Document:

EXHIBIT 10.25

EMPLOYMENT AGREEMENT

By and Between

QI SYSTEMS INC. and QI SYSTEMS INTERNATIONAL, INC. 
and

STEVEN R. GARMAN

Dated December 21, 2005

THIS
EMPLOYMENT AGREEMENT (“Agreement”) is made and entered into as of the 21th day of
December, 2005, by and between Steven R. Garman, an individual residing in
Colleyville, Tarrant County, Texas USA (“Employee”) and QI Systems Inc. and QI Systems
International, Inc. of Colleyville, Tarrant County, Texas USA
(collectively referred to as the “Company”).

WITNESSETH:

WHEREAS, the
Company incorporated under the Texas Business Corporation Act in the State of
Texas, USA desires to secure the employment services of Employee and

WHEREAS,
Employee desires to serve in the employment of the Company for the length of
time and on the terms and conditions set forth below:

NOW,
THEREFORE, in consideration of the mutual covenants and agreements hereinafter
set forth, the parties hereto covenant and agree as follows:

	
 

	
 

	
 

	
1.

	
Employment: The
  Company hereby agrees to continuously employ Employee in the capacity of
  President and Chief Executive Officer of the Company to provide strategic
  management and corporate leadership and Employee hereby accepts such
  employment, upon the terms and conditions set forth herein. All duties of
  Employee hereunder shall be preformed in or from the offices of the Company
  in their headquarters at 704 Saddlebrook Drive, Colleyville, Texas USA 76034
  or in or from other offices and / or locations mutually acceptable to both
  parties. The term “the Company” includes QI Systems International, Inc. and
  any and all divisions, subsidiaries and holdings, including QI Systems Inc.
  of 101-3820 Jacombs Road, Richmond, BC, Canada V6V 1 Y6.

	
 

	
 

	
2.

	
Term: The period
  of time covered by this Agreement (the “Term”) shall commence on the date
  stated above and shall remain in force from that date forward, subject only
  to termination as hereafter provided and to the Board of Directors’ annual
  review and reappointment of Employee.
  This Agreement supercedes any previous Employee Agreements between
  Employee and Company which are hereby terminated by mutual agreement and
  replaced by the conditions contained herein.

	
 

	
 

	
3.

	
Duties: During the
  Term and for so long thereafter as the Agreement continues (the “Continuance
  Period”), Employee shall perform such duties for the Company which are
  specified below and such other consistent duties and responsibilities as
  established from time to time by the Board of Directors of the Company which
  are mutually agreed to by all parties. Employee agrees that he will devote
  such time, attention and energies, as is consistent with the duties to be
  performed by him, to the business of the Company and its subsidiaries and
  affiliates, if applicable. In the performance of such duties hereunder,
  Employee shall report directly to the Board of Directors of the Company.
  During the Agreement, Employee will complete the following tasks for the
  Company:

	
 

	
 

	
 

	
A.

	
serve has
  the Company’s senior executive leader, render decisions, develop plans and
  have responsibilities for the daily operation of the Company, affiliates,
  subsidiaries, projects and ventures;

	
 

	
 

	
 

	
 

	
B.

	
will report
  to the Board of Directors in a timely and regular manner as to the status of
  the Company and its operations;

	
 

	
 

	
 

	
 

	
C.

	
at his
  discretion will enter into projects, ventures, partnerships, mutually
  beneficial business relationships and any and all other required covenants
  and agreements on behalf of the Company;

	
 

	
 

	
 

	
 

	
D.

	
will conduct
  any and all required business on behalf of the Company in addition to the
  above heretofore mentioned duties.

	
 

	
 

	
 

	
4.

	
Compensation: For
  his services on behalf of the Company, Employee shall receive total
  compensation (“Annual Compensation”) consisting of all of the elements as
  provided hereafter in this document:

	
 

	
 

	
 

	
 

	
A.

	
Employee’s base cash compensation
  (“Salary”) shall be the sum of Seventeen Thousand Five Hundred dollars
  ($17,500 US) per month payable monthly until such time that the Company has
  attained audited annual revenues of US$1.5 million at which time Employee’s monthly
  compensation shall be increased 10%.
  The new salary shall be called the 

	
 

	
 

	
 

	
 

	
 

	
 

	
Initialed by
  Company:

	
M.Y.

	
 

	
Initialed by
  Employee:

	
S.G.

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
 

	
New Base.  Each subsequent
  increase shall be based on the existing salary and be then called the New
  Base.  Upon the Company attaining
  audited Annual revenues of US$3.0 Million Employee’s monthly compensation
  shall be increased an additional 20% from the New Base.  An additional 30% increase from the New
  Base shall be due upon the company attaining audited annual revenues of
  US$5.0 million.  The salary increases
  stated above will be based solely on audited annual revenues and shall be
  separate and apart from all other compensation increases provided for in this
  document;

	
 

	
 

	
 

	
 

	
B.

	
the Company
and Employee agree to meet
  annually as soon as is reasonably possible, after the close of the fiscal
  year in each year, to review the compensation plan provided to Employee
  inconsideration of the services performed by Employee for the Company;

	
 

	
 

	
 

	
 

	
C.

	
the Company
shall ensure that Employee is
  entitled to a benefits plan (“Benefits”) and the Company shall pay for such
  health care, dental, accidental injury and long term disability insurance
  coverage as is available from time to time for those individuals who are employed
  as senior executives of the Company and these paid benefits shall be provided
  to cover the cost of health care, dental, accidental injury and long term
  disability insurance so that the coverage is available and applicable to
  Employee at his principle residence in the United States or in any other
  location where Employee might reside while working on behalf of the Company;

	
 

	
 

	
 

	
 

	
D.

	
the Company
shall provide an Executive
  Incentive Plan, in total not to exceed two hundred percent (200%) of the
  applicable base Salary in any one calendar year as set forth below:

	
 

	
 

	
 

	
 

	
 

	
1)  Financing
Bonus: should the Company be
  successful in obtaining capitalization through major financing, defined as
  the Company receiving capitalization of a minimum of one million dollars
  ($1,000,000 US) over a two year period commencing with the date of the
  Agreement, Employee shall receive a cash incentive bonus to be paid as
  follows:

	
 

	
 

	
 

	
 

	
(a)

	
first at one
  million dollars ($1,000,000 US) a bonus of two percent (2%) of the total
  financing;

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
next at two
  million dollars ($2,000,000 US) an additional bonus of one percent (1%) of
  the total financing;

	
 

	
 

	
 

	
 

	
 

	
 

	
(c)

	
at over five
  million dollars ($5,000,000 US) an additional bonus of three quarters of a
  percent (.75%) of the total financing.

