Document:

IMMUCELL CORPORATION AND SUBSIDIARY

                               Exhibit 10.25

License Agreement between the Registrant and Hydros Environmental
Diagnostics, Inc.              dated December 8, 1999.

<PAGE>

                             LICENSE AGREEMENT

LICENSE AGREEMENT

This License Agreement ("Agreement") is made effective the 8th day of
December, 1999 by and between Hydros Environmental Diagnostics, Inc., a
Massachusetts corporation with its principal place of business at 230
Jones Road, Falmouth, Massachusetts 02540, USA (hereinafter called
"Hydros"), and ImmuCell Corporation (hereinafter called "ImmuCell"), a
Delaware corporation with its principal place of business at 56 Evergreen
Drive, Portland, Maine, 04103, USA, together hereinafter called the
Parties.

WHEREAS, Hydros has developed certain technology as described in
Section 1.1 herein entitled "LICENSED TECHNOLOGY", and Hydros is
willing to grant a license for said LICENSED TECHNOLOGY to ImmuCell;

NOW, THEREFORE, in consideration of the mutual covenants and
agreements set forth below, the Parties covenant and agree as follows:

        Section 1:  Definitions

      1.1 "LICENSED TECHNOLOGY" shall refer to and mean the Components
assembled in a Tip format and an associated Tray with Kit Reagents
that can be used to further manufacture diagnostic kits to detect
infectious disease organisms or other substances.  Such LICENSED
TECHNOLOGY also shall refer to and include (i) United States Patent
5,171,537 and any additional related patents now or hereafter owned or
licensed by Hydros, (ii) all foreign equivalents thereof, (iii) any
and all U.S. and/or foreign patent applications that claim said
LICENSED TECHNOLOGY.   LICENSED TECHNOLOGY does not include the
reagents and other materials exclusively supplied by ImmuCell.

      1.2 "Field of Use" shall mean detection of certain diseases in
bovines set forth in Appendix A, through the detection of an agent or
any marker indicating the presence of such disease.  This Field of Use
may be expanded pursuant to the provisions of Section 5 of this
Agreement.

     1.3 "Territory" shall be worldwide.

               1.4  "TTJ" shall mean ImmuCell's product, Tip-Test:
<trademark> Johne's,  for which a complete product license application
was submitted to the U.S. Department of Agriculture on or about June
30, 1999.  TTJ is the first test to be developed by ImmuCell utilizing
the LICENSED TECHNOLOGY.

      1.5   "Kit Reagents" shall mean certain chemical formulations
used to effect the desired diagnostic test result.   Kit Reagents do
not include the chemical formulations currently supplied by ImmuCell
for TTJ.

     1.6   "Trays"  shall mean a multi well plastic container used to
contain the Kit Reagents and Tip(s) together with a lid seal.

     1.7   "Tip"  shall mean the Hydros AffiniTip, which is a single
plastic tip having at least three elements, two covers and a storage
buffer.

     1.8   "Components" shall mean the Kit Reagents, a Tray and a Tip,
which collectively comprise the intended diagnostic test.  Components
shall not include the luer adapter or syringe.

      1.9  "Bulk Product" shall mean certain non-assembled Components
including Tip(s) and Kit Reagents supplied by Hydros in bulk
containers which are part of the diagnostic test.  Bulk Product shall
not include the syringe, luer adapter or Trays.

        Section 2:  License

      2.1(a)  Hydros hereby grants to ImmuCell an exclusive license to
use the LICENSED TECHNOLOGY to use and sell Components as part of
diagnostic kits in the Field of Use throughout the Territory for the
term of the Agreement, including any extension thereof.

      2.1(b)  Hydros hereby further grants to ImmuCell an exclusive
license to use the LICENSED TECHNOLOGY to make Trays and/or Bulk
Product as part of diagnostic kits in the Field of Use throughout the
Territory for the term of the Agreement, including any extension
thereof, provided that ImmuCell meets the minimum purchase
requirements defined in Section 3.1 and pays the royalties due to
Hydros as defined in Section 4.

      2.1 (c)  Hydros hereby further grants to ImmuCell an exclusive
license to use the LICENSED TECHNOLOGY to make Tips, Trays and/or Bulk
Product as part of diagnostic kits in the Field of Use throughout the
Territory for the term of the Agreement, including any extension
thereof, which license shall be operative only if Hydros fails to
supply a) the minimum purchase requirements of Components defined in
Section 3.1 by the first of each month as defined or b) subsequent
orders for Components, Tips and/or Bulk Product within three months of
an order by ImmuCell, except that any delays caused by ImmuCell
supplying reagents late will not count toward the three month period.
Should ImmuCell exercise its right to make Tips under the LICENSED
TECHNOLOGY, Hydros will provide technical training to ImmuCell
personnel as necessary to enable ImmuCell to make Components; provided
however, that Hydros has no obligation to disclose information that is
protected by any other agreement(s) in force on January 12, 1999.

      2.2    The licenses shall revert to a non-exclusive licenses
following the term of the Agreement, including any extension thereof.
The provisions of this Section 2.2 shall survive termination of the
Agreement.

      2.3    ImmuCell shall not obtain rights of any kind in the
LICENSED TECHNOLOGY other than the rights specifically set forth
herein.

      2.4    Hydros hereby acknowledges receipt from ImmuCell of good
and sufficient payment in January 1999 in consideration for the
licenses granted to ImmuCell pursuant to this Agreement.

