Document:

Exhibit 10.1

                             SLS International, Inc.
                                3119 South Scenic
                              Springfield, MO 65807

July 17, 2002

Alfred V. Greco PLLC
666 Fifth Avenue
New York, NY  10103
Attn: Alfred V. Greco

         Re:      Alfred V. Greco v. SLS International, Inc.
                  (Settlement Agreement)

Gentlemen,

This letter memorializes the terms and concept agreed on for the settlement of
the captioned action between Alfred V. Greco PLLC ("Greco") and SLS
International, Inc. (the "Company").

         1.       The Company and Greco agree to settle the captioned action for
                  $40,000, in the form of a credit account with the Company in
                  favor of Greco. The Company shall not be required to pay all
                  or any portion of such amount to Greco, but Greco shall only
                  be permitted to use the amount of such credit account in
                  payment of the exercise price of Company stock options issued
                  to Greco for future services performed by Greco. In a separate
                  agreement, Greco and the Company have agreed upon the services
                  to be rendered by Greco, and the terms of the options to be
                  granted for such services, with an aggregate exercise price
                  equal to $40,000.

         2.       In consideration for the Company's agreement to settle the
                  claim for $40,000 as set forth herein, and as a condition to
                  the Company's agreements contained herein, (a) simultaneously
                  herewith, Greco and AVG shall sign the General Release in the
                  form attached hereto as Exhibit A; and (b) Greco and AVG shall
                  sign the Stipulation in the form attached hereto as Exhibit B,
                  to be held in escrow by Greco's and AVG's attorney, Milton
                  Teicher ("Teicher"). Teicher shall deliver the General Release
                  to the Company, and Teicher shall file the Stipulation with
                  the Supreme Court of the State of New York, County of New
                  York, promptly following the parties' agreement on the
                  services to be performed pursuant to item 1 above, Greco's
                  performance of such services, and the Company's delivery of
                  the options as compensation for such services in accordance
                  with item 1 above.

                         [Signatures on following page.]

<PAGE>

                                            Very truly yours,
                                            SLS International,
                                            Inc.:

                                            By
                                              ----------------------------
                                                     John Gott, President

Accepted and Agreed:

Alfred V. Greco PLLC

By
  ----------------------------------
         Alfred V. Greco, Principal

-----------------------                              -----------------------
Alfred V. Greco                                      Milton TeicherExhibit 10.2

                             SLS International, Inc.
                                3119 South Scenic
                              Springfield, MO 65807

July 17, 2002

Alfred V. Greco PLLC
666 Fifth Avenue
New York, NY  10103
Attn:  Alfred V. Greco

Gentlemen,

This letter confirms the agreement of Alfred V. Greco PLLC ("Greco") to provide
services to SLS International, Inc. (the "Company"), and of the Company to pay
for such services:

         1.       Services. Greco shall provide legal services for the Company,
                  consisting of the preparation of a Registration Statement on
                  Form S-8 for the Company's 2000 Stock Purchase and Option Plan
                  ("Option Plan"), covering 2,000,000 shares of the Company's
                  common stock including the shares issuable upon exercise of
                  the Greco Options (as defined below). Greco shall prepare the
                  Registration Statement and shall submit it to the Company
                  within ten business days of the date of this letter. Greco
                  shall promptly make all revisions to such Registration
                  Statement as shall be reasonably requested by the Company or
                  its counsel. It is the Company's obligation and the Company's
                  responsibility to Edgarize the documents and to file the
                  Registration Statement promptly following completion thereof,
                  with notice of filing faxed promptly to Teicher (as defined
                  below). Such Registration Statement shall be filed with the
                  Securities and Exchange Commission prior to the delivery of
                  the Greco Options by Teicher to AVG (as defined below).

         2.       Compensation. In consideration of the services described in
                  item 1 above, the Company grants to Alfred V. Greco ("AVG"),
                  as designee of Greco, options to purchase shares of common
                  stock of the Company under four stock options (the "Greco
                  Options") further described in item 3 below. The Greco Options
                  are granted by the Company pursuant to the Option Plan and are
                  delivered to Teicher to be held in escrow pursuant paragraph 4
                  below. AVG shall be entitled to pay the exercise price of such
                  options by using (and only by using) the credit account in an
                  aggregate amount of $40,000 described in a separate letter
                  agreement among Greco, AVG and the Company dated the date
                  hereof (the "Settlement Agreement").

