1 EXHIBIT 10(r) September 18, 1996 Darron Ash The Morningstar Group 5956 Sherry Lane Dallas, Texas 75225 Dear Darron, Per this memo, below is an outline of your financial arrangements with Morningstar. These are subject to review by the compensation committee of the board. Term October 1, 1996 through September 30, 1998 Title Chief Financial Officer Base Salary $125,000 Bonus Potential 50% of base salary if budgeted EPS is achieved Severance In the event of a change of control of the company during the term of this agreement, you shall be paid the sum equivalent to one year of your existing base salary plus anticipated bonus. Change in control shall be defined as the acquisition of a majority of the stock or all or substantially all of the assets of the Company by any person of entity, a merger with another company where the then current Board of Directors of Morningstar no longer controls the surviving company or other similar consolidation of the Company with another entity. I'm looking forward to continuing a mutually enjoyable and productive relationship. Sincerely Yours, /s/ HOLLIS JONES - ---------------- Hollis Jones