Document:

Exhibit 10.1

                  EMPLOYEES RESTRICTED STOCK PURCHASE AGREEMENT

         AGREEMENT made as of this 8th day of December,  2006,  (the  "Effective
Date") between Balchem Corporation, Inc., a Maryland corporation (the "Company")
and [employee] (the "Purchaser").

         WHEREAS, pursuant to the Company's Amended and Restated 1999 Stock Plan
(the "Plan"),  the Company wishes to grant  Purchaser a stock purchase right, as
such  term is  defined  in  Section  1 of the Plan,  to  purchase  shares of the
Company's  common stock subject to the terms and conditions of the Plan and this
Agreement.

         NOW,  THEREFORE,  in  consideration  of the  premises  and  the  mutual
covenants  contained  in the Plan and  herein  and for other  good and  valuable
consideration,  the receipt and adequacy of which are hereby  acknowledged,  the
parties hereto, intending to be legally bound, agree as follows:

         1. Stock Purchase Right.
            --------------------

         1.1 Grant of Stock  Purchase  Right.  The Company  hereby grants to the
             -------------------------------
Purchaser the right and option (the "Stock Purchase  Right"),  for a period from
the date hereof until the  "Expiration  Date" (as defined in Section 1.3 below),
to purchase  __________________________  (_______)  shares of the Common  Stock,
$.06(2)/3  par value per share,  of the Company  (the  "Shares")  for a purchase
price of  $.06(2)/3  per  share,  on the terms and  subject  to the  conditions,
repurchase  options,  restrictions  and  other  provisions  set  forth  in  this
Agreement and in the Plan.

         1.2 Exercise. Subject to the conditions set forth in this Agreement and
             --------
in the Plan,  the Purchaser may exercise the Stock  Purchase Right and subscribe
to purchase the Shares by executing and delivering this Agreement to the Company
at any time prior to the Expiration Date,  accompanied by payment in full of the
purchase  price  for the  Shares  being  purchased  in cash or by  check  of the
Purchaser payable to the order of the Company.  Upon receipt of such payment and
executed  Agreement  from the  Purchaser,  the  Company  shall issue one or more
certificates in the name of the Purchaser for that number of Shares purchased by
the Purchaser, which Shares shall be subject to the restrictions, conditions and
other provisions set forth in this Agreement and in the Plan.

         1.3 Expiration. This Stock Purchase Right and the right to purchase the
             ----------
Shares  hereunder  shall expire and be of no further force or effect on December
27, 2006.

         1.4  Nontransferability  of Stock Purchase  Right.  This Stock Purchase
              --------------------------------------------
Right is personal to the Purchaser, and neither the right to purchase the Shares
or  any  other  right  hereunder  may  be  assigned,  transferred,   pledged  or
hypothecated  (whether by  operation  of law or  otherwise),  nor shall any such
rights be subject to execution,  attachment or similar process. Upon any attempt
to assign,  pledge,  transfer,  hypothecate  or otherwise  dispose of this Stock
Purchase  Right  or any  rights  granted  hereunder,  or  upon  the  levy of any
attachment or similar process upon this Stock Purchase Right or any such rights,
this Stock Purchase Right and all of the rights of the Purchaser hereunder shall

<PAGE>

thereupon automatically terminate and become null and void.

         2. Company  Representations and Warranties.  The Company represents and
            ---------------------------------------
warrants to the Purchaser as follows:

         2.1 Organization.  The Company is a corporation duly organized, validly
             ------------
existing  and in good  standing  under the laws of the State of Maryland and has
the  corporate  power and  authority  to enter into,  execute  and deliver  this
Agreement and to perform fully its obligations hereunder.

         2.2  Authority  to Execute and Perform  Agreement.  The  execution  and
              --------------------------------------------
delivery of this Agreement and the consummation of the transactions contemplated
hereby have been duly authorized by the Board of Directors of the Company.  This
Agreement  has been  duly  executed  and  delivered  by the  Company  and,  upon
execution  hereof  by  the  Purchaser,  will  constitute  a  valid  and  binding
obligation of the Company, enforceable in accordance with its terms.

         2.3 Issuance of Shares.  The issuance,  sale and delivery of the Shares
             ------------------
in accordance  with Section 1 of this Agreement have been duly authorized by all
necessary corporate action on the part of the Company.  The Shares, when issued,
sold and delivered  against payment  therefore in accordance with the provisions
of  this  Agreement,   will  be  duly  and  validly   issued,   fully  paid  and
nonassessable.

         3. Purchaser's Representations and Warranties. The Purchaser represents
            ------------------------------------------
and warrants to the Company as follows:

         3.1  Investment.  The  Purchaser is  purchasing  the Shares for his own
              ----------
account for investment only, and not with a view to, or for resale in connection
with, any distribution of the Shares in violation of the Securities Act of 1933,
as amended (the "Securities Act"), or any rule or regulation thereunder.

         3.2  Adequate   Information.   The  Purchaser  has  had  such  adequate
              ----------------------
opportunity to obtain from representatives of the Company such information as is
necessary to permit an evaluation  of the risks and merits of the  investment in
the Company.

         3.3 Assessment of Risk. The Purchaser has had sufficient  experience in
             ------------------
business,  financial  and  investment  matters to be able to evaluate  the risks
involved  in the  purchase  of the  Shares  and to make an  informed  investment
decision with respect to such purchase.

         3.4 Economic  Risk.  The  Purchaser  can afford a complete  loss of the
             --------------
value of the Shares and is able to bear the economic risk of holding such Shares
for an indefinite period.

         3.5 Transfer Restrictions.  The Purchaser understands that, in addition
             ---------------------
to the restrictions on transfer of the Shares set forth in Section 6 hereof, (i)
the Shares have not been registered under the Securities Act and are "restricted
securities"  within the meaning of Rule 144 under the  Securities  Act, (ii) the
Shares  cannot be sold,  transferred  or otherwise  disposed of until the Shares
have vested in accordance with this Agreement.

                                      -2-
<PAGE>

      4. Intentionally omitted.
         ---------------------

      5. Repurchase.
         ----------

      5.1 Repurchase  Option. The Shares shall be subject to a repurchase option
          ------------------
in favor of the Company as follows:

         (a) If, at any time prior to the "Vesting  Date" (as defined in Section
5.3 below),  the Purchaser  ceases to be an employee of the Company by reason of
termination of the Purchaser's employment by the Company for cause or due to the
Purchaser's  voluntary  resignation from the Company's employ, the Company shall
have the right and option to repurchase and acquire from the Purchaser, and upon
exercise of such right and option the Purchaser  shall sell to the Company,  all
or any portion of the Shares then owned by such  Purchaser for a purchase  price
of $.06(2)/3 per share (as adjusted for stock  splits,  stock  dividends,  stock
combinations, reorganization and the like) (the "Repurchase Price").

