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Exhibit 10.3—Indemnity
Agreement 

 
 

INDEMNITY AGREEMENT    
  

    This Indemnity Agreement is made and entered into, effective as of November 24, 1999 by and between T.J.T., INC., a Washington Corporation (the
"Company"), and JOE LIGHT ("Indemnitee"). 

    WHEREAS,
Indemnitee is currently serving as a director of the Company, and the Company wishes Indemnitee to continue in such capacity; 

    WHEREAS,
the Articles of Incorporation of the Company, as amended (the "Articles"), and the Bylaws of the Company (the "Bylaws"), each provide that the Company shall indemnify, in the
manner and to the fullest extent permitted by the Washington Business Corporation Act ("WBCA"), certain persons, including directors of the Company, against specified expenses and losses arising out
of certain threatened, pending or completed actions, suits or proceedings; 

    WHEREAS,
Indemnitee has indicated that he or she may not be willing to continue to serve as a director of the Company in the absence of indemnification in addition to that provided in
the Articles and Bylaws of the Company; 

    WHEREAS,
the Company, in order to induce Indemnitee to continue to serve as a director, has agreed to provide Indemnitee with the benefits contemplated by this Indemnity Agreement
and, as a result of the provision of such benefits, Indemnitee has agreed to continue to serve in such capacity; and 

    WHEREAS,
the Articles and Bylaws of the Company each expressly recognize that the indemnification provisions of the Articles and Bylaws shall not be deemed exclusive of, and shall not
affect, any other rights to which a person seeking indemnification may be entitled under any agreement, and this Indemnity Agreement is being entered into pursuant to the Articles and Bylaws of the
Company as permitted by the WBCA. 

    NOW,
THEREFORE, in consideration of the promises, conditions and representations set forth herein, including Indemnitee's continued service as a director of the Company, the Company
and Indemnitee hereby agree as follows: 

    Section 1.  Definitions.  The following terms, as used herein, shall have
the following meanings: 

    (a) "Covered
Claim" shall mean any claim against Indemnitee based upon or arising out of any past, present or future act, omission, neglect or breach of duty,
including, without limitation, any actual or alleged error, omission, misstatement or misleading statement, that Indemnitee may commit or suffer while serving in his or her capacity as a director of
the Company, provided that such claim: 

	(i)
	is
not solely based upon and does not arise solely out of acts or omissions of Indemnitee finally adjudged to be intentional misconduct or a
knowing violation of law;

	(ii)
	is
not solely based upon and does not arise solely out of conduct of the Indemnitee finally adjudged to be in violation of RCW 23B.08.310; or

	(iii)
	is
not based solely upon and does not arise solely out of any transaction with respect to which it was finally adjudged that Indemnitee
personally received a benefit in money, property or services to which he or she was not legally entitled. 

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    (b) "Determination"
shall mean a determination, based upon the facts known at the time, made by: 

	(i)
	the
Board of Directors of the Company, by the majority vote of a quorum consisting of directors who are not at the time parties to the action, suit
or proceeding in question;

	(ii)
	if
such a quorum is not obtainable, by a majority vote of a committee duly designated by the Board of Directors, in which designation directors
who are parties may participate, consisting solely of two or more directors not at the time parties to the action, suit or proceeding in question;

	(iii)
	by
special legal counsel: (A) selected by the Board of Directors or its committee in the manner prescribed in (i) or (ii) of
this subsection; or (B) if a quorum of the Board of Directors cannot be obtained under (i) of this subsection and a committee cannot be designated under (ii) of this subsection,
selected by a majority vote of the full Board of Directors, in which selection directors who are parties may participate;

	(iv)
	by
the shareholders, but shares owned by or voted under the control of directors who are at the time parties to the action, suit or proceeding in
question may not be voted on the determination; or

	(v)
	by
a court of competent jurisdiction in a final, nonappealable adjudication. 

    (c) "Payment"
shall mean any and all amounts that Indemnitee is or becomes legally obligated to pay in connection with a Covered Claim, including, without limitation,
damages, judgments, amounts paid in settlement, reasonable costs of investigation, reasonable fees of attorneys, costs of investigative, judicial or administrative proceedings or appeals, and costs of
attachment or similar bonds. 

    Section 2.  Indemnification.  The Company shall indemnify and hold
harmless Indemnitee against and from any and all Payments to the extent that: 

    (a) the
Company shall not have advanced expenses to Indemnitee pursuant to the provisions of the Company's Articles of Incorporation or otherwise and no determination
shall have been made pursuant to such Article or the WBCA that the Indemnitee is not entitled to indemnification; 

    (b) Indemnitee
shall not already have received payment on account of such Payments pursuant to one or more valid and collectible insurance policies; and 

    (c) such
indemnification by the Company is not unlawful. 