      Section 3: Supply of Components and Services

      3.1   Hydros agrees to sell to ImmuCell, and ImmuCell agrees to
purchase from Hydros those quantities of Components and Tips set forth
in Appendix C at the times specified in Appendix C, subject to
ImmuCell's right to cancel set forth in Section 9.3 hereof.

      3.2    Appendix B sets forth the prices to be paid by ImmuCell
to Hydros for all tests in the Field of Use.  However, if and when the
bill of materials (for raw materials, direct labor and machine costs)
for the Components of a given test supports a cost that is
significantly different (defined as greater than 5%) from the cost
associated with the TTJ Components, Hydros has the right to adjust the
price commensurate with the increased cost of Components for such
test.  Such cost increases will be documented in writing.   When the
license becomes non-exclusive, Hydros agrees to sell ImmuCell
Components at prices no less favorable than Components sold to other
companies.

      3.3     Prices shall be reviewed as of January 1, 2001 and each
January 1 thereafter during the term of this Agreement. The price to
ImmuCell for Components will not increase at a rate that exceeds the
inflation rate as measured by the U.S. consumer price index for the
previous year plus two percent (2%) and may be adjusted no more than
once per year, except that Hydros may increase the price if it
experiences extraordinary increases in its raw materials (defined as
greater than 5%), in which case costs may be passed on to ImmuCell in
their entirety, and such costs will be documented in writing.

      3.4     Hydros shall use its best efforts to ship Components
ordered by ImmuCell promptly after its receipt of any written order
for such Components.  ImmuCell agrees to make payment to Hydros in
U.S. Dollars for each shipment within thirty (30) days after arrival
of each shipment of Components.

      3.5     Hydros agrees to manufacture and supply in bulk all
Components in such quantities as may be ordered from time to time in
writing (fax, mail or commercial courier) by ImmuCell (subject to a
minimum order of 3,000 Components per shipment prior to applicable
regulatory approval of the product and 10,000 per shipment subsequent
to such regulatory approval of the product) and ship the Components to
ImmuCell. ImmuCell will pay for shipping and any additional handling,
vialing or sealing required.

      3.6    Hydros shall provide, at ImmuCell's expense, such
technical training of ImmuCell's personnel and such educational, sales
and technical documentation, information and marketing support as
shall be reasonably requested by ImmuCell in furtherance of the
purposes of this Agreement.

      3.7    To facilitate ImmuCell's license to make Trays, Hydros
will assist ImmuCell by introducing ImmuCell to appropriate vendors
for the plastic and lid seal materials for direct ordering by
ImmuCell.

      3.8    Title to and all risk of loss of all Components ordered
by ImmuCell hereunder shall pass to ImmuCell upon shipment from
Falmouth, MA. ImmuCell shall pay for and determine the best method of
shipment. Shipping is to be coordinated through Hydros and all
delivery will be scheduled with Hydros in advance.

        The provisions of this Section 3 shall survive termination of
the Agreement.

        Section 4:  Royalties

        For every Tip that is manufactured by Hydros and that ImmuCell
packages with a Tray not manufactured by Hydros, ImmuCell will pay
Hydros a royalty of $0.10 per test sold by ImmuCell.  Hydros will bill
for royalty payments based on the number of Tips sold by Hydros to
ImmuCell less all Tips purchased by ImmuCell for research and
development.  ImmuCell will remit royalty payments, if any, to Hydros
semi-annually, on July 31 and January 31 each year during the term of
this Agreement and any extension thereof.

        Section 5:  Option to Expand Field of Use

        ImmuCell has the option to expand the Field of Use to cover
two additional bovine disease indications selected by ImmuCell
(Disease A and Disease B) by paying Hydros $5,000 upon the signing of
this Agreement.  The specific diseases covered by this option must be
named by ImmuCell on or before December 31, 1999.  It is understood
that ImmuCell's exclusive rights to the LICENSED TECHNOLOGY with
respect to Disease A and Disease B shall revert to non-exclusive
status if submissions of complete product license applications to the
applicable regulatory agency are not made by January 12, 2002 for
Disease A and January 12, 2003 for Disease B.  Such revision of rights
to a non-exclusive status for either Disease A or Disease B shall not
effect the exclusive status for the other disease if the relevant
performance requirements have been met for that other disease.

        Section 6:  Non-Competition

        Hydros agrees not to sell Components of tests to detect the
presence of the diseases set forth in the Field of Use outside of the
Field of Use except at a price that is four times the transfer price
of Components sold to ImmuCell during the term of this Agreement,
including any extension hereof.  Hydros will take all necessary steps
to ensure that Components used to manufacture diagnostic tests for the
detection of diseases covered by the Field of Use in other species
shall not be used in the Field of Use.  ImmuCell shall not advertise
its diagnostic tests using Components outside the Field of Use nor
will it fund any research that will enable the test's use other than
in bovines.  On an annual basis, Hydros shall notify ImmuCell of the
quantity of Components being used for further or final manufacture of
tests for diseases covered by the Field of Use that are being used
outside the Field of Use.  In no case shall Hydros use technology or
reagents from ImmuCell to manufacture a test to detect diseases
covered by the Field of Use in a species other than bovine.  ImmuCell
agrees not to sell any diagnostic tests in the Field of Use with Tips
that are developed after the date of execution of this Agreement
unless the Tips are obtained from Hydros.

