Document:

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                                                                    EXHIBIT 10.3

                                    FORM OF
                              EMPLOYMENT AGREEMENT

         EMPLOYMENT AGREEMENT, dated as of ______ __, 2003, between Hollywood
Software, Inc., a corporation organized under the laws of the State of
California (the "Company"), ___________ ("Executive"), and Access Integrated
Technologies, Inc. , a Delaware corporation ("AccessIT").

         WHEREAS, Executive desires to provide services to the Company and the
Company desires to retain the services of Executive;

         WHEREAS, the Company is a wholly-owned subsidiary of AccessIT; and

         WHEREAS, the Company and Executive desire to formalize the terms and
conditions of Executive's employment with the Company.

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

         1.       Employment.

                  1.1.     General. The Company hereby employs Executive in the
capacity of [DAVID: President/Chief Operating Officer] [BOB: Chief Technology
Officer] of the Company or in such other executive position as may be mutually
agreed upon by Executive and the Company. Executive hereby accepts such
employment, upon the terms and subject to the conditions herein contained.

                  1.2.     Duties. During the Executive's employment with the
Company, Executive will report directly to the Company's Chief Executive Officer
("CEO") or such other executive officer as the CEO shall designate. Executive
will be responsible for those duties consistent with Executive's position as may
from time to time be assigned to or requested of Executive by the CEO or the
Board of Directors of the Company (the "Board"). Executive shall perform such
responsibilities faithfully and effectively. Executive shall conduct all of his
activities in a manner so as to maintain and promote the business and reputation
of the Company.

                  1.3.     Certifications. Whenever the Chief Executive Officer
of the Company or AccessIT is required by law, rule or regulation or requested
by any governmental authority or by the Company's or AccessIT's auditors to
provide certifications with respect to the Company's or AccessIT's financial
statements or filings with the Securities and Exchange Commission or any other
governmental authority, Executive shall sign such certifications as may be
reasonably requested by the Chief Executive Officer of AccessIT or the Company,
with such exceptions as Executive deems necessary to make such certifications
accurate and not misleading; provided, however, that Executive's failure or
refusal to sign such certifications shall not be deemed a breach of his
obligations under this Agreement and shall not constitute "Cause" unless such
failure is unreasonable in the circumstances.

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                  1.4.     Full-Time Position. Executive, during his employment
with the Company, will devote all of his business time, attention and skills to
the business and affairs of the Company; provided, however, that Executive shall
be entitled to provide time and attention to personal and family business
matters so long as such activities (i) do not violate the terms of any
non-competition covenant between the Executive and the Company and/or Access IT,
and (ii) do not interfere with the performance of Executive's responsibilities
as an executive of the Company. In addition, nothing in this Agreement shall
prevent Executive, upon approval of the Board of Directors of the Company, from
serving as a director, trustee or advisor of other corporations or businesses
which are not in competition with the business of the Company, AccessIT, or
Access Digital Media, Inc.

         2.       Compensation and Benefits.

                  2.1.     Base Salary. The Company shall pay to Executive as
full compensation for any and all services rendered in any capacity during the
term of his employment under this Agreement, an annualized, minimum base salary
of $175,000 ("Base Salary"), subject to such increases, if any, as the Board
shall determine, in its sole discretion. Executive's Base Salary shall be
payable in accordance with the regular payroll practices of the Company, as in
effect from time to time.

                  2.2.     Additional Compensation. Executive shall have no
guaranteed bonus. Any bonus payable to Executive shall be determined by the
Board in its sole discretion based upon performance targets, if any, which may
be adopted by the Board promptly after commencement of the term hereof and at
the beginning of each year of employment hereunder. Executive shall participate
in the preparation of such annual performance targets recommended by management
of the Company for adoption by the Board. In addition, Executive shall be
entitled to participate in such bonus programs as the Company may from time to
time offer or provide to executives of the Company at similar levels.

                  2.3.     Executive Benefits.

                           2.3.1.   Expenses. The Company will reimburse
Executive for expenses he reasonably incurs in connection with the performance
of his duties (including business travel and entertainment expenses), all in
accordance with the Company's policies with respect thereto, as in effect from
time to time.

                           2.3.2.   Benefit Plans. As long as Executive remains
a full-time employee of the Company, Executive shall be entitled to participate
in such executive benefit plans and programs the Company may from time to time
offer or provide to executives of the Company at similar levels, including, but
not limited to, any life insurance, health and accident, medical and dental,
disability and retirement plans and programs. In addition, Executive shall be
entitled to participate in such executive benefit plans and programs AccessIT
may from time to time offer or provide to executives of AccessIT and its
subsidiaries at similar levels, including any stock option, 401(k) or similar
profit sharing or pension plans, as well as any life insurance, health and
accident, medical and dental, disability and retirement plans and programs to
the extent that such plans and programs are more favorable to Executive than
those offered by the Company.

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                           2.3.3.   Vacation. Executive shall be eligible for
four (4) weeks of paid vacation per year. All vacation must be used by December
31 of each year of Executive's employment at which time any unused vacation
shall expire and Executive shall no longer be entitled to such vacation. Except
as may be required by applicable law, no compensation shall be payable in
respect of any unused vacation days.

                  2.4.     Employment Term. Executive's employment by the
Company pursuant to this Agreement shall commence on the date hereof and, except
as provided in Section 3.1 hereof, will continue until October 31, 2005 (the
"Initial Term"). Thereafter, this Agreement shall be automatically renewed for
successive one year periods commencing on November 1, 2005 the anniversary of
such date in each subsequent year (the Initial Term, together with any
subsequent employment period being referred to herein as the "Employment Term");
provided, however, that either party may elect to terminate this Agreement as of
the end of the then current Employment Term, by written notice to such effect
delivered to the other party at least 90 days prior to such termination date.

         3.       Termination of Employment.

                  3.1.     Events of Termination. Executive's employment with
the Company will terminate upon the occurrence of any one or more of the
following events:

                           3.1.1.   Death. In the event of Executive's death,
Executive's employment will terminate on the date of death.

                           3.1.2.   Disability. In the event of Executive's
Disability (as hereinafter defined), the Company will have the option to
terminate Executive's employment by giving a notice of termination to Executive.
The notice of termination shall specify the date of termination, which date
shall not be earlier than thirty (30) days after the notice of termination is
given. For purposes of this Agreement, "Disability" means the inability of
Executive to substantially perform his duties hereunder for either 90
consecutive days or a total of 120 days out of 365 consecutive days as a result
of a physical or mental illness, all as determined in good faith by the Board.

                           3.1.3.   Termination by the Company for Cause. The
Company may, at its option, terminate Executive's employment for "Cause"
determined in good faith by a majority of the Board (exclusive of Executive if
Executive shall then serve as a member of the Board) by giving a notice of
termination to Executive specifying the reasons for termination and if Executive
shall fail to cure same within thirty (30) days of him receiving the notice of
termination his Employment shall terminate at the end of such thirty (30) day
period; provided, that in the event the Board in good faith determines that the
underlying reasons giving rise to such determination cannot be cured, then said
cure period shall not apply and Executive's employment shall terminate on the
date of Executive's receipt of the notice of termination. "Cause" shall mean (i)
Executive's conviction of, guilty or no contest plea to, or confession of guilt
of, a felony or other crime involving moral turpitude; (ii) an act or omission
by Executive in connection with his employment which constitutes gross
negligence, malfeasance, willful misconduct or other bad faith conduct which is
materially injurious to the Company; (iii) a material breach by Executive of
this Agreement; (iv) continuing failure to perform such reasonable duties as are
assigned to Executive by the Company in accordance with the terms of this
Agreement, other than a failure resulting from a Disability as defined in
Section 3.1.2 hereof and refusal to perform duties if such duties would
constitute the basis for a Good Reason (as defined below) resignation by
Executive; (v) Executive's knowing taking any action in conflict of interest
with the Company or any of its affiliates given Executive's position with the
Company but only to the extent that such action results in material harm to the
Company.

