Document:

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Exhibit 10.1

                       IMAGE TECHNOLOGY LABORATORIES, INC.

                             1988 STOCK OPTION PLAN

1.  Purpose of Plan.

         This 1998 Stock Option Plan (the "Plan") is designed to assist Image
Technology Laboratories, Inc. (the "Company") attracting and retaining highly
qualified persons as employees of the Company and its Subsidiaries and to
provide such key employees with incentives to contribute to the growth and
development of the business of the Company.

         This Plan will be effected through the granting of stock options on the
terms and conditions hereinafter provided, which options are intended to qualify
as "incentive stock options" within the meaning of section 422(b) of the
Internal Revenue Code of 1986, as amended.

2.  Definitions.

         Unless the context otherwise indicates, the following terms have the
following meanings:

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

         "Code" means the Internal Revenue Code of 1986, as the same may from
time to time be amended.

         "Committee" means a committee consisting of at least three (3)
Disinterested Persons appointed by the Board to administer the Plan and to
perform the functions set forth herein.

         "Common Stock" means the Common Stock of the Company.

         "Designated Beneficiary" means the person designated by an optionee to
be entitled on his death to any remaining rights arising out of an option, such
designation to be made by written notice from the optionee to the Company in
accordance with such regulations as the Committee mat create.

         "Disinterested Person" means a person (within the meaning of Rule 16b-3
under the Exchange Act) who at the time he exercises discretion as a member of
the Committee is not and at any time within one (1) year prior thereto has not
been eligible for selection (within the

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meaning of Rule 16b-3 of the Exchange Act) as a person to whom shares of Common
Stock may be allocated or to whom stock options or stock appreciation rights may
be granted pursuant to this Plan or any other plan of the Company or any other
Subsidiary entitling participants therein to acquire stock, stock options or
stock appreciation rights of the Company or any Subsidiary.

         "Employee" means any employee (including any officer) of the Company or
any subsidiary of the Company.

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

         "Fair Market Value" means the fair market value of the shares of Common
Stock as determined by the Committee in its sole discretion; provided, however,
that (A) if the shares are admitted to quotation on the Over-the-Counter
Bulletin Board ("OTCBB") or other comparable quotation system and have been
designated as a National Market System ("NMS") security, Fair Market Value on
any date shall be the last sale price reported for the shares on such system on
such date or on the last day preceding such date on which as sale was reported,
(B) if the shares are admitted to quotation on the OTCBB and have not been
designated a NMS security, Fair Market Value on any date shall be the average of
the highest bid and lowest asked prices of the shares on such system on such
date, or (C) if the shares are admitted to trading on a national securities
exchange, Fair Market Value on any date shall be the last sale price reported
for the shares on such exchange on such date or on the last date preceding such
date on which a sale was reported.

         "Incentive Stock Options" means stock options which constitute
incentive stock options within the meaning of Section 422(b), or any successor
section, of the Code having the provisions specified in the Plan for such
incentive stock options.

         "Parent" means "parent corporation" as defined in Section 425(e), or
any successor section, of the Code.

         "Stock Option Agreement" means a stock option agreement entered into
pursuant to the Plan substantially in the form of Exhibit A hereto.

         "Subsidiary" means "subsidiary corporation" as defined in Section 425
(f), or any successor section of the Code.

         "Ten Percent Stockholder" means any person who, immediately after any
option is granted to such person, owns within the meaning of Section 422 (b)(6),
or any successor section, of the Code more than 10% of the total combined voting
power of all classes of stock of the Company, its parent, if any, or its
Subsidiaries.

3.  Stock Subject to Plan

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         The shares to be issued upon exercise of the options granted under the
Plan shall be Common Stock. The maximum number of shares of Common Stock for
which options may be granted under the Plan shall be 5,000,000 shares (subject
to adjustment as provided in Section 9 hereof). If any option granted under the
Plan shall expire or terminate for any reason whatsoever without having been
exercised in full, the unpurchased shares of Common Stock previously subject to
such option shall become available for new options.

4.  Administration.

         (a) The Plan shall be administered by the Committee, The Board shall
annually appoint the members of the Committee at the annual organizing meeting
of the Board. Each member of the Committee shall be a Disinterested Person.

         (b) The Board shall fill all vacancies on the Committee and may remove
any member of the Committee at any time with or without cause. The committee
shall select its own chairman and shall adopt, alter or repeal such rules and
procedures as it may deem proper and shall hold its meetings at such times and
places as it may determine. The Committee shall keep minutes of its meetings.
Action by a majority of the Committee members present at any meeting at which a
quorum is present, or action approved in writing by all members of the Committee
without a meeting, shall constitute the acts of the Committee.

