Document:

<PAGE>

                              CONVERSION AGREEMENT

          CONVERSION AGREEMENT, dated as of December 19, 2003 (this
"Agreement"), by and among ATX Communications, Inc., a Delaware corporation (the
"Company"), and Leucadia National Corporation or one of its affiliates
("LEUCADIA").

                                 R E C I T A L S

          WHEREAS, LEUCADIA has acquired from the original lenders party to that
certain Credit Agreement dated as of September 28, 2000, as amended and restated
as of April 11, 2001, and amended by the First Amendment dated as of October 31,
2001, the Second Amendment dated as of December 14, 2001, the Third Amendment
dated as of March 29, 2002 and the Fourth Amendment dated as of March 31, 2003
(as further amended, restated or otherwise supplemented from time to time, the
"Credit Agreement") all of the entire principal amount then outstanding under
the Credit Agreement together with any and all accrued interest, costs,
expenses, penalties, fees thereon or related thereto and any and all obligations
arising thereunder, including, but not limited to, any and all liquidated,
liquidating or unliquidated claims in connection therewith (the "Senior
Indebtedness") pursuant to that certain Purchase Agreement dated as of
December 19, 2003, by and among CoreComm Communications, Inc., LEUCADIA and JP
Morgan Chase Bank, America Online, Inc., Goldman Sachs Credit Partners L.P. and
Morgan Stanley Senior Funding Inc. as the original lenders thereunder (the
"Indebtedness Acquisition Agreement"); and

          WHEREAS, the Company and LEUCADIA have amended the Credit Agreement in
substantially the form attached as Annex A hereto; and

          WHEREAS, LEUCADIA has agreed to convert the Senior Indebtedness upon
the satisfaction of certain conditions set forth herein into 100% of the
preferred stock and the common stock of the reorganized company ("Newco"),
subject to future dilution by incentive warrants to be granted to members of
senior management; and

          WHEREAS, the Company and LEUCADIA desire to enter into this Agreement
to set forth certain matters relating to such conversion.

          NOW, THEREFORE, in consideration of the mutual covenants and
agreements herein contained, the parties hereto hereby agree as follows:

                                   ARTICLE I.

                                   CONVERSION

          Section 1.1. Conversion of Notes into Shares. Upon the terms and
conditions set forth herein, and in consideration of and in express reliance
upon such terms and conditions and the representations, warranties and covenants
of this Agreement, the Senior Indebtedness shall, upon the satisfaction of the
conditions set forth in Exhibit A hereto (the "Conversion Criteria"), including
confirmation and consummation of a joint plan of reorganization for the Loan
Parties that is mutually acceptable to the Loan Parties and LEUCADIA and
contains the terms set forth in Exhibit B (the "Joint Plan"), be converted into
100% of 10% Preferred Stock (the "Preferred

<PAGE>

Stock") of Newco and 100% of the common stock (the "Common Stock") of Newco
(collectively, the "Shares"). The Preferred Stock will have a liquidation
preference of $25,000,000, will accrue accumulated dividends at the rate of 10%
per annum, and will contain other standard provisions for simple non-convertible
non-participating preferred stock with only a "one-times" liquidation
preference. Any dividends not paid in cash shall accumulate. Upon the
Conversion, Newco shall deliver certificates representing 100% of the Preferred
Stock and the Common Stock to LEUCADIA and all of the Company's existing equity
interests shall be terminated. As a consequence of the Conversion, the Senior
Indebtedness shall be cancelled and LEUCADIA shall have no further rights as a
creditor based on the Senior Indebtedness, and the Company and any other
obligors under the Credit Agreement shall have no further obligations, with
respect to the Senior Indebtedness. Notwithstanding anything contained herein to
the contrary, LEUCADIA and the Company reserve the right to consummate the
Conversion outside of bankruptcy in the event LEUCADIA reasonably deems it
appropriate to do so.

          Section 1.2. Effective Date and Termination Date. The Conversion shall
be effective upon satisfaction of the Conversion Criteria and the satisfaction
or waiver by the parties hereto of the conditions set forth in Article IV (such
date is referred to herein as the "Effective Date"). This Agreement shall
terminate on the earlier of the following dates (the "Termination Date"), unless
LEUCADIA consents to an extension of this Agreement in writing: (a) when any of
the Loan Parties breach any of the material representations, warranties or
covenants in this Agreement or a Default or Event of Default under the Credit
Agreement, other than an "Disclosed Acknowledged Default" (as defined in the
Fifth Amendment), occurs and LEUCADIA gives the Company notice of that event
within thirty (30) days of learning of such event, or (b) June 30, 2004.

                                  ARTICLE II.

                         REPRESENTATIONS AND WARRANTIES

          Section 2.1. Representations and Warranties of the Company. The
Company hereby represents and warrants to LEUCADIA, as of the date hereof, as
follows:

          (a) Financial Information. Except as otherwise disclosed to LEUCADIA
prior to the date hereof, the financial information that the Company has
provided to LEUCADIA, including without limitation the Company's audited
financial statements for the calendar year ending December 31, 2002, the
Company's 2002 Annual Report on Form 10-K, and each of the Company's 2003
Quarterly Reports on Form 10-Q filed to date, are free from any material
inaccuracies or omissions.

          (b) Organization, Good Standing and Power. The Company is a
corporation duly incorporated, validly existing and in good standing under the
laws of the State of Delaware and has the requisite power to own, lease and
operate its properties and assets and to conduct its business as it is now being
conducted. The Company is duly qualified as a foreign corporation to do business
and is in good standing in every jurisdiction in which the nature of the
business conducted or property owned by it makes such qualification necessary
except for any jurisdictions (alone or in the aggregate) in which the failure to
be so qualified will not have a Material Adverse Effect. For the purposes of
this Agreement, "Material Adverse Effect" means

                                       2
<PAGE>

any condition, circumstance, or situation that would prohibit or hinder the
Company from executing this Agreement and/or performing any of its obligations
hereunder or thereunder in any material respect.

          (c) Authorization; Enforcement. Subject to all applicable regulatory
consents, the Company has the requisite power and authority to enter into and
perform this Agreement and to consummate the Conversion. The execution, delivery
and performance of this Agreement by the Company have been duly and validly
authorized by all necessary corporate action, and no further consent or
authorization is required for the Company to effect the transactions
contemplated hereby. When executed and delivered by the Company, this Agreement
shall constitute a valid and binding obligation of the Company, enforceable
against the Company in accordance with its terms, except as such enforceability
may be limited by applicable bankruptcy, reorganization, moratorium,
liquidation, conservatorship, receivership or similar laws relating to, or
affecting generally the enforcement of, creditor's rights and remedies or by
other equitable principles of general application.

          (d) Issuance of Shares. The Shares have been duly authorized by all
necessary corporate action and, when issued in accordance with the terms hereof
upon the Conversion, the Shares shall be validly issued and outstanding, fully
paid and non-assessable.