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                           3.1.4    Resignation for Good Reason. The Executive
may terminate employment for "Good Reason" by giving notice thereof to the
Company and a brief summary of the nature of the basis for such termination and,
if the Company shall fail to cure the same within thirty (30) days of receiving
such notice, then Executive's employment shall terminate at the end of such
thirty (30) day period. "Good Reason" shall mean any of the following: (i) the
Company requiring Executive to relocate his office more than 35 miles from the
Company's [DAVID: headquarters in Hollywood, California] [BOB: offices in Brea,
California], (ii) the Company assigning Executive to a position other than the
position described in Section 1.1 of this Agreement without Executive's consent,
(iii) the Company requiring Executive to report directly to any officer other
than the Chief Executive Officer or such other executive officer as the CEO
shall designate without Executive's consent, (iv) the Company substantially
diminishing Executive's duties or responsibilities or (v) the Company failing to
pay any amounts owned to Executive when due or otherwise materially breaching
any material term of this Agreement.

                  3.2.     Certain Obligations of the Company Following
Termination of the Executive's Employment. Following the termination of
Executive's employment under the circumstances described below, the Company
shall pay to Executive in accordance with its regular payroll practices the
following compensation and provide the following benefits in full satisfaction
and final settlement of any and all claims and demands that Executive now has or
hereafter may have hereunder against the Company under this Agreement:

                           3.2.1.   Death; Disability. In the event that
Executive's employment is terminated by reason of Executive's death or
Disability, Executive or his estate, as the case may be, shall be entitled to
the following payments:

                                    (i)      continuing payments of Base Salary
through the date of death of Executive or the date of termination due to
Executive's Disability in accordance with the Company's regular payroll
practices;

                                    (ii)     any additional compensation
(including compensation pursuant to Section 2.2 and reimbursement pursuant to
Section 2.4.1 hereof) earned but not yet paid with respect to the calendar year
of termination, or, if based on annual performance, annualizing such performance
to the date of death of Executive or the date of termination due to Executive's
Disability and pro rating such additional compensation for the portion of the
calendar year prior to such termination, payable at the time such additional
compensation would have been payable but for such death or Disability; and

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                                    (iii)    The Company shall pay to Executive
or his estate, as the case may be, the amounts and shall provide all benefits
generally available under the employee benefit plans, and the policies and
practices of the Company, determined in accordance with the applicable terms and
provisions of such plans, policies and practices, in each case, as accrued to
the date of termination or otherwise payable as a consequence of Executive's
death or Disability.

                           3.2.2.   Termination by the Company for Cause. In the
event Executive's employment is terminated by the Company pursuant to Section
3.1.3 hereof, Executive shall be entitled to no further compensation or other
benefits under this Agreement except that portion of any unpaid Base Salary
accrued and earned by him hereunder up to and including the effective date of
such termination.

                           3.2.3    Termination by Company Without Cause or by
Executive for Good Reason. In the event the Company terminates Executive without
Cause or Executive terminates his employment for Good Reason, Executive shall be
entitled to the following payments:

                                    (i)      continuing payments of Base Salary
through the expiration of the Employment Term in accordance with the Company's
regular payroll practices; provided, however, that if the termination for Good
Reason occurs within ninety days prior to the end of the then current Employment
Term and no notice of termination was given prior to such 90 day period, then
the Base Salary shall continue through the end of the yearly term following the
then current Employment Term (the "Extended Term");

                                    (ii)     any additional compensation
(including compensation pursuant to Section 2.2 and reimbursement pursuant to
Section 2.4.1 hereof) earned but not yet paid with respect to the calendar year
of termination, or, if based on annual performance, through the end of the
applicable year, payable at the time such additional compensation would have
been payable but for such death or Disability;

                                    (iii)    The Company shall pay to Executive
or his estate, as the case may be, the amounts and shall provide all benefits
generally available under the employee benefit plans, and the policies and
practices of the Company, determined in accordance with the applicable terms and
provisions of such plans, policies and practices, in each case, as accrued to
the date of termination; and

                                    (iv)     The Company shall, to the extent
legally permissible, continue to participate in any life insurance, health
insurance, and accident, medical and dental, disability and retirement plans and
programs through the end of the Employment Term (and any Extended Term). To the
extent that such participation is not legally permissible, the Company shall
make or reimburse Executive for any continuation benefits under COBRA for the
Employment Term (and any Extended Term).

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                  3.3.     Nature of Payments. All amounts to be paid by the
Company to Executive pursuant to this Section 3 are considered by the parties to
be severance payments. In the event such payments are treated as damages, it is
expressly acknowledged by the parties that damages to Executive for termination
of employment would be difficult to ascertain and the above amounts are
reasonable estimates thereof. Notwithstanding anything to the contrary contained
in this Agreement, payments due pursuant to Section 3.2.3(i) shall be reduced by
the amount of any income received by Executive for services rendered as an
employee to any other business or entity during the remainder of the Employment
Term (and, if applicable, any Extended Term); provided, however, that in no case
shall any reduction be made as a result of investment or other income earned by
Executive in connection with activities other than the provision of employment
or consulting services by Executive. Executive agrees to provide, upon request
by the Company, copies of any Forms W-2 received by Executive for services
rendered during any period in which Executive is entitled to receive payment
pursuant to Section 3.2.3(i) of this Agreement.

                  3.4      Guarantee by AccessIT. The payment obligations of the
Company pursuant to this Agreement are hereby unconditionally and irrevocably
guaranteed by AccessIT.

         4.       Confidentiality; Inventions; Non-Compete.

                  Executive and Company shall enter into a Confidentiality,
Inventions and Noncompete Agreement, the form of which is attached as Exhibit A
hereto. The terms of that agreement and the duties and obligations thereunder
shall be a part of this agreement and Executive agrees to perform its duties
thereunder.

         5.       Miscellaneous Provisions.

                  5.1.     Severability. If in any jurisdiction any term or
provision hereof is determined to be invalid or unenforceable, (a) the remaining
terms and provisions hereof shall be unimpaired, (b) any such invalidity or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction, and (c) the invalid or
unenforceable term or provision shall, for purposes of such jurisdiction, 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.

                  5.2.     Execution in Counterparts. This Agreement may be
executed in one or more counterparts, and by the different parties hereto in
separate counterparts, each of which shall be deemed to be an original but all
of which taken together shall constitute one and the same agreement (and all
signatures need not appear on any one counterpart), and this Agreement shall
become effective when one or more counterparts has been signed by each of the
parties hereto and delivered to each of the other parties hereto.

