Item 5.02 Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers;
Compensatory Arrangements of Certain Officers
(a) On January 17, 2008 the Compensation Committee of our Board of Directors (the Compensation Committee)
approved salary increases to:
(i) Merlin Bingham, the Companys President and Chairman of the Board, whereby effective January 1,
2008 Mr. Binghams annual salary was increased to$247,000;
(ii) Roger Kolvoord, the Companys Executive Vice President, whereby effective January 1, 2008 Mr.
Kolvoords annual salary was increased to $224,000; and
(iii) Terry Brown, the Companys Vice President of Operations, whereby effective January 1, 2008
Mr. Browns annual salary was increased to $150,000.
Messrs. Bingham, Kolvoord and Brown have each previously entered into employment agreements with the Company.
The material terms of each of their employment agreements were described in our annual report on Form 10-KSB for the
fiscal year ended October 31, 2006 and filed with the Securities and Exchange Commission on January 31, 2007. Aside
from the increases in salaries to each officer none of the other terms of each of their employment agreements were
amended.
(b) On January 17, 2008 the Compensation Committee approved an increase in annual salary to Robert Devers, our Chief
Financial Officer, to $165,000. Additionally, on January 18, 2008 we entered into an employment agreement with Mr.
Devers, with the agreement being effective as of January 1, 2008. Mr. Devers has served as our Chief Financial Officer
since June 4, 2007, however to date he has served without an employment agreement.
The employment agreement with Mr. Devers is for a one year term and automatically renewable for one year terms
unless terminated by either party. The employment agreement provides that Mr. Devers is entitled to participate in all
the Companys employee benefit plans, including any retirement, pension, profit-sharing, stock option, insurance,
hospital or other plans and benefits which now may be in effect or which may hereafter be adopted by the Board of
Directors.
2