        Section 7:  Certain Warranties of Hydros

     7.1     As to the LICENSED TECHNOLOGY Hydros warrants that it has
the right to grant the licenses to ImmuCell as provided in this
Agreement.  However, nothing in this Agreement shall be construed as a
warranty or representation by Hydros as to the validity, enforceability
or scope of any LICENSED TECHNOLOGY or as to its effectiveness or as to
any results or advantage to be achieved by its use.  If a third party
makes a claim against ImmuCell that the LICENSED TECHNOLOGY infringes any
patent, copyright, trade secret or trademark, Hydros will defend ImmuCell
at Hydros' expense against the claim and pay all costs, damages and
expenses (including reasonable legal fees) incurred by ImmuCell arising
out of such claim.  ImmuCell agrees to assist Hydros, at no cost to
ImmuCell, including agreeing to be named as a party plaintiff in any
legal action, in the event that Hydros decides to pursue third party
infringers of the LICENSED TECHNOLOGY.

     7.2    Nothing contained in this Agreement shall be construed to
convey to ImmuCell any ownership rights, proprietary interest or other
rights or interest of any kind, except for the licenses granted in
Section 2 and right to use the LICENSED TECHNOLOGY in the manufacture,
distribution and sale of diagnostic tests using Components which is
expressly granted by this Agreement.  ImmuCell covenants and agrees
that it shall not at any time during the term of this Agreement
challenge or contest the ownership of the LICENSED TECHNOLOGY, or
trademark or trade name used by Hydros ("TRADEMARKS"), including the
trademark and trade name "Hydros."   ImmuCell shall not challenge the
validity or enforceability of any of the Patents and/or TRADEMARKS
associated with this License, nor do anything that in any way
tarnishes them or otherwise impairs their value.

     7.3   Hydros warrants that Components sold hereunder shall
perform to ImmuCell's specifications for such Components as set forth
in Appendix D hereto.  Hydros disclaims all other warranties not
expressly set forth in this Agreement, including warranties of
merchantability and fitness for a particular purpose.

   The provisions of this Section 7 shall survive termination of the
   Agreement.

        Section 8:  Regulatory Registration

     8.1    ImmuCell shall utilize commercially reasonable efforts to
conduct clinical trials of products made from the Components in the
Territory.  The costs for such clinical trials shall be borne by ImmuCell.
ImmuCell will perform such trials in a timely manner so as to achieve the
regulatory submission  milestones set forth in Sections 5 and 9.2.   If
requested to do so, Hydros will provide reasonable assistance to ImmuCell
in conducting clinical trials at no cost to ImmuCell.

     8.2    Any and all regulatory filings to obtain applicable regulatory
approvals and any and all approvals in the Territory shall be filed in the
name of and owned by ImmuCell.

        Section 9:  Term And Termination

     9.1     Except as provided below, the term of this Agreement shall
begin as of January 12, 1999 and continue until the earlier of (i) December
31, 2006,  (ii)  a petition for bankruptcy is filed by or against ImmuCell
or (iii) liquidation proceedings are instituted by or against ImmuCell.
ImmuCell may extend the term of exclusivity granted in this Agreement an
additional six (6) years by payment to Hydros of three percent (3%) of
sales of product under this license in the year 2005.  Such payment must be
made to Hydros by December 31, 2006

     9.2     It is understood that ImmuCell's exclusive rights to LICENSED
TECHNOLOGY with respect to each disease in the Field of Use shall revert to
non-exclusive status if the following is not met: submission of complete
product license application to the applicable regulatory agency by the
following dates: 1) Johne's disease January 12, 2000;  2) Disease #2 and
Disease #3 by January 12, 2001; and 3) Disease #4 by July 12, 2001. Such
reversion of rights to a non-exclusive status for any of the four diseases
shall not effect the exclusive status for any diseases for which
performance requirements have been met.

     9.3     ImmuCell may terminate this Agreement at any time by
giving at least ninety (90) days' written notice of such termination
to Hydros.  ImmuCell shall pay to Hydros a termination fee of $2,500
if it terminates the Agreement early without cause.  This right to
terminate does not apply to the commitments defined in Appendix C,
Part I.

     9.4     If  ImmuCell at any time defaults in the timely payment
of any monies due to Hydros or commits any material breach of any
other covenant herein contained, and fails to remedy such breach
within ninety (90) days after written notice thereof by Hydros, Hydros
may, at its option, terminate this Agreement by giving written notice
of termination to ImmuCell.

     9.5     Upon the termination of this Agreement, ImmuCell shall
remain obligated to pay any outstanding monies owed for Components
sold by Hydros to ImmuCell and the following Sections shall survive
termination or expiration of this Agreement: Sections 2.2, 3, 7, 9.5,
12, 13, 16, 18 and 19.

      9.6    Upon the termination of this Agreement, all rights to
LICENSED TECHNOLOGY will revert to Hydros and the license to ImmuCell
shall immediately cease.

        Section 10:  Distribution Obligation of ImmuCell

        ImmuCell shall comply with all governmental laws, ordinances,
rules and regulations applicable in connection its sale or shipment of
, or use or service of diagnostic tests which use Components, or the
fulfillment of any of ImmuCell's obligations under this Agreement
including, but not limited to, the payment of any duties (excluding
Hydros income taxes), obtaining of any governmental permits,
clearances or approvals, and compliance with customs requirements or
testing of Components.

        Section 11:  Minimums

        ImmuCell agrees that the minimums defined by Section 3.1 and
Appendix C are reasonable and that if such annual minimums are not
achieved, the license will become non-exclusive.