                  5.3.     Notices. All notices, requests, demands and other
communications hereunder shall be in writing and shall be deemed duly given when
delivered by hand, or when delivered if mailed by registered or certified mail
or overnight delivery, postage prepaid, return receipt requested as follows:

                  If to the Company, to:

                  Hollywood Software, Inc.
                  1604 N. Cahuenga Blvd., Suite 115
                  Hollywood, CA 90028
                  Facsimile No.: 323-463-1319
                  Attention:

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                  Copy to:

                  Access Integrated Technologies, Inc.
                  55 Madison Avenue, Suite 300
                  Morristown, NJ 07960
                  Facsimile No.: 973-290-0081
                  Attention: President

                  Copy to:

                  Kirkpatrick & Lockhart LLP
                  599 Lexington Avenue
                  New York, NY 10022
                  Facsimile No.: (212) 536-3901
                  Attention: Warren H. Colodner, Esq.

                  If to Executive, to:

                  Copy to:

or to such other address(es) as a party hereto shall have designated by like
notice to the other parties hereto.

                  5.4.     Amendment. No provision of this Agreement may be
modified, amended, waived or discharged in any manner except by a written
instrument executed by the Company and Executive.

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                  5.5.     Entire Agreement. This Agreement constitutes the
entire agreement of the parties hereto with respect to the subject matter
hereof, and supersedes all prior agreements and understandings of the parties
hereto, oral or written, with respect to the subject matter hereof.

                  5.6.     Applicable Law; Consent to Jurisdiction. This
Agreement shall be governed by, and construed in accordance with, the laws of
the State of California applicable to contracts entered into and to be performed
wholly within said State. Executive and the Company hereby consent to the
jurisdiction of the Federal and State courts located in the City of Los Angeles
and waive any objections to such courts based on venue in connection with any
claim or dispute arising under this Agreement.

                  5.7.     Headings. The headings contained herein are for the
sole purpose of convenience of reference, and shall not in any way limit or
affect the meaning or interpretation of any of the terms or provisions of this
Agreement.

                  5.8.     Binding Effect; Successors and Assigns. Executive may
not delegate his duties or assign his rights hereunder. This Agreement will
inure to the benefit of, and be binding upon, the parties hereto and their
respective heirs, legal representatives, successors and permitted assigns.

                  5.9.     Waiver, etc. The failure of either of the parties
hereto to at any time enforce any of the provisions of this Agreement shall not
be deemed or construed to be a waiver of any such provision, nor to in any way
affect the validity of this Agreement or any provision hereof or the right of
either of the parties hereto to thereafter enforce each and every provision of
this Agreement. No waiver of any breach of any of the provisions of this
Agreement shall be effective unless set forth in a written instrument executed
by the party against whom or which enforcement of such waiver is sought, and no
waiver of any such breach shall be construed or deemed to be a waiver of any
other or subsequent breach.

                  5.10.    Representations and Warranties. Executive and the
Company hereby represent and warrant to the other that: (a) he or it has full
power, authority and capacity to execute and deliver this Agreement, and to
perform his or its obligations hereunder; (b) such execution, delivery and
performance will not (and with the giving of notice or lapse of time or both
would not) result in the breach of any agreements or other obligations to which
he or it is a party or he or it is otherwise bound; and (c) this Agreement is
his or its valid and binding obligation in accordance with its terms; and (d)
Executive represents and warrants that he is under no other obligations,
contractual or otherwise, that could impair his ability to perform his
obligations under this Agreement.

                  5.11.    Enforcement. If any party institutes legal action to
enforce or interpret the terms and conditions of this Agreement, the prevailing
party shall be awarded reasonable attorneys' fees at all trial and appellate
levels, and the expenses and costs incurred by such prevailing party in
connection therewith.

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                  5.12.    Continuing Effect. Where the context of this
Agreement requires, the respective rights and obligations of the parties shall
survive any termination or expiration of the term of this Agreement.

                  5.13.    Expenses. Each party to this Agreement agrees to bear
his or its own expenses in connection with the negotiation and execution of this
Agreement.

                           [Signature Page to Follow]

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         IN WITNESS WHEREOF, this Employment Agreement has been executed and
delivered by the parties hereto as of the date first above written.

                                        HOLLYWOOD SOFTWARE, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                                        ACCESS INTEGRATED TECHNOLOGIES, INC.

                                        By:
                                            ------------------------------------
                                        Name:
                                        Title:

                                        EXECUTIVE:

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

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                                   EXHIBIT A

                    FORM OF CONFIDENTIALITY, INVENTIONS AND
                              NONCOMPETE AGREEMENT

<PAGE>

                                     Form of
                         CONFIDENTIALITY, INVENTIONS AND
                              NONCOMPETE AGREEMENT

         CONFIDENTIALITY, INVENTIONS AND NONCOMPETE AGREEMENT (this
"Agreement"), dated as of ___________ ___, 2003, made by ______________________
("Employee") in favor of Access Integrated Technologies, Inc., a Delaware
corporation (the "Company").

                                   BACKGROUND

         WHEREAS, it is recognized by the Employee that the day-to-day
performance of his or her duties while in the employment of the Company is
likely to give or require access to confidential Company records and sources of
information and to bring Employee into contact with others engaged in
confidential work for the Company;

         WHEREAS, it is further recognized by the Employee that by reason of
being employed by the Company, Employee may create or develop intellectual
property (including inventions, ideas, discoveries, trade secrets and
copyrightable works) resulting from or arising out of the work performed by
Employee within the scope of Employee's responsibilities, or with the Company's
facilities, equipment or supplies, or resulting from Employee's use or knowledge
of confidential or trade secret information which is proprietary to the Company;
and

         WHEREAS, the Employee has agreed to be bound by the non-competition
provisions of Section 5 hereto in connection with the sale of all of the issued
and outstanding shares of capital stock of the Company pursuant to that certain
Stock Purchase Agreement, dated July , 2003, between and among the Company,
Hollywood Software, Inc. and David Gajda and Robert Jackovich (the "Purchase
Agreement"). Unless otherwise defined herein, capitalized terms used herein
shall have the meanings ascribed to them in the Purchase Agreement.

         NOW, THEREFORE, in consideration of employment by the Company and of
prospective assignments to work on confidential matters, which Employee
acknowledges is sufficient consideration for this Agreement, Employee agrees to
the following continuing obligations:

         1. Confidentiality. During the period of Employee's employment with the
Company, Employee agrees, except in the course of Employee's duties on behalf of
the Company:

                  (a) to keep secret and treat confidentially all confidential
         information of the Company pertaining to Company customers and
         prospective customers, customer requirements, customer financial
         information, and other such confidential information compiled or
         maintained internally by the Company concerning its customers and
         prospective customers; and

<PAGE>

                  (b) to keep secret and treat confidentially all confidential
         information of the Company pertaining to Company products, costs,
         marketing plans and contemplated activities, financial matters,
         research and development, production, engineering, product design, and
         other such confidential information compiled or maintained internally
         by the Company concerning its business, operations and activities; by
         way of illustration, but not limitation, confidential information
         includes inventions, processes, formulae, data, computer programs
         (whether in source or object code form) and all information relating to
         programs now existing or under development, computer program listings,
         know-how, improvements, discoveries, developments, designs, techniques,
         marketing plans, strategies, forecasts, new products, unpublished
         financial statements, budgets, projections, licenses, prices, costs,
         customer and supplier lists and compilations of information. For
         purposes of this Agreement, confidential information does not include
         information (i) which is or becomes generally known to the public or
         within the industry or industries in which the Company operates (other
         than through a breach of this agreement); (ii) made available to
         Employee by a person or entity not affiliated with the Company;
         provided, that such party is not under any -------- obligation of
         confidentiality to the Company which is known to Employee; or (iii)
         required by law or court order to be disclosed; provided, that Employee
         shall give the Company prompt written notice of any such -------- legal
         or judicial process requiring disclosure of confidential information
         and shall reasonably cooperate with the Company at the Company's
         expense, in any lawful action which the Company desires to take to
         limit the disclosure required by such legal or judicial process and
         shall permit to attempt, by appropriate legal means to limit and/or
         delay such disclosure.