          (e) No Conflicts. Subject to all applicable regulatory consents, the
execution, delivery and performance of this Agreement by the Company and the
consummation by the Company of the transactions contemplated hereby does not and
will not (i) violate any provision of the Company's Certificate of Incorporation
or Bylaws, each as amended to date, (ii) conflict with, or constitute a default
(or an event which with notice or lapse of time or both would become a default)
under, or give to others any rights of termination, amendment, acceleration or
cancellation of, any agreement, mortgage, deed of trust, indenture, note, bond,
license, lease agreement, instrument or obligation to which the Company is a
party or by which any of the Company's properties or assets are bound, or (iii)
result in a violation of any federal, state, local or foreign statute, rule,
regulation, order, judgment or decree (including federal and state securities
laws and regulations) applicable to the Company or by which any property or
asset of the Company is bound or affected, except for such conflicts, defaults,
terminations, amendments, acceleration, cancellations and violations as would
not, individually or in the aggregate, have a Material Adverse Effect, other
than violations pursuant to clauses (i) or (iii) (with respect to federal and
state securities laws) above. The Company is not required under federal, state,
foreign or local law, rule or regulation to obtain any consent, authorization or
order of, or make any filing or registration with, any court or governmental
agency in order for it to execute, deliver or perform any of its obligations
under this Agreement or consummate the Conversion in accordance with the terms
hereof (other than any filings, consents and approvals which may be required to
be made by the Company under applicable state and federal securities laws, rules
or regulations, or the rules of the Nasdaq Over-the-Counter Bulletin Board (or
any other exchange on which the Shares may be quoted or listed for trading),
prior to or subsequent to the Effective Date).

          Section 2.2. Representations and Warranties of LEUCADIA. LEUCADIA
hereby represents and warrants to the Company, as of the date hereof and as of
the Effective Date, as follows:

                                       3
<PAGE>

          (a) Organization and Standing of LEUCADIA. LEUCADIA is a corporation
duly incorporated, existing and in good standing under the laws of the
jurisdiction of its incorporation.

          (b) Authorization and Power. Subject to all applicable regulatory
consents, LEUCADIA has the requisite power and authority to enter into and
perform this Agreement and to consummate the Conversion, including the authority
to vote or direct voting of claims relating to the Senior Indebtedness. The
execution, delivery and performance of this Agreement by LEUCADIA and the
consummation by it of the transactions contemplated hereby have been duly
authorized by all necessary corporate (or other organizational) action, and no
further consent or authorization is required for LEUCADIA to effect the
transactions contemplated hereby. When executed and delivered by LEUCADIA, this
Agreement shall constitute valid and binding obligations of LEUCADIA enforceable
against LEUCADIA in accordance with its terms, except as such enforceability may
be limited by applicable bankruptcy, insolvency, reorganization, moratorium,
liquidation, conservatorship, receivership or similar laws relating to, or
affecting generally the enforcement of, creditor's rights and remedies or by
other equitable principles of general application.

          (c) No Conflict. Subject to all applicable regulatory consents, the
execution, delivery and performance of this Agreement by LEUCADIA and the
consummation by LEUCADIA of the transactions contemplated hereby does not and
will not (i) violate any provision of LEUCADIA's charter or organizational
documents, (ii) conflict with, or constitute a default (or an event which with
notice or lapse of time or both would become a default) under, or give to others
any rights of termination, amendment, acceleration or cancellation of, any
agreement, mortgage, deed of trust, indenture, note, bond, license, lease
agreement, instrument or obligation to which LEUCADIA is a party or by which
LEUCADIA's properties or assets are bound, or (iii) result in a violation of any
federal, state, local or foreign statute, rule, regulation, order, judgment or
decree (including federal and state securities laws and regulations) applicable
to LEUCADIA or by which any property or asset of LEUCADIA is bound or affected,
except, in all cases, other than violations pursuant to clauses (i) or (iii)
(with respect to federal and state securities laws) above, except, for such
conflicts, defaults, terminations, amendments, acceleration, cancellations and
violations as would not, individually or in the aggregate, materially and
adversely affect LEUCADIA's ability to perform its obligations hereunder.

          (d) Acquisition for Investment. LEUCADIA is acquiring the Shares
solely for its own account for the purpose of investment and not with a view to
or for sale in connection with any distribution and LEUCADIA does not have a
present intention to sell any of the Shares, nor a present arrangement (whether
or not legally binding) or intention to effect any distribution of any of the
Shares, to or through any person or entity, except that LEUCADIA intends to
transfer approximately 5% of the common stock it receives to Joseph Nacchio.

          (e) Assessment of Risks. LEUCADIA acknowledges that it (i) has such
knowledge and experience in financial and business matters that LEUCADIA is
capable of evaluating the merits and risks of LEUCADIA's investment in the
Company (by virtue of its acquisition of Shares hereunder), (ii) is able to bear
the financial risks associated with an investment in the Shares and (iii) has
been given full access to such records of the Company and to the officers of the
Company as it has deemed necessary or appropriate to conduct its due diligence
investigation with respect to the Shares. LEUCADIA is, however, relying on the
express representations and

                                       4
<PAGE>

warranties of the Company and the other Loan Parties in this Agreement and the
Indebtedness Acquisition Agreement and Fifth Amendment, each of which is being
executed contemporaneously with this Agreement and nothing contained in any of
such agreements shall be deemed to be a waiver of the right to so rely.

          (f) No General Solicitation. LEUCADIA acknowledges that the Shares
were not offered to LEUCADIA by means of any form of general or public
solicitation or general advertising, or publicly disseminated advertisements or
sales literature, including (i) any advertisement, article, notice or other
communication published in any newspaper, magazine, or similar media or
broadcast over television or radio or (ii) any seminar or meeting to which
LEUCADIA was invited by any of the foregoing means of communications.

          (g) Accredited Investor. LEUCADIA is an "accredited investor" (as
defined in Rule 501 of Regulation D under the Securities Act of 1933, as
amended).

          (h) Certain Fees. LEUCADIA has not employed any broker or finder or
incurred any liability for any brokerage, investment banking, commission,
finders', structuring or financial advisory fees or other similar fees in
connection with this Agreement or the transactions contemplated hereby.

                                  ARTICLE III.

                        COVENANTS OF THE PARTIES; WAIVERS

          Section 3.1. Covenants. Until and unless this Agreement is terminated,
the parties hereto hereby covenant with each other as follows, which covenants,
as applicable, are for the benefit of such parties and their respective
permitted assigns:

          (a) Further Assurances. From and after the date hereof, upon the
request of LEUCADIA or the Company, the Company and LEUCADIA shall execute and
deliver such instruments, documents and other writings as may be reasonably
necessary or desirable to confirm and carry out and to effectuate fully the
intent and purposes of this Agreement.

          (b) Commercially Reasonable Efforts. Except as otherwise set forth in
Section 3.1(c), each party hereto will use commercially reasonable efforts to
take, or cause to be taken, all action, and to do, or cause to be done, all
things necessary, proper or advisable, consistent with applicable law, to
consummate and make effective in the most expeditious manner practicable the
transactions contemplated hereby, including without limitation, making all
required regulatory and other filings required by applicable law as promptly as
practicable after the date hereof.

