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                         BIOSANTE PHARMACEUTICALS, INC.
                              AMENDED AND RESTATED
                             1998 STOCK OPTION PLAN

                       (As amended through June 13, 2000)

1.       PURPOSE OF PLAN.

         The purpose of the BioSante Pharmaceuticals, Inc. 1998 Stock Option
Plan (the "Plan") is to advance the interests of BioSante Pharmaceuticals,
Inc. (the "Company") and its shareholders by enabling the Company and its
Subsidiaries to attract and retain persons of ability to perform services for
the Company and its Subsidiaries by providing an incentive to such
individuals through equity participation in the Company and by rewarding such
individuals who contribute to the achievement by the Company of its
objectives, as the Board of Directors describes them.

2.       DEFINITIONS.

         The following terms will have the meanings set forth below, unless
the context clearly otherwise requires:

         2.1 "ASE" means the Alberta Stock Exchange.

         2.2 "ASE REQUIREMENTS" means the by-laws, rules, circulars and
policies of the ASE.

         2.3 "BOARD" means the Board of Directors of the Company.

         2.4 "BROKER EXERCISE NOTICE" means a written notice pursuant to
which a Participant, upon exercise of an Option, irrevocably instructs a
broker or dealer to sell a sufficient number of shares or loan a sufficient
amount of money to pay all or a portion of the exercise price of the Option
and/or any related withholding tax obligations and remit such sums to the
Company and directs the Company to deliver stock certificates to be issued
upon such exercise directly to such broker or dealer.

         2.5 "CHANGE IN CONTROL" means an event described in Section 9.1 of
the Plan.

         2.6 "CODE" means the Internal Revenue Code of 1986, as amended.

         2.7 "COMMITTEE" means the group of individuals administering the
Plan, as provided in Section 3 of the Plan.

         2.8 "SUBORDINATE VOTING STOCK" means the subordinate voting stock of
the Company, no par value, or the number and kind of shares of stock or other
securities into which such subordinate voting stock may be changed in
accordance with Section 4.3 of the Plan.

         2.9 "DISABILITY" means the disability of the Participant such as
would entitle the Participant to receive disability income benefits pursuant
to the long-term disability plan of the Company or Subsidiary then covering
the Participant or, if no such plan exists or is applicable to the
Participant, the permanent and total disability of the Participant within the
meaning of Section 22(e)(3) of the Code.
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         2.10 "ELIGIBLE RECIPIENTS" means all employees of the Company or any
Subsidiary and any non-employee directors, officers, consultants and independent
contractors of the Company or any Subsidiary.

         2.11 "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

         2.12 "FAIR MARKET VALUE" means, with respect to the Subordinate Voting
Stock, as of any date (or, if no shares were traded or quoted on such date, as
of the next preceding date on which there was such a trade or quote) (a) the
mean between the reported high and low sale prices of the Subordinate Voting
Stock if the Subordinate Voting Stock is listed, admitted to unlisted trading
privileges or reported on any foreign or national securities exchange or on the
Nasdaq National Market or an equivalent foreign market on which sale prices are
reported; (b) if the Subordinate Voting Stock is not so listed, admitted to
unlisted trading privileges or reported, the closing bid price as reported by
the Nasdaq SmallCap Market, OTC Bulletin Board or the National Quotation Bureau,
Inc. or other comparable service; or (c) if the Subordinate Voting Stock is not
so listed or reported, such price as the Committee determines in good faith in
the exercise of its reasonable discretion.

         2.13 "INCENTIVE STOCK OPTION" means a right to purchase Subordinate
Voting Stock granted to an Eligible Recipient pursuant to Section 6 of the
Plan that qualifies as an "incentive stock option" within the meaning of
Section 422 of the Code.

         2.14 "NON-STATUTORY STOCK OPTION" means a right to purchase
Subordinate Voting Stock granted to an Eligible Recipient pursuant to Section
6 of the Plan that does not qualify as an Incentive Stock Option.

         2.15 "OPTION" means an Incentive Stock Option or a Non-Statutory
Stock Option.

         2.16 "PARTICIPANT" means an Eligible Recipient who receives one or
more Options under the Plan.

         2.17 "PREVIOUSLY ACQUIRED SHARES" means shares of Subordinate Voting
Stock or any other shares of capital stock of the Company that are already
owned by the Participant or, with respect to any Option, that are to be
issued upon the exercise of such Option.

         2.18 "RETIREMENT" means termination of employment or service
pursuant to and in accordance with the regular (or, if approved by the Board
for purposes of the Plan, early) retirement/pension plan or practice of the
Company or Subsidiary then covering the Participant, provided that if the
Participant is not covered by any such plan or practice, the Participant will
be deemed to be covered by the Company's plan or practice for purposes of
this determination.

         2.19     "SECURITIES ACT" means the Securities Act of 1933, as
amended.

         2.20 "SUBSIDIARY" means any entity that is directly or indirectly
controlled by the Company or any entity in which the Company has a
significant equity interest, as determined by the Committee.

         2.21 "TAX DATE" means the date any withholding tax obligation arises
under the Code or other applicable tax statute for a Participant with respect
to an Option.

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3.       PLAN ADMINISTRATION.

         3.1 THE COMMITTEE. The Plan will be administered by the Board or by
a committee of the Board. So long as the Company has a class of its equity
securities registered under Section 12 of the Exchange Act, any committee
administering the Plan will consist solely of two or more members of the
Board who are "non-employee directors" within the meaning of Rule 16b-3 under
the Exchange Act and, if the Board so determines in its sole discretion, who
are "outside directors" within the meaning of Section 162(m) of the Code.
Such a committee, if established, will act by majority approval of the
members (but may also take action with the written consent of all of the
members of such committee), and a majority of the members of such a committee
will constitute a quorum. As used in the Plan, "Committee" will refer to the
Board or to such a committee, if established. To the extent consistent with
corporate law, the Committee may delegate to any officers of the Company the
duties, power and authority of the Committee under the Plan pursuant to such
conditions or limitations as the Committee may establish; provided, however,
that only the Committee may exercise such duties, power and authority with
respect to Eligible Recipients who are subject to Section 16 of the Exchange
Act. The Committee may exercise its duties, power and authority under the
Plan in its sole and absolute discretion without the consent of any
Participant or other party, unless the Plan specifically provides otherwise.
Each determination, interpretation or other action made or taken by the
Committee pursuant to the provisions of the Plan will be final, conclusive
and binding for all purposes and on all persons, including, without
limitation, the Company, the shareholders of the Company, the participants
and their respective successors-in-interest. No member of the Committee will
be liable for any action or determination made in good faith with respect to
the Plan or any Option granted under the Plan.

         3.2      AUTHORITY OF THE COMMITTEE.

                  (a) In accordance with and subject to the provisions of the
         Plan, the Committee will have the authority to determine all provisions
         of Options as the Committee may deem necessary or desirable and as
         consistent with the terms of the Plan, including, without limitation,
         the following: (i) the Eligible Recipients to be selected as
         Participants; (ii) the nature and extent of the Options to be made to
         each Participant (including the number of shares of Subordinate Voting
         Stock to be subject to each Option, the exercise price and the manner
         in which Options will become exercisable) and the form of written
         agreement, if any, evidencing such Option; (iii) the time or times when
         Options will be granted; (iv) the duration of each Option; and (v) the
         restrictions and other conditions to which the Options may be subject.
         In addition, the Committee will have the authority under the Plan in
         its sole discretion to pay the economic value of any Option in the form
         of cash, shares of Subordinate Voting Stock, shares of any capital
         stock of the Company, or any combination of both.

