Document:

Exhibit 10.1

                                MERGER AGREEMENT

         This MERGER AGREEMENT (this "Agreement") is made on this 12th day of
March, 2004, among Evenstar, Inc., a Kansas corporation ("Company"), Joel A.
Butler, David L. Butler and Patrick D. Butler (collectively, "Shareholders"),
Evenstar Mergersub, Inc., a Nevada corporation ("Mergersub"), and SLS
International, Inc., a Delaware corporation ("Purchaser").

                                    RECITALS

         A. Company, through its Hyperion Amplification division, owns all
rights to the trade name "Hyperion Amplification" and all rights in various
inventions concerning digital amplification technologies, which are disclosed
and described in one U.S. Patent No. 6,563,377 B2 (the "Patent"), U.S. Patent
Application Serial No. 10/377,559 (the "Patent Application"), and expired U.S.
Provisional Patent Application No. 60/390,242 ("Provisional Patent
Application"), all of which are set forth on Schedule A attached hereto
(collectively, the "Purchased Proprietary Rights," as further defined in Section
5(q)).

         B. Shareholders own 100% of the issued and outstanding shares of
capital stock of Company (the "Company Stock").

         C. Purchaser owns 100% of the issued and outstanding shares of capital
stock of Mergersub.

         D. The parties desire that Company merge with and into Mergersub, as
herein provided and on the terms and conditions
hereinafter set forth.

         E. Company, Shareholders and Purchaser previously entered into an Asset
Purchase Agreement, dated February 6, 2004, as amended by the First Amendment to
Asset Purchase Agreement, dated as of February 20, 2004 (collectively, the
"Asset Purchase Agreement"), which shall be terminated in accordance with
Section 9(n) upon the parties entering into this Agreement.

         NOW, THEREFORE, the parties hereto, intending to be legally bound
hereby, in consideration of the foregoing recitals and the mutual promises,
covenants and representations herein contained, agree as follows:

         1. MERGER.

         (A) MERGER OF COMPANY INTO MERGERSUB. On and subject to the terms and
conditions of this Agreement, Company will merge with and into Mergersub
("Merger") at the Effective Time (as defined below). Mergersub shall be the
corporation surviving the Merger ("Surviving Corporation").

         (B) ACTIONS AT THE CLOSING. At the Closing (as defined in Section
4(a)), (i) Shareholders will deliver to Mergersub the various certificates,
instruments, and documents referred to in Section 4(c) below, (ii) Mergersub
will deliver to Company the various certificates, instruments, and documents
referred to in Section 4(d) below, (iii) Company and Mergersub will file with
the Secretary of State of Nevada Articles of Merger in the form attached hereto
as Exhibit A ("Articles of Merger (Nevada)") and (iv) Company and Mergersub will
file with the Secretary of State of Kansas a Certificate of Merger in the form
attached hereto as Exhibit B ("Certificate of Merger (Kansas)").

         (C) EFFECT OF MERGER.

         (i) General. The Merger shall become effective at the time ("Effective
         Time") (A) Mergersub and Company file the Articles of Merger (Nevada)
         with the Secretary of State of Nevada and (B) Mergersub and Company
         file the Certificate of Merger (Kansas) with the Secretary of State of
         Kansas. The Merger shall have the effect set forth in the Nevada
         General Corporation Law and in the Kansas General Corporation Code. The
         Surviving Corporation may, at any time after the Effective Time, take
         any action (including executing and delivering any document) in the
         name and on behalf of either Mergersub or Company in order to carry out
         and effectuate the transactions contemplated by this Agreement.

         (ii) Articles of Incorporation. The Articles of Incorporation of
         Mergersub in effect at and as of the Effective Time will remain the
         Articles of Incorporation of the Surviving Corporation without any
         modification or amendment in the Merger.
<PAGE>

         (iii) Bylaws. The Bylaws of Mergersub in effect at and as of the
         Effective Time will remain the Bylaws of the Surviving Corporation
         without any modification or amendment in the Merger.

         (iv) Directors and Officers. The directors and officers of Mergersub in
         office at and as of the Effective Time will remain the directors and
         officers of the Surviving Corporation (retaining their respective
         positions and terms of office).

         (v) Conversion of Company Stock. At and as of the Effective Time, each
         share of Company Stock shall be converted into the right to receive the
         Purchase Price (as defined below) divided by the number of shares of
         Company Stock issued and outstanding at the Effective Time. No share of
         Company Stock shall be deemed to be outstanding or to have any rights
         other than those set forth in this Section 1(c)(v) after the Effective
         Time.

         (vi) Mergersub Shares. Each share of Mergersub's capital stock issued
         and outstanding at and as of the Effective Time will remain issued and
         outstanding.

         (vii) Addresses. The address of the Company is 12722 W. 101st Street,
         Lenexa, KS 66215. The address of the Surviving Corporation will be 3119
         South Scenic, Springfield, Missouri 65807.

         (D) COOPERATION. To the extent that any of the Company's third-party
contracts (including any real property leases) contain change-in-control (or
similar) provisions, Mergersub shall cooperate with Shareholders in obtaining
any third party consents as may be required to consummate the transactions
contemplated by this Agreement, including the provision of such information of
Mergersub as may be reasonably requested by such third parties in the context of
their review of requests for consent; provided that Mergersub or Purchaser shall
not be obligated to expend any sum or advance any costs, or commence any
litigation or other legal proceedings, in connection with such cooperation.
Shareholders acknowledge and agree that any and all costs and fees charged by
such third parties in connection with such consents, whether charged prior to or
following the Closing Date, shall be the responsibility of Shareholders.

         2. PURCHASE PRICE AND PAYMENT.

         (A) PAYMENT TO SHAREHOLDERS. In consideration for the Company Stock, at
the Closing, Purchaser shall deliver to Shareholders an aggregate amount of cash
and stock as set forth in (ii) and (iii) below ("Purchase Price"). The Purchase
Price shall be delivered to Shareholders through a combination of cash and
shares of the Purchaser's Common Stock (the "Purchaser Stock"), as more
specifically set forth below.

         (i) Initial Deposit. Simultaneously with the execution of the Asset
         Purchase Agreement, Purchaser deposited with Company an amount equal to
         $30,000 in cash (the "Initial Deposit"). Shareholders will cause
         Company to transfer the Initial Deposit to the Shareholders at Closing
         and the Initial Deposit shall be applied towards the Purchase Price.

         (ii) Cash Portion. At the Closing, Shareholders will receive an
         aggregate amount of cash equal to $300,000 less the Initial Deposit.

         (iii) Stock Issuance. At the Closing, Shareholders will receive 300,000
         shares of Purchaser Stock (the "Shares"). Each Shareholder agrees that
         he will sell no more than 1,667 Shares in any one trading day; provided
         that if the twenty-day average daily trading volume in Purchaser's
         Shares equals or exceeds 500,000 shares, then each Shareholder will
         sell no more than 8,333 Shares in any one trading day (in each case
         subject to any restrictions of applicable law, including Rule 144 of
         the U.S. Securities and Exchange Commission). The certificate(s) issued
         to each Shareholder evidencing the Shares shall contain a legend giving
         notice of the restrictions on such Shares provided in this Section
         2(a).

         (B) TAXES. Shareholders agree that Shareholders shall pay all transfer
or similar taxes required to be paid by reason of the Merger.

         3. COVENANT NOT TO COMPETE.

         (A) To assure that Mergersub and Purchaser will realize the value and
goodwill inherent in the Purchased Proprietary Rights, Shareholders agree that
they shall not (i) directly or indirectly engage in (as an owner, partner,

                                      -2-
<PAGE>

employee, agent, consultant or otherwise), for a period of five (5) years
following the Closing Date, any business that designs, manufactures, distributes
or sells commercial, professional or residential loudspeakers, amplifiers or
other stereo or sound equipment (the "Business") in the United States (the
"Territory"); (ii) directly or indirectly, for a period of five (5) years
following the Closing Date, request or advise any individual or company which is
a customer of Company at the Closing Date to withdraw, curtail or cancel any
such customer's relationship with Mergersub or Purchaser; or (iii) solicit or
cause, directly or indirectly, to be solicited, nor attempt to induce, for a
period of five (5) years after the Closing Date, any person employed by Company
at or at any time within 180 days prior to the Closing Date, unless such person
was either not offered employment by Mergersub or Purchaser immediately
following the Closing or was terminated thereafter, (A) to refuse an offer of
employment from Mergersub or Purchaser; or (B) if such an offer is accepted, to
terminate his or her employment with Mergersub or Purchaser.

