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mulhollandemploymentagr.txt

MULHOLLAND EMPLOYMENT AGREEMENT





                              EMPLOYMENT AGREEMENT



         THIS EMPLOYMENT AGREEMENT (the "Agreement") is  made as of May 16, 2002

by  and  between  American  Inflatables,  Inc.,  a  Delaware  corporation   (the

"Company"), and Gregg R. Mulholland ("Employee"):



                              W I T N E S S E T H:



         WHEREAS, Employee owns 34.9% of the issued and outstanding stock of the

Company and  Employee  wishes to induce  William R.  Fairbanks,  Red Oak Limited

Partnership, a South Carolina limited partnership, and Douglas A. Brown (each an

"ASDG   Shareholder"),   who  are  the  sole  shareholders  of  American  Sports

Development  Group, Inc., f/k/a National  Paintball Supply,  Inc.  ("ASDG"),  to

enter into and  consummate  the  transactions  described  in the Share  Exchange

Agreement  dated May 16,  2002 (the  "Share  Exchange  Agreement"),  between the

Company and the ASDG Shareholders;



         WHEREAS,  the ASDG Shareholders are unwilling to enter into and perform

the Share  Exchange  Agreement  unless  Employee  enters this Agreement with the

Company in replacement of all other  employment  agreements and the like between

Employee and the Company.



         NOW,  THEREFORE,  in consideration of the covenants  contained  herein,

together with other valuable consideration, the receipt and legal sufficiency of

which are hereby acknowledged, Company and Employee agree as follows:



         1. EMPLOYMENT.  Company hereby agrees to employ Employee,  and Employee

hereby accepts such  employment  upon the terms and conditions set forth in this

Agreement.  Employee shall report to the Chief Executive  Officer of the Company

(the "CEO") or such other  person as the CEO shall  designate  from time to time

and shall have such offices and titles and perform such duties as the CEO or his

designee may reasonably  require.  Changes in or additions to Employee's  duties

under  this  Agreement  shall  not  result  in  additional  compensation  unless

expressly agreed to by the board of directors of the Company or its designee.



         2. TERM.  The  initial  term of this  Agreement  shall be for three (3)

years, beginning on May 16, 2002 and terminating on May 16, 2005. This Agreement

may be terminated in accordance  with the  provisions of this  Agreement but, if

not terminated earlier, shall continue following the initial term month-to-month

until terminated pursuant to the terms of this Agreement.



         3.  COMPENSATION.  While  employed  by  Company  under  this  Agreement

Employee  shall receive an annual base salary of One Hundred Forty Four Thousand

Dollars ($144,000),  payable in bi-weekly installments.  In addition to his base

salary, during his employment,  Employee shall receive a bonus of up to $350,000

per year as follows:  for each calendar  quarter during which (a) gross sales of

the  inflatables  division  of the  Company  for such  quarter  equal or  exceed

$500,000  and (b) the gross  margin  (defined  as sales  price less cost of good

sold) on the gross sales of the  inflatables  division  of the  Company  exceeds

32.5%,  Employee  shall receive an amount equal to 2.5% of the total gross sales



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in excess of  $500,000  of the  inflatables  division  of the  Company  for that

quarter, but,  notwithstanding the foregoing,  no further bonus shall be due for

any year after  Employee has already  received  $350,000 in bonus  payments with

respect to that year.  Bonus payments shall be made within 30 days of the end of

each quarter.



         4. FRINGE BENEFITS AND EXPENSE REIMBURSEMENT. While employed by Company

under this  Agreement,  the  Employee  shall  receive from time to time the same

health  and other  benefits  on the same  basis  that  Company  generally  makes

available to all of its employees as a whole from time to time.  Employee  shall

be reimbursed for expenses pursuant to the expense reimbursement policy approved

by the board of directors  of the Company from time to time.  In addition to the

foregoing,  the Company will reimburse Employee for an aggregate of up to $1,000

per month of  Employee's  expenses  reasonably  incurred in  furtherance  of the

business of the Company, provided Employee has provided the Company with written

receipts for such expenses.  Employee may allocate such $1,000 amongst qualified

expenses in his discretion.

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