Document:

<PAGE>

                              AMENDED AND RESTATED
                              EMPLOYMENT AGREEMENT

         This Amended and Restated Employment Agreement ("Agreement") is entered
into as of the 29th day of October, 2001, by and between Integrity Incorporated,
a Delaware corporation, ("Employer") and Danny McGuffey ("Employee").

         In consideration of the promises, covenants and conditions set forth
herein, and for other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged, Employee and Employer agree as
follows:

1.       Employment.

         Employer hereby employs Employee, and Employee hereby accepts
employment in the position of Senior Vice President and Chief Marketing Officer
(the "Position") upon the terms and conditions hereinafter set forth.

2.       Services.

         During the term of employment hereunder, Employee shall devote his full
professional time and energy to the performance of his duties as Senior Vice
President and Chief Marketing Officer and shall use his best efforts in the
performance of the same. Employer and Employee agree that Employee's duties in
the Position shall be determined by Employer and may be altered by Employer from
time to time at its sole discretion. Employer and Employee acknowledge and agree
that Employee's initial duties in the Position shall consist of, among other
things, general oversight of retail sales, marketing and packaging, special
markets, direct response marketing and sales, and internet marketing and sales.

3.       Compensation.

         For, and in consideration of, the promises and covenants made herein
and the services to be provided hereunder, Employer agrees to compensate
Employee as follows:

         (a)      Base Compensation. Employer shall pay to Employee an annual
                  base salary in the amount of One Hundred Seventy-Five Thousand
                  Dollars and No Cents ($175,000.00), less taxes and other
                  normal withholdings. Said salary shall be paid to Employee in
                  equal semi-monthly installments. Employer shall pay to
                  Employee a minimum annual bonus in the amount of Ten Thousand
                  Dollars and No Cents ($10,000.00), less taxes and other normal
                  withholdings. Said bonus shall be paid to Employee in equal
                  quarterly installments. The annual base salary and annual
                  bonus referred to in this Section 3(a) shall hereinafter be
                  referred to as the "Annual Base Compensation." The Annual Base
                  Compensation may be increased for merit or cost of living
                  during the term of this Agreement at the discretion of
                  Employer.

<PAGE>

         (b)      Covenant Not to Compete Payment. For, and as additional
                  consideration for, the covenant not to compete contained in
                  Section 10 hereof, Employer shall make a one time payment to
                  Employee of Fifty Thousand Dollars and No Cents ($50,000.00),
                  less taxes and other normal withholdings, on the date that
                  Employee executes this Agreement.

         (c)      Retention Bonus. In addition to the Annual Base Compensation
                  set forth in Section 3(a), Employer shall pay Employee a
                  retention bonus in the total aggregate amount of Seventy
                  Thousand Dollars and No Cents ($70,000.00), less taxes and
                  other normal withholdings, beginning on August 1, 2003 and
                  continuing through August 1, 2006, and to be paid as follows,
                  if he remains employed on the following dates:

<TABLE>
<CAPTION>
                           Date of Payment                    Amount of Payment
                           ---------------                    -----------------
                           <S>                                <C>

                           August 1, 2003                     $10,000.00

                           August 1, 2004                     $10,000.00

                           August 1, 2005                     $10,000.00

                           August 1, 2006                     $40,000.00
</TABLE>

         (d)      Benefits. Employee shall be entitled to receive or participate
                  in all employment benefits or benefit plans as generally made
                  available by Employer to its employees, if any, to the same
                  extent and under the same conditions as other covered
                  employees.

         (e)      Vacation. Employee shall be entitled to four weeks of paid
                  vacation per fiscal year.

         (f)      Bonus. As long as Employee holds an executive officer position
                  with Employer, Employee shall be eligible to receive cash
                  bonuses under the executive cash bonus compensation system
                  established from time to time by the Employer. Under such
                  system, cash bonuses are awarded in the judgment of the
                  Compensation Committee of the Board of Directors of the
                  Employer based on the achievement of budgeted targets and the
                  individual performance of the Employee.

         (g)      Options. Employer shall have granted, as part of the original
                  offer letter dated December 20, 1996, incentive stock options
                  to purchase 50,000 shares of the Employer's Class A Common
                  Stock pursuant to the Employer's Incentive Stock Option Plan.
                  In addition, Employer shall have granted incentive stock
                  options to purchase 50,000 shares of the Employer's Class A
                  Common Stock pursuant to the Employer's Incentive Stock Option
                  Plan on August 6, 1999.

                                      -2-
<PAGE>

         (h)      Restricted Stock Award. Employer shall grant Employee 50,000
                  shares of Employer's Class A Common Stock pursuant to
                  Employer's 2001 Long Term Incentive Plan ("2001 LTIP") on the
                  later of (i) the date of the adoption of the 2001 LTIP by the
                  Board of Directors or (ii) the date of the execution of this
                  Agreement. The shares received in the grant shall be
                  restricted shares of Class A Common Stock and shall be
                  scheduled to vest on the seventh anniversary of this
                  Agreement.