                  (b) The Committee will have the authority under the Plan to
         amend or modify the terms of any outstanding Option in any manner,
         including, without limitation, the authority to modify the number of
         shares or other terms and conditions of an Option, extend the term of
         an Option, accelerate the exercisability or otherwise terminate any
         restrictions relating to an Option, accept the surrender of any
         outstanding Option or, to the extent not previously exercised or
         vested, authorize the grant of new Options in substitution for
         surrendered Options; provided, however that the amended or modified
         terms are permitted by the Plan as then in effect and that any
         Participant adversely

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         affected by such amended or modified terms has consented to such
         amendment or modification. No amendment or modification to an
         Option, however, whether pursuant to this Section 3.2 or any other
         provisions of the Plan, will be deemed to be a re-grant of such
         Option for purposes of this Plan.

                  (c) In the event of (i) any reorganization, merger,
         consolidation, recapitalization, liquidation, reclassification, stock
         dividend, stock split, combination of shares, rights offering,
         extraordinary dividend or divestiture (including a spin-off) or any
         other similar change in corporate structure or shares, (ii) any
         purchase, acquisition, sale or disposition of a significant amount of
         assets or a significant business, (iii) any change in accounting
         principles or practices, or (iv) any other similar change, in each case
         with respect to the Company or any other entity whose performance is
         relevant to the grant or vesting of an Option, the Committee (or, if
         the Company is not the surviving corporation in any such transaction,
         the board of directors of the surviving corporation) may, without the
         consent of any affected Participant, amend or modify the conditions to
         the exercisability of any outstanding Option that is based in whole or
         in part on the financial performance of the Company (or any Subsidiary
         or division thereof) or such other entity so as equitably to reflect
         such event, with the desired result that the criteria for evaluating
         such financial performance of the Company or such other entity will be
         substantially the same (in the sole discretion of the Committee or the
         board of directors of the surviving corporation) following such event
         as prior to such event; provided, however, that the amended or modified
         terms are permitted by the Plan as then in effect.

4.       SHARES AVAILABLE FOR ISSUANCE.

         4.1 MAXIMUM NUMBER OF SHARES AVAILABLE. Subject to Section 4.4 below
and adjustment as provided in Section 4.3 of the Plan, the maximum number of
shares of Subordinate Voting Stock that will be available for issuance under
the Plan will be 7,000,000 shares of Subordinate Voting Stock, plus any
shares of Subordinate Voting Stock which, as of the date the Plan is approved
by the shareholders of the Company, are reserved for issuance under the
Company's existing Stock Option Plan and which are not thereafter issued or
which have been issued but are subsequently forfeited and which would
otherwise have been available for further issuance under such plan.

         4.2 ACCOUNTING FOR OPTIONS. Shares of Subordinate Voting Stock that
are issued under the Plan or that are subject to outstanding Options will be
applied to reduce the maximum number of shares of Subordinate Voting Stock
remaining available for issuance under the Plan. Any shares of Subordinate
Voting Stock that are subject to an Option that lapses, expires, is forfeited
or for any reason is terminated unexercised and any shares of Subordinate
Voting Stock that are subject to an Option that is settled or paid in cash or
any form other than shares of Subordinate Voting Stock will automatically
again become available for issuance under the Plan.

         4.3 ADJUSTMENTS TO SHARES AND OPTIONS. In the event of any
reorganization, merger, consolidation, recapitalization, liquidation,
reclassification, stock dividend, stock split, combination of shares, rights
offering, divestiture or extraordinary dividend (including a spin-off) or any
other change in the corporate structure or shares of the Company, the
Committee (or, if the Company is not the surviving corporation in any such
transaction, the board of directors of the surviving corporation) will make
appropriate adjustment (which determination will be conclusive) as to the
number and kind of securities or other property (including cash) available

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for issuance or payment under the Plan and, in order to prevent dilution or
enlargement of the rights of Participants, the number and kind of securities
or other property (including cash) subject to, and the exercise price of,
outstanding Options.

         4.4 ASE REQUIREMENTS. So long as the Subordinate Voting Stock of the
Company is listed on the ASE and the Company has not been exempted from the
ASE Requirements in this regard:

                  (a) the aggregate number of shares of Subordinate Voting Stock
         that may be reserved for issuance pursuant to the Plan and any other
         stock option plan, stock purchase plan or for remuneration for any
         service performed for or on behalf of the Company shall not exceed 10%
         of the outstanding shares of Subordinate Voting Stock, on a non-diluted
         basis;

                  (b) the aggregate number of shares of Subordinate Voting Stock
         that may be reserved for issuance pursuant to the Plan and any other
         stock option plan, stock purchase plan or for remuneration for any
         service performed for or on behalf of the Company to any one party
         shall not exceed 5% of the outstanding shares of Subordinate Voting
         Stock, on a non-diluted basis;

                  (c) the aggregate number of shares of Subordinate Voting Stock
         that may be reserved for issuance pursuant to the Plan to any party
         other than a director, officer, employee or insider shall not exceed 1%
         of the outstanding shares of Subordinate Voting Stock of the Company,
         on a non-diluted basis per annum; and

                  (d) the aggregate number of shares of Subordinate Voting Stock
         that may be reserved for issuance pursuant to the Plan to all parties
         other than directors, officers, employees or insiders shall not exceed
         (i) 2.5% of the outstanding shares of Subordinate Voting Stock of the
         Company, on a non-diluted basis in any one calendar year, (ii) 10% of
         the outstanding shares of Subordinate Voting Stock of the Company, on a
         non-diluted basis at any time.

5.       PARTICIPATION.

         Participants in the Plan will be those Eligible Recipients who, in
the judgment of the Committee, have contributed, are contributing or are
expected to contribute to the achievement of objectives as determined by the
Board of the Company or its Subsidiaries. Eligible Recipients may be granted
from time to time one or more Options as may be determined by the Committee
in its sole discretion. Options will be deemed to be granted as of the date
specified in the grant resolution of the Committee, which date will be the
date of any related agreement with the Participant.

6.       OPTIONS.

         6.1 GRANT. An Eligible Recipient may be granted one or more Options
under the Plan, and such Options will be subject to such terms and
conditions, consistent with the other provisions of the Plan, as may be
determined by the Committee in its sole discretion. The Committee may
designate whether an Option is to be considered an Incentive Stock Option or
a Non-Statutory Stock Option. To the extent that any Incentive Stock Option
granted under the

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Plan ceases for any reason to qualify as an "incentive stock option" for
purposes of Section 422 of the Code, such Incentive Stock Option will
continue to be outstanding for purposes of the Plan but will thereafter be
deemed to be a Non-Statutory Stock Option.

         6.2 EXERCISE PRICE. The per share price to be paid by a Participant
upon exercise of an Option will be determined by the Committee in its
discretion at the time of the Option grant; provided, however, that (a) such
price will not be less than 100% of the Fair Market Value of one share of
Subordinate Voting Stock on the date of grant with respect to an Incentive
Stock Option (110% of the Fair Market Value if, at the time the Incentive
Stock Option is granted, the Participant owns, directly or indirectly, more
than 10% of the total combined voting power of all classes of stock of the
Company or any parent or subsidiary corporation of the Company), and (b) such
price will not be less than 85% of the Fair Market Value of one share of
Subordinate Voting Stock on the date of grant with respect to a Non-Statutory
Stock Option. Notwithstanding the foregoing, so long as the Subordinate
Voting Stock of the Company is listed on the ASE and the Company has not been
exempted from the ASE Requirements in this regard, the exercise price per
share of an Option shall not be less than the price per share permitted by
the ASE Requirements.

