Document:

<PAGE>   1
                                                                   EXHIBIT 10.18

                VARI-L COMPANY, INC. EMPLOYEE STOCK PURCHASE PLAN

                               AS OF JUNE 30, 2001

                              ARTICLE I. - PURPOSE

1.01.    PURPOSE.

         The Vari-L Company, Inc. Employee Stock Purchase Plan is intended to
provide a method whereby employees of Vari-L Company, Inc. (hereinafter referred
to, unless the context otherwise requires, as the "Company") will have an
opportunity to acquire a proprietary interest in the Company through the
purchase of shares of the Common Stock of the Company. It is the intention of
the Company to have the Plan qualify as an "Employee Stock Purchase Plan" under
Section 423 of the Internal Revenue Code of 1986, as amended (the "Code"). The
provisions of the Plan shall be construed so as to extend and limit
participation in a manner consistent with the requirements of that section of
the Code.

                           ARTICLE II. - DEFINITIONS

2.01.    BASE PAY.

         "Base Pay" shall mean regular straight-time earnings including payments
for overtime, shift premium, bonuses and other special payments, commissions and
other marketing incentive payments.

2.02.    COMMITTEE.

         "Committee" shall mean the individuals described in Article XI.

2.03.    EMPLOYEE.

         "Employee" means any person who is customarily employed on a full-time
or part-time basis by the Company and is regularly scheduled to work more than
20 hours per week.

                  ARTICLE III. - ELIGIBILITY AND PARTICIPATION

3.01.    INITIAL ELIGIBILITY.

         All individuals employed by the Company shall be eligible to
participate in offerings under the Plan.

<PAGE>   2

3.02.    LEAVE OF ABSENCE.

         For purposes of participation in the Plan, a person on leave of absence
shall be deemed to be an employee for the first 180 days of such leave of
absence and such employee's employment shall be deemed to have terminated at the
close of business on the 180th day of such leave of absence unless such employee
shall have returned to regular full-time or part-time employment (as the case
may be) prior to the close of business on such 180th day. Termination by the
Company of any employee's leave of absence, other than termination of such leave
of absence on return to full-time or part-time employment, shall terminate an
employee's employment for all purposes of the Plan and shall terminate such
employee's participation in the Plan and right to exercise any option.

3.03.    RESTRICTIONS ON PARTICIPATION.

         Notwithstanding any provisions of the Plan to the contrary, no employee
shall be granted an option to participate in the Plan:

         (a) if, immediately after the grant, such employee would own stock,
and/or hold outstanding options to purchase stock, possessing 5% or more of the
total combined voting power or value of all classes of stock of the Company (for
purposes of this paragraph, the rules of Section 424(d) of the Code shall apply
in determining stock ownership of any employee); or

         (b) which permits the employee's rights to purchase stock under all
employee stock purchase plans of the Company to accrue at a rate which exceeds
$25,000 in fair market value of the stock for each calendar year.

3.04.    COMMENCEMENT OF PARTICIPATION.

         An eligible employee may become a participant by completing an
authorization for a payroll deduction on the form provided by the Company and
delivering it to the Company's Vice President of Finance on or before the date
set therefor by the Committee, which date shall be prior to the Offering
Commencement Date for the Offering (as such terms are defined below). Payroll
deductions for a participant shall commence on the applicable Offering
Commencement Date when his authorization for a payroll deduction becomes
effective and shall end on the Offering Termination Date of the Offering to
which such authorization is applicable unless sooner terminated by the
participant as provided in Article VIII.

                                       2
<PAGE>   3

                            ARTICLE IV. - OFFERINGS

4.01.    ANNUAL OFFERINGS.

         The Plan was originally implemented by six annual offerings of the
Company's Common Stock beginning on the 10th day of March, 1995 and the 1st day
of January in each of the years 1996, 1997, 1998, 1999 and 2000, each offering
terminating on December 31 of the same year (the "Pre-2001 Offerings"). The
Company will make four additional annual offerings of the Company's Common Stock
(the "Offerings") beginning on March 16, 2001, July 1, 2001, January 1, 2002,
and July 1, 2002. The maximum number of shares issued in the respective years
shall be:

         o From January 1, 1999 to December 31, 1999: 189,216 shares.

         o From January 1, 2000 to December 31, 2000: 189,216 shares plus
unissued shares from the prior Offerings, whether offered or not.

         o From January 1, 2001 to December 31, 2001: 189,216 shares plus
unissued shares from the prior Offerings, whether offered or not.

         o From January 1, 2002 to December 31, 2002: 189,216 shares plus
unissued shares from the prior Offerings, whether offered or not.

For the six-month Offerings, the maximum number of shares to be issued shall be
one-half (1/2) of the number of shares set forth for the annual period in which
the six-month Offering falls, plus, if the Offering is a July 1 to December 31
Offering, unissued shares, whether offered or not, from the immediately
preceding six-month Offering. As used in the Plan, "Offering Commencement Date"
means January 1 (except for the March 10, 1995 and March 16, 2001 beginning
dates) or July 1, as the case may be, on which the particular Offering begins
and "Offering Termination Date" means the June 30 or December 31, as the case
may be, on which the particular Offering terminates.

                        ARTICLE V. - PAYROLL DEDUCTIONS

5.01.    AMOUNT OF DEDUCTION.

         At the time a participant files his authorization for payroll
deduction, he shall elect to have deductions made from his pay on each payday
during the time he is a participant in an Offering at the rate of 1, 2, 3, 4, 5,
6, 7, 8, 9 or 10% of his base pay in effect at the Offering Commencement Date of
such Offering. In the case of a part-time, hourly employee, such employee's base
pay during an Offering shall be determined by multiplying such employee's hourly
rate of pay in effect on the Offering Commencement Date by the number of
regularly scheduled hours of work for such employee during such Offering.

                                       3
<PAGE>   4

5.02.    PARTICIPANT'S ACCOUNT.

         All payroll deductions made for a participant shall be credited to his
account under the Plan. A participant may not make any separate cash payment
into such account except when on leave of absence and then only as provided in
Section 5.04.

5.03.    CHANGES IN PAYROLL DEDUCTIONS.

         A participant may discontinue his participation in the Plan as provided
in Article VIII, but no other change can be made during an Offering and,
specifically, a participant may not alter the amount of his payroll deductions
for that Offering.

5.04.    LEAVE OF ABSENCE.

         If a participant goes on a leave of absence, such participant shall
have the right to elect: (a) to withdraw the balance in his or her account
pursuant to Section 7.02; (b) to discontinue contributions to the Plan but
remain a participant in the Plan, or (c) to remain a participant in the Plan
during such leave of absence, authorizing deductions to be made from payments by
the Company to the participant during such leave of absence and undertaking to
make cash payments to the Plan at the end of each payroll period to the extent
that amounts payable by the Company to such participant are insufficient to meet
such participant's authorized Plan deductions.