         2. Confidentiality Upon Termination. Upon termination of Employee's
employment with the Company, whether voluntary or involuntary and for whatever
reason, Employee agrees:

                  (a) to promptly return to the Company any and all documents
         made or obtained by Employee in the course of his or her employment
         pertaining to or containing any of the confidential information of the
         Company referred to in Section 1 above; and

                  (b) for a period of five (5) years thereafter, to keep
         confidential and to make no written record of confidential information
         of the Company referred to in Section 1 above, and to make no use or
         disclosure thereof adverse to the interests of the Company in any
         geographic area in which Company interests would be damaged by such use
         or disclosure.

         3. Confidential Relationship.Employee acknowledges that this Agreement
provides notice that the Company regards it to be vital to its interest that its
confidential information and trade secrets be safeguarded by its employees.
Employee understands that this Agreement establishes a confidential relationship
between Employee and the Company, and that Employee has a duty under the law not
to breach the confidential relationship by using or disclosing Company
confidential information and trade secrets. Employee further understands that
the Company relies upon Employee honoring such duty of confidence when the
Company entrusts Employee with access to the Company's confidential information
and trade secrets.

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         4. Invention Disclosure and Assignment.

                   4.1 During the period of Employee's employment with the
Company, Employee agrees to report to the Company fully and promptly in writing,
all intellectual property (including inventions, ideas, discoveries, technical
or business innovations and works of authorship, patentable or unpatentable,
trade secrets and copyrightable works) which is made, developed, conceived or
reduced to practice by Employee either solely or jointly with others resulting
from or arising out of the work performed by Employee, within the scope of his
responsibilities, or with the Company's facilities, equipment or supplies, or
which results from his or her use or knowledge of confidential or trade secret
information which is proprietary to the Company.

                   4.2 Upon termination of Employee's employment with the
Company, and for a period of one (1) year thereafter, Employee agrees to report
to the Company fully and promptly in writing, all intellectual property
(including inventions, ideas, discoveries, technical or business innovations and
works of authorship, patentable or unpatentable, trade secrets and copyrightable
works) which is reduced to practice by Employee either solely or jointly with
others, wherever such intellectual property reasonably results from the work
performed by Employee during employment by the Company within the scope of his
or her responsibilities, or with the Company's facilities, equipment or
supplies, or results from his or her use or knowledge of confidential or trade
secret information which is proprietary to the Company.

                   4.3 Employee agrees to hold all such intellectual property
described in this Section 4 for the benefit of the Company and not to assign nor
attempt to assign any rights therein to anyone other than the Company.

                   4.4 Employee agrees to assign to the Company upon its request
and without further compensation all rights, title and interest in such
intellectual property described in this Section 4 to which the Company is
entitled as set forth in this Section 4 at any time, whether during or
subsequent to Employee's period of said employment. Employee agrees to execute
and deliver in a prompt manner all proper documents provided by the Company and
presented to Employee including those necessary and attendant to domestic and
foreign patent applications, including, but not limited to, divisional,
continuation, continuation-in-part, substitute and/or reissue applications, and
all other instruments for the perfection of intellectual property rights,
including related registrations of issued patents, design patent applications
and registrations, applications for utility models and industrial models and
copyrights, as well as formal assignments thereof. The Company will pay all
reasonable out-of-pocket expenses incurred by Employee in perfecting the
Company's rights as they relate to assisting the Company in all proper ways in
the acquisition and preservation of the rights to such intellectual property as
described in this subsection 4.4 and will pay Employee a reasonable hourly rate
for Employee's post-employment efforts in perfecting such intellectual property.

                   4.5 Except as disclosed on Schedule 4.5 attached hereto,
Employee covenants that there are no unpatented inventions, discoveries, ideas,
technical or business innovations and works of authorship or information
currently held by Employee which are to be outside the scope of this agreement.

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<PAGE>

                   4.6 The Employee recognizes that this Agreement does not
require assignment of any invention which he has developed entirely on the
Employee's own time without using the Company's equipment, supplies, facilities,
or trade secret information except for those inventions that either:

                (a) relate at the time of conception or reduction to practice of
       the invention to the Company's business, or actual or demonstrably
       anticipated research or development of the Company; or,

                (b) result from any work performed by the Employee for the
       Company.

                   4.7 The Employee acknowledges that all original works of
authorship which are made by the Employee (solely or jointly with others) within
the scope of his employment and which are protectable by copyright are "works
made for hire," as that term is defined in the United States Copyright Act (17
U.S.C., Section 101) and belong to the Company. The Employee hereby further
waives any moral rights he may otherwise claim on such works of authorship and
copyright.

                   4.8 This Agreement shall not apply to an invention,
improvement, discovery or development which qualifies fully as non-assignable
under Section 2870 of the California Labor Code. The Employee has reviewed the
notification on Exhibit B (Limited Exclusion Notification).

         5. Non-Competition; Non-Solicitation.

                   5.1 Subject to the provisions of Section 8 of the Purchase
Agreement, during the term of Employee's employment by the Company and for any
period thereafter in respect of which the Company is required to and does make
severance payments ("Severance") to the Employee pursuant to the terms of his
Employment Agreement, the Employee will not directly or indirectly:

                (a) engage in any business or activity that competes with the
       Business, anywhere in the United States or Canada;

                (b) enter the employ of any person or entity engaged in any
       business or activity that competes with the Business or render any
       consulting or other services to any person or entity for use in or with
       the effect of competing with the Business;

                (c) have an interest in any business or activity that competes
       with the Business, in any capacity, including, without limitation, as an
       investor, partner, stockholder, officer, director, principal, agent,
       employee, or creditor; provided, however, that nothing herein shall
       prevent the purchase or ownership by the Employee of less than 3% of the
       outstanding equity securities of any class of securities of a company
       registered under Section 12 of the Securities and Exchange Act of 1934,
       as amended;

                                       4
<PAGE>

                (d) recruit, solicit or induce, or attempt to recruit, solicit
       or induce, any employee or employees of the Company to terminate their
       employment with, or otherwise cease their relationship with, the Company;
       or

                (e) solicit, divert or take away, or in any manner persuade or
       attempt to persuade any of the clients, customers or accounts, or
       prospective clients, customers or accounts of the Company which were
       contracted, solicited or served by the Employee while employed by the
       Company to discontinue, cease or alter his, her or its relationship with
       the Company.