         (B) Shareholders agree and acknowledge that the restrictions contained
in Section 3(a) are reasonable in scope and duration and are necessary to
protect Mergersub and Purchaser after the Closing Date. If, however, any
provision of Section 3(a), as applied to any party or to any circumstances, is
adjudged by a court to be invalid or unenforceable, the same will in no way
affect any other provision of Section 3(a) or any other part of this Agreement,
the application of such provision in any other circumstances or the validity or
enforceability of this Agreement. If any such provision, or any part thereof, is
held to be unenforceable because of the duration of such provision or the area
covered thereby, the parties agree that the court making such determination will
have the power to reduce the duration and/or area of such provision, and/or to
delete specific words or phrases, and in its reduced form such provision will
then be enforceable and will be enforced. Upon breach of any provision of
Section 3(a), Mergersub and Purchaser will be entitled to injunctive relief
(without posting bond or other security), since the remedy at law would be
inadequate and insufficient. In addition, Mergersub and Purchaser will be
entitled to such damages as it can show it has sustained by reason of such
breach.

         4. CLOSING.

         (A) TIME AND PLACE OF CLOSING. The closing of the transactions
contemplated by this Agreement (the "Closing") shall take place at the offices
of Freeborn & Peters LLP, 311 S. Wacker Drive, Suite 3000, Chicago, Illinois, on
March 12, 2004, or by mail or facsimile transmission of the applicable
documents, certificates and instruments required to consummate the transactions
contemplated by this Agreement, or at such other place and time as agreed upon
by the parties. The date on which the Closing occurs is referred to herein as
the "Closing Date."

         (B) CLOSING TRANSACTIONS. Subject to the conditions set forth in this
Agreement, the parties shall consummate the following transactions (the "Closing
Transactions") on the Closing Date:

         (i) Shareholders shall deliver to Mergersub all certificates
         representing the Company Stock endorsed for transfer;

         (ii) Purchaser shall deliver the Purchase Price to Shareholders (by
         wire transfer of immediately available funds to an account designated
         by Shareholders) and shall instruct its transfer agent to issue and
         deliver to Shareholder the certificates representing the Shares; and

         (iii) Purchaser and Joel Butler shall enter into a two-year employment
         agreement substantially in the form hereto attached as Exhibit C (the
         "Joel Butler Employment Agreement").

         (C) SHAREHOLDERS' CLOSING DELIVERIES. Subject to and conditioned upon
the Closing, on or prior to the Closing Date, Shareholders shall have delivered
to Mergersub all of the following:

         (i) a certificate of the Secretary of State or such other appropriate
         governmental body of the State in which Company is organized providing
         that Company is in good standing;

         (ii) certificates representing 100% of the issued and outstanding
         Company Stock;

         (iii) Joel Butler Employment Agreement executed by Joel Butler;

         (iv) copies of all third-party (including landlords) and governmental
         consents, approvals, filings, releases and terminations required in
         connection with the consummation of the transactions contemplated
         herein;

         (v) an opinion, dated the Closing Date, of counsel to Company, in form
         and substance reasonably satisfactory to Mergersub and Purchaser; and

                                      -3-
<PAGE>

         (vi) such other documents or instruments as Mergersub or Purchaser may
         reasonably request to effect the transactions contemplated hereby.

         (D) CLOSING DELIVERIES OF MERGERSUB AND PURCHASER. Subject to and
conditioned upon the Closing, on or prior to the Closing Date, Purchaser and
Mergersub shall have delivered to Shareholders all of the following:

         (i) articles of incorporation certified by the Secretary of State of
         Nevada dated within ten days of Closing;

         (ii) the Purchase Price;

         (iii) Joel Butler Employment Agreement executed by Purchaser; and

         (iv) such other documents or instruments as Shareholders may reasonably
         request to effect the transactions contemplated hereby.

         5. REPRESENTATIONS AND WARRANTIES. Shareholders each, jointly and
severally, make the following representations and warranties to Mergersub and
Purchaser, upon which Mergersub and Purchaser have relied:

         (A) ORGANIZATION, POWER AND AUTHORITY; SUBSIDIARIES. Company is a
corporation duly organized, validly existing and in good standing under the laws
of the State of Kansas and has all requisite corporate power and authority to
own or lease its properties and to carry on its business as it is now being
conducted. Company is legally qualified to transact business as a foreign
corporation in each of the jurisdictions in which its business or property is
such as to require that it be thus qualified, and it is in good standing in each
of the jurisdictions in which it is so qualified. Company does not own, of
record or beneficially, any capital stock or equity interest or investment in
any corporation, partnership, joint venture, association or business entity.
Company and Shareholders have the power and authority and capacity to enter into
this Agreement, and upon execution of this Agreement by Company and Shareholders
this Agreement shall be binding upon and enforceable against Company and
Shareholders according to the terms hereof.

         (B) CAPITALIZATION. The Company Stock are the only shares of capital
stock of Company which are issued and outstanding. All of the shares of Company
Stock (i) have been duly authorized and validly issued and are fully paid and
non-assessable, (ii) were issued in compliance with all applicable state and
federal securities laws, and (iii) were not issued in violation of any
preemptive rights or rights of first refusal. No preemptive rights or rights of
first refusal exist with respect to the Company Stock, and no such rights arise
by virtue of or in connection with the transactions contemplated hereby. There
are no outstanding or authorized rights, options, warrants, convertible
securities, subscription rights, conversion rights, exchange rights or other
agreements or commitments of any kind that could require Company to issue or
sell any shares of its capital stock (or securities convertible into or
exchangeable for shares of its capital stock). There are no outstanding stock
appreciation, phantom stock, profit participation or other similar rights with
respect to Company. There are no proxies, voting rights or other agreements or
understandings with respect to the voting or transfer of Company Stock. Company
is not obligated to redeem or otherwise acquire any of its outstanding shares of
capital stock. As of the date hereof, Shareholders constitute all of the holders
of all issued and outstanding shares of capital stock of Company, and
Shareholders own such shares free and clear of all liens, restrictions and
claims of any kind.

         (C) EXECUTION AND DELIVERY; NON-CONTRAVENTION. Neither the execution
and delivery of this Agreement nor the consummation of the transactions
contemplated hereby will (x) contravene any provision of the articles of
incorporation or bylaws of Company; (y) violate or conflict with any federal,
state or local law, statute, ordinance, rule, regulation or any decree, writ,
injunction, judgment or order of any court or administrative or other
governmental body or of any arbitration award which is either applicable to,
binding upon or enforceable against Company or any of the Shareholder; or (z)
conflict with, result in any breach of or default (or an event which would, with
the passage of time or the giving of notice or both, constitute a default) under
any material contract, agreement, lease, license, indenture, trust or other
instrument which is either binding upon or enforceable against Company or any of
the Shareholders.

         (D) RECORDS OF COMPANY. The copies of the articles of incorporation and
bylaws of Company which were provided to Purchaser are true, accurate and
complete and reflect all amendments made through the date of this Agreement. The
minute books for Company made available to Purchaser for review were correct and
complete in all material respects as of the date of such review, no further
entries have been made through the date of this Agreement, such minute books
contained the true signatures of the persons purporting to have signed them, and
such minute books contain an accurate record of all material corporate actions
of the shareholders and directors (and any committees thereof) of Company taken
by written consent or at a meeting within the past 10 years. All material
corporate actions taken by Company have been duly authorized or ratified. All
accounts, books, ledgers and official and other records of Company have been
fully, properly and accurately kept and completed in all material respects, and

                                      -4-
<PAGE>

there are no material inaccuracies or discrepancies of any kind contained
therein. The stock ledgers of Company, as previously made available to
Purchaser, contain accurate and complete records of all issuances, transfers and
cancellations of shares of the capital stock of Company.

         (E) FINANCIAL STATEMENTS. Shareholders have furnished to Purchaser the
financial statements which are attached hereto on Schedule 5(e), including the
notes pertaining thereto ("Financial Statements"). The Financial Statements
present fairly and are true, correct and complete statements of the financial
position of Company, in all material respects, at each of said balance sheet
dates and the results of its operations for each of said periods covered, and
they have been prepared in accordance with generally accepted accounting
principles consistently applied. The books and records of Company properly and
accurately reflect all transactions, properties, assets and liabilities of
Company. Shareholders are not aware of changes in generally accepted accounting
principles that could materially and adversely affect Company's financial
condition or results of operations as set forth on the Financial Statements.