	
 

	
 

	
 

	
 

	
 

	
2)  Revenue
Bonus: should the Company’s
  actual confirmed total gross revenue increase by the percentages stated
  herein by the end of the fiscal year, Employee shall be entitled to and shall
  receive the following performance based Revenue Bonus:

	
 

	
 

	
 

	
 

	
(a)

	
should gross
revenue increase by 50% over
  that of the previous fiscal year a bonus of twenty five percent (25%) of
  Employee’s Salary;

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
should gross
revenue increase from 51% to
  100% over that of the previous year a bonus of 50% of Employees Salary;

	
 

	
 

	
 

	
 

	
 

	
 

	
(c)

	
should gross
revenue increase from 101% to
  150% over that of the previous year a bonus of 75% of Employees Salary;

	
 

	
 

	
 

	
 

	
 

	
 

	
(d)

	
should gross
revenue increase in excess of
  150% over that of the previous year a bonus of 100% of Employee’s Salary.

	
 

	
 

	
 

	
 

	
 

	
3)  Profitability Bonus: should the Company
  complete the fiscal year with Net Income, Employee shall be granted a bonus
  as follows.

	
 

	
 

	
 

	
 

	
 

	
 

	
(a)

	
Net Income
  in excess of 7% of Revenues - Bonus shall be 25% of Employee’s Salary;

	
 

	
 

	
 

	
 

	
 

	
 

	
(b)

	
Net Income
  in excess of 15% of Revenues – Bonus shall be 50% of Employee’s Salary;

	
 

	
 

	
 

	
 

	
 

	
 

	
(c)

	
Net Income
  in excess of 25% of Revenues – Bonus shall be 100% of Employee’s Salary;

	
 

	
 

	
 

	
5.

	
Perquisites: Prior
  to full capitalization, Employee will be entitled to three weeks (15 business
  days) of paid vacation per year. Employee shall be entitled to the following
  perquisites after the Company has been capitalized with a minimum of one
  million five hundred thousand dollars ($1,500,000 US):

	
 

	
 

	
 

	
 

	
A.

	
four weeks
  (20 business days) of vacation during the first twelve (12) months of
  employment, eight weeks (40 business days) of vacation during each subsequent
  year of employment for the next three years and ten weeks (50 business days)
  of vacation during each subsequent year of employment beginning with the
  sixth year of employment, such vacation to be taken at a time or times
  mutually agreed to by Employee and the Company’s Board of Directors. Unused
  vacation days may be accrued from year to year, however, no more than twelve
  (12) weeks (60 business days) of vacation time may be taken by Employee in
  anyone year;

	
 

	
 

	
 

	
 

	
B.

	
the Company
  shall provide Employee with a term life insurance policy with a maximum total
  coverage of two million dollars ($2,000,000 US) or provide to Employee in a
  lump sum payment the cash equivalent of the cost of said term life insurance;

	
 

	
 

	
 

	
 

	
C.

	
the Company
  shall provide Employee with five million dollars ($5,000,000 US) D&O
  Insurance coverage or provide to Employee in a .lump sum payment the cash
  equivalent of the cost of said insurance.

	
 

	
 

	
 

	
 

	
 

	
 

	
Initialed by
  Company:

	
M.Y.

	
 

	
Initialed by
  Employee:

	
S.G.

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
 

	
6.

	
Indemnification:
  the Company will indemnify Employee against any and all liability and
  responsibility for any and all actions and situations having developed,
  occurred, or resulted from actions taken by the Company, to include the
  Company’s Board of Directors, corporate officers, corporate attomey(s),
  agents, representatives, and any other person(s), organization(s), company(s)
  or group(s) representing the Company, prior to Employee accepting the
  position of President and Chief Executive Officer for the Company.

	
 

	
 

	
7.

	
Termination: should
  Employee’s employment be terminated, the following conditions shall apply:

	
 

	
 

	
 

	
A.

	
the monthly
  compensation paid to Employee after termination shall be determined by
  reference to the Annual Compensation of the Employee averaged for the
  proceeding twelve (12) months of employment by the Company;

	
 

	
 

	
 

	
 

	
B.

	
if Employee
  has committed an act of fraud, theft, or other acts of dishonesty committed
  in the course of his employment; if he has been convicted or has pleaded
  guilty to criminal misconduct; if he has engaged in willful and material
  misconduct, including willful and material failure to perform his duties as
  an officer of the Company and has failed to cure such default within thirty
  (30) days after receipt of written notice of default from the Company, if he
  breaches his Nondisclosure & Noncompete Agreement; if he becomes totally
  disabled and cannot perform his duties as an Officer and Director of the
  Company; or if he dies, the Company may terminate Employee’s employment for
  cause (“Just Cause”) per Section 7-C;

	
 

	
 

	
 

	
 

	
C.

	
providing
  there is Just Cause then this Agreement may be terminated by the Company
  without further compensation, except in the case of disability. Should
  Employee become disabled during the Term of this Agreement, the Company shall
  pay Employee for six (6) consecutive months his applicable Salary and
  Benefits commencing as of the date and beginning with the date that a
  licensed physician, certified medical facility or recognized insurance
  provider pronounce Employee unable to continue to work in the fashion and
  manner that he had previously worked for the Company;

	
 

	
 

	
 

	
 

	
D.

	
this
  Agreement may be terminated by the Company at any time for any reason without
  legal consequences upon payment to Employee per the following schedule:

	
 

	
 

	
 

	
 

	
 

	
1)

	
for less
  than two years of continuous service to the Company Employee shall receive
  six (6) months Annual Compensation, plus any and all incentive bonus Employee
  is entitled to, plus the right to exercise all vested stock options not yet
  exercised. Further, in the event that the Company shall terminate this
  Agreement by the payment of six (6) months Compensation, then the Company shall
  continue Employee’s entitlement to all Benefits for the period of the
  Termination payments or such shorter period as Employee may advise;

	
 

	
 

	
 

	
 

	
 

	
 

	
2)

	
for three
  (3) or more years of continuous service to the Company Employee shall receive
  twelve (12) months Compensation, plus any and all incentive bonus Employee is
  entitled to, plus the right to exercise all vested stock options not yet
  exercised. Further, in the event that the Company shall terminate this
  Agreement by the payment of twelve (12) months Compensation, then the Company
  shall continue Employee’s entitlement to all Benefits for the period of the
  Termination payments or such shorter period as Employee may advice;

	
 

	
 

	
 

	
 

	
 

	
 

	
3)

	
the Company
  shall pay to Employee all outstanding and accrued vacation pay due him to the
  Date of Termination. The value of each vacation day shall be determined by
  dividing Employee’s base Salary by 260 working days per year and then
  multiplying the total by the number of applicable vacation days.

