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                                                                    EXHIBIT 10.2

                              EMPLOYMENT AGREEMENT

          THIS EMPLOYMENT AGREEMENT (this "AGREEMENT"), dated as of June 16,
2003 (the "EFFECTIVE DATE"), is by and between Vaso Active Pharmaceuticals,
Inc., a Delaware corporation (the "Company"), and Stephen G. Carter, Ph.D. (the
"Executive"). Unless otherwise set forth herein, defined terms used herein shall
have the meaning set forth in Section 17 hereof.

          WHEREAS, the Company recognizes the Executive's potential for
contribution to the growth and success of the business of the Company, and
desires to assure the Company of the continued employment of the Executive in an
executive capacity and to compensate the Executive therefor; and

          WHEREAS, as an inducement for the Executive to remain in the
employ of the Company, the Company determined that it would be in the best
interests of the Company and the Executive to assure that the Executive receives
certain benefits in the event of a change in control of the Company.

          NOW THEREFORE, in consideration of the premises and mutual
covenants contained herein and for other good and valuable consideration, the
parties hereto hereby agree as follows:

     1.   EMPLOYMENT. Upon the terms and subject to the conditions set forth
herein, the Company hereby employs the Executive, and the Executive hereby
accepts employment with the Company.

     2.   TERM; EMPLOYMENT PERIOD. Unless the Executive's employment shall
sooner terminate pursuant to Section 9 hereof, the Company shall employ the
Executive for an initial term commencing on the Effective Date and terminating
on June 30, 2008 (such term, together with any extensions thereof in accordance
with the next sentence of this Section 2, referred to as the "TERM"). The
initial term of Executive's employment hereunder shall thereafter be deemed to
be automatically extended, upon the same terms and conditions, for successive
periods of two years each, unless either party, at least three (3) months prior
to the expiration of the initial term or any extended term, shall give written
notice (a "NON-RENEWAL NOTICE") to the other of its intention not to renew such
employment term. The period commencing on the Effective Date and ending on the
Date of Termination (as defined in Section 9(h) hereof) shall be referred to as
the "EMPLOYMENT PERIOD."

     3.   POSITION. During the Employment Period, the Executive shall serve as
Chief Scientific Officer of the Company. Subject to the terms and provisions of
its

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charter documents or applicable law, the Executive shall also during the
Employment Period serve as a director of the Company.

     4.   DUTIES AND REPORTING RELATIONSHIP. During the Employment Period, the
Executive shall have authority (subject to the direction of the Board of
Directors of the Company (the "BOARD")) to direct the management and operation
of the Company and such other executive duties as the Board shall reasonably
specify from time to time. The Executive will devote all of his skill, knowledge
and substantially all of his business or working time (except for reasonable
vacation time and absence for sickness) to the conscientious performance of such
duties. Each of the Company and Executive recognize that the Executive is also a
director and officer of BioChemics and that the Executive devotes some of his
business or working time to the performance of his duties to BioChemics. The
Executive represents and warrants to the Company that he is entering into this
Agreement voluntarily and that his employment hereunder and compliance by him
with the terms and conditions of this Agreement will not directly conflict with
or result in the breach of any agreement to which he is a party or by which he
may be bound (including any agreement that may restrict or inhibit the
Executive's ability to compete).

     5.   BASE SALARY. The Company will pay the Executive a base salary, payable
in accordance with the Company's customary payroll practices, at the annual rate
of $140,000(U.S.) for the year 2003 as compensation for the services to be
performed by the Executive during the Employment Period, which base salary may
be increased (but not decreased) from time to time at the sole and absolute
discretion of the Board. (The annual base salary payable to the Executive under
this Section 5 shall hereinafter be referred to as the "BASE SALARY").

     6.   INCENTIVE COMPENSATION; OPTIONS.

          (a)  INCENTIVE COMPENSATION. During the Employment Period, the
Executive shall participate in the Company's incentive compensation programs for
its senior executive officers existing from time to time, including, without
limitation, an annual performance bonus program pursuant to which the Executive
shall be entitled to receive an annual incentive award for each fiscal year. In
determining whether the Company has achieved the annual financial targets
established by the Board for any fiscal year under any of the Company's
incentive compensation programs, extraordinary, nonrecurring non-cash items of
income and expense shall be disregarded.

          (b)  OPTIONS. As soon as reasonably practicable following the
Effective Date, the Company shall grant the Executive stock options to purchase
75,000 shares of the Company's Class A common stock at an exercise price of
$5.00 per share (the "Options"). The Options shall vest pursuant to the terms of
the Stock Option Agreements

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(collectively, the "Stock Option Agreements") to be entered into by the parties
simultaneously with this Agreement.

               (i)      In the event of change in capitalization of the Company
as result of stock split, merger, reorganization, consolidation,
recapitalization, stock dividend or other significant corporate transaction
that, in the sole discretion of the Board of directors of the applicable
company(ies), materially affects the Options, the Board will make a
corresponding equitable adjustment in the exercise price of the Options per
share of as it determines, in its sole discretion, to be necessary so that, upon
exercise, the adjustment shall reflect any change in value of the shares.
Nothing in this section shall require the Board to consider an adjustment in the
event the Company issues additional shares, or to require the Board to treat
this term to be an anti-dilution adjustment. The parties only intend the scope
of this section to permit equitable adjustment in the event of a change in
capitalization as described above.

               (ii)     The Executive shall have the right to designate all or
any portion of the Options as "non-qualified stock options" which may be
transferable by the Executive to his spouse, lineal descendants and/or trusts
for their benefit; PROVIDED such transfer and the transferred Options remain
subject to the terms and provisions of the 2003 Stock Incentive Plan.

               (iii)    The Options shall, except as otherwise provided herein
or in the applicable Stock Option Agreement, become vested 50% on the date of
grant and the balance in two equal annual installments of 25% on each of the
first two anniversaries of the date of grant, subject, in the case of each
installment, to the Executive's continued employment with the Company until the
applicable vesting date for such installment, PROVIDED that in the event of
termination of the Executive's employment with the Company by the Company
Without Cause, termination of the Executive's employment with the Company by the
Executive for Good Reason, or upon a Change in Control (in each case, as defined
herein), the unvested portion of the Options shall become vested as of the
applicable Date of Termination or, in the event of a Change in Control, as of
the date on which the Change in Control is effectuated (the "CHANGE IN CONTROL
DATE").