    Notwithstanding
anything contained in this Agreement to the contrary, except for proceedings to enforce rights to indemnification or advancement of expenses pursuant to
Section 4 hereof, the Company shall have no obligation to indemnify Indemnitee in connection with a proceeding (or part
thereof) initiated by Indemnitee unless such proceeding (or part thereof) was authorized or consented to by the Board of Directors of the Company. Further, the Company shall have no obligation to
indemnify Indemnitee under this Indemnity Agreement for any amounts paid in a settlement of any action, suit or proceeding effected without the Company's prior written consent, which consent shall not
be unreasonably withheld. The Company shall not settle any claim in any manner that would impose any obligation on Indemnitee without Indemnitee's prior written consent. Indemnitee shall not
unreasonably withhold his consent to any proposed settlement. 

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    Section 3.  Indemnification Procedure; Advancements of Costs and
Expenses.  

    (a) Promptly
after receipt by Indemnitee of notice of the commencement or threat of any action, suit or proceeding, Indemnitee shall, if indemnification with respect
thereto may be sought from the Company under this Indemnity Agreement, notify the Company thereof in writing. 

    (b) If,
at the time of receipt of such notice the Company has directors' and officers' liability insurance in effect, the Company shall give prompt notice of the
commencement of such action, suit or proceeding to the insurers in accordance with the procedures set forth in the respective policies in favor of Indemnitee. The Company shall thereafter take all
necessary or desirable action to cause such insurers to pay, on behalf of Indemnitee, all Payments payable as a result of such action, suit or proceeding in accordance with the terms of such policies. 

    (c) All
costs and expenses, including reasonable fees of attorneys, incurred by Indemnitee in defending or investigating such action, suit or proceeding shall be paid
by the Company in advance of the final disposition of such action, suit or proceeding; provided, however, that no such costs or expenses shall be paid
by the Company if, with respect to such action, suit or proceeding, a Determination is made that: 

	(i)
	Indemnitee
did not act in good faith and in a manner Indemnitee reasonably believed (A) in the case of conduct in Indemnitee's official
capacity with the Company, to be in best interests of the Company and (B) in all other cases, not opposed to the best interests of the Company; or

	(ii)
	in
the case of any criminal action or proceeding, Indemnitee had reasonable cause to believe his or her conduct was unlawful. 

    Indemnitee
hereby undertakes and agrees that he or she will repay the Company for any costs or expenses advanced by or on behalf of the Company pursuant to this Section 3(c) if
it shall ultimately be determined by a court of competent jurisdiction in a final, nonappealable adjudication that Indemnitee is not entitled to indemnification under this Indemnity Agreement. 

    (d) If
the Company shall advance the costs and expenses of any such action, suit or proceeding pursuant to Section 3(c) of this Indemnity Agreement, it shall be
entitled to assume the defense of such action, suit or proceeding, if appropriate, with counsel reasonably satisfactory to Indemnitee, upon delivery to Indemnitee of written notice of its election so
to do. After delivery of such notice, the Company shall not be liable to Indemnitee under this Indemnity Agreement for any costs or expenses subsequently incurred by Indemnitee in connection with such
defense other than reasonable cost and expenses of investigation; provided, however, that: 

	(i)
	Indemnitee
shall have the right to employ separate counsel in any such action, suit or proceeding provided that the fees and expenses of such
counsel incurred after delivery of notice by the Company of its assumption of such defense shall be at Indemnitee's own expense; and

	(ii)
	the
fees and expenses of counsel employed by Indemnitee shall be at the expense of the Company if (A) the employment of counsel by
Indemnitee has previously been authorized by the Company, (B) Indemnitee shall have reasonably concluded that there may be a conflict of interest between the Company and Indemnitee in the
conduct of any such defense (provided that the Company shall not be required to pay for more than one counsel to represent two or more Indemnitees where such Indemnitees have reasonably concluded that
there is no conflict of interest among them in the conduct of such defense), or (C) the Company shall not, in fact, have employed counsel to assume the defense of such action, suit or
proceeding. 

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    (e) All
payments on account of the Company's advancement obligations under Section 3(c) of this Indemnity Agreement shall be made within twenty (20) days
of Indemnitee's written request therefor. All other payments on account of the Company's obligations under this Indemnity Agreement shall be made within sixty (60) days of Indemnitee's written
request therefor, unless a Determination is made that the claims giving rise to Indemnitee's request are not payable under this Indemnity Agreement. Each request for payment hereunder shall be
accompanied by evidence reasonably satisfactory to the Company of Indemnitee's incurrence of the costs and expenses for which such payment is sought. 

    Section 4.  Enforcement of Indemnification; Burden of Proof.  If a claim
for indemnification or advancement of costs and expenses under this Indemnity Agreement is not paid in full by or on behalf of the Company within the time period specified in Section 3(e) of
this Indemnity Agreement, Indemnitee may at any time thereafter bring suit against the Company to recover the unpaid amount of such claim. In any such action, the Company shall have the burden of
proving that indemnification is not required under this Indemnity Agreement. 

