Document:

letterofintent

                                                                             

                                LETTER OF INTENT
                                 BY AND BETWEEN
                    AMERICAN COMMUNICATIONS ENTERPRISES, INC.
                                       And
                             AEROGROUP INCORPORATED

                                                                             

Table of Contents

1.       Delivery of Shares of the Company.....................................1

2.       Consideration for Transfer of Shares..................................2

3.       Publicly-Traded Entity................................................2

4.       ACE's  Representations................................................2

5.       Obligation to Close...................................................4

6.       Exchange of Shares....................................................4

7.       Management............................................................5

8.       Further Provisions....................................................5

         a.  Exclusivity.......................................................5
         b.  Venue.............................................................6
         c.  Confidentiality...................................................6
         d.  Hold Harmless.....................................................6
         e.  Notice............................................................7

9.       Remedies..............................................................8

10.      No Brokers............................................................8

11.      Construction of Terms.................................................8

12.      Non-Assignable........................................................8

13.      Binding Affect........................................................8

14.      Time is of the Essence................................................8

15.      Entire Agreement......................................................8

16.      Modification..........................................................9

17.      Severability..........................................................9

18.      Facsimile and Counterparts............................................9

                                LETTER OF INTENT

        LETTER OF INTENT (the "Agreement"), dated as of May ______, 2001, between
American Communications Enterprises, Inc. a Nevada corporation ("ACE"), and
AeroGroup, Inc., a Nevada corporation (the "Company"), and Shareholders of the
Company ("Shareholders").

        Witnesseth:

        WHEREAS, the Shareholders represent that they are the legal and beneficial
owners of all of the outstanding shares of capital stock of the Company; and
represent that the Company owns all of the properties (copyrights, patents,
trademarks, etc) that are included within the Company's Business Plan which is
attached hereto and incorporated herein as Exhibit A; and that the Company
warrants that it will use its best efforts to exact and accomplish its Business
Plan as set forth and defined within said Business Plan attached hereto as
Exhibit A; and

        WHEREAS, the Shareholders desire to exchange 100% of the capital stock of
the Company for shares of ACE, a publicly traded entity, and ACE desires to
effect such exchange, all on the terms and conditions hereinafter set forth in
such a manner that the exchange will constitute a tax-free reorganization
pursuant to the provisions of Section 368 of the Internal Revenue Code of 1986,
as amended and other applicable IRS and SEC statutory codes and regulations as
mutually agreed upon between ACE and the Company's financial counsel:

        WHEREAS, Frederick Wahl, the Chief Executive Officer of the Company, has
been empowered and authorized by the Shareholders and other interested parties
of the Company to enter into this Agreement, with such signature further
supported by the signatures of the other interested parties of the Company as
listed below; and

        WHEREAS, the Company desires to raise not less than One Million Five
Hundred Thousand dollars (US$1,500,000.00) to be used for the Company's
expansion and growth plans in exchange for 20% of the stock of The Company; and

        WHEREAS, ACE is willing to complete the fund raising for the Company in
consideration of the terms and conditions of this Agreement.

        NOW THEREFORE, in consideration of the premises and the mutual agreements
and undertakings hereinafter set forth, the parties do hereby agree to adopt a
said plan of reorganization. The principal terms of which are as follows:

        1.      Delivery of Shares of the Company. The Shareholders agree to transfer and
                deliver to ACE, a public company, and ACE agrees to acquire 100% of the capital
                stock of the Company, from the Shareholders, as well as all the shares of one of
                the Company's affiliate entities listed below.

                                       1

        2.      Consideration for Transfer of Shares. Upon the terms and subject to the
                conditions set forth in this Agreement, ACE agrees to deliver its common shares,
                as more fully described in Article 4 below.