                        ARTICLE VI. - GRANTING OF OPTION

6.01.    NUMBER OF OPTION SHARES.

         On the Commencement Date of each Offering, a participating employee
shall be deemed to have been granted an option to purchase a maximum number of
shares of the stock of the Company equal to an amount determined as follows: an
amount equal to (i) that percentage of the employee's base pay which he has
elected to have withheld (but not in any case in excess of 10%) multiplied by
(ii) the employee's base pay during the period of the offering (iii) divided by
85% of the market value of the stock of the Company on the applicable Offering
Commencement Date. The market value of the Company's stock shall be determined
as provided in paragraphs (a) and (b) of Section 6.02 below. An employee's base
pay during the period of an offering shall be determined by multiplying, in the
case of a one-year offering, his normal weekly rate of pay (as in effect on the
last day prior to the Commencement Date of the particular offering) by 52 or the
hourly rate by 2,080 or, in the case of a six-month offering, by 26 or 1,040, as
the case may be, provided that, in the case of a part-time, hourly employee, the
employee's base pay during the period of an offering shall be determined by
multiplying such employee's hourly rate by the number of regularly scheduled
hours of work for such employee during such Offering.

                                       4
<PAGE>   5

6.02.    OPTION PRICE.

         The option price of stock purchased with payroll deductions made during
such annual offering for a participant therein shall be the lower of:

         (a) 85% of the closing price of the stock on the nearest business day
prior to the Offering Commencement Date on which trading occurred on the Nasdaq
SmallCap Market, the Nasdaq National Market, the OTC Bulletin Board or on any
other U.S. or Canadian stock exchange on which the Company's stock are listed
for trading; or

         (b) 85% of the closing price of the stock on the Offering Termination
Date or the nearest prior business day on which trading occurred on the Nasdaq
SmallCap, the Nasdaq National Market, the OTC Bulletin Board or on any other
U.S. or Canadian stock exchange on which the Company's stock are listed for
trading.

If the Common Stock of the Company is not admitted to trading on any of the
aforesaid dates for which closing prices of the stock are to be determined, then
reference shall be made to the fair market value of the stock on that date, as
determined on such basis as shall be established or specified for the purpose by
the Committee. If the Company's stock is traded on more than one exchange or
quotation service, the Company's Board of Directors shall designate the exchange
or quotation service that will be used for setting the option price. For
purposes hereof, The Pink Sheets LLC shall be considered a quotation service
which may be used to set the option price.

                       ARTICLE VII. - EXERCISE OF OPTION

7.01.    AUTOMATIC EXERCISE.

         Unless a participant gives written notice to the Company as hereinafter
provided, his option for the purchase of stock with payroll deductions made
during any offering will be deemed to have been exercised automatically on the
Offering Termination Date applicable to such offering, for the purchase of the
number of full shares of stock which the accumulated payroll deductions in his
account at that time will purchase at the applicable option price (but not in
excess of the number of shares for which options have been granted to the
employee pursuant to Section 6.01), and any excess in his account at that time
will be returned to him.

7.02.    WITHDRAWAL OF ACCOUNT.

         By written notice to the Vice President of Finance of the Company, at
any time prior to the Offering Termination Date applicable to any Offering, a
participant may elect to withdraw all the accumulated payroll deductions in his
account at such time.

7.03.    FRACTIONAL SHARES.

         Fractional shares will not be issued under the Plan and any accumulated
payroll deductions which would have been used to purchase fractional shares will
be returned to any employee promptly following the termination of an Offering,
without interest.

                                       5
<PAGE>   6

7.04.    TRANSFERABILITY OF OPTION.

         During a participant's lifetime, options held by such participant shall
be exercisable only by that participant.

7.05.    DELIVERY OF STOCK.

         As promptly as practicable after the Offering Termination Date of each
Offering, the Company will deliver to each participant, as appropriate, the
stock purchased upon exercise of his option.

                           ARTICLE VIII. - WITHDRAWAL

8.01.    IN GENERAL.

         As indicated in Section 7.02, a participant may withdraw payroll
deductions credited to his account under the Plan at any time by giving written
notice to the Company's Vice President of Finance. All of the participant's
payroll deductions credited to his account will be paid to him promptly after
receipt of his notice of withdrawal, and no further payroll deductions will be
made from his pay during such Offering. The Company may, at its option, treat
any attempt to borrow by an employee on the security of his accumulated payroll
deductions as an election, under Section 7.02, to withdraw such deductions.

8.02.    EFFECT ON SUBSEQUENT PARTICIPATION.

         A participant's withdrawal from any Offering will not have any effect
upon his eligibility to participate in any succeeding Offering or in any similar
plan which may hereafter be adopted by the Company; except that participants
subject to the reporting requirements of Section 16 of the Securities Exchange
Act of 1934, as amended, may not elect to participate in a succeeding Offering
commencing within six months of a withdrawal by such individual.

8.03.    TERMINATION OF EMPLOYMENT.

         Upon termination of the participant's employment for any reason,
including retirement (but excluding death while in the employ of the Company or
continuation of a leave of absence for a period beyond 180 days), the payroll
deductions credited to his account will be returned to him, or, in the case of
his death subsequent to the termination of his employment, to the person or
persons entitled thereto under Section 12.01.

8.04.    TERMINATION OF EMPLOYMENT DUE TO DEATH.

         Upon termination of the participant's employment because of his death,
his beneficiary (as defined in Section 12.01) shall have the right to elect, by
written notice given to the Vice President of Finance of the Company prior to
the earlier of the Offering Termination Date or the expiration of a period of
sixty (60) days commencing with the date of the death of the participant,
either:

         (a) to withdraw all of the payroll deductions credited to the
participant's account under the Plan, or

                                       6
<PAGE>   7

         (b) to exercise the participant's option for the purchase of stock on
the Offering Termination Date next following the date of the participant's death
for the purchase of the number of full shares of stock which the accumulated
payroll deductions in the participant's account at the date of the participant's
death will purchase at the applicable option price, and any excess in such
account will be returned to said beneficiary, without interest.

         In the event that no such written notice of election shall be duly
received by the President of the Company, the beneficiary shall automatically be
deemed to have elected, pursuant to paragraph (b), to exercise the participant's
option.