          (c) Reasonable Best Efforts. Each party hereto will use its reasonable
best efforts to take, or cause to be taken, all action, and to do, or cause to
be done, all things necessary, proper or advisable, consistent with applicable
law, to settle, satisfy or agree upon, as applicable, each of the matters set
forth on Exhibit A hereto; provided, however, that LEUCADIA shall not be
required by this provision to consent to or allow the Loan Parties to make
settlement payments or settlement agreements with respect to any third party
claims, and LEUCADIA reserves the right

                                       5
<PAGE>

in its sole and absolute discretion to consent or not consent to the proposed
terms of any settlement or resolution of any such matter.

          Section 3.2. Delivery of Conversion Notice. The Company shall,
promptly following the satisfaction of the Conversion Criteria, give written
notice thereof, of the Conversion and the proposed effective date of the Joint
Plan, to LEUCADIA.

          Section 3.3. Waivers. LEUCADIA hereby agrees that its acceptance of
the Shares to be issued to it pursuant to this Agreement shall constitute full
satisfaction by the Company of its obligation to deliver shares of Common Stock
and Preferred Stock to LEUCADIA hereunder.

          Section 3.4. Bankruptcy. Subject to the terms hereof, the parties
intend to implement the terms of this Agreement through the filing of voluntary
chapter 11 petitions for relief by each of the Loan Parties and the submission
of the Joint Plan which shall contain the terms and provisions set forth in
Exhibit B hereto.

          (a) Pursuant to the Fifth Amendment, dated December 19, 2003, to the
Credit Agreement, dated as of September 28, 2000 (as amended and as may be
further amended, the "Credit Agreement"), the Loan Parties shall file their
chapter 11 petitions, the pleadings required to obtain bankruptcy court approval
of the use of cash collateral and the debtor in possession financing, the Joint
Plan and the Disclosure Statement (as defined in section 3.4(b)) on or before
February 2, 2004.

          (b) Although LEUCADIA commits to support the Joint Plan and it is
LEUCADIA's intention to vote in favor of the Joint Plan, this Agreement is not
and shall not be deemed to be a solicitation for consent to the Joint Plan. The
acceptance of LEUCADIA will not be solicited until LEUCADIA have received the
disclosure statement relating to the Joint Plan (the "Disclosure Statement") and
the related ballots in forms approved by the Bankruptcy Court.

          (c) LEUCADIA and the Loan Parties Commit that until the first to occur
of the Effective Date or the Termination Date, they shall:

                  (i) Use their best efforts to cause the Bankruptcy Court to
confirm the Joint Plan and to fulfill all conditions to the effective date of
the Joint Plan promptly;

                  (ii) not pursue, propose, support, vote to accept or
encourage the pursuit, proposal or support of, any chapter 11 plan, or other
restructuring or reorganization for the Company, directly or indirectly, in any
jurisdiction, that is not consistent with Exhibit B hereto and the Joint Plan;

                   (iii) not, nor encourage any other person or entity, to
interfere with, delay, impede, appeal or take any other negative action,
directly or indirectly, in any respect regarding acceptance or implementation of
the Joint Plan; and

                   (iv) not commence any proceeding, or prosecute any objection
to oppose or object to the Joint Plan or to the Disclosure Statement, and not to
take any action that would delay approval or confirmation, as applicable, of the
Disclosure Statement and the Joint Plan;

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<PAGE>

provided, however, that LEUCADIA may object to the Disclosure Statement solely
on the basis that it does not contain adequate information as required by
section 1125 of title 11 of the United States Code.

          (d) LEUCADIA acknowledges and agrees that, upon consummation of the
Joint Plan and subject to the terms of the Joint Plan, the distributions to and
treatment of LEUCADIA under the Joint Plan shall be in satisfaction of any and
all rights that it may have in respect of its claim and/or interest against the
Company, other than any claims arising under the debtor in possession financing
to be provided by LEUCADIA during the chapter 11 cases, and the Loan Parties
shall be released and discharged from any and all further obligations in respect
of such claims and/or interests. LEUCADIA shall provide senior secured exit
financing in an amount equal to $5,000,000, or such greater amount as the
parties mutually agree, on mutually acceptable and commercially reasonable
terms.

                                  ARTICLE IV.

                                   CONDITIONS

          Section 4.1. Conditions Precedent to the Obligation of the Company.
The obligation hereunder of the Company to effect the Conversion is subject to
the satisfaction or waiver, on or before the Effective Date, of the conditions
set forth below:

          (a) Accuracy of LEUCADIA's Representations and Warranties. Each of the
representations and warranties of LEUCADIA in this Agreement shall be true and
correct in all material respects as of the date when made and as of the
Effective Date as though made at that time, except for representations and
warranties that are expressly made as of a particular date, which shall be true
and correct in all material respects as of such date.

          (b) Performance by LEUCADIA. LEUCADIA shall have performed, satisfied
and complied in all material respects with all covenants, agreements and
conditions required by this Agreement to be performed, satisfied or complied
with by LEUCADIA on or prior to the Effective Date.

          (c) No Injunction, Statute or Rule. No statute, rule, regulation,
executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any court or governmental authority of competent
jurisdiction which prohibits the consummation of any of the transactions
contemplated by this Agreement.

          (d) Confirmation of Plan. The Joint Plan shall have been confirmed by
final order of the bankruptcy court and all conditions to the effectiveness of
the Joint Plan shall have been satisfied or waived.

          (e) Regulatory Approvals. All applicable federal and/or state
regulatory approvals necessary to effectuate the transaction have been obtained.

Notwithstanding satisfaction of the foregoing conditions, the obligations of the
Company are expressly subject to the exercise by the Company and its officers
and directors of their respective

                                       7
<PAGE>

fiduciary duties. The conditions set forth in this Section 4.1 are for the
Company's sole benefit and may be waived only by the Company at any time in its
sole discretion.

          Section 4.2. Conditions Precedent to the Obligation of LEUCADIA. The
obligation hereunder of LEUCADIA to effect the Conversion is subject to the
satisfaction or waiver, at or before the Effective Date, of each of the
conditions set forth below:

          (a) Conversion Criteria. Each of the Conversion Criteria shall have
been performed, satisfied or complied with by the applicable parties at or prior
to the Effective Date.

          (b) Accuracy of the Company's Representations and Warranties. Each of
the representations and warranties of the Company in this Agreement shall be
true and correct in all material respects as of the Effective Date, except for
representations and warranties that speak as of a particular date, which shall
be true and correct in all material respects as of such date.

          (c) Performance by the Company. The Company shall have performed,
satisfied and complied in all material respects with all covenants, agreements
and conditions required by this Agreement to be performed, satisfied or complied
with by the Company at or prior to the Effective Date.

          (d) Confirmation of Plan. The Joint Plan shall have been confirmed by
final order of the bankruptcy court and all conditions to the effectiveness of
the Joint Plan shall have been satisfied or waived prior to the Termination
Date.

          (e) No Injunction, Statute or Rule. No statute, rule, regulation,
executive order, decree, ruling or injunction shall have been enacted, entered,
promulgated or endorsed by any court or governmental authority of competent
jurisdiction which prohibits the consummation of any of the transactions
contemplated by this Agreement.

          (f) Regulatory Approvals. All applicable federal and/or state
regulatory approvals necessary to effectuate the transaction have been obtained.