4.       Term and Termination.

         Employee's employment with Employer began on the 1st day of January,
1997. The term of this Agreement, however, shall begin on the date hereof and
shall continue until terminated as provided in this Agreement. Employee
acknowledges and agrees that this Agreement, and his employment with Employer,
shall be terminated upon the occurrence of any of the following events:

         (a)      Employee's death;

         (b)      Employee becoming or remaining Disabled for substantially
                  continuous period of six months. For purposes of this
                  Paragraph, the term "Disabled" shall mean Employee's inability
                  to perform the essential functions of his position with or
                  without reasonable accommodation;

         (c)      Mutual written agreement between Employer and Employee to
                  terminate;

         (d)      Upon six (6) months prior written notice of termination from
                  Employer to Employee for any reason or no reason at all.
                  Provided: Employer, at its sole discretion, may elect to pay
                  to Employee an amount equal to Employee's salary for six (6)
                  months in lieu of providing the notice set forth in this
                  subparagraph; or

         (e)      Immediately upon written notice of termination from Employer
                  "for cause." For purposes of this Agreement, a termination
                  shall be considered to be "for cause" if it occurs in
                  conjunction with a determination by Employer that Employee has
                  committed or engaged in either (i) any act that constitutes,
                  on the part of Employee, fraud, dishonesty, breach of
                  fiduciary duty or (ii) conduct by Employee in his office with
                  the Employer that is grossly inappropriate and demonstrably
                  likely to lead to material injury to Employer, as determined
                  by the Board of Directors of Employer acting reasonably and in
                  good faith; provided, that in the case of (ii) above, such
                  conduct shall not constitute "cause" unless Employer's Board
                  of Directors shall have delivered to Employee notice setting
                  forth with specificity (A) the conduct deemed to qualify as
                  "cause", (B) reasonable action that would remedy such
                  objection, and (C) a reasonable time (not less than thirty
                  (30) days) within which Employee may take such remedial action
                  within the specified time.

                                      -3-
<PAGE>

5.       Severance.

         (a)      Subject to the restrictions set forth below in this Section
                  5(a), if Employee's employment with Employer is terminated
                  pursuant to Section 4(d), Employee shall be entitled to
                  receive as a severance benefit aggregate severance payments in
                  an amount equal to the amount of the Employee's annual salary
                  under this Employment Agreement at the time of termination
                  multiplied by 2 [less any amount paid in lieu of termination
                  notice under Section 4(d)] (the "Severance Payments"). The
                  Severance Payments may be made by the Employer as semi-monthly
                  salary continuation payments or as a lump sum payment within
                  ninety (90) days after termination of Employee's employment
                  with Employer, as determined by the Employer in its sole and
                  absolute discretion. Notwithstanding the foregoing, Employee
                  shall not be entitled to receive any further Severance
                  Payments, and any right to such Severance Payments shall be
                  forfeited, upon the occurrence of any of the following events:
                  (i) the second anniversary of the Employee's date of
                  termination from Employer, or (ii) the date of Employee's
                  violation of the terms of Section 7, 8, 9 or 10 hereof.

         (b)      In addition to the Severance Payments outlined in paragraph
                  (a), if Employee's employment with Employer is terminated
                  pursuant to Section 4(d), Employee shall be entitled to be
                  reimbursed for the cost of COBRA health insurance continuation
                  benefits until the earlier of (i) eighteen (18) months from
                  the date of the Employee's termination with Employer, or (ii)
                  the date of Employee's violation of the terms of Section 7, 8,
                  9 or 10 hereof. Employee's rights to the foregoing health
                  insurance benefits shall terminate as to any benefit for which
                  he becomes eligible that provides substantially similar
                  benefits on substantially similar terms through a program of a
                  subsequent employer or otherwise (such as through coverage
                  obtained by Employee's spouse).

         (c)      If Employee is entitled to severance benefits upon termination
                  of employment under the terms of a Key Employee Change in
                  Control Agreement with the Employer, the Employee shall not be
                  entitled to any severance benefits under this Agreement.

6.       Change in Control.

         Contemporaneously with their execution of this Agreement, Employer and
Employee have agreed to and executed a separate agreement entitled Key Employee
Change in Control Agreement ("Change in Control Agreement"). The Change in
Control Agreement, which is attached hereto as Exhibit A, is hereby expressly
incorporated into and made a part of this Agreement as if its terms were set
forth in full herein.

                                      -4-
<PAGE>

7.       Non-disclosure of Confidential Information.

                  (a)      Definitions.

         The following definitions shall apply to this Agreement:

                           (i)      "Trade Secrets" means all secret,
                  proprietary or confidential information regarding Employer or
                  its business, including any and all information not generally
                  known to, or ascertainable by, persons not employed by
                  Employer, the disclosure or knowledge of which would permit
                  those persons to derive actual or potential economic value
                  therefrom or to cause economic or financial harm to Employer.
                  Such information shall include, but not be limited to,
                  financial information, strategic plans and forecasts,
                  marketing plans and forecasts, customer lists, mailing lists,
                  computer software (including without limitation, source code,
                  object code and manuals), customer billing or order
                  information, technical information regarding Employer's
                  products or services, prices offered to or paid by customers,
                  purchase and supply information, current and future
                  development and expansion or contraction plans of Employer,
                  sales and marketing plans and techniques, information
                  concerning personnel assignments and operations of Employer
                  and matters concerning the financial affairs, future plans and
                  management of Employer. "Trade Secrets" shall not include
                  information that has become generally available to the public
                  by the act of one who has the right to disclose such
                  information without violating a legal right of Employer.

