Document:

Prepared by MERRILL CORPORATION

EXHIBIT 10.4  

        [HPL Letterhead]  

September 26, 2001 

Mr. Mark
Milligan 

Dear
Mark, 

This
letter is to formalize our offer of employment to you at Heuristic Physics Laboratories, Inc. HPL is a rapidly growing company and offers good opportunities for professional growth to
persons with good background, creativity and motivation. We trust that you will bring a significant contribution to HPL and that you and the company will benefit from this new association. 

Our
offer is as follows: 

	

Position:	
 	

Vice President, Design for Manufacturability Division.
	

Salary:	
 	

$246,000 per year paid semi-monthly.
	

Bonus:	
 	

You will receive $120,000 signing bonus.

As of your second year of employment you will receive up to $120,000 as annual bonus (at the end of fiscal year), based upon meeting Corporate and Divisional objectives to be defined each year.
	

Start date:	
 	

September 28, 2001

In this position, you are entitled to the following benefits; please see enclosed information for further clarification: 

	1. Health Insurance	 	covered by LIFEGUARD or Kaiser
	2. Dental Insurance	 	covered by DELTA
	3. 401 k Plan	 	Next enrollment date is December, 2001
	4. Paid Company Vacation	 	10 working days
	5. Nine Paid Holidays	 	 

We
will also suggest to Board of Directors to grant you with additional 200,000 HPL stocks as part of HPL Technologies 2001 Equity Incentive Plan. Should the Board authorize the issuance of these
stock options and should you decide to receive them, these options will be issued subject to the terms of HPL Technologies 2001 Equity Incentive Plan. 

The
following documentation must be presented before becoming employed. 

	a)
	Copy
of Social Security Card

	b)
	Proof
of being a U.S citizen or if you are a resident, you must present a document to prove legal immigration status

	c)
	Copy
of Driver's License 

You
will also be required to submit the enclosed Employee Confidential Information and Inventions Agreement on your first day of employment. 

We
hope that you and the Company will find mutual satisfaction with your employment. All of us at HPL are very excited about your joining our team and look forward to a beneficial and fruitful
relationship. Nevertheless, employees have the right to terminate their employment at any time, with or without cause or notice, and the Company reserves for itself an equal right. Nothing in this
letter is intended to modify this at will employment relationship. 

This
letter/agreement and the "Employee Confidential Information and Inventions Agreement" contain the entire agreement with respect to your employment and supersede any prior or contemporaneous
representations or agreements. The terms of this offer may only be changed by written agreement, although the Company may from time to time, in its sole discretion, adjust the salaries and benefits
paid to you and its other employees, as well as reporting relationships, job titles and responsibilities. Should you have any questions with regard to any of the items indicated above, please call me.
Kindly indicate your consent to this employment agreement by signing and returning a copy of this letter and a completed "Employee Confidential Information and Inventions Agreement" to me by the first
day of your employment.

Sincerely
yours, 

	HEURISTIC PHYSICS LABORATORIES, INC.	 	I agree and accept this offer.
	

/s/  RITA RUBINSTEIN      
 Rita Rubinstein

VP of Administration & Human Resources	
 	

/s/  MARK MILLIGAN      
 Mark Milligan<Page>

                                                                  Exhibit 10.66

                                   AMENDMENT NO. 2
                   TO THE DEFERRED COMPENSATION AGREEMENT BETWEEN
                VARI-LITE INTERNATIONAL, INC. AND H. R. BRUTSCHE III

         This Amendment No. 2 effective as of January 1, 2002, is by and
between Vari-Lite International, Inc., (the "Company"), and H. R. Brutsche
III (the "Director").

                               W I T N E S S E T H:

         WHEREAS, the Company (formerly known as Vari-Lite Holdings, Inc.)
and the Director entered into a Deferred Compensation Agreement, dated July
1, 1995, as amended by Amendment No. 1 to the Deferred Compensation
Agreement, dated November 2, 1998 (as amended, the "Agreement"); and

         WHEREAS, the Company has recently suffered a decline in its
financial performance and management and the Board of Directors of the
Company have reviewed and made recommendations for reducing expenses of the
Company in order to improve the Company's financial performance; and

         WHEREAS, the Compensation Committee of the Board of Directors of the
Company (the "Compensation Committee") has determined that it is in the best
financial interest of the Company to amend the Agreement effective January 1,
2002 to reduce the monthly payments payable thereunder after December 31,
2001 to one-half of the current monthly payment amount and to extend the
payment period thereunder to December 31, 2005; and

         WHEREAS, the Director is the Chief Executive Officer of the Company
and a significant stockholder of the Company and agrees it is in the best
financial interest of the Company to consent to the amendment to his
Agreement proposed by the Compensation Committee;

         NOW, THEREFORE, in consideration of the foregoing, the Agreement
is hereby amended as follows:

Section 1 of the Agreement is hereby amended to read as follows:

1.       DEFERRED COMPENSATION AGREEMENT.  The Company agrees to pay $41,750
         per year, payable in substantially equal monthly installments on
         the first day of each month (the "Deferred Compensation Payments")
         to the Director (or if the Director dies, to his beneficiary as
         provided in Section 4(a) of the Agreement) during the Term (as
         hereinafter defined).

