Document:

<PAGE>

                                                                  March 17, 1999

Mr. Marshall J. Katz
3625 Indian Wells Road
Northbrook, Illinois  60062

         RE:      FINDER'S COMPENSATION PLAN

Dear Marshall:

         The purpose of this letter is to confirm your engagement by HA-LO
Industries, Inc., an Illinois corporation (together, with its subsidiaries,
"HA-LO") for the purpose of your identification of businesses for potential
acquisition by HA-LO, your participation in all phases of review and evaluation
of such businesses, and your assistance to HA-LO in negotiations for the
purchase of the stock or assets of such businesses.

         1. SERVICES TO BE RENDERED. You agree that you will perform on a best
efforts basis, solely for the account and benefit of HA-LO, the following
services (the "Services"):

                  (a) Soliciting the interest of, and identifying in writing to
         the executive officers of HA-LO, businesses and sales representatives
         for potential transactions in which HA-LO would acquire the stock or
         assets of such businesses ("Prospects"); provided that such Prospects
         shall be engaged in the operations which are similar to the operations
         currently conducted by HA-LO or contemplated to be conducted by HA-LO
         pursuant to its long-term business plans;

                  (b) Making formal and informal introductions to the executive
         officers of HA-LO, and HA-LO's outside agents and representatives, of
         the owners and key employees of the Prospects;

                  (c) Reviewing and evaluating the relevant business(es) of the
         Prospects, including their operations and financial position, for
         compliance with HA-LO's internal requirements as disclosed to you from
         time to time, it being understood by HA-LO that you may rely upon
         information supplied by the Prospects without independent verification;

<PAGE>

Mr. Marshall J. Katz
March 17, 1999
Page 2

                  (d)      Assisting HA-LO in its purchase negotiations with
         the Prospects; and

                  (e) Performing such other and ancillary services with respect
         to the Prospects, and HA-LO's acquisition thereof, as are reasonably
         requested by HA-LO and not inconsistent with the provisions of this
         Section 1.

         For purposes of this Agreement, the term "acquisition" shall mean, in
one or a series of transactions, directly or indirectly, the acquisition by
HA-LO of a majority interest in the voting securities of a Prospect, a merger,
consolidation or similar business combination in which HA-LO acquires a
Prospect, the transfer of assets of a Prospect to HA-LO, the election of, or the
ability by HA-LO to elect nominees to a majority of the Board of Directors of a
Prospect, or any similar purchase, investment or arrangement, however
structured, by which HA-LO acquires an ownership interest in a Prospect or in
such Prospects' operating assets and all or substantially all of the sales
representatives of the Prospects become HA-LO sales representatives.

         Given the limited scope of the Services, the contingent nature of your
compensation for the Services and in recognition of your outside business
endeavors, HA-LO acknowledges and agrees that you shall not be required to
devote your full-time to the performance of the Services provided that any
contacts which you establish with Prospects shall be for the exclusive benefit
of HA-LO; and provided, further, that your outside business endeavors shall not
materially interfere with your performance of the Services.

         2. COMPENSATION - SUCCESS FEE FOR ACQUISITIONS. As compensation for the
Services with respect to acquisitions, HA-LO agrees to pay you a fee (the
"Success Fee") following completion of each acquisition of a Prospect (whether
or not you have identified such Prospect or HA-LO has requested your services in
connection with such acquisition) during the term of this Agreement. The Success
Fee shall be equal to the sum of the following:

                  (a) With respect to any Prospect the majority of whose
         Pre-Closing Gross Profits (as herein defined) is derived from the sale
         of goods, rather than the sale of services - ("Goods Company"), an
         amount equal to four percent (4%) (the "Applicable Percentage") of the
         "gross profits" (as hereinafter defined) of each Prospect during the
         full twelve (12) calendar month period immediately preceding the
         completion of the acquisition of such Prospect by HA-LO (the

