Document:

TECHNOLOGY LICENSE AND SERVICES AGREEMENT

            The terms of this Technology License and Services Agreement
("AGREEMENT") are agreed to by and between San Pedro Peninsula Hospital d.b.a.
Little Company of Mary - San Pedro Hospital ("HOSPITAL") and Hythiam, Inc.
("HYTHIAM") (each a "PARTY" and collectively "THE PARTIES").

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  Agreement Effective Date: November 10, 2003
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  Term of Agreement: Three (3) years
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  Little Company of Mary - San Pedro                 Hythiam, Inc.
      Hospital

By:      /s/ Blair Contratto            By:      /s/ Terren S. Peizer
         ----------------------------            -----------------------------

Title:   Chief Executive Officer        Title:   Chief Executive Officer
Address: 4102 Torrance Blvd.                     11111 Santa Monica Blvd. #550
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         Torrance, CA 90503                      Los Angeles, CA 90025
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Contact:                                Contact:
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Phone:                                  Phone:
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E-mail:                                 E-mail:
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Attachments:      Schedule A; Schedule B: Authorized Users; Schedule C:
                  Business Associate/Data Use Agreement

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                                 AGREEMENT TERMS

1     PURPOSES

      Hythiam provides through its proprietary protocol for treatment of
substance abuse, its Data Reports (as defined in Section 4.2) and other
associated Hythiam intellectual property and Services (as defined in Section 4)
(collectively "LICENSED TECHNOLOGY") a process for use by health care providers
and others in treating patients with or suspected of addiction to opiates,
cocaine, and/or alcohol and related conditions. Hospital desires to be able to
offer to its patients and third party payers services that include use of the
Licensed Technology.

2     AUTHORITY AND RELATIONSHIP OF THE PARTIES

      Hospital and Hythiam are and shall remain independent contractors
throughout the Term. Nothing in this Agreement shall be construed to constitute
Hospital and Hythiam as partners, joint venturers, agents or anything other than
independent contractors.

3     HYTHIAM LICENSE

3.1   Grant of License Rights to Hospital

      Subject to the terms and conditions of this Agreement, Hythiam hereby
grants to and Hospital hereby accepts, a limited nontransferable, restricted,
non-exclusive, revocable, commercial license to operate and use the Licensed
Technology identified generally in more detail on Schedule A at the Hospital
location(s) identified on Schedule A for the purposes set forth on Schedule A
without the right to sublicense the foregoing rights ("HYTHIAM LICENSE").
Hospital acknowledges that (i) this Agreement does not transfer any interest in
the ownership or title of any portion of the Licensed Technology; and (ii)
Hospital does not own any portion of the Licensed Technology.

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3.2   Term of License

      The Hythiam License shall terminate simultaneously with the expiration or
termination for any reason of this Agreement.

3.3   License Restrictions

      Hospital may use all or any part of the Hythiam Licensed Technology only
for the purposes set forth in this Agreement. Without limiting the generality of
the foregoing, Hospital shall not, nor shall permit any third party to, (a)
copy, modify, market, reproduce, sell or distribute the Hythiam Licensed
Technology other than as actually necessary and then only in strict accordance
with this Agreement for delivery of patient care services and billing third
parties for reimbursement of those services; (b) make the Licensed Technology or
Services available to any Person, except Hospital Personnel or Staff Physicians
(as those terms are defined in Section 4.1) who have been authorized by Hythiam
in writing as set forth on Schedule A and who have been informed of by Hospital,
and are bound by, the terms and conditions of this Agreement; (c) modify or
create derivative works based upon the Licensed Technology; (d) rent, lease,
grant a security interest in, or otherwise transfer or attempt to transfer any
rights in or to the Licensed Technology; or (e) remove, alter or deface any
legends, restrictions, product identification, copyright, trademark or other
proprietary notices from the Licensed Intellectual Property.

3.4   Exclusivity

      Hythiam agrees that beginning on the Effective Date and continuing until
November 1, 2004, Hospital or any of its affiliates will be the sole hospitals
to which Hythiam grants a license to the Licensed Technology in the geographic
area defined on Schedule A.

3.5   Hospital Obligations

      Hospital shall (a) keep the Licensed Technology free and clear of any and
all claims, liens and encumbrances incurred or caused by Hospital, and (b) be
responsible for all the cost and all liability or risk of loss associated with
the use by Hospital of the Licensed Technology as contemplated by and in this
Agreement. THE RIGHTS SET FORTH IN THIS SECTION 3 REPRESENT HOSPITAL'S ONLY
RIGHTS WITH RESPECT TO THE USE OF ALL OR ANY PORTION OF THE LICENSED TECHNOLOGY.
ANY USE OF ALL OR ANY PORTION OF THE LICENSED TECHNOLOGY OUTSIDE THE SCOPE OF
SUCH RIGHTS IS STRICTLY PROHIBITED.

4     HYTHIAM SERVICES

4.1   Provision of Licensed Technology

      Hythiam will deliver to Hospital the Licensed Technology as set forth on
Schedule A. Only Hospital employees and non-physician independent contractors
(collectively "HOSPITAL PERSONNEL") or physicians practicing at Hospital ("Staff
Physicians") authorized by Hythiam as set forth on Schedule A shall have access
to or use the Licensed Technology.

4.2   Data Processing Services

      Hythiam has developed proprietary business processes that it uses to
process and report data generated from the use of the Licensed Technology ("DATA
REPORTS"). As part of the Services, Hythiam will collect treatment and outcomes
data on behalf of Hospital, including follow-up patient surveys, and will
provide, or arrange for the provision of, Data Reports to Hospital for treatment
performed by or on behalf of Hospital using the Licensed Technology, all as set
forth in more detail on Schedule A.

4.3   Education Services

      As part of the Services, Hythiam will provide education services as
reasonably necessary concerning the implementation and use of the Licensed
Technology.

4.4   Performance Standards

      Hythiam will provide the Licensed Technology as set forth in Section 4.1,
the Data Reports as set forth in Section 4.2 and the education services as set
forth in Section 4.3 (collectively "SERVICES") in a competent and timely manner,
and in compliance with all applicable laws and regulations.

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5     FINANCIAL TERMS

5.1   Licensing and Services Fees

      During the Term of this Agreement, Hospital shall arrange for the payment
by or on behalf of each individual treated using the Licensed Technology of the
Licensing and Services Fee ("FEES") to Hythiam as set forth on Schedule A.
During the Term the Fees may be modified only by mutual agreement of the
Parties. Any and all services requested by Hospital and provided by Hythiam
other than those set forth in Section 4 shall be subject to additional fees to
be agreed upon by the Parties.

5.2   Payment Terms

      Hythiam will provide Hospital with periodic (no less frequently than
monthly and no more frequently than every two weeks) reports and invoices
("INVOICES") for the Fees due Hythiam by mailing or delivering them to the
address and person identified on the first page of this Agreement. For Fees paid
by patients in cash in advance to Hospital, Hospital will pay Hythiam within
[H-01 TEXT DELETED--CONFIDENTIAL TREATMENT REQUESTED BY HYTHIAM, INC.] days
after receipt by Hospital of the cash payment. For Fees paid by third party
payers or by patients who do not pay in advance, Hospital will pay Hythiam
within [H-02 TEXT DELETED--CONFIDENTIAL TREATMENT REQUESTED BY HYTHIAM, INC.]
days after collection by Hospital of the Fees. Also, within [H-03 TEXT
DELETED--CONFIDENTIAL TREATMENT REQUESTED BY HYTHIAM, INC.] calendar days after
receipt by Hospital of each Invoice (1) for cases in which the Fee has been paid
to Hospital but not remitted to Hythiam, Hospital shall remit those Fees to
Hythiam; and (2) for cases in which Hythiam has received any amounts over and
above the Fees that should have been paid to Hospital, Hythiam will remit those
funds to Hospital. Notwithstanding any other provision of this Agreement,
Hythiam in no event or circumstance is or shall be responsible for any costs of,
or related to, patient care provided by Hospital, extended or unanticipated care
required for patients treated using the Licensed Technology or any Aftercare (as
that term is defined in defined in paragraph 8 on Schedule A).

5.3   Monthly Reconciliation

      To facilitate payment and compliance with the terms of this Agreement, the
Parties will meet no less frequently than monthly and no more frequently than
every two weeks for purposes of reconciling payments and fees. In preparation
for this meeting, Hospital shall provide Hythiam with a list of all patients
receiving treatment during the prior month utilizing the Licensed Technology and
Hythiam shall provide Hospital with a list of all fees it has received for
treatment during that same time period. Each Party will provide reasonable
access to its books and records regarding any and all detail reasonably
necessary to reconcile payments and ensure Hythiam receives the Fees in
compliance with this Agreement. In addition, Hospital will investigate and
resolve promptly and thoroughly any evidence that the Licensed Technology is
being used at Hospital in cases for which Hythiam is not receiving its Fee.

5.4   Managed Care Contracts

Hospital and Hythiam each will use best efforts to identify opportunities to
include reimbursement for treatment utilizing the Licensed Technology in, and
will use commercially reasonable efforts to negotiate amendments to, Hospital's
existing managed care contracts to (and to negotiate all future managed care
contracts to) arrange for inclusion of coverage for treatment utilizing the
Licensed Technology.

6     GOVERNING TERMS AND OBLIGATIONS

6.1   Use of Licensed Technology

      Hospital agrees that its use of the Licensed Technology will be in strict
accordance with the procedures and any training provided by Hythiam and will
comply with all applicable laws, rules and regulations and third party payer
requirements. Only Hospital Personnel or Staff Physicians who have received
training on the use of the Licensed Technology may use it and Hospital will
ensure (and provide Hythiam with evidence satisfactory to Hythiam) that all
Hospital Personnel or Staff Physicians who use any or all of the Licensed
Technology on its behalf are bound by the applicable terms of this Agreement and
will have and maintain, all training, licenses, approvals, certification,

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equipment and information necessary for them to safely and properly use the
Licensed Technology.