         (F) LIABILITIES. Company has no liabilities or obligations, either
accrued, absolute, contingent or otherwise.

         (G) ABSENCE OF CERTAIN CHANGES. Except as set forth on Schedule 5(g)
attached hereto and except as expressly contemplated by this Agreement, since
the date of the Last Balance Sheet, Company has not:

         (i) suffered any change in the business, assets or properties of
         Company or in the financial condition or results of operations of
         Company other than in the ordinary course of business consistent with
         past practice;

         (ii) suffered any theft, damage, destruction or casualty to any
         material assets, whether or not covered by insurance, or suffered any
         substantial destruction of its books and records; (iii) redeemed or
         repurchased, directly or indirectly, any shares of capital stock or
         other equity security or declared, set aside or paid any dividends or
         made any other distributions (whether in cash or in kind) with respect
         to any shares of its capital stock or other equity security;

         (iv) issued, sold or transferred any equity securities, any securities
         convertible, exchangeable or exercisable into shares of its capital
         stock or other equity securities, or warrants, options or other rights
         to acquire shares of its capital stock;

         (v) incurred or become subject to any material liabilities, except
         liabilities incurred in the ordinary course of business consistent with
         past practice; (vi) subjected any portion of its properties or assets
         to any lien which will not be discharged as of the Closing;

         (vii) sold, leased, assigned or transferred (including, without
         limitation, transfers to its shareholders, officers and directors) any
         of its tangible assets, except for sales of inventory in the ordinary
         course of business consistent with past practice or in connection with
         replacement of equipment or as otherwise contemplated by this
         Agreement, or canceled without fair consideration any material debts or
         claims owing to or held by it;

         (viii) sold, assigned, licensed, transferred (including, without
         limitation, transfers to its shareholders, officers and directors) or
         otherwise disposed of any proprietary rights owned by, issued to or
         licensed to it, including without limitation the Purchased Proprietary
         Rights, or disclosed any confidential information (other than pursuant
         to agreements requiring the disclosee to maintain the confidentiality
         of and preserving all its rights in such confidential information);

         (ix) suffered any extraordinary losses or waived any rights of material
         value; (x) entered into, amended or terminated any material lease,
         contract, agreement or commitment, or taken any other action or entered
         into any other transaction other than in the ordinary course of
         business consistent with past practice;

         (xi) entered into any other material transaction, or materially changed
         any business practice;

         (xii) made or granted any bonus or any wage, salary or compensation
         increase to any director, officer, employee or sales representative,
         group of employees or consultant (except in the ordinary course of
         business consistent with past practice) or made or granted any increase
         in any employee benefit plan or arrangement, or amended or terminated
         any existing employee benefit plan or arrangement or adopted any new

                                      -5-
<PAGE>

         employee benefit plan or arrangement, except as contemplated by this
         Agreement;

         (xiii) made any other change in employment terms for any of its
         directors, officers, and employees outside the ordinary course of
         business consistent with past practice;

         (xiv) conducted its cash management customs and practices other than in
         the ordinary course of business consistent with past practice
         (including, without limitation, with respect to collection of accounts
         receivable, purchases of inventory and supplies, repairs and
         maintenance, payment of accounts payable and accrued expenses, levels
         of capital expenditures and operation of cash management practices
         generally);

         (xv) made any capital expenditures or commitments for capital
         expenditures that aggregate in excess of $10,000; (xvi) made any loans
         or advances to, or guarantees for the benefit of, any person;

         (xvii) permitted any of the Purchase Proprietary Rights to be subject
         to any lien or encumbrance;

         (xviii) failed to maintain all reasonably necessary Permits or filed to
         make all reasonably necessary registrations or filings with or notices
         to any governmental or regulatory authority for the lawful ownership of
         the Purchased Proprietary Rights and the operation of its business as
         presently conducted; or

         (xix) committed to do any of the foregoing.

         (H) TAXES. Company has filed all federal, state, county and local tax
returns due prior to the date hereof and all taxes of every nature (including
all sales and use taxes, income taxes and real estate taxes); and all penalties
and interest thereon, due for or attributable to periods ending on or prior to
the Closing Date, have been paid timely and in full.

         (I) GOOD TITLE. Company has good and marketable title to the Purchased
Proprietary Rights, free and clear of any mortgage, security interest, pledge,
lien, assessments, restrictions, conditional sales or other agreement, lease,
encumbrance or claim of any nature. Neither Company nor Shareholders knows of
any defects or deficiencies in the Purchased Proprietary Rights.

         (J) EMPLOYEES. Company has no employees and has never employed any
employees.

         (K) REAL ESTATE; LEASES. Company owns no real property. Company does
not lease any real property.

         (L) RELIANCE ON STATEMENTS. No representation contained herein or
written statement made or furnished by Shareholders or any officer of Company to
Mergersub or Purchaser in connection with this Agreement contains any untrue
statement of a material fact or omits any material fact necessary to make such
representation or statement not misleading.

         (M) LITIGATION. There are no actions, suits, arbitrations, proceedings
or investigations pending, or to the knowledge of Company or Shareholders
threatened, against or affecting Company, Company's operations, the Purchased
Proprietary Rights, or Company's use of the Purchased Proprietary Rights.

         (N) COMPLIANCE WITH LAWS. Company is not in violation of any order,
writ, notice, injunction or decree of any court, board, or agency. Company has
complied with, and is in present compliance with, all laws, regulations, rules
and orders applicable to Company's business and/or to any or all of the
Purchased Proprietary Rights.

         (O) SOLE OWNER. Company is the sole owner of all right, title and
interest in and to the Purchased Proprietary Rights. There are not currently
outstanding any options or other rights to purchase or license any interest in
the Purchased Proprietary Rights.

         (P) LICENSES AND PERMITS. Company possesses all licenses and required
governmental or official approvals, permits or authorizations (collectively, the
"Permits") for the business and operations of Company. All such Permits are
valid and in full force and effect, Company is in substantial compliance with
their requirements, and no proceeding is pending or, to the best of Company's or
Shareholders' knowledge, threatened to revoke or amend any of them. Schedule
5(p) contains a complete list of all such Permits. Except as indicated on
Schedule 5(p), none of such Permits will be impaired or in any way affected by
the execution and delivery of this Agreement or the consummation of the
transactions contemplated herein.

                                      -6-
<PAGE>

         (Q) PROPRIETARY RIGHTS. (i) Neither Company nor Shareholders have
received notice of any claim by any third party asserting the invalidity, abuse,
misuse, or unenforceability of any of Company's rights in, the use of, or the
validity of the Purchased Proprietary Rights, and to Company's and Shareholders'
knowledge there are no grounds for the same. The Purchased Proprietary Rights do
not infringe, conflict with, dilute or misappropriate any proprietary rights of
others, and Company has never received a notice claiming any such infringement,
conflict, dilution or misappropriation. The conduct of Company's business has
not infringed any proprietary rights of others. To the knowledge of Company and
Shareholders, no other person or entity is infringing, diluting or
misappropriating any of the Purchased Proprietary Rights.

         (ii) Any employee, agent, consultant, or contractor who has contributed
         to or participated in the creation or development of any portion of the
         Purchased Proprietary Rights on behalf of Company either (i) is a party
         to a "work-for-hire" agreement under which Company is deemed to be the
         original owner / author of all property rights therein, or (ii) has
         executed an assignment to Company of all right, title and interest
         therein.

         (iii) The Purchased Proprietary Rights are valid and enforceable, and
         each portion of the Purchased Proprietary Rights that is registered
         with or issued by a governmental or regulatory authority has been duly
         registered with, filed in or issued by the appropriate governmental or
         regulatory authority and each such registration or issuance is valid
         and remains in full force and effect, and all applications therefor
         that are pending are in good standing and without challenge of any
         kind. Company has taken all actions reasonably necessary to protect
         each item of the Purchased Proprietary Rights, and has not taken any
         action that would impair or otherwise adversely affect its rights in
         the Purchased Proprietary Rights.

         (iv) Company has the sole and exclusive right to bring actions for
         infringement or unauthorized use of the Purchased Proprietary Rights,
         and to the knowledge of Company and each Shareholder, there is no basis
         for any such action.