         (b) In addition to the  provisions of Section  5.1(a) above and subject
to approval  of the  Compensation  Committee  of the Board of  Directors  of the
Company,  if, at any time prior to the Vesting Date, the Purchaser  ceases to be
an  employee  of the  Company  as a result  of:  (1) the  Purchaser's  voluntary
retirement  from the  Company's  employ at or after age 62; (2) the  Purchaser's
death,  major disability or significant  illness;  or (3) the termination of the
Purchaser's  employment by the Company without cause, the Company shall have the
right and option to repurchase and acquire from the Purchaser, and upon exercise
of such right and option the  Purchaser  shall sell to the Company,  for a price
per share equal to the Repurchase Price, that number of Shares which is equal to
the difference between (i) the total number of Shares, minus (ii) the product of
(A) 1/48 of the total number of Shares, times (B) the number of full months that
the Purchaser has remained an employee of the Company during the period from the
Effective  Date  through  the  date of such  cessation  of  employment  with the
Company.

         5.2 Exercise of Repurchase  Option. (a) The repurchase option hereunder
             ------------------------------
shall only be exercised upon approval thereof by the  Compensation  Committee of
the Board of  Directors of the  Company,  specifying  the number of Shares to be
repurchased.  Upon such  approval,  the Company  shall  exercise the  repurchase
option  provided  in this  Section by  delivering  or  mailing to the  Purchaser
written notice of exercise  specifying the number of Shares to be repurchased by
the Company within thirty (30) days after the effective date of the  termination
of Purchaser's service as an employee of the Company.

         (b) Within ten (10) days after the Purchaser's receipt of the Company's
notice of the  exercise of the  repurchase  option  pursuant to  subsection  (a)
above,  the Purchaser (or his/her estate,  executors,  administrators,  heirs or
personal representatives, as the case may be) shall tender to the Company at its
principal offices the certificate or certificates  representing the Shares which
the Company has elected to re-purchase,  duly endorsed in blank by the Purchaser
or with duly endorsed stock powers  attached  thereto,  all in form suitable for
the transfer of such shares to the Company. Upon its receipt of such Shares, the
Company  shall  deliver  or  mail to the  Purchaser  a check  in the  amount  of

                                      -3-
<PAGE>

aggregate re-purchase price therefore.

         (c) After the time at which any Shares are  required to be delivered to
the Company for transfer to the Company  pursuant to subsection  (b) above,  the
Purchaser shall cease to be the owner or holder of such Shares for all purposes,
and the Company  shall not pay any  dividend to the  Purchaser on account of the
purchased  Shares or permit the  Purchaser to exercise any of the  privileges or
rights of a stockholder with respect to such Shares.

         5.3 Termination of Repurchase Option. The Company's right of repurchase
             --------------------------------
of the Shares under this Section 5 shall  terminate as to all of the Shares upon
the first to occur of the following dates (the "Vesting Date"):

            (a)   the date which is four (4) years after the Effective Date;

            (b)   the date of a Change  in  Control  of the  Company.  Change in
                  Control   shall   mean  the   consummation   of  a  merger  or
                  consolidation  of the Company with or into  another  entity or
                  any other  corporate  reorganization,  if more than 50% of the
                  combined voting power of the continuing or surviving  entity's
                  securities   outstanding   immediately   after  such   merger,
                  consolidation or other  reorganization is owned by persons who
                  were not stockholders of the Company immediately prior to such
                  merger,   consolidation  or  other   reorganization;   or  any
                  transaction  (other  than an issuance of shares by the Company
                  for cash) in or by means of which one or more  persons  acting
                  in concert  acquire,  in the  aggregate,  more than 50% of the
                  combined   voting  power  of  Company's   outstanding   equity
                  securities;  or the sale, transfer or other disposition of all
                  or substantially all of the Company's assets.

         6. Restrictions on Transfer.
            ------------------------

         6.1  Transfer  Restrictions.  The  Purchaser  shall  not,  directly  or
              ----------------------
indirectly,  sell, assign, transfer,  encumber, pledge, hypothecate or otherwise
dispose of, by operation of law or otherwise (collectively,  "Transfer"), any of
the  Shares  or any  interest  therein  so long as they  remain  subject  to the
repurchase  option  set forth in  Section  5.1,  except as  expressly  permitted
pursuant  to Section  6.2 below.  Any sale or  Transfer,  or  purported  sale or
Transfer, of Shares in violation of the provisions of this Section shall be null
and void.

         6.2 Permitted  Transfers.  The following  transactions  shall be exempt
             --------------------
from the restrictions on Transfer set forth in Section 6.1:

                  (i)  the  Purchaser's  transfer  of any  or all of the  Shares
either  during  his/her  lifetime  or on death by will or  intestacy  to his/her
immediate family or to a trust the beneficiaries of which are exclusively one or
more of the  Purchaser  and a member or  members  of the  Purchaser's  immediate
family,  except any such  transfers  made  pursuant to any divorce or separation
proceedings

                                      -4-
<PAGE>

or  settlement  (for purposes  hereof,  the term  "immediate  family" shall mean
spouse, lineal descendant,  father,  mother,  brother or sister of the Purchaser
making the transfer); or

                  (ii) a Transfer of Shares to the  guardian or  conservator  of
the Purchaser; provided, however, that in any such case, the transferee or other
recipient  shall receive and hold such stock  subject to the  provisions of this
Agreement  and  there  shall be no  further  Transfer  of such  stock  except in
accordance with this Agreement.  No Transfer pursuant to this paragraph shall be
effective,  and the Company shall not be required to recognize any transferee of
Shares  hereunder  as a  stockholder  of  the  Company,  unless  and  until  the
conditions set forth in the preceding  sentence have been met and the transferee
agrees in writing to be bound by the provisions of this Agreement.

         7. Restrictive  Legend. All certificates  representing  Shares owned by
            -------------------
the Purchaser shall have affixed thereto a legend in substantially the following
form,  in addition to any other  legends that may be required  under  federal or
state securities laws or under the Shareholders Agreement:

                  THE SHARES EVIDENCED BY THIS CERTIFICATE ARE
                  SUBJECT TO  RESTRICTIONS  ON TRANSFER AND AN
                  OPTION  TO  PURCHASE  SET FORTH IN A CERTAIN
                  RESTRICTED STOCK PURCHASE  AGREEMENT BETWEEN
                  THE   CORPORATION  (OR  ITS  PREDECESSOR  IN
                  INTEREST) AND THE  REGISTERED  OWNER OF THIS
                  CERTIFICATE   (OR  HIS/HER   PREDECESSOR  IN
                  INTEREST),  AND SUCH  AGREEMENT IS AVAILABLE
                  FOR INSPECTION  WITHOUT CHARGE AT THE OFFICE
                  OF THE CORPORATION.

         8. Adjustments for Stock Splits, Stock Dividends,  etc. If from time to
            ---------------------------------------------------
time while the Shares are subject to the repurchase  option,  or restrictions on
transfer set forth herein,  there is any stock split-up,  stock dividend,  stock
distribution or other  reclassification of the stock of the Company, any and all
new, substituted or additional  securities to which the Purchaser is entitled by
reason of his  ownership  of the  Shares  shall be  immediately  subject to such
repurchase  option and  restrictions  on  transfer in the same manner and to the
same  extent as the  Shares  and the price  payable  to the  Purchaser  upon the
Company's exercise of the repurchase option shall be appropriately adjusted.