6.2   Clinical Activities

      The Licensed Technology and Services are provided by Hythiam to Hospital
and/or to any Hospital Personnel or Staff Physicians as additional points of
information and not, in whole or in part, as medical advice, diagnosis or
treatment recommendations. The Parties acknowledge and agree that Hythiam in
performing its obligations under this Agreement is providing technology and
technology services only and will not be delivering patient care and will not be
sponsoring or performing human subjects research. Hospital, as between the
Parties, and/or Staff Physicians, as appropriate consistent with applicable law,
control and are fully responsible for any and all patient care, Aftercare and/or
research activity delivered using the Licensed Technology. Hospital Personnel
and Staff Physicians shall at all times exercise their independent medical
judgments when treating patients, arranging for Aftercare or referring to other
providers, or performing research using the Licensed Technology.

6.3   Hospital charges

      Hospital charges for provision of care using the Licensed Technology are
set forth on Schedule A. During the Term these charges may be modified only by
mutual agreement of the Parties.

6.4   Billing and Collections

      In billing any charges to patients or third-party payers that include
clinical services or research activities performed using the Licensed Technology
or Services Hospital shall comply with the provisions of 18 U.S.C. ss. 1347,
with Medicare/Medicaid and other Federal Health Care Program billing
requirements, and with the False Claims Act, 31 U.S.C. ss. 3729, et seq., and
analogous state or local laws.

6.5   Subject Data

      Hospital shall provide to Hythiam for prompt downloading and/or processing
in an agreed upon format all patient data collected or maintained by Hospital,
Hospital Personnel or Staff Physicians with respect to each individual provided
care using all or part of the Licensed Technology ("SUBJECT DATA"). The Parties
shall execute the Business Associate/Data Use Agreement attached to this
Agreement, which shall govern the use and disclosure by Hythiam of the Subject
Data.

6.6   Patient Data Consents

      Hospital shall be solely responsible for obtaining any and all patient
consents, authorizations and/or IRB approvals required by applicable laws,
rules, regulations or policy for its use of the Licensed Technology and the
provision of the Subject Data to Hythiam in accordance with this Agreement.

7     INTELLECTUAL PROPERTY RIGHTS

7.1   Reservation of Rights

      All rights and licenses of any kind in the Licensed Technology and
Services not expressly granted in this Agreement are reserved exclusively to
Hythiam. There shall be no licenses by implication to the Hospital, any Hospital
Personnel or any Staff Physician under this Agreement, and Hospital agrees not
to attack or contest, in any way or in any forum, the validity, enforceability,
or Hythiam's ownership of, or rights in, the Licensed Technology and Services,
to the maximum extent permitted by law.

7.2   Preexisting Intellectual Property

      Except as expressly provided for in this Agreement, Hythiam and Hospital
shall each retain all Intellectual Property that they owned prior to the
Effective Date, and this Agreement shall not be interpreted or construed to
grant a Party any rights, title, interest or license in the other Party's
preexisting Intellectual Property.

7.3   Improvements Produced During Term

      Hythiam shall own all rights, title and interest in any Intellectual
Property related to, within the scope of or that enhances the Licensed
Technology made during the Term by Hythiam, the Hospital and/or Hospital
Personnel and/or any Staff Physician including without limitation, adaptations,
modifications, enhancements or changes to the Licensed Technology
("IMPROVEMENTS"). The Improvements shall be considered included in the

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definition of Licensed Technology for purposes of this Agreement, and the
Hospital, Hospital Personnel and Staff Physicians hereby assign all right, title
and interest in all Improvements to Hythiam. Hythiam shall have the right to
apply for copyrights, patents (including utility and design patents), or other
protection for such Improvements, and to enforce its rights in such
Improvements, anywhere in the world under its own name and at its own expense.
Hospital, Hospital Personnel and Staff Physicians agree to take all actions and
execute all documents at Hythiam's expense and as Hythiam may reasonably
request, to effectuate Hythiam's ownership of any such Improvements.

7.4   Use of Trademarks

      Each Party recognizes that the name, logo and trademarks of the other
Party represent valuable assets of such entity and that substantial recognition
and goodwill are associated with such assets. Each Party hereby agrees that
neither it nor any of its affiliates shall use the name, logo or any other
trademarks of the other Party without the prior written consent of the other
party, which may be withheld at the sole discretion of the other Party. No Party
will acquire any right, interest or license in any trademark or service mark of
the other Party by virtue of this Agreement. Where possible, Hospital will
approve the use of its name in documents for broad dissemination such that
Hythiam, once securing approval for use in a brochure or other document, will
not need to secure approval for each use of the brochure or document.

8     INDEMNIFICATION

8.1   Hythiam Indemnification of Hospital

      Hospital shall not be liable to Hythiam or its affiliates or any of their
respective officers, directors, employees or other agents for, and Hythiam shall
indemnify, defend and hold harmless Hospital and its directors, officers,
employees and agents (collectively, the "HOSPITAL INDEMNITEES") from and
against, any and all liabilities, losses, suits, claims, costs, expenses
(including reasonable attorneys fees and disbursements), interest, penalties,
fines, judgments and actual or direct damages of any kind whatsoever
(collectively "LOSSES") to the extent and proportion that such Losses relate to
or arise from (i) negligent acts or omission or willful misconduct of Hythiam or
any of the Hythiam Indemnitees (as that term is defined in Section 8.2); or (ii)
breach of this Agreement by the Hythiam Indemnitees. Notwithstanding other
provisions of this Section 8.1, Hospital Indemnitees shall not include
physicians who are not Hospital employees to the extent those physicians are
providing patient care, but shall include physicians who are not Hospital
employees to the extent those physicians are providing medical director or other
administrative services to or on behalf of Hospital.

8.2   Hospital Indemnification of Hythiam

Hythiam shall not be liable to Hospital or its affiliates or any of their
respective officers, directors, employees or other agents for, and Hospital
shall indemnify, defend and hold harmless Hythiam and its directors, officers,
employees and agents (collectively, the "HYTHIAM INDEMNITEES") from and against
any Losses to the extent and proportion that such Losses relate to or arise from
(i) negligent acts or omissions or willful misconduct of Hospital or any of the
Hospital Indemnitees; or (ii) breach of this Agreement by Hospital or any of the
Hospital Indemnitees.

9     CONFIDENTIALITY AND NON-DISCLOSURE

9.1   Confidential Information

      Hospital acknowledges and agrees that the Licensed Technology constitutes
valuable trade secrets and confidential information of Hythiam. Hospital agrees
that it shall take, and shall ensure that Hospital Personnel and Staff
Physicians shall take, all reasonable steps to preserve and protect the
confidentiality of such trade secrets and confidential information. Such trade
secrets and information shall be deemed "CONFIDENTIAL INFORMATION." In addition,
Confidential Information shall include the terms of this Agreement and all other
proprietary business information Hospital, Hospital Personnel or Staff
Physicians have received or receive from Hythiam or obtain as a result of use of
the Confidential Information.

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9.2   Non-Disclosure

      Hospital agrees to maintain as confidential the Confidential Information
and further agrees not to disclose the Confidential Information other than as
specifically permitted by this Agreement. At no time shall Hospital use, or
allow others to use or have access to, the Confidential Information for any
purpose other than performance of Hospital's obligations or exercise of
Hospital's rights under and in accordance with this Agreement or disclose the
Confidential Information to any third party without the prior written consent of
Hythiam, which may be withheld in its sole discretion, and then only after the
party to whom such disclosure will be made has agreed in writing to comply with
and be bound by the applicable terms of this Agreement, including but not
limited to this Section 9. In the event of any legal action or proceeding or
asserted requirement under applicable law or government regulations requesting
or demanding disclosure by Hospital of all or any part of the Confidential
Information, Hospital shall immediately notify Hythiam in writing of such
request or demand, the terms and circumstances surrounding such request or
demand, and the documents requested or demanded so that Hythiam may seek an
appropriate protective order or take other protective measures and/or waive
Hospital's compliance with the provisions of this Section 9. If in the absence
of a protective order or a waiver under this Section 9 from Hythiam, if
Hospital, in the reasonable opinion of Hospital's legal counsel, is compelled to
disclose any such Confidential Information or otherwise stand liable for
contempt or suffer other substantial penalty, Hospital may disclose such
Confidential Information as so required without liability under this Section 9;
provided, however, that Hospital: (a) shall give Hythiam written notice of the
Confidential Information to be so disclosed as far in advance of its disclosure
as is practicable; (b) shall furnish only that portion of the Confidential
Information which in the reasonable opinion of Hospital's counsel is legally
required; and (c) shall cooperate with Hythiam (at Hythiam's expense) to obtain
an order or other reliable assurance that confidential treatment will be
accorded to such Confidential Information.

10    TERMINATION

      This Agreement may be terminated prior to the expiration of the Term only
for Cause (as defined in this Section 10), which cause shall constitute an
"Event of Default." A termination for Cause must be effected by giving written
notice to the defaulting Party describing the Event of Default with reasonable
specificity and shall be subject to the cure periods set forth in this Section
10. In the event of termination of this Agreement for any reason, each Party
shall take all reasonable action and refrain from taking any action to the
extent necessary to mitigate that Party's damages arising from or related to the
termination.

10.1  Termination by Hospital

      Hospital shall have Cause for termination of this Agreement under the
following circumstances:

            10.1.1 If Hythiam shall apply for or consent to the appointment of a
      receiver, trustee or liquidator of all or substantially all of its assets,
      file a voluntary petition in bankruptcy or admit in writing the inability
      to pay its debts as they become due, make a general assignment for the
      benefit of creditors or take advantage of any insolvency law, subject to a
      thirty (30) day cure period after written notice of termination by
      Hospital;

            10.1.2 If Hospital finally determines to, takes diligent action to
      and does, close down and eliminate its provision of chemical dependency
      treatment services, subject to a 180 day advance written notice to Hythiam
      and subject to Hospital's written covenant that it will not reinstate its
      provision of such services for a period of at least two (2) years
      following termination.