         6.3 EXERCISABILITY AND DURATION. An Option will become exercisable
at such times and in such installments as may be determined by the Committee
in its sole discretion at the time of grant; provided, however, that no
Incentive Stock Option may be exercisable after 10 years from its date of
grant (five years from its date of grant if, (a) at the time the Incentive
Stock Option is granted, the Participant owns, directly or indirectly, more
than 10% of the total combined voting power of all classes of stock of the
Company or any parent or subsidiary corporation of the Company or (b) the
Subordinate Voting Stock of the Company is then listed on the ASE and the
Company has not been exempted from the ASE Requirements in this regard).

         6.4 PAYMENT OF EXERCISE PRICE. The total purchase price of the
shares to be purchased upon exercise of an Option must be paid entirely in
cash (including check, bank draft or money order); provided, however, that
the Committee, in its sole discretion and upon terms and conditions
established by the Committee, may allow such payments to be made, in whole or
in part, by tender of a Broker Exercise Notice, Previously Acquired Shares, a
promissory note (on terms acceptable to the Committee in its sole discretion)
or by a combination of such methods.

         6.5 MANNER OF EXERCISE. An Option may be exercised by a Participant
in whole or in part from time to time, subject to the conditions contained in
the Plan and in the agreement evidencing such Option, by delivery in person,
by facsimile or electronic transmission or through the mail of written notice
of exercise to the Company (Attention: Chief Financial Officer) at its
principal executive office in Lincolnshire, Illinois and by paying in full
the total exercise price for the shares of Subordinate Voting Stock to be
purchased in accordance with Section 6.4 of the Plan.

         6.6 AGGREGATE LIMITATION OF STOCK SUBJECT TO INCENTIVE STOCK
OPTIONS. To the extent that the aggregate Fair Market Value (determined as of
the date an Incentive Stock Option is granted) of the shares of Subordinate
Voting Stock with respect to which incentive stock options (within the
meaning of Section 422 of the Code) are exercisable for the first time by a
Participant during any calendar year (under the Plan and any other incentive
stock option plans of the Company or any subsidiary or parent corporation of
the Company (within the meaning of the

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Code)) exceeds $100,000 (or such other amount as may be prescribed by the
Code from time to time), such excess Options will be treated as Non-Statutory
Stock Options. The determination will be made by taking incentive stock
options into account in the order in which they were granted. If such excess
only applies to a portion of an Incentive Stock Option, the Committee, in its
discretion, will designate which shares will be treated as shares to be
acquired upon exercise of an Incentive Stock Option.

7.       EFFECT OF TERMINATION OF EMPLOYMENT OR OTHER SERVICE.

         7.1 TERMINATION DUE TO DEATH, DISABILITY OR RETIREMENT. Unless
otherwise provided by the Committee in its sole discretion in the agreement
evidencing an Option:

                  (a) In the event a Participant's employment or other service
         with the Company and all Subsidiaries is terminated by reason of death
         or Disability, all outstanding Options then held by the Participant
         will remain exercisable, to the extent exercisable as of the date of
         such termination, for a period of six months after such termination
         (but in no event after the expiration date of any such Option).

                  (b) In the event a Participant's employment or other service
         with the Company and all Subsidiaries is terminated by reason of
         Retirement, all outstanding Options then held by the Participant will
         remain exercisable, to the extent exercisable as of the date of such
         termination, for a period of three months after such termination (but
         in no event after the expiration date of any such Option).

         7.2 TERMINATION FOR REASONS OTHER THAN DEATH, DISABILITY OR RETIREMENT.

                  (a) Unless otherwise provided by the Committee in its sole
         discretion in the agreement evidencing an Option, in the event a
         Participant's employment or other service is terminated with the
         Company and all Subsidiaries for any reason other than death,
         Disability or Retirement, or a Participant is in the employ or service
         of a Subsidiary and the Subsidiary ceases to be a Subsidiary of the
         Company (unless the Participant continues in the employ or service of
         the Company or another Subsidiary), all rights of the Participant under
         the Plan and any agreements evidencing an Option will immediately
         terminate without notice of any kind, and no Options then held by the
         Participant will thereafter be exercisable; provided, however, that if
         such termination is due to any reason other than termination by the
         Company or any Subsidiary for "cause," all outstanding Options then
         held by such Participant will remain exercisable, to the extent
         exercisable as of such termination, for a period of three months after
         such termination (but in no event after the expiration date of any such
         Option).

                  (b) For purposes of this Section 7.2, "cause" (as determined
         by the Committee) will be as defined in any employment or other
         agreement or policy applicable to the Participant or, if no such
         agreement or policy exists, will mean (i) dishonesty, fraud,
         misrepresentation, embezzlement or deliberate injury or attempted
         injury, in each case related to the Company or any Subsidiary, (ii) any
         unlawful or criminal activity of a serious nature, (iii) any
         intentional and deliberate breach of a duty or duties that,
         individually or in the aggregate, are material in relation to the
         Participant's overall duties, or (iv) any material breach of any
         employment, service, confidentiality or non-compete agreement entered
         into with the Company or any Subsidiary.

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         7.3 MODIFICATION OF RIGHTS UPON TERMINATION. Notwithstanding the
other provisions of this Section 7, upon a Participant's termination of
employment or other service with the Company and all Subsidiaries, the
Committee may, in its sole discretion (which may be exercised at any time on
or after the date of grant, including following such termination), cause
Options (or any part thereof) then held by such Participant to become or
continue to become exercisable and/or remain exercisable following such
termination of employment or service; provided, however, that no Option may
remain exercisable beyond its expiration date.

         7.4 EXERCISE OF INCENTIVE STOCK OPTIONS FOLLOWING TERMINATION. Any
Incentive Stock Option that remains unexercised more than one year following
termination of employment by reason of Disability or more than three months
following termination for any reason other than death or Disability will
thereafter be deemed to be a Non-Statutory Stock Option.

         7.5 DATE OF TERMINATION OF EMPLOYMENT OR OTHER SERVICE. Unless the
Committee otherwise determines in its sole discretion, a Participant's
employment or other service will, for purposes of the Plan, be deemed to have
terminated on the date recorded on the personnel or other records of the
Company or the Subsidiary for which the Participant provides employment or
other service, as determined by the Committee in its sole discretion based
upon such records.

8.       PAYMENT OF WITHHOLDING TAXES.

         8.1 GENERAL RULES. The Company is entitled to (a) withhold and
deduct from future wages of the Participant (or from other amounts that may
be due and owing to the Participant from the Company or a Subsidiary), or
make other arrangements for the collection of, all legally required amounts
necessary to satisfy any and all foreign, federal, state and local
withholding and employment-related tax requirements attributable to an
Option, including, without limitation, the grant or exercise of an Option or
a disqualifying disposition of stock received upon exercise of an Incentive
Stock Option, or (b) require the Participant promptly to remit the amount of
such withholding to the Company before taking any action, including issuing
any shares of Subordinate Voting Stock, with respect to an Option.