         (c) Subject to the provisions of the Plan, the Committee shall have the
full and final authority to (i) determine the eligible employees of the Company
and its Subsidiaries to whom, and the times at which, options shall be granted
and the number of shares subject to each option; (ii) prescribe, amend and
rescind rules and regulations relating to the Plan; (iii) determine the
provisions of options granted under the Plan (which need not be identical) and,
with the consent of the holder thereof, amend or modify any option; (iv)
interpret the Plan and the respective options; and (v) make all other
determinations necessary or advisable for administering the Plan. All
determinations and interpretations by the Committee shall be binding upon all
parties. No member of the Committee or the Board shall be liable for any action
or determination made in good faith in respect of the Plan or any option granted
under it.

         (d) The provisions of this Section 4 shall survive any termination of
the Plan.

5.  Eligibility for Award of Options.

         (a) Options may be granted only to officers and other key employees of
the Company and its Subsidiaries. Any reference in the Plan to "employment by
the Company" shall also be deemed to include employment by any Subsidiary of the
Company. Determination by the Committee or the Board as to who are eligible
employees shall be conclusive.

         (b) A person who is a director of the Company shall not be considered
an officer or employee for the purpose of the Plan solely because he or she is a
director. However, a person

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who otherwise is an eligible officer or employee shall not be disqualified by
virtue of being a director of the Company or any Subsidiary.

         (c) More than one option may be granted to any eligible employee.

6.  Option Price.

         The purchase price of the Common Stock under each option shall be
determined by the Committee. The purchase price shall be at least 100 percent
(100%) of the Fair Market Value of the Common Stock on the date of grant of
option. The purchase price under an option granted to an officer or employee who
is a Ten Percent Stockholder shall be at least 110% of the Fair Market Value of
the Common Stock on the date of the grant of the option.

7.  Annual Limitation on Grants to One Officer or Employee.

         No option shall be granted during any calendar year to any individual
under the Plan if the aggregate fair market value (as of the time the option is
granted) of the Common Stock with respect to which incentive stock options are
exercisable for the first time by such individual during any calendar year
(under the Plan and any other plan of the Company, its Parent, if any, and its
Subsidiaries) exceeds $100,000.

8.  Terms and Exercise of Option.

         (a) Maximum Ten-Year Termination Date. Each option shall expire no
later than ten years after the date on which it shall have been granted, but the
Committee in its discretion may prescribe a shorter period for any individual
option or options. Any option granted to a person who is a Ten Percent
Stockholder shall terminate no later than five years after the date on which the
option was granted. The date of termination pursuant to this paragraph is
referred to hereinafter as the "termination date of the option."

         (b) Vesting. Options shall be exercisable at such times and in such
installments, if any, as the Committee may determine. In the event any option is
exercisable in installments, any shares which may be purchased during any year
or other period which are not purchased during such year or other period may be
purchased at any time or from time to time during any subsequent year or period
during the term of the option unless otherwise provided in the Stock Option
Agreement.

         (c) Means of Exercise of Option. An option shall be exercised by
written notice to the Secretary of Treasurer of the Company at its then
principal office which is received not later than 5:00 p.m. of the expiration
date. The notice shall specify the number of shares as to which the option is
being exercised and shall be accompanied by payment in full of the purchase
price for such shares. An optionee at his discretion may, in lieu of cash
payment, deliver Common Stock already owned, with a Fair Market Value (on the
date of exercise) equal to the purchase price for

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the shares being acquired pursuant to the exercise of the option, as payment for
the exercise of any option. In the event an option is being exercised in whole
or in part, pursuant to Section 8 (f) or (g) hereof by any person other than the
optionee, a notice of election shall be accompanied by proof satisfactory to the
Company of the rights of such person to exercise said option. An optionee shall
not, by virtue of the granting of an option, be entitled to any rights of a
shareholder in the Company and he or she shall not be considered a record holder
of shares purchased by him until the date on which he shall actually be recorded
as the holder of such shares upon the stock records of the Company. The Company
shall not be required to pay to the person exercising the option the cash
equivalent of any fractional share interest unless so determined by the
Committee.

         (d) Options are Nontransferable. No option may be transferred by the
optionee (except in connection with death or disability as provided in Sections
8(f) and (g)).

         (e) Options Lapse Three Months after Termination of Employment. In the
event of the termination of an optionee's employment by the Company and its
Subsidiaries at any time for any reason (excluding disability or death), the
optionee's options and all rights thereunder shall expire three months after the
date of termination of employment. The option shall be exercisable by the
optionee at any time within months, but only to the extent exercisable by the
optionee on the date of termination of his or her employment.

