Document:

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                                                                   Exhibit 10(j)

                                THE TORO COMPANY
          CHIEF EXECUTIVE OFFICER SUCCESSION INCENTIVE AWARD AGREEMENT

         AGREEMENT ("Agreement") dated as of July 31, 1995, as amended July 31,
1997, July 31,1998 and July 18, 2002, by and between The Toro Company, a
Delaware corporation (the "Company"), and Kendrick B. Melrose, its Chief
Executive Officer ("Mr. Melrose"), pursuant to which The Toro Company Chief
Executive Officer Succession Plan (the "Plan") is implemented.

1.       GRANT OF AWARD.

         a. GRANT OF RESTRICTED STOCK. The Company hereby grants to Mr. Melrose
the number of whole shares of Common Stock having an aggregate fair market value
of $500,000 on July 31, 1995 (the "Restricted Stock"), subject to forfeiture or
reduction of the number of shares in the event performance goals set forth in
Subsection 2.a.i(A) (the "Performance Goals") are not achieved and to the other
terms and conditions of the Plan; provided however that in the event the fair
market value of the Common Stock on the date of vesting of the Restricted Stock
is less than the fair market value on July 31, 1995, the Company shall make an
aggregate payment to Mr. Melrose of the difference between the fair market value
on the date of vesting of the Restricted Stock and the fair market value on July
31, 1995. Fair market value shall mean the closing price of the Common Stock on
the New York Stock Exchange as reported in The Wall Street Journal.

         b. GRANT OF PERFORMANCE UNITS AND ANNUITY PURCHASE. Subject to the
terms and conditions of the Plan and this Agreement, the Company hereby grants
to Mr. Melrose performance units equal to the number of whole shares of Common
Stock having an aggregate fair market value of $500,000 on July 31, 1995 (the
"Performance Units"), which Performance Units shall be subject to forfeiture or
reduction in the event the Performance Goals set forth in the Plan and in
Subsection 2.a.i(A) hereof are not achieved and to the other terms and
conditions of the Plan and this Agreement. Each Performance Unit shall have a
value equal to the fair market value of one share of Common Stock, from time to
time, provided however that the value shall not be less than the fair market
value of one share of Common Stock on July 31, 1995. Performance Units shall be
evidenced by this Agreement. An amount equal to the aggregate value of the
Performance Units remaining at the date of Mr. Melrose's retirement, after
forfeiture, if any, shall be utilized by the Company to purchase a retirement
annuity payable to Mr. Melrose until his 75th birthday, or to his estate or
beneficiaries, and for no other purpose, subject to the condition that Mr.
Melrose enter into and comply with the terms and conditions of a noncompetition
agreement, in accordance with Subsections 1.c. and 2.b. hereof.

         c. POST-RETIREMENT CONSULTING AND NONCOMPETITION AGREEMENT. Subject to
the terms and conditions of the Plan and this Agreement, the Company shall enter
into a post-retirement consulting and noncompetition agreement with Mr. Melrose,
providing for the payment of an aggregate amount of up to $500,000, which amount
shall be adjusted not less than once annually to reflect increases in the
consumer price index and which may be utilized to pay expenses of office and
support services for Mr. Melrose for a period of five years following the date
of his retirement.

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2.       TERMS, CONDITIONS AND RESTRICTIONS.

         a. RESTRICTED STOCK AND PERFORMANCE UNIT PERFORMANCE GOAL RESTRICTIONS.
The obligation of the Company to deliver certificates representing the
Restricted Stock granted hereunder and to utilize the aggregate value of the
Performance Units to purchase a retirement annuity shall be subject to the
terms, conditions and restrictions set forth in this Subsection 2.a.

                  i. VESTING OF RESTRICTED STOCK AND PERFORMANCE UNITS. Mr.
Melrose's right to receive the Restricted Stock and the value of the Performance
Units shall be subject to the vesting requirements set forth in this Subsection
2.a.i. and to the achievement by Mr. Melrose of the Performance Goals set forth
in Subsection 2.a.i.(A) hereof not later than the last day of the period
specified to achieve such performance (the "Restricted Period"). Upon
achievement of a Performance Goal within an applicable Restricted Period, the
restrictions shall lapse with respect to the specified portion of Restricted
Stock, which specified portion shall vest and become nonforfeitable. Upon
achievement of a Performance Goal within an applicable Restricted Period, the
restrictions shall lapse with respect to the specified portion of Performance
Units, which specified portion shall vest and become nonforfeitable, subject to
the further condition that Mr. Melrose enter into and comply with the terms and
conditions of a noncompetition agreement in accordance with Subsections 1.c and
2.b. If Mr. Melrose does not enter into a noncompetition agreement or does not
comply with the terms and conditions of such a noncompetition agreement, then
Mr. Melrose shall forfeit the value of the Performance Units or, if a retirement
annuity has been acquired by the Company, the retirement annuity.

                           (A)      The following table sets forth the
                                    Performance Goals, the schedule for
                                    achievement of each Performance Goal and the
                                    portion of Restricted Stock and Performance
                                    Units in which rights vest upon such
                                    achievement.

Performance Goal               Restricted Period    Portion of       Portion of
to be Achieved                 (July 31, 1995       Shares of Re-    Performance
                               through earlier of   stricted Stock   Units to
                               date shown or        to Vest Upon     Vest Upon
                               Goal Achievement)    Achievement      Achievement

Goal 1:
CEO and senior management
succession plan developed
and progress towards fulfill-
ment of the plan, approved
by Board of Directors           October 31, 1999         15%              15%

                                       2

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Goal 2:
Potential CEO successor
identified with approval
of Board of Directors
and continued development
of senior management team       October 31, 2000         15%              15%

Goal 3:
CEO successor who was
identified and developed
by Mr. Melrose is elected
as CEO by Board of
Directors                       October 31, 2005         70%              70%

                    (B)  Early Selection of Successor. Notwithstanding any other
                         provision of the Plan, in the event that the Board of
                         Directors elects as Mr. Melrose's successor the
                         individual identified and developed by Mr. Melrose, and
                         such successor is in place as chief executive officer
                         of the Company and Mr. Melrose elects to retire prior
                         to the last day of the final Restricted Period, but no
                         earlier than July 31, 1997, all Restricted Stock and
                         Performance Units shall vest in full and become
                         nonforfeitable, subject to the condition with respect
                         to the Performance Units that Mr. Melrose enter into
                         and comply with the terms and conditions of a
                         noncompetition agreement in accordance with Subsection
                         2.b.

                    (C)  The Special CEO Succession Subcommittee of the
                         Compensation Committee of the Board of Directors (the
                         "Committee") shall be responsible for certifying in
                         writing to the Company that an applicable Performance
                         Goal has been met by Mr. Melrose prior to release and
                         delivery of certificates representing the shares of
                         Restricted Stock or payment of the value of Performance
                         Units for the purchase of a retirement annuity to Mr.
                         Melrose.