<PAGE>

Mr. Marshall J. Katz
March 17, 1999
Page 3

         "Pre-Closing Gross Profits") up to a maximum fee of Two
         Hundred Thousand Dollars ($200,000) per transaction ("Fee
         Cap");

             (aa) With respect to any Prospect the majority of whose Pre-Closing
         Gross Profits is derived from the sale of services rather than the sale
         of goods ("Services Company") - (i) an amount equal to two and one-half
         percent (2 1/2%) of the "Gross Revenue" (as herein defined) of each
         Prospect during the full twelve (12) calendar month period immediately
         preceding the completion of the acquisition of such Prospect by HA-LO
         (the "Pre-Closing Gross Revenues") up to a maximum fee of Two Hundred
         Thousand Dollars ($200,000) per transaction ("Fee Cap");

            (aaa) Notwithstanding the provisions of Sections 2(a) and (aa)
         hereof, to the extent a Prospect derives Pre-Closing Gross Profits from
         both the sale of services and the sale of goods, and a general division
         between goods and services of Pre-Closing Gross Profits is determinable
         by the parties, the parties shall cooperate in determining a Success
         Fee which (i) reflects the contribution to the Pre-Closing Gross
         Profits of the Prospect's goods and services sectors, and (ii) in the
         aggregate is subject to the Fee Cap.

                  (b) Ten (10) years options (the "Options") to acquire shares
         of the common capital stock of HA-LO in an amount equal to three
         hundred seventy-five (375) shares for every Ten Thousand Dollars
         ($10,000) of Success Fee earned hereunder. The exercise price of the
         Options shall be equal to the closing price for HA-LO shares as quoted
         by the New York Stock Exchange (or similar securities exchange on which
         HA-LO shares shall be trading) as of the close of business on the day
         before the date of the execution of a definitive purchase agreement
         with respect to the acquisition of such Prospect by HA-LO (or if a
         Saturday or a Sunday, on the first business day preceding such date of
         execution (the "Grant Date")). All Options issued with respect to a
         Prospect shall be deemed issued as of the Grant Date, vest fifty
         percent (50%) on issuance and fifty percent (50%) twelve (12) months
         following the Grant Date, and in all other respects shall be subject to
         the rules, regulations, terms, conditions and provisions of the HA-LO
         1997 Stock Plan (Amended and Restated) (as it may be amended or a
         successor plan thereof (the "Plan"). As a precondition to your
         receiving such Options, you shall be

<PAGE>

Mr. Marshall J. Katz
March 17, 1999
Page 4

         required to enter into and deliver to HA-LO an appropriate
         stock option agreement;

                  (c) To the extent that the Success Fee is limited due to the
         Fee Cap, additional options ("Excess Options") shall be granted at a
         rate of fifteen thousand (15,000) shares for every One Hundred Thousand
         Dollars ($100,000) of Success Fee otherwise payable but not paid due to
         the Fee Cap; and

                  (d) As examples of the above, (i) should an acquisition of a
         Goods Company be closed with Pre-Closing Gross Profits of $10,000,000,
         and the HA-LO stock price was $20 per share on the day prior to
         signing, the Success Fee would be $200,000, the options issued pursuant
         to paragraph (b) would be 7,500 at $20 per share and the Excess Options
         would be 30,000 at $20.00 per share, and (ii) should an acquisition of
         a Services Company be closed with Pre-Closing Revenues of $10,000,000,
         and the HA-LO stock price was $20 per share on the day prior to
         signing, the Success Fee would be $200,000, the options issued pursuant
         to paragraph (b) would be 7,500 at $20 per share and the Excess Options
         would be 7,500 at $20.00 per share.