         (f) Option Exercisable Six Months After Termination in Event of
Disability. In the event the optionee is permanently and totally disabled
(within the meaning of Section 105(d)(4), or any successor section, of the
Code), the optionee's option and all rights thereunder shall expire six months
after the date of termination of employment. The option shall be exercisable by
the optionee (or the optionee's legal representative) at any time within such
six months.

         (g) Option Exercisable Six Months after Date of Death. If an optionee
shall die while in the employ of the Company or any of its Subsidiaries, his
option may be exercised by his designated beneficiaries (or if none have been
effectively designated, by his executor, administrator or the person to whom
rights under his option shall pass by way of his will or by the laws of descent
and distribution) at any time within six (6) months after date of his death, but
only to the extent exercisable by the optionee at his death. The option shall
expire six months after the date of the optionee's death.

         (h) No Right to Continued Employment. Nothing in the Plan or in any
option granted pursuant hereto shall confer on any individual any right to
continue in the employ of the Company or any of its Subsidiaries or prevent or
interfere in any way with the right of the Company or its Subsidiaries to
terminate the optionee's employment at any time, with or without cause.

         (i) Options Must be Evidenced by Writing. Each option granted pursuant
to the Plan shall be evidenced by a written Stock Option Agreement, duly
executed by the Company and the

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optionee, in such form and containing such provisions as the Committee or Board
may from time to time authorize or approve.

9.  Adjustments.

         The Stock Option Agreement shall contain appropriate provisions for the
adjustment of the kind and number of shares subject to each outstanding option,
and for the adjustment of the exercise price per share, in the event of any
changes in the outstanding Common Stock of the Company by reason of stock
dividends, stock splits, recapitalization, reorganizations, mergers,
consolidations, combinations or exchanges of shares, and the like. In the event
of any such change or changes in the outstanding Common Stock, and as often as
the same shall occur, the kind and aggregate number of shares available under
the Plan shall be appropriately adjusted by the Committee or Board, whose
determination shall be binding and conclusive.

10.  Amendment and Termination.

         (a) Unless the Plan shall have been sooner terminated as provided
herein, it shall terminate on, and no option shall be granted thereunder after
___________, 20__. The Board may at any time prior to that date alter, suspend
or terminate the Plan as it may deem advisable, except that it may not without
further shareholder approval(i) increase the maximum number of shares subject to
the Plan (except for changes pursuant to Section 9), (ii) extend the period
during which options may be granted or exercised or (iii) make any other changes
unless the Board determines that the change would not materially increase the
cost of the Plan to the Company. Except as otherwise hereinafter provided, no
alteration, suspension or termination of the Plan may, without the consent of
the employee to whom any option shall have theretofore been granted (or the
person or persons entitled to exercise such option under Section 8(f) or (g) of
the Plan), terminate his option or adversely affect his rights thereunder.

         (b) Anything herein to the contrary notwithstanding, in the event that
the Board shall at any time declare it advisable to do so in connection with any
proposed sale or conveyance of all or substantially all of the assets of the
Company or of any proposed consolidation or merger of the Company, the Company
may give written notice to the holder of any option that his option may be
exercised only within thirty (30) days after the date of such notice but not
thereafter, and all rights under said option which shall have not been so
exercised shall terminate at the expiration of such thirty (30) days, provided
that the proposed sale, conveyance, consolidation or merger to which such notice
shall relate shall be consummated within six (6) months after the date of such
notice. In the event such notice shall have been given, any such option may be
exercised either in whole or in part notwithstanding the vested period required
under the terms of the option for the exercise thereof. If such proposed sale,
conveyance, consolidation or merger shall not be consummated within said time
period, no unexercised rights under any option shall be affected by such notice
except that such option may not be exercised between the date of expiration of
such thirty (30) days and the date of the expiration of such six (6) months.

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11.  Indemnification.

         Any member of the Committee or the Board who is made, or threatened to
be made, a party to any action or proceeding, whether civil or criminal, by
reason of the fact that the member is or was a member is or was a member of the
Committee or the Board insofar as it relates to the Plan shall be indemnified by
the Company, and the Company may advance his related expenses, to the full
extent permitted by law or to any greater extent as provided in the Company's
Certificate of Incorporation or By-Laws or in any agreement between the Company
and the member.

12.  Effective Date of the Plan.

         The Plan shall become effective on, and options may be granted
thereunder after January 1, 1999, provided, however, that if the Plan shall not
be approved by the holders of a majority of the outstanding voting stock of the
Company within 12 months of said date, the Plan and all options granted
thereunder shall be and become null and void, and provided, further, that no
options granted by the Commission may be exercised prior to the approval of the
Plan by shareholders.

13.  Expenses.

         The Company shall pay all fees and expenses incurred in connection with
the establishment and administration of the Plan.