         9.  Remedies.  (a) The  Purchaser  acknowledges  and  agrees  that  any
             --------
violation of the provisions of this Agreement will cause  irreparable  damage to
the Company and that the  Company  will have no adequate  remedy at law for such
violation.  Accordingly, the Purchaser agrees that the Company shall be entitled
as a matter of right to an injunction, specific performance or other appropriate
equitable  relief  from any court of  competent  jurisdiction,  restraining  any
further violation of such provision or affirmatively compelling the Purchaser to
carry out his or her obligations hereunder. Such right to equitable relief shall
be cumulative  and in addition to any other right or remedy the Company may have
at law or in equity.

                                      -5-
<PAGE>

                  (b) In the  event  that the  Purchaser  fails to  deliver  any
certificates  representing  Shares  required  to be  transferred  to the Company
pursuant to the terms of this Agreement,  the Company may (i) elect to establish
a  segregated  account  in which the  purchase  price for such  Shares  shall be
placed,  such account to be turned over to the  Purchaser  upon  delivery of the
certificates  representing such Shares together with appropriate  instruments of
transfer duly executed by the Purchaser,  and (ii)  immediately  thereafter take
such  action as may be  required  to  transfer  record  title to such  Shares to
itself.  The  Purchaser  hereby  grants  the  Company  a power of  attorney  for
effecting any transfer in accordance with the previous  sentence,  such power of
attorney to be deemed coupled with an interest and irrevocable.

         10. Section 83(b) Election. Purchaser understands that under Section 83
             ----------------------
of the Internal  Revenue Code of 1986, as amended (the "Code"),  the  difference
between the  purchase  price paid for the Shares and their fair market  value on
the date any  forfeiture  restrictions  applicable  to such Shares lapse will be
reported as ordinary income at that time. For this purpose, the term "forfeiture
restrictions"  includes  the  right of the  Company  to  repurchase  the  Shares
pursuant to its repurchase  option under Section 5 of this Agreement.  Purchaser
understands  that  Purchaser  may elect to be taxed at the time the  Shares  are
acquired  hereunder  to the extent the fair market  value of the Shares  differs
from the purchase  price rather than when and as such Shares cease to be subject
to such  forfeiture  restrictions,  by filing an election under Section 83(b) of
the Code with the I.R.S.  within  thirty  (30) days  after the date of  purchase
hereunder. If the fair market value of the Shares at the date of purchase equals
the purchase price paid (and thus no tax is payable),  the election must be made
to avoid adverse tax  consequences  in the future.  Purchaser  understands  that
failure to make this filing within the thirty (30) day period will result in the
recognition  of ordinary  income by the  Purchaser (in the event the fair market
value of the Shares  increases  after the date of  purchase)  as the  forfeiture
restrictions  lapse.   PURCHASER   ACKNOWLEDGES  THAT  IT  IS  PURCHASER'S  SOLE
RESPONSIBILITY,  AND NOT THE COMPANY'S,  TO FILE A TIMELY ELECTION UNDER SECTION
83(b).  PURCHASER IS RELYING SOLELY ON PURCHASER'S  ADVISORS WITH RESPECT TO THE
DECISION AS TO WHETHER OR NOT TO FILE AN 83(b)  ELECTION.  PURCHASER ALSO AGREES
TO PROVIDE COMPANY WITH A COPY OF THE 83(b) ELECTION IF SO FILED.

         11.  Withholding.  The  Company  shall  have the right to  deduct  from
              -----------
payments of any kind otherwise due to the Purchaser any federal,  state or local
taxes of any kind  required  by law to be  withheld  with  respect to any of the
Shares issued hereunder.

         12.  Severability.  The invalidity or unenforceability of any provision
              ------------
of this Agreement shall not affect the validity or  enforceability  of any other
provision of this Agreement and each other  provision of this Agreement shall be
severable and enforceable to the extent permitted by law.

         13. Waiver;  Amendment.  No provision of this Agreement shall be waived
             ------------------
or amended, either generally or in any particular instance,  except in a writing
signed by the Company and the Purchaser.

         14. Binding  Effect.  This Agreement shall be binding upon and inure to
             ---------------
the  benefit  of the  Company  and the  Purchaser  and their  respective  heirs,
executors,  administrators,  legal

                                      -6-
<PAGE>

representatives,  successors and assigns. No transfer of any of the Shares shall
be effective  unless the transferee  first agrees in writing to all of the terms
hereof.

         15. No Rights To Employment.  Nothing contained in this Agreement shall
             -----------------------
be construed as giving the Purchaser any right to be retained,  in any position,
as an employee of or consultant or advisor to the Company.

         16. Notices.  All notices  required or permitted  hereunder shall be in
             -------
writing and deemed effectively given upon personal delivery, delivery by Federal
Express or other  recognized  overnight  delivery service or upon deposit in the
United States Post Office,  by registered or certified  mail,  postage  prepaid,
return receipt  requested,  if to the Company at its executive offices and if to
the  Purchaser  at the  address  shown  beneath  his or her  signature  to  this
Agreement,  or in either case at such other address or addresses as either party
shall designate to the other in accordance with this Section.

         17.  Pronouns.  Whenever the context may require,  any pronouns used in
              --------
this Agreement  shall include the  corresponding  masculine,  feminine or neuter
forms, and the singular form of nouns and pronouns shall include the plural, and
vice versa.

         18. Entire  Agreement.  This Agreement and the documents and agreements
             -----------------
referenced  herein  constitute  the entire  agreement  between the parties,  and
supersedes  all prior  agreements  and  understandings,  relating to the subject
matter of this Agreement.

         19.  Governing Law. This Agreement shall be construed,  interpreted and
              -------------
enforced in accordance  with the laws of the State of New York.  The Company and
each of the  Purchasers  hereby  (a)  agree  that  any  action,  suit  or  other
proceeding  arising out of or based upon this Agreement  shall be brought in the
courts of the State of New York or any federal court located in such state,  and
(b) irrevocably consent and submit to the exclusive  jurisdiction of such courts
for the purpose of any such action, suit or proceeding.

         20. 1999 Stock Plan.  The Shares are issued  pursuant to the  Company's
             ---------------
Amended and Restated 1999 Stock Plan, a copy of which has been  furnished to the
Purchaser, and are subject to such Plan in all respects.

        21.  Section 409A  Compliance.  This Stock Purchase Right is intended to
             ------------------------
comply  with the  requirements  of  Section  409A,  and the  regulations  issued
thereunder.  To the  extent  of any  inconsistencies  with the  requirements  of
Section 409A, the Stock Purchase Right shall be interpreted and amended in order
to meet such Section 409A  requirements.  Notwithstanding  anything contained in
this Agreement or in any amendments  attached hereto to the contrary,  it is the
intent of the Corporation to have this Plan  interpreted and construed to comply
with any and all provisions  Section 409A  including any subsequent  amendments,
rulings or interpretations from appropriate governmental agencies.