The conditions set forth in this Section 4.2 are for LEUCADIA's sole benefit and
may be waived only by LEUCADIA at any time in its sole discretion.

                                   ARTICLE V.

                                  MISCELLANEOUS

          Section 5.1. Fees and Expenses. Each party hereto shall pay the fees
and expenses of its advisors, counsel, accountants and other experts, if any,
and all other expenses, incurred by such party incident to the negotiation,
preparation, execution, delivery and performance of this Agreement. LEUCADIA
may, however, recover its fees and expenses, including reasonable attorneys'
fees, in connection with the documentation and implementation of its debtor in
possession financing for the Loan Parties.

          Section 5.2. Entire Agreement; Amendment. This Agreement, the
Indebtedness Acquisition Agreement, the Credit Agreement, together with all
amendments to the Credit

                                       8
<PAGE>

Agreement, the debtor in possession loan documents, and the court orders
approving the debtor in possession loan and the Loan Parties' use of cash
collateral (collectively, the "Transaction Documents") contain the entire
understanding and agreement (written or oral) of the parties hereto with respect
to the subject matter hereof and, except as specifically set forth in the
Transaction Documents, neither the Company nor LEUCADIA makes any
representation, warranty, covenant or undertaking with respect to such matters,
and they supersede all prior understandings and agreements with respect to said
subject matter, all of which are merged herein. No provision of this Agreement
may be waived or amended other than by a written instrument signed by each party
hereto. Any amendment or waiver effected in accordance with this Section 5.2
shall be binding upon each such party and its permitted assigns.

          Section 5.3. Notices. Any notice, demand, request, waiver or other
communication required or permitted to be given hereunder shall be in writing
and shall be effective (a) upon hand delivery by telecopy or facsimile at the
address or number designated below (if delivered on a business day during normal
business hours where such notice is to be received), or the first business day
following such delivery (if delivered other than on a business day during normal
business hours where such notice is to be received) or (b) on the second
business day following the date of mailing by express courier service, fully
prepaid, addressed to such address, or upon actual receipt of such mailing,
whichever shall first occur. The addresses for such communications shall be:

If to the Company:                  ATX Communications, Inc.
                                    50 Monument Road
                                    Bala Cynwyd, Pennsylvania 19004(1)
                                    Attention: President and Chief Executive
                                               Officer

                                    Tel. No.: (610) 668-3000
                                    Fax No.:  (610) 668-6336

with copies (which copies
shall not constitute notice
to the Company) to:                 ATX Communications, Inc.
                                    50 Monument Road
                                    Bala Cynwyd, Pennsylvania 19004
                                    Attention: General Counsel

                                    Tel. No.: (610) 668-3000
                                    Fax No.:  (610) 668-6336

                                    Willkie Farr & Gallagher LLP
                                    787 Seventh Avenue
                                    New York, New York  10019
                                    Attention: Paul V. Shalhoub, Esq.

                                    Tel No.: (212) 728-8000
                                    Fax No.: (212) 728-8111

---------------
(1)  Revise for new HQ address when appropriate.

                                       9
<PAGE>

If to LEUCADIA:                     At the address of LEUCADIA set forth in
                                    the Credit Agreement.

with copies (which copies
shall not constitute notice
to the Company) to:                 Stutman, Treister & Glatt, P.C.
                                    1901 Avenue of the Stars, suite 1200
                                    Los Angeles, CA 90067
                                    Attention: Jeffrey C. Krause, Esq.

                                    Tel No.: (310) 228-5600
                                    Fax No.: (310) 228-5788

Any party hereto may from time to time change its address for notices by giving
written notice of such changed address to the other party hereto.

          Section 5.4. Waivers. No waiver by either party of any default or
event of default with respect to any provision, condition or requirement of this
Agreement shall be deemed to be a continuing waiver in the future or a waiver of
any other provision, condition or requirement hereof, nor shall any delay or
omission of any party to exercise any right hereunder in any manner impair the
exercise of any such right accruing to it thereafter.

          Section 5.5. Headings. The article, section and subsection headings in
this Agreement are for convenience only and shall not constitute a part of this
Agreement for any other purpose and shall not be deemed to limit or affect any
of the provisions hereof.

          Section 5.6. Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of the parties and their successors and assigns.
Neither party hereto may assign its rights or obligations under this Agreement
(by operation of law or otherwise) without the prior written consent of each
other party hereto, and any attempted assignment without such consent shall be
void ab initio.

          Section 5.7. No Third Party Beneficiaries. This Agreement is intended
for the benefit of the parties hereto and their respective permitted successors
and assigns and is not for the benefit of, nor may any provision hereof be
enforced by, any other person or entity.

          Section 5.8. Governing Law. This Agreement shall be governed by and
construed in accordance with the internal laws of the State of New York, without
giving effect to the choice of law provisions thereof. This Agreement shall not
be interpreted or construed with any presumption against the party causing this
Agreement to be drafted.

                                       10
<PAGE>

          Section 5.9. Counterparts. This Agreement may be executed in any
number of counterparts, all of which taken together shall constitute one and the
same instrument and shall become effective when counterparts have been signed by
each party and delivered to the other parties hereto, it being understood that
all parties need not sign the same counterpart. This Agreement may be delivered
by facsimile transmission of the signature pages hereof.

          Section 5.10. Severability. The provisions of this Agreement are
severable and, in the event that any court of competent jurisdiction shall
determine that any one or more of the provisions or part of the provisions
contained in this Agreement shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect any other provision or part of a provision of
this Agreement and this Agreement shall be reformed and construed as if such
invalid or illegal or unenforceable provision, or part of such provision, had
never been contained herein, so that such provisions would be valid, legal and
enforceable to the maximum extent possible.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                       11<PAGE>
                                                                    Exhibit 10.1

                         EXECUTIVE EMPLOYMENT AGREEMENT

         This Executive Employment Agreement (the "Agreement"), by and among
Nimbus Group, Inc., a Florida corporation ("Company") and Lucien Lallouz
("Employee"), is effective on the 1st Day of April, 2003.

                               A G R E E M E N T S

         In consideration of the mutual promises, terms, covenants and
conditions set forth herein and the performance of each, and for other good and
valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties, intending to be legally bound, hereby agree as
follows:

1.       EMPLOYMENT AND DUTIES.

         (a) Subject to the terms and conditions of this Agreement, the Company
hereby employs Employee as Chief Executive Officer of the Company. As such,
Employee shall have responsibilities, duties and authority reasonably accorded
to and expected of such position and will report directly to the Board. Employee
hereby accepts this employment upon the terms and conditions herein contained
and, subject to paragraph 1(b) hereof, agrees to devote Employee's full business
time, attention and efforts to promote and further the business of the Company.
Employee shall faithfully adhere to, execute and fulfill all policies
established by the Company.

         (b) Employee shall not, during the term of his employment hereunder, be
engaged in any other business activity pursued for gain, profit or other
pecuniary advantage if such activity interferes with Employee's duties and
responsibilities hereunder. The foregoing limitations shall not be construed as
prohibiting Employee from making personal investments in such form or manner as
will neither require Employee's services in the operation or affairs of the
companies or enterprises in which such investments are made nor violate the
terms of paragraph 3 hereof.