                           (ii)     "Confidential Information" means
                  information, other than Trade Secrets, which relates to
                  Employer, Employer's activities, Employer's business or
                  Employer's suppliers or customers that is not generally known
                  by persons not employed by Employer and which is or has been
                  disclosed to Employee or of which Employee became aware as a
                  consequence of or through his relationship to Employer.
                  "Confidential Information" shall not include information that
                  has become generally available to the public by the act of one
                  who has the right to disclose such information without
                  violating any legal right of Employer.

                           (iii)    "Documents" means originals or copies of
                  handbooks, manuals, files, memoranda, correspondence, notes,
                  photographs, slides, overheads, audio or visual tapes,
                  cassettes, or disks, and records maintained on computer or
                  other electronic media.

                  (b)      Covenant Regarding Non-disclosure of Trade Secrets or
                           Confidential Information.

                  Employee covenants and agrees that: (i) during his employment
                  with Employer he will not use or disclose any Trade Secrets or
                  Confidential Information of Employer other than as necessary
                  in connection with the

                                      -5-
<PAGE>

                  performance of his duties as an employee of Employer; and (ii)
                  for a period of two (2) years immediately following the
                  termination of his employment with Employer, Employee shall
                  not, directly or indirectly, transmit or disclose any Trade
                  Secret or Confidential Information of Employer to any person
                  and shall not make use of any such Trade Secret or
                  Confidential Information, directly or indirectly, for himself
                  or others, without the prior written consent of Employer,
                  except for a disclosure that is required by any law or order,
                  in which case Employee shall provide Employer prior written
                  notice of such requirement and an opportunity to contest such
                  disclosure. However, to the extent that such information is a
                  "trade secret" as that term is defined under a state or
                  federal law, this subparagraph is not intended to, and does
                  not, limit Employer's rights or remedies thereunder and the
                  time period for prohibition on disclosure or use of such
                  information is until such information becomes generally known
                  to the public through the act of one who has the right to
                  disclose such information without violating a legal right of
                  Employer.

                  (c)      Return of Information.

                  Employee agrees that he shall return all Trade Secrets,
                  Confidential Information or other property of Employer
                  immediately upon the termination of his employment with
                  Employer, including all handbooks, training materials,
                  reports, policy statements, programs, customer lists, mailing
                  lists and other documents provided by Employer or acquired by
                  Employee as a result of his employment with Employer, and all
                  copies thereof.

8.       Inventions and Other Developments.

         All inventions, formulas, techniques, processes, concepts, systems and
programs, mailing lists and customer lists and compilations, whether or not
patented or patentable, or subject to copyright, made or conceived, individually
or in conjunction with others, by Employee during the term of his employment
with Employer that relate to activities or proposed activities of Employer or
that result from work performed by Employee for Employer are the sole and
exclusive property of Employer; provided, that Employee shall retain all rights
to, and may copyright in his name, all songs written by Employee. Employee
further agrees that, subject to the proviso in the immediately preceding
sentence, upon request by Employer, he will assign title to any such inventions,
formulas, techniques, processes, concepts, systems and programs, and lists and
compilations to Employer and will sign any and all documents necessary to effect
such assignment.

9.       Non-recruitment or Interference Covenant.

         Employee agrees that he will not, for so long as he is employed by
Employer, and for a period of two (2) years immediately following the
termination of his employment: (a) solicit or induce, or attempt to solicit or
induce, any employee of the Employer to terminate his or her relationship with
Employer or to enter into an employment or agency

                                      -6-
<PAGE>

relationship with Employee or with any other person or entity other than
Employer; or (b) solicit or induce, or attempt to solicit or induce, any artist
or songwriter with whom Employee had business contact on behalf of Employer
during his employment to terminate or reduce his or her relationship with
Employer or its subsidiaries.