        3.      Publicly-Traded Entity. ACE represents and warrants that it is a publicly
                trading and fully reporting company, and has at all material times been in full
                compliance with all SEC and IRS codes and regulations. As a result of its
                business, ACE is able to acquire operating companies through acquisitions and
                mergers. ACE will assist the Company and work with the Company's legal and
                financial representatives in all phases of this process to acquire the Company.
                The process consists of the following steps:

                a.      Completing due diligence with and effecting an Agreement and
                        Plan of Exchange with ACE.

                b.      Obtaining appropriate audits and applicable regulatory approval, if any.

                c.      Raising the necessary capital, which the Company has identified as a $1.5
                        million funding, to be raised prior to, and paid to the Company at, the closing
                        of this transaction, subject to a bridge loan of $250,000 to be paid to Company
                        within two (2) business days of the full execution of this Letter of Intent.
                        This transaction shall close, pursuant to a definitive agreement approved by
                        both parties, on or before five (5) business days from the completion and
                        presentment of SEC qualified audited financial statements on the Company and its
                        affiliated leasing companies.

                d.      It is currently contemplated that substantially all of the shares issued to
                        the Company's Shareholders shall be subject to the applicable one (1) year
                        holding period and two (2) year volume restriction under Rule 144 of the
                        Securities and Exchange Commission (SEC).

                The Company agrees to provide its full and maximum cooperation in the
                accomplishment of these goals. Until the date the reorganization is fully
                accomplished, the Company will continue to operate as an independent business
                entity.

        4.      ACE's Representations.

                a.      ACE does not have outstanding and has not agreed, orally
                        or in writing, to issue any stock or securities convertible
                        or exchangeable for any shares of its stock, nor does it
                        have outstanding nor has it agreed, orally or in writing,
                        to issue any options or rights to purchase or otherwise acquire its stock.

                                       2

                b.      ACE is not subject to any obligation (contingent or otherwise) to repurchase
                        or otherwise acquire or retire any shares of its stock.

                c.      That ACE has not violated any applicable securities laws or regulations in
                        connection with the offer or sale of its securities other than violations that
                        have been, or will before the exchange contemplated herein have been, correct by
                        post-issuance filings. Furthermore, at all material times, ACE has not been
                        de-listed, there is no pending litigation, and there have been no notices of
                        late filings by the SEC.

                d.      All of the outstanding shares of ACE's capital stock are validly issued,
                        fully paid, and non-assessable.

                e.      The Shareholders will have, and upon exchange thereof pursuant to the terms
                        of this Agreement, good and marketable title to the Shares, free and clear of
                        all security interests, liens, encumbrances, or other restrictions or claims,
                        subject only to restrictions as to marketability imposed by securities laws.

                f.      Assuming that the representations herein are true and correct, neither Tampa
                        Bay Financial, Inc. or ACE have violated or will violate any applicable
                        securities laws in connection with the offer or exchange of the Shares to
                        Shareholders hereunder.

                g.      ACE has complied with all applicable SEC reporting requirements, copies of
                        the last two (2) years of which will be delivered to the Company within five (5)
                        days after the execution of this Agreement.

                h.      ACE has SEC qualified audited financial statements, copies of the last two
                        (2) years of which will be delivered to the Company within ten (10) days after
                        the execution of this Agreement.

                i.      ACE submits that it has full authority of its Boards of Directors to enter
                        into this Letter of Intent and effect the transaction set forth herein.

                j.      Furthermore, there shall be no reverse split of the Company's shares for a
                        thirty (30) day period following the execution of an Agreement and Plan of
                        Exchange between the companies; secondly, for the next two (2) years following
                        such agreement, any reverse split (or reverse splits in the aggregate) shall not
                        be greater than ten (10) for one (1).

                k.      Contemporaneously with the closing of this transaction, all present officers
                        and directors of ACE will resign, and any necessary corporate minutes and/or
                        changes to the by-laws will be completed. The Shareholders shall elect all of
                        the new directors and officers post-merger/acquisition.