8.05.    LEAVE OF ABSENCE.

         A participant on leave of absence shall, subject to the election made
by such participant pursuant to Section 5.04, continue to be a participant in
the Plan so long as such participant is on continuous leave of absence. A
participant who has been on leave of absence for more than 180 days and who
therefore is not an employee for the purpose of the Plan shall not be entitled
to participate in any offering commencing after the 180th day of such leave of
absence. Notwithstanding any other provisions of the Plan, unless a participant
on leave of absence returns to regular full-time or part-time employment with
the Company at the earlier of: the termination of such leave of absence or three
months from the 180th day of such leave of absence, such participant's
participation in the Plan shall terminate on whichever of such dates first
occurs.

                             ARTICLE IX. - INTEREST

9.01.    PAYMENT OF INTEREST.

         No interest will be paid or allowed on any money paid into the Plan or
credited to the account of any participant employee.

                                       7
<PAGE>   8

                               ARTICLE X. - STOCK

10.01.   MAXIMUM SHARES.

         The maximum number of shares which shall be issued under the Plan,
subject to adjustment upon changes in capitalization of the Company as provided
in Section 12.04 shall not exceed 800,000 shares for all Offerings. If the total
number of shares for which options are exercised on any Offering Termination
Date in accordance with Article VI exceeds the maximum number of shares for the
applicable Offering, the Company shall make a pro rata allocation of the shares
available for delivery and distribution in a nearly uniform manner as it shall
be practicable and as it shall determine to be equitable, and the balance of
payroll deductions credited to the account of each participant under the Plan
shall be returned to him as promptly as possible.

10.02.   PARTICIPANT'S INTEREST IN OPTION STOCK.

         The participant will have no interest in stock covered by his option
until such option has been exercised.

10.03.   REGISTRATION OF STOCK.

         Stock to be delivered to a participant under the Plan will be
registered in the name of the participant, or, if the participant so directs by
written notice to the Vice President of Finance of the Company prior to the
Offering Termination Date applicable thereto, in the names of the participant
and one such other person as may be designated by the participant, as joint
tenants with rights of survivorship or as tenants by the entireties, to the
extent permitted by applicable law.

10.04.   RESTRICTIONS ON EXERCISE.

         The Board of Directors may, in its discretion, require as conditions to
the exercise of any option that the shares of Common Stock reserved for issuance
upon the exercise of the option shall have been duly qualified, upon official
notice of issuance, for trading on Nasdaq or other applicable stock exchange or
quotation service, and that either:

         (a) a Registration Statement under the Securities Act of 1933, as
amended, with respect to said shares shall be effective, or

         (b) the participant shall have represented at the time of purchase, in
form and substance satisfactory to the Company, that it is the participant's
intention to purchase the shares for investment and not for resale or
distribution.

                                        8
<PAGE>   9

                          ARTICLE XI. - ADMINISTRATION

11.01.   APPOINTMENT OF COMMITTEE.

         A special committee of the Board of Directors or, failing the
appointment of such a committee, the Board of Directors itself (the "Committee")
shall administer the Plan.

11.02.   AUTHORITY OF COMMITTEE.

         Subject to the express provisions of the Plan, the Committee shall have
plenary authority in its discretion to interpret and construe any and all
provisions of the Plan, to adopt rules and regulations for administering the
Plan, and to make all other determinations deemed necessary or advisable for
administering the Plan. The Committee's determination on the foregoing matters
shall be conclusive.

11.03.   RULES GOVERNING THE ADMINISTRATION OF THE COMMITTEE.

         If a special committee is appointed by the Board of Directors, the
Board may from time to time appoint members of the Committee in substitution for
or in addition to members previously appointed and may fill vacancies, however
caused, in the Committee. The Committee may select one of its members as its
Chairman and shall hold its meetings at such times and places as it shall deem
advisable and may hold telephonic meetings. A majority of its members shall
constitute a quorum. All determinations of the Committee shall be made by a
majority of its members. The Committee may correct any defect or omission or
reconcile any inconsistency in the Plan, in the manner and to the extent it
shall deem desirable. Any decision or determination reduced to writing and
signed by a majority of the members of the Committee shall be as fully effective
as if it had been made by a majority vote at a meeting duly called and held. The
Committee may appoint a secretary and shall make such rules and regulations for
the conduct of its business as it shall deem advisable.

                          ARTICLE XII. - MISCELLANEOUS

12.01.   DESIGNATION OF BENEFICIARY.

         A participant may file a written designation of a beneficiary who is to
receive any stock and/or cash. Such designation of beneficiary may be changed by
the participant at any time by written notice to the Company's Vice President of
Finance. Upon the death of a participant and upon receipt by the Company of
proof of identity and existence at the participant's death of a beneficiary
validly designated by him under the Plan, the Company shall deliver such stock
and/or cash to such beneficiary. In the event of the death of a participant and
in the absence of a beneficiary validly designated under the Plan who is living
at the time of such participant's death, the Company shall deliver such stock
and/or cash to the executor or administrator of the estate of the participant,
or if no such executor or administrator has been appointed (to the knowledge of
the Company), the Company, in its discretion, may deliver such stock and/or cash
to the spouse or to any one or more dependents of the participant as the Company
may designate. No beneficiary shall, prior to the death of the participant by
whom he has been designated, acquire any interest in the stock or cash credited
to the participant under the Plan.

                                       9
<PAGE>   10

12.02.   TRANSFERABILITY.

         Neither payroll deductions credited to a participant's account nor any
rights with regard to the exercise of an option or to receive stock under the
Plan may be assigned, transferred, pledged, or otherwise disposed of in any way
by the participant other than by will or the laws of descent and distribution.
Any such attempted assignment, transfer, pledge or other disposition shall be
without effect, except that the Company may treat such act as an election to
withdraw funds in accordance with Section 7.02.

12.03.   USE OF FUNDS.

         All payroll deductions received or held by the Company under this Plan
may be used by the Company for any corporate purpose and the Company shall not
be obligated to segregate such payroll deductions.

12.04.   ADJUSTMENT UPON CHANGES IN CAPITALIZATION.

         (a) If, while any options are outstanding, the outstanding shares of
Common Stock of the Company have increased, decreased, changed into, or been
exchanged for a different number or kind of shares or securities of the Company
through reorganization, merger, recapitalization, reclassification, stock split,
reverse stock split or similar transaction, appropriate and proportionate
adjustments may be made by the Committee in the number and/or kind of shares
which are subject to purchase under outstanding options and on the option
exercise price or prices applicable to such outstanding options. In addition, in
any such event, the number and/or kind of shares which may be offered in the
Offerings described in Article IV hereof shall also be proportionately adjusted.
No adjustments shall be made for stock dividends. For the purposes of this
paragraph, any distribution of shares to shareholders in an amount aggregating
20% or more of the outstanding shares shall be deemed a stock split and any
distributions of shares aggregating less than 20% of the outstanding shares
shall be deemed a stock dividend.