10.      Covenant Not to Compete.

         Employee expressly covenants and agrees that during the term of his
employment with Employer and for a period of two (2) years immediately following
the termination of said employment for any reason, he will not, directly or
indirectly, seek, obtain or accept a "Competitive Position" in the "Restricted
Territory" with a "Competitor" of Employer. For purposes of this Agreement, a
"Competitor" of Employer is any business, individual, partnership, joint
venture, association, firm, corporation or other entity engaged, wholly or in
part, in the production, publishing or distribution of Christian music products,
such as videos, compact discs, cassette tapes, trax and songbooks; a
"Competitive Position" is any ownership of or employment or consulting with a
"Competitor" of Employer in a position in which Employee will use or is likely
to use any Confidential Information or Trade Secrets (as those terms are defined
in Paragraph 7 of this Agreement), or in which Employee will have direct or
indirect responsibility for, or supervision of, any position for such Competitor
which is the same or substantially similar to any position of Employer over
which Employee had direct or indirect responsibility or supervisory authority;
and "Restricted Territory" is the geographical area in which Employee directly
or indirectly oversees the performance of his duties on behalf of Employer, as
specifically set forth in Exhibit B to this Agreement. Notwithstanding anything
to the contrary contained in this paragraph 10, during the period of two (2)
years immediately following the termination of Employee's employment, Employee
may be retained as a consultant for Christian music companies, other than
companies whose business is primarily based on "praise and worship" music
products, so long as employee's consulting activities are confined to rendering
assistance with non-"praise and worship" special products and non-"praise and
worship" special markets. As used in the preceding sentence, the term "praise
and worship" has the meaning assigned to such term by SoundScan in its
definition of the products eligible for listing on its praise and worship sales
chart on the date of this agreement and "special products" and "special markets"
refer to the area of the music business which involves recompiling previously
recorded music tracks into "repurposed" albums for sale in various markets.
Nothing contained in this Paragraph is intended to prevent Employee from
investing in stock or other securities listed on a national securities exchange
or actively traded on the over the counter market of any Competitor; provided,
however, that Employee shall not hold more than a total of five percent (5%) of
all issued and outstanding stock or other securities of any such corporation.
The Employee acknowledges in light of the Severance Payments provided in Section
5(a), that the restrictions contained herein are reasonable and will not cause
the Employee an undue hardship.

11.      Relief.

         Employee acknowledges that the covenants and promises contained in this
Agreement are reasonable and necessary means of protecting and preserving
Employer's

                                      -7-
<PAGE>

goodwill and its interest in the confidentiality and proprietary value of its
Trade Secrets and Confidential Information. Employee further acknowledges that
the same are reasonable and necessary means of protecting Employer from unfair
competition by Employee. Employee agrees that any breach of the covenants or
promises contained in paragraphs 7, 8, 9 or 10 will leave Employer with no
adequate remedy at law and may cause Employer to suffer irreparable damage and
injury. Employee further agrees that any breach of these covenants or promises
will entitle Employer to injunctive relief in any court of competent
jurisdiction without the necessity of posting any bond. Employee also agrees
that any such injunctive relief shall be in addition to any damages that may be
recoverable by Employer as a result of such breach. Employer agrees that
Employee will be entitled to seek a declaratory judgment as to the
enforceability of any of the covenants or promises contained in paragraphs 7, 8,
9 or 10.

         Employee further agrees that no failure or delay by Employer in
exercising, enforcing or asserting any right, power or privilege hereunder shall
operate as a waiver thereof, nor shall any single or partial exercise thereof
preclude any other or further exercise of any such right, power or privilege.

12.      Severability.

         Except as expressly provided by the terms of this Agreement, the
covenants and other provisions set forth in this Agreement shall be considered
and construed as separate and independent covenants and provisions. Should any
covenant or provision, or any part thereof, be held invalid, void or
unenforceable in any court of competent jurisdiction, such invalidity, voidness
or unenforceability shall not render invalid, void or unenforceable any other
part, covenant or provision of this Agreement. If any portion of the foregoing
covenants or provisions is found to be invalid or unenforceable by a court of
competent jurisdiction because its duration, territory, definition of activities
or definition of information covered is invalid or unreasonable in scope, the
invalid or unreasonable term shall be eliminated, redefined, or replaced with a
new enforceable term such that the intent of Employer and Employee in agreeing
to the covenants and provisions of this Agreement will not be impaired and the
covenant or provision in question shall be enforceable to the fullest extent of
the applicable laws.

13.      Disputes and Governing Law.

         Employer and Employee agree that, except as provided in paragraph 11
hereof, any dispute arising in connection with, or relating to, this Agreement
or the termination of this Agreement, to the maximum extent allowable by
applicable law, shall be subject to resolution through informal methods and,
failing such efforts, through arbitration. Either party may notify the other
party of the existence of a dispute by written notice. The parties shall
thereafter attempt in good faith to resolve their differences within the thirty
(30) days after the receipt of such notice. If the dispute cannot be resolved
within the thirty (30) day period, either party may file a written demand for
arbitration with the other party. The arbitration shall proceed in accordance
with the terms of the Federal Arbitration Act and the rules and procedures of
the American Arbitration Association. The parties will attempt to choose an
arbitrator acceptable to the Employer and Employee,

                                      -8-
<PAGE>

but if agreement on an arbitrator cannot be reached within ten (10) days after
either party files a written demand for arbitration, a single arbitrator shall
be appointed through the American Arbitration Association's procedures to
resolve the dispute.

         Employer and Employee agree that in the event that arbitration is
necessary, the arbitrator shall apply the substantive laws of the state of
Alabama and any applicable federal law. The place for the arbitration shall be
Mobile, Alabama.

         The award of the arbitrator shall be binding and conclusive upon the
parties. Either party shall have the right to have the award made the judgment
of a court of competent jurisdiction in the state of Alabama.

14.      Assignment.

         This Agreement may not be assigned by Employee to any other person or
entity but may be assigned by Employer at its discretion to any successor to
all, or any part, of the stock or assets of Employer or to any lender of
Employer.

15.      Titles.

         The titles, headings and captions used in this Agreement are for
convenience of reference only and shall in no way limit, define, expand, or
otherwise affect the meaning or construction of any provision of this Agreement.

