THIS EMPLOYMENT AGREEMENT (this "Agreement") is made and entered into this 9th day of August,
1999, by and between Strouds, Inc. ("Employer") and Robert M. Menar ("Employee").
1. EMPLOYMENT AND TERM. Employer hereby employs Employee and Employee hereby accepts
employment with and agrees to serve Employer in the capacities and subject to and upon the terms and
conditions hereinafter set forth. The term of Employee's employment hereunder shall be the period commencing
on the date hereof, subject to termination as provided in Paragraph 13 hereof, and continuing in effect until after
the third anniversary of the date hereof; PROVIDED, HOWEVER, that commencing on August 9, 2002 and on
each August 9 thereafter, the term of this Agreement shall automatically be extended for one additional year
unless, not later than 90 days before the expiration of the term of this Agreement, either party shall have given
notice to the other that it or he does not desire to extend this Agreement.
2. DUTIES. Employee shall be employed by Employer as Chief Operating Officer of Strouds, Inc. reporting to
the Chief Executive Officer of Employer. Employee shall perform the duties normally associated with such
position, subject at all times to the general supervision and pursuant to the orders, advice and direction of the
Chief Executive Officer of Employer, and Employee shall perform such other duties as the Chief Executive
Officer of Employer may reasonably assign to Employee from time to time. Employee agrees that so long as this
Agreement continues in effect, Employee shall devote his full business time and energies to the business and
affairs of Employer, use his best efforts, skills and abilities to promote Employer's interests, and perform the
duties described herein and such other duties as may be reasonably assigned to Employee.
3. BASE SALARY. Employer shall pay Employee, and Employee hereby agrees to accept, as compensation for
services rendered hereunder, a salary of Three Hundred Fifty