Document:

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                                                                   EXHIBIT 10.18

                                                                 [QUALMARK LOGO]

                                                          1329 West 121st Avenue
                                                          Denver, CO 80234 USA
                                                          Ph: 303-254-8800
                                                          Fax: 303-254-4372

July 17, 2000

Dear Charlie:

On behalf of the Board of Directors and the shareholders of Qualmark
Corporation, I am pleased to offer you the position of President and Chief
Executive Officer of Qualmark Corporation. You will assume this position in our
Denver office. This letter will serve to confirm our understanding of your
acceptance of this position.

Your responsibilities will be those outlined in the job description and
described to you during your discussion with Board Members.

Terms of this offer are as follows:

o    You will be compensated with a monthly salary in the amount of $15,833.00.
o    You will receive an annual bonus equal to 40% of base salary to be awarded
     based upon the achievement of mutually agreed upon objectives. A pro-rated
     schedule and objectives will be developed for the remainder of the year
     2000.
o    You will receive an automobile allowance of $500.00 per month.
o    You will receive 100,000 non qualified stock options to be valued at the
     closing price for Qualmark stock on the date of your signed letter of
     acceptance. The vesting schedule for the options shall be one-third per
     year for a three year period.
o    You will be given a relocation package if you decide to move to the Denver
     Area within two years from the signing of this document.
o    In the event of a sale of the company or a change of control all
     outstanding options shall immediately vest, and should termination or
     employment result from such sale or change of control, Mr. Johnson shall
     receive twelve months basic salary and medical benefits for that period.

As an employee of Qualmark, you will be provided with a copy of the Qualmark
Employee Manual and insurance booklets which outline our personnel policies and
benefits program. Attached is a brief listing of our benefit program.

Your employment with Qualmark is "at will" in that it can be terminated with or
without cause, and with or without notice, at any time, at the option of either
Qualmark or yourself, except as otherwise provided by law. The terms of this
offer letter, therefore, do not and are not intended to create either an
express and/or implied contract of employment with Qualmark.

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As you are aware, time is critically important as we are approaching an
exciting threshold with the development of our new product offerings and we
would like to have our new Chief Executive Officer participate in the product
introduction planning and rollout. Therefore, I am asking for your timely
consideration of this offer and I would appreciate your response by Wednesday,
July 19, 2000. Please provide me with a list of references. Our intent is to
complete reference checks and to have an agreement signed by Friday, July 21st,
2000 and we invite you as our new CEO to attend our Board meeting on Friday,
July 21st, 2000 starting at 8:30 AM at the company offices.

Charlie, if you agree with and accept the terms of this offer of employment and
the Confidentiality and Non-compete Agreement, please sign both and return this
letter to our office. Your first day of employment will be August 7, 2000. We
are confident your employment with Qualmark will prove mutually beneficial,
and we look forward to having you join us.

Very truly yours,

/s/ Bill Sanko                             Date     5/17/2000
-------------------------                       -----------------
Bill Sanko, Board of Directors

Accepted by: /s/ Charles D. Johnston              Date     7/27/2000
            ---------------------------               ------------------<PAGE>   1
                                                                    Exhibit 10.1

                                                                  EXECUTION COPY

                                    CYRK INC.

                              EXTENSION AGREEMENT

          This EXTENSION AGREEMENT (this "Agreement") is dated as of October 25,
2000 and entered into by and among CYRK, INC., a Delaware corporation
("COMPANY"), the financial institutions listed therein, WELLS FARGO BANK,
NATIONAL ASSOCIATION, as Issuing Lender ("ISSUING LENDER," together with Lenders
the "LENDING PARTIES") and WELLS FARGO HSBC TRADE BANK, N.A., individually and
as Administrative Agent for Lenders ("ADMINISTRATIVE AGENT"), and is made with
reference to that certain Credit Agreement dated as of July 29, 1999 by and
among Company, the Lenders listed therein, Issuing Lender and Administrative
Agent. Capitalized terms used herein without definition shall have the same
meanings herein as set forth in the Credit Agreement.