            10.1.3 If Hospital presents reasonable evidence that continuation of
      the Agreement will result directly in a sustained lack of profitability to
      Hospital, subject to a 180 day advance written notice to Hythiam; or

            10.1.4 If Hythiam materially defaults in its performance of any of
      its material obligations under this Agreement, subject to a thirty (30)
      day cure period.

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10.2  Termination by Hythiam

      Hythiam shall have Cause for termination of this Agreement under the
following circumstances:

            10.2.1 If Hospital shall apply for or consent to the appointment of
      a receiver, trustee or liquidator of all or substantially all of its
      assets, file a voluntary petition in bankruptcy or admit in writing the
      inability to pay its debts as they become due, make a general assignment
      for the benefit of creditors or take advantage of any insolvency law,
      subject to a thirty (30) day cure period after written notice of
      termination by Hythiam;

            10.1.2 If Hospital loses its license to provide chemical dependency
      services;

            10.1.3 If Hythiam presents reasonable evidence that continuation of
      the Agreement will result directly in a sustained lack of profitability to
      Hythiam subject to 180 days advance written notice to Hospital;

            10.1.4 If Hospital materially defaults in its performance of any of
      its material obligations under this Agreement, subject to a thirty (30)
      day cure period.

11    DISCLAIMER OF WARRANTIES

      HOSPITAL ACKNOWLEDGES AND AGREES THAT THE LICENSED TECHNOLOGY AND SERVICES
PROVIDED, BEING LOANED, AND/OR LICENSED TO HOSPITAL ARE PROVIDED ON AN "AS IS"
AND "AS AVAILABLE" BASIS WITH NO WARRANTY OF ANY KIND. WITH RESPECT TO THIS
AGREEMENT HYTHIAM MAKES NO WARRANTIES, EXPRESS OR IMPLIED, INCLUDING WITHOUT
LIMITATION, ANY IMPLIED WARRANTIES OF MERCHANTABILITY, FITNESS FOR A PARTICULAR
PURPOSE, DATA ACCURACY, SYSTEM INTEGRATION, OR NON-INFRINGEMENT, REGARDING THE
LICENSED TECHNOLOGY OR ANY OTHER MATERIALS OR INFORMATION PROVIDED UNDER THIS
AGREEMENT. ADDITIONALLY, WITH RESPECT TO THIS AGREEMENT HYTHIAM MAKES NO
REPRESENTATIONS OF ANY KIND, EXPRESS OR IMPLIED, REGARDING THE SAFETY OR
EFFICACY OF THE LICENSED TECHNOLOGY, THAT THE LICENSED TECHNOLOGY WILL OPERATE
IN A MANNER THAT IS UNINTERRUPTED OR ERROR-FREE, OR REGARDING ANY OTHER SUBJECT
MATTER OF THE AGREEMENT.

12    LIMITATION OF LIABILITY

      SUBJECT TO SECTION 8, HYTHIAM ASSUMES NO LIABILITY OR RESPON-SIBILITY FOR
HOW HOSPITAL, ANY HOSPITAL PERSONNEL OR ANY STAFF PHYSICIAN USES THE LICENSED
TECHNOLOGY FOR OR IN CONNECTION WITH ANY DIAGNOSIS OR TREATMENT MADE OR PROVIDED
IN CONNECTION WITH OR RELIANCE ON THE LICENSED TECHNOLOGY, OR FOR INJURY TO
PERSONS OR PROPERTY ARISING FROM THE USE OF THE LICENSED TECHNOLOGY. NOT
WITHSTANDING ANY OTHER PROVISION OF THIS AGREEMENT, IN NO EVENT SHALL HYTHIAM
HAVE ANY LIABILITY FOR ANY INDIRECT, SPECIAL, CONSEQUENTIAL, PUNITIVE OR
EXEMPLARY DAMAGES OF ANY KIND, INCLUDING BUT NOT LIMITED TO LOST REVENUES OR
LOST PROFITS, LOSS OF BUSINESS OR GOODWILL OR LOSS OF DATA, IN ANY WAY ARISING
OUT OF, RELATED TO OR IN CONNECTION WITH THIS AGREEMENT, EVEN IF HYTHIAM HAS
BEEN ADVISED OR OTHERWISE HAS REASON TO KNOW OR KNOWS OF THE POSSIBILITY OF SUCH
DAMAGES. HOSPITAL FURTHER AGREES THAT IN NO EVENT WILL THE TOTAL AGGREGATE
LIABILITY OF HYTHIAM FOR ANY CLAIMS, LOSSES, OR DAMAGES ARISING UNDER THIS
AGREEMENT, WHETHER IN CONTRACT, TORT, PRODUCT LIABILITY, OR OTHERWISE, EXCEED
$[H-04 TEXT DELETED--CONFIDENTIAL TREATMENT REQUESTED BY HYTHIAM, INC.].

13    DEBARMENT OR EXCLUSION

      Each Party hereby represents and warrants that neither it, nor its
principals, officers, employees or agents providing services under this
Agreement, is and at no time has been excluded from participation in any
federally funded health care program, including Medicare and Medi-Cal. Each
Party hereby agrees to immediately notify the other Party of any threatened,

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proposed, or actual exclusion from any federally funded health care program,
including Medicare and Medi-Cal. In the event that either Party is excluded from
participation in any federally funded health care program during the term of
this Agreement, or if at any time after the Effective Date of this Agreement it
is determined that the excluded Party is in breach of this Section and this
Agreement shall, as of the effective date of such exclusion or breach,
automatically terminate.

14    GOVERNMENT ACCESS

If applicable, the Parties shall comply with the provisions of Section
1861(v)(1)(l) of the Social Security Act and shall make available, upon written
request of the Comptroller General of the United States or the Secretary of the
United States Department of Health and Human Services or any of their duly
authorized representatives, any books, documents and records that are necessary
to verify the nature and extent of the costs incurred by either Party under this
Agreement. In addition, each Party shall cooperate with the other Party and
provide reasonable access to books and records pertaining to this Agreement and
the performance of its obligations to the extent reasonably necessary for
compliance with any governmental agency review or audit of the other Party.

15    MISCELLANEOUS

15.1  Assignment

      Except as expressly provided in this Agreement, neither this Agreement nor
any right under this Agreement is assignable in whole or in part by either Party
without the prior written consent of the other Party, and any attempted
assignment without such consent shall be null and void, except that either Party
may assign its rights and obligations under this Agreement to its parent, a
subsidiary or other controlled affiliate, or to any successor entity without the
consent of the other Party by providing the other Party with notice of such
permitted assignment.

15.2  Complete Agreement

      This Agreement including any and all Schedules and attachments listed on
the first page of this Agreement, which are hereby incorporated by reference
into this Agreement, constitutes the complete and integrated understanding of
the Parties with respect to the subject matter of this Agreement and supersedes
all prior understandings and agreements, whether written or oral, with respect
to the same subject matter.

15.3  Amendment

      This Agreement may only be amended by a written agreement duly signed by
persons authorized to sign agreements on behalf of each Party.

15.4  Severability

      The Parties to this Agreement acknowledge and agree that it is their
intent and understanding that this Agreement complies with all applicable laws,
rules, regulations, court decisions and governmental restrictions (collectively
"LAWS AND REGULATIONS"), and that at all times they intend to be in compliance
with such laws and regulations. Should any term or provision of this Agreement
be deemed invalid or void or unenforceable either in its entirety or in a
particular application because it is in conflict with or violates any law or
regulation, the remainder of this Agreement shall nonetheless remain in full
force and effect and, if the subject term or provision is deemed to be invalid,
void or unenforceable only with respect to a particular application, such term
or provision shall remain in full force and effect with respect to all other
applications. In addition, the Parties agree to amend this Agreement to bring
this Agreement in compliance with said law or regulation. Notwithstanding the
foregoing, if the law or regulation is deemed by either Party to be so
materially adverse that, in either Party's reasonable judgment, the Agreement
cannot or should not be so modified; then after discussion and determination by
the Parties that it is so materially adverse, the Parties agree that, as a part
of the consideration of this Agreement, they will declare this Agreement null
and void and, except for the sections specifically surviving termination, of no
further force and effect; provided, however, if either Party intends to enforce
such declaration of termination but the other Party opposes termination (the
"OPPOSING PARTY"), then the Opposing Party may veto such termination so long as
the Opposing Party pays for the cost to comply with the law or regulation or
decision at issue (if compliance may be achieved by the payment of money alone),

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in which event this Agreement shall continue in full force and effect; and
provided further that this Section 15.4 shall not be construed as providing
either Party a basis for terminating this Agreement if the material adverse
effect results solely from a change in reimbursement levels as a result of a
change in law or regulation.

      15.5 Notwithstanding anything to the contrary set forth in this Agreement,
Sections 3, 5.2, 5.3, 6, 7, 8, 9, 11, 12 and 15 shall survive the termination of
this Agreement for a period of ten (10) years; provided that this ten year
limitation on survival is not intended to and does not give Hospital any rights
to or in the Licensed Technology following expiration of the ten years.

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                                   SCHEDULE A
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1.    DESCRIPTION OF LICENSED TECHNOLOGY TO BE PROVIDED TO HOSPITAL:

      Any and all Hythiam treatment protocols provided during the Term to
Hospital for rapidly administered neurological addiction recovery, including but
not limited to: Hythiam's Addiction Neuro-Restoration Detox System ("HANDS(TM)")
for Addictions; HANDS(TM) for Alcohol; HANDS(TM) for Cocaine; HANDS(TM) for
Crack Cocaine; HANDS(TM) for Poly-Drug; HANDS(TM) for Alcohol and Cocaine;
FITSM; HANDS(TM) for Opiates; U.S. Patent VO. 6,103,734; all materials and
information provided by Hythiam with respect to the protocols or patent; and all
related business processes; services; improvements or enhancements; U.S. or
international patents, patent filings or PCT applications; instructions,
brochures, manuals, or labels; analyses, data compilations, databases, or Data
Reports.