        Section 12:  Confidentiality

        Each party acknowledges and agrees that it may be necessary
during the term hereof that each party (the "Disclosing Party")
disclose to the other party (the "Recipient Party") confidential or
proprietary information of the Disclosing Party pertaining to the
Field of Use.  Each Recipient Party agrees that during the term hereof
and for a period of 5 years thereafter, it shall keep confidential and
refrain from disclosing to any third party or using for its own
account, any such confidential  or proprietary information of the
Disclosing Party.  The Parties agree that the foregoing provisions
shall not apply with respect to any information that (i) is (through
no improper action or inaction by the Recipient Party) generally known
to the public, (ii) was in the Recipient Party's possession or known
by it prior to receipt from the Disclosing Party, or (iii) was
rightfully disclosed to the Recipient Party by a third party without
restriction.  Each Recipient Party may make disclosures required by
court order provided it uses diligent effort to limit disclosures and
to obtain confidential treatment or a protective order and has allowed
Hydros the opportunity to participate in the proceeding.  Each
Recipient Party further agrees that upon expiration or termination of
this Agreement, it shall return all such information which is in
writing, along with all pamphlets, referencing materials, manuals,
brochures and the like which may have been furnished to the Recipient
Party by the Disclosing Party during the term hereof, including all
copies, reproduction or translations thereof, and Hydros shall return
to ImmuCell all reagents in its possession therefore delivered to
Hydros by ImmuCell. The provisions of this Section 12 shall survive
termination of the Agreement.

        Section 13:  Severability

        In the event that any one or more provisions of this Agreement
shall be declared to be illegal or unenforceable under the law, rule
or regulation of any government having jurisdiction over the Parties
hereto, such illegality or un-enforceability shall not affect the
validity or enforceability of the other provisions hereof, and the
Parties hereto shall agree upon the modification of this Agreement
with respect to such illegal or unenforceable provisions to eliminate
such illegality or un-enforceability. The provisions of this Section
13 shall survive termination of the Agreement.

        Section 14:  Counterparts

        This Agreement may be executed in any number of counterparts,
each of which shall be deemed to be an original, and all of which
together shall be deemed to be one and the same instrument.

        Section 15:  Future Products

        Hydros agrees, in the event that it develops new products for
which a market to end customers in the bovine market may exist, that
it shall enter into good faith negotiations with ImmuCell with respect
to the distribution of such products by ImmuCell in the bovine market.

        Section 16:  Patent Marking:

        The Parties shall agree on the manner in which patent(s) and
patent application(s) are shown on the end customer packaging of
products using Components to comply with applicable United States and
international law.  Except as provided in this paragraph, all end
customer package copy shall be at the sole discretion and sole
responsibility of ImmuCell. The provisions of this Section 16 shall
survive termination of the Agreement.

        Section 17:  Benefit/Non-Assignability.

        This Agreement shall be assignable to, inure to the benefit of
and be binding upon purchasers acquiring all or substantially all of
the assets of ImmuCell or Hydros to which this Agreement relates, and
any successor to ImmuCell or Hydros by merger, and no other person,
and this Agreement and the rights and obligations of either party
hereunder may not otherwise be assigned or transferred without the
written consent of the other party;  provided, however, that Hydros
acknowledges and agrees that ImmuCell may appoint sub-distributors to
assist in discharging ImmuCell marketing obligations hereunder.

        Section 18:  Governing Law.

        The rights and obligations of the Parties under this Agreement
shall  be governed by the  laws of the Commonwealth of Massachusetts,
USA.  The provisions of this Section 18 shall survive termination of
the Agreement.

        Section 19:  Notices:

        Any notice to be served or given hereunder shall be deemed to
have been given when delivered personally or sent by certified or
registered United States mail, postage prepaid,  to Hydros or
ImmuCell, as the case may be at the respective addresses set forth in
this Agreement or such other address for which notice was given in the
manner provided herein. The provisions of this Section 19 shall
survive termination of the Agreement.

        Section 20:  Relationship.

        ImmuCell shall act only as an independent contractor under
this Agreement and shall have no power, right or authority, expressed
or implied, to create or assume in any manner any obligation of any
kind on behalf of Hydros or in Hydros' name.  Neither party is in any
respect an agent, employee or a legal representative of the other
party and neither party shall hold itself out as such for any purpose
whatsoever.

        Section 21:  Integration.

        This Agreement constitutes the full understanding between the
Parties with reference to the subject matter hereof, and no statements
or agreements by or between the Parties, whether orally or in writing,
except as provided for elsewhere herein, made prior to or at the
signing hereof, shall vary or modify the written terms of this
Agreement.  Neither party shall claim any amendment, modification, or
release from any provisions of the Agreement by mutual agreement,
acknowledgment, or otherwise, unless such mutual agreement is in
writing, signed by the other party and specifically states that it is
an amendment to this Agreement.

IN WITNESS WHEREOF, ImmuCell and Hydros have executed this Agreement
by their duly authorized officers or representatives, effective on the
date first above written.

   Hydros, Inc.                          ImmuCell Corporation

   By:  /S/ Steven H. Boyd               By:  /S/ Michael F. Brigham
   Steven H. Boyd, President             Michael F. Brigham,
                                         Vice President and CFO
   (Date) 12/8/99                        (Date) 12/9/99

   Witness :  /S/ Kendra Williams        Witness:  /S/ Joyce N. Watson
   (Date)     12/8/99                    (Date)  12/9/99EXHIBIT 10.10 - EXECUTIVE SEVERANCE AGREEMENT

                       EXECUTIVE SEVERANCE AGREEMENT

     This EXECUTIVE SEVERANCE AGREEMENT (the "Agreement") is made as of
November 17, 1997, by and between SCAN-OPTICS, INC. (the "Company") and
Marianna C. Emanuelson (the "Executive").