16.      Entire Agreement.

         This Agreement is intended by the Parties hereto to be the final
expression of their agreement with respect to the subject matter hereof and
represents the complete and exclusive statement of the terms of their agreement,
notwithstanding any representations, statements or agreements to the contrary
heretofore made. Except as expressly noted herein, this Agreement supersedes any
former agreements between the Parties governing the same subject matter. This
Agreement may be modified only by a written instrument signed by each of the
Parties hereto.

                        [Signatures begin on next page.]

                                      -9-
<PAGE>

         IN WITNESS WHEREOF, the undersigned set their hands and seals as of the
29th day of October, 2001.

INTEGRITY INCORPORATED                           DANNY McGUFFEY

/s/ P. Michael Coleman                           /s/ Danny McDuffey       [SEAL]
------------------------------                   -------------------------
Name: P. Michael Coleman                         DANNY McGUFFEY
Title: President

ATTEST:

/s/ Donald S. Ellington
------------------------------
Secretary

[CORPORATE SEAL]

                                      -10-
<PAGE>

                                    EXHIBIT A
                           Change in Control Agreement

<PAGE>

                                    EXHIBIT B

                  "Restricted Territory" shall mean

                           1.       UNITED STATES AND U.S. TERRITORIES<PAGE>

                    KEY EMPLOYEE CHANGE IN CONTROL AGREEMENT

         THIS AGREEMENT is made and entered into as of the 29th day of October,
2001, by and between INTEGRITY INCORPORATED (the "Company") and Danny McGuffey
(the "Employee").

                                   WITNESSETH:

         WHEREAS, Employee is entering the employ of Company in the position of
Senior Vice President and Chief Marketing Officer; and

         WHEREAS, Company wants to induce Employee to remain in said position
and to retain his objectivity during circumstances relating to potential changes
in control by providing Employee a measure of security; and

         WHEREAS, Company wants to have the benefits of the Employee's full time
and attention directed to the affairs of Company without diversion due to
concerns about a possible change in control; and

         WHEREAS, the Company wants to position itself to attract and retain
able managers by adopting compensation practices competitive with peer companies
by providing similar severance benefits consistent with its policy of
competitive employment and compensation practices;

         NOW, THEREFORE, in consideration of ONE DOLLAR and other good and
valuable considerations from each to the other, receipt whereof being hereby
acknowledged, Company and Employee agree as follows:

         1.       Supplemental Employment Benefit. In the event that Employee is
employed by Company at the time of a Change in Control (as hereinafter defined
in Section 6) Employee shall be entitled to the supplemental employment benefits
hereinafter provided if Employee's employment with Company terminates within 18
months after the Change in Control has occurred,

                  (a)      involuntarily, other than an involuntary termination
                  for cause and other than occurring as the result of the death,
                  disability, or termination at or after attaining normal
                  retirement age,

                  (b)      voluntarily, following

                           (i)      any reduction of more than 10% in Employee's
                  combined base salary and annual bonus from that for the
                  calendar year immediately preceding the Change in Control,

                           (ii)     any relocation to an office of the Company
                  or an affiliate of the Company more than 100 surface miles
                  (i.e., surface miles using

<PAGE>

                  standard surface transportation such as public streets, roads
                  and highways by the shortest route available) from the office
                  where Employee was principally located at the time of the
                  Change in Control or any increase in Employee's required
                  travel of more than 100 surface miles (as defined above) due
                  to a reassignment of Employee to another office of the Company
                  or to an affiliate of the Company,

                           (iii)    any material reduction in the level of
                  responsibility, position (including status, office, title,
                  reporting relationships or working conditions), authority or
                  duties of Employee from that held by the Employee immediately
                  preceding the Change in Control, or

                           (iv)     any material reduction in the aggregate
                  fringe benefits and perquisites available to Employee
                  immediately preceding the Change in Control not offset by
                  salary or annual bonus increases, or

                  (c)      voluntarily if, following a Change in Control, any
                  successor or acquiror of Company either announces that it will
                  not honor or cause Company to honor the terms of this
                  Agreement or if, at any time, fails to confirm in writing to
                  Employee within fifteen (15) business days of a written
                  request by Employee that it will honor and will cause Company
                  to honor the terms of this Agreement.

                  As soon as practicable and in no event more than sixty (60)
days after a termination described in (a), (b) or (c) above, Company shall pay
to Employee the Severance Payment specified in Section 2 and shall provide the
Benefits specified in Section 3 on an uninterrupted basis. For purposes hereof a
termination shall be considered to be "for cause" if it occurs in conjunction
with a determination by Company that Employee has committed or engaged in either
(i) any intentional act that constitutes, on the part of Employee, (A) fraud,
dishonesty, a felony or gross malfeasance of duty, and (B) that directly results
in material injury to the Company; or (ii) conduct by Employee in his office
with the Company that is grossly inappropriate and demonstrably likely to lead
to material injury to the Company, as determined by the Board of Directors of
the Company (the "Board") acting reasonably and in good faith; provided,
however, that in the case of (ii) above, such conduct shall not constitute
"cause" unless the Board shall have delivered to the Employee notice setting
forth with specificity (A) the conduct deemed to qualify as "cause", (B)
reasonable action that would remedy such objection, and (C) a reasonable time
(not less than thirty (30) days) within which the Employee may take such
remedial action, and the Employee shall not have taken such specified remedial
action within such specified reasonable time. For purposes hereof, (i) the
Employee shall be considered "disabled" if Employee is eligible for benefits
under the Company's long term disability plan (or would be eligible if not for
an applicable exclusion period, waiting period, preexisting condition, reduction
in benefits due to other sources of funds such as social security or worker's
compensation, and any other similar limitation) and (ii) "normal retirement age"
shall mean age 65. In the event Company takes the position that a termination
has occurred "for cause" it shall so notify Employee in writing at the