	
 

	
 

	
 

	
 

	
 

	
E.

	
if this
  Agreement is terminated as provided for in this Section 7 herein the Company
  will provide, pay for and grant to Employee the services of an executive
  placement assistance company, such as Drake Beam Morin, and will provide to
  Employee a twelve (12) month assistance program.

	
 

	
 

	
 

	
 

	
F.

	
if this
  Agreement is terminated as provided for in this Section 7 herein and if the
  Company shall pay all monies then owing to Employee as contemplated by this
  Agreement, Employee shall not have a claim against the Company whatsoever for
  damages resulting from wrongful termination, improper notice, breach of
  contract or any other reason whatsoever;

	
 

	
 

	
 

	
 

	
G.

	
should the
  Company fail to pay all monies then owing to Employee as contemplated by this
  Agreement, Employee shall unconditionally have a claim against the Company
  for damages resulting from wrongful termination, improper notice, breach of
  contract or any other reason whatsoever;

	
 

	
 

	
 

	
 

	
H.

	
in exchange
  for the payment contemplated in this Section 7, Employee shall execute such
  release as the Company may require and will execute such resignation from any
  position he may have held as an Officer and Director of the Company or any of
  its subsidiaries in such form as the Company may require.

	
 

	
 

	
 

	
8.

	
Termination Following a Control Change: For
  the purposes of this section 8, a “Control Change” means the consummation of
  a (1) dissolution or liquidation of the Company, (2) merger of the Company
  into another corporation, or any consolidation, share exchange, combination,
  reorganization, or like transaction in which the Company is not the survivor,
  or its stockholders immediately prior to the transaction are not in control
  of the survivor following such transaction, (3) sale or transfer (other than
  as security for the Company’s obligations) of at 

	
 

	
 

	
 

	
 

	
 

	
 

	
Initialed by
  Company:

	
M.Y.

	
 

	
Initialed by
  Employee:

	
S.G.

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
 

	
least a majority of the assets of the
  Company or (4) sale or transfer of 50% or more of the issued and outstanding
  common stock by the holders thereof in a single transaction or in a series of
  related transactions.  In the event of
  a Control Change, the following conditions will apply:

	
 

	
 

	
 

	
 

	
 

	
A.

	
the Company
  shall have the following obligations in the event that Employee’s employment
  is terminated subsequent to a Control Change for any reason other that Just
  Cause during the period commencing on the date hereof and ending on the
  earlier of the second anniversary of the date of the Control Change; or
  Employee’s normal retirement date deemed to be at age sixty-five (65) years;

	
 

	
 

	
 

	
 

	
 

	
1)

	
if not
  previously paid, the Company shall immediately pay Employee’s Annual
  Compensation for the current fiscal year of the Company for the period to and
  including the actual date of termination plus any incentive bonuses earned;

	
 

	
 

	
 

	
 

	
 

	
 

	
2)

	
as
  compensation for Employee’s loss of employment, an amount equal to two (2)
  times the Annual Compensation;

	
 

	
 

	
 

	
 

	
 

	
 

	
3)

	
if Employee
  holds any options, rights, warrants or other entitlements granted to him by
  the Company for the purchase or acquisition of shares in the Company
  (collectively referred to as “Rights”) and these Rights are vested, Employee
  has ninety (90) days to exercise his Rights by forwarding a certified check
  to the Company for the exercise of his Rights. Upon receipt of the certified
  check, shares in the Company will be issued to Employee;

	
 

	
 

	
 

	
 

	
 

	
 

	
4)

	
the Company
  shall pay to Employee all outstanding and accrued vacation pay due him to the
  Date of Termination. The value of each vacation day shall be determined by
  dividing Employee’s base Salary by 260 working days per year and then
  multiplying the total by the number of applicable vacation days;

	
 

	
 

	
 

	
 

	
 

	
 

	
5)

	
the Company
  shall grant the Employee 300,000 shares of common stock of the Company as
  additional compensation related to the deferral of previous salary and bonus;

	
 

	
 

	
 

	
 

	
 

	
 

	
6)

	
if this
  Agreement is terminated as provided for in this Section 8 herein the Company
  will provide, pay for and grant to Employee the services of an executive
  placement assistance company, such as Drake Beam Morin, and will provide to
  Employee a twelve (12) month assistance program.

	
 

	
 

	
 

	
 

	
 

	
B.

	
Should a
  Control Change occur, Employee shall have, at his option, the ability and
  authority to convert up to 100% of the amount then due for compensation
  earned prior to April 1, 2005 into share of common stock of the Company.  Such conversions shall be at a rate of
  US$0.12 per share, such rate being the approximate average trading value of a
  share of Company common stock on the OTCBB for the period June 3, 2003 to
  March 31, 2005.  This Amendment shall in
  no way obligate or impose upon Employee any requirement to convert any amount
  due him into shares.

	
 

	
 

	
 

	
9.

	
Date of Employment: For
  the purpose of determining Employee’s base salary, benefits, raises,
  separation rights, vacation time, bonuses, additional compensation, and any
  and all other provisions, conditions, deadlines, rights and / or any and all
  pertinent factors stated in and covered by this Agreement, Employee’s
  employment date shall be agreed to by all parties to be as of the effective
  date of June 6, 2003.

	
 

	
 

	
10.

	
Assignment: The
  Agreement shall not be assignable by either party without prior written
  consent of the other and any attempt to assign the. rights, duties or
  obligations hereunder without such consent shall be of no effect.

	
 

	
 

	
11.

	
Currency: All
  payments hereunder shall be made in the lawful currency, money and tender of
  the United States of America.

	
 

	
 

	
12.

	
Other Agreements: The
  provisions herein contained constitute the entire agreement between the
  parties and supersede all previous communications, representations and
  agreements whether or not written between the parties with respect to the
  subject matter hereof.

	
 

	
 

	
13.