                                 RECITALS:

          A.   The Executive is an executive of the Company and has made
and is expected to continue to make major contributions to the short- and
long-term profitability, growth, and financial strength of the Company;

          B.   The Company recognizes that the possibility of a Change of
Control (as hereafter defined) exists;

          C.   The Company desires to assure itself of both present and
future continuity of its management and desires to establish certain
severance benefits for key executive officers of the Company, including the
Executive, applicable in the event of a Change of Control; and

          D.   The Company wishes to aid in assuring that such executives
are not practically disabled from discharging their duties in respect of a
proposed or actual transaction involving a Change of Control.

          NOW, THEREFORE, the Company and the Executive agree as follows:

          1.   CERTAIN DEFINED TERMS:  In addition to terms defined
elsewhere herein, the following terms have the following meanings when used
in this Agreement with initial capital letters:

          (a) "Base Pay" means the Executive's annual aggregate fixed base
     salary from the Company at the time in question.

          (b) "Board" means the Board of Directors of the Company.

          (c) "Change of Control" means a change of control of a nature
     that would be required to be reported in response to Item 5(f) of
     Schedule 14A of Regulation 14A promulgated under the Securities
     Exchange Act of 1934, as amended (the "Exchange Act"), whether or not
     the Company is then subject to such reporting requirement; provided
     that, without limitation, such a Change of Control shall be deemed to
     have occurred if (i) any "person" (as such term is used in Sections
     13(d) and 14(d) of the Exchange Act) is or becomes the "beneficial
     owner" (as defined in Rule 13d-3 under the Exchange Act), directly or
     indirectly, of securities of the Company representing 22% or more of
     the combined voting power of the Company's then outstanding
     securities; or (ii) during any period of two consecutive years (not
     including any period prior to the execution of this Agreement),
     individuals who at the beginning of such period constitute the Board
     and any new directors, whose election by the Board or nomination for
     election by the Company's stockholders was approved by a vote of at
     least two-thirds (2/3) of the directors then still in office who
     either were directors at the beginning of the period or whose election
     or nomination for election was previously so approved, cease for any
     reason to constitute a majority thereof.

          (d) "Cause" means that, prior to any Termination by the Executive
     for Good Reason, the Executive shall have:

               (i) committed an intentional act of fraud, embezzlement, or
          theft in connection with the Executive's duties or in the course
          of his employment with the Company;

               (ii) committed intentional wrongful damage to property of
          the Company; or

               (iii) intentionally and wrongfully disclosed confidential
          information of the Company;

     and any such act shall have been materially harmful to the Company.
     For purposes of this Agreement, no act on the part of the Executive
     shall be deemed "intentional" if it was due primarily to an error in
     judgment or negligence, but shall be deemed "intentional" only if done
     by the Executive not in good faith and without reasonable belief that
     the Executive's action or omission was in the best interests of the
     Company.  The determination of whether a Termination of the
     Executive's employment is for "Cause" shall be made by the Board.

          (e) "Commission Pay" means the average annual commissions paid to
     the Executive by the Company during the three year period ending at
     the time in question.

          (f) "Date of Termination" means the date of receipt of a Notice
     of Termination or any later date specified therein, as the case may
     be; provided, however, that if the Executive is Terminated by the
     Company other than for Cause or for disability pursuant to Section
     2(a)(ii), the Date of Termination will be the date on which the
     Executive receives a Notice of Termination from the Company; and
     provided further, if the Executive is Terminated by reason of death or
     disability pursuant to Section 2(a)(i) or 2(a)(ii), the Date of
     Termination will be the last day of the month in which occurs the date
     of death or the disability effective date, as the case may be.

          (g) "Employee Benefits" means the perquisites, benefits and
     service credit for benefits as provided under the plans and programs
     maintained by the Company, including, but not limited to, plans and
     programs which are "employee benefit plans" under Section 3(3) of the
     Employee Retirement Income Security Act of 1974, as amended, and any
     amendment or successor to such plans or programs (whether insured,
     funded or unfunded).

          (h) "Good Reason" means the occurrence of any of the events
     listed in Sections 2(b)(i) through 2(b)(vii), inclusive.

          (i) "Incentive Pay" means an annual amount equal to the aggregate
     annual bonus, incentive compensation or performance pay, in addition
     to Base Pay, made or to be made in regard to services rendered in any
     calendar year or performance period pursuant to any bonus, incentive
     compensation or performance pay plan of the Company.

          (j) "Notice of Termination" means a written notice which (i)
     indicates the specific provision in this Agreement relied upon, (ii)
     sets forth in reasonable detail the facts and circumstances claimed to
     provide a basis for the Termination under the provision so indicated,
     and (iii) if the effective date of the Termination is other than the
     date of receipt of such notice, specifies the effective date of
     Termination (which date will be not more than sixty (60) days after
     the giving of such notice).  The failure by the Executive to set forth
     in the Notice of Termination any fact or circumstance which
     contributes to a showing that the Executive is entitled to the
     benefits intended to be provided by this Agreement will not constitute
     a waiver of any right of the Executive hereunder or otherwise preclude
     the Executive from later asserting such fact or circumstance in
     enforcing the Executive's rights hereunder.

