Document:

EXHIBIT 10.4

                               CONSULTING CONTRACT
                               -------------------

THIS AGREEMENT is made as of the 1st day of December, 1999.

BETWEEN:

                           595871 BC LTD.
                           --------------

                           (the "Consultant")

                                                               OF THE FIRST PART

AND:

                           ROBERT GAMON
                           ------------

                           (the "Principal")

                                                              OF THE SECOND PART

AND:

                           VIAVID BROADCASTING, INC.,
                           --------------------------
                           a Nevada corporation

                                                               OF THE THIRD PART

WHEREAS:

     A.   The Company wishes to contract for the services of the Consultant.

     B.   The Principal is an employee of the Consultant.

     C.   The  Consultant  has agreed to accept such  contract for services upon
          the terms and conditions of this Agreement.

NOW THEREFORE  THIS  AGREEMENT  WITNESSES  THAT in  consideration  of the mutual
covenants herein contained, the parties hereto agree as follows:

1.   ENGAGEMENT

1.1  APPOINTMENT.  The  Company  hereby  contracts  for  the  services  of   the
Consultant and the Consultant hereby agrees with the Company to perform services
for the Company in accordance  with the terms and conditions of this  Agreement.
The  Consultant  agrees to provide the services of the  Principal to provide the
services as contemplated  in this Agreement and the Principal  agrees to perform
such services as an employee of the Consultant. The Consultant shall not use the
services  of any  party  other  than  the  Principal,  whether  as  employee  or
contractor,  to provide such services  without the prior written  consent of the
Company, which approval will not be unreasonably withheld.

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1.2  SCOPE OF  DUTIES.  The  Consultant  will  cause the  Principal  to act as a
director of the Company and will have the following  responsibilities and duties
to the  Company to be  provided  as the  consultant  services  (the  "Consultant
Services"):

          1.   supervising the financing activities of the Company;

          2.   advising the Company on its capital  structure  and the structure
               of future financings;

          3.   performing  such other duties and observing such  instructions as
               may be reasonably  assigned to him from time to time by the Board
               of Directors; and

          4.   generally at all times abiding by all lawful  directions given to
               him by the Board of Directors of the Company.

1.3  BEST  EFFORTS.  The Consultant  shall at all times use its best  efforts to
advance the interests of the Company, and shall faithfully,  industriously,  and
to the best of its abilities,  perform the responsibilities and duties described
above.

1.4  COVENANTS AND  RESTRICTIONS.  The Consultant  covenants and agrees with the
Company that the Consultant will not engage in any activities  which would bring
the Company's reputation into disrepute.

1.5  WARRANTIES AND REPRESENTATIONS.  The  Consultant  and the Principal warrant
and  represent  to the Company as follows and  acknowledges  that the Company is
relying  upon  these  warranties  and  representations  in  entering  into  this
Agreement:

          (a)  the Consultant and the Principal have the necessary  expertise to
               effectively provide the Consultant Services;

          (b)  the  Consultant  and the  Principal  are not aware of any  matter
               which would  prevent the  Consultant  and/or the  Principal  from
               carrying  out  their  duties  and  obligations  pursuant  to this
               Agreement.

          (c)  neither the Consultant nor the Principal is subject to any review
               by any securities regulatory body.

1.6  INDEPENDENT CONTRACTS.  The Consultant and the Principal shall at all times
be  independent  contractors  and  shall  not at any time be or be  deemed to be
employees of the Company. The Consultant and the Principal acknowledge that they
are not employees of the Company and that the execution of this Agreement  shall
not give rise to any employment with the Company.

2.   TERM

2.1  INITIAL TERM.  The  initial term  of this Agreement  shall be one (1) year,
commencing on the date first above  written,  subject to earlier  termination as
hereinafter provided.

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<PAGE>

2.2  RENEWAL. This Agreement shall be renewed for further terms of such duration
and upon  such  terms and  conditions  as the  Consultant  and the  Company  may
mutually agree upon in writing.

3.   PAYMENT FOR THE CONSULTANT SERVICES

3.1  The Company shall pay to the  Consultant a consultant  fee in consideration
for the  Consultant  Services  equal to the sum of $7,500  CDN.  per month  (the
"Consultant Fee").

3.2  Federal Goods and Services Tax on the Consultant Fee  shall  be payable  by
the Company in addition to the Consultant Fee.

3.3  The Consultant  may be granted,  subject to the  approval of the  Company's
shareholders  and  compliance  with  all  securities   regulatory   legislation,
incentive stock options to purchase shares in the Company in such amounts and at
such  times  as the  Board  of  Directors  of the  Company,  in  their  absolute
discretion, may from time to time determine.

3.4  The Consultant Fee shall be payable by the Company to the Consultant on the
last business day of each month during the term of this Agreement.

3.5  The parties agree that the  Consultant  Fee provided  for in paragraph  3.1
hereof is intended to include  reimbursements  for all expenses  incurred by the
Consultant in connection with its duties  hereunder save and except for expenses
directly  related to the performance of the  Consultant's  duties as director of
the Company and the Consultant  shall bear the cost of its own expenses,  except
for any reasonable  travel and promotional  expenses and other specific expenses
incurred by the Consultant with the prior written approval of the Company.