2.    LOCATION FOR USE OF LICENSED TECHNOLOGY:

      Little Company of Mary - San Pedro Hospital
      1300 West Seventh Street
      San Pedro, CA 90732

3.    AUTHORIZED PURPOSES FOR USE OF LICENSED TECHNOLOGY:

      For provision of substance abuse and/or addiction treatment only in
accordance with the terms of this Agreement.

4.    AUTHORIZATION TO BE PROVIDED BY HYTHIAM:

      Hythiam will designate each individual authorized to use the Licensed
Technology upon the execution by qualified individuals of confidentiality and
proprietary information agreements with Hythiam (each an "Authorized User"). The
list of Authorized Users is set forth on Schedule B, as amended from time to
time. Unless a shorter period is specified in writing by Hythiam, during the
Term each Authorized User must undergo reauthorization at least every
twenty-four (24) months ("Authorized Period"). Any Hospital Personnel or Staff
Physicians who are not reauthorized within the specified time frame must
immediately cease any and all use of the Licensed Technology at the end of the
Authorized Period. Notwithstanding the foregoing, all Hospital Personnel and
Staff Physicians must immediately cease any and all use of the Licensed
Technology upon termination of this Agreement for any reason.

5.    TERMS FOR PROVISION BY HOSPITAL OF SUBJECT DATA TO HYTHIAM:

      Hospital will provide Hythiam access to its files and records to the
extent reasonably necessary for Hythiam to access and make use of the Subject
Data in compliance with all applicable laws and this Agreement.

6. TERMS FOR PROVISION BY HYTHIAM OF DATA REPORTS TO HOSPITAL:

            Hythiam will provide data aggregation services to Hospital in
      accordance with the HIPAA Privacy Rule, including the following reports:
      Pre-registration intake of demographic and financial information; Brief
      clinical screening data; [H-05 TEXT DELETED--CONFIDENTIAL TREATMENT
      REQUESTED BY HYTHIAM, INC.]; Patient and Hospital satisfaction surveys;
      Identification and assessment of counseling services outside the Hospital
      service area.

                                       10
<PAGE>

The list of data aggregation reports may be modified or expanded upon agreement
of the parties, including for additional fees. Notwithstanding any other
provision of this Agreement, Hospital may share the Data Reports internally for
its own internal business purposes.

7.    GEOGRAPHIC EXCLUSIVITY AREA

The exclusive area provided to San Pedro Peninsula Hospital by Hythiam in
accordance with Section 3.4 is set forth below.

The exclusive area shall consist of the [H-06 TEXT DELETED--CONFIDENTIAL
TREATMENT REQUESTED BY HYTHIAM, INC.] and shall extend west to include [H-07
TEXT DELETED--CONFIDENTIAL TREATMENT REQUESTED BY HYTHIAM, INC.]. The exclusive
shall also include the area east of [H-08 TEXT DELETED--CONFIDENTIAL TREATMENT
REQUESTED BY HYTHIAM, INC.], and south and east of the [H-09 TEXT
DELETED--CONFIDENTIAL TREATMENT REQUESTED BY HYTHIAM, INC.]. The area is located
within the perimeter demarcated by intersection of the [H-10 TEXT
DELETED--CONFIDENTIAL TREATMENT REQUESTED BY HYTHIAM, INC.] Freeway ([H-11 TEXT
DELETED--CONFIDENTIAL TREATMENT REQUESTED BY HYTHIAM, INC.]) and [H-12 TEXT
DELETED--CONFIDENTIAL TREATMENT REQUESTED BY HYTHIAM, INC.] Road taking [H-13
TEXT DELETED--CONFIDENTIAL TREATMENT REQUESTED BY HYTHIAM, INC.] Road south to
the intersection of [H-14 TEXT DELETED--CONFIDENTIAL TREATMENT REQUESTED BY
HYTHIAM, INC.] Road and the Pacific Coast Highway; the intersection of the [H-15
TEXT DELETED--CONFIDENTIAL TREATMENT REQUESTED BY HYTHIAM, INC.] and [H-16 TEXT
DELETED--CONFIDENTIAL TREATMENT REQUESTED BY HYTHIAM, INC.] freeway traveling
east on the [] until it intersects with highway [H-17 TEXT DELETED--CONFIDENTIAL
TREATMENT REQUESTED BY HYTHIAM, INC.]; traveling south on highway [H-18 TEXT
DELETED--CONFIDENTIAL TREATMENT REQUESTED BY HYTHIAM, INC.] until it intersects
with highway 90; traveling west on highway 90 until it intersects with highway
39 (Beach Blvd); traveling south on highway 39 until it intersects with the
Pacific Coast Highway. See the attached map(s).

8.    LICENSE AND SERVICES FEE:

      Use of Licensed Technology for:

      Each episode of Treatment for alcohol dependency-- $[H-19 TEXT
DELETED--CONFIDENTIAL TREATMENT REQUESTED BY HYTHIAM, INC.].
      Each episode of Treatment for psycho stimulant (cocaine) dependency--
$[H-20 TEXT DELETED--CONFIDENTIAL TREATMENT REQUESTED BY HYTHIAM, INC.].

                                       11
<PAGE>

      Each episode of Treatment for opiate dependency--$[H-21 TEXT
DELETED--CONFIDENTIAL TREATMENT REQUESTED BY HYTHIAM, INC.].

      The License and Services fees set forth in this paragraph 8 do not include
costs for any services other than those set forth in Section 4 and do not
include any Aftercare or other services required or requested as a result of any
extended stays, complications or subsequent episodes of treatment, the total
cost for which as between the Parties is the responsibility of Hospital. For
purposes of this Agreement, Aftercare shall mean any and all related follow-up
care, recovery care, services, referrals or consultations.

9.    HOSPITAL CHARGES

      Each episode of Treatment for alcohol dependency, with Aftercare--$[H-22
TEXT DELETED--CONFIDENTIAL TREATMENT REQUESTED BY HYTHIAM, INC.].
      Each episode of Treatment for psycho stimulant (cocaine) dependency, with
Aftercare--$[H-23 TEXT DELETED--CONFIDENTIAL TREATMENT REQUESTED BY HYTHIAM,
INC.].

      Each episode of Treatment for opiate dependency, with Aftercare--$[H-24
TEXT DELETED--CONFIDENTIAL TREATMENT REQUESTED BY HYTHIAM, INC.].

      As part of its education services Hythiam will provide a list of Aftercare
providers or agencies that are familiar with the requirements for recovery
follow-up on treatment using the Licensed Technology. This list is for
information purposes only and Hythiam does not endorse or recommend any specific
provider. In the alternative, Hospital may contract with Hythiam to arrange for
Aftercare on its behalf. In the event Hospital does not arrange for Aftercare,
does not contract with Hythiam to arrange for Aftercare on its behalf or is
unable to arrange for Aftercare in compliance with applicable laws or
regulations, the charges set forth in this paragraph 9 shall each be reduced by
$[H-25 TEXT DELETED--CONFIDENTIAL TREATMENT REQUESTED BY HYTHIAM, INC.].

      Any Hospital charges for extended stays, complications or follow-on care
or treatment shall be in accordance with Hospital's normal and customary
charges. Except for reconciliations of payments received in error as set forth
in Section 5, Hythiam shall have no responsibility for payment of any Hospital
costs or charges for any reason.

o     For purposes of this Agreement, an episode of care shall include: Alcohol
      dependency- [H-26 TEXT DELETED--CONFIDENTIAL TREATMENT REQUESTED BY
      HYTHIAM, INC.] administrations of the protocol provided during a [H-27
      TEXT DELETED--CONFIDENTIAL TREATMENT REQUESTED BY HYTHIAM, INC.] night
      stay.

o     Psycho-stimulant dependency- [H-28 TEXT DELETED--CONFIDENTIAL TREATMENT
      REQUESTED BY HYTHIAM, INC.] administrations of the protocol provided
      during an aggregate of [H-29 TEXT DELETED--CONFIDENTIAL TREATMENT
      REQUESTED BY HYTHIAM, INC.] nights ([H-30 TEXT DELETED--CONFIDENTIAL
      TREATMENT REQUESTED BY HYTHIAM, INC.] nights for the initial treatment
      plus a follow-up treatment [H-31 TEXT DELETED--CONFIDENTIAL TREATMENT
      REQUESTED BY HYTHIAM, INC.] weeks later requiring a [H-32 TEXT
      DELETED--CONFIDENTIAL TREATMENT REQUESTED BY HYTHIAM, INC.] night stay).

o     Opiate dependency- [H-33 TEXT DELETED--CONFIDENTIAL TREATMENT REQUESTED BY
      HYTHIAM, INC.] administration of the protocol in the operating room with a
      [H-34 TEXT DELETED--CONFIDENTIAL TREATMENT REQUESTED BY HYTHIAM, INC.]
      night stay

                                       12
<PAGE>

                                   SCHEDULE B

                                AUTHORIZED USERS

Blair ContraTto, ceo

                                       13
<PAGE>

                                   SCHEDULE C
                                   ----------

                    BUSINESS ASSOCIATE AND DATA USE AGREEMENT

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

                   LITTLE COMPANY OF MARY - SAN PEDRO HOSPITAL
                                       AND
                                  HYTHIAM, INC.

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

This Business Associate Agreement ("B.A. Agreement"), effective as of
___________, 2003 ("Effective Date"), is entered into by and between San Pedro
Peninsula Hospital, d.b.a. Little Company of Mary-San Pedro Hospital ("Covered
Entity") and Hythiam, Inc. ("Hythiam") (each a "Party" and collectively the
"Parties").