          (k) "Severance Period" means the period of time commencing on the
     date of an occurrence of a Change of Control and continuing until the
     earlier of (i) the date which is two years following the occurrence of
     the Change of Control, and (ii) the Executive's death.

          (1) "Term" means (i) the period commencing on the date hereof and
     ending on the second anniversary of the date hereof; provided,
     however, that commencing on the date one year after the date hereof,
     and on each annual anniversary of such date (such date and each annual
     anniversary thereof shall be hereinafter referred to as the "Renewal
     Date"), unless previously terminated, the Term shall be automatically
     extended so as to terminate two years from such Renewal Date, unless
     at least sixty (60) days prior to the Renewal Date the Company shall
     give notice to the Executive that the Term shall not be so extended,
     (ii) if, prior to a Change of Control, for any reason the Executive is
     Terminated or Terminates, thereupon without further action the Term
     shall be deemed to have expired and this Agreement will immediately
     terminate and be of no further effect, and (iii) in the event of a
     Change of Control, the Term will, without further action, be
     considered to terminate at the expiration of the Severance Period.

          (m) "Terminate", "Termination" and correlative terms mean the
     termination of the Executive's employment with the Company and any
     Affiliate or Subsidiary.

          2.   TERMINATION FOLLOWING A CHANGE OF CONTROL:  (a) If, during
the Severance Period, the Executive is Terminated, the Executive will be
entitled to the benefits provided by Section 3 unless such Termination is
by reason of one or more of the following events:

               (i) The Executive's death;

               (ii) The permanent and total disability of the Executive, as
          defined in any long term disability plan of the Company,
          applicable to the Executive, as in effect immediately prior to
          the Change of Control;

               (iii) Cause; or

               (iv) The Executive's voluntary Termination in circumstances
          in which Good Reason does not exist.

          (b) In the event of the occurrence of a Change of Control, the
     Executive may Terminate during the Severance Period with the right to
     severance compensation as provided in Section 3 upon the occurrence of
     one or more of the following events (regardless of whether any other
     reason, other than Cause as hereinabove provided, for Termination
     exists or has occurred, including, without limitation, other
     employment):

               (i) An adverse change in the nature or scope of the
          authorities, powers, functions, responsibilities, or duties
          attached to the position with the Company, which the Executive
          held immediately prior to the Change of Control;

               (ii) A reduction in the Executive's Base Pay as in effect
          immediately prior to any Change of Control, or as it may have
          been increased from time to time thereafter;

               (iii) Any failure by the Company to continue in effect any
          plan or arrangement providing Incentive Pay in which the
          Executive is participating at the tine of a Change of Control (or
          any other plans or arrangements providing substantially similar
          benefits) or the taking of any action by the Company which would
          adversely affect the Executive's participation in any such plan
          or arrangement or reduce the Executive's benefits under any such
          plan or arrangement in a manner inconsistent with the practices
          of the Company prior to the Change of Control;

               (iv) Any failure by the Company to continue in effect any
          Employee Benefits in which the Executive is participating at the
          time of a Change of Control (or any other plans or arrangements
          providing the Executive with substantially similar benefits) or
          the taking of any action by the Company which would adversely
          affect the Executive's participation in or materially reduce the
          Executive's benefits under any Employee Benefits or deprive the
          Executive of any material fringe benefit enjoyed by the Executive
          at the time of a Change of Control;

               (v) The liquidation, dissolution, merger, consolidation, or
          reorganization of the Company or transfer of all or substantially
          all of its business and/or assets, unless the successor or
          successors (by liquidation, merger, consolidation,
          reorganization, transfer, or otherwise) to which all or a
          significant portion of its business and/or assets have been
          transferred (directly or by operation of law) assumed all duties
          and obligations of the Company under this Agreement pursuant to
          Section 9;

               (vi) Without limiting the generality or effect of the
          foregoing, any material breach of this Agreement by the Company
          or any successor thereto; or

               (vii) Any action by the Company which causes the Executive's
          services to be performed regularly at any office or location
          greater than thirty five (35) miles from the office or location
          where the Executive was employed immediately preceding the date
          of the Change of Control.

          (c) Any Termination will be communicated by Notice of Termination
     hereto given in accordance with Section 10 of this Agreement.

          3.   SEVERANCE COMPENSATION:  (a) If, following the occurrence of
a Change of Control, the Executive is Terminated by the Company during the
Severance Period other than in the circumstances set forth in Section
2(a)(i), 2(a)(ii), or 2(a)(iii), or if the Executive Terminates for Good
Reason:

               (i) The Company will pay to the Executive in a lump sum in
          cash within five business days after the later of the date on
          which the Company receives the determination of the Accounting
          Firm required in Section 4 hereof or the Date of Termination an
          amount (the "Severance Payment") equal to the sum of (A) 2.5
          times the sum of Base Pay and Commission Pay at the highest rates
          in effect at any time within the 90-day period preceding the date
          the Notice of Termination was given or, if higher, at the highest
          rates in effect at any time within the 90-day period preceding
          the date of the first occurrence of a Change of Control, plus (B)
          an amount equal to 2.5 times the greatest amount of Incentive Pay
          received by the Executive during any year from and including the
          third year prior to the first occurrence of a Change of Control,
          plus (C) an amount equal to 2.5 times the matching contribution
          that would be made by the Company to the Scan-Optics, Inc.
          Retirement Savings Plan on Executive's behalf if the Executive
          deferred under such Plan four percent (adjusted for any
          applicable limitation under the Internal Revenue Code of 1986, as
          amended) of the sum of Base Pay, Commission Pay and Incentive Pay
          (at the rates used in (A) and (B) above) or such higher
          percentage as may then be eligible for Company matching
          contributions, plus (D) an amount equal to the value (determined
          as of the Date of Termination and assuming exercisability as of
          such date) of all options granted to the Executive to acquire
          Company common stock that will not become exercisable as a result
          of Executive's Termination; and