         (b) Upon the dissolution or liquidation of the Company, or upon a
reorganization, merger or consolidation of the Company with one or more
corporations as a result of which the Company is not the surviving corporation,
or upon a sale of substantially all of the property or stock of the Company to
another corporation, the holder of each option then outstanding under the Plan
will thereafter be entitled to receive at the next Offering Termination Date
upon the exercise of such option for each share as to which such option shall be
exercised, as nearly as reasonably may be determined, the cash, securities
and/or property which a holder of one share of the Common stock was entitled to
receive upon and at the time of such transaction. The Board of Directors shall
take such steps in connection with such transactions as the Board shall deem
necessary to assure that the provisions of this Section 12.04 shall thereafter
be applicable, as nearly as reasonably may be determined, in relation to the
said cash, securities and/or property as to which such holder of such option
might thereafter be entitled to receive.

12.05.   AMENDMENT AND TERMINATION.

         The Board of Directors shall have complete power and authority to
terminate or amend the Plan; provided, however, that the Board of Directors
shall not, without the approval of the stockholders of the Corporation (i)
increase the maximum number of shares which may be issued

                                       10
<PAGE>   11

under any Offering (except pursuant to Section 12.04); or (ii) amend the
requirements as to the class of employees eligible to purchase stock under the
Plan. No termination, modification, or amendment of the Plan may, without the
consent of an employee then having an option under the Plan to purchase stock,
adversely affect the rights of such employee under such option.

12.06.   EFFECTIVE DATE.

         The Plan shall become effective as of March 10, 1995.

12.07.   NO EMPLOYMENT RIGHTS.

         The Plan does not, directly or indirectly, create any right for the
benefit of any employee or class of employees to purchase any shares under the
Plan, or create in any employee or class of employees any right with respect to
continuation of employment by the Company, and it shall not be deemed to
interfere in any way with the Company's right to terminate, or otherwise modify,
an employee's employment at any time.

12.08.   EFFECT OF PLAN.

         The provisions of the Plan shall, in accordance with its terms, be
binding upon, and inure to the benefit of, all successors of each employee
participating in the Plan, including, without limitation, such employee's estate
and the executors, administrators or trustees thereof, heirs and legatees, and
any receiver, trustee in bankruptcy or representative of creditors of such
employee.

12.09.   GOVERNING LAW.

         The laws of the State of Colorado will govern all matters relating to
this Plan except to the extent it is superseded by the laws of the United
States.

                                       11<PAGE>   1
                                                                   EXHIBIT 10.26

                              VARI-L COMPANY, INC.
                         EXECUTIVE EMPLOYMENT AGREEMENT

         THIS AGREEMENT, effective March 2, 2001, is made and entered into by
and between VARI-L COMPANY, INC. (the "Company") and TIMOTHY MICUN ("Employee").

         WHEREAS, the Company wishes to engage Employee as the Company's Vice
President-Sales and Marketing to lead the Company's sales and marketing
activities as part of the Company's continuing efforts to build shareholder
value; and

         WHEREAS, the Company's Board of Directors, comprised solely of
disinterested directors, has determined to provide Employee with this employment
agreement, including the severance package and other benefits provided hereby,
for the purpose of inducing Employee to accept the Vice President-Sales and
Marketing position with the Company and to continue to provide diligent and
efficacious services to the Company during his employment.

         NOW, THEREFORE, for good and valuable consideration, the parties hereto
agree as follows:

         I. EMPLOYMENT. The Company hereby employs Employee, and Employee hereby
accepts employment, upon the terms and conditions hereinafter set forth.

         II. TERM. Subject to the provisions for termination as hereinafter
provided, the term of this Agreement is for a period commencing March 2, 2001,
and expiring March 1, 2003 (the "Initial Term"). On March 1 of each year,
beginning in 2003, the term of this Agreement shall be automatically extended
for an additional year without any further action on the part of the Company or
Employee unless terminated under the provisions of Section VIII of this
Agreement.

         III. DUTIES. Employee is engaged as Vice President-Sales and Marketing
of the Company, to have complete responsibility for and authority over the
management and direction of all sales and marketing activities of the Company,
including the commercial, military, aerospace and other markets served by the
Company, subject only to the direction of the Company's Chief Executive Officer
or President and the Board of Directors, for administering those operations of
the Company in all respects.

         IV. EXTENT OF SERVICES. Employee shall faithfully, industriously, and
to the best of his ability, experience, and talents, perform all of the duties
that may be required of and from him pursuant to this Agreement. Nothing herein
shall be construed as preventing Employee from (a) investing his assets in such
form or manner as will not require any services on the part of Employee in the
operations or the affairs of the companies in which such investments are made or
(b) serving as a director, advisor, or consultant; provided, however, that such
investments or services may not be in connection with a business which is in
competition with the Company (excluding (i) indirect investments through mutual
funds or other broad based investment vehicles, (ii) investments in debt
instruments, and (iii) investments in less than 5% of the stock of any publicly
held business). For purposes hereof, "in competition with the Company" shall be
construed consistently with Section VII hereof.

<PAGE>   2

         V. COMPENSATION AND EMPLOYEE BENEFITS.

                  A. ANNUAL BASE SALARY. For all services rendered by Employee
under this Agreement, the Company shall pay Employee an annual base salary of at
least $120,000, payable in equal bi-weekly installments. The amount of such base
salary shall be determined at the beginning of each fiscal year by the
Compensation Committee of the Company's Board of Directors in its sole
discretion on the basis of merit and the Company's financial success and
progress but in no event shall such base salary be less than the annual base
salary indicated in this paragraph.

                  B. BONUS COMPENSATION. Employee may receive bonuses, payable
in cash or shares of the Company's stock, as may be determined at the beginning
of each fiscal year of the Company by the Board of Directors or the Compensation
Committee of the Board of Directors, in its sole discretion, on the basis of:
(i) Employee's success in meeting his personal performance goals, as established
by the Compensation Committee of the Board of Directors; (ii) Employee's merit,
including but not limited to the quality of the services provided by Employee
and his industriousness and diligence in performing such services; and (iii) the
Company's financial success and progress in the prior fiscal year. It is
anticipated that, if Employee is judged to have been successful under the
foregoing criteria, his annual bonus would be equal to approximately thirty
percent (30%) of his annual base salary for the preceding year.