1.    BACKGROUND AND PURPOSE. The Parties have entered or are entering into an
      agreement for the provision by Hythiam of technology and services to
      Covered Entity ("Agreement"). Performance of the Agreement may involve
      Protected Health Information (as defined in 45 C.F.R. ss.164.501) ("PHI")
      subject to the federal privacy regulations issued pursuant to the Health
      Insurance Portability and Accountability Act ("HIPAA") and codified at 45
      C.F.R. parts 160 and 164 ("Privacy Rule"). The purpose of this B.A.
      Agreement is to amend the Agreement to the extent and only to the extent
      necessary to allow for Covered Entity's compliance with the Privacy Rule.

2.    DEFINITIONS. Unless otherwise defined in this B.A. Agreement, all
      capitalized terms used in this B.A. Agreement have the meanings ascribed
      in HIPAA and/or the Privacy Rule.

3.    OBLIGATIONS OF THE PARTIES WITH RESPECT TO PHI.

3.1   Uses and Disclosures of PHI by Hythiam. Except as otherwise specified in
      this B.A. Agreement, Hythiam may make any and all uses and disclosures of
      PHI necessary to perform and enforce the Agreement. In addition, unless
      otherwise limited in this B.A. Agreement, Hythiam may (a) use the PHI in
      its possession for its proper management and administration and to carry
      out the legal responsibilities of Hythiam; (b) disclose the Minimum
      Necessary information in its possession to a third party for the purpose
      of Hythiam's proper management and administration or to carry out the
      legal responsibilities of Hythiam, provided, that such disclosure is
      required by law or Hythiam obtains reasonable assurances from the third
      party regarding the confidential handling of such PHI as required under
      the Privacy Rule; (c) provide Data Aggregation services relating to the
      health care operations of the Covered Entity; (d) use the PHI to create a
      Limited Data Set ("LDS"), the use and disclosure of which shall be
      governed by the Data Use Agreement set forth in Section 5 of this B.A.
      Agreement and by the Privacy Rule; and (e) de-identify any and all PHI
      obtained by Hythiam under this B.A. Agreement, and use such de-identified
      data, all in accordance with the de-identification requirements of the
      Privacy Rule.

3.2   Obligations of Hythiam. With regard to its use and/or disclosure of PHI
      that is not in an LDS, Hythiam agrees to:

            a.    not use or further disclose the PHI other than as permitted or
                  required by this B.A. Agreement or as Required By Law;

            b.    use appropriate safeguards to prevent use or disclosure of PHI
                  other than as permitted in Section 3.2(a);

                                       14
<PAGE>

            c.    report to Covered Entity in writing any use or disclosure of
                  PHI not permitted in Section 3.2(a) of which Hythiam's
                  management becomes aware and, to the extent practicable,
                  minimize harmful effects of that use or disclosure;

            d.    ensure that any agents and subcontractors to which Hythiam
                  provides PHI agree to the same restrictions and conditions
                  that apply to Hythiam with respect to such PHI;

            e.    make available within twenty (20) days after request by the
                  Covered Entity PHI necessary for Covered Entity to respond to
                  an Individuals' request for access to PHI about them in the
                  event that the PHI in Hythiam's possession constitutes a
                  Designated Record Set;

            f.    make available PHI for amendment and incorporate within ten
                  (10) days after request by Covered Entity any amendments to
                  the PHI in accordance with the Privacy Rule in the event that
                  the PHI in Hythiam's possession constitutes a Designated
                  Record Set;

            g.    document such disclosures of PHI as would be required for
                  Covered Entity to respond to a request by an Individual for an
                  accounting of disclosures in accordance with 45 CFR ss.
                  164.528 and provide, within 20 days after Covered Entity
                  requests the information in writing, an accounting of any
                  disclosures of PHI for up to the six-year period preceding the
                  date of the request for an accounting that includes the date
                  of the disclosure, the name and address of the person or
                  entity to whom the PHI was disclosed, a brief description of
                  the PHI disclosed and a brief statement of the purpose of the
                  disclosure and an explanation of the basis for the disclosure;

            h.    make its internal practices, books and records relating to the
                  use and disclosure of PHI available to the Secretary of HHS
                  within a reasonable timeframe as required by the Secretary for
                  purposes of determining Covered Entity's compliance with the
                  Privacy Rule; and

            i.    return to Covered Entity or destroy, within ninety (90) days
                  of the termination of this B.A. Agreement, the PHI in its
                  possession as a result of the Agreement and retain no copies,
                  if it is feasible to do so. If Hythiam in its discretion
                  determines that return or destruction is infeasible, Hythiam
                  agrees to extend all protections contained in this B.A.
                  Agreement to Hythiam's use and/or disclosure of any retained
                  PHI, and to limit any further uses and/or disclosures to the
                  purposes that make the return or destruction of the PHI
                  infeasible. Notwithstanding the foregoing, this Section 3.2(i)
                  shall not apply to any PHI in an LDS, the use and disclosure
                  of which shall be governed by Section 5 of this B.A.
                  Agreement.

3.3   Obligations of Covered Entity. Covered Entity agrees to timely notify
      Hythiam in writing of any arrangements between Covered Entity and the
      individual that is the subject of PHI that may impact in any manner the
      use and/or disclosure of that PHI by Hythiam under this B.A. Agreement.

3.4   Effect of Changes to the Privacy Rule. To the extent that any relevant
      provision of the Privacy Rule is materially amended in a manner that
      changes the obligations of Business Associates or Covered Entities that
      are embodied in the terms of this B.A. Agreement, the Parties agree to
      negotiate in good faith appropriate amendment(s) to this B.A. Agreement to
      give effect to these revised obligations.

                                       15
<PAGE>

4.    TERMINATION BY COVERED ENTITY. With respect to the Agreement, upon Covered
      Entity's knowledge of a material breach of the terms of this B.A.
      Agreement by Hythiam, Covered Entity shall provide Hythiam written notice
      of that breach in sufficient detail to enable Hythiam to understand the
      specific nature of that breach and afford Hythiam an opportunity to cure
      the breach. If Hythiam fails to cure the breach within a reasonable time
      specified by Covered Entity (in any event not less than ten (10) days and
      if Hythiam is making reasonable efforts to cure, Covered Entity may extend
      the cure period to allow for that cure), Covered Entity may terminate this
      B.A. Agreement as well as terminate those portions, but only those
      portions, of the Agreement that, by their express terms, require or permit
      Hythiam access to PHI and only to the extent of that requirement or
      permission. In such instance, the remaining provisions of the Agreement
      that do not, by their express terms, require or permit Hythiam access to
      PHI shall remain in full force and effect, including any and all of
      Covered Entity's payment and performance obligations (to the extent any
      such performance obligations do not require Hythiam access to PHI);
      provided that, notwithstanding the foregoing, Covered Entity shall be
      entitled to terminate the Agreement in its entirety if and to the extent
      that the overall intent and purpose of the Agreement (i) is directly and
      materially related to and dependent upon Hythiam access to PHI, and (ii)
      would be frustrated if Covered Entity were not permitted to terminate the
      Agreement. In addition, if Hythiam, in its sole discretion, can perform
      the Agreement with information that has been de-identified under the
      Privacy Rule or with an LDS, the Agreement will remain in full force and
      effect, except with respect to, and only with respect to, those provisions
      that require or permit Hythiam access to PHI that is not in an LDS, which
      provisions shall be deemed modified to provide Hythiam access to PHI that
      has been de-identified under the Privacy Rule and access to PHI in an LDS.

5.    DATA USE AGREEMENT.

5.1   Preparation of the LDS. Hythiam may prepare an LDS in accordance with the
      Privacy Rule and Section 3.1(d) of this B.A. Agreement.

5.2   Minimum Necessary Data. In preparing the LDS, Hythiam will include only
      those data fields which are the minimum necessary to accomplish the
      purposes set forth in Section 5.3 of this B.A. Agreement.

5.3   Permitted Uses and Disclosures of the LDS. Hythiam may use the LDS for its
      Research and Public Health activities, for the Health Care Operations of
      Covered Entity, and as Required By Law. Hythiam may disclose the LDS for
      the same purposes in accordance with the Privacy Rule.

5.4   Responsibilities of Hythiam. With regard to its use and/or disclosure of
      the LDS, Hythiam agrees to:

            a.    not use or further disclose the LDS other than as permitted by
                  Section 5.3 of this B.A. Agreement;

            b.    use appropriate safeguards to prevent use or disclosure of the
                  LDS other than as permitted by Section 5.3 of this B.A.
                  Agreement;

            c.    report to Covered Entity in writing any use or disclosure of
                  the LDS that is not permitted by Section 5.3 of this B.A.
                  Agreement of which Hythiam's management becomes aware and, to
                  the extent practicable, minimize harmful effects of that use
                  or disclosure;

            d.    ensure that any agents, subcontractors, or other third parties
                  to which Hythiam provides the LDS agree to the same
                  restrictions and conditions that apply to Hythiam with respect
                  to such LDS; and

            e.    not use the information in the LDS to identify or contact
                  individuals who are the data subjects.

                                       16
<PAGE>

6.    MISCELLANEOUS.

6.1   Agreement. The Agreement is hereby amended to incorporate the terms of
      this B.A. Agreement. The terms of this B.A. Agreement shall prevail in the
      case of any conflict with the terms of the Agreement to the extent and
      only to the extent necessary to allow Covered Entity to comply with the
      Privacy Rule.

6.2   Survival. With respect to the Agreement, Sections 1, 2, 3.2, 3.3, 3.4,
      4.and 6 of this B.A. Agreement shall survive termination of this B.A.
      Agreement and continue indefinitely solely with respect to PHI Hythiam
      retains in accordance with Section 3.2.i. With respect to the Agreement,
      Section 5 of this B.A. Agreement shall survive termination of this B.A.
      Agreement and continue indefinitely solely with respect to any LDS that
      Hythiam possesses.

6.3   No Third Party Beneficiaries. Nothing in this B.A. Agreement shall confer
      upon any person other than the Parties and their respective successors or
      assigns, any rights, remedies, obligations, or liabilities whatsoever.