     7.   EMPLOYEE BENEFITS. During the Employment Period, the Executive shall
participate in all employee benefit plans and programs of the Company
(including, without limitation, any medical, dental, vision, prescription drug,
flexible benefits, short-term and long-term disability, group term and
supplemental life insurance, accidental death and dismemberment, savings and
retirement plans maintained by the Company) (the "Benefits") in accordance with
the Company's standard policies for its executives, and shall be entitled to
receive benefits no less favorable than those provided to other senior
executives of the Company.

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     8.   BUSINESS EXPENSES.

          (a)  GENERAL. During the Employment Period, the Executive shall be
entitled to participate in any special benefit or perquisite program generally
available from time to time to senior executives of the Company on the terms and
conditions then prevailing under such program.

          (b)  REIMBURSEMENT OF EXPENSES. The Company shall reimburse the
Executive for reasonable expenses incurred in connection with his employment by
the Company, including, without limitation, reasonable travel, lodging and meal
expenses incurred by him in connection with his performance of services
hereunder upon submission of evidence, reasonably satisfactory to the Company,
of the incurrence and purpose of each such expense.

          (c)  VACATION. The Executive shall be entitled to four weeks of paid
vacation per year, or such other longer period as the Board may determine to be
appropriate, without, except as permitted in the discretion of the Board,
carry-over accumulation.

          (d)  AUTOMOBILE. The Company shall provide the Executive with a
monthly allowance to offset the cost of the acquisition and maintenance, or the
leasing and maintenance, of an automobile (comparable to Executive's automobile
as of the date hereof or as otherwise mutually determined by the Company and the
Executive), for use by the Executive in connection with the performance by him
of his duties under this Agreement.

     9.   TERMINATION OF EMPLOYMENT.

          (e)  DEATH. The Executive's employment hereunder shall automatically
terminate upon the death of the Executive.

          (f)  DISABILITY. The Company shall be entitled to terminate the
Executive's employment hereunder if, as a result of the Executive's Disability
(as defined below), the Executive shall have been absent from his duties
hereunder on a full-time basis for an aggregate of more than 180 days during any
18 month period. "DISABILITY" means Executive's inability to perform
substantially his regular duties by reason of illness or other physical or
mental incapacity expected to be of long-term or indefinite duration as
determined by an independent physician selected reasonably and in good faith by
the Board.

          (g)  VOLUNTARY RESIGNATION. Should the Executive wish to resign from
his position with the Company during the Term, the Executive shall give no less
than 60 days' written notice to the Company, setting forth the reasons and
specifying the date as

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of which his resignation is to become effective. For purposes of this Agreement,
the Executive's termination of his employment by voluntary resignation shall not
include Executive's termination of his employment for Good Reason, but shall
include termination of the Executive's employment due to the delivery of a
Non-Renewal Notice by the Executive pursuant to Section 2.

          (h)  CAUSE. The Company may terminate the Executive's employment
hereunder for Cause. For purposes of this Agreement, "CAUSE" shall mean:

               (i)      the willful failure by the Executive to substantially
perform the Executive's duties specified hereunder or such other duties as may
be reasonably defined by the Board from time to time (other than any such
failure resulting from the Executive's Disability), which failure to perform has
not been cured within 30 days after a written demand for substantial performance
is delivered to the Executive by the Board in accordance with Section 14; or

               (ii)     any fraud, material misappropriation, or embezzlement by
the Executive in connection with the operation or management of the business of
the Company; or

               (iii)    the Executive's conviction of a felony or entry of a
plea of guilty or nolo contendre with respect to a felony charge; or

               (iv)     the Executive's material breach of the Company's
policies of conduct generally applicable to executives of the Company, which
breach has not been cured within 30 days after a written demand for substantial
performance is delivered to the Executive by the Board in accordance with
Section 14; or

               (v)      in the reasonable judgment of the Board, the Executive's
engaging or having engaged in willful and serious misconduct that is materially
injurious to the Company, which misconduct has not been cured within 30 days
after a written demand for substantial performance is delivered to the Executive
by the Board in accordance with Section 14; or

               (vi)     a material breach by Executive of any material term of
this Agreement, which breach has not been cured within 30 days after a written
demand for substantial performance is delivered to the Executive by the Board in
accordance with Section 14; or

               (vii)    the breach by the Executive of any written covenant or
agreement with the Company not to compete or interfere with the Company, which

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breach has not been cured within 30 days after a written demand for substantial
performance is delivered to the Executive by the Board in accordance with
Section 14.

          (e)  GOOD REASON. Executive may terminate his employment hereunder for
Good Reason. For purposes of this Agreement, "GOOD REASON" shall mean a
termination of the Executive's employment with the Company by the Executive
within 30 days (including any cure period) following:

               (i)      a material reduction in the Executive's rate of Base
Salary, incentive compensation or employee benefits (in each case, other than
any such reduction in connection with a Company-wide reduction applicable
generally to similarly situated executive employees); or

               (ii)     the material breach by the Company of a material term of
this Agreement; PROVIDED, that the Company will have received written notice
from the Executive pursuant to Section 14 hereof which notice reasonably sets
forth the manner in which the Company has committed such breach and the Company
shall have been provided a period of 30 days to cure such breach; or

               (iii)    any material diminution in the Executive's duties,
titles, or responsibilities; or

               (iv)     the Executive's removal from the Board or the failure to
renominate or reelect the Executive as a director of the Company (other than as
a result of the termination of the Executive's employment for any or no reason);
or

               (v)      any requirement by the Company that the Executive
relocate to or be permanently based anywhere other than at a facility or
location located within a 100 mile radius of Boston, Massachusetts after the
Effective Date; or

               (vi)     any material adverse change to any stock incentive or
option plan governing the Options; or

               (vii)    any failure to obtain assumption of this Employment
Agreement, the Options and any related stock incentive plan by the acquirer in
the event of a Change in Control.

          (f)  TERMINATION WITHOUT CAUSE. A termination "WITHOUT CAUSE" shall
mean a termination of the Executive's employment by the Company for reasons
other than Disability pursuant to Section 9(b) hereof or Cause pursuant to
Section 9(d) hereof.

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          (g)  NOTICE OF TERMINATION. Any purported termination of the
Executive's employment by the Company or by the Executive shall be communicated
by written Notice of Termination to the other party hereto in accordance with
Section 16. "NOTICE OF TERMINATION" shall mean a notice stating that the
Employee's employment hereunder has been or will be terminated, indicating the
specific termination provision in this Agreement relied upon and setting forth
in reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Executive's employment under the provision so indicated.