                  C. VACATION. Employee shall be entitled to accrue three (3)
weeks of paid vacation for each year of service provided. After one year of
service, that amount will increase to four (4) weeks per year. Any accrued but
unused vacation time shall be paid to Employee at or before the termination of
his employment, in accordance with Company policy, in addition to any amounts
due and payable to Employee under Section VIII hereof. Employee shall be
required to take at least two (2) weeks vacation per year, including in at least
one case a vacation lasting no less than five (5) consecutive business days.

                  D. EMPLOYEE BENEFITS. Employee shall be entitled to receive
all of the rights, benefits, and privileges of an employee and an executive
officer under any generally applicable retirement, pension, profit-sharing,
insurance, health and hospital, or other employee benefit plans which may be now
in effect or hereafter adopted by the Company. It is agreed that, in 2001,
Employee will be granted options to purchase 20,000 shares of the Company's
common stock under the Company's Tandem Stock Option and Stock Appreciation
Rights Plan (the "Plan"), 4,000 options of which shall vest on the first
anniversary of the date of grant and 4,000 options of which shall vest on each
subsequent anniversary of the date of grant until the option is fully vested,
subject to the terms and conditions of the Plan. Employee will also be granted
options to purchase 10,000 shares of the Company's common stock under the Plan,
2,000 options of which shall vest upon grant and 2,000 options of which shall
vest on each subsequent anniversary of the date of grant until such option is
fully vested, subject to the terms and conditions of the Plan. Employee's right
to receive grants in subsequent years will be determined on the same basis as
other senior executives of the Company considering, in Employee's case, the
performance standards set forth in Section V. B above.

                  E. WORKING FACILITIES. Employee shall be furnished with a
private office, business tools, and such other facilities and services suitable
to Employee's position and adequate for the performance of the duties required
by this Agreement.

                                       2
<PAGE>   3

                  F. EXPENSES. Subject to limits which may be imposed by the
Chief Executive Officer, President or the Board of Directors, including any
committee thereof, Employee is authorized to incur reasonable expenses in
connection with his responsibilities in conducting the business of the Company,
including expenses for entertainment, travel, and similar items. The Company
will reimburse Employee for all such expenses upon the presentation by Employee,
from time to time, of an itemized account of such expenditures, including
receipts or other adequate documentation, or Employee may pay such expenses with
a Company credit card, if a Company credit card is issued to Employee, and
Employee shall appropriately document the business purpose of such expenditures.
Employee's expenses must be submitted to and approved by the Audit Committee or
another officer or employee designated by the Audit Committee to review and
approve such expenses.

                  G. AUTOMOBILE ALLOWANCE. The Company shall pay Employee an
automobile allowance for the expense of leasing or financing an automobile, as
well as for insurance, maintenance, fuel and repairs associated with such
automobile. Any automobile for which Employee accepts this allowance must be
suitable for the Company's use. Specifically, such automobile must have four
doors. The automobile allowance shall be payable in equal bi-weekly installments
and shall in no event exceed $10,000.00 per year. If and to the extent that the
automobile is not considered by the Company to have been used for business
purposes, based upon documentation submitted to the Company at the Company's
request, the Company will include the value of the non-business use of the
automobile and other reimbursements made in connection therewith on Employee's
Form W-2 or 1099 as income for each year such personal benefit is received.

                  H. EDUCATIONAL EXPENSES. Employee shall be entitled to receive
reimbursement for educational expenses incurred by him during the term of this
Agreement, including tuition and costs, upon approval of the specific
educational program by the Compensation Committee of the Board of Directors.
Among the factors to be considered by the Compensation Committee in determining
whether to approve reimbursement is the relevancy of the educational expense to
the Company's business. If reimbursement for a specific course is approved,
Employee must achieve a "C" or better in that course and Employee must remain
employed by the Company while taking the course and for a specified period of
time thereafter as determined by the Compensation Committee upon approval of
reimbursement. In the event that Employee obtains a "C" or lower, and/or
discontinues employment prior to the time specified by the Compensation
Committee for reimbursement, the expenses previously paid to or on behalf of
Employee for such education shall be reimbursed to the Company.

         VI. PROPRIETARY INTERESTS OF COMPANY.

                    Employee and the Company recognize that the Company is in a
highly competitive business in a highly technical industry. The parties
acknowledge that the success or failure of the Company depends largely on the
development and use of certain proprietary and confidential information and
trade secrets, including without limitation, information concerning any of the
Company's patented components, research and development projects and in patent
process components, and personal relationships with present and potential
customers, suppliers, contractors, and governmental agencies as well as
technology, procedures, systems, and techniques relating to the products
developed or distributed by the Company (hereinafter collectively referred to as
"CONFIDENTIAL INFORMATION"). Confidential Information is a

                                       3
<PAGE>   4

substantial asset of the Company. Confidential Information will be disclosed to
Employee in the normal course of operation. Employee acknowledges that
Confidential Information is extremely valuable to the Company and must be
protected from unauthorized use by the Company's competitors or other persons.
Therefore, Employee agrees not to disclose or use, whether for the benefit of
Employee or any other person or entity, at any time during or after his
employment, any Confidential Information to any person or entity other than the
Company or persons authorized by the Company to receive such Confidential
Information.

                  Employee recognizes that, during the term of his employment
with the Company, he may develop new products, technology, processes, devices,
inventions, or methods of production, including but not limited to computer
hardware, software or "firmware," and may enhance, improve or perfect existing
products, technology, processes, devices, inventions or methods of production
(hereinafter collectively referred to as "INVENTIONS"). As partial consideration
for the salary and other benefits provided by the Company to Employee, Employee
hereby agrees that his entire work product while in the employ of the Company,
including any Inventions, is the exclusive property of the Company. Employee
also agrees to cooperate fully with the Company and to do whatever acts are
reasonably necessary in order to obtain United States or foreign letters patent
or copyrights, or both, and to vest the entire right and title thereto in the
Company. Employee further agrees that the Company shall have the royalty-free
right to use in its business, and to make, use, and sell such Inventions whether
or not patentable, regardless of whether they are conceived or made by Employee
during the hours which he is employed by the Company or with the use of or
assistance of the Company's facilities, materials or personnel.

                  Except as required in his duties to the Company, Employee will
not, directly or indirectly, use, disseminate, disclose, lecture upon, or
publish articles concerning any Confidential Information without the prior
written consent of the Company.

                  Upon termination of his employment with the Company, all
documents, records, notebooks, and similar repositories of or containing
Confidential Information, including copies thereof, then in Employee's
possession, whether prepared by Employee or others, will be left with the
Company, and no copies thereof will be retained by Employee.