                [The following carve out is for Jackovich only.] Notwithstanding
       the foregoing, Jackovich may, upon (i) termination of employment by the
       Company without Cause (as defined in his Employment Agreement), (ii)
       resignation by Jackovich for Good Reason (as defined in his Employment
       Agreement), or (iii) expiration of the Employment Term (as defined in his
       Employment Agreement), be employed by (A) a consulting company so long as
       such consulting company is not engaged, and does not become engaged, in
       the Business or (B) a company in the film distribution, production or
       exhibition business so long as such company is not engaged, and does not
       become engaged, in the Business (other than the research, development or
       production of proprietary back office transaction software for both
       distributors or exhibitors of filmed and digital entertainment for its
       own use or for the use of such company's subsidiaries or affiliates);
       provided, that, prior to commencing employment with any such company,
       Jackovich shall deliver written notice to such company, with a copy to
       the Company, of his obligations hereunder and under to the terms of the
       Purchase Agreement. [END OF CARVE OUT FOR JACKOVICH]

                Notwithstanding anything to the contrary contained in this
       Agreement, the Employee's Employment Agreement or the Purchase Agreement,
       the provisions of this Section 5.1 and any non-compete covenant in favor
       of the Company or its affiliates contained in any other document(s) to
       which the Employee is a party, shall terminate and be of no further force
       and effect in the event that the Company is in default, and fails to cure
       such default within thirty (30) days prior written notice from the
       applicable Seller, under (i) any obligations under the Note or Pledge
       Agreement securing such Note, (ii) any payment obligation under the
       Purchase Agreement, or (iii) any obligation of the Company to issue,
       deliver and/or permit the sale of any shares of Class A Common Stock
       issued pursuant to the terms of the Purchase Agreement. Notwithstanding
       anything to the contrary contained in the first paragraph of this Section
       5.1, in the event that the Employee's employment by the Company is
       terminated and the Company's obligation to pay Severance is terminated as
       a result of either (A) any waiver by the Employee of his right to receive
       such Severance or (B) as a result of any offset against earnings of the
       Employee in accordance with his Employment Agreement, then the covenants
       contained in this Agreement shall terminate upon the date on which the
       Severance payments are terminated, waived or offset.

                   5.2 If any restriction set forth in this Section 5 is found
by any court of competent jurisdiction to be unenforceable because it extends
for too long a period of time or over too great a range of activities or in too
broad a geographic area, it shall be interpreted to extend only over the maximum
period of time, range of activities or geographic area as to which it may be
enforceable.

                                       5
<PAGE>

                   5.3 The restrictions contained in this Section 5 are
necessary for the protection of the business and goodwill of the Company and are
considered by Employee to be reasonable for such purpose. In addition, Employee
acknowledges that Employee's education, background, skills, and experience are
such that the enforcement of the restrictions in this Section 5 will not
unreasonably interfere with Employee's ability to earn a living. Employee agrees
that Severance paid to him constitutes consideration in respect of his
obligations hereunder with respect to the periods covered thereby, including,
without limitation, periods subsequent to his employment.

        6. Miscellaneous.

          (a) All of the covenants and provisions herein contained are
severable; in the event that any of said covenants or provisions shall be held
by any court of competent jurisdiction to be invalid or unenforceable, this
agreement shall be construed as if any such invalid or unenforceable covenant or
provision were not herein contained. Employee acknowledges and agrees that any
breach by Employee of any provision of this Agreement would cause irreparable
injury to the Company and could not be remedied solely by monetary damages. In
addition to any other available remedies in enforcing this agreement, the
Company shall be entitled to equitable relief, including, without limitation,
injunctive relief and specific performance, without proof of actual damages. No
delay or omission by the Company in exercising any right under this agreement
shall operate as a waiver of that or any other right. A written waiver or
consent given by the Company on any one occasion shall be effective only in that
instance and shall not be construed as a bar or waiver of any right on any other
occasion.

          (b) This Agreement shall be governed by and construed in accordance
with the laws of the State of California. Employee agrees that notwithstanding
Employee's place of residence at the time of or subsequent to any breach by
undersigned of this agreement, that he or she shall be subject to suit in the
state or Federal courts located in Los Angeles County, California.

                            [SIGNATURE PAGE FOLLOWS]

                                       6
<PAGE>

         IN WITNESS WHEREOF, the undersigned has executed this Confidentiality,
Inventions and Noncompete Agreement as of the day and year first above written.

                                    Employee:

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

                                       7
<PAGE>

                                  SCHEDULE 4.5

         Unpatented inventions, discoveries, ideas, technical or business
innovations and works of authorship or information currently held by Employee
that are outside the scope of this Agreement.

<PAGE>

                                    EXHIBIT B

                         LIMITED EXCLUSION NOTIFICATION

         THIS IS TO NOTIFY you in accordance with Section 2872 of the California
Labor Code that the foregoing Agreement between you and the Company does not
require you to assign or offer to assign to the Company any invention that you
developed entirely on your own time without using the Company's equipment,
supplies, facilities or trade secret information except for those inventions
that either:

         1. relate at the time of conception or reduction to practice of the
invention to the company's business, or actual or demonstrably anticipated
research or development of the Company; and

         2. result from any work performed by you for the Company.

         To the extent a provision in the foregoing Agreement purports to
require you to assign an invention otherwise excluded from the preceding
paragraph, the provision is against the public policy of this state and is
unenforceable.

         This limited exclusion does not apply to any patent or invention
covered by a contract between the Company and the United States or any of its
agencies requiring full tide to such patent or invention to be in the United
States.<PAGE>

                                                                    EXHIBIT 10.4

                           FIRST AMENDED AND RESTATED
           ACCESS INTEGRATED TECHNOLOGIES, INC. 2000 STOCK OPTION PLAN

                                    ARTICLE I

                        PURPOSE AND ADOPTION OF THE PLAN

         1.01 Purpose. The purpose of the Plan is to assist the Company in
attracting and retaining highly competent employees and to act as an incentive
in motivating selected officers and other key employees of the Company, and
directors and consultants of the Company, to achieve long-term corporate
objectives.

         1.02 Adoption, Amendment and Term. The Plan was approved by the Board
of Directors and the stockholders of the Company on June 1, 2000 (the "Effective
Date") and amended by the Board of Directors and Stockholders of the Company on
January 7, 2003, and shall remain in effect until terminated by action of the
Board; provided, however, that no Option may be granted hereunder after the
tenth anniversary of the Effective Date.

                                   ARTICLE II

                                   DEFINITIONS

         For the purpose of this Plan, the following capitalized terms shall
have the following meanings:

         2.01 Beneficiary means an individual, trust or estate who or which, by
a written designation of the Participant filed with the Company or by operation
of law, succeeds to the rights and obligations of the Participant under the Plan
and the Option Agreement upon the Participant's death.

         2.02 Board means the Board of Directors of the Company.

         2.03 Change in Control means, and shall be deemed to have occurred upon
the occurrence of, any one of the following events:

                           (a) prior to the occurrence of a public offering of
                  the Company's securities, the consummation of any transaction
                  in connection with which the Current Shareholders dispose of
                  for value 60% or more of the Company Voting Securities (on a
                  fully diluted basis) then beneficially owned (within the
                  meaning of Rule 13d-3 promulgated under the Exchange Act) by
                  the Current Shareholders; provided, however, that a "Change in
                  Control" shall not occur upon the consummation of an initial
                  public offering ("IPO") of the Company's securities; or

<PAGE>

                           (b) following the occurrence of an IPO of the
                  Company's securities, the acquisition in one or more
                  transactions by any individual, entity or group (within the
                  meaning of Section 13(d)(3) or 14(d)(2) of the Exchange Act),
                  other than any beneficial owner (within the meaning of Rule
                  13d-3 promulgated under the Exchange Act) of beneficial
                  ownership of in excess of fifty percent (50%) of the
                  then-outstanding Company Voting Securities (on a fully diluted
                  basis); provided, however, that the term "Change in Control"
                  shall not include any such acquisition by any entity with
                  respect to which, following such acquisition, more than 50% of
                  the then-outstanding shares of voting stock of such entity is
                  then beneficially owned, directly or indirectly, by
                  individuals and entities who were beneficial owners of the
                  then-outstanding Company Voting Securities (and/or options,
                  warrants or other rights to acquire Company Voting Securities)
                  immediately prior to such acquisition in substantially the
                  same proportion as their ownership immediately prior to such
                  acquisition of the then-outstanding Company Voting Securities
                  (and/or options, warrants or other rights to acquire Company
                  Voting Securities); or