                                [END OF DOCUMENT]

                               [SIGNATURES FOLLOW]

                                      -7-
<PAGE>

         IN WITNESS WHEREOF,  the parties hereto have executed this Agreement as
of the day and year first above written.

                                     BALCHEM CORPORATION

                                     By:
                                         -----------------------------------
                                           Dino A. Rossi, President & CEO

                                     PURCHASER:

                                     ----------------------------------------
                                     (Signature)

                         Address:
                                     ----------------------------------------

                                     ----------------------------------------

                                     ----------------------------------------EXHIBIT 10.1

                         EMPLOYMENT AGREEMENT LION, INC.
                             (Randall D. Miles, CEO)

                  This Employment Agreement (this "Agreement") is made effective
the 11th day of December,  2006 ("Effective Date"), by LION, Inc.  ("Employer"),
and Randall D. Miles ("Executive"), Employer's Chief Executive.

                                    RECITALS

         Employer desires  Executive's  employment with Employer,  and Executive
wishes to accept such  employment,  upon the terms and  conditions  set forth in
this Agreement.

                                    AGREEMENT

         The parties, intending to be legally bound, agree as follows:

                                   DEFINITIONS

         For the  purposes  of this  Agreement,  the  following  terms  have the
meanings specified or referred to in this Section 1.

         "Basic  Compensation"  is defined as Salary and  Benefits  (see Section
3.1.1 and 3.1.2).

         "Bonus Compensation" is defined in Section 3.2.

         "Cause" is defined in Section 6.2

         "Confidential  Information" is defined as the following information and
materials in written,  oral, magnetic,  photographic,  optical or other form and
whether now existing or developed or created  during the term of this  Agreement
which are proprietary to Employer and are highly sensitive in nature.

                  INFORMATION  MARKED  PROPRIETARY  OR  CONFIDENTIAL.  All data,
documents,  materials,  drawings  and  information  in tangible  form and marked
"Proprietary" or "Confidential."

                  PRODUCTS. Any and all ideas, designs, inventions, discoveries,
processes,   methods,   plans,  concepts,   methods,   techniques,   structures,
specifications, design specifications, design notes, flow charts, documentation,
technical and engineering data,  laboratory studies,  test results and any other
information  and  materials,  whether  or  not in  tangible  form,  relating  to
Employer's operations.

                                       1
<PAGE>

                  TRADE SECRETS. All Employer's trade secrets, as defined in the
Washington  Trade  Secrets  Law,  RCW  19.108  et  seq.  and  including  without
limitation,  the specific terms of Employer's  relationships  or agreements with
significant  vendors  and  customers,   and  targeted  prospective  vendors  and
customers;  Employer's  customer list;  and  information  concerning  Employer's
management, finance, marketing and business plans.

                  LEGAL RIGHTS. Patents,  copyrights, trade secrets, trademarks,
and service marks ("Intellectual Property"),  including any documents containing
information concerning such Intellectual Property.

                  THIRD PARTY INFORMATION. Any and all information and materials
in  Employer's  possession  or under its control from any other person or entity
which  Employer is obligated to treat as  confidential  or  proprietary  ("Third
Party Information").

                  NOT GENERALLY  KNOWN.  Any and all  information  not generally
known to the  public  or within  the  industries  or  trades  in which  Employer
competes.

         "Effective  Date" means the date stated in the first  paragraph  of the
Agreement.

         "Employment  Period" means the period  beginning on the Effective  Date
and ending at 11:59 PM on December 31, 2009, or earlier if upon  termination  of
Executive's employment pursuant to Section 6.

         "Person"  is any  individual,  corporation  (including  any  non-profit
corporation),  general or limited partnership,  limited liability company, joint
venture, estate, trust, association, organization, or governmental body.

         "Post-Employment Period" is defined in Section 8.2.4.

         "Proprietary Items" is defined in Section 7.2.4.

         "Salary" is defined in Section 3.1.1.

         "Severance  Benefit"  is  defined  as  continuation  of, or  payment to
maintain,  Executive's Basic Compensation,  at the level Executive was receiving
at the time of  termination,  for a period  of six (6)  months  ("the  Severance
Period"). Salary will be paid during the Severance Period pursuant to Employer's
payroll practices in effect on the date of Executive's termination.  In order to
be eligible to receive a Severance Benefit,  Executive agrees that he must first
sign a full waiver and release of claims  against  Employer  and its  directors,
officers, employees, and affiliates.

         1.12     "Stock" is Common stock of LION, Inc.

                              EMPLOYMENT AND DUTIES

         EMPLOYMENT

         Employer  hereby  employs  Executive,   and  Executive  hereby  accepts
employment  by  Employer,  upon  the  terms  and  conditions  set  forth in this
Agreement.

                                       2
<PAGE>

         TERM

         Subject  to the  provision  of  Section  6,  the  term  of  Executive's
employment  under  this  Agreement  will be from the  Effective  Date  until and
including December 31, 2009.

         DUTIES

         Executive  will  have such  duties  as are  assigned  or  delegated  to
Executive  by the  Board  of  Directors  of  Employer  and  will  serve as Chief
Executive Officer.  Executive will devote his entire business,  time, attention,
skill,  and energy  exclusively  to the business of Employer,  will use his best
efforts to promote the success of Employer's business,  and will cooperate fully
with  the  Board of  Directors  in the  advancement  of the  best  interests  of
Employer.  If Executive is elected as a director of Employer or as a director or
officer of any of its  affiliates,  Executive  will  fulfill  his duties as such
director or officer without additional compensation, and shall be deemed removed
by automatic resignation from any and all such positions upon termination of his
employment.

                                  COMPENSATION

         BASIC COMPENSATION

                  SALARY.  Executive  will be paid an annual salary of $250,000,
subject to adjustment as provided below (the "Salary"), which will be payable in
equal periodic installments according to Employer's customary payroll practices,
but no less  frequently  than  monthly.  The Salary  and  Benefits  (i.e.  Basic
Compensation), and Bonus Compensation will be reviewed by the Board of Directors
not less frequently than annually.

                  3.1.2 BENEFITS.  Executive will, during the Employment Period,
be permitted  to  participate  in such  pension,  profit  sharing,  bonus,  life
insurance,  hospitalization,  major medical, and other employee benefit plans of
Employer  that may be in effect from time to time,  to the extent  Executive  is
eligible under the terms of those plans (collectively, the "Benefits").