<PAGE>

         3.       Terms of Options. The Greco Options shall be issued on the
                  terms set forth below, and as set forth in paragraph 4 below
                  the Greco Options shall be delivered to Teicher on the date
                  hereof (with certain provisions left blank by the Company as
                  set forth in paragraph 4 below):

                  the first option shall have an issuance date of the day of the
                  filing with the Securities and Exchange Commission of the
                  Registration Statement on Form S-8 for the shares covered by
                  the Option Plan. Such first option shall grant AVG the right
                  to purchase 22,727 shares at $0.44 per share. Each succeeding
                  option shall be issued 30, 60 and 90 days respectively (such
                  dates, collectively with the date of issuance of the first
                  option, "Option Issue Dates") after the date of issuance of
                  the first option. If an Option Issue Date occurs on a weekend,
                  then that Option Issue Date shall be the next business day.
                  The exercise price for each such succeeding option shall be
                  the average closing bid price for the shares, published on the
                  NASD Bulletin Board, for the 5 trading days preceding the
                  Option Issue Date of each such succeeding option ("Exercise
                  Price"). The number of shares to be issued under each such
                  option shall be the quotient of (a) $10,000 divided by (b) the
                  respective per share Exercise Price thereof. Each Greco Option
                  shall be immediately exercisable and shall have a term of four
                  (4) months following the respective Option Issue Date. If not
                  exercised within such four-month period, such Option shall
                  expire and be of no further force or effect.

         4.       Escrow. To ensure the Company's performance of its obligations
                  under items 2 and 3 above, simultaneously with the execution
                  of this letter, the Company shall deliver the Greco Options to
                  Milton Teicher, Greco's and AVG's attorney ("Teicher"). The
                  first option shall be held in escrow by Teicher until the
                  Registration Statement on Form S-8 has been filed, at which
                  time Teicher shall fill in the issuance date of the option as
                  the date of the filing of the Registration Statement and shall
                  deliver the first option to AVG. The three succeeding options
                  shall be held in escrow by Teicher (with the dates thereof,
                  the Exercise Prices thereof, and the numbers of shares subject
                  thereto each being blank and to be determined pursuant to the
                  formula stated in item 3 above). Teicher shall fill in the
                  issuance date, Exercise Price and number of shares for each
                  succeeding option in accordance with item 3, and deliver the
                  applicable succeeding option to AVG on the 30th, 60th and 90th
                  day, respectively, as described in item 3. At least four hours
                  prior to delivery of each succeeding option to AVG, Teicher
                  shall fax to the Company at (417) 883-2723 notice of the date,
                  Exercise Price and number of shares that he will fill in such
                  option, with a copy to Jeff Mattson at (312) 360-6572. Unless
                  the Company or its attorney indicates disagreement with the
                  issuance date, Exercise Price or number of shares within four
                  hours by return fax to Teicher at (212) 582-0176, the amounts
                  specified by Teicher shall be deemed final, absent intentional
                  error or fraud. If there is a dispute over the calculation of
                  Exercise Price or the number of shares, the parties agree to
                  submit and be bound by the calculation thereof by the
                  Company's auditors. Notwithstanding anything to the contrary
                  contained herein, the Company shall not alter the delivery
                  instructions concerning the options as specified herein,
                  except in the event of a disagreement with the calculations of
                  Exercise Price, number of shares and issuance date.

<PAGE>

         5.       Settlement Agreement. Pursuant to the Settlement Agreement,
                  Greco and AVG have signed a General Release and a Stipulation,
                  which are being held in escrow by Teicher. In the Settlement
                  Agreement, the Company, Greco and AVG agreed that the General
                  Release shall be delivered to the Company, and the Stipulation
                  shall be filed, promptly following the parties' agreement on
                  the services set forth in item 1 of the Settlement Agreement,
                  Greco's performance of such services, and the Company's
                  delivery of the options set forth in item 1 of the Settlement
                  Agreement. Greco, AVG and the Company agree that upon the
                  Company's delivery of the options to Teicher, Greco's
                  performance of the services provided in item 1 hereof, and the
                  Company's filing of the Registration Statement on Form S-8
                  described herein, all such conditions to delivery of the
                  General Release and filing of the Stipulation will have been
                  met, and at such time, Teicher will deliver the General
                  Release and file the Stipulation as described in the
                  Settlement Agreement.

         6.       Company Covenant. The Company covenants that it will timely
                  file its periodic reports with the SEC as required by the
                  Exchange Act of 1934, as amended, for any period during which
                  any of the Greco Options are outstanding.

         7.       Escrow Agent. The parties agree to indemnify Teicher and hold
                  him free and harmless from any and all claims, lawsuits,
                  actions or proceedings in connection with the transactions
                  contemplated herein, except for acts of gross negligence or
                  malfeasance.

                                                Very truly yours,
                                                Alfred V. Greco PLLC

                                                By
                                                  -------------------------
Accepted and Agreed

SLS International, Inc.:

By
   ---------------------------
     John Gott, President

-----------------------                              -----------------------
Alfred V. Greco                                      Milton Teicher

#474469

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