14.  Government Regulations.  Registration and Listing of Stock.

         (a) The Plan, and the grant and exercise of options thereunder, and the
Company's obligation to sell and deliver stock under such options, shall be
subject to all applicable federal and state laws, rules and regulations and to
such approvals by any regulatory or governmental agency as may be required.

         (b) Unless a registration statement under the Securities Act of 1933
and the applicable rules and regulations thereunder (collectively the "Act") is
then in effect with respect to shares issued upon exercise of any option (which
registration shall not be required), the Company shall require that the offer
and sale of such shares be exempt from the registration provisions of said act.
In furtherance of such exemption, the Company may require, as a condition
precedent to the exercise of any option, that the person exercising the option
give to the Company a written representation and undertaking, satisfactory in
the form and substance to the Company, that he or she is acquiring the shares
for his or her own account for investment and not with a view to the
distribution or resale thereof and otherwise establish to the Company's
satisfaction that the offer or sale of the shares issuable upon the exercise of
the option will not constitute or result in any breach or violation of the Act
or any similar state act or statute or any rules or regulations thereunder. In
the event a Registration Statement under the Act is not then in effect with
respect

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to the shares of Common Stock issued upon exercise of an option, the Company
shall place upon any stock certificate an appropriate legend referring to the
restrictions on disposition under the Act.

         (c) In the event the class of shares issuable upon the exercise of any
option is listed on any national securities exchange, the Company shall not be
required to issue or deliver any certificate for shares upon the exercise of any
options prior to the listing of the shares so issuable on such national
securities exchange and prior to the registration of the same under the Exchange
Act or any similar act or statute.

                                   IMAGE TECHNOLOGY LABORATORIES, INC.

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Exhibit 10.2

                             STOCKHOLDERS' AGREEMENT

         This Agreement (the "Agreement") is entered into as of January 16,
1998, by and among Image Technology Laboratories, Inc. (the "Company"), a
Delaware Company with a place of business at 167 Schwenk Drive, Kingston, New
York 12401, and David Ryon, M.D., an individual residing at 1122 Barnetgat Lane,
Mantoloking, NJ 08738, Carlton T. Phelps, M.D., an individual residing at 284
Indian Lodge Road, Voorheesville, NY 12186, and Lewis M. Edwards, an individual
residing at 42 Finger Street, Saugerties, NY 12477, each individually a founder,
stockholder and executive employee of the Company (herein referred to
individually as a "Stockholder" and collectively as the "Stockholders").

         WHEREAS, the Company has issued and outstanding 20,250 shares of common
stock, $.01 par value, as of the date hereof and the Stockholders who are a
party hereto each own 6,250 such shares (the shares now owned or hereafter
acquired by each individual Stockholder and their respective transferees are
referred to herein as the "Shares") and a fourth non-party stockholder owns
2,500 shares;

         WHEREAS, the Stockholders believe it is in the best interests of the
Company for their Shares, whether owned by a Stockholder as of the date of this
Agreement or subsequently acquired by a Stockholder, to be made available for
sale to the Company or the other Stockholders upon the occurrence of certain
events in order to insure continuity of management and control of the common
stock of the Company;

         WHEREAS, it is deemed to be in the best interests of the Company to
restrict the transfer of the Shares in such a manner that the Shares will not be
transferred to any person or entity with interests detrimental to the best
interests of the Company or its general business strategy and objectives;

         NOW, THEREFORE, in consideration of the mutual covenants, conditions,
and agreements herein contained, the Stockholders do mutually covenant and agree
as follows:

         1. Restrictions on Transfer.

              (a) Transfers Prohibited. Neither a Stockholder nor a
Stockholder's heirs, executors, administrators or permitted assigns, shall
pledge, sell, hypothecate, encumber or otherwise transfer any interest in any of
his Shares except pursuant to the terms of this Agreement without the prior
written consent of all the parties to this Agreement.

              (b) Permitted Transfers. The restrictions on transfer contained in
this Section 1 do not apply with respect to transfers of Shares (i) pursuant to
applicable laws of descent and distribution (subject to the provisions of
Section 3(a) herein); (ii) as a gift without consideration to Stockholder's
spouse and descendants (whether natural or adopted); and (iii) to any trust
solely for the benefit of Stockholder and/or Stockholder's spouse and
descendants; provided in

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each case that each transferee of the Shares first agrees by execution of an
Addendum in the form attached hereto as Exhibit A to be bound by all the terms
of this Agreement to the same extent as the Stockholder making the transfer and
that each transferring Stockholder first deliver to the Company, unless such
delivery is waived by the Company in writing, an opinion of counsel reasonably
acceptable in form and substance to the Company (by a counsel reasonably
acceptable to the Company) that the proposed transfer may be lawfully made on
its intended terms without registration under the Securities Act of 1933. Any
transfer of Shares in accordance with this Section 1(b) is a "Permitted
Transfer" and any person receiving Shares in a Permitted Transfer is a
"Permitted Transferee." Upon making a Permitted Transfer, the Stockholder shall
promptly deliver to the Company an Addendum signed by each Permitted Transferee.