                  It is agreed that any breach of this section of the Agreement
will cause immediate irreparable harm to the Company and monetary damages would
be difficult if not impossible to ascertain. Therefore, the parties agree that,
upon any breach of any covenant in this Section VI, that the Company may obtain
from the district court for the City and County of Denver, Colorado, or any
other court of competent jurisdiction, an appropriate restraining order,
preliminary injunction or other form of equitable relief with respect thereto.
Nothing contained herein shall be construed as prohibiting the Company from
pursuing any other available remedies for such breach, including the recovery of
damages, costs, and attorney fees.

         VII. NONCOMPETE AND NONSOLICITATION. During the term of this Agreement
and for a period of the greater of (a) one year after termination or expiration
of this Agreement or (b) the period during which a Severance Amount or
consulting arrangement is being paid to Employee by the Company (the "NONCOMPETE
PERIOD"), Employee will not, directly or indirectly, own, manage, operate,
control, provide services to, be employed by, participate in, or be connected in
any manner with the ownership, management, operation, or control of any business
which

                                       4
<PAGE>   5

develops, manufactures, distributes or sells the same type of products as the
Company, or products which are the functional equivalent of the Company's
products or currently planned products, within and to the same market as the
Company's market at the time of Employee's proposed activity or, after the
termination of this Agreement, at or prior to the time of such termination.
Employee certifies that his employment with the Company will not breach a
previous employment agreement. Employee agrees not to engage in the unauthorized
use of the proprietary assets of others during the term of his employment by the
Company. Employee agrees not to enter into any other employment agreement, oral
or written, which will run concurrently, in whole or in part, with Employee's
employment by the Company, provided, however, that the Company acknowledges and
agrees that Employee may, for a period of up to three (3) months after the date
of this Agreement, provide consulting services on a part time basis to his
former employer in order to assist it in the transition and training of his
replacement. It is agreed that any breach of this section of the Agreement will
cause immediate irreparable harm to the Company and that monetary damages for
such breach would be difficult if not impossible to ascertain. Therefore, the
parties agree that upon any breach of the covenants of this section the Company
may obtain from the district court for the City and County of Denver, Colorado,
or any other court of competent jurisdiction, an appropriate restraining order,
preliminary injunction or other form of equitable relief with respect thereto.
Nothing contained herein shall be construed as prohibiting the Company from
pursuing any other available remedies for such breach, including the recovery of
damages, costs, and attorney fees.

                  The foregoing agreement not to compete shall not be held
invalid because of the scope of the territory or the actions restricted thereby,
or the period of time within which such agreement is operative; but any judgment
by a court of competent jurisdiction may define the maximum territory and
actions subject to, and restricted by, this paragraph and the period of time
during which such agreement is enforceable.

                  Notwithstanding the foregoing, in the event of a Change of
Control, as hereinafter defined, not recommended by a majority of the Board of
Directors of the Company as constituted prior to the date of such Change of
Control, this non-compete agreement shall terminate upon the date of such Change
of Control.

         VIII. TERMINATION OF EMPLOYMENT.

                  A. TERMINATION BY MUTUAL AGREEMENT. The Company and Employee
may agree to terminate this Agreement on terms and conditions mutually
acceptable to them as of the date of termination.

                  B. DEATH. In the event of Employee's death during the term of
this Agreement, including the Consulting Period, if any, the Company shall pay
to Employee's estate any unpaid wages or other amounts owing at the time of
death and shall pay, in addition to and not as a substitute for the proceeds
from any life insurance policies on Employee's life paid for by the Company, an
amount equal to the Severance Amount which would have been payable to Employee
if there had been a Voluntary Termination on the date of Employee's death and
all notice and other requirements for the payment of such Severance Amount had
been satisfied.

                  C. DISABILITY. If Employee becomes Disabled during the term of
employment, the Company may, at its option, by written notice to Employee or
Employee's

                                       5
<PAGE>   6

personal representative, terminate the employment. Employee shall thereafter be
eligible to receive disability benefits under the Company's standard employee
disability insurance policy like any other employee.

                  D. VOLUNTARY OR INVOLUNTARY TERMINATION. Upon a Voluntary or
Involuntary Termination as defined herein, Employee shall continue to render his
services to the Company, if and to the extent required by the Company, up to the
date of such Voluntary or Involuntary Termination as referenced in the written
notice of termination submitted to Employee by the Company, or vice versa, and
shall be paid (i) the unpaid amount of the then applicable annual base salary up
to the date of such Voluntary or Involuntary Termination, (ii) any bonuses which
the Company's Board of Directors may determine, in its sole discretion, to be
due and payable to Employee, and (iii) the Severance Amount as defined herein.
In the event of a Voluntary Termination, as a condition to Employee's receipt of
the foregoing payments to Employee, during the time between the submission of a
notice of termination by Employee and the effective date of termination set
forth in such notice, Employee shall continue to diligently provide the Company
with such services as the Company may request. In the event of an Involuntary
Termination, all unvested stock options and stock appreciation rights that have
previously been granted to Employee will fully vest and remain exercisable for
three (3) months after such termination.

                  E. DEFINITIONS. All the terms defined in this Section shall
have the meanings given below throughout this Agreement.

                           1. "CHANGE IN DUTIES, COMPENSATION, OR BENEFITS"
shall mean any one or more of the following:

                                    a. a significant and detrimental change in
the nature or scope of Employee's authority, responsibilities or duties from
those currently applicable to him;

                                    b. a reduction in Employee's annual base
salary from that currently provided to him;

                                    c. a diminution in Employee's eligibility to
participate in bonus, stock option, incentive award or any other compensation
plan which provides opportunities to receive compensation from those currently
applicable to him, except for: (i) changes in the eligibility requirements for
plans that are applicable to employees generally; (ii) changes in plans that are
applicable to all executives and result in a diminution of Employee's benefits
under such plan that is fair and proportional as compared to the diminution of
benefits for all executives; and (iii) changes that are required by applicable
law;

                                    d. a material diminution in employee
benefits (including but not limited to medical, dental or life insurance and
long-term disability plans) and perquisites currently applicable to Employee,
except for: (i) changes in the eligibility requirements for benefits that are
applicable to employees generally; (ii) changes in benefits and perquisites that
are applicable to all executives and result in a diminution of Employee's
benefits that is fair and proportional as compared to the diminution for all
executives; and (iii) changes that are required by applicable law;

                                       6
<PAGE>   7

                                    e. a change in the location of Employee's
principal place of employment by the Company (including its subsidiaries) by
more than fifty (50) miles from the location where he was principally employed
immediately prior to the date on which a Change of Control occurs; or

                                    f. a reasonable determination by a majority
of those persons comprising the Board of Directors of the Company prior to a
Change of Control (even if such determination is made after such Change of
Control) that, as a result of a Change of Control and a change in circumstances
thereafter significantly affecting his position, Employee is unable to exercise
the functions or duties attached to his position immediately prior to the date
on which a Change of Control occurs.