                    (D)  The terms of this Agreement are not intended to, and do
                         not, impose on Mr. Melrose a mandatory retirement date
                         not otherwise applicable to employees of the Company
                         generally, and Mr. Melrose shall not be obligated to
                         retire as an officer of the Company in order to obtain
                         the benefits of this Agreement.

                  ii.  LIMITS ON TRANSFER OF RESTRICTED STOCK AND PERFORMANCE
UNITS. Shares of the Restricted Stock which have not vested in accordance with
the provisions of Subsection 2.a.i. hereof may not be sold, transferred,
pledged, assigned or otherwise encumbered. Performance Units may not be sold,
transferred, pledged, assigned or otherwise encumbered at any time and the value
of Performance Units may be utilized only for the purpose of purchasing the
retirement annuity referred to the Subsection 1.b. hereof.

                                       3

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                  iii. TERMINATION, DEATH OR DISABILITY. In the event that the
Board of Directors terminates Mr. Melrose's employment other than for cause (as
defined in Subsection 2.c. hereof) and elects as Mr. Melrose's successor a chief
executive officer who was identified and developed by Mr. Melrose, or in the
event of the termination of Mr. Melrose's employment due to his death or
disability, then all shares of Restricted Stock and Performance Units shall
automatically vest in full, notwithstanding that Mr. Melrose does not enter into
a noncompetition agreement in accordance with Subsections 1.c. and 2.b., and
shall become nonforfeitable in the fiscal year following the year of the date of
such event, and on the first day that such vesting would not cause the
compensation to be deemed compensation with respect to the prior fiscal year.

         b. POST-RETIREMENT CONSULTING AND NONCOMPETITION AGREEMENT. The
Company's agreement to pay any amount in connection with post-retirement
consulting services to be provided by Mr. Melrose and its payment of the value
of Performance Units for the purchase of a retirement annuity payable to Mr.
Melrose pursuant to Subsection 1.b. shall be subject to and in consideration of
Mr. Melrose's execution of an agreement not to compete with the Company by
serving as an employee or member of the board of directors of or consultant to
Rainbird, Jacobson or John Deere, or any successor thereof or similar competitor
of the Company for a period of five years following the date of Mr. Melrose's
retirement as Chief Executive Officer. The Company's agreement to pay any amount
in connection with post-retirement consulting services to be provided by Mr.
Melrose shall be subject to his agreement to provide consulting services to the
Company for a period of five years following the date of his retirement;
provided however that Mr. Melrose may elect to terminate the consulting
agreement, but not the agreement not to compete, in which event any balance of
the $500,000 amount referred to in Subsection 1.c. not then expended for Mr.
Melrose's benefit shall be paid to Mr. Melrose over the remainder of the five
year period. Mr. Melrose shall not have any right to receive payments pursuant
to Subsection 1.c. or this Subsection 2.b. until and unless he shall have
executed an agreement not to compete with the Company and delivered a fully
executed copy thereof to the Company, and otherwise complied with the then
applicable terms and conditions of the Plan, except as provided in Subsection
2.a.iii.

         c. TERMINATION OF EMPLOYMENT. Except as otherwise provided by
Subsection 2.a. hereof, if Mr. Melrose resigns his employment with the Company
or if his employment is terminated by the Board of Directors for cause during
any Restricted Period, all shares of Restricted Stock and all Performance Units
then subject to restrictions and all other rights under this Plan shall be
forfeited by Mr. Melrose and the Restricted Stock shall be reacquired by the
Company. For purposes of this Agreement, "Cause" shall mean: (i) the willful and
continued failure of Mr. Melrose to perform substantially his duties with the
Company or one of its affiliates (other than any such failure resulting from
incapacity due to physical or mental illness), after a written demand for
substantial performance is delivered to Mr. Melrose by the Board of Directors of
the Company which specifically identifies the manner in which the Board of
Directors believes that Mr. Melrose has not substantially performed his duties,
or (ii) the willful engaging by Mr. Melrose in illegal conduct or gross
misconduct which is materially and demonstrably injurious to the Company.

                                       4

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For purposes of this provision, no act or failure to act, on the part of Mr.
Melrose, shall be considered "willful" unless it is done, or omitted to be done,
by Mr. Melrose in bad faith or without reasonable belief that Mr. Melrose's
action or omission was in the best interests of the Company. Any act, or failure
to act, based upon authority given pursuant to a resolution duly adopted by the
Board of Directors or upon the instructions of a senior officer of the Company
or based upon the advice of counsel for the Company shall be conclusively
presumed to be done, or omitted to be done, by Mr. Melrose in good faith and in
the best interests of the Company. The cessation of employment of Mr. Melrose
shall not be deemed to be for Cause unless and until there shall have been
delivered to Mr. Melrose a copy of a resolution duly adopted by the affirmative
vote of not less than three quarters of the entire membership of the Board at a
meeting of the Board of Directors called and held for such purpose (after
reasonable notice is provided to Mr. Melrose and Mr. Melrose is given an
opportunity, together with counsel, to be heard before the Board of Directors),
finding that, in the good faith opinion of the Board of Directors, Mr. Melrose
is guilty of the conduct described in Subsection 2.c.(i) or (ii) above, and
specifying the particulars thereof in detail.

         d.       STOCK CERTIFICATES.

                  i. ISSUANCE. The Company shall issue a stock certificate or
certificates representing the shares of Restricted Stock granted hereunder. Such
certificates shall be registered in Mr. Melrose's name and shall bear an
appropriate legend referring to the terms, conditions and restrictions
applicable to the grant, substantially in the following form:

                  The transferability of this certificate and the shares of
                  stock represented hereby are subject to the terms and
                  conditions (including forfeiture) of the Chief Executive
                  Officer Succession Incentive Plan and an agreement entered
                  into between the registered owner and The Toro Company. Copies
                  of the plan and agreement are on file in the offices of The
                  Toro Company, 8111 Lyndale Avenue South, Bloomington,
                  Minnesota 55420.

                  ii. ESCROW. Certificates representing the Restricted Stock
shall be physically held by the Company or its nominee during any Restricted
Period, and the Company may require, as a condition of the grant, that Mr.
Melrose shall have delivered a stock power, endorsed in blank, with respect to
any shares of the Restricted Stock. Upon the achievement of the Performance
Goals with respect to any shares of Restricted Stock, as certified to by the
Committee, the Company shall cause the certificate representing such shares of
Restricted Stock to be removed from escrow and delivered to the Company for
reissuance and delivery of Common Stock in the name of Mr. Melrose. If any
shares of Restricted Stock are to be forfeited, certificates representing such
shares shall be delivered to the Company for reissuance in its name or
cancellation and Mr. Melrose shall have no further interest in such stock.