              (c) Effect of Prohibited Transfer. The Company shall not be
required to transfer on its books any Shares sold or transferred in violation of
any of the provisions set forth in this Agreement nor to treat the transferee(s)
of such Shares as the owner of such Shares or to pay dividends to the
transferee(s) on account of such Shares.

         2. Right of First Refusal.

              (a) Company's First Right of Refusal. If a Stockholder desires to
sell his Shares (the "Selling Stockholder") pursuant to a bona fide offer (the
"Offer"), the Selling Stockholder shall offer to sell the Shares first to the
Company and, if the Company declines to accept the Offer, then to the other
Stockholders on the terms and conditions stipulated in such Offer. The Selling
Stockholder shall communicate such an Offer by delivering a notice to the
Company and each Stockholder by any means demonstrating proof of receipt stating
the named and address of the proposed transferee, the price or other
consideration to be paid by the proposed transferee, and all other terms or
conditions of the proposed sale (the "Notice of Offer"). The Company shall have
the first opportunity to accept all or any part of such Offer by delivering a
written notice indicating its agreement to repurchase the number of Shares
specified therein (a "Notice of Repurchase") to the Selling Stockholder and each
other Stockholder, by any means demonstrating proof of delivery to the
Stockholders within 30 days of the date the Company received the Notice of
Offer.

              (b) Stockholder's Second Right of Refusal. If the Company does not
deliver a timely Notice of Repurchase or if it delivers a Notice of Repurchase
electing to purchase some but not all of the Shares offered for sale, then any
other Stockholder may accept all or any part of the Offer (each an "Repurchasing
Stockholder") to the extent that it was not accepted by the Company by
delivering a Notice of Repurchase indicating his agreement to purchase the
number of Shares specified therein to the Selling Stockholder and each other
Stockholder by any means demonstrating proof of delivery within 60 days of the
date the Repurchasing Stockholder received the Notice of Offer. If the
Repurchasing Stockholders offer to purchase more shares in the aggregate than
are available to be purchased after giving effect to the Company's Notice of
Repurchase, then each Repurchasing Stockholder shall be limited to repurchasing
that number of the Shares available for sale that are in proportion to his then
existing stockholder interest in relation to that of the other Repurchasing
Stockholders and to the number of shares as to which he accepted the Offer.

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              (c) Sale by Stockholder. The Selling Stockholder shall be free to
sell any Shares offered to but not repurchased by the Company and the
Repurchasing Stockholders pursuant to their foregoing rights of refusal,
provided that (i) the subsequent sale of such Shares shall not be on terms more
favorable to the transferee than the terms and conditions stipulated in the
Notice of Offer; (ii) the sale of the Shares must be closed no later than 120
days after the mailing of the Notice of Offer to the Company (after which time
the Stockholder will again be subject to the provisions of this Section 2 with
respect to the Offer); (iii) each transferee of the Shares first executes an
Addendum in the form attached hereto as Exhibit A agreeing to be bound by all
the terms of this Agreement to the same extent as the Selling Stockholder; and
(iv) the Selling Stockholder first deliver to the Company an opinion of counsel
reasonably acceptable in form and substance to the Company (by a counsel
reasonably acceptable to the Company) that the proposed transfer may be lawfully
made on its intended terms without registration under the Securities Act of
1933, unless delivery of such an opinion is waived in advance by the Company in
writing.

              (d) Delivery of the Shares and Payment for the Shares. If the
Selling Stockholder receives a timely Notice of Repurchase then no later than 75
days after the date he first delivered the Notice of Offer, the Selling
Stockholder shall deliver to the Company all certificates representing the
Shares subject to repurchase by hand or by certified mail with return receipt
requested duly endorsed in blank or with an executed stock power attached
sufficient for transferring ownership of the Shares to the Company and/or the
Repurchasing Stockholders, together with a copy of all Notices of Repurchase
received. Within 10 days of receiving the certificates, the Company shall (i)
deliver to the Selling Stockholder the full amount of the purchase price for the
Shares being repurchased by the Company by wire transfer or by certified check
or other form of payment acceptable to the Selling Stockholder; and (ii)
promptly notify each Repurchasing Stockholder of the fact that its has received
certificates representing the Shares being repurchased by them and informing
them of the purchase price to be delivered to the Selling Stockholder for the
repurchased Shares. Within 10 days of receiving such notice from the Company,
each Repurchasing Stockholder shall deliver the full amount of the purchase
price to the Selling Stockholder by wire transfer or by certified check or other
form of payment acceptable to the Selling Stockholder. Upon receipt of evidence
of payment of the repurchase price, the Company shall duly issue certificates to
the Repurchasing Stockholders and transfer ownership of the Shares to them on
the books of the Company.