                           2. "CHANGE OF CONTROL" shall be deemed to have
occurred if:

                                    a. any "person," including a "group" as
determined in accordance with Section 13(d)(3) of the Securities Exchange Act of
1934 (the "EXCHANGE ACT"), is or becomes the beneficial owner, directly or
indirectly, of securities of the Company representing 50% or more of the
combined voting power of the Company's then outstanding securities;

                                    b. as a result of, or in connection with,
any tender offer or exchange offer, merger or other business combination, sale
of assets or contested election, or any combination of the foregoing
transactions (a "TRANSACTION"), the persons who were directors of the Company
before the Transaction shall cease to constitute a majority of the Board of
Directors of the Company or any successor to the Company;

                                    c. the Company is merged or consolidated
with another corporation or entity and, as a result of the merger or
consolidation, less than 80% of the outstanding voting securities of the
surviving corporation or entity is then owned in the aggregate by the former
stockholders of the Company;

                                    d. a tender offer or exchange offer is made
and consummated for the ownership of securities of the Company representing 50%
or more of the combined voting power of the Company's then outstanding voting
securities; or

                                    e. the Company transfers all or
substantially all of its assets to another corporation which is not a
wholly-owned subsidiary of the Company.

                           3. "DISABLED" OR "DISABILITY" shall mean mental or
physical illness or condition rendering Employee incapable of performing any
portion of Employee's normal duties with the Company even after the Company's
reasonable accommodation of any such disability in accordance with the Americans
with Disabilities Act and the Colorado Nondiscrimination statute.

                           4. "INVOLUNTARY TERMINATION" shall mean any
termination except:

                                    a. VOLUNTARY TERMINATION;

                                       7
<PAGE>   8

                                    b. termination by mutual agreement;

                                    c. termination as a result of death; or

                                    d. Employee's voluntary retirement from
employment or mandatory retirement from employment pursuant to a retirement plan
to which Employee was subject prior to any Change of Control. ("RETIREMENT").

                           5. "SEVERANCE AMOUNT" is equal to:

                                    a. in the case of an Involuntary Termination
not following a Change of Control, one-half of Employee's annual base salary
payable ratably over a six (6) month period on the Company's regular payroll
dates, in addition to and not as a substitute for compensation payable to
Employee on account of post-termination consulting services provided by Employee
to the Company, if any, pursuant to Section XI hereof. In the case of a
Involuntary Termination following a Change of Control, the Severance Amount
shall be an amount equal to seventy five percent (75%) of Employee's then annual
base salary, payable in a single lump sum no later than thirty (30) days
following such termination. In the event of Voluntary Termination, no Severance
Amount shall be payable until Employee has completed one (1) year of service
under this Agreement, in which case the Severance Amount will be equal to one
(1) month's salary for every year of service completed under this Agreement, up
to a maximum of three (3) months, payable ratably on the Company's regular
payroll dates.

                                    b. In the case of a Voluntary Termination or
an Involuntary Termination resulting from Employee's resignation following a
Change in Duties, Compensation or Benefits, Employee must give the Company
proper notice of such Termination in order to receive the Severance Amount. For
purposes hereof, proper notice is defined as written notice received by the
Company not less than thirty (30) days prior to the date of termination of
employment.

                                    c. In the case of an Involuntary Termination
by the Company, the Company must give Employee not less than thirty (30) days
prior written notice of such termination.

                                    d. Notwithstanding any other provision of
this Agreement, in the event that Employee is found to have violated the
non-compete provisions of Section VII of this Agreement by a court of competent
jurisdiction ("BREACH"), all Severance Amounts due and owing under this
Agreement shall be terminated upon the effective date of the Breach and Employee
shall reimburse the Company for any portion of the Severance Amount previously
paid to Employee.

                           6. "VOLUNTARY TERMINATION" shall mean any termination
which results from a resignation by Employee other than a resignation following
a Change in Duties, Compensation, or Benefits as defined herein.

                           7. "VOTING SECURITIES" shall mean any securities
which ordinarily possess the power to vote in the election of directors without
the occurrence of any pre-condition or contingency other than the passage of
time.

                                       8
<PAGE>   9

                           8. "BENEFICIALLY OWNED" shall mean beneficial
ownership by Employee, Employee's spouse, or a trust or similar arrangement
established by or for the benefit of Employee, Employee's spouse, or Employee's
minor children as well as the meaning of such term under Section 13 or Section
16 of the Exchange Act.

                  F. SECTION 280G PAYMENT. In the unlikely event that the
Severance Amount payments under this Agreement are determined by an independent
accounting firm retained by Employee (but paid for by the Company) to constitute
"excess parachute payments" within the meaning of Section 280G of the Internal
Revenue Code of 1986, as amended, (the "CODE") and any regulations thereunder,
such Severance Amount shall be reduced by the amount necessary to avoid such
classification.

                  G. MEDICAL AND DENTAL BENEFITS. If Employee's employment by
the Company or any subsidiary or successor of the Company is terminated because
of Death, Disability, or Involuntary Termination, then to the extent that
Employee or any of Employee's dependents may be covered under the terms of any
medical and dental plans of the Company (or any subsidiary) immediately prior to
the termination, the Company will provide Employee and those dependents with the
same or equivalent coverages until three (3) months after any such termination
of employment. The Company may, at its election, procure such coverages apart
from, and outside of the terms of, the plans applicable to other employees. The
Company's obligation to provide such coverages will be limited by the
requirement that Employee and Employee's dependents comply with all of the
conditions of the medical or dental plans applicable to employees generally and
the Company is under no obligation to obtain special coverages for Employee
which would not be covered by the plans applicable to employees generally. In
consideration for these benefits, Employee must make contributions equal to
those required from time to time from other employees for equivalent coverages
under the medical or dental plans. If and to the extent that Employee is
eligible to participate in a medical, dental or other health insurance plan of
another employer after the termination of his employment by the Company, then
the benefit provided by this section shall be eliminated or commensurately
diminished.

         IX. LIFE INSURANCE.

                  A. GROUP LIFE INSURANCE. The Company shall provide Employee
with personal life insurance under the Company's group life insurance policy as
in effect from time to time which shall be payable to a beneficiary designated
by Employee in addition to, and not as a substitute for, any Severance Amount
payable under Section VIII.B. above. Employee acknowledges that, while the
Company currently maintains group life insurance which provides for a death
benefit equal to three (3) times an officer's annual base salary at the time of
death as well as an accidental death and dismemberment policy (the AD&D Policy")
which also provides for an additional benefit in the same amount as the group
life insurance if the cause of death is covered by the AD&D Policy, such
coverages may be altered or amended in the future on a Company-wide basis,
provided, however, that under no circumstances will such coverages be reduced
unless other officers of comparable rank within the Company are correspondingly
reduced.