                                       5

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                  iii. LAPSE OF RESTRICTIONS. When the Performance Goals set
forth in Subsection 2.a.i.(A) have been achieved with respect to any portion of
the shares of the Restricted Stock, the Company shall deliver to Mr. Melrose or
his legal representative, beneficiary or heir not later than 60 days thereafter
a certificate or certificates representing the Common Stock without the legend
referred to in Subsection 2.d.i. hereof. The number of shares of Common Stock to
be released shall be the same number as to which the Performance Goals have been
achieved in accordance with Subsection 2.a.i.(A).

         e.       RIGHTS AS STOCKHOLDER.

                  i. RIGHT TO VOTE AND DIVIDENDS. Except as provided in Section
1 and this Section 2, Mr. Melrose shall have, with respect to the shares of
Restricted Stock, all of the rights of a stockholder of the Company, including
the right to vote the shares and the right to receive cash dividends with
respect to the shares.

                  ii. ADJUSTMENTS.  In the event of any merger, reorganization,
consolidation, recapitalization, stock dividend, stock split or other change in
corporate structure affecting the Common Stock, the Committee shall make such
substitution or adjustment in the aggregate number of shares of Common Stock
reserved for issuance hereunder or in the number of shares outstanding as
Restricted Stock or in the number of Performance Units, as may be determined to
be appropriate by the Committee, acting in its sole discretion, provided that
the number of shares or Performance Units shall always be a whole number.

         f.  CHANGE IN CONTROL.  In the event of a Change of Control of the
Company as hereinafter defined, whether or not approved by the Board of
Directors, all shares of Restricted Stock shall immediately fully vest and be
freely transferable.

Change of Control means:

                  i. The acquisition by any individual, entity or group (within
the meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act) (a "Person") of
beneficial ownership (within the meaning of Rule 13d-3 under the Exchange Act)
of 15% or more of either (A) the then-outstanding shares of Common Stock of the
Company (the "Outstanding Company Common Stock") or (B) the combined voting
power of the then-outstanding voting securities of the Company entitled to vote
generally in the election of directors (the "Outstanding Company Voting
Securities"); provided, however, that for purposes of this subsection i., the
following acquisitions shall not constitute a Change of Control: (A) any
acquisition directly from the Company, (B) any acquisition by the Company, (C)
any acquisition by any employee benefit plan (or related trust) sponsored or
maintained by the Company or any corporation controlled by the Company, or (D)
any acquisition by any corporation pursuant to a transaction that complies with
clauses (A), (B) and (C) of subsection iii. of this Subsection 2.f.; or

                  ii. Individuals who, as of the date hereof, constitute the
Board of Directors of the Company (the "Incumbent Board") cease for any reason
to constitute at least a majority of the Board; provided, however, that any
individual becoming a director subsequent to the date hereof whose election, or
nomination for election by the Company's stockholders, was approved by a vote of
at least a majority of the directors then comprising the Incumbent Board shall
be considered as though such individual were a member of the Incumbent Board,
but excluding, for this purpose, any such individual whose initial assumption of
office occurs as a result of an actual or threatened election contest with
respect to the election or removal of directors or other actual or threatened
solicitation of proxies or consents by or on behalf of a Person other than the
Board; or

                                       6

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                  iii. Consummation of a reorganization, merger or consolidation
of the Company or sale or other disposition of all or substantially all of the
assets of the Company or the acquisition by the Company of assets or stock of
another entity (a "Business Combination"), in each case, unless, following such
Business Combination, (A) all or substantially all of the individuals and
entities who were the beneficial owners, respectively, of the Outstanding
Company Common Stock and Outstanding Company Voting Securities immediately prior
to such Business Combination beneficially own, directly or indirectly, more than
50% of, respectively, the then-outstanding shares of common stock and the
combined voting power of the then-outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation
resulting from such Business Combination (including, without limitation, a
corporation which as a result of such transaction owns the Company or all or
substantially all of the Company's assets either directly or through one or more
subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination of the Outstanding Company Common
Stock and Outstanding Company Voting Securities, as the case may be, (B) no
Person (excluding any corporation resulting from such Business Combination or
any employee benefit plan (or related trust) of the Company or such corporation
resulting from such Business Combination) beneficially owns, directly or
indirectly, 15% or more of, respectively, the then-outstanding shares of common
stock of the corporation resulting from such Business Combination, or the
combined voting power of the then-outstanding voting securities of such
corporation except to the extent that such ownership existed prior to the
Business Combination and (C) at least a majority of the members of the board of
directors of the corporation resulting from such Business Combination were
members of the Incumbent Board at the time of the execution of the initial
agreement, or of the action of the Board, providing for such Business
Combination; or

                  iv.  Approval by the stockholders of the Company of a complete
liquidation or dissolution of the Company.

3. WITHHOLDING TAXES. The Company shall have the right to deduct from any
settlement made hereunder any federal, state or local taxes of any kind,
including FICA and related taxes, required by law to be withheld with respect to
the vesting of rights to receive or payment of remuneration or to take such
other action as may be necessary in the opinion of the Company to satisfy all
obligations for the payment of such taxes. If Common Stock is withheld or
surrendered to satisfy tax withholding, such stock shall be valued at its fair
market value as of the date such Common Stock is withheld or surrendered or the
obligation to pay such taxes becomes fixed.

                                       7

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4. REGISTRATION RIGHTS. Mr. Melrose shall have the right to require that the
Company promptly take all necessary steps to register or qualify the Restricted
Stock, or Common Stock issued upon vesting of the Restricted Stock, under the
Securities Act of 1933, as amended, and the securities laws of such states as
Mr. Melrose may reasonably request. The Company shall keep effective and
maintain any registration, qualification, notification or approval for such
period as is reasonably necessary for Mr. Melrose to dispose of the Restricted
Stock or Common Stock and from time to time shall amend or supplement the
prospectus used in connection therewith to the extent necessary in order to
comply with applicable law. The Company shall bear all fees, costs and expenses
of such registration, qualification, notification or approval.

5. COMPLIANCE WITH RULE 16B-3 AND SECTION 162(m). The grants of Restricted Stock
and Performance Units made under this Agreement and the remuneration to be paid
to Mr. Melrose as a consequence of the grants are intended to comply with all
applicable conditions of Rule 16b-3 under the Securities Exchange Act of 1934
and to avoid the loss of the deduction referred to in paragraph (1) of Section
162(m) of the Internal Revenue Code of 1986, as amended.

6. EMPLOYMENT.  Nothing in this Agreement shall interfere with or limit in any
way the right of the Company to terminate Mr. Melrose's employment at any time,
with the Company or any subsidiary of the Company, or shall confer upon Mr.
Melrose any right to continue in the employ of the Company.