4.   CONFIDENTIALITY

4.   CONFIDENTIAL INFORMATION AND NON-DISCLOSURE.   The   Consultant   and   the
Principal  acknowledge and agree with each other that all information  connected
with the  Company's  technology,  including  without  limitation,  all  computer
software,   trade   secrets,   information,   data,   inventions,   discoveries,
improvements,  modifications,  developments,  technical manuals, or process-flow
manuals, data, customer information and pricing information is confidential, and
the Consultant  and the Principal each jointly and severally  covenant and agree
with the Company to use its best  efforts to ensure that such  information  does
not become public  knowledge and undertakes not to disclose such  information or
any part thereof to any other person except to its  consultants and employees as
may be necessary to carry out its rights and  obligations  under this Agreement.
The  Consultant  hereby  further  covenants and agrees with the Company that the
Consultant  shall require each and every one of its employees or consultants who
are provided  with any  information  in respect of the  Company's  technology or
related  knowledge to sign  confidentiality  agreements which shall be in a form
acceptable to the Company. All such information shall be returned to the Company
upon termination of this Agreement.

4.2  NON-COMPETITION.  Each of the Consultant and the Principal shall not during
the term of this  Agreement  and during  the period  which is one year after the
date

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<PAGE>

of the termination of this Agreement,  either alone or in partnership or jointly
or in conjunction with any person or persons,  including without limitation, any
individual, firm, association, syndicate, company, corporation or other business
enterprise, as principal, agent, shareholder, or in any other manner whatsoever,
carry on or be engaged in or concerned  with or  interested  in or advise,  lend
money to, guarantee the debts or obligations of or permit their names to be used
or  employed  by any  person  or  persons,  including  without  limitation,  any
individual, firm, association, syndicate, company, corporation or other business
enterprise,  engaged in or  concerned  with or  interested  in an  operation  or
undertaking  which is in any way  competitive  with the  business of the Company
without  having  obtained  the  express  written  consent  of the  Company.  The
Consultant and the Principal acknowledge and agree the geographical restrictions
contained  herein  are  reasonable  in  light  of the  nature  of the  Company's
technology and business. The Consultant and the Principal further agree to not:

          (a)  carry on, be engaged in or concerned  with or  interested  in any
               business,   operation  or   undertaking   which  is  in  any  way
               competitive  with the business of the Company  anywhere in Canada
               and in the United  States  where the  business  of the Company is
               carried on; and

          (b)  attempt to solicit any  suppliers,  customers or employees of the
               business of the Company away from the Company.

4.3  Any and all inventions  and  improvements  on which the  Consultant  or the
Principal may conceive or make, during the term of this Agreement,  relating, or
in any way,  pertaining to or connected with any of the matters which have been,
are or may become the subject of the company's  investigations,  or in which the
Company has been, is, or may become interested,  shall be the sole and exclusive
property of the Company,  and the  Consultant  will,  whenever  requested by the
Company,  execute any and all  applications,  assignments and other  instruments
which the company shall deem  necessary in order to apply for an obtain  letters
of patent for U.S. or foreign  countries for the inventions or improvements  and
in order to assign and convey to the Company the sole and exclusive right, title
and  interest  in  and  to the  inventions  or  improvements,  all  expenses  in
connection with them to be borne by the Company. The Consultant's obligations to
execute  the papers  referred to in this  paragraph  shall  continue  beyond the
termination  of  this  Agreement  with  respect  to any and  all  inventions  or
improvements conceived or made by him during the term of this Agreement, and the
obligations shall be binding on the assigns, executors,  administrators or other
legal representatives of the Consultant. All inventions and discoveries relating
to the  business of the  Company and all  knowledge  and  information  which the
Consultant may acquire during his engagement  shall be held by the Consultant in
trust for the benefit of the Company.

5.   TERMINATION

5.1  TERMINATION  BY THE COMPANY  FOR CAUSE.  The  Company  may  terminate  this
Agreement at any time for just cause,  provided that a reasonable written notice
of three business days has been first given by the Company to the Consultant. In
this  Agreement,  in addition to any cause  permitted by law,  "just cause" with
respect to termination by the Company includes:

          (a)  the Consultant's or the Principal's material default, misconduct,
               breach or non-observance of any provision of this Agreement;

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<PAGE>

          (b)  the  inability of the  Consultant  to provide the services of the
               Principal to perform the Consultant Services;

          (c)  the attempted assignment of this Agreement by the Consultant,  in
               breach  of this  Agreement,  or the sale of any  interest  in the
               Consultant  by  the  Principal  or any  change  in  directors  of
               officers of the Consultant;

          (d)  the  dissolution,  insolvency or the bankruptcy of the Consultant
               or the Principal.

5.2  TERMINATION BY THE  CONSULTANT. The Consultant may terminate this Agreement
for just cause at any time without notice to the Company,  or without just cause
by providing 90 days' notice in writing to the Company.  In this  Agreement,  in
addition to any cause permitted by law, "just cause" with respect to termination
by the Consultant includes:

          (a)  the   Company's   material   default,   misconduct,   breach   or
               non-observance of any provision of this Agreement;

          (b)  the dissolution, insolvency or bankruptcy of the Company.

5.3  TERMINATION BY THE COMPANY  WITHOUT  CAUSE.  The Company may terminate this
Agreement at any time without cause,  in which event the Company will pay to the
Consultant and the  Principal,  an amount equal to four months of the Consultant
Fee, plus any Consultant Fee and expenses payable to the date of Termination.

5.4  SURVIVAL  OF  OBLIGATIONS.  The  obligations  of  the  Consultant  and  the
Principal set forth in sections 4.1, 4.2 and 4.3 of this  Agreement will survive
termination of this Agreement for any reason.

6.   OTHER PROVISIONS

6.1  GOVERNING  LAW.  This  Agreement  shall  be  governed  by and  construed in
accordance with the laws of the Province of British Columbia.