                                       3

        5.      Obligation to Close. Upon funding of the bridge loan of $250,000, this
                Agreement shall be binding as to all clauses requiring closing of the Agreement
                and Plan of Exchange. Upon a finding by a Court of competent jurisdiction that
                good cause does not exist for the failure to consummate the transaction set
                forth herein, there shall result a penalty of two hundred and fifty thousand
                dollars ($250,000) from the breaching party. If the Company is found to be in
                breach, then it shall pay to ACE the penalty sum. If ACE, Tampa Bay Financial,
                or one of its assigns or agents shall be the breaching party, then ACE shall
                forfeit the $250,000 bridge loan to the Company and the note shall be deemed
                satisfied without any further action.

        6.      Exchange of Shares. Both parties have agreed to a distribution of controlling
                shares of ACE, which is allocated as follows:

                a.      Up to twenty percent (20%) to ACE and/or its assigns or designees, based on
                        the amount actually raised under the Private Placement, together with an option
                        for the full twenty percent (20%) upon delivery of the full amount due under the
                        Private Placement (of which all costs and funds raised will come from ACE
                        through the sale of its allocated shares or otherwise) after the completion of
                        the stock reverse split: and

                b.      The remaining shares shall be transferred to the designated Shareholders of
                        AeroGroup, which will represent approximately sixty percent (60%) of ACE at
                        closing. Contemporaneously with the merger/acquisition of the Company by ACE,
                        one of the affiliated leasing companies (to be determined by the Company prior
                        to closing) will also be acquired by ACE as part of the foregoing consideration.

                c.      Upon completion of the contemplated Plan of Exchange, three (3) of the
                        following airplane leasing companies controlled by Rick Wahl and Mark Daniels
                        shall immediately be acquired ACE, with the fourth having already been acquired
                        at closing.

                        1.  Genesis Capital Services, LLC
                        2.  Allied Aircraft Holdings, Inc.
                        3.  Flight Ventures, Inc.
                        4.  Jetech Leasing, Inc.

                d.      Upon the subsequent acquisition of the three (3) remaining affiliate leasing
                        companies, the designated Shareholders of AeroGroup will receive an additional
                        twenty percent (20%) ownership in ACE, which will represent an aggregate
                        ownership interest of exactly eighty percent (80%) of the then issued and
                        outstanding shares of ACE by the designated Shareholders.

                                       4

        As part of the transactions, ACE will arrange, at its sole cost and
expense (which may be reimbursed to ACE as part of the funds raised in
excess of One Million Five Hundred Thousand {US$1,500,000} under the
Private Placement) for the necessary primary funding of the Company in the
aggregate amount of One Million Five Hundred Thousand {US$1,500,000}, as
stated above.

        7.      Management. Post merger, ACE agrees to perform limited management services
                for the Company on a best efforts basis. These services include, but are not
                limited to, the following:

                a.      Procuring the services of legal counsel, acceptable to the Company, to effect
                        the transaction, at no cost to the Company.

                b.      Recruiting management and directors, if needed and approved by the directors
                        and the Shareholders of the Company.

                c.      Administrative and operational support, at no charge to the Company.

                d.      Assist in the implementation of a strategic plan for public relations and
                        dissemination of promotional materials, at no charge to the Company, to create
                        visibility and public awareness for the Company.

                There shall be no charge to the Company for these services. AeroGroup shall
                maintain direct operational control of its business and shall be entitled to no
                less than three (3) directors on the Company's Board of Directors, which shall
                be constituted of no more than five (5) directors, such that AeroGroup shall
                maintain a majority on the Board at all material times.