         8.2 SPECIAL RULES. The Committee may, in its sole discretion and
upon terms and conditions established by the Committee, permit or require a
Participant to satisfy, in whole or in part, any withholding or
employment-related tax obligation described in Section 8.1 of the Plan by
electing to tender Previously Acquired Shares, a Broker Exercise Notice or a
promissory note (on terms acceptable to the Committee in its sole
discretion), or by a combination of such methods.

9.       CHANGE IN CONTROL.

         9.1 CHANGE IN CONTROL. For purposes of this Section 9, a "Change in
Control" of the Company will mean the following:

                  (a) the sale, lease, exchange or other transfer, directly or
         indirectly, of substantially all of the assets of the Company (in one
         transaction or in a series of related transactions) to a person or
         entity that is not controlled by the Company;

                  (b) the approval by the shareholders of the Company of any
         plan or proposal for the liquidation or dissolution of the Company;

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                  (c) any person becomes after the effective date of the Plan
         the "beneficial owner" (as defined in Rule 13d-3 under the Exchange
         Act), directly or indirectly, of (i) 20% or more, but not 50% or more,
         of the combined voting power of the Company's outstanding securities
         ordinarily having the right to vote at elections of directors, unless
         the transaction resulting in such ownership has been approved in
         advance by the Continuity Directors (as defined in Section 9.2 below),
         or (ii) 50% or more of the combined voting power of the Company's
         outstanding securities ordinarily having the right to vote at elections
         of directors (regardless of any approval by the Continuity Directors);

                  (d) a merger or consolidation to which the Company is a party
         if the shareholders of the Company immediately prior to effective date
         of such merger or consolidation have "beneficial ownership" (as defined
         in Rule 13d-3 under the Exchange Act), immediately following the
         effective date of such merger or consolidation, of securities of the
         surviving corporation representing (i) more than 50%, but less than
         80%, of the combined voting power of the surviving corporation's then
         outstanding securities ordinarily having the right to vote at elections
         of directors, unless such merger or consolidation has been approved in
         advance by the Continuity Directors, or (ii) 50% or less of the
         combined voting power of the surviving corporation's then outstanding
         securities ordinarily having the right to vote at elections of
         directors (regardless of any approval by the Continuity Directors);

                  (e) the Continuity Directors cease for any reason to
         constitute at least a majority of the Board; or

                  (f) any other change in control of the Company of a nature
         that would be required to be reported pursuant to Section 13 or 15(d)
         of the Exchange Act, whether or not the Company is then subject to such
         reporting requirement.

         9.2 CONTINUITY DIRECTORS. For purposes of this Section 9,
"Continuity Directors" of the Company will mean any individuals who are
members of the Board on the effective date of the Plan and any individual who
subsequently becomes a member of the Board whose election, or nomination for
election by the Company's shareholders, was approved by a vote of at least a
majority of the Continuity Directors (either by specific vote or by approval
of the Company's proxy statement in which such individual is named as a
nominee for director without objection to such nomination).

         9.3 ACCELERATION OF EXERCISABILITY. Without limiting the authority
of the Committee under Sections 3.2 and 4.3 of the Plan, if a Change in
Control of the Company occurs, then, unless otherwise provided by the
Committee in its sole discretion either in the agreement evidencing an Option
at the time of grant or at any time after the grant of an Option, all
outstanding Options will become immediately exercisable in full and will
remain exercisable for the remainder of their terms, regardless of whether
the Participant to whom such Options have been granted remains in the employ
or service of the Company or any Subsidiary.

10.      RIGHTS OF ELIGIBLE RECIPIENTS AND PARTICIPANTS; TRANSFERABILITY.

         10.1 EMPLOYMENT OR SERVICE. Nothing in the Plan will interfere with
or limit in any way the right of the Company or any Subsidiary to terminate
the employment or service of any

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Eligible Recipient or Participant at any time, nor confer upon any Eligible
Recipient or Participant any right to continue in the employ or service of
the Company or any Subsidiary.

         10.2 RIGHTS AS A SHAREHOLDER. As a holder of Options, a Participant
will have no rights as a shareholder unless and until such Options are
exercised for, or paid in the form of, shares of Subordinate Voting Stock and
the Participant becomes the holder of record of such shares. Except as
otherwise provided in the Plan, no adjustment will be made for dividends or
distributions with respect to such Options as to which there is a record date
preceding the date the Participant becomes the holder of record of such
shares, except as the Committee may determine in its discretion.

         10.3 RESTRICTIONS ON TRANSFER. Except pursuant to testamentary will
or the laws of descent and distribution or as otherwise expressly permitted
by the Plan (unless approved by the Committee in its sole discretion and the
ASE, if necessary), no right or interest of any Participant in an Option
prior to the exercise of such Option will be assignable or transferable, or
subjected to any lien, during the lifetime of the Participant, either
voluntarily or involuntarily, directly or indirectly, by operation of law or
otherwise. A Participant will, however, be entitled to designate a
beneficiary to receive an Option upon such Participant's death, and in the
event of a Participant's death, payment of any amounts due under the Plan
will be made to, and exercise of Options (to the extent permitted pursuant to
Section 7 of the Plan) may be made by, the Participant's legal
representatives, heirs and legatees.

         10.4 BREACH OF CONFIDENTIALITY OR NON-COMPETE AGREEMENTS.
Notwithstanding anything in the Plan to the contrary, in the event that a
Participant materially breaches the terms of any confidentiality or
non-compete agreement entered into with the Company or any Subsidiary,
whether such breach occurs before or after termination of such Participant's
employment or other service with the Company or any Subsidiary, the Committee
in its sole discretion may immediately terminate all rights of the
Participant under the Plan and any agreements evidencing an Option then held
by the Participant without notice of any kind.

         10.5 NON-EXCLUSIVITY OF THE PLAN. Nothing contained in the Plan is
intended to modify or rescind any previously approved compensation plans or
programs of the Company or create any limitations on the power or authority
of the Board to adopt such additional or other compensation arrangements as
the Board may deem necessary or desirable.

11.      SECURITIES LAW AND OTHER RESTRICTIONS.

         Notwithstanding any other provision of the Plan or any agreements
entered into pursuant to the Plan, the Company will not be required to issue
any shares of Subordinate Voting Stock under this Plan, and a Participant may
not sell, assign, transfer or otherwise dispose of shares of Subordinate
Voting Stock issued pursuant to Options granted under the Plan, unless (a)
there is in effect with respect to such shares a registration statement under
the Securities Act and any applicable state or foreign securities laws or an
exemption from such registration under the Securities Act and applicable
state or foreign securities laws, and (b) there has been obtained any other
consent, approval or permit from any other regulatory body which the
Committee, in its sole discretion, deems necessary or advisable. The Company
may condition such issuance, sale or transfer upon the receipt of any
representations or agreements from the parties involved, and the placement of
any legends on certificates representing shares of Subordinate Voting Stock,
as

                                     10
<PAGE>

may be deemed necessary or advisable by the Company in order to comply with
such securities law or other restrictions.

12.      PLAN AMENDMENT, MODIFICATION AND TERMINATION.

         The Board may suspend or terminate the Plan or any portion thereof
at any time, and may amend the Plan from time to time in such respects as the
Board may deem advisable in order that Options under the Plan will conform to
any change in applicable laws or regulations or in any other respect the
Board may deem to be in the best interests of the Company; provided, however,
that no amendments to the Plan will be effective without approval of the
shareholders of the Company if shareholder approval of the amendment is then
required pursuant to Section 422 of the Code or the rules of any stock
exchange or Nasdaq or similar regulatory body. No termination, suspension or
amendment of the Plan may adversely affect any outstanding Option without the
consent of the affected Participant; provided, however, that this sentence
will not impair the right of the Committee to take whatever action it deems
appropriate under Sections 3.2, 4.3 and 9 of the Plan.