         3. Repurchase Options.

              (a) Option to Purchase at Death. Upon the death of a Stockholder
(the "Deceased Stockholder"), the Company first, and then the surviving
Stockholders, shall have the option to repurchase on a pro rata basis, and the
estate of the Deceased Stockholder shall be required to offer for sale, all of
the Shares of the Deceased Stockholder owned by the Deceased Stockholder at the
time of his death at the Repurchase Price defined in Section 3(c). The estate of
the Deceased Stockholder shall communicate its offer to sell the Deceased
Stockholder's Shares to the Company and the other Stockholders by registered or
certified mail (the "Notice of Offer") within 30 days of the appointment of an
administrator or executor for the estate.

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              (b) Company's Option to Purchase at Termination. In the event that
a Stockholder's employment with the Company is terminated "for cause" by the
Company or by the Stockholder other than "for good reason", the Company (but not
the other Stockholders) shall have the option to repurchase, and the Stockholder
and his Permitted Transferees shall be required to offer for sale, the Unvested
Shares (as defined below) owned by the Stockholder or by Stockholder's Permitted
Transferees as of Stockholder's termination, at the Repurchase Price defined
Section 3(c). For purposes of this paragraph, Shares shall be considered
Unvested and subject to the Company's repurchase option according to the
following vesting schedule:

                                                              Unvested Shares
              Termination Date                               on Termination Date
              ----------------                               -------------------

              on or before June 30, 1998                          6,250
              on or between July 1 and December 31, 1998          4,687
              on or between January 1 and June 30, 1999           3,124
              on or between July 1 and December 31, 1999          1,562
              on or after January 1, 2000                             0

              (c) Repurchase Price. The Repurchase Price for Shares repurchased
pursuant to 3(b) shall be $1.00 per Share. The Repurchase Price for Shares
repurchased pursuant to Section 3(a) shall be their fair market value on the
date of the Stockholder's death as determined in accordance with this Section
3(c). Within seven days of receipt of a Notice of Repurchase delivered as
provided for in Section 3(d), the Board of Directors of the Company (the
"Board") shall appoint an appraiser to determine the fair market value of the
Shares for purposes of this Section 3 whose determination shall be required with
20 days of such appointment and whose fees shall be paid one-half by the Company
and one-half by the estate of the Deceased Stockholder or by the Stockholder
and/or his Permitted Transferees. Promptly upon receipt of the appraiser's
statement of the Shares' fair market value, the Board shall deliver a Notice of
Repurchase Price Determination to the President of the Company and to the estate
of the Deceased Stockholder. The appraiser's determination of fair market value
shall take into account, among other relevant factors, that price which a
willing buyer would pay a willing seller for the Company (neither being under a
compulsion to buy nor sell and both being equally informed as to all material
information concerning the Company), divided by the number of shares of Common
Stock then issued and outstanding, but always without applying a discount
because the Shares constitute a minority interest in the Company.

              (d) Option Exercise and Repurchase Procedure. The Company shall
exercise its option under Section 3(a) within thirty days of receiving a Notice
of Offer by delivering a written Notice of Repurchase to the estate of the
Deceased Stockholder with a copy to the Chairman of the Board accompanied by a
request for appointment of an appraiser as required by Section 3(c) and to each
other Stockholder and any such Stockholder's Permitted Transferees. The Company
shall exercise its option under Section 3(b) by delivering a written Notice of
Repurchase to the Terminated Stockholder and/or his Permitted Transferees within
thirty days of termination of Stockholders employment. In the event that the
Company does not exercise its option to repurchase the Shares of a Deceased
Stockholder offered pursuant to a Notice of Repurchase

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Offer as provided for herein, or if the Company elects to repurchase only some
of the Shares offered for sale, then the other Stockholders may exercise their
repurchase option with respect to their pro rata portion of the Shares not
repurchased the Company (each a "Repurchasing Stockholder") by delivering a
written Notice of Repurchase to the estate of the Deceased Stockholder and to
the Company by registered or certified mail no later than sixty days after the
date of their receipt of the Notice of Repurchase Offer.