         For purposes of calculating Success Fees under this Section 2, the term
"gross profits" shall mean the gross profits (revenues less returns and
allowances and less cost of goods sold) attributable to the operations or
businesses conducted or previously conducted, or the assets owned or previously
owned, by a Prospect, exclusive of those gross profits attributable to
operations or business(es) that are discontinued or are otherwise known to be
non-recurring following acquisition by HA-LO; gross profits are to be calculated
in accordance with the generally accepted accounting principles, methods,
policies, practices and procedures employed by HA-LO in the calculation of its
own gross profits, on a consistent basis throughout the periods; and the term
"gross revenues" shall mean the gross revenues attributable to the operations or
businesses conducted or previously conducted or the assets owned or previously
owned by a Prospect, exclusive of those gross revenues attributable to
operations or businesses that are discontinued or otherwise known to be
non-recurring following acquisition by HA-LO; gross revenues are to be
calculated in accordance with the generally accepted accounting principals,
methods, policies, practices and procedures employed by HA-LO in the calculation
of its own gross revenues, on a consistent basis throughout the periods.

<PAGE>

Mr. Marshall J. Katz
March 17, 1999
Page 5

         Notwithstanding any provision in this letter agreement to the contrary,
in the event that HA-LO utilizes the Services of an independent third party to
render services similar to any or all of the Services, the Success Fee (i.e.,
cash payable and options issuable) otherwise payable to you hereunder shall be
reduced by fifty percent (50%).

         Notwithstanding any provision in this letter agreement to the contrary,
(i) your retention by HA-LO with respect thereto, and (ii) the Success Fee
otherwise payable hereunder with respect to an acquisition in which more than
fifty percent (50%) of the voting securities of HA-LO are distributed to one or
more persons shall be determined by HA-LO and You from time to time.

         The Success Fee described above, shall be calculated and paid within
ten (10) days following the date of the completion of the acquisition of each
Prospect by HA-LO.

         You shall also be entitled to compensation from HA-LO with respect to
acquisitions of those Prospects with which you have devoted attention and that
are closed within six (6) months after the term of this agreement expires;
provided that HA-LO shall have provided a draft of an acquisition contract to
the Prospect within 30 days of the termination of this agreement. Generally, we
contemplate the term "devoted attention" to mean a meeting or telephone call
with the Prospect in which a meaningful discussion has occurred regarding
acquisition of such Prospect or its business coupled with the receipt by HA-LO
of financial statements of the Prospect. HA-LO will not unreasonably delay the
acquisition process to avoid paying a Success Fee. Your engagement hereunder
shall commence on the date of this Agreement and expire on the second (2nd)
anniversary of the date of this Agreement. The provisions of this paragraph
shall survive any termination of your engagement.

         If, in the course of the negotiation with a Prospect, no acquisition is
consummated, but as a result of such negotiation one or more qualified sales
representative of the Prospect (each a "qualified sales representative") enter
into a sales representative agreement with HA-LO within sixty (60) days of the
consummation of such negotiation with the Prospect, then HA-LO shall pay you the
following: an amount equal to four percent (4%) of the gross profits generated
by the qualified sales representatives (as determined by HA-LO) during the
twelve (12) month period prior to the execution of a written sales
representative agreement with HA-LO.

<PAGE>

Mr. Marshall J. Katz
March 17, 1999
Page 6

         3.       OTHER AGREEMENTS.

                  (a) In addition to any Success Fees payable to you hereunder,
         and regardless whether an acquisition of a Prospect is proposed or
         consummated, HA-LO hereby agrees, from time to time to promptly upon
         your written request, to reimburse you for all reasonable travel and
         lodging expenses, and meals with Prospects, authorized by HA-LO and
         incurred by you in connection with, or arising out of, the Services.

                  (b) This Agreement shall be governed by and construed in
         accordance with the laws of the State of Illinois without regard to the
         conflicts of laws provisions thereof.