               (ii) For two years following the Date of Termination, the
          Executive shall be eligible for participation in and shall
          receive all benefits under such benefit plans, practices,
          policies and programs of the Company that provide medical,
          prescription, dental, disability, accident or life insurance
          coverage, with the costs of such participation to be paid by the
          Company to the same extent as prior to the Executive's
          Termination.  In the event that such continued participation is
          not allowed under the terms and provisions of such plans or
          programs, then in lieu thereof, the Company shall acquire
          individual insurance policies providing comparable coverage for
          the Executive; provided that if any such individual coverage is
          unavailable, the Company shall pay to the Executive an amount
          equal to the contributions that would have been made by the
          Company for such coverage on the Executive's behalf if the
          Executive had remained in the employ of the Company for two years
          following the Date of Termination.

          (b) There will be no right of set-off or counterclaim in respect
     of any claim, debt, or obligation against any payment to or benefit
     for the Executive provided for in this Agreement.

          (c) Without limiting the rights of the Executive at law or in
     equity, if the Company fails to make any payment or provide any
     benefit required to be made or provided under this Agreement
     (including under this Section 3 or Section 6) on a timely basis, the
     Company will pay interest on the amount or value thereof at an
     annualized rate of interest equal to the so-called composite "prime
     rate" as quoted from time to time during the relevant period in the
     Northeast Edition of THE WALL STREET JOURNAL.  Such interest will be
     payable as it accrues on demand.  Any change in such prime rate will
     be effective on and as of the date of such change.

          (d) Notwithstanding any other provision hereof, the parties'
     respective rights and obligations under this Section 3 and under
     Sections 4 and 6 will survive any termination or expiration of this
     Agreement following a Change of Control or any Termination following a
     Change of Control for any reason whatsoever.

          4.   EXCISE AND OTHER TAXES.  The Executive shall bear all
expense of, and be solely responsible for, all federal, state, local or
foreign taxes due with respect to any payment received hereunder,
including, without limitation, any excise tax imposed by Section 4999 of
the Internal Revenue Code of 1986, as amended (the "Code"); provided,
however, that the Severance Payment shall be reduced to the extent
necessary so that no portion thereof shall be subject to the excise tax
imposed by Section 4999 of the Code.  The foregoing determination will be
made by a nationally recognized accounting firm (the "Accounting Firm")
selected by the Executive and reasonably acceptable to the Company (which
may, but will not be required to be, the Company's independent auditors).
The Executive will direct the Accounting Firm to submit its determination
and detailed supporting calculations to both the Company and the Executive
within fifteen (15) days after the Date of Termination.  If the Accounting
Firm determines that such reduction is required by this Section 4, the
Company shall pay such reduced amount to the Executive in accordance with
Section 3(a)(i).  If the Accounting Firm determines that no reduction is
necessary under this Section 4, it will, at the same time as it makes such
determination, furnish the Company and the Executive an opinion that the
Executive will
not be liable for any excise tax under Section 4999 of the Code. The
Company and the Executive will each provide the Accounting Firm access to
and copies of any books, records, and documents in the possession of the
Company or the Executive, as the case may be, reasonably requested by the
Accounting Firm, and otherwise cooperate with the Accounting Firm in
connection with the preparation and issuance of the determinations and
calculations contemplated by this Section 4.  The fees and expenses of the
Accounting Firm for its services in connection with the determinations and
calculations contemplated by this Section 4 will be borne by the Company.

          5.   NO MITIGATION OBLIGATION:  The Company hereby acknowledges
that it will be difficult, and may be impossible, for the Executive to find
reasonably comparable employment following the Date of Termination.  The
payment of the severance compensation by the Company to the Executive in
accordance with the terms of this Agreement will be liquidated damages, and
the Executive will not be required to mitigate the amount of any payment
provided for in this Agreement by seeking other employment or otherwise,
nor will any profits, income, earnings, or other benefits from any source
whatsoever create any mitigation, offset, reduction, or any other
obligation on the part of the Executive hereunder or otherwise.

          6.   LEGAL FEES AND EXPENSES:  If the Company has failed to
comply with any of its obligations under this Agreement or in the event
that the Company or any other person takes or threatens to take any action
to declare this Agreement void or unenforceable, or institutes any
litigation or other action or proceeding designed to deny, or to recover
from, the Executive the benefits provided or intended to be provided to the
Executive hereunder, the Company irrevocably authorizes the Executive from
time to time to retain counsel of the Executive's choice, at the expense of
the Company to the extent hereafter provided, to advise and represent the
Executive in connection with any such interpretation, enforcement, or
defense, including, without limitation, the initiation or defense of any
litigation or other legal action, whether by or against the Company or any
member of the Board, officer, stockholder, or other person or entity
affiliated with the Company, in any jurisdiction.  If the Executive
prevails, in whole or in part, in connection with any such litigation, the
Company will pay and be solely financially responsible for any and all
attorneys' and related fees' and expenses incurred by the Executive in
connection with such litigation.

          7.   EMPLOYMENT RIGHTS:  Nothing expressed or implied in this
Agreement will create any right or duty on the part of the Company or the
Executive to have the Executive remain in the employment of the Company
prior to or following any Change of Control.