2.       TERM. The Company employs Employee for a period commencing the date
hereof and ending on the fifth anniversary of the date hereof (the "Term"),
subject to termination prior to such date pursuant to Section 6 hereof. Sixty
(60) days prior to the end of the Term (or any renewal term), either the Company
or Employee may give notice to the other of its determination not to renew this
Agreement. If a notice of non-renewal is not delivered, this Agreement will
automatically continue in effect for a successive two (2) year renewal term
subject to termination prior to such date pursuant to Section 5 hereof. If such
notice of non-renewal is given by any party, then Employee's employment will
terminate at the end of such term (or on such other date as the parties mutually
agree).

3.       COMPENSATION. For all services rendered by Employee, the Company shall
compensate Employee as follows:

         (a) BASE SALARY. The base salary payable hereunder to Employee shall
equal $280,000 per year, payable on a regular basis in accordance with the
Company's standard payroll procedures but not less than monthly. On at least an
annual basis, the Company's Board (the "Board"), together with the Compensation
Committee of the Company's Board, will review

<PAGE>

Employee's performance and may
make increases to such base salary if, in its discretion, any such increase is
warranted above the annual pay raise rate of 10%.

         (b) EXECUTIVE PERQUISITES, BENEFITS, AND OTHER COMPENSATION. Employee
shall be entitled to receive additional benefits and compensation from the
Company in such form and to such extent as specified below:

                  (i) Payment of all premiums for coverage for Employee under
health, hospitalization, disability, dental, life and other insurance plans that
the Company may have in effect from time to time. The benefits provided to
Employee under this clause (i) shall be at least equal to such benefits provided
to executives or employees in similar positions at the Company.

                  (ii) Reimbursement for all business travel and other
out-of-pocket expenses reasonably incurred by Employee in the performance of
Employee's services pursuant to this Agreement. All reimbursable expenses shall
be appropriately documented in reasonable detail by Employee upon submission of
any request for reimbursement, and in a format and manner consistent with the
Company's expense reporting policy.

                  (iii) The Company shall provide Employee with other executive
perquisites (including, but not limited to, participation in the Company's
Long-Term Incentive Plan) as may be available to or deemed appropriate for
Employee by the Board and participation in all other Company-wide employee
benefits as available from time to time. Employee shall be entitled to six weeks
of vacation per year in addition to all Federal and religious holidays.

4.       NON-COMPETITION AND NON-SOLICITATION.

         (a) Employee acknowledges that during the course of Employee's
employment Employee will receive confidential and proprietary information from
and concerning the Company. Employee also acknowledges that the Company will
make substantial investments in the development of the Company's goodwill and in
Employee's professional development. The capital expended to develop this
goodwill directly benefits Employee and should continue to do so in the event
that the relationship between the Company and Employee is terminated. Likewise,
the Company has conferred and will confer a direct economic benefit on Employee.
Employee agrees that the Company is entitled to protect these business interests
and investments and to prevent Employee from using or taking advantage of the
foregoing economic benefits to the Company's detriment.

         (b) Employee agrees that, except for services and duties performed for
or on behalf of the Company according to this Agreement, Employee will not,
during the period of Employee's employment with the Company, and for a period
(the "Restricted Period") of one (1) year immediately following the termination
of Employee's employment under this Agreement, for any reason whatsoever,
directly or indirectly, for himself or on behalf of or in conjunction with any
other person, persons, company, partnership, corporation, association,
enterprise, venture or business of whatever nature:

                  (i) engage, as an officer, director, shareholder, owner,
partner, joint venturer, lender or in a managerial capacity, whether as an
employee, independent contractor, agent, consultant or advisor or as a sales
representative, or similar business in direct competition with

                                       2
<PAGE>

those aspects of the business of the Company or any subsidiary of the Company,
with which Employee has had any involvement, within United States of America,
Canada and all other countries in which customers of the Company have access to
the world wide web (the "Territory");

                  (ii) solicit any person who is, at that time, or who has been
within one (1) year prior to that time, an employee of the Company for the
purpose or with the intent of enticing such employee away from or out of the
employ of the Company;

                  (iii) solicit any person or entity which is, at that time, or
which has been within one (1) year prior to that time, a customer, doctor,
service provider or supplier of the Company for the purpose of soliciting or
selling products or services in direct competition with those aspects of the
business of the Company or any subsidiary of the Company with which Employee has
had any involvement, within the Territory; or

                  (iv) solicit any prospective acquisition candidate, on
Employee's own behalf or on behalf of any competitor or potential competitor,
which candidate was, to Employee's knowledge, either called upon by the Company
or for which the Company made an acquisition analysis, for the purpose of
acquiring such entity. Notwithstanding the above, the foregoing covenant shall
not be deemed to prohibit Employee from acquiring as an investment not more than
two percent (2%) of the capital stock of a competing business, whose stock is
traded on a national securities exchange or over-the-counter.

         (c) In recognition of the substantial nature of such potential damages
and the difficulty of measuring economic losses to the Company as a result of a
breach of the foregoing covenants, and because of the immediate and irreparable
damage that could be caused to the Company for which they would have no other
adequate remedy, Employee agrees that in the event of breach by Employee of the
foregoing covenant, the Company shall be entitled to specific performance of
this provision and co-injunctive and other equitable relief.

         (d) It is agreed by the parties that the foregoing covenants in this
paragraph 4 impose a reasonable restraint on Employee in light of the activities
and business of the Company on the date of the execution of this Agreement and
the current plans of the Company and Employee that such covenants be construed
and enforced in accordance with the changing activities, business and locations
of the Company throughout the term of this Agreement, whether before or after
the date of termination of the employment of Employee.

         (e) All of the covenants in this paragraph 4 shall be construed as an
agreement independent of any other provision in this Agreement, and the
existence of any claim or cause of action of Employee against the Company,
whether predicated on this Agreement or otherwise, shall not constitute a
defense to the enforcement by the Company of such covenants. Further, this
paragraph 4 shall survive the termination of this Agreement and the termination
of Employee's employment with the Company. It is specifically agreed that the
period of one (1) year following termination of employment stated at the
beginning of this paragraph 4, during which the agreements and covenants of
Employee made in this paragraph 4 shall be effective, shall be computed by
excluding from such computation any time during which Employee is in violation
of any provision of this paragraph 4.

                                       3
<PAGE>

5.       TERMINATION; RIGHTS ON TERMINATION. This Agreement and Employee's
employment may be terminated for any one of the following causes:

         (a) DEATH. The death of Employee shall immediately terminate this
Agreement with no severance compensation due to Employee's estate, heirs or
other descendants or representatives.