13.      EFFECTIVE DATE AND DURATION OF THE PLAN.

         The Plan is effective as of December 8, 1998, the date it was
adopted by the Board. The Plan will terminate at midnight on December 8, 2008
and may be terminated prior to such time to by Board action, and no Option
will be granted after such termination. Options outstanding upon termination
of the Plan may continue to be exercised in accordance with their terms.

14.      MISCELLANEOUS.

         14.1 GOVERNING LAW. The validity, construction, interpretation,
administration and effect of the Plan and any rules, regulations and actions
relating to the Plan will be governed by and construed exclusively in
accordance with the laws of the State of Wyoming, notwithstanding the
conflicts of laws principles of any jurisdictions.

         14.2 SUCCESSORS AND ASSIGNS. The Plan will be binding upon and inure
to the benefit of the successors and permitted assigns of the Company and the
Participants.

                                      11<PAGE>

                                                                    Exhibit 10.1

                              EMPLOYMENT AGREEMENT

                  EMPLOYMENT AGREEMENT, dated as of this 15th day of March,
2000, between INFORMATION HOLDINGS INC. (the "Company"), and Mason Slaine (the
"Executive").

                                R E C I T A L S:

                  WHEREAS, Information Ventures LLC, a limited liability company
with respect to which the Company is the Managing Member ("Ventures") and
Executive have previously entered into an Employment Agreement dated as of
December 31, 1996 (the "Original Agreement") pursuant to which Executive is
currently employed by Ventures as President and Chief Executive Officer; and

                  WHEREAS, the Company, Ventures and Executive desire to replace
the Original Agreement with this Agreement which will supersede the Original
Agreement in all respects;

                  NOW, THEREFORE, on the basis of the foregoing premises and in
consideration of the mutual covenants and agreements contained herein, the
parties hereto agree as follows:

                  Section 1. EMPLOYMENT. The Company hereby agrees to employ the
Executive and the Executive hereby accepts employment with the Company, on the
terms and subject to the conditions hereinafter set forth. Subject to the terms
and conditions contained herein, the Executive shall serve as a President and
Chief Executive Officer of the Company and, in such capacity, shall report
directly to the Board of Directors and shall have such duties as are typically
performed by a president and chief executive officer of a corporation, together
with such additional duties, commensurate with the Executive's position as a
President of the Company, as may be assigned to the Executive from time to time
by the Board of Directors of the Company (the "Board of Directors"). The
principal location of the Executive's employment shall be at the Company's
principal executive office located in the Greater New York Area, or such other
place that the Company and Executive shall jointly deem appropriate to locate
the office, although the Executive understands and agrees that he may be
required to travel from time to time for business reasons.

                  Section 2. (a). TERM. Unless terminated pursuant to Section 6
hereof, the Executive's employment hereunder shall

<PAGE>

commence on the date hereof and shall continue until June 30, 2001 (the "Initial
Term"). Thereafter, the Initial Term shall extend automatically for an
indeterminate number of consecutive periods of one (1) year unless either party
shall provide notice of termination not less than sixty (60) days prior to the
end of the Initial Term or any subsequent one-year extension thereof. The
Initial Term, together with any extension pursuant to this Section 2, is
referred to herein as the "Employment Term".

                  Section 3.  COMPENSATION.

                      (a). SALARY. As compensation for the performance of the
Executive's services hereunder, the Company shall pay to the Executive an annual
salary (the "Salary"). From the date hereof until June 30, 2000, the Company
shall pay to Executive the Salary currently in effect under the Original
Agreement. For the year from July 1, 2000 through June 30, 2001, the Company
shall pay to Executive a Salary of $700,000. For the year from July 1, 2001
through June 30, 2002, the Company shall pay to Executive a Salary of $750,000.
The Salary shall be payable in accordance with the payroll practices of the
Company as the same shall exist from time to time. In no event shall the Salary
be decreased during the Employment Term.

                      (b). BONUS PLAN. The Executive shall be eligible to
receive an annual cash bonus ("Bonus") which shall be determined by the Board of
Directors.

                      (c). BENEFITS. In addition to the Salary and Bonus, if
any, the Executive shall be entitled to participate in health, insurance,
pension, automobile and other benefits provided to other senior executives of
the Company on terms no less favorable than those available to such senior
executives of the Company. The Executive shall also be entitled to the same
number of vacation days, holidays, sick days and other benefits as are generally
allowed to other senior executives of businesses of comparable size and
geography as the Company, including a leased car. In addition to the regular
health insurance provided to other senior executives of the Company, the Company
shall provide Executive with supplemental health insurance providing for up to
$25,000 reimbursement to Executive for medical bills not covered by the
Company's regular health insurance plan.

                      (d). STOCK OPTIONS. On the date hereof, the Company shall
grant (the "Initial Grant") to Executive options to purchase 200,000 shares of
the common stock of the Company, par value $0.01 per share (the "Common Stock")
(the option to purchase any one share of Common Stock hereafter referred to as

                                      -2-
<PAGE>

an "Option"). With respect to the Initial Grant, the grant of 6,000 Options
shall be subject to the approval of the shareholders of the Company at the next
annual meeting of shareholders. On the date that is the first anniversary of the
date hereof, provided Executive is then employed by the Company, the Company
shall grant to Executive additional Options to purchase 200,000 shares of Common
Stock. Each Option shall have an exercise price equal to the fair market value
of one share of Common Stock as of its respective date of its grant. The Options
shall be unexercisable until vested. The Options shall vest and become
exercisable at the rate of 100,000 on the first anniversary of the respective
date of grant and an additional 100,000 on the second anniversary of the
respective date of grant. To the extent not already vested, all outstanding
Options shall become immediately vested and exercisable upon a Change of
Control, as defined herein. The Options shall be granted pursuant to the
Information Holdings Inc. 1998 Stock Option Plan (the "Option Plan") and shall
have such other terms and conditions as are set forth in the Option Agreement
attached hereto as Exhibit A.

                  Section 4. EXCLUSIVITY. During the Employment Term, the
Executive shall devote his full time to the business of the Company, shall
faithfully serve the Company, shall in all respects conform to and comply with
the lawful and reasonable directions and instructions given to him by the Board
of Directors in accordance with the terms of this Agreement, shall use his best
efforts to promote and serve the interests of the Company and shall not engage
in any other business activity, whether or not such activity shall be engaged in
for pecuniary profit, except that the Executive may (i) participate in the
activities of professional trade organizations related to the business of the
Company, (ii) serve on the board of directors of other companies which do not
have competing interests with the business interests of the Company and (iii)
engage in personal investing activities with respect to companies and other
entities that do not have competing interests with those of the Company;
PROVIDED that activities set forth in these clauses (i), (ii) and (iii), either
singly or in the aggregate, do not interfere in any material respect with the
services to be provided by the Executive hereunder or conflict with Executive's
duty of loyalty to the Company; and FURTHER PROVIDED that the foregoing shall
not preclude the Executive from owning less than 2% of the shares of a public
company.