                  (c) HA-LO recognizes and confirms that, with respect to
         Prospects, (i) you are not obligated to independently verify the
         accuracy or completeness of information provided to you by a Prospect,
         and (ii) you do not assume responsibility for the accuracy or
         completeness thereof. HA-LO further recognizes and agrees that all
         analyses, evaluations and advice provided by you in connection with
         Prospects (whether written or oral, formal or informal) are intended
         solely for the benefit and use of HA-LO in pursuing acquisitions, and
         that no such analyses, evaluations or advice shall be used for any
         other purpose or reproduced, disseminated, quoted or referred to at any
         time, in any manner or for any purpose. You recognize and agree that
         all such analyses, evaluations and advice, together with all
         information provided to you by Prospects, is confidential and that no
         such analyses, evaluations, advice or information shall be used for any
         other purpose or reproduced, disseminated, quoted or referred to at any
         time, in any manner or for any purpose. HA-LO hereby agrees to
         indemnify and hold you harmless from and against all losses, claims,
         damages, liabilities and expenses incurred by you (including fees and
         disbursements of counsel) which are related to or arise out of the
         Services, unless the same are finally judicially determined to have
         resulted from your bad faith or recklessness.

                  (d) You and HA-LO mutually agree to file all tax returns, and
         take reasonable, consistent positions therewith, with any taxing
         authorities, in a manner which is consistent with the characterization
         of any item by this Agreement. You agree that, with respect to the
         Services, you are an independent contractor and not an employee of
         HA-LO.

<PAGE>

Mr. Marshall J. Katz
March 17, 1999
Page 7

                  (e) This Agreement may be executed in two or more
         counterparts, all of which together shall be considered a single
         instrument. This Agreement constitutes the entire agreement between the
         parties hereto with respect to the subject matter hereof, supersedes
         all prior agreements and understandings, both written and oral, between
         the parties with respect to the subject matter hereof, including but
         not limited to the March 17, 1993, March 17, 1994 and March 17, 1997
         letter agreements between us, and cannot be amended or otherwise
         modified except in writing executed by the parties hereto. The
         provisions of this agreement shall inure to the benefit of and be
         binding upon the successors and assigns of the parties hereto;
         provided, however, that you may not assign your obligations or duties
         under this Agreement without HA- LO's prior written consent, which
         consent may be withheld in HA-LO's sole discretion.

                  (f) In the event of a "change of control" of HA-LO (as such
         term is defined on Exhibit A hereto), all options issuable to you
         hereunder or otherwise shall be immediately and one hundred percent
         (100%) vested.

                  (g) Notwithstanding the provisions of the Plan, upon the
         termination of your engagement with HA-LO pursuant to this Agreement
         (other than as a result of your breach of this Agreement), unexercised
         options held by you shall be exercisable for a period of one (1) year
         from and after the date of such termination.

         We are delighted to offer you this engagement and look forward
to working with you on this assignment.  Please confirm that the

<PAGE>

Mr. Marshall J. Katz
March 17, 1999
Page 8

foregoing is in accordance with your understanding by signing and returning to
us the enclosed duplicate copy of this letter.

                                       Sincerely,

                                       HA-LO INDUSTRIES, INC.

                                       By: ____________________________________
                                           Richard A. Magid
                                           Chief Operating Officer

ACCEPTED AND AGREED TO:

_________________________________
Marshall J. Katz<PAGE>

                              EMPLOYMENT AGREEMENT

         This Employment Agreement ("Agreement"), made and entered into
effective as of the 9th day of November, 1999 (the "Effective Date"), by and
between HA-LO INDUSTRIES, INC., an Illinois corporation with offices located at
5980 West Touhy Avenue, Niles, Illinois 60714 ("Employer"), and GREGORY J.
KILREA, residing at ___________, ____________ Illinois ("Employee").