IN WITNESS WHEREOF, each of the undersigned has caused this B.A. Agreement to be
duly executed in its name and on its behalf.

LITTLE COMPANY OF MARY-SAN PEDRO        HYTHIAM, INC.
HOSPITAL

By:                                     By:
     -------------------------------         -----------------------------

Print Name:                             Print Name:
            ------------------------                ----------------------

Print Title:                            Print Title:
            ------------------------                ----------------------

                                       17Exhibit 10.1
Agreement with Lam Ko Chau

                    EMPLOYMENT AND NON-COMPETITION AGREEMENT

This  AGREEMENT,  effective  as of the 21st day of  April  2004,  is made by and
between Liska Biometry, Inc., a Florida corporation (the "Company"),  and LAM KO
CHAU, a resident of the province of Ontario (the "Executive").

                                    RECITALS

      A.    The  Company  is in  the  business  of  developing  a  Finger  Print
            Biometrics business (the "Business");

      B.    The Company desires to retain the services of the Executive;

      C.    The Executive is willing to be employed by the Company; and

      D.    The parties  hereto desire to enter into this  Agreement in order to
            set forth the respective rights, limitations and obligations of both
            the  Company  and the  Executive  with  respect  to the  Executive's
            employment  with the  Company,  the  Confidential  Information,  the
            Discoveries, and the other matters set forth herein.

      NOW THEREFORE,  in consideration of the employment of the Executive by the
Company,  the compensation  paid to the Executive and the Company  continuing to
provide Confidential  Information to the Executive,  as well as the other mutual
promises and consideration hereinafter contained, the receipt and sufficiency of
which are hereby acknowledged, the parties hereto agree as follows:

1.    TERM.

Subject to the provisions for termination  hereinafter provided, the Executive's
employment  hereunder  shall  commence  on the first day of the month  after the
Company receives  funding in the amount of US$ 100,000 (the  "Employment  Date")
and unless otherwise extended,  end one year after the Employment Date commences
(the  "Contract  Termination  Date").  The  Contract  Termination  Date shall be
automatically  extended for a successive  one (1) year period at the end of each
contract year unless the Board of Directors of the Company (the  "Board")  shall
give  contrary  notice to the  Executive,  pursuant  to the terms of  Section 11
below,  at least ninety (90) days prior to the end of the each contract year. In
the event that the Company does not receive funding in the amount of $100,000 on
or before December 31, 2004, this agreement shall become null and void.

2.    POSITION AND DUTIES.

      During the Employment  Term, the Executive shall serve as  PRESIDENT/CHIEF
EXECUTIVE OFFICER. The Executive will report to the Company's Board of Directors
as required by law and by the Company's governance policy in effect from time to
time,  and perform such  employment  duties,  consistent  with his position,  as
specified  in  the  Job  Description..  The  Executive  shall  devote  his  full
productive time,  energy and ability to the proper and efficient  conduct of the
Company's business.  The Executive may only devote reasonable periods of time to
service as a Director of other  businesses,  with the prior written approval and
consent of the Board of  Directors,  to the extent  that such  service  does not
interfere with the  performance of his  obligations  hereunder.  Similarly,  the
Executive  may engage in such  charitable  or community  activities as shall not
interfere with the performance of his obligations hereunder. The Executive shall
observe  and comply with all lawful and  reasonable  rules of conduct set by the
Board for executives of the Company, and shall endeavor to promote the business,
reputation and interests of the Company.

                                       16
<PAGE>

3.    COMPENSATION.

      (A)   BASE COMPENSATION.

      As defined in further detail below, during the Employment Term the Company
      shall pay the Executive a Base Compensation,  subject to annual review, as
      the Board, in its sole discretion,  may determine.  The Base  Compensation
      shall be paid in CANADIAN  DOLLARS in accordance with the Company's normal
      payroll  practices.  The Base  Compensation paid to the Executive shall be
      SEVENTY THREE THOUSAND (C$ 73,000) per year, payable bi-weekly in arrears.

      OTHER COMPENSATION.

      (i)   Annual  Bonus:   The  Executive  shall  be  eligible  to  receive  a
            Performance   Bonus  (the  "Bonus")  for  the   achievement  of  the
            performance goals as determined by the Board, and dependent upon the
            financial  performance of the Company.  The annual bonus may be paid
            in cash,  free trading  stock,  restricted  stock,  or a combination
            thereof.

      (ii)  The  Executive  shall be granted  100,000 free  trading  shares upon
            signing of this agreement.

      (iii) The Executive shall be granted 500,000 restricted common shares upon
            signing of this agreement. The Executive and the Company acknowledge
            that these  restricted  shares of common  stock have no fair  market
            value at this time. The Company cannot guarantee that this situation
            will change in the foreseeable  future.  The Executive  acknowledges
            that he has no claim on the Company for any  valuation of restricted
            common  shares  received  in this  regard.  In the event  that it is
            conclusively  determined by Canada Customs and Revenue Agency or the
            Ontario Ministry of Revenue that this  compensation has consequences
            that are materially  adverse to the interests of the Executive,  the
            Executive  may elect to waive his  entitlement  to such  shares with
            retroactive  effect,  in which  case the  Company  shall  award  the
            Executive  an equal  number of stock  options  under the  prevailing
            terms of the  Company's  Employee  Stock  Option Plan at an exercise
            price  equal to the  value  established  by the  Company's  Board of
            Directors  to  represent  fair value of the shares as of the date of
            execution of this agreement.

      (iv)  The  Executive  shall be  eligible  to  participate  in any  Company
            incentive  plan  established  by the  Company  under  the  terms and
            conditions of the Plan.

      (B)   EXPENSES.

      The Executive  shall be entitled to receive prompt  reimbursement  for all
      reasonable   business  expenses  (exclusive  of  any  commuting  expenses)
      incurred by him in the course of his employment by the Company.

      (C)   OTHER BENEFITS.

      (i)  Insurance:  The  Executive  shall be  entitled to  participate  in or
      receive  benefits  on the same basis as other  executive  officers  of the
      Company under any employee  benefit plans and  arrangements  applicable to
      senior   management   including   life   insurance   plans,   pension  and
      profit-sharing  plans,  medical and health plans or other employee welfare
      benefit plans,  annual paid vacation,  sick leave, sick pay and short-term
      and long-term disability benefits and holidays,  as in effect from time to
      time.

      (ii) Vacation:  The Executive shall be entitled to receive three (3) weeks
      of paid vacation per contract year,  which shall accrue from April 1, 2003
      to recognize the efforts of the executive in the founding of the Company's
      business.  Such  vacation days shall accrue and become vested on the first
      anniversary day of each year of the Employment Term. This benefit shall be
      reviewed by the Board of Directors and the Executive from time to time and
      increased when appropriate.

      (iii) Holidays:  The Executive shall be entitled to the designated Company
      holidays.

                                       17
<PAGE>

4.    TERMINATION.

      The  Executive's  employment by the Company  pursuant hereto is subject to
termination during the Employment Term as follows:

      (A) DEATH. The Executive's  employment  hereunder shall terminate upon his
death. In such event, the Executive's Base  Compensation and any prorated amount
of the Bonus, if any, shall be paid through the date of the  Executive's  death.
Eligibility  for all  other  benefits  shall be  determined  by the terms of any
applicable plan or program.

      (B)  DISABILITY.  The  Company  may, by written  notice to the  Executive,
terminate  the  Executive's  employment  if,  as a  result  of  the  Executive's
incapacity  due to physical or mental  illness,  the  Executive  shall have been
absent from his duties hereunder for ninety (90) consecutive days or for a total
of one  hundred  eighty  (180)  days in any three  hundred  sixty five (365) day
period  (the  "Disability  Period").  In the  event  of  such  termination,  the
Executive  shall  receive  the same  benefits  payable  in the  event of  death;
provided  however that, if the Company  should adopt a disability  policy at any
time during the Employment Term, the terms of such policy shall govern.

      (C)  TERMINATION  BY  THE  COMPANY  FOR  CAUSE  OR  EXECUTIVE'S  VOLUNTARY
TERMINATION.  The  Company  shall  be  entitled  to  terminate  the  Executive's
employment  at any time,  by written  notice to the  Executive,  for  Cause,  as
defined herein:

            (i) fraud or embezzlement on the part of the Executive;

            (ii)  conviction of or the entry of a plea of nolo contendere by the
      Executive to any felony or other crime of fraud or moral turpitude;

            (iii) any act of willful or negligent  misconduct  by the  Executive
      which is either intended to result in substantial  personal  enrichment of
      the Executive at the expense of the Company or any of its  subsidiaries or
      affiliates, or has a material adverse impact on the business or reputation
      of the Company,  any of its  subsidiaries  or affiliates,  or directors or
      other officers (such  determination  to be made by the Company's  Board of
      Directors in the good faith exercise of its reasonable judgment); or

      In the event of termination for Cause, the Executive's  Base  Compensation
and other benefits  shall be paid through the Date of Termination  (as hereafter
defined),  and the Executive  shall have no further  rights to  compensation  or
benefits  other  than as  determined  by the  terms  of any  applicable  plan or
program.  The  Executive  shall not be  eligible  to receive  any portion of his
Annual Bonus.

      The Executive may terminate his  employment  hereunder  voluntarily at any
time with ninety  (90) day's  written  notice to the Board.  In the event of the
Executive's  voluntary  termination,  the Executive shall be entitled to receive
his Base  Compensation and prorated Bonus, if any, and benefits through the Date
of Termination.

      (D) WITHOUT CAUSE. The Company may terminate the Executive's employment at
any time by giving  written  notice to the  Executive of its intent to terminate
this Agreement without Cause. In such event:

            (i) the Executive shall be paid his Base Compensation,  any prorated
      Bonus and  other  benefits  to which the  Executive  is  entitled  for the
      remainder of the  Employment  Term,  provided  that the Base  Compensation
      shall  represent  not  less  than  3  months  pay in  lieu  of  notice  of
      termination;

            (ii) all stock options held by the Executive  under any stock option
      plan of the Company  shall  become  fully  exercisable,  and shall  remain
      exercisable  for a period of 180 days  following the Date of  Termination;
      and

            (iii) the  Executive  shall have such other rights in respect of any
      incentive,  other  compensation  plan or benefit plan or program as may be
      set forth in such plan or program.