                  Section 5. REIMBURSEMENT FOR EXPENSES. The Executive is
authorized to incur reasonable expenses in the discharge of

                                      -3-
<PAGE>

the services to be performed hereunder, including expenses for travel,
entertainment, lodging and similar items in accordance with the Company's
expense reimbursement policy, as the same may be modified by the Board of
Directors from time to time. The Company shall reimburse the Executive for all
such proper expenses upon presentation by the Executive of itemized accounts of
such expenditures in accordance with the financial policy of the Company, as in
effect from time to time.

                  Section 6.  TERMINATION AND DEFAULT.

                      (a). DEATH. This Agreement shall automatically terminate
upon the death of the Executive and upon such event, either prior to or
following a Change of Control, the Executive's estate shall be entitled to
receive the amounts specified in Section 6(f) below as if termination had
occurred for Good Reason prior to a Change of Control. In addition, in the event
of the death of Executive, all outstanding stock options then held by Executive,
issued pursuant to the Option Plan (or any successor plan), shall become fully
vested and exercisable.

                      (b). DISABILITY. If the Executive is unable to perform the
duties required of him under this Agreement because of illness, incapacity, or
physical or mental disability, this Agreement shall remain in full force and
effect and the Company shall pay all compensation required to be paid to the
Executive hereunder, unless the Executive is unable to perform the duties
required of him under this Agreement for an aggregate of 180 days (whether or
not consecutive) during any 12-month period during the term of this Agreement,
in which event this Agreement (other than Sections 6(f), 7, 8, and 10 hereof),
including, but not limited to, the Company's obligations to pay any Salary or to
provide any privileges under this Agreement, shall terminate at the end of the
180 days of complete disability. In addition, in the event of such termination
upon disability, all outstanding stock options then held by Executive, issued
pursuant to the Option Plan (or any successor plan), shall become fully vested
and exercisable.

                      (c). JUST CAUSE. The Company may terminate the Executive's
employment during any term hereunder with or without "Just Cause" as that term
is defined below. In the event of termination pursuant to this Section 6(c) for
Just Cause, the Company shall deliver to the Executive written notice setting
forth the basis for such termination, which notice shall specifically set forth
the nature of the Just Cause which is the reason for such termination.
Termination of the Executive's employment hereunder shall be effective upon
delivery of such

                                      -4-
<PAGE>

notice of termination. For purposes of this Agreement, "Just Cause" shall mean:
(i) the Executive's willful failure (other than a failure resulting from
Executive's complete or partial incapacity due to physical or mental illness or
impairment), neglect or refusal to perform the material duties of his position
hereunder which failure, neglect or refusal shall not have been corrected by the
Executive within 30 days of receipt by the Executive of written notice from the
Company of such failure, neglect or refusal, which notice shall specifically set
forth the nature of said failure, neglect or refusal, (ii) any willful or
intentional act of the Executive that has the effect of materially injuring the
business of the Company or its affiliates in any material respect; (iii)
conviction of the Executive for the commission of a felony; or (iv) the
commission by the Executive of an act of fraud or embezzlement against the
Company. No act, or failure to act, by the Executive shall be considered
"willful" unless committed without good faith and without a reasonable belief
that the act or omission was in the Company's best interest.

                      (d). GOOD REASON. The Executive may resign for "Good
Reason" if he resigns from his employment hereunder following a Substantial
Breach (as hereinafter defined) and such Substantial Breach shall not have been
corrected by the Company within thirty (30) days of receipt by the Company of
written notice from the Executive of the occurrence of such Substantial Breach,
which notice shall specifically set forth the nature of the Substantial Breach
which is the reason for such resignation. The term "Substantial Breach" means
(i) such actions taken by the Company or its Members which prevent the Executive
from performing his responsibilities hereunder; PROVIDED, HOWEVER, that the
Members' exercise of its right to approve or not approve any transaction shall
not be deemed to be an action which would prevent the Executive from performing
his responsibilities hereunder; (ii) the failure by the Company to pay to the
Executive the Salary and Bonus, if any, in accordance with Sections 3(a) and
3(b) hereof; (iii) the failure by the Company to allow the Executive to
participate in the Company's employee benefit plans generally available from
time to time to senior executives of the Company; (iv) a material diminution in
the Executive's responsibilities or authority or a requirement to relocate that
is not in accordance with the provisions of Section 1 hereof; or (v) the failure
of any successor to all or substantially all of the business and/or assets of
the Company to assume this Agreement; PROVIDED, HOWEVER, that the term
"Substantial Breach" shall not include a termination of the Executive's
employment hereunder pursuant to Sections 6(b) or (c)

                                      -5-
<PAGE>

hereof. The date of termination of the Executive's employment under this Section
6(d) shall be the effective date of any resignation specified in writing by the
Executive, which shall not be less than thirty (30) days after receipt by the
Company of written notice of such resignation, provided that such resignation
shall not be effective pursuant to this Section 6(d) and the Substantial Breach
shall be deemed to have been cured if such Substantial Breach is corrected by
the Company during such 30-day period.

                      (e). CHANGE OF CONTROL. During the 90-day period following
a Change of Control, the Executive shall have the right to immediately resign
his employment. A Change of Control shall be deemed to have occurred:

                           (i) upon the acquisition by any individual, entity or
group (within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act")) (a "Person"), other than
Warburg, Pincus Ventures, L.P., either directly or indirectly through one or
more affiliated entities (collectively "Warburg"), of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 50% or
more of either (x) the then outstanding shares of common stock of the Company
(the "Outstanding Company Common Stock") or (y) the combined voting power of the
then outstanding voting securities of the Company entitled to vote generally in
the election of directors (the "Outstanding Company Voting Securities");
PROVIDED, HOWEVER, that for purposes of this subsection (i), the following
acquisitions shall not constitute a Change of Control: (A) any acquisition by
the Company, (B) any acquisition by any employee benefit plan (or related trust)
sponsored or maintained by the Company or (C) any acquisition by any corporation
pursuant to a transaction which complies with clauses (A), (B), and (C) of
subsection (iii) of this Section 6(e); or

                           (ii) if individuals who, as of the date hereof,
constitute the Board of Directors (the "Incumbent Board") cease for any reason
to constitute at least a majority of the Board of Directors; PROVIDED, HOWEVER,
that any individual becoming a director subsequent to the date hereof whose
election, or nomination for election by the Company's shareholders, was approved
by a vote of at least a majority of the directors then comprising the Incumbent
Board shall be considered as though such individual were a member of the
Incumbent Board, but excluding, for this purpose, any such individual whose
initial assumption of office occurs as a result of an actual or threatened
election contest with respect to the election or removal of directors or

                                      -6-
<PAGE>

other actual or threatened solicitation of proxies or consents by or on behalf
of a Person other than the Board; or

                           (iii) upon the consummation of a reorganization,
merger or consolidation or sale or other disposition of all or substantially all
of the assets of the Company (a "Business Combination"), in each case, unless,
following such Business Combination, (A) all or substantially all of the
individuals and entities who were the beneficial owners, respectively, of the
Outstanding Company Common Stock and Outstanding Company Voting Securities
immediately prior to such Business Combination beneficially own, directly or
indirectly, more than 50% of, respectively, the then outstanding shares of
common stock and the combined voting power of the then outstanding voting
securities entitled to vote generally in the election of directors, as the case
may be, of the corporation resulting from such Business Combination (including,
without limitation, a corporation which as a result of such transaction owns the
Company or all or substantially all of the Company's assets either directly or
through one or more subsidiaries) in substantially the same proportions as their
ownership, immediately prior to such Business Combination, of the Outstanding
Company Common Stock and Outstanding Company Voting Securities, as the case may
be, (B) no Person (excluding (1) Warburg, (2) any corporation resulting from
such Business Combination, or (3) any employee benefit plan (or related trust)
of the Company or such corporation resulting from such Business Combination)
beneficially owns, directly or indirectly, 50% or more of, respectively, the
then outstanding shares of common stock of the corporation resulting from such
Business Combination or the combined voting power of the then outstanding voting
securities of such corporation except to the extent that such ownership existed
prior to the Business Combination and (C) at least a majority of the members of
the board of directors of the corporation resulting from such Business
Combination were members of the Incumbent Board at the time of the execution of
the initial agreement, or of the action of the Board, providing for such
Business Combination; or

                           (iv) upon the approval by the shareholders of the
Company of a complete liquidation or dissolution of the Company.