         WHEREAS, Employee currently serves as the Chief Financial Officer, Vice
President and Assistant Secretary of Employer pursuant to that certain
Employment Agreement between the parties dated as of July 1, 1999 (the "Existing
Agreement"); and

         WHEREAS, in consideration of the continued employment of Employee with
Employer and other good and valuable consideration, the receipt and sufficiency
of which is hereby mutually acknowledged, Employee and Employer agree to execute
and be bound by this Agreement;

         NOW, THEREFORE, in consideration of the foregoing premises and the
agreements and covenants of the parties contained herein, the parties, intending
to be legally bound, hereby agree as follows:

         1. ALL PRIOR AGREEMENTS SUPERSEDED. This Agreement constitutes the
entire agreement between the parties concerning the employment of Employee by
Employer, and supersedes all prior and contemporaneous agreements between
Employer and Employee relating to the subject matter hereof, including, without
limitation the Existing Agreement.

         2. EMPLOYMENT. On the terms and subject to the conditions set forth
herein, Employer hereby employs Employee, and Employee hereby accepts employment
from Employer, as the Chief Financial Officer, Vice President and Assistant
Secretary of Employer. If, during the term of this Agreement, Employee is
removed from any titled office maintained with Employer (whether by action of
Employer's Board of Directors or otherwise) then, unless Employer simultaneously
terminates this Agreement, Employee and Employer shall continue to be bound by
the terms and conditions hereof, and such removal shall not constitute grounds
for a breach under, or termination (including constructive termination) of, this
Agreement.

         3. TERM. Subject to the provisions for termination hereinafter
provided, the initial term of this Agreement shall be for a term commencing as
of the Effective Date and ending December 31, 2002 (such period, including any
extensions thereof, being the "Term"); provided, however, that as of December
31, 2002 and each December 31 thereafter, the Term shall be automatically
extended for successive one (1) calendar year periods, unless either party
elects not to so extend the Term and gives written notice to the

<PAGE>

other party at least ninety (90) days prior to such scheduled termination date
of their election not to so extend.

         4. DUTIES OF EMPLOYEE. Employee shall perform, on a full-time and best
efforts basis, such duties commensurate with his position and experience as
shall be assigned to him from time to time by the Chief Executive Officer or
Board of Directors of Employer, and Employee shall report directly to the Chief
Executive Officer. As part of his duties hereunder, Employee agrees to serve as
an officer of Employer and as an officer and director of such subsidiaries and
affiliates of Employer to which Employee is elected.

         5.       COMPENSATION AND BENEFITS.

                  (a) BASE PAY. During the Term, Employer shall pay to Employee
         a salary at the annual rate of Three Hundred Thousand Dollars
         ($300,000), in equal installments on the last day of each month or at
         such other frequency as the parties hereto shall agree ("Base Pay").
         The Base Pay may also be increased from time to time by the
         Compensation Committee of the Board of Directors of Employer, in its
         sole discretion. The Employee shall be reviewed annually by the Chief
         Executive Officer of Employer, who shall thereafter make
         recommendations with respect to Base Pay to the Compensation Committee
         of the Board of Directors.

                  (b) BONUS COMPENSATION. Provided that Employee is still in the
         employ of Employer on May 9, 2000, Employee (i) shall be entitled to
         receive bonus compensation of up to twenty-five percent (25%) of his
         Base Pay annually upon the attainment of mutually established
         qualitative concepts, goals and objectives, as established by the Chief
         Executive Officer and Employee and (ii) shall have the opportunity to
         earn as additional bonus compensation during each calendar year of the
         Term (commencing with calendar year 2000) up to seventy-five percent
         (75%) of his Base Pay pursuant to the HA-LO Executive Bonus Plan
         (collectively, "Bonus Compensation").

                  (c) OPTIONS. Concurrently with the execution of this
         Agreement, Employer shall execute and deliver to Employee Option
         Agreements, in substantially the forms attached to this Agreement as
         Exhibits A and B, pursuant to which Employee shall be granted, as of
         the Effective Date, the following options to purchase shares of common
         stock of Employer:

                           (i)      50,000 options, vesting one-third (1/3) on
                                    each of the first, second and third
                                    anniversaries of the Effective Date, at an
                                    exercise price per share equal to the
                                    closing price of a share of common stock on
                                    the New York Stock Exchange on the Effective
                                    Date; and

                                       -2-

<PAGE>

                           (ii)     100,000 options, vesting one-third (1/3) on
                                    each of the first, second and third
                                    anniversaries of the Effective Date, at an
                                    exercise price per share of $7.00.

