Kestrel Systems, Inc. 2111 Airport Rd. Whispering Pines, NC 28327

MEMORANDUM

DATE: September 2, 2005 TO: Ms. Alice Jones FROM: John Doe SUBJECT: Promotion to Director of Inventory Control

CONGRATULATIONS It brings me great pleasure to offer you the position of Director of Inventory Control. I based my decision on knowledge of your dedication to the company, accuracy of your work and reports, and your ability to lead your team members. I have included brief details of the position responsibilities, benefits, and salary.

BASIS OF DECISION You have demonstrated an exemplary attitude toward the company. You have grasped the concepts of the changes we need to make in shipping, receiving, and supply. You have shown an acute interest in learning more about our shift into an “On Demand” operation. During your tenure as receiving manager, you have always presented your reports neatly, timely, and accurately. You have excelled in leading your team in the receiving department. This leadership has been especially noticed in the letters of appreciation for your efforts from our various shippers.

POSITION RESPONSIBILTIES Your major responsibilities of this position include the following:  Coordinating the efforts of shipping, receiving, and supply personnel as we streamline our operation into an “On Demand” operation.  Working closely with other department directors in assessing their needs and having those needs available to their teams in a timely manner while minimizing on-hand inventory.  Assisting in the selection of your replacement and any necessary replacement of your department managers.

BENEFITS Director level benefits include the following:  fully paid medical insurance for you  company provided satellite cell phone  personal assistant  reserved parking space Page 2

Directors have the following optional benefits:  paid health club membership for your immediate family  numerous golf opportunities  discounted family vacation packages

SALARY Upon acceptance of this position, your base salary will increase by thirty-five (35) percent. Various incentive bonuses will be in addition to your base salary.

EFFECTIVE DATE This offer will remain in effect for one (1) week from the date of this memorandum. You may let me know your decision personally at my office at any time prior to the termination of this offer. Terms and conditions of this offer will be in effect at the beginning of the next business day following your acceptance.

CONCLUSION Thank you for your continued efforts and dedication to our company. I look forward to working closer with you as we continue to grow and improve our products and manufacturing procedures. I eagerly wait to hear some of your ideas as to how we may further streamline our operations. Any questions regarding clarification of any details of this offer should be addressed to Ruth Ann Smith, Director of Human Resources, at extension 212.

Copy: Ruth Ann Smith