7. NONEXCLUSIVITY OF THE PLAN. Neither the adoption of the Plan by the Board nor
the submission of the Plan to stockholders for approval shall be construed to
limit the power of the Board or the Committee to adopt such other incentive
arrangements as either may deem desirable, including without limitation, the
award of stock and cash awards otherwise than under the Plan, or to set
compensation and retirement benefits and make such awards to Mr. Melrose as
either may deem desirable.

8. EXCLUSION FROM PENSION, PROFIT SHARING AND OTHER BENEFIT CALCULATIONS. By
acceptance of the award made by this Agreement, Mr. Melrose agrees that the
award or vesting of Restricted Stock and Performance Units constitute special
incentive compensation that is not taken into account as "salary" or
"compensation" or "bonus" in determining the amount of any payment under any
pension, retirement or profit sharing plan of the Company or any subsidiary. Mr.
Melrose agrees further that such award shall not be taken into account in
determining the amount of any life insurance coverage, short or long-term
disability coverage or any other pay-based benefit provided by the Company or
any subsidiary.

9. AMENDMENT. This Agreement may be amended, modified or terminated from time to
time, provided however that no amendment may be adopted without the approval of
the stockholders of the Company if such amendment requires stockholder approval
pursuant to Rule 16b-3 or Section 162(m), and no amendment, modification or
termination may be adopted without the written agreement of Mr. Melrose if such
amendment, modification or termination would adversely affect his rights.
Subject to the foregoing and the requirements of Section 162(m), the Board may,
in accordance with the recommendation of the Committee and without further
action on the part of stockholders of the Company or the consent of Mr. Melrose,
amend the Agreement to preserve the employer deduction under Section 162(m).

                                       8
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10. GOVERNING LAW. This Agreement and the awards granted hereunder shall be
construed, administered and governed in all respects under and by the applicable
laws of the State of Delaware, without giving effect to principles of conflicts
of laws.

11. SUCCESSORS. Except as otherwise provided in this Agreement shall be binding
upon and inure to the benefit of the Company, its successors and assigns and Mr.
Melrose, his beneficiaries, heirs, executors, administrators and legal
representatives.

                                       9

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         IN WITNESS WHEREOF, the Agreement has been executed and delivered by
the Company as of the 18th day of July, 2002.

                                             THE TORO COMPANY

                                             /s/ J. Lawrence McIntyre
                                             -----------------------------------
                                             Title: Vice President & Secretary

         I hereby agree to the terms and conditions of this Chief Executive
Officer Succession Incentive Award Agreement, as amended.

                                             KENDRICK B. MELROSE

                                             /s/ Kendrick B. Melrose
                                             -----------------------------------

                                       10<PAGE>
                                                                    EXHIBIT 4.15

                          MANAGEMENT SERVICES AGREEMENT

                         MADE THIS 4TH DAY OF MARCH 2002

PARTIES:

1.       ELITE LOGISTICS INC. AND ELITE LOGISTICS SERVICES, INC. (COLLECTIVELY
         "ELITE"), AND;

2.       STEPHEN M. HARRIS (MANAGER) OF THE SECOND PART.

BACKGROUND:

1.       ELITE wishes to retain the services of MANAGER to provide management
         services in accordance with the Position Specification attached hereto.

2.       MANAGER agrees to render such services to ELITE subject to the terms
         and conditions of this Contract.

3.       The mission of ELITE as outlined in its business plan is as follows:
         "Elite will harness the power of wireless communications and global
         positioning technology to improve the security of life and property and
         the efficiency of our clients' business by providing best of breed
         monitoring, tracking and information systems for motor vehicles and
         other mobile and fixed assets."

4.       Pursuant to this Management Services Agreement MANAGER will assist
         ELITE to fulfill its business plan and accomplish its mission.

DECLARATION

I, MANAGER declare that I have read and fully understand the conditions of
employment detailed in the attached Management Services Agreement and accept
them fully.

<Table>
<S>                                                     <C>
SIGNED BY MANAGER                                       SIGNED FOR AND ON BEHALF OF
                                                        ELITE LOGISTICS INC. AND ELITE
                                                        LOGISTICS SERVICES, INC.

By:                                                     By:
   .........................................               .........................................

Name:       Stephen M. Harris                           Name:            Joseph D. Smith
                                                        Title:           Chairman

Witness:                                                Witness:
        ...................................                     ....................................
Full Name                                               Full Name
         ...................................                     ...................................
Address                                                 Address
       .....................................                   .....................................
Occupation                                              Occupation
          ..................................                      ..................................

</Table>

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1        DEFINITIONS:

<Table>
<S>                                      <C>
ELITE                                    Means ELITE Logistics Inc., ELITE Logistics Services, Inc. and all subsidiary
                                         and affiliate companies in which ELITE may have an equity interest from time
                                         to time.

THE BOARD                                Means the Board of Directors of ELITE Logistics, Inc.

THE BUSINESS PLAN                        Means the plan for the operation of ELITE's business as approved by the Board
                                         and amended by the Board from time to time.

CHANGE IN CONTROL                        "Change in Control" shall mean (i) the time that the Corporation first
                                         determines that any person and all other persons who constitute a group
                                         (within the meaning of Section 13(d)(3) of the Securities Exchange Act of
                                         1934 ("Exchange Act")) have acquired direct or indirect beneficial ownership
                                         (within the meaning of Rule 13d-3 under the Exchange Act) of twenty percent
                                         (20%) or more of the Corporation's outstanding securities, unless a majority
                                         of the "Continuing Directors" approves the acquisition not later than ten
                                         (10) business days after the Corporation makes that determination, or (ii)
                                         the first day on which a majority of the members of the Corporation's board
                                         of directors are not "Continuing Directors."

CONFIDENTIAL INFORMATION                 Means all information that is confidential to and the property of ELITE
                                         whether in written, electronic or other form or retained in the mind of the
                                         MANAGER.  Without limiting the generality of the forgoing, it includes all
                                         and any information relating to the business, business plans, affairs,
                                         policies, processes, intellectual property (including without limitation
                                         software products, source codes, designs, specifications, drawings,
                                         technical information, know how, trade secrets, technical and scientific
                                         research, copyright, patents and patent applications), documents, costing,
                                         pricing methods, operations, finances, strategic relationships, customers,
                                         product knowledge, quality standards, devices, market research, past and
                                         present legal or regulatory matters and all such similar information of
                                         ELITE.

DOCUMENTS                                Means all memoranda, notes, specifications, manuals, drawings, plans, design
                                         reports, records and other material stored in written, audio, visual or
                                         electronic or whatsoever form

INTELLECTUAL PROPERTY                    Means the right to use, copy, modify, market, or license any software concept,
                                         design, source code, or documentation. It also includes all rights to any
                                         brand, patent, copyright, registered design, trademark, distinguishing logos,
                                         trade secret or any other intellectual property right belonging to ELITE
                                         including any software, systems or products discovered by MANAGER or by
                                         ELITE. It also includes such other Industrial, Intellectual and Contractual
                                         Property as may further establish or reinforce the ELITE rights in the ELITE
                                         software, systems and products.
</Table>

<PAGE>

<Table>
<S>                                      <C>
MANAGEMENT SERVICES AGREEMENT            Means this agreement between the parties and any amendments thereto.