          (h)  DATE OF TERMINATION. As used in this Agreement, the term "DATE OF
TERMINATION" shall mean (i) if the Executive's employment is terminated because
of death, the date of the Executive's death, (ii) if the Executive's employment
is terminated by the Company for Cause, by the Company Without Cause or due to
the Executive's Disability, the date on which Notice of Termination is delivered
as contemplated by Section 9(g) or, if later, the date of termination specified
in such notice, (iii) if the Executive's employment is terminated by the
Executive, on the date on which Notice of Termination is delivered as
contemplated by Section 9(g) or, if later, the date of termination set forth in
the Notice of Termination given by the Executive, or on the date the Executive
resigns or leaves employment if no notice is given by the Executive, or (iv) if
this Agreement expires at the end of its Term, the date of such expiration.

     10.  COMPENSATION UPON CERTAIN TERMINATIONS.

          (a)  In the event of a termination of the Executive's employment by
the Company Without Cause or a termination by the Executive of his employment
for Good Reason (other than termination for Good Reason within 12 months of a
Change in Control), subject to Section 9(i), the Company shall pay the Executive
his full Base Salary through the Date of Termination and, as liquidated damages,
the following additional amounts and benefits:

               (i)      regular installments of the Executive's then-current
Base Salary for the period from the Date of Termination and ending on the first
anniversary of the Date of Termination, PLUS

               (ii)     the product of (x) the incentive compensation award that
would have been payable to the Executive for the fiscal year of the Company that
includes the Date of Termination had the Executive continued in employment
through the last day of such fiscal year and assuming that all 100% of the
performance targets for such fiscal year had been achieved, multiplied by (y) a
fraction, the numerator of which is equal to the number of calendar days in such
fiscal year that have elapsed as of the Date of Termination and the denominator
of which is equal to 365, PLUS

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               (iii)    subject to the terms and provisions of the benefit plans
providing such benefits and applicable law, the Company shall continue to
provide to the Executive the benefits (other than disability insurance and
active participation in savings and retirement plans) referred to in Section 7
for the period during which the Company is obligated to continue paying the
Executive's Base Salary pursuant to Section 10(a)(i); PLUS

               (iv)     any amounts subject to reimbursement under any other
Section of this Agreement (including, without limitation, Section 8) and unpaid
as of the Date of Termination; LESS

               (v)      any amount paid, payable or to be paid to the Executive
under the terms of any severance plan or program as in effect on the Date of
Termination; LESS

               (vi)     any debts owed to the Company by the Executive.

          If the Executive obtains new employment (including self-employment),
any salary continuation payments and benefit coverage to which the Executive may
be entitled pursuant to this Section 10(a) shall be reduced or canceled to the
extent of any salary or other cash compensation and benefit coverage earned or
accrued in respect to such new employment.

          (b)  In the event of a termination of the Executive's employment by
the Executive for Good Reason within 12 months of a Change in Control, the
Company shall pay the Executive his full Base Salary through the Date of
Termination and, as liquidated damages, the following additional amounts and
benefits:

               (i)      a lump sum payment equal to two times the Base Salary in
effect on the Date of Termination, PLUS

               (ii)     the product of (x) the incentive compensation award that
would have been payable to the Executive for the fiscal year of the Company that
includes the Date of Termination had the Executive continued in employment
through the last day of such fiscal year and assuming that all 100% of the
performance targets for such fiscal year had been achieved, multiplied by (y) a
fraction, the numerator of which is equal to the number of calendar days in such
fiscal year that have elapsed as of the Date of Termination and the denominator
of which is equal to 365, PLUS

               (iii)    subject to the terms and provisions of the benefit plans
providing such benefits and applicable law, the Company shall continue to
provide to the

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Executive benefits substantially the same as those referred to in Section 7
(other than disability insurance and active participation in savings and
retirement plans) until the second anniversary of the Date of Termination;
PROVIDED that such welfare benefits will terminate earlier if the Executive
obtains new employment with a comparable level of benefits; PLUS

               (iv)     any amounts subject to reimbursement under any other
Section of this Agreement (including, without limitation, Section 8) and unpaid
as of the Date of Termination; LESS

               (v)      any amount paid, payable or to be paid to the Executive
under the terms of any severance plan or program as in effect on the Date of
Termination; LESS

               (vi)     any debts owed to the Company by the Executive.

          (c)  If, during the Employment Period, the Executive shall terminate
his employment without Good Reason (a voluntary resignation by the Executive
pursuant to Section 9(c)) or if the Company shall terminate the Executive's
employment for Cause or the Executive's employment shall terminate due to the
Executive's death or Disability during the Term, the Company shall pay the
Executive (i) his full Base Salary through the Date of Termination (or, in the
case of death, one month following the Date of Termination), PLUS (ii) in the
event of death or Disability, the Executive shall receive a pro-rata portion of
the incentive compensation award that would have been payable to the Executive
for the fiscal year during which employment was terminated, assuming that 100%
of the performance targets had been achieved, PLUS (iii) any amounts subject to
reimbursement under any other Section of this Agreement (including, without
limitation, Section 8) and unpaid as of the Date of Termination, LESS (iv) any
debts owed to the Company by the Executive.

          (d)  In addition to and without limiting any amounts or benefits to
which the Executive may be entitled under any other provision of this Agreement,
the Executive shall be entitled, upon any termination of the Executive's
employment by either party for any or no reason, including, without limitation,
any non-renewal of the Term, to receive all amounts payable and benefits accrued
under any otherwise applicable plan, policy, program or practice of Company in
which the Executive was a participant during his employment with Company in
accordance with the terms thereof and applicable law, PROVIDED that (x) the
Executive shall not be entitled to receive any payments or benefits under any
such plan, policy, program or practice providing any bonus or incentive
compensation (and the provisions of this Section 10 shall supersede the
provisions of any such plan, policy, program or practice), and (y) the amount,
if any, paid or payable to the Executive under the terms of any such plan,
policy, program or

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practice relating to severance shall reduce the amounts payable under Section 10
in the manner provided in clauses (v) of Sections 10(a) and 10(b) hereof.

          (e)  Notwithstanding the provisions set forth in Section 10(a), 10(b),
10(c) or 10(d) hereof, the Company's obligation to make any of the payments or
provide any of the benefits described above is conditioned upon the Executive
delivering (concurrently upon receipt by the Executive of the initial payments
provided in Section 10(a) through 10(d) hereof) a full release of any known or
unknown claims arising out of or related to this Agreement or the Executive's
employment or termination of employment with the Company in a form which is
reasonably acceptable to the Company, excepting only claims arising out of the
alleged breach of the provisions of the Options, the Stockholders Agreement or
any benefit plan or program to which the Executive shall continue to be eligible
for benefits or claims under any Federal or state continuation of coverage laws
or the terms of this Agreement.