6.2  NOTICE.  Any notice  required or permitted to be given under this Agreement
shall be in writing and may be delivered  personally or by telex or  telecopier,
or by prepaid  registered  post addressed to the parties at the  above-mentioned
addresses  or at such other  address  of which  notice may be given by either of
such parties.  Any notice shall be deemed to have been  received,  if personally
delivered or by telex or  telecopier,  on the date of delivery and, if mailed as
aforesaid,  then on the  seventh  business  day after and  excluding  the day of
mailing.

6.3  PERSONAL  NATURE.  This Agreement is a contract for services and may not be
assigned in whole or in part by the Consultant or the Principal.

6.4  WHOLE AGREEMENT.  This Agreement supersedes the agreement between 549419 BC
Ltd.,  the  Principal  and the Company  dated  November 1, 1999 and any previous
agreement,  arrangement or  understanding,  whether  written or oral between the

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<PAGE>

parties hereto and constitutes the entire agreement  between the parties and may
only be amended in writing.

6.5  SEVERABILITY.  In  the  event that  any provision of this Agreement that is
held to be unlawful or  unenforceable,  such provision will be severable and the
remaining terms and conditions of this Agreement remain in force and effect.

6.6  TIME OF ESSENCE. Time is of the essence of this Agreement.

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

SIGNED, SEALED AND DELIVERED
BY ROBERT GAMON
In the presence of:

--------------------------------            -----------------------------
Signature                                   ROBERT GAMON

--------------------------------
Name

--------------------------------
Address

595871 BC LTD.
by its authorized signatory:

--------------------------------
Authorized Signatory

VIAVID BROADCASTING, INC.
By its authorized signatory:

---------------------------------
Brian Kathler
President & Director

                                       6Adopted   3/23/93
Amended   11/11/93
Amended   12/22/93
Amended   1/14/94
Amended   2/16/94
Amended   3/6/96
Amended   7/24/97
Amended   11/16/99
Amended   6/1/00

                            QUAD SYSTEMS CORPORATION

                             1993 STOCK OPTION PLAN

             PURPOSE. Quad Systems Corporation (the "Company") hereby adopts the
Quad Systems Corporation 1993 Stock Option Plan (the "Plan"). The Plan is
intended to recognize the contributions made to the Company by employees
(including employees who are members of the Board of Directors) of the Company
or any Affiliate (as defined below) and certain consultants or advisors to the
Company or an Affiliate, to provide such persons with additional incentive to
devote themselves to the future success of the Company or an Affiliate, and to
improve the ability of the Company or an Affiliate to attract, retain, and
motivate individuals upon whom the Company's sustained growth and financial
success depend, by providing such persons with an opportunity to acquire or
increase their proprietary interest in the Company through receipt of rights to
acquire the Company's Common Stock, par value $.03 per Share (the "Common
Stock"). In addition, the Plan is intended as an additional incentive to certain
directors of the Company who are not employees of the Company or an Affiliate to
serve on the Board of Directors and to devote themselves to the future success
of the Company by providing them with an opportunity to acquire or increase
their proprietary interest in the Company through the receipt of Options to
acquire Common Stock.

             DEFINITIONS.  Unless the context clearly indicates
otherwise, the following terms shall have the following meanings:

               (a) "Affiliate" means a corporation which is a parent corporation
or a subsidiary corporation with respect to the Company within the meaning of
Section 424(e) or (f) of the Code.

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

               (c)  "Change in Control" shall have the meaning
as set forth in Section 10 of the Plan.

               (d)  "Code" means the Internal Revenue Code of
1986, as amended.

               (e)  "Committee" shall have the meaning set forth
in Section 3 of the Plan.

               (f)  "Company" means Quad Systems Corporation, a
Delaware corporation.

               (g)  "Disability" shall have the meaning set
forth in Section 22(e)(3) of the Code.

               (h) "Fair Market Value" shall have the meaning set forth in
Subsection 8(b) of the Plan, provided, however, that for purposes of Subsection
9(b) of the Plan, Fair Market Value of a Voluntary Option shall refer to the
value determined pursuant to a Black-Scholes or comparable valuation model
selected by the Committee.

               (h) "ISO" means an Option granted under the Plan which is
intended to qualify as an "incentive stock option" within the meaning of Section
422 of the Code.

               (i)  "Non-employee Director" means a member of
the Board of Directors who is not an employee of the Company or
an Affiliate.

               (j) "Non-qualified Stock Option" means an Option granted under
the Plan which is not intended to qualify, or otherwise does not qualify, as an
"incentive stock option" within the meaning of Section 422(b) of the Code.

               (k) "Option" means either an ISO or a Non-qualified Stock Option
granted under the Plan.

               (l) "Optionee" means a person to whom an Option has been granted
under the Plan, which Option has not been exercised and has not expired or
terminated.

               (m) "Option Document" means the document described in Section 8
or Section 9 of the Plan, as applicable, which sets forth the terms and
conditions of each grant of Options.

               (n) "Option Price" means the price at which Shares may be
purchased upon exercise of an Option, as calculated pursuant to Subsection 8(b),
Subsection 9(a) or Subsection 9(b) of the Plan, as applicable.

               (o) "Rule 16b-3" means Rule 16b-3 promulgated under the
Securities Exchange Act of 1934, as amended.

               (p)  "Shares" means the shares of Common Stock of
the Company which are the subject of Options.