                                      -2-
<PAGE>

time of such termination. If for any reason, or no reason, Company takes the
position that some or all of the benefits provided hereunder are not due and
owing to Employee or that it will not pay Employee any or all of the benefits
provided hereunder, either Employee or Company may submit the resolution of such
dispute to arbitration as provided in Section 5. Notwithstanding any dispute
regarding this Agreement, however, Company shall pay to Employee the Severance
Payment and continue to make the Benefits available during the period specified
herein, unless and until it is determined by arbitration proceedings pursuant to
Section 5 that Employee is not entitled to all or a portion of the amount paid
and/or to continuation of the Benefits, at which time Employee shall reimburse
Company all amounts to which Employee is determined not to be entitled, plus an
amount equal to the legal rate of interest specified under the laws of the State
of Alabama for situations where there is an obligation to pay interest and no
express contract to pay interest at a specified rate.

         2.       Amount of Severance Payment. Subject to the limitation of
Section 4, the Severance Payment shall be an amount equal to the amount of the
Employee's annual base salary under his Employment Agreement multiplied by 2.
For purposes of this section, Employee's annual base salary shall be the greater
of (i) his salary immediately prior to the Change in Control, or (ii) his salary
at the time of his termination.

         3.       Life, Medical and Other Benefits.

         For a period of eighteen (18) months following a termination of
employment under circumstances entitling Employee to payment of the Severance
Payment, Company shall make available to Employee (and his spouse and other
qualified dependents) basic life insurance, long-term disability insurance and
benefits, health insurance and other medical benefits ("Benefits") available to
Employee immediately preceding the Change in Control and such Benefits shall be
made available under the same terms and conditions (e.g., employee contributions
for certain benefits that are in effect for active employees who are similarly
situated) as continue to be available for comparable employees of Company during
the period provided in this Section 3 with such changes as may be applicable to
such other employees. Notwithstanding the foregoing, Company shall not be
entitled to reduce the coverage available to the Employee, his spouse and other
qualified dependents or modify any of the terms and conditions thereof without
the written consent of Employee provided, however, that Company may provide a
substantially equivalent form of Benefit for any particular Benefit.
Notwithstanding the foregoing, Employee's rights to the foregoing benefits shall
terminate as to any benefit for which he becomes eligible that provides
substantially similar benefits on substantially similar terms through a program
of a subsequent employer or otherwise (such as through coverage obtained by
Employee's spouse).

         4.       Limitation.

                  (a)      It is intended that all amounts payable hereunder,
         together with all other amounts payable to Employee upon or in
         connection with a Change in Control, are reasonable compensation for
         Employee's service to Company and its

                                      -3-
<PAGE>

         subsidiaries. Notwithstanding the foregoing, if the independent
         accounting firm that was approved by the shareholders in the annual
         shareholders' meeting immediately prior to the Change in Control
         ("Accounting Firm"), opines that payment of any or all of the Severance
         Payment and the Benefits together with any other amounts received by
         Employee that must be included in such determination, would result in
         the denial of any deduction or the imposition of an excise tax under
         Sections 280G and 4999 of the Code, then Company will reduce the amount
         otherwise due and owing to Employee under this Agreement by the
         smallest amount necessary to avoid the imposition of any excise tax or
         the denial of any deduction. Such opinion shall be based upon the
         proposed regulations under Code Sections 280G and 4999 or substantial
         authority within the meaning of Code Section 6662, and shall set forth
         with particularity the smallest amount by which the payment due
         Employee hereunder would have to be reduced to avoid the imposition of
         any excise tax or the denial of any deduction pursuant to Code Sections
         280G and 4999 and shall demonstrate the relation of such amount to the
         amounts set forth above.

                  (b)      Company may reduce the Severance Payment and Benefits
         pursuant to this Section 4 only if within sixty (60) days following the
         Employee's termination it provides Employee with the opinion of the
         Accounting Firm described in paragraph (a) above. Employee shall, if he
         agrees with the determination of Accounting Firm, notify Company in
         writing of the payments and/or Benefits that he wishes to have reduced
         in order to comply with the provisions of this Section 4. In the event
         that Employee fails to designate an order of priority for the
         application of any such reduction, such reduction shall be made in the
         order of priority determined by Company. In the event that Employee
         does not agree with the opinion or calculation presented and he is
         unable to resolve any dispute with Company regarding such disagreement
         within a period of thirty (30) days of receipt of the opinion
         referenced above, Employee may submit the resolution of this matter to
         arbitration pursuant to Section 5 or take such other steps as he may
         deem advisable to enforce his position.