     11.  SUCCESSORS; BINDING AGREEMENT. This Agreement is a personal contract
and the rights and interests of the Executive hereunder may not be sold,
transferred, assigned, pledged, encumbered, or hypothecated by him, except as
otherwise expressly permitted by the provisions of this Agreement. This
Agreement shall inure to the benefit of and be enforceable by the Executive and
his personal or legal representatives, beneficiaries, executors, administrators,
successors, heirs, distributes, devisees and legatees. If the Executive should
die while any amount would still be payable to him hereunder had the Executive
continued to live, all such amounts, unless otherwise provided herein, shall be
paid in accordance with the terms of this Agreement to his devisee, legatee or
other designee or, if there is no such designee, to his estate. In the event of
any sale or other disposition of all or substantially all of the assets of the
Company, or any reorganization, merger or consolidation of the Company whereby
the Company is not the surviving or resulting corporation, the provisions of
this Agreement shall be binding upon the surviving or resulting corporation or
the person or entity to which such assets are sold or otherwise transferred.

     12.  ENTIRE AGREEMENT. This Agreement and the Stock Option Agreements taken
together contain all the understandings between the parties hereto pertaining to
the matters referred to herein, and supersedes all undertakings and agreements,
whether oral or in writing, previously entered into by them with respect
thereto, including without limitation, any correspondence between the Executive
and representatives of the Company relating to the employment terms set forth
herein.

     13.  AMENDMENT OR MODIFICATION, WAIVER. No provision of this Agreement may
be amended or waived unless such amendment or waiver is agreed to in writing,
signed by the Executive and by a duly authorized officer of the Company. No
waiver by any party hereto of any breach by another party hereto of any
condition or provision of

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this Agreement to be performed by such other party shall be deemed a waiver of a
similar or dissimilar condition or provision at the same time, any prior time or
any subsequent time.

     14.  NOTICES. Any notice to be given hereunder shall be in writing and
delivered personally, sent by courier or registered or certified mail, postage
prepaid, return receipt requested, addressed to the party concerned at the
address indicated below or to such other address as such party may subsequently
give notice of hereunder in writing:

          To the Executive at:

               at the address contained on the
               signature page attached hereto

          To the Company:

               Vaso Active Pharmaceuticals, Inc.
               99 Rosewood Drive - Suite 260
               Danvers, MA 01923

          with a copy to:

               Robinson & Cole LLP
               One Boston Place
               Boston, MA 02108-4404
               Attn: David A. Garbus, Esq.

          Any notice delivered personally or by courier under this Section 16
shall be deemed given on the date delivered and any notice sent by registered or
certified mail, postage prepaid, return receipt requested, shall be deemed given
the date mailed.

     15.  MISCELLANEOUS.

          (a)  SEVERABILITY. If any provision of this Agreement is held to be
illegal, invalid or unenforceable under any present or future applicable law,
and if the rights or obligations of any party hereto under this Agreement will
not be materially and adversely affected thereby, (i) such provision will be
fully severable, (ii) this Agreement will be construed and enforced to the
fullest extent permitted by law as if such illegal, invalid or unenforceable
provision had never comprised a part hereof and (iii) the remaining provisions
of this Agreement will remain in full force and effect and will not be affected
by the illegal, invalid or unenforceable provision or by its severance here
from.

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          (b)  SURVIVORSHIP. The respective rights and obligations of the
parties hereunder shall survive any termination of this Agreement to the extent
necessary to the intended preservation of such rights and obligations.

          (c)  GOVERNING LAW; JURISDICTION. This agreement will be governed by
and construed in accordance with the laws of the Commonwealth of Massachusetts,
without regard to its conflicts of laws principles. Each party hereby
irrevocably submits to the jurisdiction of the United States District Court for
the District of Massachusetts or any court of the Commonwealth of Massachusetts
located in Essex or Middlesex Counties in any such action, suit or proceeding
arising out of or relating to this Agreement or any of the transactions
contemplated hereby, and agrees that any such action, suit or proceeding may be
brought in such court, PROVIDED, HOWEVER, that such consent to jurisdiction is
solely for the purpose referred to in this Section and shall not be deemed to
be a general submission to the jurisdiction of said courts or in the
Commonwealth of Massachusetts other than for such purpose. Each party hereby
irrevocably waives, to the fullest extent permitted by applicable law, any
objection that it may now or hereafter have to the laying of the venue of any
such action, suit or proceeding brought in such a court and any claim that any
such action, suit or proceeding brought in such a court has been brought in an
inconvenient forum. Nothing herein shall affect the right of any party to serve
process in any other manner permitted by applicable law or to commence legal
proceedings or otherwise proceed against the other in any other jurisdiction.
THE PARTIES AGREE TO WAIVE ANY AND ALL RIGHTS THAT THEY MAY HAVE TO A JURY TRIAL
WITH RESPECT TO DISPUTES ARISING OUT OF THIS AGREEMENT.

          (d)  HEADINGS. All descriptive headings of sections and paragraphs in
this Agreement are intended solely for convenience, and no provision of this
Agreement is to be construed by reference to the heading of any section or
paragraph.

          (e)  WITHHOLDINGS AND PAYMENTS. All payments to the Executive under
this Agreement shall be reduced by all applicable withholding required by
federal, state or local law.

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

     16.  CERTAIN DEFINED TERMS.

          "AFFILIATE" means, with respect to a party, any individual or legal
business entity that, directly or indirectly, controls, is controlled by or is
in common control with,

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such party. The term "control" (including the terms "controlled by" and "under
common control with") as used in the preceding sentence means the possession,
directly or indirectly, of the power to direct or cause the direction of
management and policies.

          "BIOCHEMICS" shall mean BioChemics, Inc., a Delaware corporation, an
Affiliate of the Company.

          "BUSINESS" shall mean the ownership and/or operation of a company
primarily engaged in the business of commercializing, marketing and selling
over-the-counter, or OTC, pharmaceutical products, with a particular focus on
drugs that incorporate the vaso active lipid encapsulated, or VALE, transdermal
delivered technology.