         BONUS COMPENSATION

         Effective  with this  Agreement,  Employer  shall grant  Executive  two
million  (2,000,000)  stock  options  for its  Stock,  with  vesting  subject to
Executive's  employment with Employer and the conditions  precedent (stock price
milestones) set forth in the vesting schedule  attached hereto as Exhibit A. For
each stock price milestone to be satisfied,  the underlying  closing stock price
must average the goal price for a twenty (20) day trailing  trading period.  All
such  options,  once vested,  must be exercised,  if at all, in accordance  with
Employer's stock plan,  including all deadlines for any such exercise,  with the
exception  that if  Executive's  employment  with Employer is terminated for any
reason other than "Cause for Employer" then Executive shall have a period of six
(6) months  following  Executive's  termination of employment to exercise vested
options  eligible for  exercise.  If all two million  (2,000,000)  stock options
granted  pursuant to this  Section vest before  December  31,  2009,  Employer's
Compensation  Committee  shall meet for purposes of  determining  an  additional

                                       3
<PAGE>

stock option grant for  Executive,  guided by then existing  stock option grants
for chief executive officers of similarly situated  companies,  overall Employer
performance,  and future economic prognosis. The maximum value of any such stock
option grant shall not exceed the maximum  realized  and/or  potential  economic
value of the two million  (2,000,000) options previously granted, as of the date
of the  grant  of the last  tier of eight  hundred  thousand  (800,000)  options
referenced  in  Exhibit  A. In the event of a Change in  Control  as  defined in
Section 6.3.6, remaining unvested options granted to Executive shall immediately
vest,  provided that such immediate vesting shall be limited to a maximum of one
million (1,000,000) options.

                             FACILITIES AND EXPENSES
         GENERAL

         Employer will furnish Executive office space, equipment,  supplies, and
such other  facilities and personnel as Employer deems  necessary or appropriate
for the performance of Executive's  duties under this  Agreement.  Employer will
pay on behalf of Executive  (or reimburse  Executive  for)  reasonable  expenses
incurred  by  Executive  at the  request  of, or on behalf of,  Employer  in the
performance of Executive's duties pursuant to this Agreement,  and in accordance
with  Employer's  policies.  Executive must file expense reports with respect to
such expenses in accordance with Employer's policies.

         BUSINESS EXPENSES

         Employer shall  reimburse  Executive for all  reasonable,  ordinary and
necessary  business  expenses  incurred by Executive in the  performance  of his
duties and the promotion of the Employer's business.

         CELLULAR PHONE

         Employer  will pay for and  provide  Executive  with a cellular  phone,
phone service and wireless  connectivity device for business use if so requested
by the Executive.

                             VACATIONS AND HOLIDAYS

         Executive will be entitled to vacation each calendar year in accordance
with the vacation  policies of Employer in effect for its employee officers from
time to time,  in any  event  not less  than  four (4)  weeks  vacation  a year.
Vacation  must be taken by  Executive  at such time or times as  approved by the
Board of  Directors.  Executive  will also be entitled to the paid  holidays set
forth in Employer's  policies.  Vacation  days and holidays  during any calendar
year that are not used by Executive during such calendar year may not be used in
any subsequent calendar year without Employer's prior written consent.

                                       4
<PAGE>

                                   TERMINATION

         EVENTS OF TERMINATION

         This Agreement, the Employment Period,  Executive's Salary and Benefits
and any and all other rights of Executive  under this  Agreement or otherwise as
an employee of Employer  will  terminate  (except as otherwise  provided in this
Section 6) on the earliest of:

                  the death or Permanent Disability of Executive;

                  written notice by Executive;

                  written notice by Employer; or

                  For Cause (as defined in Section 6.2), immediately upon notice
from Employer to Executive, or Executive to Employer, as applicable.

         DEFINITION OF "FOR CAUSE"

         For purposes of Section 6.2, "Cause for Employer" shall mean any of the
following:  (i) Executive's  theft,  dishonesty,  or falsification of Employer's
documents  or  records;  (ii)  Executive's  participation  in a fraud  or act of
dishonesty  against  Employer;  (iii) any action taken in bad faith by Executive
which has a  detrimental  effect on  Employer's  reputation  or  business;  (iv)
Executive's  willful  failure or  inability to perform any  reasonable  assigned
duties that is not remedied by Executive  within forty five (45) days of written
notice of such failure or inability from Employer;  (v)  Executive's  unremedied
material breach of this Agreement after receipt of the written notice  discussed
above,  or any  violation of  Employer's  written  policies  constituting  gross
intentional  misconduct adversely and demonstrably affecting Employer's business
or reputation; (vi) Executive's conviction (including any plea of guilty or NOLO
CONTENDERE) of any felony or crime involving  dishonesty,  moral  turpitude,  or
theft;  (vii) material  failure by Executive to comply with  applicable  laws or
governmental   regulations   with  respect  to  Employer's   operations  or  the
performance of Executive's  duties;  or (viii) any  intentional  act of unlawful
sexual or other  harassment in violation of Title VII of the Civil Rights Act of
1964 (as amended) or analogous state law.

         For purposes of Section 6.2,  "Cause for Executive"  shall mean any one
of the  following  events  which occurs  without  Executive's  consent:  (i) any
reduction of Executive's then existing  compensation or benefits,  except to the
extent that such  compensation  of all other  senior  executives  of Employer is
equally   reduced;   (ii)  any  material   diminution  of  Executive's   duties,
responsibilities,  authority,  reporting  structure,  titles or offices provided
Executive  gives Employer  written notice of such material  diminution and it is
not remedied by Employer  within forty five (45) days of receipt of such notice;
(iii) any material  breach by Employer of its  obligations  under this Agreement
that is not remedied by Employer  within forty five (45) days of written  notice
of such  breach from  Executive;  (iv)  another  entity or person  becoming  the
majority owner through a hostile takeover of Employer;  (v) a slate of directors
is elected,  a majority of which were not recommended by the existing  directors
and management prior to the vote; or (vi) any request that Executive relocate to
a work site that would increase  Executive's  one-way  commute  distance by more
than fifty (50) miles from Executive's then principal residence.

                                       5
<PAGE>

         For  purposes of Section  6.2,  "Permanent  Disability"  shall mean the
incapacity  or  inability  of  Executive  to  perform  substantially  all of his
required duties, in the reasonable  opinion of a qualified  physician  (mutually
acceptable to Executive and Employer),  for a period of ninety (90)  consecutive
days,  due to a physical or mental  illness or  incapacity,  and such  qualified
physician reasonably  determines that it is unlikely that Executive will be able
to return to full  performance  of  Executive's  duties  within thirty (30) days
thereafter.

         TERMINATION PAY

         Effective  upon the  termination  of this  Agreement,  Employer will be
obligated to pay Executive only such compensation as is provided in this Section
6.3, and in lieu of all other amounts and in settlement and complete  release of
all claims Executive may have against Employer.

                  6.3.1  TERMINATION  BY EMPLOYER  FOR CAUSE OR  TERMINATION  BY
EXECUTIVE OTHER THAN FOR CAUSE. If Employer terminates this Agreement for Cause,
or Executive  terminates this Agreement other than for Cause,  Executive will be
entitled  to receive  his  Salary  only  through  the date such  termination  is
effective.

                  6.3.2 TERMINATION UPON DEATH OR PERMANENT DISABILITY.  If this
Agreement is terminated  because of Executive's  death or permanent  disability,
Executive will be entitled to receive his Salary through the end of the calendar
month in which his death or  Permanent  Disability  termination  occurs,  plus a
Severance Benefit.