         5.       Arbitration. The parties agree that all disputes that may
arise between them relating to the interpretation or performance of this
Agreement, including matters relating to any funding arrangements for the
benefits provided under this Agreement, to the maximum extent allowed by
applicable law, shall be determined by binding arbitration through an arbitrator
chosen as provided in this Section 5. Either party may notify the other party of
the existence of a dispute by written notice in accordance with Section 12
herein. The arbitration shall proceed in accordance with the provisions of the
Federal Arbitration Act and the rules and procedures of the American Arbitration
Association. If the parties can agree to an arbitrator, the dispute may be
resolved by a single arbitrator. Otherwise, each party shall designate an
arbitrator and a third arbitrator shall be appointed by the two arbitrators
selected by the parties. If either party shall fail to appoint an arbitrator
within thirty (30) days after it is notified to do so, then the arbitration
shall be conducted by a single arbitrator. All arbitrators shall be selected
from a panel proposed by the American Arbitration Association. The parties agree
that the

                                      -4-
<PAGE>

arbitrators shall apply the laws of the State of Alabama and any applicable
federal law. Unless otherwise agreed by the parties, all arbitration proceedings
shall be held in Mobile, Alabama. The award of the arbitrators shall be issued
within sixty (60) days of the close of the hearing or the submission of
post-hearing memoranda, whichever is later, and shall include each arbitrator's
individual vote. The award of the arbitrators shall be binding and conclusive
upon the parties. Either party shall have the right to have the award made the
judgment of a court of competent jurisdiction in the State of Alabama. At least
thirty (30) days prior to the arbitration, the Company shall provide Employee
with an offer to resolve the dispute and to pay Employee whatever benefits to
which the Company believes he is entitled. If the arbitrators' award is greater
than the amount of the Company's offer, Employee shall be entitled to payment by
the Company of all of his attorneys' fees, expenses and costs incurred in
connection with the arbitration, including the Employee's portion of the
arbitrators' fees. If the arbitrators' award is equal to or less than the
Company's offer, the parties shall be responsible for their own attorneys' fees,
expenses and costs and shall share the expenses of the arbitrators.

         6.       Change in Control. "Change in Control" means and includes each
of the following:

                  (a)      A change of control of the Company of a nature that
         would be required to be reported in response to Item 6(e) of Schedule
         14A of the 1934 Act regardless of whether the Company is subject to
         such reporting requirement;

                  (b)      A change of control of the Company through a
         transaction or series of transactions, such that any person (as that
         term is used in Section 13 and 14(d)(2) of the 1934 Act), excluding
         affiliates of the Company as of the date of this Agreement, is or
         becomes the beneficial owner (as that term is used in Section 13(d) of
         the 1934 Act) directly or indirectly, of securities of the Company
         representing 50% or more of the combined voting power of the Company's
         then outstanding securities;

                  (c)      Any consolidation, merger or share exchange involving
         the Company in which the Company is not the continuing or surviving
         corporation or pursuant to which shares of Company stock would be
         converted into cash, securities or other property, other than a merger
         of the Company in which the holders of the shares of Company stock
         immediately before the merger have the same proportionate ownership of
         common stock of the surviving corporation immediately after the merger;

                  (d)      The stockholders of the Company approve any plan or
         proposal for the liquidation or dissolution of the Company; or

                  (e)      Substantially all of the assets of the Company are
         sold or otherwise transferred to parties that are not within a
         "controlled group of corporations" (as defined in Section 1563 of the
         Code) in which the Company is a member.

                                      -5-
<PAGE>

         7.       Other Employee Benefits. The benefits hereunder shall not be
affected by or reduced because of any other benefits to which Employee may be
entitled by reason of his continuing employment with Company or the termination
of his employment with Company, and no other such benefit by reason of such
employment shall be so affected or reduced because of the benefits bestowed by
this Agreement except as hereinafter specifically provided. Employee shall not
be entitled to duplicative health, medical, life, disability and other insurance
benefits or to severance payments specifically made only with respect to
termination of employment under any employment, retention or severance pay
agreement, plan or other arrangement. In addition, the payment of benefits to
Employee under Section 2 shall not entitle Employee to payments under the other
plans or arrangements providing similar benefits except to the extent such other
plans or arrangements provide additional benefits to those provided herein.

         8.       Withholding; Set-off. All amounts payable by Company hereunder
shall be subject to withholding of such amounts related to taxes as Company may
be legally obligated to withhold. The right of Employee to receive benefits
under this Agreement, however, shall be absolute and shall not be subject to any
set-off, counterclaim, recoupment, defense, duty to mitigate or other rights
Company may have against him or anyone else.

         9.       Subsequent Employment. Employee's right to receive benefits
under this Agreement shall not be reduced by reason of Employee's employment
with any other employer after terminating employment with the Company (except as
set forth in Section 3). Any compensation for services rendered or consulting
fees earned after the date of termination shall not diminish Employee's right to
receive all amounts due hereunder.

         10.      Employee's Indemnity. Employee shall be entitled to the
benefits of the indemnity provided by Company's articles of incorporation,
bylaws or otherwise immediately prior to the Change in Control, and any
subsequent changes to the articles of incorporation, bylaws, or otherwise
reducing the indemnity granted to officers shall not affect the rights granted
hereunder. Company may not reduce these indemnity benefits confirmed to Employee
hereunder without the written consent of Employee.