          "CHANGE IN CONTROL" shall mean such time as:

          (i)   (A) any individual, entity, or group (other than an Affiliate of
BioChemics) has become the beneficial owner of 30% or more of the voting power
of the outstanding capital stock of the Company entitled to vote generally in
the election of directors (collectively, the "Capital Stock") or (B) BioChemics
ceases to control the right to designate at least 50% of the members of the
entire Board of Directors of the Company;

          (ii)  individuals who, as of the date on which the Executive is
elected to the Board of the Company, constitute the Board (the "INCUMBENT
BOARD") cease for any or no reason to constitute at least a majority of such
Boards, PROVIDED that any individual who becomes a director of the Company, as
applicable, subsequent to such date whose election or nomination for election by
the stockholders of the Company, as applicable, was approved by the vote of at
least a majority of the directors then comprising the Incumbent Board shall be
deemed to have been a member of the Incumbent Board;

          (iii) (A) the consummation by the stockholders of the Company of a
reorganization, merger or consolidation of the Company such that any individual
entity, or group (other than an Affiliate of BioChemics) has become the
beneficial owner of 50% or more of the voting power of the outstanding Capital
Stock of the Company and (B) BioChemics ceases to control the right to designate
at least 50% of the members of the entire Board;

          (iv)  the consummation by the stockholders of the Company of a sale or
other disposition of all or substantially all of the assets of the Company; or,

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          (v)   the approval by stockholders of a plan of complete liquidation
or dissolution of the Company.

          "CLASS A COMMON STOCK" means the Class A common stock, $.0001 par
value per share, of the Company.

          "SUBSIDIARY" means any corporation of which shares of stock having a
majority of the general voting power in electing the board of directors are, at
the time as of which any determination is being made, owned by the Company
either directly or through its Subsidiaries.

                           ***************************

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

                                EXECUTIVE

                                By:
                                   ------------------------------------------
                                   Stephen G. Carter, Ph.D.

                                Address:  99 Rosewood Drive, Suite 260
                                          Danvers, MA 01923

                                COMPANY

                                VASO ACTIVE PHARMACEUTICALS, INC.

                                By:
                                   ------------------------------------------
                                   Name:  John J.Masiz
                                   Title: President and Chief Executive Officer,
                                          Authorized Signatory

                                       15<Page>

                                                                    EXHIBIT 10.4

             [FORM OF 2003 NON-EMPLOYEE DIRECTOR COMPENSATION PLAN -

                          SUBJECT TO ADDITIONAL REVIEW]

                                    ARTICLE I

                                 PURPOSE OF PLAN

     The 2003 Non-Employee Director Compensation Plan (the "Plan") of Vaso
Active Pharmaceuticals, Inc., a Delaware corporation (the "Company") effective
as of August 22, 2003, is established for present and future non-employee
directors of the Company. The Plan is intended to advance the best interests of
the Company and its stockholders by improving the Company's ability to attract
and retain highly qualified individuals to serve as directors of the Company by
allowing them to acquire an ownership interest in the Company and thereby
encouraging them to contribute to the success of the Company and to build and
strengthen the commonality of interest between directors and stockholders.

                                   ARTICLE II

                                   DEFINITIONS

     For purposes of the Plan, except where the context clearly indicates
otherwise, the following terms shall have the meanings set forth below:

     "BOARD" shall mean the Board of Directors of the Company.

     "CODE" shall mean the Internal Revenue Code of 1986, as amended, and any
successor statute.

     "COMMON STOCK" shall mean shares of the Company's Class A Common Stock, par
value $0.0001 per share, or if the outstanding shares of Common Stock are
hereafter changed into or exchanged for different shares or securities of the
Company, such other shares or securities.

     "DISABILITY" shall mean the inability, due to illness, accident, injury,
physical or mental incapacity or other disability, of any Participant to carry
out effectively his duties and obligations to the Company or to participate
effectively and actively as a member of any committee of the Board for a period
of at least 90 consecutive days or for shorter periods aggregating at least 120
days (whether or not consecutive) during any twelve-month period, as determined
in the reasonable judgment of the Board.

     "FAIR MARKET VALUE" of the Common Stock at any date, shall be the price per
share equal to the last reported closing price, at the later of 4:00 p.m., New
York time at the close of business on such date, or, in the case no such
reported sale takes place on such date, the average of the last reported sales
price for the last three trading days before such date, in either case, as (a)
officially

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reported by (i) the national securities exchange on which the Common Stock is
listed, or (ii) if not listed on a national securities exchange, the Nasdaq
National Market or the Nasdaq SmallCap Market, as applicable, or (b) if not
listed on the Nasdaq National Market or the Nasdaq SmallCap Market, based on the
average of the highest bid and lowest asked prices in the domestic
over-the-counter market as reported by the National Quotation Bureau, Inc. or
any similar organization, or (c) if not reported by the National Quotation
Bureau, Inc. or any similar organization, as determined by the Board in good
faith.

     "INCENTIVE STOCK OPTIONS" shall have the meaning as defined in Section 422
of the Code.

     "INDEPENDENT THIRD PARTY" means any Person who, immediately prior to the
contemplated transaction, does not own in excess of 5% of the shares of the
Company's Common Stock on a fully-diluted basis (a "5% Owner") who is not
controlling, controlled by or under common control with any such 5% Owner and
who is not the spouse or descendent (by birth or adoption) of any such 5% Owner
or a trust for the benefit of such 5% Owner and/or such other Persons.

     "NON-EMPLOYEE DIRECTOR" means any member of the Board who is not also an
employee of the Company or any of its Subsidiaries or of any affiliate of the
Company.

     "NONQUALIFIED STOCK OPTIONS" shall mean Stock Options other than Incentive
Stock Options.

     "PARTICIPANT" shall mean any present and future Non-Employee Director of
the Company.

     "PERSON" means an individual, a partnership, a corporation, a limited
liability company, an association, a joint stock company, a trust, a joint
venture, an unincorporated organization and a governmental entity or any
department, agency or political subdivision thereof.

     "RESTRICTED STOCK AGREEMENT" shall have the meaning set forth in Article V.

     "RESTRICTED STOCK GRANTS" shall have the meaning set forth in Article IV.

     "SALE OF THE COMPANY" means the sale of the Company to an Independent Third
Party or group of Independent Third Parties pursuant to which such party or
parties acquire (i) capital stock of the Company possessing the voting power
under normal circumstances to a majority of the Board (whether by merger,
consolidation or sale or transfer of the capital stock) or (ii) all or a
majority of the Company's assets determined on a consolidated basis.

     "STOCK OPTIONS" mean Incentive Stock Options and Nonqualified Stock Options
taken together.