	
Enurement: This
  Agreement shall enure to the benefit of and be binding upon the parties
  hereto and their respective permitted assigns.

	
 

	
 

	
14.

	
Future Assurances: Each
  of the parties heretofore named covenants and agrees to execute such further
  and other documents and instruments and to do such further actions as may be
  necessary to implement and carry out the intent of this Agreement.

	
 

	
 

	
15.

	
Changes, Alterations and Amendments:
  If at anytime during the continuance of this Agreement the Parties hereto
  deem it necessary or expedient to make any alterations or additions to this
  Agreement, they may do so by means of a written agreement between them which
  will be supplemental hereto and form part hereof and which may be subject to
  the approval of the appropriate securities regulatory bodies having true
  jurisdiction.

	
 

	
 

	
 

	
 

	
 

	
 

	
Initialed by
  Company:

	
M.Y.

	
 

	
Initialed by
  Employee:

	
S.G.

	
 

	
 

	

	
 

	
 

	

	
 

	
 

	
 

	
16.

	
Governing Law: This
  Agreement shall be governed by and construed in accordance with the laws of
  the State of Texas, United States of America, which shall be deemed to be
  proper law hereof. The Courts of Tarrant County, State of Texas, United
  States of America shall have jurisdiction (but not exclusive jurisdiction) in
  any way connected with construction, breach, or alleged, threatened or
  anticipated breach of this Agreement and shall have jurisdiction to hear and
  determine all questions as to the validity, existence enforceability hereof.

	
 

	
 

	
17.

	
Notice: All
  notice, demands and payment required or permitted to be given hereunder shall
  be in writing and may be delivered personally, sent by facsimile transmission
  or may be forwarded by first class prepaid registered mail to the addresses
  and numbers set forth below:

	
 

	
 

	
 

	
 

	
 

	
 

	
If to the
  Company:

	
 

	
 

	
 

	
QI Systems
  International, Inc.

	
 

	
 

	
 

	
Attention:
  Chairman of the Board

	
 

	
 

	
 

	
8806 Highway
  87, Lubbock, Texas USA 79423

	
 

	
 

	
 

	
Phone:
  806-745-2299, Fax: 806-745-2299

	
 

	
 

	
 

	
 

	
 

	
 

	
If to
  Employee:

	
 

	
 

	
 

	
Steven R.
  Garman

	
 

	
 

	
 

	
704
  Saddlebrook Drive, Colleyville, Texas USA 76034

	
 

	
 

	
 

	
Phone:
  817-427-8611, Fax: 817-427-8611

	
 

	
 

	
 

	
Any notice
  delivered or facsimile sent shall be deemed to have been given and received
  at the time of delivery. Any notice mailed as foresaid shall be deemed to
  have been given and received on the expiration of 72 hours after it is
  posted, addressed as set forth above, or at such other address or addresses
  as may from time to time be notified in writing by the parties hereto
  provided that if there shall be between the time of mailing and the actual
  receipt of the notice a mail strike, slowdown or other labor dispute which
  effect the delivery of such notice by the mails, then such notice shall only
  be effective if actually delivered.

	
 

	
 

	
18.

	
Severability:
  Should any part of this Agreement be declared or held invalid for any reason,
  such invalidity shall not affect the validity of the remainder which shall
  continue in force and effect and be construed as if this Agreement had been
  executed without the invalid portion and it is hereby declared the intention
  of the parties hereto that this Agreement would have been executed without
  reference to any portion which may, for any reason, be hereafter declared or held
  invalid.

	
 

	
 

	
19.

	
Counterparts: This
  Agreement may be executed in several parts in the same form and such parts as
  so executed will together constitute one original agreement, and such parts,
  if more than one, will be read together as if all the signing parties had
  executed one copy of this Agreement.

	
 

	
 

	
20.

	
Non-Waiver: No
  condoning, excusing or waiver by any party hereto of any default, breach or
  non-observance by any other party hereto at any time or times in respect of
  any covenant, proviso or condition herein contained shall operate as a waiver
  of that party’s rights hereunder in respect of any continuing or subsequent
  default, breach or non-observance, or so as to default or affect in any way
  the rights of that party in respect of any such continuing or subsequent
  default, breach, or non-observance, and no waiver shall be inferred from or
  implied by anything done or omitted to be done by the party having those
  rights.

	
 

	
 

	
21.

	
Regulatory Approval:
  Should the terms of this Agreement or the receipt of any or all applicable
  securities be deemed to be subject to regulatory approval, the Company shall
  bear the burden of making all such disclosures and filings and be solely
  responsible for any and all fines, penalties, damages and / or other cost for
  non-compliance with said policies, regulations and / or procedures.

IN WITNESS
WHEREOF the parties hereto execute this Agreement on the day and year first
written above:

	
 

	
 

	
For the
  Company:

	
For the
  Employee:

	
 

	
 

	
/s/ MATTHEW YUGOVICH

	
/s/ STEVEN R. GARMAN

	
Matthew
  Yugovich

	
Steven R.
  Garman

	
Chairman of
  the Board

	
 

	
QI Systems
  Inc.

	
704
  Saddlebrook Drive 

	
QI Systems
  International, Inc.

	
Colleyville,
  Texas

	
 

	
 

	
8806 Highway
  87

	
USA 76034

	
Lubbock,
  Texas USA 79423

	
 

	
 

	
 

	
Dated:  December 21, 2005

	
Dated:  December 21, 2005 

	
 

	
 

	
 

	
 

	
 

	
 

	
Initialed by
  Company:

	
M.Y.

	
 

	
Initialed by
  Employee:

	
S.G.Pathmark Stores, Inc. Form 8-K

Exhibit 10.1 

SEPARATION AGREEMENT

          THIS SEPARATION AGREEMENT,
dated as of December 17, 2005,  (the “Agreement”), by and between
Pathmark Stores, Inc., a  Delaware corporation (the “Company”) and
Herbert Whitney  (the “Executive”).

          WHEREAS, the Company and
the Executive are parties to a certain Employment  Agreement, dated as of December 12,
2002 (the “Employment  Agreement”);

          WHEREAS, the Company and
the Executive have previously agreed to the  Executive’s separation from and
termination as an employee and an officer  of the Company and each of its subsidiaries;

          WHEREAS, except as
otherwise set forth herein, the parties intend that this  Agreement shall set forth the
terms of the Executive’s separation and that  this Agreement shall supersede all
prior agreements between the parties  regarding the subject matter contained herein,
including the Employment  Agreement.

