EMPLOYMENT AGREEMENT

         This Employment  Agreement  (this "Agreement")  is made this 2nd day of
October,  2000  by  and  between  Piranha,  Inc.  a  Delaware  corporation  (the
"Company"), and Dr. Xiaolin Wu ("Executive").

         WHEREAS,  the Company wishes to employ Executive and Executive  desires
to be employed by the Company as its Director of Research and  Development  upon
the terms and conditions set forth herein;

         WHEREAS,  the  Company  is  engaged  in  the  business  of  developing,
marketing and selling data compression technology and consulting and integrating
related business technology solutions (the "Business").

         NOW,  THEREFORE,  in  consideration  of the  foregoing  and the  mutual
covenants   and  promises  in  this   Agreement  and  other  good  and  valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the
Company and Executive agree as follows:

         1.  EMPLOYMENT.    The Company agrees to employ Executive and Executive
agrees to be employed by the Company as Director of Research and Development.

         2. TERM OF EMPLOYMENT.  Executive's employment will commence on October
2,  2000 and  unless  earlier  terminated  in  accordance  with P. 8 below  will
continue  for a term of three  years,  ending on October  1, 2003 (the  "Initial
Term").  At the  end of the  Initial  Term,  the  term  of  employment  will  be
automatically  extended for successive one year terms (each an "Extended  Term")
unless either party elects not to renew this  Agreement by giving written notice
of such  election at least sixty days prior to the  scheduled  expiration of the
Initial Term or  then-current  Extended  Term, as  applicable.  The  Executive's
entire term of employment hereunder is hereinafter called the "Employment Term."

         3.  POSITION  AND   RESPONSIBILITIES.   As  Director  of  Research  and
Development,  the  Executive  shall report  directly to the  President and Chief
Operating Officer of the Company and shall have such duties and responsibilities
as said  President  and the Board of Directors of the Company shall from time to
time prescribe.

         4.  COMMITMENT.  During the Employment Term, Executive shall devote all
of his business time,  attention, skill, and efforts to the faithful performance
of his duties herein.

         5. COMPENSATION.The following shall constitute Executive's compensation
hereunder:

         (A) BASE  SALARY.  During the  Employment  Term,  the Company  will pay
Executive  an initial  base  salary (the "Base  Salary")  of  $160,000  per year
payable in accordance with the Company's  then-current  executive salary payment

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practice. The Base Salary may be reviewed during the Employment Term in the sole
discretion  of the  Company's  Board of  Directors,  and shall not be  decreased
without the prior written consent of Executive.

         (B) FRINGE BENEFITS. Executive will be entitled to participate in group
life and medical  insurance  plans,  profit-sharing  and similar plans and other
fringe  benefits  (collectively,  "Fringe  Benefits"),  comparable to those made
available by the Company to its other  executive  employees,  in accordance with
the terms of such plans.  The Company will  reimburse  Executive for the cost of
Executive's health care benefits for Executive and Executive's spouse during the
Employment Term.

         (C)  WITHHOLDING.  All  compensation  payable to  Executive  under this
Agreement  is stated in gross  amount and to the extent  required by law will be
subject to all applicable  withholding taxes,  other normal payroll  deductions,
and any other amounts required by law to be withheld.

         (D) EXPENSES. The Company, in accordance with its then-current policies
and past  practices,  will promptly pay or reimburse  Executive for all expenses
(including travel and entertainment  expenses)  reasonably incurred by Executive
during the  Employment  Term in connection  with the  performance of Executive's
duties under this  Agreement,  provided that  Executive,  if so requested by the
Company's  President,  must provide to the Company  documentation or evidence of
expenses for which Executive seeks reimbursement.

         6. VACATION AND HOLIDAYS.  During the Employment  Term,  Executive will
be entitled to receive paid vacation for four weeks each year and paid  holidays
in accordance with then-current Company policy.

         7. LOCATION OF  EMPLOYMENT.  Executive  will be entitled to perform his
duties under this Agreement at 6060 North Central Expressway, Suite 560, Dallas,
Texas or such location(s) that the Company and Executive  mutually  determine to
be in the best interests of the Company.