             ADMINISTRATION OF THE PLAN. The Plan shall be administered by the
Board of Directors of the Company; however, the Board of Directors may (i)
designate a committee composed of two or more directors who are "Non-Employee
Directors" as defined in Rule 16b-3 to operate and administer the Plan in its
stead, (ii) designate two committees to operate and administer the Plan in its
stead, one of such committees composed of two or more directors who are
"Non-Employee Directors" as defined in Rule 16b-3 to operate and administer the
Plan with respect to the Company's "Principal Officers" (as defined below) and
directors, and the other such committee composed of two or more directors (which
may include directors who are also employees of the Company) to operate and
administer the Plan with respect to persons other than Principal Officers and
directors or (iii) designate only one of the two committees referred to in
subparagraph (ii) and itself operate and administer the Plan with respect to
persons not within the jurisdiction of such committee. Any of such committees
designated by the Board of Directors, and the Board of Directors itself in its
administrative capacity with respect to the Plan, is referred to as the
"Committee." As used herein, the term "Principal Officers" means the Chairman of
the Board of Directors (if the Chairman of the Board of Directors is a payroll
employee), President, Executive Vice President, Senior Vice President, Vice
President, Treasurer, and any other person who is an "officer" within the
meaning of Rule 16a-1(f) promulgated under the Securities Exchange Act of 1934,
as amended, or any successor rule.

               (a) MEETINGS. The Committee shall hold meetings at such times and
places as it may determine. Acts approved at a meeting by a majority of the
members of the Committee or acts approved in writing by the unanimous consent of
the members of the Committee shall be the valid acts of the Committee.

               (b) GRANTS. Except with respect to Options granted to
Non-employee Directors pursuant to Section 9 of the Plan, the Committee shall
from time to time at its discretion direct the Company to grant Options pursuant
to the terms of the Plan. The Committee shall have plenary authority to (i)
determine the individuals to whom, the times at which, and the price at which
Options shall be granted, (ii) determine the type of Option to be granted and
the number of Shares subject thereto, and (iii) approve the form and terms and
conditions of the Option Documents; all subject, however, to the express
provisions of the Plan. In making such determinations, the Committee may take
into account the nature of the Optionee's services and responsibilities, the
Optionee's present and potential contribution to the Company's success and such
other factors as it may deem relevant. The interpretation and construction by
the Committee of any provisions of the Plan or of any Option granted under it
shall be final, binding and conclusive.

               (c) EXCULPATION. No member of the Board of Directors shall be
personally liable for monetary damages for any action taken or any failure to
take any action in connection with the administration of the Plan or the
granting of Options under the Plan, provided that this Subsection 3(c) shall not
apply to (i) any breach of such member's duty of loyalty to the Company or its
stockholders, (ii) acts or omissions not in good faith or involving intentional
misconduct or a knowing violation of law, (iii) acts or omissions that would
result in liability under Section 174 of the General Corporation Law of the
State of Delaware, as amended, and (iv) any transaction from which the member
derived an improper personal benefit.

               (d) INDEMNIFICATION. Service on the Committee shall constitute
service as a member of the Board of Directors of the Company. Each member of the
Committee shall be entitled without further act on his or her part to indemnity
from the Company to the fullest extent provided by applicable law and the
Company's Certificate of Incorporation and/or By-laws in connection with or
arising out of any action, suit or proceeding with respect to the administration
of the Plan or the granting of Options thereunder in which he or she may be
involved by reason of his or her being or having been a member of the Committee,
whether or not he or she continues to be such member of the Committee at the
time of the action, suit or proceeding.

               (e) LIMITATIONS ON GRANTS OF OPTIONS TO CONSULTANTS AND ADVISORS.
With respect to the grant of Options to consultants or advisors, bona fide
services shall be rendered by consultants or advisors and such services must not
be in connection with the offer or sale of securities in a capital-raising
transaction.

             GRANTS UNDER THE PLAN. Grants under the Plan may be in the form of
a Non-qualified Stock Option, an ISO or a combination thereof, at the discretion
of the Committee.

             ELIGIBILITY. All employees of the Company or an Affiliate
(including employees who are members of the Board of Directors), consultants or
advisors to the Company or an Affiliate who satisfy the requirements set forth
in Subsection 3(e), and all Non-employee Directors shall be eligible to receive
Options hereunder. The Committee, in its sole discretion, shall determine
whether an individual is eligible to receive Options under the Plan.

             SHARES SUBJECT TO PLAN. The aggregate maximum number of Shares for
which Options may be granted pursuant to the Plan is nine hundred thousand
(900,000), subject to adjustment as provided in Section 11 of the Plan. The
Shares shall be issued from authorized and unissued Common Stock or Common Stock
held in or hereafter acquired for the treasury of the Company. If an Option
terminates or expires without having been fully exercised for any reason, the
Shares for which the Option was not exercised may again be the subject of one or
more Options granted pursuant to the Plan.

             TERM OF THE PLAN. The Plan is effective as of March 23, 1993, the
date on which it was adopted by the Board of Directors, subject to the approval
of the Plan on or before March 22, 1994 by a majority of the votes cast at a
duly called meeting of the stockholders at which a quorum representing a
majority of all outstanding voting stock of the Company is, either in person or
by proxy, present and voting. If the Plan is not so approved on or before March
22, 1994, all Options granted under the Plan shall be null and void. No Option
may be granted under the Plan after March 22, 2003.

          If the Reverse Split (as defined in Section 11) is not approved by
stockholders of the Company at the Annual Meeting of Stockholders on April 2,
1993 or any adjournment or postponement thereof, the Plan shall be terminated,
and any Options granted under the Plan shall be null and void.