         Within 14 days after receipt of a Notice of Repurchase, the Deceased
Stockholder or the Terminated Stockholder and/or his Permitted Transferees (any
such, a "Transferring Stockholder") shall tender to the Company at its principal
offices the certificate or certificates representing the repurchased Shares,
duly endorsed in blank by the transferring stockholder or with duly endorsed
stock powers attached thereto, all in form suitable for the transfer of the
Shares to the parties specified in the Notice(s) of Repurchase Election. Within
10 days after its receipt of such Shares, the Company and/or the Repurchasing
Stockholders shall deliver to the Transferring Stockholder(s) the Repurchase
Price for the Shares being repurchased and the Company shall issue a certificate
to the Transferring Stockholder(s) for the unpurchased Shares, if any.

         4. Restrictive Legends.

         Each certificate representing the Shares, each certificate representing
any Shares transferred to a Permitted Transferee pursuant to Section 1(b), and
each certificate representing any Shares transferred pursuant to Section 2 or
Section 4 (other than Shares purchased by the Company) shall bear the following
legend, in addition to any other applicable legends, until such time as the
applicable restrictions under this Agreement have terminated:

              "The securities represented by this certificate are subject to
              restrictions on transfer and certain rights of first refusal and
              repurchase set forth in a Stockholders' Agreement between the
              issuer (the "Company") and the stockholders named therein dated
              January 16, 1998, a copy of which may be obtained without charge
              at the Company's principal place of business by the holder
              hereof."

         5. Pre-Emptive Rights. Commencing on such date as the Company shall
have closed one or more sales of its stock for an aggregate purchase price of $3
million or more, the Company shall, prior to any subsequent proposed issuance by
the Company of any of its securities (other than debt securities with no equity
feature), offer to each Stockholder by written notice the right, for a period of
thirty days, to purchase for cash at an amount equal to the price or other
consideration for which such securities are to be issued, a number of such
securities so that, after giving effect to such issuance (and the conversion,
exercise and exchange into or for, whether directly or indirectly, shares of
stock of all such securities that are so convertible, exercisable or
exchangeable), such Stockholder will continue to maintain his same proportionate
equity ownership in the Company as of the date of such notice (treating each
Stockholder, for the purpose of such computation, as the holder of the number of
shares of stock which would be issuable to such Stockholder upon conversion,
exercise and exchange of all securities held by such Stockholder on the date
such offer is made, that are convertible, exercisable or exchangeable into or
for, whether directly or indirectly, shares of stock and assuming the like

<PAGE>

conversion, exercise and exchange of all such other securities held by other
persons); provided, however, that the participation rights of the Stockholder
pursuant to this Section shall not apply to securities issued (a) as a stock
dividend or upon any subdivision of shares of stock, provided that the
securities issued pursuant to such stock dividend or subdivisions are limited to
additional shares of stock, (b) solely in consideration for the acquisition
(whether by merger or otherwise) by the Company or any of its subsidiaries of
all or substantially all of the stock or assets of any other entity, (c)
pursuant to the exercise of options to purchase Common Stock granted to
employees of the Company or others by vote of the Board of Directors of the
Company, or (d) upon the exercise of any right which was not itself in violation
of the terms of this Section. The Company's written notice to the Stockholders
shall describe the securities proposed to be issued by the Company and specify
the number, price and payment terms. Each Stockholder may accept the Company's
offer as to the full number of securities offered to it or any lesser number, by
written notice thereof given by it to the Company prior to the expiration of the
aforesaid thirty day period, in which event the Company shall promptly sell and
such Stockholder shall buy, upon the terms specified, the number of securities
agreed to be purchased by such Stockholder. The Company shall be free at any
time prior to ninety days after the date of its notice of offer to the
Stockholder, to offer and sell to any third party or parties the remainder of
such securities proposed to be issued by the Company (including but not limited
to the securities not agreed by the Stockholder to be purchased by them), at a
price and on payment terms no less favorable to the Company than those specified
in such notice of offer to the Stockholder. However, if such third party sale or
sales are not consummated within such ninety days period, the Company shall not
sell such securities as have not been purchased within such period without again
complying with this Section 5.

         6. Termination of the Agreement. This Agreement shall cease and
terminate on the occurrence of any of the following acts or events:

            (a) Cessation of the Company's business, whether by sale of assets,
liquidation, or otherwise;

            (b) Mutual agreement of termination between the Company and all the
Stockholders who are at that time bound by the terms of this Agreement;

            (c) Closing of an initial public offering of the Company's stock
pursuant to a registration statement filed with the Federal Securities and
Exchange Commission;

            (d) Bankruptcy, receivership or dissolution of the Company.

         7. Adjustments. If, from time to time during the term of this
Agreement, there is any stock dividend or stock split or other change in the
character or amount of any of the outstanding securities of the Company, then,
in such event, any and all new, substituted or additional securities to which
any party is entitled by reason of his ownership of stock shall be immediately
subject to the terms of this Agreement and be included in the word "Shares" for
all purposes of this Agreement.