                           (c) following the occurrence of an IPO of the
                  Company's securities, the consummation of a Merger, unless,
                  following such Merger, stock possessing at least fifty percent
                  (50%) of the total combined voting power of the issued and
                  outstanding shares of all classes of Company Voting Securities
                  of the corporation resulting from such Merger is beneficially
                  owned, directly or indirectly, by individuals and entities who
                  were beneficial owners of the then-outstanding Company Voting
                  Securities immediately prior to such Merger in substantially
                  the same proportion as their ownership immediately prior to
                  such Merger; or

                           (d) individuals who are members of the Board as of
                  the Effective Date of this Agreement (the "Incumbent
                  Directors") cease for any reason to constitute at least a
                  majority of the members of the Board; provided, however, that
                  any individual becoming a director subsequent to the date of
                  this Agreement whose appointment to the Board or nomination
                  for election by the Company was approved by a vote of at least
                  a majority of the Incumbent Directors then in office (unless
                  such appointment or election was at the request of an
                  unrelated third party who has taken steps reasonably
                  calculated to result in a Change in Control as described in
                  paragraphs (b) or (c) of this Section 2.03 and who has
                  indicated publicly an intent to seek control of the Company)
                  shall be treated from the date of his appointment or election
                  as an Incumbent Director; or

                           (e) consummation of a complete liquidation or
                  dissolution of the Company.

         2.04 Code means the Internal Revenue Code of 1986, as amended.
References to a section of the Code shall include that section and any
comparable section or sections of any future legislation that amends,
supplements or supersedes said section

                                       2
<PAGE>

         2.05 Committee means the Committee defined in Section 3.01.

         2.06 Company means Access Integrated Technologies, Inc. (previously,
Access Colo, Inc.), a Delaware corporation, its subsidiaries (within the meaning
of Section 424(f) of the Code) and any successors thereto.

         2.07 Company Voting Securities means the combined voting power of the
Common Stock of the Company and all other outstanding securities of the Company
entitled to vote generally in the election of directors of the Company.

         2.08 Common Stock means Class A Common Stock of the Company, par value
$.001 per share.

         2.09 Current Shareholders means those individuals or entities who are
parties to the Shareholders Agreement between the Company and its stockholders.

         2.10 Date of Grant means the date designated by the Board or the
Committee as the date as of which it grants an Option, which shall not be
earlier than the date on which the Board or the Committee approves the granting
of such Option.

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

         2.12 Fair Market Value means, as of any applicable date, the fair
market value of the Common Stock as determined by the Board based upon such
evidence as it may think necessary or desirable.

         2.13 Incentive Stock Option means a stock option within the meaning of
Section 422 of the Code.

         2.14 Merger means any merger, reorganization, consolidation, share
exchange, transfer of assets or other transaction having similar effect
involving the Company.

         2.15 Nonstatutory Stock Option means a stock option which is not an
Incentive Stock Option.

         2.16 Option Agreement means a written agreement between the Company and
a Participant specifically setting forth the terms and conditions of an Option
granted under the Plan substantially in the form of Exhibit A attached hereto.

         2.17 Option Price, with respect to Options, shall have the meaning set
forth in Section 6.01(b).

         2.18 Option Term means, with respect to an Option, the period of time
set forth in the Option Agreement during which the Option may be exercised.

         2.19 Options means all Nonstatutory Stock Options and Incentive Stock
Options granted at any time under the Plan.

                                       3
<PAGE>

         2.20 Participant means a person designated to receive an Option under
the Plan in accordance with Section 5.01.

         2.21 Plan means the First Amended and Restated Access Integrated
Technologies, Inc. 2000 Stock Option Plan as described herein, as the same may
be amended from time to time.

         2.22 Ten Percent Shareholder means any individual who, at the time the
Option is granted, owns stock possessing more than 10 percent of the total
combined voting power of all classes of stock of the Company.

                                   ARTICLE III

                                 ADMINISTRATION

         3.01 Committee. The Plan shall be administered by the Board or, in the
discretion of the Board, by a committee of the Board (the "Committee") comprised
of one or more persons. The Committee or Board shall have exclusive and final
authority in each determination, interpretation or other action affecting the
Plan and its Participants. The Board or Committee shall have the sole
discretionary authority to interpret the Plan, to establish and modify
administrative rules for the Plan, to impose such conditions and restrictions on
Options as it determines appropriate, and to take such steps in connection with
the Plan and Options granted hereunder as it may deem necessary or advisable.
The Board or Committee may delegate such of its powers and authority under the
Plan as it deems appropriate and in compliance with applicable law. In the event
of such delegation of authority or exercise of authority by the Board or
Committee, references in the Plan to the Committee shall be deemed to refer to
the delegate of the Board or the Committee as the case may be. For purposes of
this Plan, references to the Committee shall be deemed references to the Board
to the extent that the Board has not appointed a Committee to administer the
Plan.

                                   ARTICLE IV

                                     SHARES

         4.01 Number of Shares Issuable. The maximum number of shares initially
authorized to be issued under the Plan and available for issuance as Options
shall be 2,000,000 shares of Common Stock. No more than 500,000 shares shall be
granted as an Option to any Participant in any single calendar year. The number
of shares available for issuance under the Plan shall be further subject to
adjustment in accordance with Section 7.06. The shares to be offered under the
Plan shall be authorized and unissued Common Stock, or issued Common Stock which
shall have been reacquired by the Company.

         4.02 Shares Subject to Terminated Options. Common Stock covered by any
unexercised portions of terminated Options (including canceled Options) granted
under Article VI and Common Stock subject to any Options which are otherwise
surrendered by the Participant may again be subject to new Options under the
Plan.

                                       4
<PAGE>

                                    ARTICLE V

                                  PARTICIPATION

         5.01 Eligible Participants. Participants in the Plan shall be such
officers, key employees, directors and consultants of the Company as the
Committee, in its sole discretion, may designate from time to time. The
Committee's designation of a Participant in any year shall not require the
Committee to designate such person to receive Options or grants in any other
year. The Committee shall consider such factors as it deems pertinent in
selecting Participants and in determining the type and amount of their
respective Options.

                                   ARTICLE VI

                                  STOCK OPTIONS

         6.01 Option Awards.

         (a) General. The Committee may grant, to such Participants as the
Committee may select, Options entitling the Participant to purchase shares of
Common Stock from the Company in such number, at such price, and on such terms
and subject to such conditions, not inconsistent with the terms of this Plan, as
may be established by the Committee. The terms of any Option granted under this
Plan shall be set forth in an Option Agreement.

         (b) Purchase Price of Options. The Option Price of each share of Common
Stock which may be purchased upon exercise of any Option granted under the Plan
shall be determined by the Board of Directors or the Committee; provided,
however, that (i) with respect to Incentive Stock Options, the Option Price per
share shall in all cases be equal to or greater than the Fair Market Value of a
share of Common Stock on the Date of Grant as required under Section 422 of the
Code, and (ii) with respect to any Incentive Stock Option granted to any Ten
Percent Shareholder, the Option Price per share shall in all cases be equal to
or greater than 110 percent of the Fair Market Value of a share of Common Stock
on the Date of Grant as required under Section 422 of the Code.