             OPTION DOCUMENTS AND TERMS. Each Option granted under the Plan
shall be a Non-qualified Stock Option unless the Option shall be specifically
designated at the time of grant to be an ISO for Federal income tax purposes. If
any Option designated as an ISO is determined for any reason not to qualify as
an incentive stock option within the meaning of Section 422 of the Code, such
Option shall be treated as a Non-qualified Stock Option for all purposes under
the provisions of the Plan. Options granted pursuant to the Plan shall be
evidenced by the Option Documents in such form as the Committee shall from time
to time approve, which Option Documents shall comply with and be subject to the
following terms and conditions and such other terms and conditions as the
Committee shall from time to time require which are not inconsistent with the
terms of the Plan. However, the following provisions of this Section 8 shall not
be applicable to Options granted pursuant to Section 9, except as otherwise
provided in Subsection 9(c).

               (a) NUMBER OF OPTION SHARES. Each Option Document shall state the
number of Shares to which it pertains. An Optionee may receive more than one
Option, which may include Options which are intended to be ISO's and Options
which are not intended to be ISO's, but only on the terms and subject to the
conditions and restrictions of the Plan. Effective February 17, 1993, the
maximum number of Shares for which Options may be granted to any eligible
individual during any fiscal year of the Company is thirty thousand (30,000)
Shares.

               (b) OPTION PRICE. Each Option Document shall state the Option
Price, which shall be at least 100% of the Fair Market Value of the Shares on
the date the Option is granted; provided, however, that if an ISO is granted to
an Optionee who then owns, directly or by attribution under Section 424(d) of
the Code, shares possessing more than ten percent of the total combined voting
power of all classes of stock of the Company or an Affiliate, then the Option
Price shall be at least 110% of the Fair Market Value of the Shares on the date
the Option is granted. If the Common Stock is traded in a public market, then
the Fair Market Value per share shall be, if the Common Stock is listed on a
national securities exchange or included in the NASDAQ National Market System,
the last reported sale price thereof on the relevant date, or, if the Common
Stock is not so listed or included, the mean between the last reported "bid" and
"asked" prices thereof on the relevant date, as reported on NASDAQ or, if not so
reported, as reported by the National Daily Quotation Bureau, Inc. or as
reported in a customary financial reporting service, as applicable and as the
Committee determines.

               (c) EXERCISE. No Option shall be deemed to have been exercised
prior to the receipt by the Company of written notice of such exercise and
payment in full of the Option Price for the Shares to be purchased. Each such
notice shall specify the number of Shares to be purchased and shall (unless the
Shares are covered by a then current registration statement or a Notification
under Regulation A under the Securities Act of 1933, as amended (the "Act")),
contain the Optionee's acknowledgment in form and substance satisfactory to the
Company that (a) such Shares are being purchased for investment and not for
distribution or resale (other than a distribution or resale which, in the
opinion of counsel satisfactory to the Company, may be made without violating
the registration provisions of the Act), (b) the Optionee has been advised and
understands that (i) the Shares have not been registered under the Act and are
"restricted securities" within the meaning of Rule 144 under the Act and are
subject to restrictions on transfer and (ii) the Company is under no obligation
to register the Shares under the Act or to take any action which would make
available to the Optionee any exemption from such registration, (c) such Shares
may not be transferred without compliance with all applicable federal and state
securities laws, and (d) an appropriate legend referring to the foregoing
restrictions on transfer and any other restrictions imposed under the Option
Documents may be endorsed on the certificates. Notwithstanding the foregoing, if
the Company determines that issuance of Shares should be delayed pending (A)
registration under federal or state securities laws, (B) the receipt of an
opinion of counsel acceptable to the Company that an appropriate exemption from
such registration is available, (C) the listing or inclusion of the Shares on
any securities exchange or an automated quotation system or (D) the consent or
approval of any governmental regulatory body whose consent or approval is
necessary in connection with the issuance of such Shares, the Company may defer
exercise of any Option granted hereunder until any of the events described in
this Subsection 8(c) has occurred.

               (d) MEDIUM OF PAYMENT. An Optionee shall pay for Shares (i) in
cash, (ii) by certified or cashier's check payable to the order of the Company,
or (iii) by such other mode of payment as the Committee may approve, including
payment through a broker in accordance with procedures permitted by Regulation T
of the Federal Reserve Board. Without limiting the foregoing, the Committee may
provide (and in the case of Options granted to Non-employee Directors, shall
provide) in an Option Document that payment may be made in whole or in part in
shares of the Company's Common Stock. If payment is made in whole or in part in
shares of the Company's Common Stock, then the Optionee shall deliver to the
Company certificates registered in the name of such Optionee representing the
shares owned by such Optionee, free of all liens, claims and encumbrances of
every kind and having an aggregate Fair Market Value on the date of delivery
that is at least as great as the Option Price of the Shares (or relevant portion
thereof) with respect to which such Option is to be exercised by the payment in
shares of Common Stock, accompanied by stock powers duly endorsed in blank by
the Optionee. In the event that certificates for shares of the Company's Common
Stock delivered to the Company represent a number of shares in excess of the
number of shares required to make payment for the Option Price of the Shares (or
relevant portion thereof) with respect to which such Option is to he exercised
by payment in shares of Common Stock, the stock certificate issued to the
Optionee shall represent (i) the Shares in respect of which payment is made, and
(ii) such excess number of shares. Notwithstanding the foregoing, the Committee
may impose from time to time such limitations and prohibitions on the use of
shares of the Common Stock to exercise an option as it deems appropriate.

               (e)  TERMINATION OF OPTIONS.