                  (d) FRINGE BENEFITS. Employer shall provide to Employee such
         other employee fringe benefits as are generally provided for the
         executive employees of Employer, including all fringe benefits made
         available to Employee by Employer on or prior to the Effective Date
         (inclusive, without limitation, of an automobile allowance and full
         medical coverage). Employee shall be entitled to annual vacation during
         such period(s) and in such time increments as are consistent with
         Employee's prior practices as an executive employee of Employer.

                  (e) INDEMNITY. Employer shall, during and after the Term,
         indemnify Employee in the manner provided in the By-Laws of Employer
         (as set forth as of the date hereof) to the fullest extent provided by
         law.

         6. EXPENSE REIMBURSEMENT. Employee shall be entitled to reimbursement
by Employer for all reasonable and customary travel and other business expenses
incurred by Employee in carrying out his duties under this Agreement, including
but not limited to, telephone, computer, fax machine and transportation
expenses.

         7. TERMINATION. This Agreement shall be terminated on the earliest to
occur of (i) the expiration of the Term; (ii) the mutual agreement of Employer
and Employee; (iii) the death of the Employee; (iv) the permanent disability of
the Employee, or (v) the dismissal of Employee for "cause" (as hereinafter
defined). This Agreement may also be terminated upon written notice given by
Employee to Employer within ninety (90) days after John Kelley ceases to be the
Chief Executive Officer of Employer. Upon any termination of the Term of this
Agreement, Employee shall promptly deliver to Employer (i) without retaining any
copies thereof, all the forms, brochures, business records, project materials,
sales materials, manuals, letterhead, business cards or any other written or
printed materials relating to the business of Employer, and (ii) any computers,
telephones, fax machines, automobiles or other personal property owned by
Employer and in the possession of Employee.

         Employee shall be deemed to be "permanently disabled" hereunder if it
is determined by a physician selected by Employer, with the reasonable approval
of Employee, which physician is on the staff of a hospital associated with a
medical school and located in Cook, Lake or DuPage County, Illinois, that
Employee is suffering from a mental, physical or emotional disability or
condition which is reasonably expected to last for two hundred seventy (270)
days or more, and which prevents Employee from performing substantially all of
his duties hereunder.

                                       -3-

<PAGE>

         Employer shall be deemed to have "cause" to dismiss Employee from
employment upon the occurrence of any of the following: (i) Employee's
conviction of a felony; (ii) Employee's engagement in illegal conduct tending to
place Employee or Employer in disrepute; or (iii) upon thirty (30) days prior
written notice to Employee by Employer, upon Employee's breach of, and failure
to cure, any other material provision of this Agreement.

         If, for any reason, other than termination for "cause", death,
permanent disability, the expiration of the Term or a voluntary termination by
Employee (inclusive, for these purposes, of a mutually agreed upon termination
or termination in the manner contemplated by the second sentence of the first
paragraph of this Section 7), Employee ceases to be employed by Employee, then
(i) Employee shall be entitled to continue to receive the remainder of his Base
Pay for the remainder of the Term, which amounts shall be payable (subject to
normal withholdings) in accordance with Employer's customary compensation
practices, (ii) Employee shall be entitled to continue to receive Bonus
Compensation for the remainder of the Term, calculated in the manner set forth
in the last paragraph of this Section 7 and payable (subject to normal
withholdings) in accordance with Employer's customary compensation practices,
and (iii) all options to purchase shares of common stock of Employer currently
or in the future held by Employee shall, concurrently with such cessation, be
fully vested (and not subject to forfeiture) and shall be exercisable until the
expiration of their respective terms notwithstanding Employee's earlier
termination as an employee of Employer or otherwise.