     "SUBSIDIARY" means, with respect to any Person, any corporation, limited
liability Company partnership, association or other business entity of which (i)
if a corporation, a majority of the total voting power of shares of stock
entitled (without regard to the occurrence of any contingency) to vote in the
election of directors, managers or trustees thereof is at the time owned or
controlled, directly or indirectly, by that Person or one or more of the other
Subsidiaries of that Person or a combination thereof, or (ii) if a limited
liability company, partnership, association or business entity, a majority of
the limited liability company,

                                      - 2 -
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partnership or other similar ownership interest thereof is at the time owned or
controlled, directly or indirectly, by any Person or one or more Subsidiaries of
that Person or a combination thereof. For purposes hereof, a Person or Persons
shall be deemed to have a majority ownership interest in a limited liability
company, partnership, association or other business entity if such Person or
Persons shall be allocated a majority of the limited liability company,
partnership, association or other business entity gains or losses or shall be or
control the managing member. director or general partner of such limited
liability company, partnership, association or other business entity.

                                   ARTICLE III

                                 ADMINISTRATION

     The Plan shall be administered by the Board. Subject to the limitations of
the Plan, the Bpard shall have the sole and complete authority to: (i) determine
which Participants receive Incentives, the types of Incentives they receive
under the Plan, the number of shares of Common Stock covered by Incentives
granted under the Plan and the other terms and conditions of such Incentives,
(ii) grant to any Participant Incentives at any time prior to the termination of
this Plan in such quantity, at such price, on such terms and subject to such
conditions that are consistent with this Plan and established by the Board from
time to time, (iii) impose such limitations, restrictions and conditions upon
the grants of any Incentives to any Participant as it shall deem appropriate,
(iv) interpret the Plan and adopt, amend and rescind administrative guidelines
and other rules and regulations relating to the Plan, (v) correct any defect or
omission or reconcile any inconsistency in the Plan or in any grants of
Incentives awarded hereunder and (vi) make all other determinations and take all
other actions necessary or advisable for the implementation and administration
of the Plan. Determinations by the Board under the Plan including, without
limitation, determinations of the form, amount and timing of Incentives, the
terms and provisions of Incentives, the terms and provisions of Incentives and
the writings evidencing Incentives, need not be uniform and may be made
selectively among Participants who receive Incentives hereunder, whether nor not
such Participants are similarly situated. The Board's determinations on matters
within its authority shall be conclusive and binding upon the Participants, the
Company and all other Persons. All expenses associated with the administration
of the Plan shall be borne by the Company. The Board may, to the extent
permissible by law, delegate any of its authority hereunder to such persons as
it deems appropriate.

                                   ARTICLE IV

                  INCENTIVES AND SHARES ELIGIBLE FOR INCENTIVES

     4.1   GRANT OF INCENTIVES. Except as otherwise determined by the Board as
set forth in resolutions duly adopted by the Board from time to time, each
Person who becomes a Non-Employee Director for the first time after June 1, 2003
shall be granted Incentives in the form of Incentive Stock Options to purchase
20,000 of Common Stock at an exercise price equal to the Fair Market Value on
the date of grant. Incentives under the Plan may be granted in any one or a
combination of (a) Restricted Stock Grants, (b) Incentive Stock Options, (c)
Nonqualified Stock Options and (d) Stock Appreciation Rights (collectively
"Incentives"). All Incentives shall be

                                      - 3 -
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subject to the terms and conditions set forth herein and to such other terms and
conditions as may be established by the Board.

     4.2   NUMBER OF SHARES OF COMMON STOCK. The number of shares of Common
Stock with respect to which Incentives may be granted under the Plan and which
may be awarded as Restricted Stock Grants, issued upon the exercise of Incentive
Stock Options and Nonqualified Stock Options and all other grants of shares of
Common Stock under the Plan, shall not exceed, in the aggregate, 300,000;
PROVIDED THAT the type and the aggregate number of shares of Common Stock which
may be granted under the Plan shall be subject to adjustment in accordance with
the provisions of paragraph 4.3 below, and FURTHER PROVIDED THAT to the extent
any shares of Common Stock that are not purchased or awarded under an Incentive
that has lapsed, expired, terminated or been canceled or any shares of Common
Stock that have been repurchased by the Company or forfeited in any manner,
shall again be available under the Plan. The shares of Common Stock available
under the Plan may be either authorized and unissued shares, treasury shares or
a combination thereof, as the Board shall determine.

     4.3   ADJUSTMENTS. In the event of a reorganization, recapitalization,
stock dividend or stock split, or combination or other change, identified by the
Board, in the Common Stock, the Board may, make such adjustments, if any, in (i)
the number and type of shares authorized for issuance by the Plan, (ii) the
number and type of shares in respect of outstanding Incentives, (iii) the
exercise or option price of Stock Options, (iv) the repurchase or other prices
specified in applicable Restricted Stock Agreement(s) and (v) the fair market
value of Stock Appreciation Rights; PROVIDED THAT fractions of a share will be
rounded down to the nearest whole share (other than for Incentive Stock
Options), all as may be determined to be appropriate and equitable in the sole
discretion of the Board.

                                    ARTICLE V

                             RESTRICTED STOCK GRANTS

     5.1   RESTRICTED STOCK GRANTS. The Board may award shares of Common Stock
to Participants, which shares shall be subject to the following terms and
conditions and such other terms and conditions as the Board may prescribe
("Restricted Stock Grants"):

     (a)   The purchase price per share of Common Stock for each Restricted
Stock Grant shall be fixed by the Board at not less than the then par value of a
share of Common Stock.

     (b)   Restricted Stock Grants to Participants may be made be subject to
vesting, in one or more installments, upon the happening of certain events, upon
the passage a specified period of time or upon the fulfillment of certain
conditions as the Board shall decide in each case when Restricted Stock Grants
are awarded.

     (c)   In the event of a Sale of the Company, the Board may provide, in its
discretion, that some or all of the shares of Common Stock under a Restricted
Stock Grant shall become fully vested for any Participant (i) who is a
Non-Employee Director at the time of the Sale of the Company and (ii) who is
removed as a director without cause or whose position is eliminated by

                                      - 4 -
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a reduction in the size of the Board within a specified period of time of the
consummation of the Sale of the Company.

     (d)   Restricted Stock Grants hereunder shall be subject to a written
agreement (a "Restricted Stock Agreement") which shall be signed by the
Participant and by the Chief Executive Officer or the President of the Company
for and in the name and on behalf of the Company and shall be subject to the
terms and conditions of the Plan prescribed in the Restricted Stock Agreement
(including, but not limited to, (i) the right of the Company and such other
Persons as the Board shall designate ("Designees") to repurchase from each
Participant, and such Participant's transferees, all shares of Common Stock
issued to such Participant in the event of such Participant's removal as a
director or elimination of his position as a director of the Company, (ii)
rights of first refusal granted to the Company and Designees, (iii) holdback and
other registration right restrictions in the event of a public registration of
any equity securities of the Company and (iv) any other terms and conditions
which the Board shall deem necessary and desirable).