          8.   WITHHOLDING OF TAXES:  Except as otherwise provided in this
Agreement, the Company may withhold from any amounts payable under this
Agreement all federal, state, city, or other taxes as the Company is
required to withhold pursuant to any law or government regulation or
ruling.

          9.   SUCCESSORS AND BINDING AGREEMENT:  (a) The Company will
require any successor (whether direct or indirect, by purchase, merger,
consolidation, reorganization, or otherwise) to all or substantially all of
the business and/or assets of the Company, by agreement in form and
substance satisfactory to the Executive, expressly to assume and agree to
perform this agreement in the same manner and to the same extent the
Company would be required to perform if no such succession had taken place.
This Agreement will be binding upon and inure to the benefit of the Company
and any successor to the Company, including, without limitation, any
persons acquiring directly or indirectly all or substantially all of the
business and/or assets of the Company whether by purchase, merger,
consolidation, reorganization, or otherwise (and such successor will
thereafter be deemed the "Company" for the purposes of this Agreement), but
will not otherwise be assignable, transferable, or delegable by the
Company.

          (b) This Agreement will inure to the benefit of and be
     enforceable by the Executive's personal or legal representatives,
     executors, administrators, successors, heirs, distributees, and/or
     legatees.

          (c) This Agreement is personal in nature and neither of the
     parties hereto will, without the consent of the other, assign,
     transfer, or delegate this Agreement or any rights or obligations
     hereunder except as expressly provided in Sections 9(a) and 9(b).
     Without limiting the generality or effect of the foregoing, the
     Executive's right to receive payments hereunder will not be
     assignable, transferable, or delegable, whether by pledge, creation of
     a security interest, or otherwise, other than by a transfer by will or
     by the laws of descent and distribution and, in the event of any
     attempted assignment or transfer contrary to this Section 9(c), the
     Company will have no liability to pay any amount so attempted to be
     assigned, transferred, or delegated.

          10.  NOTICES:  For all purposes of this Agreement, all
communications, including, without limitation, notices, consents, requests,
or approvals, required or permitted to be given hereunder will be in
writing and will be deemed to have been duly given when hand delivered or
dispatched by electronic facsimile transmission (with receipt thereof
orally confirmed), or two business days after having been mailed by United
States registered or certified mail, return receipt requested, postage
prepaid, or one business day after having been sent by a nationally
recognized overnight courier service, addressed to the Company (to the
attention of the Chairman of the Board) at its principal executive office
and to the Executive at the Executive's principal residence, or to such
other address as any party may have furnished to the other in writing and
in accordance herewith, except that notices of changes of address will be
effective only upon receipt.

          11.  GOVERNING LAW:  The validity, interpretation, construction,
and performance of this Agreement will be governed by and construed in
accordance with the substantive laws of the State of Connecticut, without
giving effect to the principles of conflict of laws of such State, to the
extent not preempted by applicable federal law.

          12.  VALIDITY:  If any provision of this Agreement or the
application of any provision hereof to any person or circumstances is held
invalid, unenforceable, or otherwise illegal, the remainder of this
Agreement and the application of such provision to any other person or
circumstances will not be affected, and the provision so held to be
invalid, unenforceable, or otherwise illegal will be reformed to the extent
(and only to the extent) necessary to make it enforceable, valid, or legal.

          13.  NON-EXCLUSIVITY OF RIGHTS:  Nothing in this Agreement will
prevent or limit the Executive's present or future participation in any
benefit, bonus, incentive, or other plan or program provided by the Company
for which the Executive may qualify, nor will this Agreement in any manner
limit or otherwise affect such rights as the Executive may have under any
stock option or other agreements with the Company.  Amounts or benefits
which are vested or which the Executive is otherwise entitled to receive
under any plan or program of the Company at or subsequent to the Date of
Termination will be payable in accordance with such plan or program, except
as otherwise expressly provided in this Agreement; provided, however, that
any amounts received by the Executive pursuant to this Agreement shall be
in lieu of (but, if necessary to give effect to this provision, shall be
reduced by) any benefits which the Executive is entitled to receive or may
become entitled to receive under any reduction-in-force or severance pay
plan or practice which the Company now has in effect or may hereafter put
into effect, any other benefits to which the Executive may be entitled
under any previous individual agreement of employment or severance
agreement with the Company which would provide a benefit to the Executive
upon the occurrence of, or the termination of employment following, a
Change of Control (whether or not so defined in said individual agreement),
and any severance benefits required under federal or state law to be paid
to the Executive.

          14.  MISCELLANEOUS:  No provision of this Agreement may be
modified, waived, or discharged unless such waiver, modification, or
discharge is agreed to in writing signed by the Executive and the Company.
No waiver by either party hereto at any time of any breach by the other
party hereto or compliance with any condition or provision of this
Agreement to be performed by such other party will be deemed a waiver of
similar or dissimilar provisions or conditions at the same or at any prior
or subsequent time.  No agreements or representations, oral or otherwise,
expressed or implied with respect to the subject matter hereof have been
made by either party which are not set forth expressly in this Agreement.
References to Sections are to references to Sections of this Agreement.

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

                                           SCAN-OPTICS, INC.

                                              By /s/ James C. Mavel
                                              Name:  James C. Mavel
                                              Title: Chairman, President and
                                                     Chief Executive Officer

                                           /s/ Marianna C. Emaneulson
                                           Marianna C. Emaneulson

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