        8.      Further Provisions:

                a. Exclusivity. Subject to the terms of Item 4 of this document, the Company
                agrees that without the express written consent of ACE, which consent will not
                be unreasonably withheld, for a period of thirty (30) days after the date
                hereof, and thereafter so long as negotiations are progressing with ACE on a
                definitive written agreement, the Company and its Shareholders agree that they
                will not solicit, accept, enter into, negotiate or otherwise pursue any offers
                for the sale, transfer or assignment (by merger or otherwise) of the assets or
                business of the Company, the sale or issuance of any shares in the Company, or
                for employment of any of the professional personnel or any other key employees
                of its business by any other individual or entity. The proposed transaction is
                subject to the execution of a definitive written agreement satisfactory to all
                parties, which shall contain customary representations, warranties and other

                                       5

                provisions. The approval of the proposed transaction by ACE, and the receipt and
                review by ACE of additional requested due diligence information with respect to
                the Company is also a condition precedent.

                Either party may terminate this Agreement for cause upon thirty (30) days
                written notice. Cause is to be defined as including, but not limited to, a
                material breach of this Agreement or the dissatisfaction of ACE with the
                completion of its due diligence on the Company or the dissatisfaction of the
                Company with the completion of its due diligence on ACE. The termination penalty
                set forth above shall not be applicable or due if this Agreement is terminated
                for cause.

                b. Venue. Venue for any legal proceeding in connection with this Agreement shall
                be Palm Beach County, Florida. Florida law shall govern any dispute between the
                parties herein.

                c. Confidentiality. The parties may request from each other certain documents
                and other pertinent material related to the transaction including, without
                limitation, financial data, tax information, future plans and other information
                relating to the assets which the parties consider to be confidential. All of the
                confidential information shall at all times be the property of the respective
                parties, and they shall obtain no rights in any such confidential information
                they obtain, until after closing of the transaction. Except as may be required
                by applicable law(s) or as the parties may from time to time consent in writing,
                the parties shall not, at any time, disclose any confidential information, or
                any part thereof, to any person, firm, corporation, association, or other entity
                for any reason or purpose whatsoever. Except as otherwise required herein, and
                except for information that is being sold by the parties at such other time or
                times as the parties may request, the parties shall immediately return to each
                other all of their confidential information and shall not retain any copies
                thereof and shall continue to refrain from any use whatsoever of any
                confidential information. In the event either party takes any action or fails to
                take any action in contravention of this Section, that party shall indemnify and
                hold harmless the other party from any damage or claim that may arise as a
                result of such action or inaction. In addition, that party shall be entitled to
                collect from the other party all costs incurred in obtaining such
                indemnification, including all attorney and court fees. The parties shall take
                nay and all legal actions necessary to minimize any damages resulting from such
                disclosure, to retrieve such disclosed confidential information, and to return
                same to the other party upon their direction. Each party shall be responsible
                for any action or inaction in contravention of this Section by their personal
                representatives, successors and assigns.

                d. Hold Harmless. Both the Company and ACE agree to hold each other harmless on
                any act either performs other than acts of gross negligence, malfeasance, fraud,

                                       6

                theft, or as set forth in "c" above in their effort to perform under this
                Agreement. ACE and its Chairman/Chief Executive Officer asserts and indemnifies
                that ACE has no pending litigation or disputes of any kind that could ultimately
                result in litigation and will provide an Affidavit confirming the foregoing at
                or before closing. Furthermore, each of the respective parties have conducted,
                or will conduct, and are relying solely on their own independent research,
                investigation and due diligence of each other, the Company, ACE, and the merits
                of the proposed transaction set forth herein. All the parties hereto, and their
                individual representatives, agents, and officers release and hold harmless Craig
                I. Kelley, P.A. and Craig I. Kelley, Esquire, and acknowledge that he and his
                firm have provided no advice or legal opinions to either side regarding the
                merits of the transaction, or legal issues involving securities or transactional
                law. The parties herein have been advised of the recommendation to hire
                respective securities counsel to properly advise them of their rights,
                responsibilities, obligations, and ramifications pursuant to the transaction
                contemplated within this Letter of Intent.