         If the Term of this Agreement is not extended for one additional year
beyond December 31, 2002 or any December 31 thereafter because of action taken
by Employer pursuant to Section 3 above, then (i) Employee shall be entitled to
continue to receive one (1) year's Base Pay, which amounts shall be payable
(subject to normal withholdings) in accordance with Employer's customary
compensation practices, (ii) Employee shall be entitled to continue to receive
one (1) year's Bonus Compensation, calculated in the manner set forth in the
last paragraph of this Section 7 and payable (subject to normal withholdings) in
accordance with Employer's customary compensation practices, and (iii) all
options to purchase shares of common stock of Employer currently or in the
future held by Employee shall, concurrently with cessation of employment, be
fully vested (and not subject to forfeiture) and shall be exercisable until the
expiration of their respective terms notwithstanding Employee's earlier
termination as an employee of Employer or otherwise.

         For purposes of the two (2) preceding paragraphs of this Section 7,
Bonus Compensation payable post-termination shall be determined based upon the
average of Bonus Compensation actually earned by Employee during the Term prior
to termination; provided, however, that if termination occurs prior to December
31, 2000,

                                       -4-

<PAGE>

Bonus Compensation payable post-termination shall be determined based upon the
percentage achievement (as reasonably determined by the Board of Directors of
Employer) of the qualitative concepts, goals and objectives referred to in
Section 5(b)(i) during calendar year 2000.

         8. EMPLOYEE'S COVENANTS NOT TO COMPETE OR SOLICIT. Employee covenants
that during the term of this Agreement and for a period of one (1) year
thereafter, he shall not, except as an employee of Employer, directly or
indirectly, on his own account, or as an employee, consultant, agent, partner,
joint venturer, owner or officer of any other person, firm, partnership,
corporation or entity, or in any other capacity, (i) conduct, engage in, or aid
or assist anyone in the conduct of a business which is competitive to that of
Employer (or any subsidiary thereof), or in which advertising specialty and
premium merchandise is sold to customers anywhere in the United States or (ii)
solicit or recruit any employees of Employer (or any subsidiary thereof) for
purposes of employment; provided, however, that the foregoing covenants shall be
of no force or effect in the event Employer (A) violates the terms of this
Agreement, (B) terminates Employee as an employee other than for cause or upon
the expiration of the Term, or (C) reduces the compensation paid to Employee.

         9. CONFIDENTIALITY. Employee acknowledges that by virtue of his
employment with Employer, he has been and/or will be exposed to or has had or
will have access to confidential information regarding Employer's business,
including but not limited to, trade secrets and proprietary information, all of
which are proprietary to Employer. Employee further acknowledges that it would
be possible for an employee, upon termination of his association with Employer,
to use the knowledge or information obtained while working for or with Employer
to benefit other individuals or entities. Employee acknowledges that Employer
has expended considerable time and resources in the development and/or purchase
of certain confidential information used in connection with Employer's business,
including, without limitation, Employer's computer programs and computer
software, accounting methodologies, pricing systems, cost of goods sold,
manufacturing and assembly processes, designs, product margins, customer lists
or records, customer information, customer mark-ups, information regarding
suppliers and vendors, use and utilization of patents, trademarks, trade names,
copyrights, confidential information and trade secrets of Employer or third
parties, marketing techniques, systems and networks of distribution, supplier
information, product content, product mix, inventions and, generally, the
confidential information of Employer which gives, or may give, Employer an
advantage in the marketplace against its competitors (all of the foregoing being
herein referred to collectively as "Proprietary Information"), and which have
been disclosed to or learned by Employee solely for the purpose of Employee's
employment with Employer. Employee acknowledges that Employer's Proprietary

                                       -5-

<PAGE>

Information constitutes a proprietary and exclusive interest of Employer, and,
therefore, Employee agrees that during the term of his employment and for a
period of sixty (60) months after the termination of Employee's employment with
Employer, for any reason whatsoever, Employee shall hold and keep secret the
Proprietary Information as described herein, as to which Employee is now or any
time during his employment shall become informed, and Employee shall not
directly or indirectly disclose any such information to any person, firm, court,
governmental agency or corporation or use the same except in connection with the
business and affairs of Employer.