         (v) Schedule A contains an accurate and complete list of all of
         Company's material proprietary rights, including all: trademarks,
         service marks, logos, trade dress and trade names (including all
         assumed or fictitious names under which Company is conducting the
         Business or has within the previous five years conducted the Business),
         whether registered or unregistered, and pending applications to
         register the foregoing; patents, patent applications, continuations,
         continuations-in-part, extensions, divisions, inventions (whether or
         not patentable) or improvements thereto and licenses thereof; Trade
         Secrets (as defined below); computer software; Copyrights (as defined
         below); operating rights; other licenses and permits, and other similar
         intangible property and rights relating to the products or business of
         Company, except for off-the-shelf software and licenses implied in the
         sale of such software.

         (vi) The "Purchased Proprietary Rights" include, without limitation:
         (i) all rights to the inventions disclosed and described in the Patent
         (including improvements, continuations, continuations-in-part,
         extensions or divisions thereof); (ii) all rights to the inventions
         disclosed and described in the Patent Application (including
         improvements, continuations, continuations-in-part, extensions or
         divisions thereof); (iii) all rights to the inventions disclosed and
         described in the expired Provisional Patent Application; (iv) all trade
         secrets, inventions, discoveries, know-how, formulas, processes,
         concepts, proprietary product designs, proprietary technical
         documentation or information, and source and object code for any
         computer software programs related to these inventions, including those
         described on Schedule A attached hereto or otherwise used in the
         Business (collectively, the "Trade Secrets"); (iv) the trademark and
         trade name "Hyperion Amplification," the logo associated therewith, and
         the goodwill associated therewith (collectively, the "Trade Name"); (v)
         any copyrights or copyrightable works related to the Purchased
         Proprietary Rights or otherwise used in the Business (the "Copyrights")
         ; (vi) all income, royalties, damages and payments hereafter that may
         be due and/or payable under and with respect to the Patent, Patent
         Application, Trade Secrets, Trade Name and Copyrights, including,
         without limitation, payments under all licenses entered into in
         connection therewith and damages and payments for past or future
         infringements thereof, and the right to sue for past, present and
         future infringements thereof.

         (R) COMMON STOCK AND RELATED MATTERS. There are no contractual rights
of refusal with respect to the sale of the Company Stock hereunder. Shareholders
have not violated any applicable federal or state securities laws in connection
with the offer or sale of the Company Stock hereunder, and the sale of the
Company Stock hereunder does not require registration under the Securities Act
of 1933, as amended, or any applicable state securities laws.

         (S) CONTRACTS AND AGREEMENTS. Schedule 5(s) includes an accurate and
complete list of all contracts or agreements for goods or services to be
provided by Company, or for the provision of goods and services to Company, and
all customer deposits and advances attributable to orders or agreements to be
filled by Company, as of the date hereof.

                                      -7-
<PAGE>

         (T) INSURANCE. Company has maintained all required workmens'
compensation insurance, has paid all required unemployment compensation
payments, and since March 1, 1999, Company has maintained general public
liability insurance. Schedule 5(t) attached hereto lists and briefly describes
each insurance policy maintained by Company with respect to its properties,
assets and business, together with a claims history for the past five (5) years.

         (U) TITLE TO COMPANY STOCK. Shareholders are the record and beneficial
owners of, and have full right, title and interest in and to, the Company Stock
listed on the Schedule B opposite such Shareholder's name, free and clear of any
lien, charge or encumbrance. Such shares of Company Stock are not subject to any
voting trust agreement or other contract, agreement, arrangement, commitment or
understanding, including any such agreement, arrangement, commitment or
understanding restricting or otherwise relating to the voting, dividend rights
or disposition of such shares of Company Stock. At the Closing, such Shareholder
will transfer and deliver to Mergersub valid title to, and all of such
Shareholder's right, title and interest in and to, such shares of Company Stock,
free and clear of any lien, charge or other encumbrance or any claim in respect
of such shares of Company Stock.

         6. POST-CLOSING COVENANTS OF MERGERSUB AND COMPANY.

         (A) From and after the Closing, Mergersub shall keep and preserve all
books, records, information and data transferred to Mergersub hereunder for a
period of not less than six (6) years after the Closing and provide Company with
reasonable access thereto to the extent any or all of same is needed by Company
for tax, accounting or litigation purposes.

         (B) Company and Shareholders agree that after the Closing they will not
use the trade name "Hyperion" (either alone or together with other names or
words) or license other people to use such names in the Business.

         (C) Until the second anniversary of the Closing Date, Mergersub shall
not sell any of the Purchased Proprietary Rights until five business day after
Mergersub delivers an offer notice (the "Offer Notice") to Joel A. Butler
setting forth the proposed Purchased Proprietary Rights to be sold and the
proposed price thereof. Joel Butler may elect (on behalf of himself or any of
the Shareholders) to purchase all of the Purchased Proprietary Rights specified
in the Offer Notice at the price specified therein by delivering written notice
of such election within five business days after its receipt of the Offer
Notice. If any of the Shareholders have elected to purchase the Purchased
Proprietary Rights from Mergersub, the sale of such Purchased Proprietary Rights
shall be consummated as soon as practical after the delivery of the election
notice to Mergersub, but in any event within ten business days after Mergersub's
receipt of the election notice. If Shareholders do not elect to purchase all of
the Purchased Proprietary Rights being offered, Mergersub may, at any time
within 60 business days after the expiration of the fifth business day following
delivery of the Offer Notice, sell such Purchased Proprietary Rights to one or
more third parties at an aggregate price no less than the price specified in the
Offer Notice and on other terms no more favorable, in the aggregate, to the
transferees thereof than set forth in the Offer Notice. Any Purchased
Proprietary Rights not sold within such period shall be reoffered pursuant to
this Section 6(c) prior to any subsequent sale. The provisions of this Section
6(c) shall not apply to a sale of substantially all of the assets of Mergersub
or Purchaser or a transfer of the Purchased Proprietary Rights to an affiliate
of Mergersub.

         (D) The parties hereto will (x) use their respective reasonable efforts
to cause the Merger to qualify as a reorganization under Section 368(a) of the
Code and (y) file their respective income tax returns for 2004 and make any
other required filings in accordance with such treatment. Shareholders shall
prepare at their expense (and the Mergersub shall review) all income tax returns
for Company for the stub period ending on the Closing Date, and Shareholders
shall pay all amounts due under such returns.

         (E) Promptly after Closing, Mergersub shall qualify to do business as a
foreign corporation in the State of Missouri.

         (F) Promptly after Closing, the parties hereto shall cause Mergersub to
be the owner of record of the Purchased Proprietary Rights in the records of all
applicable government offices and agencies, including without limitation the
United States Patent and Trademark Office.

                                      -8-
<PAGE>

         7. INDEMNIFICATION.

         (A) Shareholders, jointly and severally, shall indemnify and hold
Purchaser and Mergersub harmless from and against all damages, losses,
liabilities, costs and expenses, including without limitation reasonable
attorneys' fees and litigation expenses and costs, arising out of or resulting
from (i) any representation or warranty made by the Shareholders in this
Agreement being untrue or incorrect; (ii) any material failure by the
Shareholders to timely observe or perform all covenants and agreements set forth
herein; (iii) any brokers' fees incurred by the Shareholders or Company as
described in Section 9(e); or (iv) any liabilities of Company. All
indemnification owing to Purchaser and Mergersub hereunder shall be due and
payable upon demand and, in the discretion of Purchase or Mergersub, as
applicable, may also be recovered by setoff against amounts payable to any
Shareholder hereunder.

         (B) Purchaser and Mergersub shall indemnify Shareholders, and hold them
harmless from and against, all damages, losses, liabilities, costs and expenses,
including without limitation reasonable attorneys' fees and litigation expenses
and costs arising out of or resulting from any material failure of Purchaser or
Mergersub to observe or perform its covenants and agreements set forth in this
Agreement. All indemnification owing to Shareholders shall be due and payable
upon demand.

         (C) Each of the representations and warranties made by Shareholders in
this Agreement, shall survive after the Closing Date, notwithstanding any
investigation at any time made by or on behalf of any party.

         (D) Purchaser or Mergersub shall provide prompt notice ("Claim Notice")
of any claim under Section 7(a) to Company describing the claim, the amount
thereof (if known and quantifiable), and the basis thereof; provided, however,
that failure to give prompt notice shall bar recovery of indemnification only if
and to the extent the failure to give such timely notice resulted in material
prejudice to the ability of Company to defend and respond to such claim.