          NOW, THEREFORE, in
consideration of the covenants and agreements hereinafter  set forth in this Agreement,
the parties hereto hereby agree as follows:

          1. Termination. The
Executive terminated employment with the Company, effective December 17, 2005
(the “Employment End Date”), and terminated as Executive Vice
President of the Company and from all other positions, offices and directorships with the
Company and its subsidiaries and affiliates (collectively, the “Company
Group”), effective December 17, 2005 (the “Termination
Date”). The Executive’s termination shall be treated as a “termination
by the Company other than for Cause or Disability” within the meaning of the
Employment Agreement.

          2. Severance Payments
and Benefits. In consideration of the covenants set forth herein and the waiver and
release of claims set forth below, and provided that the Executive does not revoke this
Agreement during the Revocation Period (as defined below), the Company shall provide the
Executive with the following severance payments and benefits:

          (a) Severance
Payments. The Company shall pay the Executive (or in the event of his death, the
Executive’s heirs) the following severance payments (the “Severance
Payments”):

(i)  $139,750 to be paid in a lump sum on December 29, 2005; and

(ii) $5,375 to be
paid on a weekly basis in accordance with  the Company’s normal payroll practices,
for the period following the  six-month anniversary of the Employment End Date and ending
on the twenty-four  month anniversary of the Employment End Date.

          (b) Supplemental
Payments. The Company shall pay the Executive supplemental payments in the amount of
$3,430 to be paid on a monthly basis for the 26 month period following the second
anniversary of the Employment End Date (the “Supplemental Payments”)

          (c) Company Car. The
Executive shall be entitled to retain the use of the company car provided to the Executive
during his employment with the Company (the “Company Car”). Within 30 days
following the execution of this Agreement, the Company shall cause to be transferred to
the Executive the title to the Company Car free and clear of all liens, subject to Section
11(b) hereof.

          (d) Treatment of
Equity-Based Compensation. The restricted stock unit previously awarded to the
Executive under the 2000 Employee Equity Plan (together with the individual award
agreements applicable to the Executive’s awards, the “Equity
Plan”), as listed on Schedule A hereto, shall be fully vested and shall be
settled in accordance with the terms and provisions of the Equity Plan. In addition, the
stock options previously awarded to the Executive under the Equity Plan, as listed on
Schedule A (the “Stock Options”), shall be fully vested and shall remain
exercisable in accordance with the terms of the Equity Plan until the second anniversary
thereof; provided that, in the event of any merger, sale or consolidation of the
Company or other transaction affecting the Company’s Common Stock, the Compensation
Committee of the Company’s Board of Directors, in its sole discretion and without
your consent, may provide for:

      (i) the continuation
of the Stock Options by the Company (if  the Company is the surviving corporation);

      (ii) the assumption
of the Stock Options by the surviving  corporation;

     (iii) the substitution by the surviving corporation of
stock  option(s) with substantially the same terms for the outstanding Stock Options;  or

      (iv) the
cancellation of the Stock Options upon payment to you  of a per share amount in cash or
cash equivalents equal to (A) the highest  price paid for a share of the Company’s
Common Stock in such merger, sale,  consolidation or other transaction, minus (B) the
exercise price of the  applicable Stock Option.

          (e) Continuation of
Health Insurance.

2

      (i) The Company
shall continue to provide the Executive and  his dependents with health and dental
insurance coverage, including prescription  coverage and coverage under any cafeteria and
flexible spending account plan  maintained by the Company to the extent permitted under
the terms of such plan,  to the extent that such coverage is provided to the Company’s
executives  (the “Health Insurance Benefit”) until the earliest of (A) the
fourth  anniversary of the Employment End Date; (B) the date on which the Executive
becomes eligible to participate in another group health plan; or (C) the date on  which
Executive breaches any of his covenants or obligations under this  Agreement, provided,
however, that beginning after the second anniversary  of the Employment End Date, the
Company shall not provide dental and vision  coverage. In the event that the Executive
does not qualify for the  Company’s Health Insurance Benefit, the Company shall
reimburse the  Executive for the cost required to maintain a comparable Health Insurance
Benefit. The Executive agrees to promptly notify the Company in writing in the  event
that the Executive obtains coverage under another group health plan. The  Executive shall
continue to be obligated to pay his share of premiums,  deductibles and co-payments as in
effect from time to time, if applicable, and  such employee contributions shall be
deducted from the severance payments  provided for in Section 2(a) hereof, it being
understood such employee  contributions for the six-month period following the Employment
End Date shall  be deducted from the payment described in Section 2(a)(i) hereof.

      (ii) Executive
agrees that if at any time he becomes eligible  for Medicare, he shall apply for Medicare
and when accepted, substitute Medicare  coverage for any Company-provided health
insurance plan.

          (f) Life Insurance.
The Company shall continue the Company-provided portion of Executive’s group life
insurance coverage and continue to pay the employer portion of the applicable premiums,
until the earliest of (i) the second anniversary of the Employment End Date,
(ii) the date on which the Executive becomes eligible for coverage under the benefit
plans of a subsequent employer, (iii) the date on which Executive breaches any of his
covenants or obligations under this Agreement or (iv) upon the effective date of
written notice by the Executive to the Company that he wishes to terminate such coverage.

          (g) Pension/401(k)
Plan. The Executive’s participation in the Company’s Savings Plan, Pension
Plan and Excess Benefit Plan and the Supplemental Retirement Agreement, dated as of
October 4, 2001, between the Company and the Executive (the “Retirement
Plans”) shall terminate on the Employment End Date. The Executive’s rights
and obligations under the Retirement Plans shall be governed by applicable law and the
terms and conditions of the Retirement Plans, as the same may be amended as provided in
Section 11(c) hereof.

3

          (h) Accrued Salary.
The Company has paid the Executive the full amount of the accrued but unpaid salary that
he earned through the Employment End Date.

          (i) Accrued Vacation.
The Company shall pay the  Executive an amount of $10,750, representing all of the
Executive’s accrued  but unused vacation through the Employment End Date, on or
before December 29,  2005.

          (j) Legal Fees. The
Company shall pay a law firm directly, in an amount not to exceed $10,000, for the
reasonable legal fees incurred by the Executive in connection with the review of this
Agreement.

