of endorsing.

8. Borrowing. The Company shall have the right, without the consent of the Employee,
to borrow the cash value of the Policies, if any, provided, however, that the Company shall not
borrow from the Policies in any more than three of the first seven years and such amount borrowed
from any Policy during the first seven years shall not exceed the annual premium of such policy.

9. Plan Administrator. The Company shall be the Plan Administrator of the plan
described herein for purposes of the Employee Retirement Income Security Act of 1974. The Company
shall maintain records with respect to the Employee’s benefits hereunder, except for individual
claim records which shall be maintained by the Insurance Companies. The Insurance Companies shall
handle certain aspects in the administration of the plan including, but not limited to, the
processing of individual claims, and the remittance of benefit payment. Payments from the plan
shall be made to beneficiaries directly by the Insurance Companies in accordance with the terms of
the Policies and the terms of this Agreement.

10. Claims Procedure. The Company shall provide a procedure for handling
beneficiaries’ claims for benefits. Such procedure shall be in accordance with regulations issued
by the Secretary of Labor and shall:

(a) provide adequate notice in writing to any beneficiary whose claim for
benefits has been denied, setting forth the specific reasons for such denial,
written in a manner calculated to be understood by such beneficiary; and

(b) afford a reasonable opportunity to any beneficiary whose claim for benefits
has been denied for a full and fair review by the appropriate named fiduciary of the
decision denying the claim.

11. Miscellaneous. The benefits payable under this Agreement shall be independent of,
and in addition to, any other employment agreement that may exist from time to time between the
parties hereto or any other compensation payable by the Company to an Employee, whether as salary,
bonus or otherwise. This Agreement shall not be deemed to constitute a contract of employment
between the parties hereto, nor shall any provision hereof restrict the right of the Company to
terminate the employment of the Employee at any time.

12. Amendment. This Agreement may be revoked or be amended by a writing signed by the
Company and the Employee and attached hereto.

13. Successors. This Agreement shall bind and shall inure to the sole benefit of the
parties and their respective successors, assigns and legal representatives.

14. Revocation of Prior Agreement. Upon execution of the Agreement all split dollar
insurance agreements entered into by the parties hereto prior to the date hereof, if any, shall be
null and void and the rights thereunder shall be extinguished.

IN WITNESS WHEREOF, the parties have hereunto set their hands, the Company by its duly
authorized officers on the day and year first above written.

JO-ANN STORES, INC.

	 	 	 	 	 
	By:

	 	/s/ Darrell Webb
	 	/s/ Kenneth Haverkost
	
 
	 	 
	 	 
	
 
	 	Darrell Webb, Chairman of the Board,
	 	Employee
	
 
	 	President and Chief Executive Officer
	 	

	By:

	 	/s/ David Goldston
	 	

	
 
	 	 
	 	

	
 
	 	David Goldston
	 	

	
 
	 	Senior Vice President,
	 	

	
 
	 	General Counsel and Secretary

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00148-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00148-of-00352.parquet"}]]