         (E) Purchaser or Mergersub may at any time set off any amount for which
Shareholders are responsible under Section 7 against any payments or other
amounts owed from Purchaser or Mergersub to Shareholders pursuant to the
provisions hereof or otherwise owing to any of the Shareholders. The amount to
be set off (the "Set Off Amount") shall be (x) the full amount of the claim made
in the Claim Notice if the Shareholders either agreed to such amount or failed
to respond to such Claim Notice in writing within ten (10) business days from
the date of receipt by the Shareholders of such Claim Notice (the "Contest
Period") or (y) if such claim is contested by the Shareholders prior to the end
of the Contest Period, the amount of the claim that is either agreed to by the
parties or the amount of any final, non-appealable judgment on such claim, in
each case together with interest thereon at a rate of 7% per annum from the date
on which the Set Off Amount is determined through the date of payment.

         8. ACQUISITION OF SHARES.

         (A) Shareholders represent that the Shares to be received pursuant to
Section 2(a) will be delivered directly to Shareholders at the Closing.

         (B) Each Shareholder acknowledges (x) the Shares to be delivered
pursuant to this Agreement will be "restricted securities" for purposes of the
Federal securities laws and thus will be transferable only pursuant to (i)
public offerings registered under the Securities Act of 1933, as amended (the
"Securities Act"), (ii) Rule 144 or Rule 144A of the Securities and Exchange
Commission (or any similar rule or rules then in force) if such rule is
available and (iii) subject to the conditions specified in Section 8(c) below,
any other legally available means of transfer, and (y) a legend will be placed
on the certificates for the Shares issued hereunder in accordance with Section
8(e) below.

         (C) In connection with the transfer of any Shares (other than a
transfer described in Section 8(b)(i) or (ii) above), the holder thereof shall
deliver written notice to Purchaser describing in reasonable detail the transfer
or proposed transfer, together with an opinion of counsel which (to Purchaser's
reasonable satisfaction) is knowledgeable in securities law matters to the
effect that such transfer of Shares may be effected without registration of such
Shares under the Securities Act.

         (D) Each Shareholder hereby represents that Shareholder (i) is
acquiring the Shares acquired pursuant hereto for Shareholder's own account with
the present intention of holding such securities for purposes of investment, and
that Shareholder has no intention of selling such securities in a public
distribution in violation of the federal securities laws or any applicable state
securities laws; provided that nothing contained herein shall prevent each
Shareholder and subsequent holders of Shares from transferring such securities
in compliance with the provisions of this Section 8; (ii) is an "accredited
investor" as that term is defined in Rule 501 of Regulation D under the
Securities Act or has designated a "purchaser representative," (iii) either
alone or together with Shareholder's purchaser representative, (x) is a
sophisticated investor, has had prior experience with investments of a similar
nature, and (y) has knowledge and experience in financial and business matters
such that Shareholder is capable of evaluating the merits and risks of an
investment in the Shares, and (iv) has received all material documents, records
and books pertaining to Purchaser and the Shares which Shareholder has requested

                                      -9-
<PAGE>

(including but not limited to filings by Purchaser with the Securities and
Exchange Commission under the Securities Exchange Act of 1934, as amended), and
has been given an opportunity to make any further inquiries of Purchaser and its
representatives that Shareholder desires to make and that each such inquiry has
been answered, or requested information provided, to Shareholder's satisfaction.
Each Shareholder understands that Purchaser has a limited operating history and
that an investment in the Shares involves a high degree of risk.

         (E) Each certificate or instrument representing Shares shall be
imprinted with a legend (in addition to any legend pursuant to Section 2(a)
above) in substantially the following form:

             "THE SHARES OF COMMON STOCK REPRESENTED BY THIS CERTIFICATE HAVE
             NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED
             (THE "1933 ACT"), OR ANY STATE SECURITIES ACT, AND MAY NOT BE SOLD,
             PLEDGED, TRANSFERRED OR DISPOSED OF UNLESS THEY ARE REGISTERED
             UNDER THE 1933 ACT AND ANY APPLICABLE STATE SECURITIES ACT OR AN
             EXEMPTION FROM REGISTRATION IS AVAILABLE."

         9. MISCELLANEOUS PROVISIONS.

         (A) NOTICES. All notices, requests, demands or other communications
which may be or are required or permitted to be served or given hereunder (in
this Section collectively called "Notices") shall be in writing and shall be
hand delivered, sent by registered or certified mail, return receipt requested,
postage prepaid, or by a nationally recognized overnight delivery service, or
via facsimile, to the parties hereto at the address or facsimile number listed
below (provided that, for a facsimile, a copy is also sent promptly by U.S.
mail, certified mail or overnight delivery service):

         If to Company or Shareholders:
         ------------------------------
         c/o Joel Butler, at his most recent home address maintained within
records of Purchaser.

         If to Purchaser or Mergersub:
         ----------------------------
         SLS International, Inc.
         3119 South Scenic
         Springfield, MO  65807
         Attn:  President
         Fax:  (417)883-2723

         with a copy to:
         Jeff Mattson
         Freeborn & Peters, LLP
         311 S. Wacker Dr.
         Suite 3000
         Chicago, IL  60606
         Fax:  (312)360-6597

Either party may, by Notice given as aforesaid, change its address for all
subsequent Notices. Notices shall be deemed given on the date delivered.

         (B) NO MODIFICATION. This Agreement may not be modified, altered or
rescinded, or any rights hereunder waived, except by written agreement signed by
the parties hereto, or signed by the party charged with the waiver in the case
of a waiver.

         (C) BINDING AGREEMENT. This Agreement shall be binding upon and inure
to the benefit of the parties hereto and the respective heirs, beneficiaries,
personal representatives, successors and assigns. There are no third-party
beneficiaries to this Agreement.

         (D) ASSIGNMENT. Neither this Agreement nor any of the rights, interests
or obligations hereunder shall be assigned by any of the parties hereto without

                                      -10-
<PAGE>

the prior consent of the other parties, except that after the Closing, Purchaser
and Mergersub may each assign its rights (but if so must also delegate its
duties) to any of its affiliates or to any person or entity who acquires all or
substantially all of the assets of Purchaser or Mergersub.

         (E) BROKER FEES. Shareholders shall be responsible for any commissions,
fees or other amounts payable to a broker, finder, agent or other person or
entity engaged by Company or Shareholders which are due and payable as a result
of this Agreement and/or the transactions contemplated hereby.

         (F) SURVIVAL. Time is of the essence for all provisions hereof. All
representations, warranties and covenants shall survive Closing hereunder.

         (G) FURTHER ASSURANCES. At any time and from time to time after the
Closing, upon reasonable request of Purchaser or Mergersub, Company and
Shareholders shall do, execute, acknowledge and deliver such further acts,
assignments, transfers, conveyances and assurances as may be reasonably required
for the more complete consummation of the transactions contemplated herein.

         (H) GOVERNING LAW. This Agreement shall be governed by and construed
and enforced in accordance with the laws of the State of Missouri, without
regard to conflicts of laws principles that would cause any other state's laws
to apply.

         (I) HEADINGS AND CAPTIONS. The captions set forth in this Agreement are
solely for the convenience of the parties hereto and shall not control or affect
the meaning or construction of this Agreement.

         (J) SEVERABILITY. If any term or provision of this Agreement is found
by a court of competent jurisdiction to be unenforceable, in whole or in part,
the rest and remainder of such provision and this Agreement shall be and remain
enforceable to the fullest extent permitted by law.

         (K) CONFIDENTIALITY; PUBLICITY. Except as may be required by law, rule
or regulation or as otherwise permitted or expressly contemplated herein,
neither Shareholders nor their agents or representatives shall disclose to any
third party the subject matter or terms of, or negotiations relating to, this
Agreement without the prior consent of Purchaser. In addition, no press release
or other public announcement related to this Agreement or the transactions
contemplated hereby will be issued by any of such persons hereto without the
prior approval of Purchaser.

         (L) COUNTERPARTS. This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original, but all of which taken
together shall constitute one and the same instrument. Confirmation of execution
by electronic transmission of a facsimile signature page shall be binding upon
any party so confirming.

         (M) ENTIRE AGREEMENT. This Agreement, along with the Schedules and
Exhibits hereto, sets forth all of the terms, agreements and representations
among the parties hereto with respect to the subject matter hereof, and
supersedes all prior and contemporaneous agreements and understandings.

         (N) TERMINATION OF ASSET PURCHASE AGREEMENT. Upon execution of this
Agreement by the parties hereto, the Asset Purchase Agreement, and each of the
parties' rights and obligations thereunder, shall be terminated in all respects
with no further action.

                       [SIGNATURES ON THE FOLLOWING PAGE]

                                      -11-
<PAGE>

         IN WITNESS WHEREOF, the parties hereto, intending to be bound hereby,
have caused this Merger Agreement to be executed the day and year first above
written.