          (k) No Other
Compensation or Benefits. Except as otherwise specifically provided herein or as
required by Section 4980B(f) of the Internal Revenue Code of 1986, as amended
(the “Code”), or other applicable law, the Executive shall not be
entitled to any compensation or benefits or to participate in any past, present or future
employee benefit programs or arrangements of any member of the Company Group (including,
without limitation, any compensation or benefits under any severance plan, program or
arrangement) on or after the Employment End Date.

          3. Return of
Property. On or prior to the Employment End Date, the Executive surrendered to the
Company all property of the Company Group in the Executive’s possession (other than
the Company Car) and all property made available to the Executive in connection with his
employment by the Company, including, without limitation, any and all Company credit
cards, keys, security access codes, records, manuals, customer lists, notebooks,
computers, computer programs and files, papers, electronically stored information and
documents kept or made by the Executive in connection with his employment. The Executive
shall delete all electronically stored information and documents relating to the Company
kept or made by the Executive in connection with his employment that were stored on his
personal computer and laptop.

          4. Cooperation. From
and after the date hereof, the Executive shall cooperate in all reasonable respects with
the Company Group and their respective directors, officers, attorneys and experts in
connection with the conduct of any action, proceeding, investigation or litigation
involving the Company Group, including any such action, proceeding, investigation or
litigation in which the Executive is called to testify. The Company agrees to reimburse
the Executive for all reasonable out-of-pocket expenses incurred by the Executive in
connection with such cooperation.

          5. Unfavorable
Comments.

          (a) Public Comments by
the Executive. The Executive agrees to refrain from making, directly or indirectly,
now or at any time in the future, whether in writing, orally or electronically:
(i) any derogatory comment concerning the Company Group or any of their current or
former directors, officers, employees or shareholders, or (ii) any other comment that
could reasonably be expected to be detrimental to the business or financial prospects or
reputation of the Company Group.

4

          (b) Public Comments by
the Company. The Company shall require its directors and executive officers
to refrain from making, directly or indirectly, now or at any time in the future, whether
in writing, orally or electronically: (i) any derogatory comment concerning the
Executive, or (ii) any other comment that could reasonably be expected to be
detrimental to the Executive’s business or financial prospects or reputation.

          6. Noncompetition;
Nonsolicitation; Confidentiality.

          (a) Noncompetition.
During the period commencing on the date hereof and ending on the second anniversary of
the Employment End Date (the “Restricted Period”), the Executive
shall not, without the prior written consent of the Company’s Board of Directors,
directly or indirectly, whether as owner, consultant, employee, partner, joint venturer,
or agent, through stock ownership, investment of capital, lending of money or property,
rendering of services, or otherwise (except ownership of less than 1% of the number of
shares outstanding of any securities which are publicly traded), compete in the States of
New Jersey, New York, Delaware or Pennsylvania with the retail supermarket or drugstore
business of the Company or any parent or subsidiary of the Company (such businesses are
individually and as a group hereinafter referred to as the “Business”),
provide services to, whether as an employee or consultant, own, manage, operate, control,
participate in or be connected with (as a stockholder, partner, or any similar ownership
interest) any corporation, firm, partnership, joint venture, sole proprietorship or other
entity which so competes with the Business, except for the aforementioned 1% ownership of
publicly traded securities. The parties acknowledge that the manufacture, processing or
distribution of products sold in the retail supermarket or drugstore business shall not,
in and of itself constitute competition with the Business.

          (b) Nonsolicitation.
During the Restricted Period, the Executive shall not, without the prior written consent
of the Company’s Board of Directors, directly or indirectly (i) solicit in
competition with the Business any person, group or class of persons who at any time either
during the Executive’s employment with the Company have any business relationship
with the Business, the loss, diminution or moderation of which would likely be detrimental
to the Business (it being understood that such solicitation shall not include the
Executive’s utilization of any provider of services or products to the Business in
any business in which he may be engaged or employed other than the Business);
(ii) solicit or recruit, directly or indirectly, any employee or independent
contractor of the Company for the purpose of being employed by the Executive, directly or
indirectly, or by any competitor of the Company on behalf of which the Executive is acting
as an agent, representative or employee; (iii) solicit, influence, or attempt to
influence, for a purpose or in a manner that would likely be materially detrimental to the
Business, any provider of services or products to the Business with respect to its
relationship with the Business, including, without limitation, any person or entity which
has been a provider of services or products to the Business during the Executive’s
employment with the Company, or take any action detrimental to the existing or prospective
relationships between the Business and any provider of services; or (iv) assist or
encourage any other person in carrying out, directly or indirectly, any activity that
would be prohibited by the provisions of this Section 6(b) if such activity were carried
out by the Executive, and, in particular, the Executive agrees that he will not, directly
or indirectly, induce any employee of the Business to carry out any such activity.

5

          (c) Confidentiality.
The Executive recognizes that the services he performed for the Company are special,
unique and extraordinary in that he has acquired confidential information and trade
secrets concerning the operations of the Company Group the use or disclosure of which
could cause the Company substantial loss and damages which could not be readily
calculated, and for which no remedy at law would be adequate. Accordingly, the Executive
covenants and agrees with the Company that the Executive will not at any time, except with
the prior written consent of the Company, directly or indirectly, disclose any secret or
confidential information that the Executive learned by reason of his association with the
Company. The term “confidential information” includes, without
limitation, information not previously disclosed to the public or to the trade by the
Company’s management with respect to the Company or any of its parent’s or
subsidiaries’ business plans, prospects and opportunities, the identity of any
suppliers, proprietary information regarding customers, operational strengths and
weaknesses, trade secrets, know-how and other intellectual property, systems, procedures,
manuals, confidential reports, product price lists, marketing plans or strategies, and
financial information.

          7. Exclusive
Property. The Executive confirms that all “confidential information” (as
such term is used in the Employment Agreement) is and shall remain the exclusive property
of the Company Group. All business records, papers and documents kept or made by the
Executive relating to the business of the Company Group shall be and remain the property
of the Company Group. The Executive further confirms that, on or prior to the Termination
Date, the Executive surrendered to the Company all copies and extracts of any written
confidential information acquired or developed by the Executive during any such
employment, shareholding or association, and that the Executive has not removed or taken
from the premises of any member of the Company Group any written confidential information
or any copies or extracts thereof. Upon the request and at the expense of the Company
Group, the Executive shall promptly make all disclosures, execute all instruments and
papers and perform all acts reasonably necessary to vest and confirm in the Company Group,
fully and completely, all rights created or contemplated by this Section 7.