                    (i)  No Option shall be exercisable after
the first to occur of the following:

                         (A)  Expiration of the Option term
specified in the Option Document, which, in the case of an ISO, shall not occur
after (1) ten years from the date of grant, or (2) five years from the date of
grant of an ISO if the Optionee on the date of grant owns, directly or by
attribution under Section 424(d) of the Code, shares possessing more than ten
percent (10%) of the total combined voting power of all classes of stock of the
Company or of an Affiliate;

                         (B)  Expiration of three months from
the date the Optionee's employment or service with the Company or its Affiliates
terminates for any reason other than Disability or death or as otherwise
specified in Subsection 8(e)(i)(D) or 8(e)(i)(E) below;

                         (C)  Expiration of one year from the
date such employment or service with the Company or its
Affiliates terminates due to the Optionee's Disability or death;

                         (D)  A finding by the Committee, after
full consideration of the facts presented on behalf of both the Company and the
Optionee, that the Optionee has breached his or her employment or service
contract with the Company or an Affiliate, or has been engaged in disloyalty to
the Company or an Affiliate, including, without limitation, fraud, embezzlement,
theft, commission of a felony or proven dishonesty in the course of his
employment or service, or has disclosed trade secrets or confidential
information of the Company or an Affiliate. In such event, in addition to
immediate termination of the Option, the Optionee shall automatically forfeit
all Shares for which the Company has not yet delivered the share certificates
upon refund by the Company of the Option Price. Notwithstanding anything herein
to the contrary, the Company may withhold delivery of share certificates pending
the resolution of any inquiry that could lead to a finding resulting in a
forfeiture; or

                         (E)  The date, if any, set by the Board
of Directors as an accelerated expiration date pursuant to
Section 10 of the Plan.

                         With respect to Subsections 8(e)(i)(B)
and (C) above, the only Options which may be exercised during the three-month or
one-year period, as the case may be, following the date of Optionee's
termination of employment or service with the Company or its Affiliates are
Options which were exercisable on the last date of such employment or service
and not Options which, if the Optionee were still employed or rendering service
during such three-month or one-year period, would become exercisable, unless the
Option Document specifically provides to the contrary.

                    (ii) Notwithstanding the foregoing, the Committee may extend
the period during which all or any portion of an Option may be exercised to a
date no later than the Option term specified in the Option Document pursuant to
Subsection 8(e)(i)(A), provided that any change pursuant to this Subsection
8(e)(ii) which would cause an ISO to become a Non-qualified Stock Option may be
made only with the consent of the Optionee. The terms of an executive severance
agreement or other agreement between the Company and an Optionee, approved by
the Committee, whether entered into prior or subsequent to the grant of an
Option, which provide for Option exercise dates later than those set forth in
Subsection 8(e)(i) but permitted by this Subsection 8(e)(ii) shall be deemed to
be Option terms approved by the Committee and consented to by the Optionee.

               (f) TRANSFERS. No Option granted under the Plan may be
transferred, except by will or by the laws of descent and distribution. During
the lifetime of the person to whom an Option is granted, such Option may be
exercised only by such person. Notwithstanding the foregoing, a Non-qualified
Stock Option may be transferred pursuant to the terms of a "qualified domestic
relations order," within the meaning of Sections 401(a)(13) and 414(p) of the
Code or within the meaning of Title I of the Employee Retirement Income Security
Act of 1974, as amended.

               (g) LIMITATION ON ISO GRANTS. In no event shall the aggregate
Fair Market Value of the Shares of Common Stock (determined at the time the ISO
is granted) with respect to which incentive stock options under all stock option
plans of the Company or its Affiliates are exercisable for the first time by the
Optionee during any calendar year exceed $100,000.

               (h) OTHER PROVISIONS. Subject to the provisions of the Plan, the
Option Documents shall contain such other provisions including, without
limitation, additional restrictions upon the exercise of the Option or
additional limitations upon the term of the Option, as the Committee shall deem
advisable.
               (i) AMENDMENT. Subject to the provisions of the Plan, the
Committee shall have the right to amend Option Documents issued to an Optionee,
subject to the Optionee's consent if such amendment is not favorable to the
Optionee, except that the consent of the Optionee shall not be required for any
amendment made under Subsection 8(e)(i)(E) or Section 10 of the Plan, as
applicable.

             SPECIAL PROVISIONS RELATING TO GRANTS OF OPTIONS TO NON-EMPLOYEE
DIRECTORS. In addition to being eligible to receive Options pursuant to Section
8, Non-employee Directors shall be granted Options, without any further action
by the Committee ("Automatic Options"), and shall be granted Options pursuant to
their voluntary elections made in accordance with Section 9(b) ("Voluntary
Options"), both subject to the terms and conditions set forth in this Section 9.
Options granted pursuant to this Section 9 shall be evidenced by Option
Documents in such form as the Committee shall from time to time approve, which
Option Documents shall comply with and be subject to the following terms and
conditions and such other terms and conditions as the Committee shall from time
to time require which are not inconsistent with the terms of the Plan.