                                   PURCHASER:

                                   SLS INTERNATIONAL, INC.

                                   ---------------------------------------------
                                   By:
                                       -----------------------------------------
                                   Its:
                                       -----------------------------------------

                                   MERGERSUB:

                                   EVENSTAR MERGERSUB, INC.

                                   ---------------------------------------------
                                   By: John Gott
                                   Its: President

COMPANY:

EVENSTAR, INC.

-----------------------------------
By:
    -------------------------------
Its:
    -------------------------------

SHAREHOLDERS:

-----------------------------------
JOEL A. BUTLER

-----------------------------------
DAVID L. BUTLER

-----------------------------------
PATRICK D. BUTLER

                                      -12-
<PAGE>

                         LIST OF EXHIBITS AND SCHEDULES
                         ------------------------------

Exhibit A           Articles of Merger (Nevada)
Exhibit B           Certificate of Merger (Kansas)
Exhibit C           Joel Butler Employment Agreement

Schedule A          Purchased Proprietary Rights
Schedule B          Shareholders
Schedule 5(e)       Financial Statements
Schedule 5(g)       Absence of Certain Changes
Schedule 5(p)       Permits
Schedule 5(s)       Contracts and Agreements
Schedule 5(t)       Insurance

                                      -13-Exhibit 10.2

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (this "Agreement") is made as of March 12,
2004, between SLS International, Inc., a Delaware corporation (the "Company"),
and Joel A. Butler ("Executive").

         In consideration of the mutual covenants contained herein and other
good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

         1. Employment. The Company shall employ Executive, and Executive hereby
accepts employment with the Company, upon the terms and conditions set forth in
this Agreement for the period beginning on the date hereof and ending on the
Termination Date, as defined in Section 4 hereof (the "Employment Period").

         2. Position and Duties.

         (a) During the Employment Period, Executive shall serve as Director of
the Company's electronics division ("Division") and shall be responsible for
managing the day-to-day business and affairs of the Division; provided that
during the Employment Period the Company may change Executive's position and
associated duties and responsibilities as may be reasonably required pursuant to
changes in the Company's business, strategy or implementation of such strategy.

         (b) Executive shall initially report to the Company's President.
Executive shall devote his best efforts and substantially all of his time,
attention, energy and skill (except for permitted vacation periods, periods of
illness or other incapacity) to performing his duties hereunder.

         (c) For purposes of this Agreement, all references to "Company" shall
include any corporation of which the securities having a majority of the voting
power in electing directors are, at the time of determination, owned by the
Company, directly or through one or more subsidiaries.

         3. Base Salary and Benefits.

         (a) Executive's base salary shall be $90,000 per annum (the "Base
Salary") through the Expiration Date (as defined in Section 4(a)), (i) $70,000
of which shall be payable in regular installments in accordance with the
Company's general payroll practices (but at least monthly) and (ii) $20,000 (the
"Deferred Portion") of which shall be deferred each year and payable on the

                                       1
<PAGE>

Expiration Date, in each case subject to required withholding and the terms
hereof. The Deferred Portion attributable to Executive's first year of
employment with the Company shall be deposited into escrow with counsel to the
Company on the first anniversary of the date of this Agreement (the "Escrow").
In the event Executive is still an employee of the Company in good standing on
the Expiration Date, Executive shall receive the Deferred Portion on the
Expiration Date, consisting of (i) the Escrow and (ii) a single lump-sum payment
of $20,000 from the Company. In the event Executive's employment is terminated
by the Company without Cause or by Executive with Good Reason prior to the
Expiration Date, the Company shall pay, and counsel for the Company shall
release from escrow, if applicable, to Executive the Deferred Portion accrued
through the date of termination. In addition, during the Employment Period,
Executive shall be entitled to participate in all of the Company's employee
benefit programs for which employees of the Company are generally eligible.

         (b) The Company shall reimburse Executive for all reasonable expenses
incurred by Executive in the course of performing Executive's duties under this
Agreement which are consistent with the Company's policies in effect from time
to time for senior executives with respect to travel, entertainment and other
business expenses, subject to the Company's requirements for its executives with
respect to reporting and documentation of such expenses.

         (c) The Company shall reimburse Executive (or pay directly) for his
actual, reasonable and documented relocation expenses including all reasonable
out-of-pocket expenses of moving his family and personal belongings to a new
home in the Springfield, Missouri area, subject to the advance written approval
of such relocation expenses by the Company. Executive shall be solely
responsible for the payment of any income tax liability, whether federal or
state, in respect of moving and relocation expenses reimbursed to him by the
Company or paid directly by the Company.

         (d) On the date hereof, Executive will receive an option to purchase
100,000 shares of the Company's common stock ("Closing Option") at a price equal
to the Market Value (as defined below) of the Company's common stock on the date
of this Agreement. The Closing Option shall be in a form substantially as
attached hereto as Exhibit A. Further, on each anniversary of the Executive's
first day of employment until the termination of Executive's employment, the
Company shall issue to Executive an option to acquire the Company's common stock
(each, an "Annual Bonus Option") at an exercise price per share equal to the
Market Value of the Company's common stock on the applicable anniversary date.
Each Annual Bonus Option shall be in a form substantially as attached hereto as
Exhibit A. The number of shares issuable pursuant to an Annual Bonus Option
shall equal the net profit (as reasonably determined by the Company in
accordance with generally accepted accounting principles and other reasonable
assumptions and estimates necessary to make the determination), in the year
ending on such anniversary date, of the Company's products that incorporate the
Purchased Proprietary Rights (as defined in that certain Merger Agreement, made
as of the date hereof, among Evenstar, Inc., a Kansas corporation, Evenstar
Mergersub, Inc., a Nevada corporation, Executive, David L. Butler, Patrick D.

                                       2
<PAGE>

Butler and the Company) multiplied by 5% and divided by the option exercise
price per share. For example, if the net profits with respect to such products
in a year ending on the first anniversary date equal $2 million and the Market
Value on the anniversary date is $5, the exercise price per share shall be $5
(i.e., the Market Value) and the number of shares issuable pursuant to the first
Annual Bonus Option shall be 20,000 shares of common stock (2 million x 5%/$5).

         "Market Value" of a share of the Company's common stock shall be the
average closing price of the common stock on all securities exchanges on which
the common stock may at the time be listed, or, if there have been no sales on
any exchange on any day, the average of the highest bid and lowest asked prices
on all such exchanges at the end of such day, or, if on any day such security is
not so listed, the average of the representative bid and asked prices quoted in
the NASDAQ System as of 4:00 P.M., New York time, or, if on the day such
security is not quoted in the NASDAQ System, the average of the highest bid and
lowest asked prices on such day in the domestic over-the-counter market as
reported by the National Quotation Bureau, Incorporated, or any similar
successor organization, in each such case averaged over a period of 10 trading
days immediately preceding the day as of which "Market Value" is being
determined. If at any time the common stock is not listed on any securities
exchange or quoted in the NASDAQ System or the over-the-counter market, "Fair
Market Value" shall be determined in the reasonable, good faith discretion of
the Company's board of directors (taking into account all factors relevant to
the value of the common stock, including, without limitation, the most recent
price at which the common stock was sold to a third party).

         4. Term and Termination.

         (a) This Agreement shall terminate on the second anniversary of the
date hereof (the "Expiration Date") unless terminated earlier (i) by Executive's
resignation with or without Good Reason, (ii) by Executive's death or
Disability, or (iii) by the Company with or without Cause. The date on which
Executive's employment with the Company is terminated is referred to herein as
the "Termination Date."

                  (b) (i) If Executive's employment with the Company is
         terminated by the Company without Cause or by Executive with Good
         Reason, Executive shall be entitled to receive (x) Executive's Base
         Salary through the later of (A) the Termination Date or (B) the first
         anniversary of the date of this Agreement and (y) reimbursement of
         relocation expenses set forth in Section 3(c).

                  (ii) If Executive's employment with the Company is terminated
         for any reason other than as described in item (i) above, Executive
         shall be entitled to receive Executive's Base Salary through the
         Termination Date.

                                       3
<PAGE>

                  (iii) If Executive's employment with the Company is terminated
         prior to the first anniversary of this Agreement for Cause by the
         Company or by Executive without Good Reason, Executive shall promptly
         refund to the Company all relocation expenses previously reimbursed or
         paid directly by the Company pursuant to Section 3(c).

         (c) All of Executive's rights to benefits shall cease upon the
Termination Date.