6

          8. Certain Remedies.

          (a) Remedies.
Without intending to limit the remedies available to the Company Group, including, but not
limited to, those set forth in Section 8(b) hereof, the Executive agrees that a breach of
any of the covenants contained in this Agreement may result in material and irreparable
injury to the Company Group for which there is no adequate remedy at law, that it will not
be possible to measure damages for any such injuries precisely and that, in the event of
such a breach or threat thereof, any member of the Company Group shall be entitled to seek
a temporary restraining order or a preliminary or permanent injunction, or both, without
bond or other security, restraining the Executive from engaging in activities prohibited
by the covenants contained in this Agreement or such other relief as may be required
specifically to enforce any of the covenants contained in this Agreement. Such injunctive
relief in any court shall be available to the Company Group, upon proofs satisfactory to
the court, in lieu of, or prior to or pending determination in, any arbitration
proceeding.

          (b) Cessation of Payments.

      (i) In the event
that the Executive (A) files any charge,  claim, demand, action or arbitration with
regard to the Executive’s  employment, compensation or termination of employment
under any federal, state  or local law, or an arbitration under any industry regulatory
entity, except in  either case for a claim for breach of this Agreement or failure to
honor the  obligations set forth herein, or (B) breaches or has breached any of the
covenants or representations contained in this Agreement, the Company shall be  entitled
to cease making any payments due hereunder.

      (ii) In the event
the Beneficiary (as defined in the  Supplemental Retirement Agreement dated as of October
4, 2001 (the  “SRA”) between the Company and the Executive) becomes eligible to
receive benefits under the SRA prior to the second anniversary of the Employment  End
Date, the Company shall not be obligated to commence the Supplemental  Payments.

      (iii) In the event
the Beneficiary becomes eligible to receive  benefits under the SRA on or after the
second anniversary of the Employment End  Date, the Company shall be entitled to cease
making the Supplemental Payments  hereunder.

          9. Release.

7

          (a) General Release.
In consideration of the payments and benefits provided to the Executive under this
Agreement and after consultation with counsel, the Executive, and each of the
Executive’s respective heirs, executors, administrators, representatives, agents,
successors and assigns (collectively, the “Releasors”) hereby
irrevocably and unconditionally releases and forever discharges the Company Group and each
of its respective officers, employees, directors, shareholders and agents from any and all
claims, actions, causes of action, rights, judgments, obligations, damages, demands,
accountings or liabilities of whatever kind or character (collectively,
“Claims”), including, without limitation, any Claims under any federal,
state, local or foreign law, that the Releasors may have, or in the future may possess,
arising out of (i) the Executive’s employment relationship with and service as
an employee, officer or director of the Company Group, and the termination of such
relationship or service, (ii) the Employment Agreement, or (iii) any event,
condition, circumstance or obligation that occurred, existed or arose on or prior to the
date hereof; provided, however, that the release set forth in this Section
9(a) shall not apply to (i) the obligations of the Company under this Agreement and
(ii) any indemnification rights the Executive may have in accordance with the
Company’s governance instruments or under any director and officer liability
insurance maintained by the Company with respect to liabilities arising as a result of the
Executive’s service as an officer and employee of the Company. The Releasors further
agree that the payments and benefits described in this Agreement shall be in full
satisfaction of any and all Claims for payments or benefits, whether express or implied,
that the Releasors may have against the Company Group arising out of the Executive’s
employment relationship or the Executive’s service as an employee, officer and
director of the Company Group and the termination thereof.

          (b) Specific Release of
ADEA Claims. In further consideration of the payments and benefits provided to the
Executive under this Agreement, the Releasors hereby unconditionally release and forever
discharge the Company Group, and each of their respective officers, employees, directors,
shareholders and agents from any and all Claims that the Releasors may have as of the date
the Executive signs this Agreement arising under the Federal Age Discrimination in
Employment Act of 1967, as amended, and the applicable rules and regulations promulgated
thereunder (“ADEA”). By signing this Agreement, the Executive hereby
acknowledges and confirms the following: (i) the Executive was advised by the Company
in connection with his termination to consult with an attorney of his choice prior to
signing this Agreement and to have such attorney explain to the Executive the terms of
this Agreement, including, without limitation, the terms relating to the Executive’s
release of claims arising under ADEA and, the Executive has in fact consulted with an
attorney; (ii) the Executive was given a period of not fewer than 21 days to consider
the terms of this Agreement and to consult with an attorney of his choosing with respect
thereto; (iii) the Executive is providing the release and discharge set forth in this
Section 9(b) only in exchange for consideration in addition to anything of value to which
the Executive is already entitled; and (iv) that the Executive knowingly and
voluntarily accepts the terms of this Agreement.

          (c) No Assignment.
The Executive represents and warrants that he has not assigned any of the Claims being
released under this Section 9.

8

          (d) Claims. The
Executive agrees that he has not instituted, assisted or otherwise participated in
connection with, any action, complaint, claim, charge, grievance, arbitration, lawsuit,
administrative agency proceeding, or action at law or otherwise against any member of the
Company Group or any of their respective officers, employees, directors, shareholders or
agents.

          10. Company Release.
The Company Group and each of its respective officers, employees, directors, shareholders
and agents hereby irrevocably and unconditionally release the Executive from any and all
Claims arising from or in connection with the Executive’s employment by the Company
Group and/or separation therefrom and/or the post-separation period thereafter up to and
including the date hereof; provided, however, that the release set forth in
this Section 10 shall not apply to Claims arising from or in connection with material
facts not known to the Company’s executives on the date hereof or to the obligations
of Executive under this Agreement.

          11. Miscellaneous.

          (a) Entire
Agreement. This Agreement sets forth the entire agreement and understanding of the
parties hereto with respect to the matters covered hereby and supersedes and replaces any
express or implied, written or oral, prior agreement, plan or arrangement with respect to
the terms of the Executive’s employment and the termination thereof which the
Executive may have had with the Company Group, but excluding the Retirement Plans and,
with respect to the awards listed on Schedule A, the Equity Plan. Except as set forth in
Section 11(d) below, this Agreement may be amended only by a written document signed by
the parties hereto.

          (b) Withholding
Taxes. Any payments made or benefits provided to the Executive under this Agreement
shall be reduced by the lowest applicable withholding taxes.