         (c) Designation of Options. Except as otherwise expressly provided in
the Plan, the Committee may designate, at the time of the grant of each Option,
the Option as an Incentive Stock Option or a Nonstatutory Stock Option.

         (d) Incentive Stock Option Share Limitation. No Participant may be
granted Incentive Stock Options under the Plan (or any other plans of the
Company) which would result in shares with an aggregate Fair Market Value
(measured on the Date of Grant) of more than $100,000 first becoming exercisable
in any one calendar year.

         (e) Rights as a Shareholder. A Participant or a transferee of an Option
pursuant to Section 7.04 shall have no rights as a shareholder with respect to
Common Stock covered by an Option until the Participant or transferee shall have
become the holder of record of any such shares, and no adjustment shall be made
for dividends in cash or other property or distributions or other rights with
respect to any such Common Stock for which the record date is prior to the date
on which the Participant or a transferee of the Option shall have become the
holder of record of any such shares covered by the Option; provided, however,
that Participants are entitled to share adjustments to reflect capital changes
under Section 7.06.

                                       5
<PAGE>

         6.02 Terms of Stock Options.

         (a) Conditions on Exercise. An Option Agreement with respect to Options
may contain such waiting periods, exercise dates and restrictions on exercise
(including, but not limited to, periodic installments) as may be determined by
the Committee as of the Date of Grant.

         (b) Duration of Options. Options shall terminate after the first to
occur of the following events:

                  (i) Expiration of the Option as provided in the Option
         Agreement;

                  (ii) Termination of the Option as provided in Section 6.03,
         following the Participant's termination of employment; or

                  (iii) Ten years from the Date of Grant (five years from the
         Date of Grant in the case of any Incentive Stock Option granted to a
         Ten Percent Shareholder).

         (c) Acceleration of Exercise Time. The Board of Directors or the
Committee, in its sole discretion, shall have the right (but shall not in any
case be obligated), exercisable at any time after the Date of Grant, to permit
the exercise of any Option prior to the time such Option would otherwise become
exercisable under the terms of the Option Agreement.

         (d) Extension of Exercise Time. The Board of Directors or the
Committee, in its sole discretion, shall have the right (but shall not in any
case be obligated), exercisable on or at any time after the Date of Grant, to
permit any Option granted under this Plan to be exercised after its expiration
date, subject, however, to the limitation described in Section 6.02(b)(iii).

         6.03 Exercise of Options upon Termination of Employment.

         (a) General. Except as otherwise expressly provided in the applicable
Option Agreement, in event of the termination of employment of the Participant
by the Participant or the Company for any reason whatsoever other than death or
Permanent Disability (as defined in Section 6.03(b)), any vested or nonvested
Options which are not exercised (or exercisable) prior to the date of such
termination of employment shall terminate on such date and shall not be
exercisable at any time thereafter. For purposes of this Section 6.03,
termination of employment with respect to a Participant who is a director or
consultant and who is not otherwise an employee of the Company shall mean
voluntary or involuntary termination of Board service or the consulting
relationship, as the case may be, for any reason.

                                       6
<PAGE>

         (b) Death or Permanent Disability. Except as otherwise expressly
provided in the applicable Option Agreement, in the event of the termination of
the employment of the Participant by reason of death or Permanent Disability,
any Options that were vested prior to the date of such termination (and which
were not previously exercised), together with any other Options designated in
writing by the Board or the Committee, shall terminate on the earliest of (i)
one hundred eighty days after the date of such termination, or (ii) the last day
of the Option Term. Any Options that were not vested prior to the date of such
termination shall terminate as of the date of such termination and shall not be
exercisable at any time thereafter. As used in this Plan, the term "Permanent
Disability" means the Participant being deemed to have suffered a disability
that makes the Participant eligible for immediate benefits under any long-term
disability plan of the Company, as in effect from time to time; for consultants
or directors, "Permanent Disability" means that a consultant or director, as the
case may be, is unable to perform his or her duties due to a physical or mental
impairment that is expected to last at least twelve (12) months or result in
death, as determined by the Committee with the advice of a physician selected by
the Committee.

         6.04 Exercise Procedures. Each Option granted under the Plan shall be
exercised by written notice to the Company which must be received by the officer
or employee of the Company designated in the Option Agreement on or before the
close of business on the expiration date of the Option. The Option Price of
shares purchased upon exercise of an Option granted under the Plan shall be paid
in full in cash by the Participant pursuant to the Option Agreement; provided,
however, that the Committee may (but shall not be required to) permit payment to
be made by delivery to the Company of either (a) Common Stock (which may include
shares otherwise issuable in connection with the exercise of the Option, subject
to such rules as the Committee deems appropriate), (b) any combination of cash
and Common Stock, or (c) such other consideration as the Committee deems
appropriate, including a "cashless" exercise. In the event that any Common Stock
shall be transferred to the Company to satisfy all or any part of the Option
Price, the part of the Purchase Price deemed to have been satisfied by such
transfer of Common Stock shall be equal to the product derived by multiplying
the Fair Market Value of a share of Common Stock as of the date of exercise
times the number of shares of Common Stock transferred to the Company. The
Participant may not transfer to the Company in satisfaction of the Option Price
any fractional share of Common Stock. Any part of the Option Price paid in cash
upon the exercise of any Option shall be added to the general funds of the
Company and may be used for any proper corporate purpose. Unless the Board or
the Committee shall otherwise determine, any Common Stock transferred to the
Company as payment of all or part of the Option Price upon the exercise of any
Option shall be held as treasury shares.

         6.05 Change in Control. Unless otherwise provided by the Committee in
the applicable Option Agreement, in the event of a Change in Control, Options
outstanding on the date of such Change in Control that have not previously
vested or terminated under the terms of the applicable Option Agreement shall
become immediately and fully exercisable. Notwithstanding the foregoing, unless
otherwise determined by the Board, no Change in Control of the Company shall be
deemed to have occurred for purposes of determining a Participant's rights under
this Plan if (i) the Participant is a member of a group that first announces a
proposal which, if successful, would result in a Change of Control, which
proposal (including any modifications thereof) is ultimately successful, or (ii)
the Participant acquires a two percent or more equity interest in the entity
that ultimately acquires the Company pursuant to the transaction described in
clause (i) of this Section 6.05.

                                       7
<PAGE>

                                   ARTICLE VII

                                  MISCELLANEOUS

         7.01 Plan Provisions Control Option Terms. The terms of the Plan shall
govern all Options granted under the Plan, and in no event shall the Committee
have the power to grant any Option under the Plan which is contrary to any of
the provisions of the Plan. In the event any provision of any Options granted
under the Plan shall conflict with any term in the Plan as constituted on the
Date of Grant of such Option, the term in the Plan as constituted on the Date of
Grant of such Option shall control. Except as provided in Section 7.03 and
Section 7.06, the terms of any Option granted under the Plan may not be changed
after the Date of Grant of such Option so as to materially decrease the value of
the Option without the express written approval of the holder.

         7.02 Option Agreement. No person shall have any rights under any Option
granted under the Plan unless and until the Company and the Participant to whom
such Option shall have been granted shall have executed and delivered an Option
Agreement or received any other Option acknowledgment authorized by the
Committee expressly granting the Option to such person and containing provisions
setting forth the terms of the Option.