                                       18
<PAGE>

      (E)  CHANGE  IN  CONTROL.  Notwithstanding  any  other  provision  of this
Agreement,  should a "change in control" occur, the Employee, at his sole option
and  discretion,  may terminate his employment  under this Agreement at any time
within one (1) year after such change of control  upon fifteen (15) days notice.
In the event of such termination,  Company shall pay to the Employee a severance
payment  ("Severance  Payment")  equal to three  (3)  times  the base  amount as
defined in  PARAGRAPH  3(A) ABOVE.  The amount  determined  under the  foregoing
provisions  of this  SECTION  4(E)  shall be payable no later than one (1) month
after the effective date of the Employee's  termination of employment.  A change
in control means: the  acquisition,  without the approval of the Company's board
of directors, by any person or entity, other than Company or a "related entity,"
of more than twenty percent (20%) of the outstanding  shares of Company's voting
common  stock  through  a  tender  offer,  exchange  offer  or  otherwise;   the
liquidation or dissolution of the Company  following a sale or other disposition
of all or substantially  all of its assets; a merger of consolidation  involving
the  Company  which  results  in the  Company  not  being the  surviving  parent
corporation; or any time during any two-year (2) period in which individuals who
constituted  the board of  directors  of Company at the start of such period (or
whose  election was approved by at least  two-thirds  of the then members of the
board of  directors  of Company  who were  members at the start of the  two-year
period) do not  constitute at least fifty (50%) of the board of  directors,  for
any reason. A related entity is the parent, a subsidiary or any employee benefit
plan  (including  a trust  forming  a part of  such a  plan)  maintained  by the
Company, its parent or a subsidiary.

      (F) DATE OF  TERMINATION.  The date upon which a  termination  pursuant to
this Section 4 becomes  effective  (the "Date of  Termination"  or  "Termination
Date") shall be: the date upon which the party  terminating this Agreement gives
the other party written notice thereof in accordance with Section 11 hereof.

5.    CONFIDENTIAL INFORMATION.

      (a) The  Executive  recognizes  that the  services to be  performed by him
hereunder  are  special,  unique and  extraordinary  and that,  by reason of his
employment  with  the  Company,  he may  acquire  Confidential  Information  (as
hereinafter  defined)  concerning  the  operation  of the  Company,  the  use or
disclosure  of which would cause the Company  substantial  loss and damage which
could  not be  readily  calculated  and for  which  no  remedy  at law  would be
adequate.  Accordingly,  the  Executive  agrees  that he will not  (directly  or
indirectly) at any time, whether during or after the Employment Term:

            (i) knowingly use for an improper  personal benefit any Confidential
Information  that he may learn or has learned by reason of his  employment  with
the Company; or

            (ii) disclose any such Confidential Information to any person except
(A) in the  performance  of his  obligations  to the Company  hereunder,  (B) as
required  by a court  of  competent  jurisdiction,  (C) in  connection  with the
enforcement of his rights under this Employment  Agreement or (D) with the prior
consent of the Board.

      As used  herein,  "Confidential  Information"  includes  information  with
respect  to the  Company's  facilities  and  methods,  trade  secrets  and other
intellectual  property,  systems,  patents and patent applications,  procedures,
manuals, confidential reports, financial information,  business plans, prospects
or  opportunities,  personnel  information  or lists of customers and suppliers;
provided,  however,  that such term shall not include any information that is or
becomes  generally  known  or  available  publicly  other  than as a  result  of
disclosure by the  Executive  which is not permitted as described in clause (ii)
above,  or the Company  discloses  to others  without  obtaining an agreement of
confidentiality.

      (b) The  Executive  confirms  that  all  Confidential  Information  is the
exclusive  property of the Company.  All business records,  papers and documents
and electronic  materials kept or made by the Executive relating to the business
of the Company which comprise  Confidential  Information shall be and remain the
property of the Company during the Employment Term and at all times  thereafter.
Upon the  termination of his employment  with the Company or upon the request of
the Company at any time, the Executive  shall  promptly  deliver to the Company,
and,  without the express  consent of the Board,  shall  retain no copies of any
written or electronic materials,  records and documents made by the Executive or
coming into his possession concerning the business or affairs of the Company and
which comprise Confidential Information.

      (c)  The  Executive  shall  keep  the  terms  of this  Agreement  strictly
confidential,  other than as may be necessary to enforce his rights hereunder or
as  otherwise  required  by law, or for estate  planning  or personal  financial
reasons.

                                       19
<PAGE>

6.    NON-COMPETITION.

      (a) During the Employment  Term and for a period of one (1) year after the
Termination Date (the "Restricted Period"),  the Executive shall not directly or
indirectly,  for his own  account  or for the  account  of  others,  serve as an
officer, director,  stockholder, owner, partner, employee, promoter, consultant,
advisor,   manager  or  otherwise  participate  in  the  promotion,   financing,
ownership,  operation,  or  management  of, or  assist in or carry on  through a
proprietorship,  corporation,  partnership  or other form of business  entity or
otherwise  that intends to compete  against the Company or any of its affiliates
or customers.

      Nothing in this Section 6 shall  prohibit the Executive  from acquiring or
holding any issue of stock or securities  of any Person that has any  securities
registered under Section 12 of the Exchange Act, listed on a national securities
exchange or quoted on the automated quotation system of the National Association
of  Securities  Dealers,  Inc. so long as the  Executive  is not deemed to be an
"affiliate"  of such  Person as such term is used in  paragraphs  (c) and (d) of
Rule 145 under the Securities  Act and the  Executive,  members of his immediate
family,  or persons  under his control do not own or hold more than five percent
(5%) of any voting securities of any such Person.

      (b) During the Restricted Period, the Executive shall not, whether for his
own account or for the account of any other person (excluding the Company):

            (i) solicit or contact in an effort to do  business  with any person
      who was a customer or a potential  customer of the Company during the term
      of  this  Agreement,  or  any  affiliate  of  any  such  person,  if  such
      solicitation  or  contact  is for the  purpose  of  competition  with  the
      Company;

            (ii) solicit or induce any of the Company's employees to leave their
      employment  with the Company or accept  employment  with anyone except the
      Company; or

            (iii)  interfere  in a  similar  manner  with  the  business  of the
      Company.

Nothing  herein shall  prohibit or preclude the Executive  from  performing  any
other types of services  that are not  precluded  by SECTION 6 (A) for any other
Person.

(c) The Executive  has  carefully  read and  considered  the  provisions of this
SECTION 6 and,  having done so, agrees that the  restrictions  set forth in this
SECTION 6 (including the Restricted  Period,  scope of activity to be restrained
and the geographical  scope) are fair and reasonable and are reasonably required
for the  protection  of the interests of the Company,  its officers,  directors,
employees,  creditors  and  shareholders.  The  Executive  understands  that the
restrictions  contained  in this  SECTION 6 may limit his ability to engage in a
business  similar  to the  Company's  business,  but  acknowledges  that he will
receive  sufficiently  high  remuneration  and other  benefits  from the Company
hereunder to justify such restrictions.

7.    INVENTIONS.

(A)  DISCLOSURE OF  INVENTIONS:  The Executive  shall  promptly  disclose to the
Company  (or  any  persons  designated  by it)  all  discoveries,  developments,
designs, improvements,  inventions, blueprints, formulae, processes, techniques,
computer  programs,   strategies,   and  data,  whether  or  not  patentable  or
registerable  under copyright or similar statutes,  made or conceived or reduced
to practice or learned by the  Executive,  either  alone or jointly with others,
during the period of employment  that result directly from tasks assigned to the
Executive by the Company and relate  specifically to the Business or result from
the use of premises  or property  (including  computer  systems and  engineering
facilities)   owned,   leased  or  contracted  for  by  the  Company  (all  such
discoveries,   developments,   designs,  improvements,   inventions,   formulae,
processes,  techniques, computer programs, strategies,  blueprints, know-how and
data are  hereinafter  referred to as  "Inventions").  The  Executive  will also
promptly  disclose to the Company,  and the Company hereby agrees to receive all
such disclosures in confidence,  all other discoveries,  developments,  designs,
improvements,  inventions,  formulae, processes,  techniques, computer programs,
strategies, blueprints and data, whether or not patentable or registerable under
copyright  or similar  statutes,  made or  conceived  or reduced to  practice or
learned by the Executive, either alone or jointly with others, during the period
of  employment   for  the  purpose  of  determining   whether  they   constitute
"Inventions", as defined above.

                                       20
<PAGE>

(B)   OWNERSHIP OF INVENTIONS.

            (i) All Inventions shall be the sole property of the Company and its
      assigns,  and the Company  and its assigns  shall be the sole owner of all
      patents, copyrights,  trademarks and other rights in connection therewith.
      The  Executive  does hereby assign to the Company any rights the Executive
      may have or acquire in such  Inventions.  The  Executive  shall assist the
      Company (at the  Company's  expense) in obtaining  and, from time to time,
      enforcing patents, copyrights, trademarks and other rights and protections
      relating to said  Inventions in any and all countries.  The Executive will
      execute all  documents  necessary  to apply for and obtain  such  patents,
      copyrights,   trademarks   and  other  rights  and   protections  on  such
      Inventions,  as the Company may  request,  together  with any  assignments
      thereof  to the  Company  or persons  designated  by it.  The  Executive's
      obligation  to assist the  Company in  obtaining  and  enforcing  patents,
      copyrights,  trademarks and other rights and protections  relating to such
      Inventions  shall continue beyond the  termination of employment,  but the
      Company  shall  compensate  the  Executive at a reasonable  rate after the
      Executive's  termination,  for time actually spent by the Executive at the
      Company's request on such assistance.