     5.2   REPURCHASE OF FORFEITURE UPON TERMINATION OF POSITION. Except as
otherwise provided by the Board in the Restricted Stock Agreement for a
Participant's Restricted Stock Grant, any portion of such Participant's shares
of Common Stock that was not vested on the date of the termination of such
Participant's position as a director of the Company shall be repurchased or
forfeited as of such date.

                                   ARTICLE VI

                                  STOCK OPTIONS

     6.1   AWARDS OF STOCK OPTIONS. The Board may grant Incentive Stock Options
and Nonqualified Stock Options to Participants, which Stock Options shall be
subject to the following terms and conditions and such other terms and
conditions as the Board may prescribe:

     (a)   The option exercise price per share of Common Stock shall be fixed by
the Board, but shall not be less than 100% of the Fair Market Value of a share
of Common Stock on the date of grant.

     (b)   Stock Options shall be exercisable at such time or times as the Board
shall determine at or subsequent to grant.

     (c)   Stock Options shall be exercised in whole or in part by written
notice to the Company (to the attention of Company's Secretary) accompanied by
payment in full of the option exercise price. Payment of the option exercise
price shall be made in cash (including check, bank draft or money order).

     (d)   The Board shall determine the term of each Stock Option, which term
shall in no event exceed ten years from the date of grant.

     (e)   The Board shall determine how and when shares covered by a Stock
Option may be purchased. The Board may establish waiting periods, the dates on
which Stock Options

                                      - 5 -
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become exercisable or "vested" and, subject to paragraph (d) of this paragraph
6.1, exercise periods. The Board may accelerate the exercisability of any Stock
Option or portion thereof.

     (f)   Except as may otherwise be permitted by the Code, a Participant may
not receive a grant of Incentive Stock Options for Common Stock that would have
an aggregate fair market value in excess of $100,000 (or such other amount as
the Internal Revenue Service may decide from time to time) determined as of the
time the Incentive Stock Option is granted, that would be exercisable for the
first time by such person during any calendar year.

     6.2   CONDITIONS AND LIMITATIONS ON VESTING AND EXERCISE OF STOCK OPTIONS.
Shares of Common Stock or Stock Options granted to Participants may be made
exercisable, subject to vesting, in one or more installments, upon the happening
of certain events, upon the passage a specified period of time or upon the
fulfillment of certain conditions as the Board shall decide in each case when
Stock Options are granted.

     6.3   WRITTEN AGREEMENT. Each Stock Option granted hereunder to a
Participant shall be embodied in written agreement (a "Stock Option Agreement")
which shall be signed by the Participant and by the Chief Executive Officer or
the President of the Company for and in the name and on behalf of the Company
and shall be subject to the terms and conditions of the Plan prescribed in such
Stock Option Agreement (including, but not limited to, (i) the right of the
Company and such other Persons as the Board shall designate ("Designees") to
repurchase from each Participant, and such Participant's transferees, all shares
of Common Stock issued or issuable to such Participant on the exercise of a
Stock Option in the event of such Participant's termination of his position as a
director of the Company, (ii) rights of first refusal granted to the Company and
Designees, (iii) holdback and other registration right restrictions in the event
of a public registration of any equity securities of the Company and (iv) any
other terms and conditions which the Board shall deem necessary and desirable).

     6.4   NONTRANSFERABILITY OF STOCK OPTIONS. Stock Options may not be
transferred other than by will or the laws of descent and distribution and,
during the lifetime of the Participant, may be exercised only by such
Participant (or his legal guardian or legal representative). In the event of the
death of a Participant, exercise of Stock Options granted hereunder shall be
made only:

           (i) by the executor or administrator of the estate of the deceased
Participant or the Person or Persons to whom the deceased Participant's rights
under the Stock Option shall pass by will or the laws of descent and
distribution; and

           (ii) to the extend that the deceased Participant was entitled thereto
at the date of his death, unless otherwise provided by the Board in such
Participant's Stock Option Agreement.

     6.5   EXPIRATION OF STOCK OPTIONS.

     (a)   NORMAL EXPIRATION. In no event shall any part of any Stock Option be
exercisable after the date of expiration thereof (the "Expiration Date"), as
determined by the Board pursuant to paragraph 6.1(e) above.

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     (b)   EARLY EXPIRATION UPON TERMINATION OF POSITION. Except as otherwise
provided by the Board in the Stock Option Agreement, any portion of a
Participant's Stock Option that was not vested and exercisable on the date of
the termination of such Participant's position as a director of the Company
shall expire and be forfeited as of such date, and any portion of a
Participant's Stock Option that was vested and exercisable on the date of the
termination of such Participant's position as a director of the Company shall
expire and be forfeited as of such date, except that: (i) if any Participant
dies or becomes subject to any Disability, such Participant's Stock Option shall
expire 180 days after the date of his death or Disability, but in no event after
the Expiration Date, and (ii) if any Participant is removed as a director other
than for Cause, such Participant's Stock Option shall expire 30 days after the
date of his removal, but in no event after the Expiration Date.

                                   ARTICLE VII

                            STOCK APPRECIATION RIGHTS

     7.1   AWARDS OF STOCK APPRECIATION RIGHTS. The Board may, in its
discretion, grant a right to receive the appreciation in the Fair Market Value
of shares of Common Stock ("Stock Appreciation Right") either singly or in
combination with an underlying Stock Option granted hereunder. Such Stock
Appreciation Right shall be subject to the following terms and conditions and
such other terms and conditions as the Board may prescribe:

     (a)   If a Stock Appreciation Right is granted with respect to an
underlying Stock Option, it may be granted at the time of the Stock Option grant
or at any time thereafter but prior to the expiration of the Stock Option grant.
If a Stock Appreciation Right is granted with respect to an underlying Stock
Option, at the time the Stock Appreciation Right is granted the Board may limit
the exercise period for such Stock Appreciation Right, before and after which
period no Stock Appreciation Right shall attach to the underlying Stock Option.
In no event shall the exercise period for a Stock Appreciation Right granted
with respect to an underlying Stock Option exceed the exercise period for such
Stock Option. If a Stock Appreciation Right is granted without an underlying
Stock Option, the period for exercise of the Stock Appreciation Right shall be
set by the Board.