          (c) Section 409A. If
any provision of this Agreement contravenes Section 409A of the Code, the regulations
promulgated thereunder or any related guidance issued by the U.S. Treasury Department,
this Agreement shall be reformed to maintain to the maximum extent practicable the
original intent of the provision without violating the requirements of Section 409A of the
Code. In addition, if the Company shall, with respect to any other employee of the
Company, amend any nonqualified deferred compensation plan (as defined in Section 409A(d)
of the Code) to comply with or to conform to the provisions of Section 409A of the Code,
the Company shall similarly amend any comparable such plan with respect to the Executive.

          (d) Governing Law.
This Agreement shall be governed by, and construed in accordance with, the laws of the
State of New Jersey.

9

          (e) Waiver. The
failure of any party to this Agreement to enforce any of its terms, provisions or
covenants shall not be construed as a waiver of the same or of the right of such party to
enforce the same. Waiver by any party hereto of any breach or default by another party of
any term or provision of this Agreement shall not operate as a waiver of any other breach
or default.

          (f) Severability. In
the event that any one or more of the provisions of this Agreement shall be held to be
invalid, illegal or unenforceable, the validity, legality and enforceability of the
remainder of the Agreement shall not in any way be affected or impaired thereby. Moreover,
if any one or more of the provisions contained in this Agreement shall be held to be
excessively broad as to duration, activity or subject, such provisions shall be construed
by limiting and reducing them so as to be enforceable to the maximum extent allowed by
applicable law.

          (g) Notices. Any
notices required or made pursuant to this Agreement shall be in writing and shall be
deemed to have been given when delivered by hand, sent by telecopier or mailed by United
States registered mail, return receipt requested, postage prepaid, addressed to General
Counsel, Pathmark Stores, Inc., 200 Milik Street, Carteret, New Jersey 07008, telecopier:
(732) 499-6891, or to the Executive at his current address on the books and records of the
Company, or to such other address as either party may furnish to the other in writing in
accordance with this Section 11(h). Notices of change of address shall be effective only
upon receipt.

          (h) Descriptive
Headings. The paragraph headings contained herein are for reference purposes only and
shall not in any way affect the meaning or interpretation of this Agreement.

          (i) Counterparts.
This Agreement may be executed in one  or more counterparts, which, together, shall
constitute one and the same  agreement.

          (j) Successors and
Assigns. Except as otherwise provided herein, this Agreement shall inure to the
benefit of and be binding upon and enforceable by and against the Executive and the
Company and their respective successors and assigns (and in the event of the
Executive’s death, the Executive’s heirs). The Company will require any
successor (whether direct or indirect , by purchase, merger, consolidation or otherwise)
to all or substantially all of the business or assets of the Company expressly to assume
and to agree to perform this Agreement in the same manner and to the same extent that the
Company would be required to perform it if no such succession had taken place;
provided, however, that no such assumption shall relieve the Company of its
obligations hereunder.

10

          (k) Arbitration. Any
dispute or controversy arising under this Agreement that cannot be mutually resolved by
the Executive and the Company shall be settled exclusively by arbitration in accordance
with the rules of the American Arbitration Association in New Jersey before one arbitrator
of exemplary qualifications and stature, having due regard to the subject matter of the
dispute or controversy, who shall be selected jointly by the Executive and the Company,
or, if agreement on the selection of the arbitrator cannot be reached, shall be selected
by the American Arbitration Association; provided that any arbitrator selected by
the American Arbitration Association shall not, without the consent of both the Executive
and the Company, be affiliated with the Executive or the Executive’s affiliates or
the Company or its affiliates. Judgment may be entered on the arbitrator’s award in a
New Jersey State Court. The arbitrator shall be empowered to enter an equitable decree
mandating specific enforcement of the terms of this Agreement. Each party shall bear its
own expenses incurred in any arbitration arising out of a dispute or controversy under
this Agreement. Notwithstanding any other provisions of this Section 11(l), in the event
that any dispute or controversy arising with respect to the payments or benefits under
Section 2 hereof is referred to arbitration by the Executive under this Section 11(l) to
require the Company to provide such payments or benefits, and the arbitrator enters an
award in favor of the Executive with respect thereto, the arbitrator shall also enter an
award in favor of the Executive and against the Company of reasonable attorneys’ fees
and costs.

          12. Revocation. This
Agreement may be revoked by the Executive within the seven-day period commencing on the
date the Executive signs this Agreement (the “Revocation Period”),
and, accordingly, shall not become effective until the day following the last day of the
Revocation Period. In the event of any such revocation by the Executive, all obligations
of the parties under this Agreement shall terminate and be of no further force and effect
as of the date of such revocation. No such revocation by the Executive shall be effective
unless it is in writing and signed by the Executive and received by the Company prior to
the expiration of the Revocation Period. The Executive shall have a period of 21 days from
the date hereof to consider this Agreement and to consult with an attorney with respect
thereto. If Executive does not sign this Agreement during such twenty-one-day period,
then, upon expiration of such period, this Agreement shall be considered to have been
withdrawn by the Company and shall be void and without effect.

11

IN WITNESS WHEREOF, the Company has executed this Agreement as of the date
first set forth above and the Executive has executed this Agreement as of the
date set forth below (or, if the Executive does not include a date under the
Executive’s signature line, the date set forth shall be the date this
Agreement, signed by the Executive, is received by the Company).

PATHMARK STORES, INC.

By: /s/ John T. Standley

Name: John T. Standley

Title: Chief Executive Officer

          THE EXECUTIVE HEREBY
ACKNOWLEDGES THAT THE EXECUTIVE HAS READ THIS  AGREEMENT, THAT THE EXECUTIVE FULLY KNOWS,
UNDERSTANDS AND APPRECIATES ITS  CONTENTS, AND THAT THE EXECUTIVE HEREBY ENTERS INTO THIS
AGREEMENT VOLUNTARILY  AND OF HIS OWN FREE WILL.

ACCEPTED AND AGREED:

/s/ Herbert Whitney

Herbert Whitney

Date: December 17, 2005

#32262

12

Schedule A

Restricted Stock Unit

	Grant Date	Number of Shares
	 
	6/09/05	2,500

Stock Options

	Grant Date	Number of Shares 	Exercise Price
	 
	10/25/2000	 	32,000	 	$13.94	 
	03/29/2001	 	20,000	 	$17.25	 
	10/05/2001	 	100,000	 	$22.35	 
	09/12/02	 	28,000	 	$11.70	 
	10/28/2002	 	50,000	 	$  4.65	 
	06/09/2005	 	12,500	 	$  8.60

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