         8. TERMINATION.

         (a) If there has been a material  breach of this Agreement or any other
agreement  executed  by  Executive  in favor of the  Company,  the  Company  may
terminate  this  Agreement upon fifteen days' prior written notice to Executive.
Executive  shall have the right to cure any such breach within such  fifteen-day
period.  Any  uncured  breach  shall  be  considered  "cause"  hereunder.   Upon
expiration  of such notice  period,  this  Agreement  shall  without any further
notice  or  action be  automatically  terminated  and  Executive  shalll  not be
entitled  to  receive  any  further  compensation  (whether  in the form of Base
Salary, Incentive Compensation, Fringe Benefits or otherwise) other than accrued
but unpaid  Base  Salary  and any  vested  stock  options.  Notwithstanding  the
foregoing,  any of the following events will also be deemed a material breach of
this Agreement that is incapable of being cured:

         (i) Executive's continued and deliberate neglect of, willful misconduct
in  connection  with  the  performance  of,  or  refusal  to  perform his duties
hereunder;

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         (ii) Executive's  failure  to  devote  his  full  business  time to the
Company's business;

         (iii)  willful  misconduct  on the part of Executive  that causes or is
likely to cause a material financial injury to the Company,  including,  without
limitation,  Executive's  embezzlement  of  the  Company's  funds  or  theft  or
misappropriation of the Company's or any other party's property; or

         (iv) Executive's conviction of a felony class crime.

         (b) The Employment  Term will terminate  immediately  upon the death or
disability of Executive. Disability of Executive will be deemed to have occurred
whenever Executive has suffered physical or mental illness, injury, or infirmity
that prevents  Executive from fulfilling his duties under this Agreement for 120
consecutive  days and the Company  determines in good faith that such illness or
other  disability is likely to continue for at least the next following 30 days.
In the  case of death or  disability,  Executive  will be  entitled  to  receive
accrued but unpaid Base Salary as of the date of such  termination but all other
obligations of the Company to pay Executive any further compensation (other than
death and disability benefits, if any) or otherwise, will terminate. Executive's
Base  Salary  during any period of  disability  will be reduced by any  benefits
Executive  receives  from  Company-provided  disability  insurance  (if any such
insurance exists).

         (c) The Company may elect to terminate  this  Agreement  without  cause
upon 60 days prior written notice;  provided, that the Company shall continue to
pay Executive all  compensation in accordance with P. 5 hereof for the remainder
of the Initial Term or then-current Extended Term as applicable.

         (d) Executive may elect to terminate  this Agreement upon 30 days prior
written  notice  to the  Company  if there  has been a  material  breach of this
Agreement by the  Company,  unless such breach has been cured within such 30 day
period.

         9.  MODIFICATION  AND  WAIVER.  This  Agreement  may not be modified or
amended  except by an  instrument in writing  signed by the parties.  No term or
condition  of this  Agreement  will be  deemed to have  been  waived,  except by
written instrument of the party charged with such waiver. No such written waiver
will be deemed to be a continuing waiver unless specifically stated therein, and
each such waiver will operate only as to the specific  term or condition  waived
and shall not constitute a waiver of such term or condition for the future or as
to any act other than that specifically waived.

         10.  SEVERABILITY.  If, for any reason, any provision of this Agreement
is held invalid,  such  invalidity  will not affect any other  provision of this
Agreement,  and each  provision  will to the  full  extent  consistent  with law
continue in full force and effect.  If any  provision of this  Agreement is held
invalid  in  part,  such  invalidity  will  in no way  affect  the  rest of such
provision, and the rest of such provision, together with all other provisions of
this Agreement,  will, to the full extent  consistent with law, continue in full
force and effect.

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         11. NOTICES.  Any notice or consent  required or permitted  pursuant to
the  provisions of this  Agreement must be in writing and will be deemed to have
been  properly  given if sent by certified  or  registered  United  States mail;
prepaid,  by overnight courier; or when personally  delivered,  addressed to the
respective party at his address shall appear on the records of the Company.

         12.  HEADINGS.  The headings and other  captions in this  Agreement are
included  solely for  convenience of reference  and will not control the meaning
and interpretation of any provision of this Agreement.

         13.  GOVERNING LAW.   The validity,  interpretation,  performance,  and
enforcement  of  this  Agreement  shall  be governed by the laws of the State of
Illinois, except with respect to conflicts of laws principles.

         14.  BINDING  EFFECT.  This Agreement will be binding upon and inure to
the benefit of  Executive,  the Company,  and their  respective  successors  and
permitted assigns.  The Company will be entitled to assign its rights and duties
under this  Agreement  provided that the Company will remain liable to Executive
should such assignee fail to perform its obligations under this Agreement.

         IN WITNESS WHEREOF,  the parties have executed this Agreement as of the
date first above written.

                                  Piranha, Inc.

                                  By:___________________________________________

                                  Xiaolin Wu