         10. REMEDIES. Employee acknowledges that compliance with the
restrictive covenants set forth in Paragraphs 8 and 9 hereof is necessary to
protect the business, goodwill and Proprietary Information of Employer and that
a breach of these restrictions will irreparably and continually damage Employer
for which money damages may not be adequate. Consequently, Employee agrees that,
in the event that he breaches or threatens to breach any of these covenants,
Employer shall be entitled to both (1) a temporary, preliminary or permanent
injunction in order to prevent the continuation of such harm and (2) money
damages insofar as they can be determined. Nothing in this Agreement, however,
shall be construed to prohibit Employer from also pursuing any other remedy, the
parties having agreed that all remedies are to be cumulative. The parties
expressly agree that Employer may, in its sole discretion, choose to enforce the
restrictive covenants in Paragraphs 8 and 9 hereof, in part, or to enforce any
of said restrictive covenants to a lesser extent than that set forth herein. As
money damages for the period of time during which Employee violates these
covenants, Employer shall be entitled to recover, in addition to any other
amounts the amount of fees, compensation or other remuneration earned by
Employee as a result of any such breach.

         11. SEVERABILITY. Each of the terms and provisions of this Agreement is
to be deemed severable in whole or in part and, if any term or provision or the
application thereof in any circumstances should be invalid, illegal or
unenforceable, the remaining terms and provisions or the application thereof to
circumstances other than those as to which it is held invalid, illegal or
unenforceable shall not be affected thereby and shall remain in full force and
effect.

         12. BINDING AGREEMENT. This Agreement shall be binding upon the
parties, their heirs, successors, personal representatives and assigns. Employer
may assign this Agreement to any successor in interest to the business, or part
thereof, of Employer. Employee may not assign any of his obligations or duties
hereunder.

                                       -6-

<PAGE>

         13. CONTROLLING LAW AND JURISDICTION. This Agreement shall be governed
by and interpreted and construed according to the laws of the State of Illinois.
Employee hereby consents to the jurisdiction of the state and federal courts in
Illinois in the event that any disputes arise under this Agreement.

         14. ENTIRE AGREEMENT. This instrument contains the entire agreement of
the parties with regard to the subject matter hereof, and may not be changed
orally, but only by an agreement in writing signed by the parties hereto.

         15. FAILURE TO ENFORCE. The failure to enforce any of the provisions of
this Agreement shall not be construed as a waiver of such provisions. Further,
any express waiver by any party with respect to any breach of any provision
hereunder by any other party shall not constitute a waiver of such party's right
to thereafter fully enforce each and every provision of the Agreement.

         16. SURVIVAL. The obligations contained in this Agreement shall survive
the termination, for any reason whatsoever, for cause or otherwise, of
Employee's employment with the Employer.

         17. HEADINGS. All numbers and heading of paragraphs are for reference
only and are not intended to qualify, limit or otherwise affect the meaning or
interpretation of any paragraph.

         18. NOTICES. All notices which are required, permitted or contemplated
hereunder to be given or made shall be given or made in writing by certified
mail (return receipt requested) to Employer and Employee, respectively, at the
addresses shown in the Preamble, or to such other address as either party may
inform the other in writing.

         19. GENDER. The masculine, feminine or neuter pronouns used herein
shall be interpreted without regard to gender, and the use of the singular or
plural shall be deemed to include the other whenever the context so requires.

                                       -7-

<PAGE>

         WHEREFORE, the parties have executed this Agreement on the date and
year first above written.

EMPLOYER:                              EMPLOYEE:

HA-LO INDUSTRIES, INC.

By:________________________________    ___________________________________
   Its:____________________________    Gregory J. Kilrea

                                       -8-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00005-of-00352.parquet"}]]