REQUIRED NOTICE OF TERMINATION           Means the minimum period for notice of termination set out in Schedule A.

REVIEW DATE                              Means the date for annual salary review as set out in Schedule A.

TERRITORY                                Means the territories as set out in Schedule A.

TERMINATION FOR CAUSE                    "Termination For Cause" shall mean termination by the Corporation of the
                                         Executive's employment by the Corporation by reason of the Executive's
                                         wilful dishonesty towards, fraud upon, or deliberate injury or attempted
                                         injury to the Corporation, or by reason of the Executive's wilful material
                                         breach of this Agreement, which has resulted in material injury to the
                                         Corporation.

TERMINATION OTHER THAN FOR CAUSE         "Termination Other Than For Cause" shall mean termination of the Executive's
                                         employment by Elite (other than in a Termination for Cause) and shall include
                                         constructive termination of the Executive's employment by reason of the
                                         Corporation's material breach of this Agreement, such constructive
                                         termination to be effective upon notice from the Executive to the Corporation
                                         of such constructive termination.

VOLUNTARY TERMINATION                    "Voluntary Termination" shall mean the Executive's termination of his/her
                                         employment by the Corporation other than (i) constrictive termination as
                                         described herein, (ii) "Termination Upon a Change in Control," and (iii)
                                         termination by reason of the Executive's death or disability as described
                                         herein.

TERMINATION UPON A CHANGE IN CONTROL     "Termination Upon a Change in Control" shall mean the Executive's termination
                                         of his/her employment with the Corporation within 120 days following a
                                         "Change in Control."

CONTINUING DIRECTORS                     "Continuing Directors" shall mean, as of any date of determination, any
                                         member of the Corporation's board of directors who (i) was a member of that
                                         board of directors on 4 March 2002, (ii) has been a member of that board of
                                         directors for the two years immediately preceding such date of
                                         determination, or (iii) was nominated for election or elected to the
                                         Corporation's board of directors with the affirmative vote of the greater of
                                         (4) a majority of the Continuing Directors who were members of the
                                         Corporation's board of directors at the time of such nomination or election
                                         of at least (4) Continuing Directors.
</Table>

<PAGE>

2.       COMMENCEMENT DATE

2.1      This Contract shall commence on the commencement date specified in
         Schedule A.

3        MANAGER'S DUTIES

3.1      MANAGER shall perform the duties set out in the Position Specification
         contained in Schedule B diligently and competently and in a
         professional manner to the best of MANAGER'S ability for the benefit of
         ELITE. The Chairman and/or Board of Directors may from time to time at
         their sole discretion as is deemed appropriate assign to MANAGER such
         other responsibilities and duties commensurate with MANAGER'S time and
         abilities to handle them.

3.2      MANAGER shall work full-time (a minimum 40 hours per week) for ELITE.
         MANAGER may act as a non-executive director or advisor for other
         companies provided that MANAGER advises Elite of such other activities
         and they do not, in the opinion of the Chairman and/or Board of
         Directors impair MANAGER'S ability to fulfill this Agreement.

3.3      MANAGER shall prepare such business plans, forecasts, activity reports,
         financial reports, and management reports as the Chairman and/or Board
         of Directors may request. MANAGER shall inform the Chairman and/or
         Board of Directors of important developments including without
         limitation:

         o        Information about competitors, their products and prices.

         o        Comments on ELITE' products from actual and prospective
                  customers.

         o        Opportunities for further product development or for new
                  products.

         o        Any other market intelligence.

3.4      MANAGER acknowledges receipt of a copy of the Employee Handbook and
         Company Policy Manual with Executive Addendum and has read understood
         and agreed to the same. MANAGER agrees to abide by company policy and
         such other reasonable limitations upon his scope of authority as may be
         established from time to time by the Board.

3.5      MANAGER shall comply with all the applicable laws and regulations in
         the territory in performing his duties for ELITE.

4        SALARY AND SALARY REVIEWS

4.1      MANAGER shall receive the compensation package including the salary and
         performance related cash bonuses detailed in Schedule A in the manner
         detailed. Salary, including cash bonuses, shall be reviewed annually by
         the Board of Directors on the Review Date.

5.       GENERAL CONDITIONS

5.1      The general conditions of employment shall be as set out in the
         Employee Handbook (copy attached at Schedule C) except as stated herein
         and as amended from time to time.

<PAGE>

6.       EXPENSES.

6.1      ELITE shall reimburse MANAGER for reasonable business expenses
         necessarily incurred in the performance of his duties in accordance
         with ELITE T&E policies and procedures that are in effect at the time
         the expenses are incurred.

6.2      If ELITE provides MANAGER with a corporate credit card, MANAGER is
         responsible for any personal charges incurred on the company credit
         card and without limitation to any other remedy which may be available
         to ELITE hereby grants to ELITE the right to offset such charges
         against any and all amounts which may be due to MANAGER from ELITE.
         MANAGER shall return such credit card to ELITE immediately upon request
         by ELITE and in any event upon termination of this Agreement for
         whatever reason.

6.3      If ELITE provides MANAGER with a corporate phone card, MANAGER is
         responsible for any personal charges incurred on the company phone card
         and without limitation to any other remedy which may be available to
         ELITE hereby grants to ELITE the right to offset such charges against
         any and all amounts which may be due to MANAGER from ELITE. MANAGER
         shall return such phone card to ELITE and desist from using such
         service immediately upon request by ELITE and in any event upon
         termination of this Agreement for whatever reason.

7.       CONFIDENTIAL INFORMATION

7.1      MANAGER acknowledges that by virtue of MANAGER'S employment with ELITE,
         MANAGER will gain knowledge of Confidential Information. MANAGER agrees
         and acknowledges that all such Confidential Information is the sole and
         exclusive property of ELITE. MANAGER covenants that the Confidential
         Information, and any other information obtained by MANAGER in relation
         to ELITE shall during the currency of MANAGER'S employment and at all
         times thereafter, be kept secret and confidential and except to the
         extent that any such Confidential Information or other information
         shall be part of the public domain (other than as a result of the
         breach by the MANAGER of this Clause) such information shall not be
         disclosed other than as required by law.

7.2      MANAGER will not disclose Confidential Information to such parties
         within ELITE who MANAGER should reasonably expect to be excluded from
         receiving such Confidential Information.

7.3      MANAGER further agrees to promptly deliver to ELITE upon termination of
         this contract, or at any time that ELITE may so request, all software,
         media memoranda, notes, records and other documents comprising
         Confidential Information that he then possesses or has under his
         control.

7.4      The MANAGER shall not during the term of this Contract or subsequently
         directly or indirectly divulge to any person other than MANAGER'S
         professional advisor(s) any of the terms of this Contract.