    Section 5.  Employee Benefit Plans.  The term "other enterprises," as used
in this Indemnity Agreement, shall include employee benefit plans. All references in this Indemnity Agreement to "serving... at the Company's request" shall include any service by Indemnitee as a
director, officer, employee and/or agent of the Company which imposes duties on, or involves services by, Indemnitee with respect to an employee benefit plan, its participants or beneficiaries. If
Indemnitee acts in good faith and in a manner he or she reasonably believes to be in the interests of the participants and beneficiaries of an employee benefit plan, then, for purposes of
Section 3(c)(i) hereof, Indemnitee shall be deemed to have acted in a manner he or she "reasonably believed to be in the best interests of the Company." 

    Section 6.  Rights Not Exclusive.  The rights to indemnification and
advancement of costs and expenses provided hereunder shall not be deemed exclusive of any other rights to which Indemnitee may be entitled under any charter document, bylaw, agreement, vote of
stockholders or disinterested directors or otherwise. 

    Section 7.  Subrogation.  In the event of payment under this Indemnity
Agreement by or on behalf of the Company, the Company shall be subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers that may be
required and shall do all things that may be necessary to secure such rights, including, without limitation, the execution of such documents as may be necessary to enable the Company effectively to
bring suit to enforce such rights. 

    Section 8.  Choice of Law.  This Indemnity Agreement shall be governed by
and construed and enforced in accordance with the laws of the State of Washington. 

    Section 9.  Attorneys' Fees.  If any action, suit or proceeding is
commenced in connection with or related to this Indemnity Agreement, the prevailing party shall be entitled to have its costs expenses, including, without limitation, reasonable fees of attorneys and
reasonable expenses of investigation, paid by the losing party. 

    Section 10.  Severability.  In the event that any provision of this
Indemnity Agreement is determined by a court to require the Company to do or to fail to do an action that is in violation of any applicable law,
such provision shall be limited or modified in its application to the minimum extent necessary to avoid a violation of law, and, as so limited or modified, such provision and the balance of this
Indemnity Agreement shall be enforceable in accordance with their terms. 

    Section 11.  Successors and Assigns.  This Indemnity Agreement shall be
binding upon all successors and assigns of the Company, including any transferee of all or substantially all of its assets and any successor by merger or otherwise by operation of law, and shall be
binding upon and inure to the benefit of the heirs, executors and administrators of Indemnitee. 

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    Section 12.  Descriptive Headings.  The descriptive headings in this
Indemnity Agreement are included for the convenience of the parties only and shall not affect the construction of this Indemnity Agreement. 

    Section 13.  Counterparts.  This Indemnity Agreement may be executed in
two counterparts, both of which taken together shall constitute one document. 

    Section 14.  Amendment.  No amendment, modification, termination or
cancellation of this Indemnity Agreement shall be effective unless made in writing and signed by each of the parties hereto. 

    IN
WITNESS WHEREOF, the Company and Indemnitee have executed this Indemnity Agreement as of the day and year first above written. 

	 	 	T.J.T., INC.
	

 	
 	

/s/ TERRENCE J. SHELDON   
 Terrence Sheldon, President & CEO
	

 	
 	

INDEMNITEE
	

 	
 	

/s/ JOE LIGHT   
 Joe Light

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Exhibit 10.4—Lease
Agreement 

 
 

LEASE AGREEMENT    
  

    THIS LEASE AGREEMENT, hereinafter referred to as Lease, entered into this 1st day of January, 2000, between Sheldon Homedale Family L.P., hereinafter called
the Lessor and T.J.T., Inc., a Washington Corporation, hereinafter referred to as Lessee: 

 
 

WITNESSETH:    
  

    That the Lessor does hereby lease to Lessee and Lessee does hereby hire from Lessor the following described premises situated in Gem County, Idaho as described
on Exhibit "A" attached hereto: 

    Together
with all appurtenances thereto and with easements of ingress and egress necessary and adequate for the conduct of Lessee's business, for the term of four (4) years,
running from and including the 1st day of January, 2000, up to and including the 31st day of December, 2003, for use in Lessee's regular business, or any other legitimate business, subject to the
terms and conditions of this Lease. 

	1.
	Lessee
covenants to pay to Lessor at T.J.T., Inc. office in Emmett, Idaho, or at such other place in Emmett, Idaho as Lessor shall designate in writing as rent for such
premises, the monthly sum of Two Thousand and Sixty Dollars ($2,060), payable in advance commencing January 1, 2000. Lease payment shall increase three percent (3%) annually for the duration of
this Lease. 