                  6.3.3  TERMINATION  BY  EMPLOYER  OTHER  THAN  FOR  CAUSE.  If
Employer  terminates  this  Agreement  other than for Cause,  Employer  will pay
Executive  his  Salary  through  the end of the  calendar  month in  which  such
termination  occurs.  Employer  will also pay the  Severance  Benefit,  provided
Executive  first signs a full waiver and release of claims against  Employer and
its directors, officers, employees, and affiliates.

                  6.3.4  TERMINATION  BY EXECUTIVE  FOR CAUSE.  If the Executive
terminates this Agreement for Cause,  the Employer will pay Executive his Salary
through the end of the calendar month in which such termination occurs. Employer
will also pay the  Severance  Benefit,  provided  Executive  first  signs a full
waiver and  release of claims  against  Employer  and its  directors,  officers,
employees, and affiliates.

                  6.3.5 BENEFITS.  Executive's  accrual of, or  participation in
plans providing for benefits will cease at the effective date of the termination
of this Agreement,  and Executive will be entitled to accrued Benefits  pursuant
to such plans only as provided in such plans. Following Executive's termination,
Executive has the right to continue  coverage  under the Company's  group health
plans as provided by the Consolidated Omnibus Budget Reconciliation Act of 1985,
as amended  ("COBRA"),  provided the Executive  makes a timely election for such
continued  coverage.  Executive  agrees that the  continuation  of his  Benefits
pursuant to Section 1.11 and Section 6.3.3 or 6.3.4 of this Agreement  shall not
extend the maximum  coverage period  available  under COBRA,  and that Executive
must timely elect COBRA coverage in order for such group health plan coverage to
extend beyond the Severance Period.

                                       6
<PAGE>

                  6.3.6 CHANGE IN CONTROL.  If Executive  is  terminated  by the
Employer other than for Cause,  or terminates  this Agreement for Cause,  at any
time  within  one (1) year of a  Change  in  Control,  then  Executive  shall be
entitled to payment of the Severance Benefit,  unless Executive is entitled to a
greater  termination  payment under any other  agreement.  A "Change in Control"
shall mean as defined in Section  409A((a)(2)(A)(v) of the Internal Revenue Code
of 1986,  as amended,  and the  regulations  issued  thereunder.  In order to be
eligible to receive payment  pursuant to this Section,  Executive agrees that he
must  first sign a full  waiver and  release  of claims  against  Employer,  its
directors, officers, employees, and affiliates.

                  6.3.7 CODE SECTION 409A.  If any  provision of this  Agreement
(or of any  award of  compensation)  would  cause  the  Executive  to incur  any
additional  tax or interest  under  Section  409A of the  Internal  Revenue Code
("Code") or any regulations or Treasury  guidance  promulgated  thereunder,  the
Company shall,  after  consulting  with the Executive,  reform such provision to
comply with Code Section 409A; provided that the Company agrees to maintain,  to
the maximum extent practicable,  the original intent and economic benefit to the
Executive of the applicable  provision  without violating the provisions of Code
Section 409A.

Notwithstanding any provision of this Agreement to the contrary, if Executive is
deemed on the date of  termination  to be a  "specified  employee,"  within that
term's meaning under Code Section 409A(a)(2)(B), then with regard to any payment
or the provision of any benefit  required to be delayed in compliance  with Code
Section  409A(a)(2)(B),  such  payment or benefit  shall not be made or provided
(subject to the last sentence hereof) prior to the earlier of (i) the expiration
of the six (6) month period  measured from the date of  Executive's  "separation
from service" (as such term is defined in Treasury regulations issued under Code
Section 409A) or (ii) the date of his death (the  "Deferral  Period").  Upon the
expiration  of the  Deferral  Period,  all  payments  due  Executive  under this
Agreement that would have been paid during the Deferral  Period if Executive was
not a specified  employee  shall be paid in a lump sum within  thirty (30) days,
and any remaining  payments and benefits due under this Agreement  shall be paid
or provided in  accordance  with the normal  payment  dates  specified  for them
herein. Notwithstanding the foregoing, to the extent that this paragraph applies
to the provision of any ongoing  welfare  benefits to  Executive,  the Executive
shall  pay the full  cost of  premiums  for such  welfare  benefits  during  the
Deferral  Period and the Company  shall pay the Executive an amount equal to the
amount  of such  premiums  paid by the  Executive  during  the  Deferral  Period
promptly after its conclusion.

                             NON-DISCLOSURE COVENANT

         ACKNOWLEDGMENTS BY THE EXECUTIVE

         Executive  acknowledges  that (a) during the Employment Period and as a
part of his  employment,  Executive  will be  afforded  access  to  Confidential
Information;  (b) public disclosure of such Confidential  Information could have
an adverse  effect on Employer and its business;  and (c) the provisions of this
Section 7 are reasonable and necessary to prevent the improper use or disclosure
of Confidential Information.

                                       7
<PAGE>

         AGREEMENTS OF THE EXECUTIVE

         In  consideration  of the  compensation  and  benefits  to be  paid  or
provided to Executive by Employer under this Agreement,  Executive  covenants as
follows:

                  During and following the  Employment  Period,  Executive  will
hold in confidence the Confidential  Information and will not disclose it to any
person except with the specific  prior written  consent of Employer or except as
otherwise expressly permitted by the terms of this Agreement.

                  Any trade  secrets of Employer  will be entitled to all of the
protections and benefits under  Washington trade secret law, RCW 19.108 et seq.,
and any other  applicable  law. If any  information  that Employer deems to be a
trade  secret is found by a court of  competent  jurisdiction  not to be a trade
secret for purposes of this Agreement,  such information will, nevertheless,  be
considered  Confidential  Information for purposes of this Agreement.  Executive
hereby waives any  requirement  that Employer submit proof of the economic value
of any trade secret or post a bond or other security.

                  None of the foregoing  obligations and restrictions applies to
any part of the  Confidential  Information  that Executive  demonstrates  was or
became generally  available to the public other than as a result of a disclosure
by Executive.

                  Executive will not remove from Employer's  premises (except to
the extent such removal is for purposes of the performance of Executive's duties
at home or while traveling,  or except as otherwise  specifically  authorized by
Employer) any document,  record,  notebook,  plan, model, component,  device, or
computer  software  or code,  whether  embodied  in a disk or in any other  form
(collectively,  the "Proprietary Items").  Executive recognizes that, as between
Employer and Executive,  all of the Proprietary Items,  whether or not developed
by Executive,  are the exclusive property of Employer.  Upon termination of this
Agreement by either party, or upon the request of Employer during the Employment
Period,  Executive  will  return to  Employer  all of the  Proprietary  Items in
Executive's  possession or subject to Executive's  control,  and Executive shall
not retain any copies, abstracts,  sketches, or other physical embodiment of any
of the Proprietary Items.