         (b) DISABILITY. If, as a result of incapacity due to physical or mental
illness or injury, Employee shall have been absent from Employee's full-time
duties hereunder for four (4) consecutive months, then thirty (30) days after
receiving written notice (which notice may occur before or after the end of such
four (4) month period, but which shall not be effective earlier than the last
day of such four (4) month period), the Company may terminate Employee's
employment hereunder provided Employee is unable to resume Employee's full-time
duties at the conclusion of such notice period. Also, Employee may terminate
Employee's employment hereunder if his health should become impaired to an
extent that makes the continued performance of Employee's duties hereunder
hazardous to Employee's physical or mental health or life, provided that
Employee shall have furnished the Company with a written statement from a
qualified doctor to such effect and provided, further, that, at the Company's
request made within thirty (30) days of the date of such written statement,
Employee shall submit to an examination by a doctor selected by the Company who
is reasonably acceptable to Employee or Employee's doctor and such doctor shall
have concurred in the conclusion of Employee's doctor. In the event this
Agreement is terminated as a result of Employee's disability, Employee shall
receive from the Company Employee's base salary at the rate then in effect,
payable at the Company's regular and customary intervals for the payment of
salaries as then in effect, less any amounts Employee might receive under the
Company's disability insurance policy, if any, for whatever time period is
remaining under the Term.

         (c) CAUSE. The Company may, in its sole and absolute discretion,
terminate the employment of Employee hereunder immediately upon after delivery
of written notice to Employee, or at such later time as the Company may specify
in such notice, for "Cause." As used in this Agreement "Cause" includes, but is
not limited to, the following: (1) Employee's willful and material breach of
this Agreement; (2) Employee's gross negligence in the performance, or
intentional nonperformance, (continuing for ten (10) days after receipt of
written notice of need to cure) of any of Employee's material duties and
responsibilities hereunder; (3) Employee's willful dishonesty or fraud, whether
or not with respect to the business or affairs of the Company, which affects the
operations, property or reputation of the Company; (4) Employee's conviction of
a felony crime; (5) chronic alcohol or illegal drug abuse by Employee; (6)
Employee's willful injury to any independent contractor, employee or agent of
the Company, or to any other person in the course of Employee's performance of
services for the Company; or (7) If Employee sexually harasses any employee,
agent or contractor of the Company or commits any act which otherwise creates an
offensive work environment for employees, agents or contractors of the Company.

         The Company shall not be limited to termination as a remedy for any
damaging, injurious, improper or illegal act by Employee, but may also seek
damages, injunction, or such other remedy as the Company may deem appropriate
under the circumstances. If Employee's employment is terminated for Cause,
Employee agrees to vacate the Company's offices on or

                                       4
<PAGE>

before the effective date of the termination and to return and deliver to the
Company at such time all Company property. In the event of a termination for
Cause, as enumerated above, Employee shall have no right to any severance
compensation.

         (d) WITHOUT CAUSE. At any time after the commencement of employment,
provided the Company does not have Cause to terminate Employee pursuant to (c)
above, Employee may, without Cause, terminate this Agreement and Employee's
employment, effective ninety (90) days after written notice is provided to the
Company. Employee may only be terminated without Cause by the Company during the
Term hereof if such termination is approved by a majority of the members of the
Board. Should Employee be terminated by the Company without Cause during the
Term, Employee shall be entitled to receive from the Company two and a half
(2.5) year's base salary (at Employee's then current base) payable over the
course of the year following such termination. The severance compensation shall
be paid in accordance with the Company's standard payroll procedures but not
less than monthly. If Employee resigns or otherwise terminates Employee's
employment without cause pursuant to this paragraph 5(d), Employee shall receive
no severance compensation.

         (e) TERMINATION BY EXECUTIVE FOR GOOD REASON OR UPON CHANGE IN CONTROL.
Upon the termination of the Employee's employment hereunder by the Employee (i)
for "Good Reason", as specified in Section 5(e)(B) hereof, or (ii) within 360
days after the occurrence of a "Change in Control" as specified in Section
5(e)(A) hereof, the Company shall (i) continue to pay to the Employee the base
salary through the effective date of termination specified in such notice and
(ii) pay to the Employee, in a lump sum, an amount equal to 250% of the annual
base salary prevailing on the date of such termination. In addition, upon such
termination, all options to purchase shares of the Company's common stock, if
any, shall accelerate and become immediately exercisable.

                  (A) For purposes of this Agreement, a "Change in Control"
shall mean:

                           (i) The acquisition (other than by or from the
Company), at any time after the date hereof, by any person, entity or "group",
within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange
Act of 1934 (the "Exchange Act"), of beneficial ownership (within the meaning of
Rule 13d-3 promulgated under the Exchange Act) of 20% or more of either the then
outstanding shares of common stock or the combined voting power of the Company's
then outstanding voting securities entitled to vote generally in the election of
directors (together with such common stock, "Voting Securities"); or

                           (ii) Approval by the shareholders of the Company of
(x) a reorganization, merger or consolidation with respect to which persons who
were the shareholders of the Company immediately prior to such reorganization,
merger or consolidation do not, immediately thereafter, own more than 50% of the
combined voting power entitled to vote generally in the election of directors of
the reorganized, merged or consolidated company's then outstanding voting
securities, (y) a liquidation or dissolution of the Company or (z) the sale of
all or substantially all of the assets of the Company, unless the approved
reorganization, merger, consolidation, liquidation, dissolution or sale is
subsequently abandoned.

                  (B) For purposes of this Agreement, "Good Reason" shall mean:

                                       5
<PAGE>

                           (i) The assignment to the Employee of any duties
inconsistent in any respect with the Employee's position (including status,
offices, titles and reporting requirements), authority, duties or
responsibilities as contemplated by Section 1 of this Agreement, or any other
action by the Company which results in a diminution in such position, authority,
duties or responsibilities, excluding for this purpose an isolated,
insubstantial and inadvertent action not taken in bad faith and which is
remedied by the Company promptly after receipt of written notice thereof given
by the Employee;

                           (ii) Any failure by the Company to comply with any of
the provisions of Section 3 of this Agreement, other than an isolated,
insubstantial and inadvertent failure not occurring in bad faith;

                           (iii) The Company's requiring the Employee to be
based at any office or location other than the Company's offices in Aventura,
Florida, except for travel reasonably required in connection with the
performance of the Employee's responsibilities hereunder; or

                           (iv) Any purported termination by the Company of the
Employee's employment other than as expressly permitted by this Agreement.

         (f) Upon termination of this Agreement for any reason provided above,
Employee shall be entitled to receive all compensation earned and all benefits
and reimbursements due through the effective date of termination. Additional
compensation subsequent to termination, if any, will be due and payable to
Employee only to the extent and in the manner expressly provided above. All
other rights and obligations of the Company and Employee under this Agreement
shall cease as of the effective date of termination, except that the Company's
obligations under paragraph 10 hereof and Employee's obligations under
paragraphs 4, 8, 9 and 11 hereof shall survive such termination in accordance
with their terms. Further, unless Employee and the Company otherwise agree in
writing, upon termination of this Agreement for any reason, Employee will
immediately resign from all director, officer or other positions held with the
Company.

         (g) If termination of Employee's employment arises out of the Company's
failure to pay Employee the amounts to which he is entitled under this Agreement
or as a result of any other material breach of this Agreement by the Company, as
determined pursuant to the provisions of paragraph 16 below, the Company shall
pay all amounts and damages to which Employee may be entitled as a result of
such breach, including interest thereon and all reasonable legal fees and
expenses and other costs incurred by Employee to enforce Employee's rights
hereunder. Further, none of the provisions of paragraph 4 hereof shall apply in
the event this Agreement is terminated as a result of a material breach by the
Company.