<PAGE>

8.       PROTECTION OF INTELLECTUAL PROPERTY

8.1      MANAGER acknowledges that all ELITE software, systems, products and
         processes are proprietary to the ELITE by virtue of their unique
         design.

8.2      MANAGER shall have no rights in respect of any Intellectual Property of
         the ELITE, or the goodwill associated therewith and MANAGER
         acknowledges that all such rights are vested in ELITE.

8.3      MANAGER shall not during the term of this contract or for a period of
         two years thereafter knowingly aid, abet or assist, either directly or
         indirectly, anyone else in replicating, creating, manufacturing,
         marketing, licensing, or in any other way dealing in systems and
         products infringing the ELITE's Intellectual Property.

8.4      MANAGER shall comply with all directives of the Board and take all
         other reasonable steps to prevent infringement by third parties of the
         Intellectual Property of ELITE.

8.5      MANAGER shall promptly notify the Board of Directors in the event that
         he becomes aware of any infringement by third parties of ELITE's
         Intellectual Property.

8.6      MANAGER further agrees to promptly deliver to ELITE on termination of
         this Management Services Agreement, or at any time that ELITE may so
         request, all memoranda, notes, records and other documents comprising
         or relating to the Intellectual Property that MANAGER then possesses or
         has under MANAGER'S control.

9.       COVENANTS NOT TO COMPETE

9.1      MANAGER agrees that the services he has to perform under this contract
         are of a special, unique, unusual, extraordinary and intellectual in
         character.

9.2      MANAGER acknowledges that ELITE would sustain considerable injury were
         MANAGER to take the knowledge, skills, business contacts and
         information (whether confidential or otherwise) acquired during
         MANAGER'S service with ELITE and use them to compete with ELITE.

9.3      MANAGER covenants that during the term of this Agreement and for a
         period of one year after termination for any reason, neither MANAGER,
         nor any corporation, partnership or joint venture of which MANAGER is a
         member, will without the prior written consent of ELITE, either
         directly or indirectly, and whether as principal, agent, trustee,
         financier, shareholder, debenture holder, director, consultant,
         partner, advisor, or otherwise in the Territory:

         a)       Compete with the Business of ELITE as carried on by ELITE
                  until the date of termination.

         b)       Be concerned in any corporation or business that is or may be
                  engaged or concerned in or does or may carry on business that
                  competes with the Business of ELITE as carried on by ELITE
                  until the date of termination. MANAGER may hold or make
                  investments in Companies whose business does not directly
                  compete with the Business at the time of making such
                  investment, but shall immediately disclose such investments
                  should their business subsequently become competitive.

         c)       Solicit or entice away from ELITE by any means whatsoever (or
                  endeavor to do so) any business from any person who is or was
                  a customer of ELITE within the six month period prior to
                  termination of this Agreement.

<PAGE>

         d)       Employ, offer or procure the offer of employment, or solicit
                  or entice away from ELITE, or induce to breach his/her
                  contract of service with ELITE (or endeavor to do so) any
                  person who was employed by ELITE or who was an officer or
                  agent of ELITE, or a contractor to ELITE at the date of
                  termination or was employed by ELITE in any such capacity at
                  any time during the six month period prior to termination.

9.4      MANAGER will not at any time after termination represents himself as
         being in any way connected with or interested in the Business or
         affairs of ELITE.

9.5      The provisions of this Clause 9 shall bind and enure for the benefit of
         the Parties after the termination of this Contract.

9.6      MANAGER acknowledges that this covenant not to compete is not
         unreasonably restrictive nor will it interfere with his ability to earn
         his livelihood for among other things the following reasons:

         o        It covers only those services and products of the type
                  marketed by ELITE. The market for such systems and products is
                  very small relative to the total software market.

         o        Inconvenience of this covenant not to compete upon MANAGER is
                  minimal in comparison with the hardship that ELITE would
                  potentially sustain without it.

         o        The experience and skills that MANAGER acquires in the course
                  of his employment with ELITE are readily transferable to other
                  non-competing management opportunities on termination of his
                  contract with ELITE.

9.7      Each of the undertakings of MANAGER contained in Clause 9.3 shall be
         read and construed independently of the other undertakings so that if
         one or more should be held to be invalid as an unreasonable restraint
         of trade or for any other reason whatever then the remaining
         undertakings shall be valid to the extent that they are not held to be
         so invalid.

9.8      While the undertakings of MANAGER contained in Clause 9.3 and 9.4 are
         considered by the Parties to be reasonable in all the circumstances, if
         one or more of such undertakings should be held to be invalid as an
         unreasonable restraint of trade or for any other reason whatsoever, but
         would have been held valid if part of the wording thereof had been
         deleted or the period thereof reduced or the range of activities or
         area dealt with thereby reduced in scope, the said undertakings shall
         apply with such modifications as may be necessary to make them valid
         and binding upon the MANAGER. Any such modifications shall be kept to a
         minimum.

9.9      As further consideration for entering into the restrictive covenants
         contained in this Agreement MANAGER shall receive the incentive bonus
         and/or stock option grants as set out in Schedule A.

10       INTELLECTUAL PROPERTY ASSIGNMENT

10.1     MANAGER agrees that all software, inventions, processes, products,
         designs or procedures relating to the Business of ELITE which MANAGER
         may develop or participate in the development of during the term of
         this Contract (hereinafter collectively referred to as "MANAGER'S
         Intellectual Property") whether during normal working hours or not
         shall be deemed to be the property of ELITE or its assignee.

10.2     MANAGER agrees to assign his rights if any to MANAGER'S Intellectual
         Property to ELITE and further to sign any documents reasonably required
         by ELITE in order to protect ELITE' interest in the MANAGER'S
         Intellectual Property.

<PAGE>

11       TERM

11.1     The initial term of this contract is set out in Schedule A. Thereafter
         it may be renewed by mutual agreement until terminated by either party
         giving the other party the Required Notice of Termination.

11.2     ELITE may terminate this contract forthwith for cause if:

         o        MANAGER is guilty of gross dereliction of duty, incompetence
                  or a major breach of this contract

         o        MANAGER commits any illegal, dishonest or fraudulent act
                  against the company or is indicted, convicted or pleads nolo
                  contendere to any felony or any act of moral turpitude

         o        MANAGER is guilty of the use or possession of illegal drugs,
                  or the excessive use of alcohol, or commits any other act that
                  brings ELITE into disrepute.

         o        ELITE shall have the option to terminate this contract "for
                  cause" if MANAGER dies, or is incapable of performing
                  MANAGER'S obligations, in the normal manner, on account of
                  disability for ten consecutive weeks, or in the aggregate
                  fifteen weeks, of any year.

         Any other termination shall be deemed to be without cause.