         7.03 Modification of Option After Grant. No Option granted under the
Plan to a Participant may be modified (unless such modification does not
materially decrease the value of the Option) after the Date of Grant except by
express written agreement between the Company and the Participant, provided that
any such change (a) shall not be inconsistent with the terms of the Plan, and
(b) shall be approved by the Board or the Committee.

         7.04 Limitation on Transfer. A Participant's rights and interest under
the Plan may not be assigned or transferred other than by will or the laws of
descent and distribution, and during the lifetime of a Participant, only the
Participant personally (or the Participant's personal representative) may
exercise rights under the Plan. The Participant's Beneficiary may exercise the
Participant's rights to the extent they are exercisable under the Plan following
the death of the Participant.

         7.05 Taxes. The Company shall be entitled, if the Board or the
Committee deems it necessary or desirable, to withhold (or secure payment from
the Participant in lieu of withholding) the amount of any withholding or other
tax required by law to be withheld or paid by the Company with respect to any
amount payable and/or shares issuable with respect to such Participant's Option,
or with respect to any income recognized upon a disqualifying disposition of
shares received pursuant to the exercise of an Incentive Stock Option, and the
Company may defer payment or issuance of shares upon exercise of an Option
unless indemnified to its satisfaction against any liability for any such tax.
The amount of such withholding or tax payment shall be determined by the Board
or the Committee and shall be payable by the Participant at such time as the
Board or the Committee determines. The Participant shall meet his or her
withholding requirement by direct payment to the Company in cash of the amount
of any taxes required to be withheld with respect to such Option; provided,
however, that the Board or the Committee may (but shall not be required to)
permit the Participant to meet his or her withholding requirement by (i) having
withheld from such Option at the appropriate time that number of shares of
Common Stock, rounded up to the next whole share, whose Fair Market Value is
equal to the amount of withholding taxes due, or (ii) a combination of shares
and cash.

                                       8
<PAGE>

         7.06 Adjustments to Reflect Capital Changes.

                  (a) Recapitalization. The number and kind of shares subject to
         outstanding Options, the Option Price for such shares, the number and
         kind of shares available for Options subsequently granted under the
         Plan and the maximum number of shares in respect of which Options can
         be made to any Participant in any calendar year shall be appropriately
         adjusted to reflect any stock dividend, stock split, combination or
         exchange of shares, merger, consolidation or other change in
         capitalization with a similar substantive effect upon the Plan or the
         Options granted under the Plan. The Board and the Committee shall have
         the power and sole discretion to determine the amount of the adjustment
         to be made in each case.

                  (b) Merger. In the event of a Merger in which the Company is
         not the surviving corporation or pursuant to which a majority of the
         shares which are of the same class as the shares that are subject to
         outstanding Options are exchanged for, or converted into, or otherwise
         become shares of another corporation or other consideration, the Board
         and the Committee shall have the sole discretion to determine that (i)
         the surviving, continuing, successor or purchasing corporation, as the
         case may be (the "Acquiring Corporation"), will either assume the
         Company's rights and obligations under outstanding Option Agreements or
         substitute options in respect of the Acquiring Corporation's stock for
         outstanding Options or (ii) the outstanding Options shall be canceled
         in exchange for such consideration as the Board or the Committee shall
         approve (based on the value of the consideration received in the Merger
         by holders of the same class of shares that are subject to outstanding
         Options).

                  (c) Options to Purchase Shares of Stock of Acquired Companies.
         After any Merger in which the Company shall be a surviving corporation,
         the Committee may grant substituted options under the provisions of the
         Plan, pursuant to Section 424 of the Code, replacing old options
         granted under a plan of another party to the Merger whose shares or
         stock subject to the old options may no longer be issued following the
         Merger. The foregoing adjustments and manner of application of the
         foregoing provisions shall be determined by the Board or the Committee
         in its sole discretion. Any such adjustments may provide for the
         elimination of any fractional shares which might otherwise become
         subject to any Options.

         7.07 No Right to Employment. No employee or other person shall have any
claim of right to be granted an Option under this Plan. Neither the Plan nor any
action taken hereunder shall be construed as giving any employee any right to be
retained in the employ of the Company.

                                       9
<PAGE>

         7.08 Options Not Includable for Benefit Purposes. Common Stock received
by a Participant pursuant to the provisions of the Plan shall not be included in
the determination of benefits under any pension, group insurance or other
benefit plan applicable to the Participant which is maintained by the Company,
except as may be provided under the terms of such plans or determined by the
Board.

         7.09 Governing Law. All determinations made and actions taken pursuant
to the Plan shall be governed by the laws of the State of Delaware and construed
in accordance therewith.

         7.10 No Strict Construction. No rule of strict construction shall be
implied against the Company, the Board, the Committee, or any other person in
the interpretation of any of the terms of the Plan, any Option granted under the
Plan or any rule or procedure established by the Committee.

         7.11 Captions. The captions (i.e., all Section headings) used in the
Plan are for convenience only, do not constitute a part of the Plan, and shall
not be deemed to limit, characterize or affect in any way any provisions of the
Plan, and all provisions of the Plan shall be construed as if no captions have
been used in the Plan.

         7.12 Severability. Whenever possible, each provision in the Plan and
every Option at any time granted under the Plan shall be interpreted in such
manner as to be effective and valid under applicable law, but if any provision
of the Plan or any Option at any time granted under the Plan shall be held to be
prohibited by or invalid under applicable law, then (a) such provision shall be
deemed amended to accomplish the objectives of the provision as originally
written to the fullest extent permitted by law and (b) all other provisions of
the Plan and every other Option at any time granted under the Plan shall remain
in full force and effect.

         7.13 Amendment and Termination.

                  (a) Amendment. The Board shall have complete power and
         authority to amend the Plan at any time. No termination or amendment of
         the Plan may, without the consent of the Participant to whom any Option
         shall theretofore have been granted under the Plan, adversely affect
         the right of such individual under such Option.

                  (b) Termination. The Board shall have the right and the power
         to terminate the Plan at any time. No Option shall be granted under the
         Plan after the termination of the Plan, but the termination of the Plan
         shall not have any other effect and any Option outstanding at the time
         of the termination of the Plan may be exercised after termination of
         the Plan at any time prior to the expiration date of such Option to the
         same extent such Option would have been exercisable had the Plan not
         terminated.

                                       10
<PAGE>

         7.14 Initial Public Offering. As a condition of participation under
this Plan, each participant shall be obligated to cooperate with the Company and
the underwriters in connection with any public offering of the company's
securities and any transactions relating thereto and shall execute and deliver
such agreements and documents, including without limitation, a lock-up
agreement, as may be requested by the Company or the underwriters. The
Participants' obligations under this Section 7.14 shall apply to any shares of
Common Stock issued under the Plan as well as to any and all other securities of
the Company or its successor for which such Common Stock may be exchanged or
into which such Common Stock may be converted.

         7.15 Applicability of Shareholders' Agreement. Stock purchased pursuant
to grants of Options hereunder shall be subject to the terms of the Shareholders
Agreement, dated April 10, 2000 (the "Shareholders Agreement"), as it may be
amended from time to time, or any successor agreement among the Company and its
stockholders. No certificates evidencing such stock shall be delivered until the
owner thereof has evidenced his acceptance of such Agreement and any and all
provisions thereof in writing. Certificates shall be indorsed with appropriate
notice of applicability of the Shareholders Agreement.

                                    *   *   *

                                       11

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