                                    RECITALS

          WHEREAS, the Commitment Termination Date under the Credit Agreement,
as extended by that certain Extension Agreement dated as of July 31, 2000, is
October 31, 2000; and

          WHEREAS, Company and Lending Parties desire to enter into this
Agreement in order to provide time to negotiate a new credit agreement;

          NOW, THEREFORE, in consideration of the promises and the agreements,
provisions and covenants herein contained, the parties hereto agree as follows:

SECTION 1. EXTENSION

     Lending Parties hereby agree to extend the Commitment Termination Date
under the Credit Agreement to and including November 30, 2000 (the period from
October 31, 2000 to November 30, 2000 being referred to herein as the "SECOND
EXTENSION PERIOD"). During the Second Extension Period, the Credit Agreement
shall remain in full force and effect in accordance with its terms.

     The agreement of Lending Parties set forth herein shall not in any manner
limit or impair any rights or remedies that Lending Parties may have (i) at the
expiration of the Second Extension Period or (ii) with respect to any defaults
or Events of Default during the Second Extension Period.

     The parties acknowledge that Documentary Credits issued under the Credit
Agreement prior to the Commitment Termination Date, as extended hereby, may
remain outstanding after the Commitment Termination Date. In such event, the
obligations of the parties in respect of any such Documentary Credit shall be
governed by the letter of credit application, substantially in the form of
EXHIBIT IV attached to the Credit Agreement, and other letter of credit
documents executed in connection with the issuance thereof.

<PAGE>   2

SECTION 2. CONDITIONS TO EFFECTIVENESS

     This Agreement shall become effective as of the date hereof upon receipt by
Administrative Agent of the following:

               (i)  Certificate executed by the Company's Secretary stating that
     Dominic F. Mammola, Chief Financial Officer and Executive Vice President of
     the Company is, pursuant to the Company's By-Laws, authorized to enter into
     any and all documents required for the Company to enter into this
     Agreement;

               (ii) Signature and incumbency certificates of the authorized
     representatives of Company executing this Agreement dated as of the date
     hereof;

               (iii) A duly executed Allonge (the "ALLONGE") extending the
     maturity date of the Note; and

               (iv) Originally executed copies of this Agreement.

SECTION 3. REPRESENTATIONS AND WARRANTIES.

          In order to induce Lending Parties to enter into this Agreement,
Company represents and warrants to Lending Parties that the following statements
are true, correct and complete:

     A.   POWER AND AUTHORITY. Company has all requisite power and authority
under the Delaware General Corporation Law and its Certificate of Incorporation
and Bylaws to enter into this Agreement.

     B.   AUTHORIZATION OF AGREEMENT. The execution and delivery of this
Agreement have been duly authorized by all necessary action on the part of
Company under the Delaware General Corporation Law and the Certificate of
Incorporation and Bylaws of Company.

     C.   NO CONFLICT. The execution and delivery by Company of this Agreement
do not and will not (i) violate any provision of any law or any governmental
rule or regulation applicable to Company, the Certificate of Incorporation or
Bylaws of Company or any order, judgment or decree of any court or other agency
of government binding on Company, (ii) conflict with, result in a breach of or
constitute (with due notice or lapse of time or both) a default under any
Contractual Obligation of Company, (iii) result in or require the creation or
imposition of any Lien upon any of the properties or assets of Company (other
than any Liens created under any of the Loan Documents in favor of Lending
Parties), or (iv) require any approval or consent of any Person under any
Contractual Obligation of Company.

     D.   GOVERNMENT CONSENTS. The execution and delivery by Company of this
Agreement do not and will not require any registration with, consent or approval
of, or notice to, or other action to, with or by, any federal, state or other
governmental authority or regulatory body.

                                       2
<PAGE>   3

     E.   BINDING OBLIGATION. This Agreement and the Allonge have been duly
executed and delivered by Company and are the legally valid and binding
obligations of Company, enforceable against Company in accordance with their
respective terms, except as may be limited by bankruptcy, insolvency,
reorganization, moratorium or similar laws relating to or limiting creditors'
rights generally or by equitable principles relating to enforceability.

SECTION 4. ACKNOWLEDGEMENT AND CONSENT

          Company is a party to certain Collateral Documents, in each case as
amended through the date hereof pursuant to which Company has created Liens in
favor of Administrative Agent on certain Collateral to secure the Obligations.