         (d) For purposes of this Agreement, the following terms shall have the
meanings set forth below:

         "Cause" shall mean (i) the conviction of Executive for a felony or a
crime involving moral turpitude or the plea of guilty or no lo contendere by
Executive to a charge of any such crime, (ii) Executive's theft or embezzlement,
or attempted theft or embezzlement, of money or property of the Company, (iii)
Executive's perpetration or attempted perpetration of fraud, or Executive's
participation in a fraud or an attempted fraud, on the Company or Executive's
unauthorized appropriation or attempted appropriation of any tangible or
intangible material assets or property of the Company, (iv) Executive's
dishonesty with respect to any matter concerning the Company or (v) Executive's
substantial and repeated failure to perform Executive's duties hereunder in
accordance with the reasonable directions of the Company.

         "Disability" shall mean the inability, due to illness, accident,
injury, physical or mental incapacity or other disability, of Executive to carry
out effectively Executive's duties and obligations to the Company or to
participate effectively and actively in the management of the Company for a
period of at least 60 consecutive days or for shorter periods aggregating at
least 90 days (whether or not consecutive) during any twelve-month period, as
determined in the reasonable and good faith judgment of the Company.

         "Good Reason" shall mean the Company's willful and material breach of
this Agreement.

         (e) A termination of this Agreement pursuant to its terms on the
Expiration Date shall not, in and of itself, constitute a termination of
Executive's employment with the Company. At such time, unless the Company or the
Executive terminate Executive's employment with the Company, Executive shall
become an employee at-will of the Company.

         5. Confidential Information, Inventions Assignment.

         (a) Executive acknowledges that the information, observations and data
obtained by Executive while employed by the Company concerning the business or
affairs of the Company reasonably considered of a confidential nature

                                       4
<PAGE>

("Confidential Information") are the property of the Company. Therefore,
Executive agrees that Executive shall not disclose to any unauthorized person or
use for Executive's own purposes any Confidential Information without the prior
written consent of the board of directors of the Company, unless and to the
extent that the aforementioned matters become generally known to and available
for use by the public other than as a result of Executive's acts or omissions,
or is otherwise known to Executive from independent sources prior to or outside
of Executive's employment with the Company. Executive shall deliver to the
Company at the termination of the Employment Period, or at any other time the
Company may reasonably request, all memoranda, notes, plans, records, reports,
computer tapes, printouts and software and other documents and data (and copies
thereof) relating to the Confidential Information or the business of the Company
which Executive may then possess or have under Executive's control. Nothing
herein shall prohibit Executive's disclosure of Confidential Information as
directed by judicial, administrative or other governmental law, rule, regulation
or order provided that Executive shall, to the extent possible, give immediate
notice to the Company of any disclosure of Confidential Information so required
so that the Company may seek a protective order.

         (b) "Inventions and Intellectual Property" includes, but is not limited
to, inventions, developments, discoveries, processes, designs, improvements,
audio speaker systems or components, and other intellectual property created or
developed by Executive. Executive hereby assigns to the Company all of his
right, title and interest in all Inventions and Intellectual Property that
Executive develops during his employment by the Company, including all
improvements Executive makes to existing products, processes, or intellectual
property. Promptly upon the development of any Invention or Intellectual
Property or improvement thereon, Executive will disclose the same to the Company
and sign such reasonable documents as the Company may request to confirm the
assignment of his rights therein. Also, if requested by the Company, Executive
will give the Company all assistance it reasonably requires (at the Company's
expense) to file for, maintain, protect and enforce the Company's patents,
copyrights, trademarks, trade secrets and other rights in Inventions and
Intellectual Property created or developed by Executive during his employment.
This Section does not apply to an Invention or Intellectual Property for which
no equipment, supplies, facility or trade secret information of the Company was
used and which was developed entirely on his own time, unless (a) the Invention
or Intellectual Property relates to (i) the business of the Company, or (ii) the
Company's actual or demonstrably anticipated research or development, or (b) the
Invention or Intellectual Property results from any work performed by Executive
for the Company. Executive represents that Executive has listed on the attached
Exhibit B all the unpatented and unregistered copyrightable inventions and
intellectual property (other than the Purchased Proprietary Rights) developed by
Executive prior to his employment with the Company and such inventions and
intellectual property listed on the attached Exhibit B has no use as an audio
product.

         6. Non-Compete, Non-Solicitation.

                                       5
<PAGE>

         (a) In further consideration of the compensation to be paid to
Executive hereunder, Executive acknowledges that in the course of Executive's
employment with the Company Executive shall become familiar with the Company's
trade secrets and with other Confidential Information concerning the Company and
that Executive's services shall be of special, unique and extraordinary value to
the Company. Therefore, Executive agrees that, during Executive's employment by
the Company and for two years thereafter (the "Noncompete Period"), Executive
shall not directly or indirectly own any interest in, manage, control,
participate in, consult with, render services for, or in any manner engage in
any business competing with the businesses of the Company, as such businesses
exist or are in process on the date of the termination of Executive's
employment, within any geographical area in which the Company engages or plans
to engage in such businesses. In the event that Executive's employment with the
Company is terminated without Cause by the Company or with Good Reason by
Executive, the Noncompete Period shall terminate upon the one year anniversary
of the Termination Date. Nothing herein shall prohibit Executive from being a
passive owner of not more than 2% of the outstanding stock of any class of a
corporation which is publicly traded, so long as Executive has no active
participation in the business of such corporation.

         (b) During the Noncompete Period, Executive shall not directly or
indirectly through another entity (i) induce or attempt to induce any employee
of the Company to leave the employ of the Company, or in any way interfere with
the relationship between the Company and any employee thereof, (ii) hire any
person who was an employee of the Company at any time during the Employment
Period (unless such employee was terminated by the Company), or (iii) induce or
attempt to induce any customer, supplier, licensee, licensor, franchisee or
other business relation of the Company to cease doing business with the Company,
or in any way interfere with the relationship between any such customer,
supplier, licensee or business relation and the Company.

         (c) If, at the time of enforcement of this Section 6, a court shall
hold that the duration, scope or area restrictions stated herein are
unreasonable under circumstances then existing, the parties agree that the
maximum duration, scope or area reasonable under such circumstances shall be
substituted for the stated duration, scope or area and that the court shall be
allowed to revise the restrictions contained herein to cover the maximum period,
scope and area permitted by law. Executive agrees that the restrictions
contained in this Section 6 are reasonable.

         (d) In the event of the breach or a threatened breach by Executive of
any of the provisions of this Section 6, the Company, in addition and
supplementary to other rights and remedies existing in its favor, may apply to
any court of law or equity of competent jurisdiction for specific performance
and/or injunctive or other relief in order to enforce or prevent any violations
of the provisions hereof (without posting a bond or other security). In
addition, in the event of an alleged breach or violation by Executive of this
Section 6, the Noncompete Period shall be tolled until such breach or violation
has been duly cured.

                                       6
<PAGE>

         7. Mutual Representations. Executive and the Company each represents
and warrants to the other that (i) the execution, delivery and performance of
this Agreement by such party do not and shall not conflict with, breach, violate
or cause a default under any contract, agreement, instrument, order, judgment or
decree to which such party is a party or by which it is bound; (ii) such party
is not a party to or bound by any employment agreement, noncompete agreement or
confidentiality agreement with any other person or entity that would be breached
or violated by such party's execution and delivery or performance of this
Agreement; and (iii) upon the execution and delivery of this Agreement by such
party, this Agreement shall be the valid and binding obligation of such party,
enforceable against such party in accordance with its terms. Such party hereby
acknowledges and represents that it has consulted with independent legal counsel
regarding Executive's rights and obligations under this Agreement and that
Executive fully understands the terms and conditions contained herein.

         8. Survival. Sections 5 and 6 and Sections 9 through 16 shall survive
and continue in full force in accordance with their terms notwithstanding any
termination of this Agreement.

         9. Notices. Any notice provided for in this Agreement shall be in
writing and shall be either personally delivered, or mailed by first class mail,
return receipt requested, to the recipient at the address below indicated:

         Notices to Executive: shall be sent to Executive's most recent home
         --------------------- address maintained within records of the Company.

         Notices to the Company:
         -----------------------

         SLS International, Inc.
         3119 South Scenic
         Springfield, MO  65807
         Attention: President

or such other address or to the attention of such other person as the recipient
party shall have specified by prior written notice to the sending party. Any
notice under this Agreement shall be deemed to have been given when so delivered
or three (3) days after so mailed.