         DISPUTES OR CONTROVERSIES

         Executive  recognizes that should a dispute or controversy arising from
or  relating to this  Agreement  be  submitted  for  adjudication  to any court,
arbitration  panel,  or other third party,  the  preservation  of the secrecy of
Confidential   Information  may  be  jeopardized.   All  pleadings,   documents,
testimony,  and records relating to any such  adjudication will be maintained in
secrecy and will be available for inspection by Employer,  Executive,  and their
respective  attorneys and experts, who will agree, in advance and in writing, to
receive and maintain all such  information in secrecy,  except as may be limited
by them in writing.

                                       8
<PAGE>

                      NON-COMPETITION AND NON-INTERFERENCE

         ACKNOWLEDGMENTS BY THE EXECUTIVE

         Executive  acknowledges  that:  (a) the services to be performed by him
under this  Agreement  are of a special,  unique,  unusual,  extraordinary,  and
intellectual character;  (b) Employer competes with other businesses that are or
could  be  located  in any part of the  world;  and (c) the  provisions  of this
Section 8 are reasonable and necessary to protect Employer's business.

         Executive  acknowledges that the products or activities and services of
the  Employer  include,  but are not limited to, the  acquisition,  assemblence,
marketing and sales of Employer's products and services,  including industry web
site development and hosting,  rate and fee content information from lenders for
mortgage brokers,  and Internet-based  technology solutions for mortgage brokers
and lenders.  Executive further acknowledges that the products,  activities, and
services of the Employer may expand during  Executive's term of employment,  and
that the  provisions  of this Section 8 apply to all products,  activities,  and
services of Employer in effect at the time of Executive's termination.

         COVENANTS OF THE EXECUTIVE

         In  consideration  of  the   acknowledgments   by  Executive,   and  in
consideration  of the  compensation  and  benefits  to be  paid or  provided  to
Executive  by  Employer,  Executive  covenants  that he will  not,  directly  or
indirectly:

                  During  the  Employment  Period,  except in the  course of his
employment  hereunder,  engage or invest  in,  own,  manage,  operate,  finance,
control, or participate in the ownership,  management,  operation, financing, or
control of, be employed by,  associated  with, or in any manner  connected with,
lend  Executive's  name or any similar  name to, lend  Executive's  credit to or
render services or advice to, any business whose products or activities  compete
in whole or in part with the products or activities of Employer  anywhere within
the United States;  provided,  however, that Executive may purchase or otherwise
acquire up to (but not more than) one percent of any class of  securities of any
enterprise  (but  without  otherwise  participating  in the  activities  of such
enterprise) if such securities are listed on any national or regional securities
exchange or have been registered under Section 12(g) of the Securities  Exchange
Act of 1934;

                  Whether for  Executive's own account or for the account of any
other person, at any time during the Employment  Period and the  Post-Employment
Period,  solicit  business  of the same or  similar  type  being  carried  on by
Employer,  from any person  known by  Executive  to be a customer  of  Employer,
whether or not  Executive  had personal  contact with such person  during and by
reason of Executive's employment with Employer;

                  Whether  for  Executive's  own  account or the  account of any
other   person  (a)  at  any  time   during  the   Employment   Period  and  the
Post-Employment  Period,  solicit,  employ,  or otherwise engage as an employee,
independent contractor,  or otherwise, any person who is an employee of Employer
or in any  manner  induce or  attempt  to induce any  employee  of  Employer  to
terminate his employment with Employer; or (b) at any time during the Employment
Period and the Post Employment  Period,  interfere with Employer's  relationship

                                       9
<PAGE>

with any  person,  including  any person who at any time  during the  Employment
Period was an employee, contractor, supplier, or customer of Employer; or

                  At any time during or after the Employment  Period,  disparage
Employer or any of its shareholders, directors, officers, employees, or agents.

         For purposes of this Section  8.2,  the term  "Post-Employment  Period"
means  the six  (6)  month  period  beginning  on the  date  of  termination  of
Executive's employment with Employer.

         If any  covenant  in  this  Section  8.2 is  held  to be  unreasonable,
arbitrary,  or against  public  policy,  such  covenant will be considered to be
divisible  with respect to scope,  time,  and  geographic  area, and such lesser
scope,  time,  or  geographic  area,  or all of them,  as a court  of  competent
jurisdiction  may determine to be  reasonable,  not  arbitrary,  and not against
public policy, will be effective, binding, and enforceable against Executive.

         The period of time  applicable to any covenant in this Section 8.2 will
be extended by the duration of any violation by Executive of such covenant.

         Executive will, while the covenant under this Section 8.2 is in effect,
give  notice  to  Employer,  within  ten (10)  days  after  accepting  any other
employment,  of the identity of Executive's  employer.  Employer may notify such
employer that Executive is bound by this Agreement and, at Employer's  election,
furnish  such  employer  with a copy  of this  Agreement  or  relevant  portions
thereof.

                               GENERAL PROVISIONS

         INJUNCTIVE RELIEF AND ADDITIONAL REMEDY

         Executive  acknowledges  that the  injury  that  would be  suffered  by
Employer as a result of a breach of the provisions of this Agreement  (including
any  provision  of Sections 7 and 8) would be  irreparable  and that an award of
monetary  damages to Employer for such a breach would be an  inadequate  remedy.
Consequently,  Employer will have the right,  in addition to any other rights it
may have,  to obtain  injunctive  relief to  restrain  any breach or  threatened
breach or otherwise to  specifically  enforce any  provision of this  Agreement.
Without limiting Employer's rights under this Section 9 or any other remedies of
Employer,  if  Executive  breaches  any of the  provisions  of  Section  7 or 8,
Employer  will have the right to cease  making  any  payments  otherwise  due to
Executive under this Agreement.

         COVENANTS OF SECTIONS 7 AND 8 ARE ESSENTIAL AND INDEPENDENT COVENANTS

         The covenants by Executive in Sections 7 and 8 are  essential  elements
of this  Agreement,  and  without  Executive's  agreement  to  comply  with such
covenants,  Employer  would not have  entered  into this  Agreement  or employed
Executive.  Executive  has  independently  consulted  his  counsel  and has been
advised in all respects  concerning  the  reasonableness  and  propriety of such
covenants,  with  specific  regard to the nature of the  business  conducted  by
Employer.

                                       10
<PAGE>

         Executive's covenants in Sections 7 and 8 are independent covenants and
the existence of any claim by Executive against Employer under this Agreement or
otherwise, will not excuse Executive's breach of any covenant in Section 7 or 8.

         If Executive's  employment  hereunder  expires or is  terminated,  this
Agreement  will continue in full force and effect as is necessary or appropriate
to enforce the covenants and agreements of Executive in Sections 7 and 8.

         REPRESENTATIONS AND WARRANTIES BY THE EXECUTIVE

         Executive  represents  and warrants to Employer  that the execution and
delivery by Executive of this Agreement do not, and the performance by Executive
of  Executive's  obligations  hereunder  will not, with or without the giving of
notice  or the  passage  of time,  or both:  (a)  violate  any  judgment,  writ,
injunction, or order of any court, arbitrator, or governmental agency applicable
to Executive; or (b) conflict with, result in the breach of any provisions of or
the  termination  of, or  constitute  a default  under,  any  agreement to which
Executive is a party or by which Executive is or may be bound.