         ELITE shall have the right to terminate this Agreement without cause
         upon written notice to MANAGER. If ELITE terminates this Agreement
         without cause, ELITE shall accelerate vesting of all options and pay
         MANAGER according to "PAYMENT ON TERMINATION OF EMPLOYMENT" SCHEDULE A.
         The Termination of this contract shall be without prejudice to the
         rights of the parties that accrued up to the date of termination.
         Termination shall not affect those clauses herein, which by their
         nature the parties intend to survive termination.

11.3     Manager may terminate with good cause if

         o        Elite is in breach of management services agreement

         o        Elite permanently reduces Manager's compensation package or
                  demotes Manager from the contemplated Position of authority.

         o        There is a change of control of the company.

         In the event of termination by Manager for Good cause vesting of all
         options shall be accelerated and MANAGER shall be entitled to
         compensation according to Paragraph 7, Severance, Schedule A.

12.      REPRESENTATIONS AND WARRANTIES

12.1     The parties represent the warrant to each other:

         o        Each is free to enter into this Management Services Agreement

         o        Each possesses the legal authority to enter into this
                  Management Services Agreement

         o        There are no outstanding contractual commitments that will
                  prevent or restrict any of them from entering into this
                  Agreement and performing the obligations hereunder.

13.      GOVERNING LAW

13.1     The laws of Texas and controlling Federal Law shall govern this
         Management Services Agreement and any action hereunder shall subject to
         the jurisdiction of the federal and state courts sitting in Harris
         County, Texas.

<PAGE>

14.      ENTIRE AGREEMENT

14.1     This contract represents the entire agreement between the parties with
         respect to the subject thereof as such it supersedes and replaces any
         prior arrangements between the parties either oral or written.

14.2     Any changes or modifications to this contract shall be valid only if
         made in writing and signed by both parties.

15.      SEVERABILITY

15.1     Each provision in this Management Services Agreement is severable
         wholly and in part and if any provision is said to be illegal or
         unenforceable for any reason only the illegal or unenforceable portion
         shall be ineffective and the remainder shall remain in full force and
         effect.

16.      AMENDMENT

16.1     Any purported amendment or variation of this Agreement must be in
         writing and be signed by both Parties.

<PAGE>

                                   SCHEDULE A

                       COMPENSATION, TERMS AND CONDITIONS

<Table>
<S>                             <C>
NAME                            Stephen M. Harris

POSITION                        President and Chief Executive Officer, Elite Logistics, Inc. and Elite
                                Logistics Services, Inc. and member of Board.

COMMENCEMENT DATE               4 March 2002 (or such earlier date as may be agreed).

INITIAL TERM                    1 Year

REVIEW DATE                     1 March each year.

TERRITORY                       United States of America

REQUIRED NOTICE OF              One (1) month's notice in writing
TERMINATION
</Table>

                                  COMPENSATION

1.       ANNUAL COMPENSATION

MANAGER shall receive the following salary and performance bonus:

<Table>
<S>                                      <C>                                                  <C>
SALARY AND                               Base Salary (payable monthly)                        $175,000.00
PERFORMANCE RELATED                                                                           per annum

BONUS:                                   Bonus (1)                                            $87,500.00
                                                                                              per annum

                                         TOTAL ON TARGET REMUNERATION                         $262,500.00

CAR ALLOWANCE                            Payable [Monthly ]                  $ 600.00 per month
</Table>

(1)      Bonuses are payable on achievement of goals established by the Board of
         Directors. (To be agreed within 30 days from the date of this
         agreement.)

<Table>
<Caption>
CAPITAL RAISING                                                                         $43,750.00
---------------                                                                         ----------
<S>                                                                                     <C>
1.       Minimum $100,000 within the first 30 days from date of agreement.

2.       Additional $ 200,000 within the 30 days from date of agreement.

3.       Minimum $1,000,000 within 90 days from date of agreement.

4.       Line of credit to restart shipping product and supporting sales growth of up to
         1200 units / month shipment.

5.       Minimum $7,000,000 within twelve months from date of agreement.

SALES TARGETS:                                                                          $ 21,875.00

1.       3/02-5/02  $500,000

2.       6/02-8/02  $850,000

3.       9/02-11/02 $1,150,000

4.       12/02-2/03 $ 1,500,000

PROFITABILITY:  1 month of profitability within 6 months from date of agreement.        $ 21,875.00

     Total:                                                                             $ 87,500.00
</Table>

<PAGE>

         Bonus will be paid quarterly no later than the date of the filing of
         the Company's quarterly reports (10Q and 10K).

2.       RETENTION BONUS

         In addition to the Annual Compensation detailed below MANAGER shall
         receive stock option allocations in accordance with the 1999 Employee
         Stock Option Plan as follows:

<Table>
<Caption>
  Allotment                            Exercise Price       Vesting Date
  ---------                            --------------       ------------
<S>                                    <C>                  <C>
  250,000 Shares                            $ 0.30          Upon Signing
  250,000 Shares                            $ 0.30            03/04/2003
  250,000 Shares                            $ 0.30            03/04/2004
  250,000 Shares                            $ 0.30            03/04/2005
  </Table>

3.       INVESTMENT OPTION

         MANAGER shall at any time within 6 months of the execution of this
         agreement be entitled to purchase a minimum of 400,000 shares at a
         price of $0.25 each (total investment $100,000.00).

4.       ANNUAL LEAVE / PAID VACATION

         MANAGER shall, be entitled to 4 weeks paid annual vacation to be taken
         in accordance with company policy.

5.       ANNUAL LEAVE / PAID VACATION

         MANAGER shall be entitled to leave of absence and compensation in
         accordance with company policy as set out in the Employee Handbook
         during periods of sickness, disability, or bereavement.

6.       HEALTH INSURANCE

         MANAGER and MANAGER's dependents will be eligible for participation in
         the company's group health insurance scheme in accordance with company
         policy.

7.       CAR LEASE

         MANAGER shall be entitled to the full use of a company motor vehicle.

8.       SEVERANCE

         On termination of this Agreement by Company MANAGER will be paid lump
         sum distribution of the following:

                  i.       Salary to date of termination.

                  ii.      Accrued annual leave.

                  iii.     All bonuses and commissions accrued to the date of
                           termination.

If the termination by Company is for other than cause MANAGER will be paid
additional lump sum distribution of the following:

                  i.       12 month salary.

                  ii.      Any and all bonuses and commissions for 12 months at
                           100% value identified in this agreement for a period
                           of one year from the effective date of termination.

                  iii.     Continue to pay the benefits for a period of one year
                           from the effective date of termination of this
                           agreement.

                  iv.      Full vesting of all invested options.

Unused sick leave is not payable on termination of employment.

<PAGE>

                                   SCHEDULE B

                             POSITION SPECIFICATION

NAME:             Stephen M. Harris
POSITION:         President and C. E. O., Elite Logistics Services, Inc. and
                  Elite Logistics, Inc.
REPORTING TO:     Board of Directors of Elite Logistics, Inc.