6.       PARTICIPATION IN STOCK OPTION PLAN.

         As inducement the Employee shall be granted an option (the "Option") to
purchase 371,000 shares of the Company's Common Stock, par value $.001 per share
("Common Stock"), at an exercise price of $0.07 the fair market value of the
Company's common stock on April 1st, 2003. The Option may be exercised, in whole
or in part, after the signing of this Agreement.

                                       6
<PAGE>

The Option shall expire seven (7) years from the date hereof (the "Expiration
Date"), and must be exercised, if at all, in whole or in part, on or before the
Expiration Date. The Option Agreement will be in substantially the form of
Exhibit A attached hereto.

7.       PURCHASE RIGHT ON EMPLOYEE'S STOCK AND OPTIONS.

         (a) Irrevocable Option to Purchase. Upon (i) the death or Retirement of
Employee, (ii) the Company's termination of Employee's employment with the
Company by reason of Employee's Disability pursuant to the provisions of
paragraph 5(b) (a "Disability Termination") or for any other reason except a
termination for Cause pursuant to the provisions of paragraph 5(c) (a "Non-Cause
Termination"), or (iii) the termination of Employee's employment with the
Company by Employee for any reason other than a termination which follows less
than six months service to the Company or is effected upon less than 90 days'
prior written notice to the Company of such termination (hereinafter, a "Proper
Employee Termination"), then the Company shall have the exclusive and
irrevocable right and option, exercisable in the sole judgment and discretion of
the Board, to purchase and acquire from Employee, or from Employee's Estate, all
of Employee's shares of Company capital stock ("Stock") (if any) and all of
Employee's options or rights to purchase Stock ("Options") (if any) in
accordance with the terms and conditions provided in this paragraph 7. Employee
or Employee's Estate hereby irrevocably and unconditionally agrees to transfer
Employee's Stock and Employee's Options on the terms and conditions set forth in
this paragraph 7.

         (b) Purchase Price. The purchase price to be paid for any Stock to be
acquired under this paragraph 7 shall be the fair market value of such Stock to
be determined as the average closing price of the last 21 trading days
immediately preceding the date of death or termination of employment as
described in paragraph 7(a) hereof. The purchase price to be paid for Employee's
Options to be acquired under this paragraph 7 shall be the fair market value of
the Stock for which Employee's Options are exercisable (the "Vested Options" as
of the last day of the calendar month immediately preceding the date of death or
termination of employment as described paragraph 7(a) hereof), less an amount
equal to the exercise price of Employee's Options in respect of such Stock.Upon
termination of Employee for Cause, the Company shall have the right and option
to acquire Employee's Stock for the Net Book Value per share of such Stock,
based upon the Company's latest audited financial statements. All of Employee's
Options shall be terminated, expired, void and of no further force or effect.

                                       7
<PAGE>

8.       COMPANY PROPERTY; INVENTIONS.

         (a) All records, designs, patents, business plans, financial
statements, manuals, memoranda, lists, and other property delivered to or
compiled by Employee by or on behalf of the Company or their representatives,
vendors, or customers which pertain to the business of the Company shall be and
remain the property of the Company, as the case may be, and be subject at all
times to their discretion and control. Likewise, all correspondence, reports,
records, charts, advertising materials, and other similar data pertaining to the
business, activities, or future plans of the Company which is collected by
Employee shall be delivered promptly to the Company without request by it upon
termination of Employee's employment.

         (b) Employee shall disclose promptly to the Company any and all
significant conceptions and ideas for inventions, improvements, and valuable
discoveries, whether patentable or not, which are conceived or made by Employee,
solely or jointly with another, during the period of employment, and which are
directly related to the business or activities of the Company and which Employee
conceives as a result of Employee's employment by the Company. Employee hereby
assigns and agrees to assign all of Employee's interests therein to the Company
or its nominee. Whenever requested to do so by the Company, Employee shall
execute any and all applications, assignments, or other instruments that the
Company shall deem necessary to apply for and obtain Letters Patent of the
United States or any foreign country or to otherwise protect the Company's
interest therein.

9.       CONFIDENTIALITY AND PROPRIETARY INFORMATION.

         (a) Acknowledgement. Employee acknowledges and agrees that in the
course of rendering services to the Company and its customers, Employee will
have access to and will become acquainted with confidential and proprietary
information about the professional, business and financial affairs of the
Company, its affiliates and its vendors, suppliers and customers, and that
Employee may have contributed to or may in the future contribute to such
information. Employee further recognizes that Employee is being employed as a
key employee, that the Company is engaged in a highly competitive business, and
that the success of the Company in the marketplace and business depends upon its
goodwill and reputation for integrity, quality and dependability. Employee
recognizes that in order to guard the legitimate interests of the Company it is
necessary for the Company to protect all such confidential and proprietary
information, goodwill and reputation.

         (b) Proprietary Information. In the course of Employee's service to the
Company, Employee may have access to confidential know-how, business documents
or information, marketing data, client lists and trade secrets which are
confidential. Such information shall hereinafter be called "Proprietary
Information" and shall include any and all items enumerated in the preceding
sentence which come within the scope of the business activities of the Company
as to which Employee has had or may have access, whether previously existing,
now existing or arising hereafter, whether or not conceived or developed by
others or by Employee alone or with others during the period of his service to
the Company, and whether or not conceived or developed during regular working
hours. "Proprietary Information" shall not include any information which is in
the public domain during the period of service by Employee or becomes

                                       8
<PAGE>

public thereafter, provided such information is not in the public domain as a
consequence of disclosure by Employee in violation of this Agreement.

         (c) Fiduciary Obligations. Employee agrees and acknowledges that the
Proprietary Information is of critical importance to the Company and a violation
of this Section 8 will seriously and irreparably impair and damage the Company's
business. Employee therefore agrees, while he is an employee of the Company and
at all times thereafter, to keep all Proprietary Information strictly
confidential.

         (d) Non-Disclosure. Except as required by law or order of any court or
governmental entity or in connection with the proper performance of his duties
hereunder, Employee shall not disclose, directly or indirectly (except as
required by law), any Proprietary Information to any person other than (a) the
Company, (b) persons who are authorized employees of the Company at the time of
such disclosure, (c) such other persons, including prospective investors or
lenders, to whom Employee has been instructed to make disclosure by the
Company's Board, or (d) Employee's counsel, so long as such counsel agrees to
keep all Proprietary Information confidential (in the case of clauses (b) and
(c), only to the extent required in the course of Employee's service to the
Company). Upon any termination of Employee's employment hereunder, Employee
shall deliver to the Company all notes, letters, documents, tapes, discs,
recorded data and records which may contain Proprietary Information which are
then in Employee's possession or control and shall not retain, use, or make any
copies, summaries or extracts thereof.