         10. Severability. Whenever possible, each provision of this Agreement
shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement is held to be invalid,
illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect
any other provision or any other jurisdiction, but this Agreement shall be

                                       7
<PAGE>

reformed, construed and enforced in such jurisdiction as if such invalid,
illegal or unenforceable provision had never been contained herein.

         11. Complete Agreement. This Agreement embodies with respect to the
subject matter hereof the complete agreement and understanding among the parties
and supersedes and preempts with respect to the subject matter hereof any prior
understandings, agreements or representations by or among the parties, written
or oral, which may have related to the subject matter hereof in any way.

         12. No Strict Construction. The language used in this Agreement shall
be deemed to be the language chosen by the parties hereto to express their
mutual intent, and no rule of strict construction shall be applied against any
party, it being understood that Section 6(c) contemplates that a court of
competent jurisdiction shall be entitled to "blue pencil" or conform the express
language of Section 6(a) if necessary in order to comply with Missouri law.

         13. Counterparts. This Agreement may be executed in separate
counterparts, each of which is deemed to be an original and all of which taken
together constitute one and the same agreement.

         14. Successors and Assigns. This Agreement is intended to bind and
inure to the benefit of and be enforceable by Executive, the Company and their
respective heirs, successors and assigns, except that (x) Executive may not
assign Executive's rights or delegate Executive's obligations hereunder without
the prior written consent of the Company and (y) other than in connection with
the sale of the Company (whether by merger, consolidation, sale of all of the
Company's stock or sale of all or substantially all of the Company's assets),
the Company may not assign its rights to Executive's services hereunder to any
third party.

         15. Choice of Law. All issues and questions concerning the
construction, validity, enforcement and interpretation of this Agreement shall
be governed by, and construed in accordance with, the laws of the State of
Missouri, without giving effect to any choice of law or conflict of law rules or
provisions (whether of the State of Missouri or any other jurisdiction) that
would cause the application of the laws of any jurisdiction other than the State
of Missouri.

         16. Amendment and Waiver. The provisions of this Agreement may be
amended or waived only with the prior written consent of the Company and
Executive, and no course of conduct or failure or delay in enforcing the
provisions of this Agreement shall affect the validity, binding effect or
enforceability of this Agreement.

                            [SIGNATURE PAGE FOLLOWS]

                                       8
<PAGE>

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

                             SLS INTERNATIONAL, INC.

                             By
                               -------------------------------------------------
                             Name: John M. Gott
                             Title:   President

                             ---------------------------------------------------
                             JOEL A. BUTLER

                                       9
<PAGE>

                                    EXHIBIT A
                                    ---------

                                     OPTION
                                     ------

         THE BOARD OF DIRECTORS of SLS International, Inc. (the "Company") has
authorized and approved the 2000 Stock Purchase and Option Plan ("2000 Plan").
The 2000 Plan provides for the grant of Options to employees including officers,
directors and consultants of the Company. Unless otherwise provided herein, all
defined terms shall have the respective meanings ascribed to them under the 2000
Plan.

         1. Grant of Option. Pursuant to authority granted to it under the 2000
Plan, the Administrator responsible for administering the 2000 Plan hereby
grants to Joel A. Butler, as an employee or consultant of the Company and as of
March __, 200_ ("Grant Date"), this Option to purchase up to ______________
shares of the Company's common stock, $.00l par value per share ("Shares").

         2. Character of Options. The Options granted herein are Non-Qualified
Stock Options.

         3. Exercise Price. The Exercise Price of this Option is $______ per
Share.

         4. Payment of Exercise Price. This Option may be exercised in whole or
in part by delivering to the Company your payment of the Exercise Price in cash,
or in such other form permitted by the 2000 Plan.

         [5. Term of Option. This Option shall be exercisable for a "Term" (a)
beginning on the earlier of (i) the second anniversary of the Grant Date or (ii)
the date of the termination without Cause or for Good Reason of your employment
with the Company and (b) expiring on the fifth anniversary of the Grant Date.
After such Term, this Option shall terminate. As used in this Option, "Cause"
and "Good Reason" shall have the meanings ascribed to them in your employment
agreement with the Company entered into on March ___, 2004.](1)

         [5. Term of Option. This Option shall be exercisable for a "Term"
beginning on the Grant Date and expiring on the fifth anniversary of the Grant
Date. After such Term, this Option shall terminate.](2)

         6. Limits on Transfer of Options. The Option granted herein shall not
be transferable by you otherwise than by will or by the laws of descent and
distribution, except for gifts to family members subject to any specific

----------
(1) Use this Section 5 in the Closing Option.
(2) Use this Section 5 in each Annual Bonus Option.

                                       10
<PAGE>

limitation concerning such gift by the Administrator in its discretion;
provided, however, that you may designate a beneficiary or beneficiaries to
exercise your rights and receive any Shares purchased with respect to any Option
upon your death. Each Option shall be exercisable during your lifetime only by
you or, if permissible under applicable law, by your legal representative. No
Option herein granted or Shares underlying any Option shall be pledged,
alienated, attached or otherwise encumbered, and any purported pledge,
alienation, attachment or encumbrance thereof shall be void and unenforceable
against the Company or any Affiliate.

         7. Termination of Employment or Consultancy. If your employment with
the Company is terminated, your Option and/or any unexercised portion, shall be
subject to the provisions below:

                  (a) Upon the termination of your employment with the Company,
         to the extent not theretofore exercised, your Option shall immediately
         terminate and shall no longer be exercisable; provided, however,

                  (i) if you shall die while in the employ of the Company or
         during the one (1) year period specified in clause (ii) below and at a
         time when you were entitled to exercise an Option as herein provided,
         your legal representative, or such Person who acquired such Option by
         bequest or inheritance or by reason of your death, may, not later than
         one (1) year from the date of death, exercise such Option, to the
         extent not theretofore exercised, in respect of any or all of such
         number of Shares specified by the Administrator in such Option; and

                  (ii) if your employment shall terminate by reason of your
         retirement (at such age upon such conditions as shall be specified by
         the Board of Directors), disability (as described in Section 22 (e) of
         the Code) or dismissal by the Company other than for Cause (as defined
         below), and while you are entitled to exercise such Option as herein
         provided, you shall have the right to exercise this Option, to the
         extent not theretofore exercised, in respect of any or all of such
         number of Shares as specified by the Administrator in such Option, at
         any time up to one (1) year from the date of termination of your
         employment by reason of retirement or dismissal other than for Cause or
         disability, provided, that if you die within such twelve (12) month
         period, subclause (i) above shall apply.

                  (b) If any Options granted hereunder shall be exercised by
         your legal representative if you should die or become disabled, or by
         any person who acquired any Options granted hereunder by bequest or
         inheritance or by reason of death of any such person, written notice of
         such exercise shall be accompanied by a certified copy of letters
         testamentary or equivalent proof of the right of such legal
         representative or other person to exercise such Options.

                                       11
<PAGE>

                  [(c) For all purposes of this Option, the term "for Cause"
         shall mean "Cause" as defined in your employment agreement with the
         Company entered into on March __, 2004.](3)

         8. Restriction; Securities Exchange Listing. All certificates for
shares delivered upon the exercise of Options granted herein shall be subject to
such stop transfer orders and other restrictions as the Administrator may deem
advisable under the 2000 Plan or the rules, regulations and other requirements
of the Securities and Exchange Commission and any applicable federal or state
securities laws, and the Administrator may cause a legend or legends to be
placed on such certificates to make appropriate reference to such restrictions.
If the Shares or other securities are traded on a national securities exchange,
the Company shall not be required to deliver any Shares covered by an Option
unless and until such Shares have been admitted for trading on such securities
exchange.

         9. Amendments to Options Herein Granted. The Options granted herein may
not be amended without your consent.

         10. Withholding Taxes. As provided in the 2000 Plan, the Company may
withhold from sums due or to become due to you from the Company an amount
necessary to satisfy its obligation to withhold taxes incurred by reason of the
disposition of the Shares acquired by exercise of the Options in a disqualifying
disposition (within the meaning of Section 421(b) of the Code), or may require
you to reimburse the Company in such amount.

         11. Receipt of 2000 Plan. You hereby acknowledge that you have received
and reviewed a copy of the 2000 Plan.

SLS INTERNATIONAL, INC.                              ---------------------------
                                                     Joel A. Butler

-----------------------------
By: John Gott, President

----------
(3) Use this Section 7(c) in each Annual Bonus Option.

                                       12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00063-of-00352.parquet"}]]