         OBLIGATIONS CONTINGENT ON PERFORMANCE

         The obligations of Employer hereunder,  including its obligation to pay
the   compensation   provided  for  herein,   are  contingent  upon  Executive's
performance of Executive's obligations hereunder.

         WAIVER

         The rights and remedies of the parties to this Agreement are cumulative
and not  alternative.  Neither  the  failure  nor any delay by  either  party in
exercising any right, power, or privilege under this Agreement will operate as a
waiver of such right, power, or privilege,  and no single or partial exercise of
any such right,  power, or privilege will preclude any other or further exercise
of such right, power, or privilege or the exercise of any other right, power, or
privilege.  To the maximum extent  permitted by applicable  law, (a) no claim or
right arising out of this Agreement can be discharged by one party,  in whole or
in part,  by a waiver or  renunciation  of the claim or right  unless in writing
signed by the other  party;  (b) no waiver  that may be given by a party will be
applicable  except in the specific  instance  for which it is given;  and (c) no
notice to or demand on one party will be deemed to be a waiver of any obligation
of such party or of the right of the party  giving such notice or demand to take
further action without notice or demand as provided in this Agreement.

         BINDING EFFECT; DELEGATION OF DUTIES PROHIBITED

         This  Agreement  shall  inure to the  benefit  of, and shall be binding
upon, the parties hereto and their respective  successors,  assigns,  heirs, and
legal  representatives,  including  any entity with which  Employer may merge or
consolidate  or to  which  all  or  substantially  all  of  its  assets  may  be
transferred.  The duties and covenants of Executive under this Agreement,  being
personal, may not be delegated.

                                       11
<PAGE>

         NOTICES

         All notices,  consents,  waivers,  and other  communications under this
Agreement must be in writing and will be deemed to have been duly given when (a)
delivered by hand (with written confirmation of receipt),  (b) sent by facsimile
(with  written  confirmation  of  receipt),  provided  that a copy is  mailed by
registered  mail,  return  receipt  requested,  or  (c)  when  received  by  the
addressee,  if  sent  by a  nationally  recognized  overnight  delivery  service
(receipt  requested),  in each case to the  appropriate  addresses and facsimile
numbers set forth below (or to such other  addresses and facsimile  numbers as a
party may designate by notice to the other parties):

         If to Executive:

         Randall D. Miles
         751 20th Av E
         Seattle, WA 9811
         Telephone No.: (206) 322- 5240

or to such  other  addresses  and  faxes as the  parties  may from  time to time
designate in writing.

         If to Employer:

         Board of Directors
         LION, Inc.
         4700-42nd Ave. SW, Suite 430
         Seattle, WA 98116
         Telephone No.: (206) 577-1440

or to such other  addresses and telephone  numbers as the Employer may from time
to time designate in writing.

         ENTIRE AGREEMENT; AMENDMENTS

         This Agreement  contains the entire agreement  between the parties with
respect to the subject  matter hereof and  supersedes  all prior  agreements and
understandings,  oral or written, between the parties hereto with respect to the
subject  matter hereof,  provided,  however,  that any prior or  contemporaneous
agreements   between  the  parties  concerning   confidentiality,   intellectual
property, inventions,  non-competition,  and/or non-solicitation shall remain in
full force and effect if and to the extent that they provide greater  protection
to Employer.  This Agreement may not be amended orally, but only by an agreement
in writing signed by the parties hereto.

         ARBITRATION

         Except  when  injunctive  relief is sought  pursuant  to  Section  9.1,
Employer  and   Executive   shall  settle  any  and  all  claims,   disputes  or
controversies   arising  out  of  or  relating  to  Executive's   candidacy  for
employment, employment and/or cessation of employment with Employer, exclusively
by final and binding arbitration before a single neutral Arbitrator. Such claims
include claims under federal,  state and local statutory or common law; wrongful

                                       12
<PAGE>

termination;  claims for wages, including,  but not limited to, claims under the
Fair  Labor  Standards  Act,   Washington  Minimum  Wage  Act,  or  other  state
equivalent;  breach of public policy;  claims of  discrimination  or harassment,
including, but not limited to, claims under the Age Discrimination in Employment
Act,  Title VII of the Civil  Rights Act of 1964,  the Civil Rights Act of 1991,
the Americans with Disabilities Act, the Washington Law Against  Discrimination,
and any other  state or local  discrimination  laws.  The  arbitration  shall be
submitted to the American Arbitration Association,  and it shall be conducted in
Seattle,  Washington  in  accordance  with  the  Commercial  Dispute  Resolution
Procedures then in effect.  Judgment upon the award rendered may be entered only
in King County Superior Court.

         GOVERNING LAW

         This  Agreement will be governed by the laws of the State of Washington
without regard to conflicts of laws principles.

         JURISDICTION

         Any action or proceeding  seeking to enforce any provision of, or based
on any right arising out of, this Agreement may be brought against either of the
parties in the courts of the State of  Washington,  County of King,  and each of
the parties  consents to the jurisdiction of such courts (and of the appropriate
appellate  courts) in any such action or proceeding  and waives any objection to
venue  laid  therein.  Process in any action or  proceeding  referred  to in the
preceding sentence may be served on either party anywhere in the world.

         SECTION HEADINGS, CONSTRUCTION

         The headings of Sections in this Agreement are provided for convenience
only and will not affect its construction or  interpretation.  All references to
"Section" or "Sections" refer to the  corresponding  Section or Sections of this
Agreement unless otherwise  specified.  All words used in this Agreement will be
construed to be of such gender or number as the  circumstances  require.  Unless
otherwise expressly provided,  the word "including" does not limit the preceding
words or terms.

         SEVERABILITY

         If any provision of this Agreement is held invalid or  unenforceable by
any court of competent jurisdiction, the other provisions of this Agreement will
remain in full force and effect. Any provision of this Agreement held invalid or
unenforceable only in part or degree will remain in full force and effect to the
extent not held invalid or unenforceable.

                                       13
<PAGE>

         DRAFTSMANSHIP

         There shall be no presumption of  draftsmanship  in the  preparation or
execution of this Agreement.

         COUNTERPARTS

         This  Agreement  may be executed in one or more  counterparts,  each of
which will be deemed to be an original copy of this  Agreement and all of which,
when taken together, will be deemed to constitute one and the same agreement.

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

EMPLOYER:                                EXECUTIVE:

--------------------------------------   ---------------------------------------
Griffith J. Straw,                       Randall D. Miles
Director, Chairman of
Compensation Committee

                                       14
<PAGE>

                                    EXHIBIT A
                         (STOCK OPTION VESTING SCHEDULE)

                                                             Vesting
    Option Vesting Schedule              Shares              Trigger
-------------------------------    -----------------     ----------------

                                     200,000             $        0.40
                                     400,000             $        0.50
                                     600,000             $        0.65
                                     800,000             $        0.80
                                   ---------------

 Total Option Grant                  2,000,000
                                   ===============

                                       15

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00114-of-00352.parquet"}]]