                      In the event that Executive resigns pursuant to this
Section 6(e) or if the Company terminates Executive's employment without Just
Cause following a Change of Control, the Company shall pay to Executive in a
lump sum an amount equal to three times (i) the Salary in effect immediately
prior to the termination of employment plus (ii) the Bonus Executive received
for the fiscal year immediately prior to the fiscal year in which

                                      -7-
<PAGE>

his termination of employment occurred. Payments pursuant to this Section 6(e)
shall not apply to termination of Executive's employment on account of his
death.

                      (f). PAYMENTS. In the event that the Executive resigns
without Good Reason or the Executive's employment hereunder terminates for Just
Cause, the Company shall pay to the Executive all amounts accrued but unpaid
hereunder through the date of termination in respect of Salary, unused vacation
or unreimbursed expenses. In the event the Executive's employment hereunder is
terminated by the Company without Just Cause or by the Executive with Good
Reason, in addition to the amounts specified in the foregoing sentence, (i) the
Executive shall continue to receive the Salary (less any applicable withholding
or similar taxes) at the rate in effect hereunder on the date of such
termination periodically, in accordance with the Company's prevailing payroll
practices, for a period of twelve months following the date of such termination
(the "Severance Term") and (ii) the Executive (and/or his covered dependents)
shall continue to receive any health or insurance benefits provided to him as of
the date of such termination in accordance with Section 3(c) hereof during the
Severance Term. The severance amounts payable in Section 6(f)(i) above upon a
termination of employment shall only be payable in the event that Executive
terminates employment prior to a Change of Control. Any severance payment to
Executive for termination of employment following a Change of Control shall be
governed by Section 6(e); provided, however, that the payments and benefits
pursuant to the first sentence of this Section 6(f) and subsection (ii) above
shall continue to apply for a termination of Executive's employment following a
Change of Control. Amounts owed by the Company in respect of the Salary or
reimbursement for expenses under the provisions of Section 5 hereof shall,
except as otherwise set forth in this Section 6(f), be paid promptly upon any
termination. Upon any termination of this Agreement, all of the rights,
privileges and duties of the Executive hereunder shall cease, except for his
rights under this Section 6(f) and his obligations under Sections 7, 8, 9, 10,
and 11 hereunder.

                      (g) TAX RESTORATION PAYMENT. In the event it is determined
that any payment or distribution of any type to or for the benefit of the
Executive, pursuant to this Agreement or otherwise, by the Company, any person
who acquires ownership or effective control of the Corporation, or ownership of
a substantial portion of the assets of the Corporation (within the meaning of
section 280G of the Internal Revenue Code of 1986, as amended (the "Code"), and
the regulations thereunder) or any

                                      -8-
<PAGE>

affiliate of such Person (the "Total Payments") would be subject to the excise
tax imposed by section 4999 of the Code or any interest or penalties with
respect to such excise tax (such excise tax, together with any such interest and
penalties, are collectively referred to as , the "Excise Tax"), then the
Executive shall be entitled to receive an additional payment (a "Tax Restoration
Payment") in an amount such that, after payment by the Executive of all taxes
(including any interest or penalties imposed with respect to such taxes),
including any Excise Tax, imposed upon the Tax Restoration Payment, the
Executive retains an amount of the Tax Restoration Payment equal to the Excise
Tax imposed upon the Total Payments.

                  Section 7.  NON-DISCLOSURE NON-INTERFERENCE AND INVENTIONS.

                      (a). NO COMPETING EMPLOYMENT. The Executive acknowledges
that the agreements and covenants contained in this Section 7 are essential to
protect the value of the Company's business and assets and by his current
employment with the Company and its subsidiaries, the Executive has obtained and
will obtain such knowledge, contacts, know-how, training and experience and
there is a substantial probability that such knowledge, know-how, contacts,
training and experience could be used to the substantial advantage of a
competitor of the Company and to the Company's substantial detriment. Therefore,
the Executive agrees that for the period commencing on the date of this
Agreement and ending on the second anniversary of the termination of the
Executive's employment hereunder (such period is hereinafter referred to as the
"Restricted Period" and the two-year period during the Restricted Period
following executive's termination of employment is hereinafter referred to as
the "Post Termination Period"), the Executive shall not participate or engage,
directly or indirectly, for himself or on behalf of or in conjunction with any
person, partnership, corporation or other entity, whether as an employee, agent,
officer, director, shareholder, partner, joint venturer, investor or otherwise,
in any business activities in the United States if such activity consists of any
activity undertaken or expressly contemplated to be undertaken by the Company or
any of its subsidiaries or by the Executive at any time during the Employment
Term; PROVIDED, HOWEVER, that the foregoing shall not preclude the Executive
from owning less than 2% of the shares of a public company. Notwithstanding the
foregoing, this Section 7(a) shall not apply if the Company terminates the
Executive's employment without Just Cause or the Executive resigns for Good
Reason pursuant to Section 6(d).

                                      -9-
<PAGE>

                      (b). NONDISCLOSURE OF CONFIDENTIAL INFORMATION. The
Executive, except in connection with his employment hereunder, shall not
disclose to any person or entity or use, either during the Employment Term or at
any time thereafter, any information not in the public domain or generally known
in the industry, in any form, acquired by the Executive while employed by the
Company or any predecessor to the Company's business or, if acquired following
the Employment Term, such information which, to the Executive's knowledge, has
been acquired, directly or indirectly, from any person or entity owing a duty of
confidentiality to the Company or any of its subsidiaries or affiliates,
relating to the Company, its subsidiaries or affiliates. The Executive agrees
and acknowledges that all of such information, in any form, and copies and
extracts thereof, are and shall remain the sole and exclusive property of the
Company, and upon termination of his employment with the Company, the Executive
shall return to the Company the originals and all copies of any such information
provided to or acquired by the Executive in connection with the performance of
his duties for the Company, and shall return to the Company all files,
correspondence and/or other communications received, maintained and/or
originated by the Executive during the course of his employment.

                      (c). NO INTERFERENCE. During the Restricted Period, the
Executive shall not, whether for his own account or for the account of any other
individual, partnership, firm, corporation or other business organization (other
than the Company), directly or indirectly solicit, endeavor to entice away from
the Company or its subsidiaries, or otherwise directly interfere with the
relationship of the Company or its subsidiaries with any person who, to the
knowledge of the Executive, is employed by or otherwise engaged to perform
services for the Company or its subsidiaries (including, but not limited to, any
independent sales representatives or organizations) or who is, or was within the
then most recent twelve-month period, a customer or client, of the Company, its
predecessors or any of its subsidiaries. The placement of any general classified
or "help wanted" advertisements and/or general solicitations to the public at
large shall not constitute a violation of this Section 7(c) unless the
Executive's name is contained in such advertisements or solicitations.