         11.      Term. Without the consent of the Employee, the terms of this
Agreement may be terminated or amended by Company following the first
anniversary of the date hereof at any time prior to the first to occur of (i) a
Change in Control, (ii) the public announcement of a proposal for a transaction
that, if consummated, would constitute a Change in Control, or (iii) the Board
of Directors learns of a proposal for a transaction that, if consummated, would
constitute a Change in Control; provided, that termination or amendment of this
Agreement by the Company shall not terminate or amend the Employee's Employment
Agreement except to the extent that this Agreement is incorporated into the
Employment Agreement (i.e., all other terms of the Employment Agreement shall be
unaffected by such unilateral action of the Company). Upon the occurrence of any
of the foregoing events, this Agreement shall continue as in effect at such time
without termination or further change by Company until the earlier of (x) 18
months following any Change in Control, or (y) the final withdrawal or
termination of a

                                      -6-
<PAGE>

proposal under item (ii) or (iii) that, had it been consummated, would have
constituted a Change in Control, at which time this Agreement may, once again,
be amended or terminated by Company until one of the events in (i), (ii) or
(iii) occurs. Notwithstanding the foregoing, in the event of a Change in
Control, upon Employee's termination of employment entitling him to benefits
under Sections 1 and 2, this Agreement may not be amended or terminated by
Company until all of the obligations and liabilities are satisfied. For purposes
of Sections 1, 2 and 3, Employee's base salary and benefits, and for purposes of
Section 10, Employee's indemnity immediately prior to an event causing this
Agreement to be non-amendable by Company alone shall be considered to be
Employee's base salary, benefits or indemnity immediately prior to the Change in
Control if such salary, benefits or indemnity prior to the event is greater. In
addition, action that would be described in Section 1(b)(ii) or (iii) if
occurring following a Change in Control shall be considered to have so occurred
if occurring following an event causing this Agreement to become non-amendable
if there ultimately is a Change in Control.

         12.      Notices. Notices, which must be in writing, will be considered
effective upon receipt and shall be sent to Company at its headquarters office,
attention Chief Executive Officer, or to Employee at the address set forth
below. Either party may notify the other of any change in the address for
notice. If the Employee is the Chief Executive Officer, notice to the Company
shall be sent to any outside director of the Company's Board of Directors.

         13.      Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Alabama applicable to
agreements made and entirely to be performed therein.

         14.      Successors and Assigns. This Agreement shall be binding upon
and inure to the benefit of the successors (including any successor to Company
by reason of any Change in Control), heirs, personal representatives and assigns
of the parties hereto.

         15.      Employment With Related Parties. Employment with any present
or future parent, subsidiary or affiliate of Company or any successor to
substantially all of the business of Company shall be considered employment with
Company for all purposes of this Agreement.

         16.      Not Contract for Employment. Nothing in this Agreement shall
be deemed to give Employee the right to be retained in the service of Company or
to deny Company any right it may have to discharge, or demote Employee at any
time.

         17.      Severability. The invalidity and unenforceability of any
particular provision of this Agreement shall not affect any other provision of
the Agreement and the Agreement shall be construed in all respects as if the
invalid or unenforceable provision were omitted.

         18.      No Assignment or Alienation of Benefits by Employees. The
Employee

                                      -7-
<PAGE>

shall not have any power or right to transfer, assign, anticipate, hypothecate,
mortgage, commute, modify or otherwise encumber in advance any of the benefits
payable under this Agreement, nor shall these benefits be subject to seizure for
the payment of debt, judgment, alimony or separate maintenance owed by the
Employee, or any person claiming through the Employee, or be transferable by
operation of law in the event of bankruptcy, insolvency or otherwise. Any
attempted assignment, anticipation, hypothecation, transfer, or other disposal
of the benefits hereunder, shall be void.

         19.      Miscellaneous. No provisions of this Agreement may be waived
or discharged unless such waiver or discharge is agreed to in writing signed by
Employee and Company. No waiver by either party hereto at any time of any breach
by the other party hereto of, or compliance with any condition or provision of
this Agreement to be performed by the other party shall be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior or
subsequent time. No agreements or representations, oral or otherwise, expressed
or implied, with respect to the subject matter hereof have been made by either
party which are not set forth expressly in this Agreement.

         20.      Headings. The headings herein are for convenience only and
shall have no significance in the interpretation of this Agreement.

                        [Signatures begin on next page.]

                                      -8-
<PAGE>

         IN WITNESS WHEREOF, the parties hereto have duly executed this
Agreement under their respective seals as of the date written above.

                                           INTEGRITY INCORPORATED

                                           By:      /s/ P. Michael Coleman
                                              --------------------------------
                                           Name:    Michael Coleman
                                                ------------------------------
                                           Title:   President
                                                 -----------------------------

ATTEST:

/s/ Donald S. Ellington
Secretary

[CORPORATE SEAL]

                                           DANNY MCGUFFEY

                                           /s/ Danny McGuffey        [SEAL]
                                           --------------------------
                                           Danny McGuffey

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