<Table>
<Caption>
AREAS OF RESPONSIBILITY                                          PERFORMANCE CRITERIA
-----------------------                                          --------------------
<S>                                                              <C>
1. BUSINESS PLAN AND FUNDING

Strategy: Complete a restructuring and restart of the            1.      Conclude a minimum of $7,000,000.00 in
company to facilitate the goals and objectives outlined                  funding over the next 12 months for the
in Attachment 1.                                                         company to support proper operations and
                                                                         growth.

Objectives: Assure that the company is properly funded           2.      Increase product sales to a minimum of
and obtains profitability over the next 12 months.                       1500 units per month with 12 months
                                                                         minimum revenues of $4,000,000.00.

                                                                 3.      Achieve operating profitability within six
Responsibilities/authorities: Responsible for the                        months of the date of employment.
overall daily company operations with full authority in
accordance with Attachment 1 (Board of Directors                 4.      Within 30 days from the date of employment
requirements)                                                            provide the Board of Directors with a
                                                                         Business Plan

                                                                 5.      Within 30 days from date of employment
                                                                         provide the Board of Directors with a plan
                                                                         and schedule for the company operations
                                                                         for the next 12 months that outlines and
                                                                         supports the restructuring and growth of
                                                                         the company and this identified
                                                                         performance criteria.

2. INVESTOR RELATIONS

Strategy: Develop an acceptable Investor Relations plan           1.      Implement an Investor Relations plan that
to support and maintain the value of the company's                        assure an acceptable return to Elite
publicly traded stock.                                                    Investors with a target stock price of
                                                                          $2.00 within 12 months.
Objectives: Increase the Company's stock
performance/value to assure a proper return to investors          2.      Over the next 24 months move the company
and move the company to a NASDAQ Small Cap position.                      into a position to allow for a move to the
                                                                          NASDAQ Small Cap.
Responsibilities: Responsible for preparing, submitting
to the Board of Directors and implementing a proper               3.      Prepare and submit to the Board of
strategy and plan to accomplish the identified                            Directors an acceptable plan to accomplish
objectives.                                                               these identified performance criteria.

</Table>

<PAGE>

<Table>
<Caption>
AREAS OF RESPONSIBILITY                                          PERFORMANCE CRITERIA
-----------------------                                          --------------------
<S>                                                              <C>

3. INTELLECTUAL PROPERTY

Strategy: Assure that the company's current Intellectual         1.      Assure that the Company Business Plan
Property is maintained in a current status, is properly                  contains adequate detail to allow the Board
enforced and, along with future property, properly                       of Directors appointed Intellectual
supports the business plan.                                              Property Committee to maintain proper
                                                                         protection for the company.

Objectives: Develop and maintain a proper Business Plan          2.      Coordinate closely with the Intellectual
and Sales and Marketing Plan that is protected by the                    Property Committee to assure that the
Company's Intellectual Property Enforcement Plan that will               Company's Intellectual Property properly
protect the company's ability to operate in the space and                supports the Company's Sales and Marketing
control and limit the entry of others into the space.                    Plan and that the Sales and Marketing Plan
                                                                         properly supports the Intellectual Property
                                                                         Enforcement Plan.

Responsibilities: Assure that a proper Business Plan Sales       3.      Report to the Board of Directors any and
and Marketing Plan are maintained by planning committees.                conflicts between the Intellectual Property
That these plans maintain readily visible market areas,                  Enforcement Plan and the Company's Sales
research and development goals and objects to assure that                and Marketing Plan that cannot be agreed on
proper Intellectual Property protection is maintained. and               between the Intellectual Property Committee
                                                                         the President and CEO.
</Table>

<PAGE>

                        SCHEDULE C
GENERAL TERMS AND CONDITIONS

<Table>
<S>                                          <C>
         Annual leave                        Annual leave is provided in accordance with Schedule A. All
                                             holidays shall be taken within twelve months of the date of
                                             entitlement or forfeited unless otherwise approved by the board.
                                             All applications for annual leave shall be made on the leave
                                             application form and shall require a minimum of two weeks
                                             notice.

       Bereavement leave                     MANAGER is entitled to 3 days bereavement leave in each year on
                                             the death of the MANAGER's spouse, child, parent, brother or
                                             sister, grandparent, mother in law or father in law. The
                                             entitlement will not form part of any benefit payable upon
                                             termination of the Management Services Agreement. MANAGER shall
                                             complete a Bereavement Leave Application and file with the human
                                             resources manager.

        Domestic Leave                       MANAGER is entitled to up to five days leave on ordinary pay where
                                             MANAGER finds that it is essential to stay at home in an
                                             emergency in the event of illness of a husband or wife,
                                             dependent child or dependent parent. Such leave shall be treated
                                             as though it were due to MANAGER's own sickness and shall be
                                             subject to the following conditions: leave shall be set-off
                                             against MANAGER's sick leave entitlement On return to work
                                             MANAGER shall complete a sick leave notification and file with
                                             the human resources manager. If requested, a medical certificate
                                             shall be provided to support such leave entitlement.

            Dress                            Code MANAGER is expected to comply with ELITE" dress code as
                                             published in the Employee Handbook from time to time.

        Hours of Work                        MANAGER is expected to work a minimum of 40 hours in any week.
                                             These will normally be worked Monday to Friday at any time
                                             between 8.00 a.m. and 6.00 p.m. to suit the MANAGER.

Notice period for termination of             Either party may terminate the Management Services Agreement by
          employment                         giving the other party one (1) months notice in writing.

</Table>

<PAGE>

<Table>
<S>                                          <C>
    Payment on termination of                On termination of management MANAGER will be paid Salary to
          Employment                         date of termination Accrued annual leave 12 months salary if
                                             the termination is for other than cause. Any and all bonuses and
                                             commissions accrued to the date of termination. Any and all
                                             bonuses and commissions identified in this agreement if the
                                             termination is for other than cause. Unused sick leave is not
                                             payable on termination of employment

         Retiring Age                        Unless otherwise approved, the retiring age of MANAGER will be
                                             65.

          Sick leave*                        After six months of service MANAGER is entitled to 10 days sick
                                             leave for each year of service. This may be accumulated to 30
                                             days and may only be taken in case of genuine illness or
                                             disability. The entitlement will not form part of any benefit
                                             payable upon termination of the Management Services Agreement.
                                             On return to work MANAGER shall complete a sick leave
                                             notification and file with the human resources manager.

       Public Holidays                       Public holidays shall be taken in accordance with company practice
                                             as set out in the employee handbook.

  Board of Director Approval                 All actions dealing with existing and/or new stock or stock
         Requirements                        warrants. Hiring of or change in the position of Chief Financial
                                             Officer. Relocation of the company. Change in the state of
                                             incorporation.
</Table>

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