          Company hereby confirms that each Collateral Document to which it is a
party or otherwise bound and all Collateral encumbered thereby will continue to
secure to the fullest extent possible the payment and performance of all
"Obligations" and "Secured Obligations," as the case may be (in each case as
such terms are defined in the applicable Collateral Document), including,
without limitation, the payment and performance of all such "Obligations" or
"Secured Obligations," as the case may be, in respect of the Obligations of
Company now or hereafter existing under or in respect of the Credit Agreement
and the Note defined therein.

          Company acknowledges and agrees that any of the Collateral Documents
to which it is a party or otherwise bound shall continue in full force and
effect and that all of its obligations thereunder shall be valid and
enforceable.

SECTION 5. MISCELLANEOUS

     A.   HEADINGS. Section and subsection headings in this Agreement are
included herein for convenience of reference only and shall not constitute a
part of this Agreement for any other purpose or be given any substantive effect.

     B.   APPLICABLE LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN
ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF CALIFORNIA, WITHOUT REGARD TO
CONFLICTS OF LAWS PRINCIPLES.

     C.   COUNTERPARTS. This Agreement may be executed in any number of
counterparts and by different parties hereto in separate counterparts, each of
which when so executed and delivered shall be deemed an original, but all such
counterparts together shall constitute but one and the same instrument;
signature pages may be detached from multiple separate counterparts and attached
to a single counterpart so that all signature pages are physically attached to
the same document.

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
duly executed and delivered by their respective officers thereunto duly
authorized as of the date first written above.

                                        CYRK, INC.

                                        By: /s/ Nick Mammola
                                            -----------------------------------
                                        Title: EVP, CFO
                                               --------------------------------

                                        WELLS FARGO HSBC TRADE BANK, N.A.,
                                        individually and as Administrative Agent

                                        By: ___________________________________
                                        Title: ________________________________

                                        WELLS FARGO BANK, NATIONAL ASSOCIATION,
                                        as Issuing Lender

                                        By: ___________________________________
                                        Title: ________________________________

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<PAGE>   5

                           ALLONGE TO PROMISSORY NOTE

     THIS ALLONGE is made as of October 25, 2000 by CYRK, INC., a Delaware
corporation ("COMPANY"), as maker, in favor of WELLS FARGO HSBC TRADE BANK,
N.A., as payee, with respect to that certain Promissory Note dated as of July
29, 1999, as amended by the Allonge to Promissory Note dated as of July 31, 2000
(the "NOTE").

     Company hereby agrees that all amounts outstanding under the Credit
Agreement referred to in the Note shall be paid on or before November 30, 2000.

     WITNESS the execution of this Allonge by Cyrk, Inc. as of the date first
written above.

                                         CYRK, INC.

                                         By: /s/ Nick Mammola
                                             -----------------------------------
                                         Title: EVP, CFO
                                                --------------------------------

                                       1
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ACKNOWLEDGED AND AGREED:

WELLS FARGO HSBC TRADE BANK, N.A.
Individually and as Administrative Agent

By: _____________________________________
Title: __________________________________

                                       2
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                             INCUMBANCY CERTIFICATE

I, Patricia J. Landgren, do hereby certify as Secretary of Cyrk, Inc. ("Cyrk" or
the "Company"), a Delaware corporation, that as of the 26th day of October 2000,
Dominic F. Mammola is the Chief Financial Officer and Executive Vice President
of the Company and is duly authorized to execute on behalf of the Company any
and all documents related to the Second Extension Agreement.

IN WITNESS WHEREOF, I have hereto set my hand and the seal of said Company as of
this 26th day of October 2000.

                                                 /s/ Patricia J. Landgren
                                                 ------------------------
                                                 Patricia J. Landgren
                                                 Secretary

[Seal]

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                            SECRETARY'S CERTIFICATE

I, Patricia J. Landgren, do hereby certify that I am Secretary of Cyrk, Inc.
("Cyrk" or the "Company"), a Delaware corporation, and that Dominic F. Mammola
is the Chief Financial Officer and Executive Vice President of the Company. As
Chief Financial Officer and Executive Vice President, Mr. Mammola is authorized,
pursuant to the Company's By-Laws, to execute as an authorized representative of
the Company any and all documents related to the Second Extension Agreement.

IN WITNESS WHEREOF, I have hereto set my hand and the seal of said Company as of
this 26th day of October 2000.

                                                 /s/ Patricia J. Landgren
                                                 ------------------------
                                                 Patricia J. Landgren
                                                 Secretary

[Seal]

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