<PAGE>

         8. Employment Status. Nothing in this Agreement shall affect in any
manner whatsoever the right or power of the Company to terminate the employment
of any party hereto.

         9. Protection of Confidential Information.

              (a) Requirements of Confidentiality. Each person who is now or
shall hereafter become a Stockholder subject to this Agreement agrees to hold in
trust and confidence for the benefit of the Company any and all Confidential
Information received by him or her hereunder and shall not, without the prior
written consent of the Company:( i) disclose such Confidential Information to
anyone; nor (ii) use such Confidential Information for any purpose except in
connection with those activities consistent with the best interest of the
Company and all of its stockholders.

              (b) Confidential Information. As used herein, "Confidential
Information" means and collectively includes: any intellectual property,
confidential business plan, financial data and projections, know-how, trade
secrets, recordings, plans, designs, concepts, discoveries, ideas, drawings,
photographs, sales and marketing data, pricing and cost information, customer
and supplier information and any other technical or business information which
is a proprietary and confidential asset of the Company.

         10. Waiver and Legal Representative. The provisions of this Agreement
may be waived or modified in any respect with the written consent of the
Stockholders and the Company or, in the event of the death or permanent
incapacitation of one of the Stockholders, with the written consent of the
Company, the surviving Stockholder and the legal representative of the Deceased
Stockholder or the incapacitated Stockholder. The legal representative of a
Stockholder shall execute and deliver all documents and take all actions
necessary or desirable to carry out the activities consistent with the best
interest of the Company.

         11. Notice. All notices and other communications hereunder shall be in
writing and shall be deemed to have been given upon the earlier of actual
receipt or three days after having been mailed by first class mail, postage
prepaid, or twenty-four hours after having been sent by Federal Express or
similar overnight delivery services, as follows: (a) if to a Stockholder, at the
address shown on at the head of this Agreement, or to such other person(s) or
address(es) as the Stockholder shall have furnished in writing to each other
party for this purpose; and (b) if the to Company, at the address shown at the
head of this Agreement, Attention: Chairman of the Board of Directors, or to
such other person(s) or address(es) as the Company shall have furnished to the
Stockholders in writing. Any notice sent to the Company hereunder shall include
a copy to: David White, Esq., 65 William Street, Suite 209, Wellesley, MA 02181.

         11. Governing Law and Severability. This Agreement shall be governed
by, and construed in accordance with, the laws of the State of Delaware. If any
provision shall be prohibited by or be invalid under Delaware law, such
provision shall be ineffective to the extent of such prohibition or invalidity,
without invalidating the remainder of such provision or the remaining provisions
of this Agreement.

<PAGE>

         12. Further Actions. The Stockholders agree to take any and all actions
as Stockholders, stockholders, or directors at any time or from time to time, as
may be reasonable and necessary to comply with the letter, spirit and tenor of
this Agreement.

         13. Binding Effect, Assignment. This Agreement shall be binding upon,
and shall inure to the benefit of, the Stockholders and their respective heirs
and legal representatives, and shall be binding upon, and shall inure to the
benefit of, the Company and its successors and assigns. This Agreement shall not
be assigned by any of the parties hereto without the prior written consent of
all of the parties hereto.

         14. Entire Agreement. This Agreement represents the complete agreement
of the parties with respect to the transactions contemplated hereby and
supersedes all prior agreements and understandings.

         IN WITNESS WHEREOF, the Company has caused this Agreement to be
executed in its corporate name by its President and the Stockholders have each
executed this Agreement, all as of the date first written above.

Image Technology Laboratories, Inc.

By: /s/ David Ryon
    ---------------------------------------------------
     David Ryon, President

STOCKHOLDERS:

     /s/ David Ryon
     --------------------------
     David Ryon

     /s/ Carlton T. Phelps
     --------------------------
     Carlton T. Phelps

     /s/ Lewis M. Edwards
     --------------------------
     Lewis M. Edwards

<PAGE>

                                    EXHIBIT A

                        ADDENDUM TO STOCKHOLDER AGREEMENT

          In accordance with Section __ of the Stockholder Agreement dated
January 16, 1998 (the "Agreement") among Image Technology Laboratories, Inc.
(the "Company") and the Stockholders as defined therein, the undersigned
transferee hereby agrees that in consideration of the transfer of _______ shares
of Common Stock to the transferee from ____________________
_______________________________________ (the "Stockholder"), the transferee
hereby agrees to enter into and be bound by all the terms and conditions of the
Agreement applicable to the transferee as a Stockholder thereunder, including
but not limited to the restrictions on transfer and the Company's right of first
refusal and repurchase.

TRANSFEREE STOCKHOLDER

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

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