                      (d). INVENTIONS, ETC. The Executive hereby sells,
transfers and assigns to the Company or to any person or entity designated by
the Company all of the entire right, title and

                                      -10-
<PAGE>

interest of the Executive in and to all inventions, ideas, disclosures and
improvements, whether patented or unpatented, and copyrightable material, made
or conceived by the Executive, solely or jointly, during his employment by the
Company which relate to methods, apparatus, designs, products, processes or
devices, sold, leased, used or under consideration or development by the
Company, or which otherwise relate to or pertain to the business, functions or
operations of the Company or which arise from the efforts of the Executive
during the course of his employment for the Company. The Executive shall
communicate promptly and disclose to the Company, in such form as the Company
requests, all information, details and data pertaining to the aforementioned
inventions, ideas, disclosures and improvements; and the Executive shall execute
and deliver to the Company such formal transfers and assignments and such other
papers and documents as may be necessary or required of the Executive to permit
the Company or any person or entity designated by the Company to file and
prosecute the patent applications and, as to copyrightable material, to obtain
copyright thereof. Any invention relating to the business of the Company and
disclosed by the Executive within one year following the termination of his
employment with the Company shall be deemed to fall within the provisions of
this paragraph unless proved to have been first conceived and made following
such termination.

                      (e). NON-COMPETE PAYMENT. In consideration for the
covenants made by Executive in this Section 7, the Company shall pay to
Executive during the Post Termination Period an annual amount equal to 50% of
Executive's Salary in effect as of the date immediately prior to Executive's
termination of employment with the Company (the "Non-Compete Payment"). The
Non-Compete Payment shall be payable in installments over the course of the Post
Termination Period in accordance with the normal payroll practices of the
Company as in effect from time to time; provided, however, that in the event
that Executive resigns for Good Reason or is terminated without Just Cause and
receives severance payments pursuant to Section 6(f)(i) herein, the Non-Compete
Payment, during the first 12 months of the Post Termination Period, shall be
fully offset by such severance payments and the Company's only obligation under
this Section 7(e) shall be to pay the Non-Compete Payment to Executive during
the second 12 months of the Post Termination Period.

                  Section 8. INJUNCTIVE RELIEF. Without intending to limit the
remedies available to the Company, the Executive acknowledges that a breach of
any of the covenants contained in Section 7 hereof may result in material
irreparable injury to the

                                      -11-
<PAGE>

Company or its subsidiaries or affiliates 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 or threat thereof, the Company
shall be entitled to obtain a temporary restraining order and/or a preliminary
or permanent injunction, without the necessity of proving irreparable harm or
injury as a result of such breach or threatened breach of Section 7 hereof,
restraining the Executive from engaging in activities prohibited by Section 7
hereof or such other relief as may be required specifically to enforce any of
the covenants in Section 7 hereof.

                      Section 9. SUCCESSORS AND ASSIGNS; NO THIRD-PARTY
BENEFICIARIES. This Agreement shall inure to the benefit of, and be binding
upon, the successors and assigns of each of the parties, including, but not
limited to, the Executive's heirs and the personal representatives of the
Executive's estate; PROVIDED,

                                      -12-
<PAGE>

HOWEVER, that neither party shall assign or delegate any of the obligations
created under this Agreement without the prior written consent of the other
party. Notwithstanding the foregoing, the Company shall have the unrestricted
right to assign this Agreement and to delegate all or any part of its
obligations hereunder to any of its subsidiaries or affiliates, but in such
event such assignee shall expressly assume all obligations of the Company
hereunder and the Company shall remain fully liable for the performance of all
of such obligations in the manner prescribed in this Agreement. Nothing in this
Agreement shall confer upon any person or entity not a party to this Agreement,
or the legal representatives of such person or entity, any rights or remedies of
any nature or kind whatsoever under or by reason of this Agreement.

                  Section 10. WAIVER AND AMENDMENTS. Any waiver, alteration,
amendment or modification of any of the terms of this Agreement shall be valid
only if made in writing and signed by the parties hereto; PROVIDED, HOWEVER,
that any such waiver, alteration, amendment or modification is consented to on
the Company's behalf by the Board of Directress. No waiver by either of the
parties hereto of their rights hereunder shall be deemed to constitute a waiver
with respect to any subsequent occurrences or transactions hereunder unless such
waiver specifically states that it is to be construed as a continuing waiver.

                  Section 11. SEVERABILITY AND GOVERNING LAW. The Executive
acknowledges and agrees that the covenants set forth in Section 7 hereof are
reasonable and valid in geographical and temporal scope and in all other
respects. If any of such covenants or such other provisions of this Agreement
are found to be invalid or unenforceable by a final determination of a court of
competent jurisdiction (a) the remaining terms and provisions hereof shall be
unimpaired and (b) the invalid or unenforceable term or provision shall be
deemed replaced by a term or provision that is valid and enforceable and that
comes closest to expressing the intention of the invalid or unenforceable term
or provision. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE
WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO CONTRACTS MADE AND TO BE
PERFORMED ENTIRELY WITHIN SUCH STATE.

                  Section 12.  NOTICES.

                  (i) All communications under this Agreement shall be in
writing and shall be delivered by hand or mailed by overnight courier or by
registered or certified mail, postage prepaid:

                                      -13-
<PAGE>

                           (1) if to the Executive such address as the Executive
may have furnished the Company in writing,

                           (2) if to the Company, at c/o Warburg, Pincus
Ventures, L.P., 466 Lexington Avenue, New York, New York 10017, marked for the
attention of the Board of Directors, or at such other address as it may have
furnished in writing to the Executive, or

                  (ii) Any notice so addressed shall be deemed to be given: if
delivered by hand, on the date of such delivery; if mailed by courier, on the
first business day following the date of such mailing; and if mailed by
registered or certified mail, on the third business day after the date of such
mailing.

                Section 13. SECTION HEADINGS. The headings of the sections and
subsections of this Agreement are inserted for convenience only and shall not be
deemed to constitute a part thereof, affect the meaning or interpretation of
this Agreement or of any term or provision hereof.

                  Section 14. ENTIRE AGREEMENT. This Agreement constitutes the
entire understanding and agreement of the parties hereto regarding the
employment of the Executive. This Agreement supersedes the Original Agreement
and all prior negotiations, discussions, correspondence, communications,
understandings and agreements between the parties relating to the subject matter
of this Agreement.

                  Section 15. COUNTERPARTS. This Agreement may be executed in
one or more counterparts, each of which shall be deemed an original and all of
which together shall be considered one and the same agreement.

                                      -14-
<PAGE>

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

                                           INFORMATION HOLDINGS INC.

                                           By: /S/ LISA RUNDLE
                                              ----------------
                                           INFORMATION VENTURES LLC
                                           BY WARBURG, PINCUS INFORMATION
                                              VENTURES, INC.
                                           MEMBER

                                           By:  /S/ DAVID E. LIBOWITZ
                                                ---------------------
                                               Name: David E. Libowitz
                                               Title: Managing Director

                                           By:  /S/ MASON SLAINE
                                                   -------------
                                                MASON SLAINE

                                      -15-

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