            (ii) In the event the Company is unable, after reasonable effort, to
      secure the  Executive's  signature on any document or documents  needed to
      apply for or prosecute any patent,  copyright or other right or protection
      relating to an Invention,  for any reason  whatsoever,  the Executive does
      hereby  irrevocably  designate  and  appoint  the  Company  and  its  duly
      authorized officers and agents as his agent and  attorney-in-fact,  to act
      for and on his  behalf  to  execute  and  file  any  such  application  or
      applications  and to do all other  lawfully  permitted acts to further the
      prosecution  and issuance of patents,  copyrights  or similar  protections
      solely with respect to Inventions  with the same legal force and effect as
      if executed by the  Executive and the  Executive  does ratify,  affirm and
      approve all such lawfully permitted acts accordingly.

8.    SPECIFIC PERFORMANCE.

      The Executive acknowledges that a breach of any of the covenants contained
in this agreement may result in material,  irreparable injury to the Company for
which  there is no  adequate  remedy  at law,  that it will not be  possible  to
measure  damages for such  injuries  precisely  and that, in the event of such a
breach, any payments remaining under the terms of this Agreement shall cease and
the Company,  without posting any bond,  shall be entitled to obtain a temporary
restraining  order and a preliminary  or permanent  injunction  restraining  the
Executive from engaging in activities prohibited by this agreement or such other
relief as may be  required  to enforce any of the  covenants  contained  in this
agreement.

9.    SUCCESSORS; BINDING AGREEMENT.

      (a) The Company will require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business or assets of the Company to expressly  assume and agree to perform this
Agreement  in the same manner and to the same  extent that the Company  would be
required  to  perform  if no such  succession  had taken  place.  Failure of the
Company to obtain such  assumption and agreement prior to the  effectiveness  of
any such succession  shall be a material  breach of this  Agreement.  As used in
this Employment  Agreement,  "Company" shall mean the Company as defined in this
Agreement and any successor to its business or assets as aforesaid which assumes
and agrees to perform this Agreement by operation of law, or otherwise.

      (b) This Agreement shall inure to the benefit of and be enforceable by the
Executive's  personal  or  legal  representatives,   executors,  administrators,
successors, heirs, distributees,  devisees and legatees. If the Executive should
die while any amount would still be payable to him hereunder if he had continued
to live, all such amounts,  unless otherwise  provided herein,  shall be paid in
accordance  with the terms of this  Agreement to the  Executive's  spouse or, if
there is no such spouse, to the Executive's  estate.  This Agreement is personal
to the Executive and may not be assigned by him.

                                       21
<PAGE>

10.   RESIGNATION AS OFFICER AND/OR DIRECTOR.

      In the event that the Executive's  employment is terminated for any reason
whatsoever or the Executive voluntarily terminates his employment, the Executive
agrees to resign immediately as an Officer and/or Director of Company.

11.   NOTICE.

      For the purposes of this Agreement,  notices and all other  communications
provided for in this  Agreement  shall be in writing and shall be deemed to have
been duly  given when  delivered  by hand or mailed by United  States  overnight
express mail, or nationally  recognized private delivery service on an overnight
basis, return receipt requested, postage prepaid, addressed as follows:

IF TO THE EXECUTIVE:       LAM KO CHAU
                           6066 VINEYARD DRIVE
                           OTTAWA, ONTARIO
                           (613) 837-1909
                           K1C 2M5

With copies to:   Virginia K. Sourlis
                           The Galleria
                           2 Bridge Avenue
                           Redbank, New Jersey 07701
                           Telephone: (732) 530-9007
                           Fax:  (732) 530-9008

If to the Company:         Liska Biometry, Inc.

      Notices  may also be sent to such other  address as either  party may have
furnished to the other in writing in accordance herewith,  except that notice of
change of address shall be effective only upon receipt.

12.   ARBITRATION OF DISPUTES.

      Any  controversy  or claim arising out of or relating to this Agreement or
the breach hereof, other than an action brought by the Company for injunctive or
other equitable  relief in the enforcement of the Company's rights under Section
8 above,  in which case such  action  may be  brought in any court of  competent
jurisdiction, shall be settled by arbitration in accordance with the laws of the
Province of Ontario by a single arbitrator.  Such arbitration shall be conducted
in the City of Ottawa, Ontario in accordance with the rules of the ADR Institute
of Canada. Judgment upon the award rendered by the arbitrators may be entered in
any court having  jurisdiction  thereof. In the event that it shall be necessary
or desirable for the Executive to retain legal counsel  and/or incur other costs
and expenses in connection with the enforcement of any or all of the Executive's
rights under this  Agreement,  the Company shall pay (or the Executive  shall be
entitled  to  recover  from the  Company,  as the  case may be) the  Executive's
reasonable attorneys' fees and other reasonable costs and expenses in connection
with  the  enforcement  of  said  rights   (including  the  enforcement  of  any
arbitration  award in court) in the event that an  arbitration  award is made in
favor of the  Executive,  unless and to the extent  that the  arbitrators  shall
determine that under the circumstances  recovery by the Executive of all or part
of any such  fees and costs  and  expenses  would be  inequitable  or  otherwise
unjust.

13.   ATTORNEYS' FEES.

      The prevailing party in any legal or arbitration proceedings brought by or
against the other  party to enforce any  provision  of this  Agreement  shall be
entitled to recover against the non-prevailing  party the reasonable  attorneys'
fees,  court  costs,  arbitration  fees  and  other  expenses  incurred  by  the
prevailing party.

14.   REPRESENTATIONS AND WARRANTIES.

      The Executive  hereby  represents and warrants that he is willing and able
to enter into this  Employment  Agreement  and to render his  services  pursuant
hereto and that neither the execution and delivery of this Employment Agreement,
nor the  performance  of his duties  hereunder,  violates the  provisions of any
other  agreement  to which he is a party or by which he is bound.  It is further
provided that the Executive  shall indemnify the Company for any and all damages
and/or  expenses  (including  attorney's  fees) that may result from a breach of
such representations.

                                       22
<PAGE>

15.   EXPENSES.

      Each party  shall pay its own  expenses  incident  to the  performance  or
enforcement  of this  Agreement,  including all fees and expenses of its counsel
for all activities of such counsel undertaken pursuant to this Agreement, except
as otherwise herein specifically provided.

16.   WAIVERS AND FURTHER AGREEMENTS.

      Any waiver of any terms or conditions of this Agreement  shall not operate
as a waiver of any other breach of such terms or conditions or any other term or
condition,  nor shall any failure to enforce any provision  hereof  operate as a
waiver of such provision or of any other provision  hereof;  provided,  however,
that no such written waiver, unless it, by its own terms, explicitly provides to
the contrary,  shall be construed to effect a continuing waiver of the provision
being waived and no such waiver in any instance shall constitute a waiver in any
other instance or for any other purpose or impair the right of the party against
whom such waiver is claimed in all other  instances or for all other purposes to
require full compliance  with such provision.  Each of the parties hereto agrees
to execute  all such  further  instruments  and  documents  and to take all such
further action as the other party may reasonably  require in order to effectuate
the terms and purposes of this Agreement.

17.   AMENDMENTS.

      This  Agreement  may  not  be  amended,  nor  shall  any  waiver,  change,
modification,  consent or  discharge  be  effected  except by an  instrument  in
writing  executed by or on behalf of the party against whom  enforcement  of any
waiver, change, modification, consent or discharge is sought.

18.   SEVERABILITY.

      If any provision of this Agreement shall be held or deemed to be, or shall
in fact be, invalid,  inoperative or  unenforceable as applied to any particular
case in any  jurisdiction or  jurisdictions,  or in all  jurisdictions or in all
cases, because of the conflict of any provision with any constitution or statute
or rule of public policy or for any other reason,  such  circumstance  shall not
have the effect of rendering the  provision or  provisions in question  invalid,
inoperative or unenforceable  in any other  jurisdiction or in any other case or
circumstance or of rendering any other provision or provisions  herein contained
invalid,  inoperative or  unenforceable to the extent that such other provisions
are not themselves actually in conflict with such constitution,  statute or rule
of public policy, but this Employment  Agreement shall be reformed and construed
in  any  such   jurisdiction  or  case  as  if  such  invalid,   inoperative  or
unenforceable  provision  had never been  contained  herein  and such  provision
reformed so that it would be valid,  operative  and  enforceable  to the maximum
extent permitted in such jurisdiction or in such case.

19.   COUNTERPARTS.

      This Agreement may be executed in two or more counterparts,  each of which
shall be deemed an original,  but all of which together shall constitute one and
the same instrument, and in pleading or proving any provision of this Agreement,
it shall not be necessary to produce more than one of such counterparts.

20    SURVIVAL.

      Sections 3, 4, 5, 6, 7, 8, 11, 12, and 20 shall survive the termination of
this Agreement.

21.   SECTION HEADINGS.

      The headings  contained in this Agreement are for reference  purposes only
and shall not in any way affect the meaning or interpretation of this Agreement.

22.   GENDER.

      Whenever used herein,  the singular  number shall include the plural,  the
plural shall include the  singular,  and the use of any gender shall include all
genders.

                                       23
<PAGE>

23.   ENTIRE AGREEMENT.

      This Agreement  together with any  attachments or Exhibits hereto contains
the  entire  agreement  of the  parties  and  there  are no  other  promises  or
conditions  in any other  agreement,  whether  oral or written.  This  Agreement
supersedes any prior written or oral agreements between the parties.

24.   GOVERNING LAW.

      This  Agreement  shall  be  governed  by and  construed  and  enforced  in
accordance with the law (other than the law governing conflict of law questions)
of the State of Florida.

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

Executive:

Name: ______________________

         LAM KO CHAU

LISKA BIOMETRY, INC.

By: _________________________
         Dr. Javaid Sheikh
         Director

                                       24

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