               (a) TIMING OF INITIAL AND LATER GRANTS OF AUTOMATIC OPTIONS;
NUMBER OF SHARES SUBJECT TO AUTOMATIC OPTIONS; EXERCISABILITY OF AUTOMATIC
OPTIONS; OPTION PRICE. Each Non-employee Director on the effective date of the
Plan shall be granted, on May 19, 1993 (the date of the first closing of the
initial public offering of the Common Stock)(the "IPO Closing Date"), an Option
to purchase three thousand (3,000) Shares. Each Non-employee Director first
elected to the Board of Directors after the IPO Closing Date but on or before
July 24, 1997 (the "Increase Date") shall be granted an Option to purchase three
thousand (3,000) Shares on the date he or she becomes a director. Each
Non-employee Director first elected to the Board of Directors after the Increase
Date shall be granted an Option to purchase six thousand (6,000) Shares on the
date he or she becomes a director. (Any grant of Options to Non-employee
Directors pursuant to the preceding three sentences is hereinafter referred to
as the "Initial Grant"). Each Non-employee Director on the Increase Date shall
be granted an Option to purchase an additional three thousand (3,000) Shares (an
"Equalization Grant"). Subject to Section 10, each Option granted in the Initial
Grant and in the Equalization Grant shall be a Non-qualified Stock Option
becoming exercisable over a period of three (3) years, so that the Optionee
shall have the right to exercise the Option with respect to one third (1/3) of
the Shares covered thereby commencing on the first anniversary of the date of
grant with respect to the Initial Grant, and in 1997 on the anniversary of the
Initial Grant with respect to the Equalization Grant, and the right to exercise
the Option with respect to an additional one third (1/3) of such Shares
commencing on each of the following two anniversaries of the applicable first
vesting date. Each Non-employee Director who did not receive an Equalization
Grant shall be granted, after receipt of such person's Initial Grant, an Option
to purchase an additional two thousand (2,000) Shares on each anniversary of the
Initial Grant. Each person serving as a Non-employee Director who received an
Equalization Grant, shall be granted, commencing in 1998, an Automatic Option to
purchase an additional two thousand (2,000) Shares on each anniversary of the
Initial Grant. (The grants of Automatic Options to Non-employee Directors
pursuant to the preceding two sentences are hereinafter referred to as
"Subsequent Annual Grants"). Subject to Section 10, each Automatic Option
granted in a Subsequent Annual Grant shall be a Non-qualified Stock Option
becoming exercisable with respect to all such Shares commencing on the third
anniversary of the date on which the Subsequent Annual Grant is made. The Option
Price of any Automatic Option granted under this Section 9(a) shall be equal to
the Fair Market Value of the Shares on the date the Option is granted; PROVIDED,
HOWEVER, that if such date as determined under this Section 9(a) would fall on a
Saturday, Sunday or any other day on which banks in the State of New York are
required or authorized to close (a "Non-Business Day"), the Option Price of any
such Option shall be equal to the Fair Market Value of the Shares on the first
date succeeding such Non-Business Day which is not a Non-Business Day.
Notwithstanding anything in this Plan to the contrary, all Automatic Options
outstanding on November 16, 1999 shall become fully vested and exercisable on
that date.

               (b) TIMING OF GRANTS OF VOLUNTARY OPTIONS; NUMBER OF SHARES
SUBJECT TO VOLUNTARY OPTIONS; EXERCISABILITY OF VOLUNTARY OPTIONS; OPTION PRICE.
Each Non-employee Director may elect to reduce all or part of the cash
compensation otherwise payable for services to be rendered by him or her as a
director (including the annual retainer fee and any fees payable for services on
the Board or any committee thereof) and to receive in lieu thereof Voluntary
Options. Any such election (i) shall be in writing, (ii) shall specify an amount
of such compensation to be received in the form of Voluntary Options (expressed
as a percentage of the compensation otherwise payable in cash, as an amount in
dollars of compensation otherwise payable in cash or as a type of fee, e.g.,
retainer fee, otherwise payable in cash), (iii) shall be made at least six
months prior to the end of the first calendar quarter with respect to which such
election is to apply and (iv) may not be revoked or changed thereafter, except
as to compensation for services rendered at least six months after any such
election to revoke or change is made in writing. Any such election shall
continue in effect until six months after an election to revoke or change such
election is made in writing. Subject to Section 10, each Voluntary Option shall
be a Non-qualified Stock Option that shall be immediately exercisable. Once a
Non-employee Director makes the election provided for in this Section 9(b) to
receive Voluntary Options in lieu of some or all of his or her cash
compensation, there shall be issued to such director promptly after the end of
each calendar quarter with respect to which such election applies a Voluntary
Option for the number of Shares equal to the amount of such forgone compensation
divided by the Fair Market Value of a Voluntary Option for one Share on the date
such Voluntary Option is granted, provided that a Voluntary Option shall only be
issued for whole Shares and not fractional Shares; and further provided that if
the date of grant, as determined under this Section 9(b), would fall on a
Non-Business Day, the number of Shares subject to the Voluntary Option shall be
determined by the Fair Market Value of such Voluntary Option on the first date
succeeding such Non-Business Day which is not a Non-Business Day. The Option
Price of any Voluntary Option granted under this Section 9(b) shall be equal to
the Fair Market Value of the Shares on the date the Voluntary Option is granted.

               (c)  TERMINATION OF OPTIONS GRANTED PURSUANT TO SECTION 9.

               All Automatic and Voluntary Options granted pursuant to this
Section 9 shall be exercisable until the first to occur of the following:

                    (i)       Expiration of ten (10) years from
the date of grant,

                    (ii)      Expiration of three months from
the date the Optionee's service as a member of the Board
terminates for any reason other than Disability or death; or

                    (iii)     Expiration of one year from the
date the Optionee's service as a member of the Board terminates
due to the Optionee's Disability or death.

               (d) APPLICABILITY OF PROVISIONS OF SECTION 8 TO OPTIONS GRANTED
PURSUANT TO SECTION 9. The following provisions of Section 8 shall be applicable
to the Automatic and Voluntary Options granted pursuant to this Section 9:
Subsection 8(a) (provided that all Automatic and Voluntary Options granted
pursuant to this Section 9 shall be Non-qualified Stock Options); the last
sentence of Subsection 8(b); Subsection 8(c); Subsection 8(d); subsection 8(f);
and Subsection 8(i).

          CHANGE IN CONTROL. In the event of a Change in Control, all
outstanding Options shall become immediately and fully exercisable. Moreover,
the Committee may take whatever other action it deems necessary or desirable
with respect to the outstanding Options, including, without limitation,
accelerating the expiration or termination date in the respective Option
Documents for Options to a date no earlier than thirty (30) days after notice of
such acceleration is given to the Optionees.