10.      INDEMNIFICATION. In the event Employee is made a party to any
threatened, pending, or completed action, suit, or proceeding, whether civil,
criminal, administrative, or investigative (other than an action by the Company
against Employee), by reason of the fact that Employee is or was performing
services under this Agreement, then the Company shall indemnify Employee against
all expenses (including reasonable attorneys' fees), judgments, fines, and
amounts paid in settlement, as actually and reasonably incurred by Employee in
connection therewith. In the event that both Employee and the Company are made a
party to the same third-party action, complaint, suit, or proceeding, the
Company agrees to engage competent legal representation, and Employee agrees to
use the same representation, provided that if counsel selected by the Company
shall have a conflict of interest that prevents such counsel from representing
Employee, Employee may engage separate counsel and the Company shall pay all
reasonable attorneys' fees of such separate counsel. Further, while Employee is
expected at all times to use Employee's best efforts to faithfully discharge his
duties under this Agreement, Employee cannot be held liable to the Company for
errors or omissions made in good faith where Employee has not exhibited gross,
willful and wanton negligence and misconduct or performed criminal and
fraudulent acts which materially damage the business of the Company. The
employee is hereby further indemnified pursuant to exhibit "B" attached hereto.

11.      REPRESENTATIONS OF EMPLOYEE. Employee hereby represents and warrants to
the Company that the execution of this Agreement by Employee and his employment
by the Company and the performance of Employee's duties hereunder will not
violate or be a breach of any agreement with a former employer, client, or any
other person or entity. Further, Employee agrees to indemnify the Company for
any claim, including but not limited to attorneys' fees and expenses of
investigation, by any such third party that such third party may now have or may

                                       9
<PAGE>

hereafter come to have against the Company based upon or arising out of any
noncompetition agreement, invention or secrecy agreement between Employee and
such third party which was in existence as of the date of this Agreement.

         Employee has and will continue to truthfully disclose to the Company
the following matters, whether occurring, at any time during the five (5) years
immediately preceding the date of this Agreement or at any time during the term
of this Agreement:

                  (1) any criminal complaint, indictment or criminal proceeding
         in which Employee is named as a defendant;

                  (2) any allegation, investigation, or proceeding, whether
         administrative, civil or criminal, against Employee by any licensing
         authority or industry association; and

                  (3) any allegation, investigation or proceeding, whether
         administrative, civil, or criminal, against Employee for violating
         professional ethics or standards, or engaging in illegal, immoral or
         other misconduct (of any nature or degree), relating to the business of
         the Company.

12.      ASSIGNMENT; BINDING EFFECT. This Agreement shall inure to the benefit
of and be binding on Employee and the Company and Employee's and the Company's
respective heirs, personal representatives, successors and assigns; provided,
however, that Employee shall have no right to assign Employee's rights or duties
under this contract to any other person. In the event of the sale, merger or
consolidation of the Company, Employee specifically agrees that the Company may
assign the Company's rights and obligations hereunder to the Company's
successor, assign or purchaser. In addition, and in any event, the Company may,
at any time, assign the Company's rights and obligations under this Agreement to
any person that is an affiliate of the Company or to any person which, after any
such assignment, employs at least 50% of the employees employed by the Company
immediately prior to the assignment.

13.      COMPLETE AGREEMENT; AMENDMENTS. This Agreement supersedes any other
agreements or understandings, written or oral, among the Company and Employee,
and Employee has no oral representations, understandings or agreements with the
Company or any of its officers, directors, or representatives covering the same
subject matter as this Agreement. This written Agreement is the final, complete,
and exclusive statement and expression of the agreement between the Company and
Employee and of all the terms of this Agreement, and it cannot be varied,
contradicted, or supplemented by evidence of any prior or contemporaneous oral
or written agreements. This written Agreement may not be later modified except
by a written instrument signed by a duly authorized officer of the Company and
Employee, and no term of this Agreement may be waived except by a written
instrument signed by the party waiving the benefit of such term.

14.      NOTICE. Whenever any notice is required hereunder, it shall be given in
writing addressed as follows:

                                       10
<PAGE>

                                  To the Company:     NIMBUS GROUP INC.,
                                                      2999 NE 191ST STREET
                                                      SUITE 805
                                                      AVENTURA, FL. 33180
                                                      ATTENTION:  CHAIRMAN & CEO

         To Employee:             Lucien Lallouz
                                  2000 Island Blvd # 2005
                                  Aventura, Florida 33160

         Notice shall be deemed given and effective three (3) days after the
deposit in the U.S. mail of a writing addressed as above and sent first class
mail, certified, return receipt requested, or, in any other case, when actually
received. Either party may change the address for notice by notifying the other
party of such change in accordance with this paragraph 14.

15.      SEVERABILITY. If any portion of this Agreement is held invalid or
inoperative, the other portions of this Agreement shall be deemed valid and
operative and, so far as is reasonable and possible, effect shall be given to
the intent manifested by the portion held invalid or inoperative. Employee and
the Company agree and acknowledge that the provisions of paragraphs 4 and 9 are
material and of the essence to this Agreement. If the scope of any restriction
or covenant contained therein should be or become too broad or extensive to
permit enforcement thereof to its fullest extent, then such restriction or
covenant shall be enforced to the maximum extent permitted by law, and Employee
hereby consents and agrees that (a) it is the parties intention and agreement
that the covenants and restrictions contained therein be enforced as written,
and (b) in the event a court of competent jurisdiction should determine that any
restriction or covenant contained therein is too broad or extensive to permit
enforcement thereof to its fullest extent, the scope of any such restriction or
covenant may be modified accordingly in any judicial proceeding brought to
enforce such restriction or covenant, but should be modified to permit
enforcement of the restrictions and covenants contained herein to the maximum
extent the court, in its judgment, will permit.

16.      ARBITRATION. Any unresolved dispute or controversy arising under or in
connection with this Agreement or Employee's employment with the Company (or any
termination thereof) shall be settled exclusively by arbitration, conducted
before a panel of three (3) arbitrators in Miami-Dade County, Florida, in
accordance with the rules of the American Arbitration Association then in
effect. A decision by a majority of the arbitration panel shall be final and
binding. Judgment may be entered on the arbitrators' award in any court having
jurisdiction. The prevailing party shall receive and the unsuccessful party
shall pay the reasonable fees and expenses of any arbitration proceeding in
connection with this Agreement.

17.      GOVERNING LAW. This Agreement shall in all respects be construed
according to the laws of the State of Florida.

18.      HEADINGS. The paragraph headings herein are for reference purposes
only and are not intended in any way to describe, interpret, define, or limit
the extent or intent of the Agreement or of any part hereof.

                                       11
<PAGE>

19.      COUNTERPARTS. This Agreement may be executed in counterparts, each of
which shall be deemed an original and all of which together shall constitute but
one and the same instrument.

IN WITNESS WHEREOF, the parties hereto have made and entered into this Agreement
effective as of the date first above written.

                                       THE COMPANY:

                                       NIMBUS GROUP  INC.,

May 22, 2003                           By: /s/ Michael B. Wellikoff
                                       -----------------------------------------
                                       Name: Michael B. Wellikoff
                                       Title: Chairman

                                       EMPLOYEE:

May 22, 2003                           /s/ Lucien Lallouz
                                       -----------------------------------------
                                       Lucien Lallouz

                                       12

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00059-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00059-of-00352.parquet"}]]