Section 2 of the Agreement is hereby amended to read as follows:

2.       TERM.  The Director (or his beneficiary in the case of his death)
         will be entitled to the Deferred Compensation Payments (in the amount
         determined pursuant to Section 1) for the period commencing on July 1,
         1995 and ending December 31, 2005 (the "Term"),

<Page>

         unless such payments terminate as the result of one of the terminating
         events set forth in Section 3 of this Agreement.

         IN WITNESS WHEREOF, the parties hereto have executed this Amendment
No. 2 to the Agreement as of this 28th day of December, 2001.

                                        COMPANY:

                                        VARI-LITE INTERNATIONAL, INC.

                                        By: /s/ Jerome L. Trojan III
                                           ------------------------------------
                                            Jerome L. Trojan III
                                            Vice President-Finance and Chief
                                            Financial Officer

                                        DIRECTOR:

                                         /s/ H. R. BRUTSCHE III
                                        ---------------------------------------
                                        H. R. BRUTSCHE III

                                        2<Page>

                                                                  Exhibit 10.67

                                   AMENDMENT NO. 2
                   TO THE DEFERRED COMPENSATION AGREEMENT BETWEEN
                VARI-LITE INTERNATIONAL, INC. AND JAMES H. CLARK, JR.

         This Amendment No. 2 effective as of January 1, 2002, is by and
between Vari-Lite International, Inc., (the "Company"), and James H. Clark,
Jr. (the "Director").

                               W I T N E S S E T H:

         WHEREAS, the Company (formerly known as Vari-Lite Holdings, Inc.)
and the Director entered into a Deferred Compensation Agreement, dated July
1, 1995, as amended by Amendment No. 1 to the Deferred Compensation
Agreement, dated November 2, 1998 (as amended, the "Agreement"); and

         WHEREAS, the Company has recently suffered a decline in its
financial performance and management and the Board of Directors of the
Company have reviewed and made recommendations for reducing expenses of the
Company in order to improve the Company's financial performance; and

         WHEREAS, the Compensation Committee of the Board of Directors of the
Company (the "Compensation Committee") has determined that it is in the best
financial interest of the Company to amend the Agreement effective January 1,
2002 to reduce the monthly payments payable thereunder after December 31,
2001 to one-half of the current monthly payment amount and to extend the
payment period thereunder to December 31, 2005; and

         WHEREAS, the Director is a significant stockholder of the Company
and agrees that it is in the best financial interest of the Company to
consent to the amendment to his Agreement proposed by the Compensation
Committee;

         NOW, THEREFORE, in consideration of the foregoing, the Agreement is
hereby amended as follows:

Section 1 of the Agreement is hereby amended to read as follows:

1.       DEFERRED COMPENSATION AGREEMENT.  The Company agrees to pay $41,750
         per year, payable in substantially equal monthly installments on
         the first day of each month (the "Deferred Compensation Payments")
         to the Director (or if the Director dies, to his beneficiary as
         provided in Section 4(a) of the Agreement) during the Term (as
         hereinafter defined).

Section 2 of the Agreement is hereby amended to read as follows:

2.       TERM.  The Director (or his beneficiary in the case of his death)
         will be entitled to the Deferred Compensation Payments (in the amount
         determined pursuant to Section 1) for the period commencing on July 1,
         1995 and ending December 31, 2005 (the "Term"),

<Page>

         unless such payments terminate as the result of one of the terminating
         events set forth in Section 3 of this Agreement.

         IN WITNESS WHEREOF, the parties hereto have executed this Amendment
No. 2 to the Agreement as of this 28th day of December, 2001.

                                        COMPANY:

                                        VARI-LITE INTERNATIONAL, INC.

                                        By: /s/ Jerome L. Trojan III
                                           ------------------------------------
                                            Jerome L. Trojan III
                                            Vice President-Finance and Chief
                                            Financial Officer

                                        DIRECTOR:

                                        By: /s/ James H. Clark, Jr.
                                          -------------------------------------
                                           James H. Clark, Jr.

                                        2

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00033-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00033-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00033-of-00352.parquet"}]]