     (b)   If a Stock Appreciation Right is granted with respect to an
underlying Stock Option, the grantee will be entitled to surrender the Stock
Option which is then exercisable and receive in exchange therefor an amount
equal to the excess of the Fair Market Value of the Common Stock on the date the
election to surrender is received by the Company in accordance with exercise
procedures established by the Company over the Stock Option price (the "Spread")
multiplied by the number of shares covered by the Stock Option which is
surrendered. If a Stock Appreciation Right is granted without an underlying
Stock Option, the grantee will receive upon exercise of the Stock Appreciation
Right an amount equal to the excess of the Fair Market Value of the Common Stock
on the date the election to surrender such Stock Appreciation Right is received
by the Company in accordance with exercise procedures established by the Company
over the Fair Market Value of the Common Stock on the date of grant multiplied
by the number of shares covered by the grant of the Stock Appreciation Right.
Notwithstanding the foregoing, in its sole discretion the Board at the time it
grants a Stock Appreciation Right may provide that the Spread covered by such
Stock Appreciation Right may not exceed a specified amount.

                                      - 7 -
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     (c)   Payment of a Stock Appreciation Right shall be in the form of shares
of Common Stock, cash or any combination of shares and cash. The form of payment
upon exercise of such a right shall be determined by the Board either at the
time of grant of the Stock Appreciation Right or at the time of exercise of the
Stock Appreciation Right.

                                  ARTICLE VIII

                               GENERAL PROVISIONS

     8.1   LISTING, REGISTRATION AND COMPLIANCE WITH LAWS AND REGULATIONS.
Grants of Incentives and shares of Common Stock issuable to Participants in the
exercise of Stock Options under this Plan shall be subject to the requirement
that if at any time the Board shall determine, in its discretion, that the
listing, registration or qualification of the shares of Common Stock or
Incentives granted under this Plan upon any securities exchange or under any
state or federal securities or other law or regulation, or the consent or
approval of any governmental regulatory body, is necessary or desirable as a
condition to or in connection with the award of Restricted Stock Grants, Stock
Options or Stock Appreciation Rights (or the issuance or purchase of shares
thereunder) under the Plan, no Restricted Stock Grants, shares of Common Stock
or Stock Options or Stock Appreciation Rights may be granted, or exercised, in
whole or in part, unless such listing, registration, qualification, consent or
approval shall have been effected or obtained free of any conditions not
acceptable to the Board. The holders of such Restricted Stock Grants, shares of
Common Stock or Stock Options or Stock Appreciation Rights shall supply the
Company with such certificates, representations and information as the Company
shall request and shall otherwise cooperate with the Company in obtaining such
listing, registration, qualification, consent or approval. In the case of
Non-Employee Directors and other Persons subject to Section 16(b) of the
Securities Exchange Act of 1934, as amended, the Board may at any time impose
any limitations upon the grant and/or vesting of Restricted Stock Grants, shares
of Common Stock or upon the exercise of a Stock Option or Stock Appreciation
Right that, in the Board's discretion, are necessary or desirable in order to
comply with such Section 16(b) and the rules and regulations thereunder. If the
Company, as part of an offering of securities or otherwise, finds it desirable
because of federal or state regulatory requirements to reduce the period during
which any Stock Options or Stock Appreciation Rights may be exercised, the
Board, may, in its discretion and without the Participant's consent, so reduce
such period on not less than 15 days written notice to the holders thereof.

     8.2   WITHHOLDING OF TAXES. The Company shall be entitled, if necessary or
desirable, to withhold from any Participant from any amounts due and payable by
the Company to such Participant (or secure payment from such Participant in lieu
of withholding) the amount of any withholding or other tax due from the Company
with respect to any Incentives and/or shares of Common Stock subject to
Restricted Stock Grants or Stock Appreciation Rights or issuable under Stock
Options or Stock Appreciation Rights, and the Company may defer such issuance
unless indemnified to its satisfaction.

     8.3   RIGHTS OF PARTICIPANTS. Nothing in this Plan or in any Agreement
shall interfere with or limit in any way the right of the Company to terminate
any Participant's position as a director of the Company at any time (with or
without cause), nor confer upon any Participant any

                                      - 8 -
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right to continue as a director of the Company for any period of time or to
continue his present (or any other) rate of compensation as a director, and
except as otherwise provided under this Plan or by the Board in the Agreement.
In the event of any Participant's termination of his position as a director of
the Company (including, but not limited to, the removal by the Company without
Cause), any portion of such Participant's Restricted Stock Grant, Stock Option
or Stock Appreciation Right that was not previously vested, or vested and
exercisable, shall be repurchased or forfeited or expire as of the date of such
termination or removal. No employee shall have a right to be selected as a
Participant or, having been so elected, to be selected again as a Participant.

     8.4   AMENDMENT, SUSPENSION AND TERMINATION OF PLAN. The Board may suspend
or terminate the Plan or any portion thereof at any time and may amend from time
to time in such respects as the Board may deem advisable; no such amendment
shall be made without stockholder approval to the extent such approval is
required by law, agreement or the rules of any exchange upon which the shares of
Common Stock are listed, and no such amendment, suspension or termination shall
impair the rights of Participants in respect of then outstanding Restricted
Stock Grants, Stock Options or Stock Appreciation Rights granted under this Plan
without the consent of the Participants affected thereby. No Restricted Stock
Grants, Stock Options or Stock Appreciation Rights shall be granted hereunder
after the tenth anniversary of the adoption of the Plan.

     8.5   AMENDMENT, MODIFICATION AND CANCELLATION OF AGREEMENTS. The Board may
amend or modify any Restricted Stock Agreement, Stock Option Agreement or Stock
Appreciation Rights Agreement in any manner to the extent that the Board would
have had the authority under the Plan initially to grant Incentives in
accordance with such Restricted Stock Agreement, Stock Option Agreement or Stock
Appreciation Rights Agreement, provided that no such amendment or modification
shall impair the rights of any Participant under any Restricted Stock Agreement,
Stock Option Agreement or Stock Appreciation Rights Agreement without the
consent of such Participant. With the Participant's consent, the Board may
cancel any Stock Option or Stock Appreciation Right and issue a new Stock Option
and/or new Stock Appreciation Right to such Participant.

     8.6   TERM OF THE PLAN. This Plan shall be effective as of August 22, 2003,
subject to the ratification of the adoption of the Plan by the Board of
Directors and the approval of the Plan by the affirmative vote of the
stockholders of the Company entitled to vote thereon at the time of such
approval. No Incentive shall be granted under the Plan after August 22, 2013,
but the term and exercise of Incentives granted theretofore may extend beyond
that date.

                                 * * * * * * * *

                                      - 9 -

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