          A "Change of Control" shall be deemed to have occurred upon the
earliest to occur of the following events: (i) the date the stockholders of the
Company (or the Board of Directors, if stockholder action is not required)
approve a plan or other arrangement pursuant to which the Company will be
dissolved or liquidated, or (ii) the date the stockholders of the Company (or
the Board of Directors, if stockholder action is not required) approve a
definitive agreement to sell or otherwise dispose of substantially all of the
assets of the Company, or (iii) the date the stockholders of the Company (or the
Board of Directors, if stockholder action is not required) and the stockholders
of the other constituent corporation (or its board of directors if stockholder
action is not required) have approved a definitive agreement to merge or
consolidate the Company with or into such other corporation, other than, in
either case, a merger or consolidation of the Company in which holders of shares
of the Company's Common Stock immediately prior to the merger or consolidation
will hold at least a majority of the ownership of common stock of the surviving
corporation (and, if one class of common stock is not the only class of voting
securities entitled to vote on the election of directors of the surviving
corporation, a majority of the voting power of the surviving corporation's
voting securities) immediately after the merger or consolidation, which common
stock (and if applicable voting securities) is to be held in the same proportion
as such holders' ownership of Common Stock of the Company immediately before the
merger or consolidation, or (iv) the date any entity, person or group within the
meaning of Section 13(d)(3) or Section 14(d)(2) of the Securities Exchange Act
of 1934, as amended (other than (A) the Company or any of its subsidiaries or
any employee benefit plan (or related trust) sponsored or maintained by the
Company or any of its subsidiaries, or (B) any person who, on the date the Plan
is effective, shall have been the beneficial owner of or have voting control
over shares of Common Stock of the Company, possessing more than ten percent
(10%) of the aggregate voting power of the Company's Common Stock) shall have
become the beneficial owner of, or shall have obtained voting control over, more
than ten percent (10%) of the outstanding shares of the Company's Common Stock,
or (v) the first day after the date this Plan is effective when directors are
elected such that a majority of the Board of Directors shall have been members
of the Board of Directors for less than two (2) years, unless the nomination for
election of each new director who was not a director at the beginning of such
two (2) year period was approved by a vote of at least two-thirds of the
directors then still in office who were directors at the beginning of such
period.

          ADJUSTMENTS ON CHANGES IN CAPITALIZATION. The aggregate number of
Shares and class of shares as to which Options may be granted hereunder and to
any eligible individual hereunder, the number and class or classes of shares
covered by each outstanding Option and the Option Price thereof shall be
appropriately adjusted in the event of a stock dividend, stock split,
recapitalization or other change in the number or class of issued and
outstanding equity securities of the Company resulting from a subdivision or
consolidation of the Common Stock and/or, if appropriate, other outstanding
equity securities or a recapitalization or other capital adjustment (not
including the issuance of Common Stock on the conversion of other securities of
the Company which are convertible into Common Stock) affecting the Common Stock
which is effected without receipt of consideration by the Company. The Committee
shall have authority to determine the adjustments to be made under this Section,
and any such determination by the Committee shall be final, binding and
conclusive; provided, however, that no adjustment shall be made which will cause
an ISO to lose its status as such without the consent of the Optionee, except
for adjustments made pursuant to Section 10 hereof. Notwithstanding the
foregoing, the number of shares set forth in Section 6 already reflects a
one-for-three reverse stock split (the "Reverse Split") expected to be approved
by stockholders of the Company at the Annual Meeting of Stockholders on April 2,
1993 or any adjournment or postponement thereof; no adjustments will be made
pursuant to this Section 11 as a result of the Reverse Split.

          AMENDMENT OF THE PLAN. The Board of Directors of the Company may amend
the Plan from time to time in such manner as it may deem advisable.
Nevertheless, the Board of Directors of the Company may not change the class of
individuals eligible to receive an ISO or increase the maximum number of Shares
as to which Options may be granted without obtaining stockholder approval,
within twelve months before or after such action. No amendment to the Plan shall
adversely affect any outstanding Option, however, without the consent of the
Optionee that holds such Option.

          NO COMMITMENT TO RETAIN. The grant of an Option pursuant to the Plan
shall not be construed to imply or to constitute evidence of any agreement,
express or implied, on the part of the Company or any Affiliate to retain the
Optionee in the employ of the Company or an Affiliate and/or as a member of the
Company's Board of Directors or in any other capacity.

          WITHHOLDING OF TAXES. Whenever the Company proposes or is required to
deliver or transfer Shares in connection with the exercise of an Option, the
Company shall have the right to (a) require the recipient to remit or otherwise
make available to the Company an amount sufficient to satisfy any federal, state
and/or local withholding tax requirements prior to the delivery or transfer of
any certificate or certificates for such Shares or (b) take whatever other
action it deems necessary to protect its interests with respect to tax
liabilities. The Company's obligation to make any delivery or transfer of Shares
shall be conditioned on the Optionee's compliance, to the Company's
satisfaction, with any withholding requirement.

          INTERPRETATION. The Plan is intended to enable transactions under the
Plan with respect to directors and officers (within the meaning of Section 16(a)
under the Securities Exchange Act of 1934, as amended) to satisfy the conditions
of Rule 16b-3; to the extent that any provision of the Plan, or any provisions
of any Option granted pursuant to the Plan, would cause a conflict with such
conditions or would cause the administration of the Plan as provided in Section
3 to fail to satisfy the conditions of Rule 16b-3, such provision shall be
deemed null and void to the extent permitted by applicable law.

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