    In
addition to the above, Lessor and Lessee mutually covenant and agree as follows: 

	2.
	Lessee
may, at its own expense, either at the commencement of or during the term of this Lease, make such additions to the leased premises including, without prejudice to the
generality of the foregoing, alterations in the water, gas and the electric wiring systems, as may be necessary to fit the same for its business, upon first obtaining the written approval of Lessor as
to the materials to be used
and the manner of making such alterations and/or additions. Lessor covenants not to unreasonably withhold approval of alterations and/or additions proposed to be made by Lessee. At any time prior to
the expiration or earlier termination of the lease, Lessee may remove any or all such alterations, additions or installations in such a manner as will not substantially injure the leased premises. In
the event Lessee shall elect to make any such removal, Lessee shall restore the premises, or the portion or portions affected by such removal, to the same condition as existed prior to the making of
such alteration, addition or installation, ordinary wear and tear excepted. All alterations, additions or installations not so removed by Lessee shall become the property of the Lessor without
liability on Lessor's part to pay for the same.

	3.
	Lessee
shall, during the term of this Lease, maintain and make all necessary repairs to any structures and improvements located on the leased premises.

	4.
	Lessee
shall pay all charges for water, gas and electricity consumed by Lessee upon the leased premises.

	5.
	Lessee
shall duly obey and comply with all public laws, ordinances, rules or regulations related to the use of the leased premises.

	6.
	Lessee
shall not assign, transfer, sublease, mortgage, pledge or otherwise encumber or dispose of this Lease or any portion thereof without written approval of Lessor. If any
assignment is made without said specific written permission, it shall be declared void and the Lessor, at its option, may cancel this Lease. 

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	7.
	Lessee
shall be responsible for the payment of all real estate taxes assessed against the leased premises during the term of this Lease, and shall be responsible for an other
expenses associated with this property during the term of this Lease.

	8.
	Lessee
shall insure the improvements on the leased premises against loss by fire, flood, civil commotion or other casualty, and shall maintain such insurance in amounts sufficient
to repair or replace any structures so damaged to as good a condition existing at the beginning of this Lease. Lessee shall provide the Lessor with proof of such insurance and failure to provide such
proof shall be a default by the terms of this lease agreement. Lessee shall also maintain a good and sufficient liability
insurance policy and hold Lessor harmless from all liability associated with the use of the leased premises.

	9.
	In
the event that the leased. premises shall be taken for public use by the city, state, federal government, public authority or other corporation having the power of eminent
domain, then this Lease shall terminate as of the date on which possession thereof shall be taken for such public use, or at the option of Lessee, as of the date on which the, premises shall become
unsuitable for Lessee's regular business by reason of such taking; provided, however, that if only a part of the leased premises shall be so taken, such termination shall be at the option of the
Lessee only. If such a taking of only a part of the leased premises occurs, a proportionate reduction of the rent is to be paid from and after the date such possession is taken for public use. Lessee
shall have the right to participate, directly or indirectly, an any award for such public taking to the extent that it may have suffered compensatable damages as a Lessee on account of such public
taking.

	10.
	Either
party has the right to terminate this Lease with ninety (90) days' notice. 

    And
it is mutually understood and agreed that the covenants and agreements herein contained shall inure to the benefit of and shall be equally binding upon the respective executors,
administrators, heirs and assigns of the parties hereto. 

IN
WITNESS WHEREOF, the parties hereto have executed this Lease. 

	/s/ TERRENCE J. SHELDON   
 Terrence J. Sheldon, Partner Sheldon-Homedale Family L.P.	 	Date 1/11/00
	

/s/ LARRY B. PRESCOTT   
 Larry B. Prescott, Senior Vice President and Chief Financial Officer, T.J.T., Inc.	
 	

Date 1/11/00

 
 

LEGAL DESCRIPTION (EXHIBIT A TO THE LEASE AGREEMENT)    
  

    From the East quarter corner of Section 6, Township 6 North, Range 1 West, B.M., Gem County, Idaho; thence West on quarter section line 1974.15 feet, to
the West line of the State Highway; thence South on said West line of Highway 384.5 feet, for a REAL POINT OF BEGINNING; thence West 152.2 feet, more or less, to the East line of the Old County Road;
thence Southerly on said East line of County Road, 483 feet, more or less, to where said County Road turns East; thence Easterly 110 feet along the North side of said County Road to the West side of
the right of way of the State Highway; thence Northerly on the West line of said right of way 483 feet, more or less, to said REAL POINT OF BEGINNING. 

    Except
that portion of Deed to the State of Idaho for Highway in Warranty Deed dated February 26, 1970, recorded April 10, 1970 as Instrument No. 99549, records
of Gem County, Idaho. 

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LEASE AGREEMENT

WITNESSETH:

LEGAL DESCRIPTION (EXHIBIT A TO THE LEASE AGREEMENT)

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