What Mr. Hyland gets...
3. COMPENSATION.
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(a) SALARY. You will receive for your services an annual base salary of
twenty thousand US dollars ($20,000), payable in equal monthly installments of
eight hundred thirty three US dollars and thirty three cents ($833.33) cash and
eight hundred thirty US dollars and thirty three cents ($833.33) worth of
Hartcourt common shares. The average 20-day trading price of Hartcourt prior to
the first of month will be used to calculate this compensation amount. The
salary will be paid in accordance with the Company's standard payroll practices
and subject to standard withholdings for taxes and social security and the like.
Your Base Salary will be reviewed annually.
(b) EXPENSES. Subject to compliance with the Company's normal and
customary policies regarding substantiation and verification of business
expenses, you are authorized to incur on behalf of the Company, and the Company
will directly pay or shall fully reimburse you for, all customary and reasonable
expenses incurred for promoting, pursuing, or otherwise furthering the business
of the Company and its affiliates.
4. STOCK.
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The Company will grant you an option to purchase common stock
consisting of 100,000 shares of common stock at an exercise price per share
equal to no more than the closing price on December 31, 2004. The Initial
Vesting Date for these shares shall be December 31, 2005.