                  B. KEY MAN LIFE INSURANCE. Employee hereby consents to the
purchase by the Company, at the Company's option, of one or more "key man" life
insurance policies on

                                       9
<PAGE>   10

Employee's life naming the Company or its designee as beneficiary (the "Key Man
Policies"); provided, however, that the Company shall not be required to obtain
such insurance. Employee agrees that he shall take any reasonable actions which
may be requested by the Company, and otherwise fully cooperate with the Company,
in its efforts to purchase and maintain the Key Man Policies. The Key Man
Policies will be owned by the Company and the proceeds made payable to the
Company or its designee. If purchased by the Company, the Key Man Policies shall
be for the purpose of providing funds necessary to obtain a replacement for
Employee and for any other reasonable business purpose as may be determined by
the Company in amounts sufficient to accomplish their intended purposes.

         X. DIRECTORS AND OFFICERS INSURANCE. The Company shall maintain and
keep in force directors and officers liability insurance coverage on all
directors and officers in such an amount as the Company deems reasonable and
necessary under the circumstances but in no event less than $7.5 million of
aggregate coverage.

         XI. POST-TERMINATION CONSULTING. In the event of Employee's Involuntary
or Voluntary Termination, Employee agrees to provide services to the Company as
a consultant for a period of ninety (90) days following the termination of his
employment (the "Consulting Period"), in exchange for cash compensation at the
rate of $100 per hour. While the Consulting Period will only begin after
termination of employment under this Agreement, if the Company elects to utilize
Employee's service as a consultant during the Consulting Period by written
notice on or before such termination, Employee shall nevertheless continue to be
an "employee" of the Company during the Consulting Period for purposes of the
Company's Tandem Stock Option and Stock Appreciation Rights Plan and Stock Bonus
Plan, although the scope of Employee's services and responsibilities shall be
diminished in such manner and amounts as may be agreed upon by the Company and
Employee. Employee shall have the right to decline to provide any consulting
services requested by the Company after an Involuntary Termination or Voluntary
Termination but such refusal will result in the forfeiture of Employee's right
to the Severance Amount hereunder. If Employee does elect to provide consulting
services, Employee shall be obligated to provide no more than ten (10) hours of
consulting services per week during the Consulting Period, if and to the extent
requested by the Company. Employee may determine to cease providing such
services to the Company at any time but such a determination, to the extent it
is made prior to the completion of the full ninety (90) day Consulting Period,
shall proportionately reduce Employee's entitlement to the Severance Amount
payable hereunder.

         XII. NOTICES. Any notice required or permitted to be given under this
Agreement shall be sufficient if in writing and delivered in person or sent by
registered or certified mail to Employee's residence as indicated in Employee's
personnel file at in the Company's records in the case of Employee or to its
principal office in the case of the Company.

         XIII. WAIVER. The waiver of any provision of this Agreement shall not
operate or be construed as a waiver of any other provision of this Agreement. No
waiver shall be valid unless in writing and executed by the party to be charged
therewith.

         XIV. SEVERABILITY/MODIFICATION. In the event that any clause or
provision of this Agreement shall be determined to be invalid, illegal or
unenforceable, such clause or provision may be severed or modified to the extent
necessary, and, as severed and/or modified, this Agreement shall remain in full
force and effect.

                                       10
<PAGE>   11

         XV. ASSIGNMENT. Except for a transfer by will or by the laws of descent
or distribution, Employee's right to receive payments or benefits under this
Agreement shall not be assignable or transferable, whether by pledge, creation
of a security interest or otherwise. In the event of any attempted assignment or
transfer contrary to this paragraph, the Company shall have no liability to pay
any amount so attempted to be assigned or transferred. Employee acknowledges
that the services to be rendered under this Agreement are unique and personal.
Accordingly, Employee may not assign such duties or obligations under this
Agreement.

         XVI. SUCCESSORS. This Agreement shall be binding upon and inure to the
benefit of the Company, its successors and assigns (including, without
limitation, any company into or with which the Company may merge or
consolidate). The Company agrees that it will not effect the sale or other
disposition of all or substantially all of its assets unless either (i) the
person or entity acquiring the assets or a substantial portion of the assets
shall expressly assume by an instrument in writing all duties and obligations of
the Company under this Agreement or (ii) the Company shall provide, through the
establishment of a separate reserve or otherwise, for the payment in full of all
amounts which are or may reasonably be expected to become payable to Employee
under this Agreement.

         XVII. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
concerning the employment arrangement between the parties and shall, as of the
effective date hereof, supersede all other such agreements between the parties,
provided, however, that nothing in this Agreement shall prevent the Company from
granting additional or special compensation or benefits to Employee after the
date of execution of this Agreement. This Agreement may not be amended except by
an agreement in writing signed by both parties.

         XVIII. GOVERNING LAW AND JURISDICTION. This Agreement shall be
interpreted, construed, and enforced under the laws of the State of Colorado.
The courts of the State of Colorado shall have sole jurisdiction and venue over
all controversies which may arise with respect to this Agreement.

         XIX. TIME. In comparing any period of time prescribed or allowed by
this Agreement, the day of the act, event or default from which the designated
period of time begins to run shall not be included. Time accounting shall begin
upon midnight of the following calendar day. All periods of time shall be
assumed to be specified in calendar days unless otherwise noted. In the case of
fractional days of time, the appropriate equivalent hours can be calculated and
accounted for against midnight of the calendar day in which the period of time
started. For purposes of calculating the duration of the covenant not to compete
the time period of such covenant shall be extended by one day for each day that
Employee competes with Company in violation of such covenant.

         XX. COUNTERPARTS. This Agreement may be signed in one or more
counterparts which, taken together, shall constitute a single binding agreement
between the parties. Photocopies or telecopies of the parties' original
signatures hereto may be relied upon as originals for all purposes.

                                       11
<PAGE>   12

         IN WITNESS WHEREOF, the parties have executed this Agreement the date
and year indicated below.

                                     THE COMPANY:

                                     VARI-L COMPANY, INC.

                                     By: /s/ G. Peter Pappas
                                        ----------------------------------------
                                        G. Peter Pappas, Chief Executive Officer

                                     EMPLOYEE:

                                     /s/ Timothy M. Micun
                                     Timothy Micun

                                       12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00029-of-00352.parquet"}]]