                e. Right of First Refusal. The Shareholders and/or the Company shall have a
                right of first refusal to purchase the shares of the current shareholders of ACE
                that are parties to this Agreement, Tampa Bay Financial, or any of their agents
                or assigns at such time as they express an intent or desire to sell their shares
                of ACE, regardless of whether such shares are free-trading or restricted under
                Rule 144, or otherwise. The purchase price shall be the then existing bid trade
                price on the day of acceptance of written notice offering the shares for sale,
                The Shareholders and/or the Company shall have 24 hours from receipt of the
                aforementioned written notice of intent and offer to sell in which to exercise
                the offer and purchase any or all of the offered shares.

                f. Notice. All legal notices under this Agreement shall be sent to the following
                   parties:

               If to ACE:                 American Communications Enterprises, Inc.
                                          Attn: Carl L. Smith, C.E.O.
                                          355 Interstate Boulevard
                                          Sarasota, FL 34240
                                          941/923-1949 ~ 941/921-2821-- FAX
                                          Email Address: CSMITH@TBFCORP.NET

                                       7

               If to Company:             AeroGroup, Inc.
                                          Attn: Frederick R. WahI, C.E.O.
                                          2715 N. Sheridan Road
                                          Hangar 4, Suite 2
                                          Tulsa, OK 74115
                                          937/427-5377~ 937/427-5381-- FAX
                                          Email Address: RWAHL1965@AOL.COM

               With a copy to:            Craig I. KelIey, Esquire
                                          The Forum-- Suite 1012
                                          1655 Palm Beach Lakes Blvd.
                                          West Palm Beach, FL 33401
                                          561/684-5524 2 561/684-3773-- FAX
                                          Email Address: CRAIGKELIEY@MINDSPRING.COM

                9.      Remedies. If any party fails to abide by this Agreement, the other parties
                        will be entitled to specific performance, including immediate issuance of a
                        temporary restraining order or preliminary injunction enforcing this Agreement,
                        and to judgment for damages caused by such breach, and to any other remedies
                        provided by applicable law.

                10.     No Brokers. There are no claims for brokerage commissions, finders' fees, or
                        similar compensation in connection with the exchange based on any arrangement or
                        agreement binding upon any of the parties hereto.

                11.     Construction of Terms. Whenever the context so requires or admits, any
                        pronoun used herein may be deemed to mean the corresponding masculine, feminine
                        or neuter form thereof and the singular form of any nouns and pronouns herein be
                        deemed to mean the corresponding plural form thereof and vice versa.

                12.     Non-Assignable. This Agreement may not be assigned by either party without
                        the prior written consent thereof, which consent shall be at the sole and
                        absolute discretion of the party so requested.

                13.     Binding Effect. This Agreement shall be binding upon the parties hereto and
                        their respective successors and/or assigns.

                14.     Time is of the Essence. Time is of the essence of this Agreement.

                15.     Entire Agreement. This Agreement constitutes the entire agreement between
                        the parties hereto and shall be construed under the laws of the State of
                        Florida.

                                       8

                16.     Modification. No modification of this Agreement shall be binding unless
                        signed by all parties to this Agreement and no representation, promise, or
                        inducement not included in this Agreement shall be binding upon any party
                        hereto.

                17.     Severability. In the event that any portion of this Agreement is found to be
                        unenforceable, said clause shall be severed from the Agreement and the remainder
                        of the Agreement shall remain in full force and effect.

                18.     Facsimile and Counterparts. A facsimile copy of this Agreement and any
                        signatures thereon, shall be considered, for all purposes, as originals. For the
                        purposes of facilitating the proving of this Agreement, as herein provided and
                        for other purposes, this Agreement may be executed simultaneously in any number
                        of counterparts, each of which counterparts shall be deemed to be an original.
                        Such counterparts together shall constitute but one and the same Agreement.

                If the foregoing is in accordance with your understanding, please indicate your
                agreement with the terms of this Letter of Intent by signing in the space
                provided below.

      Dated this            day of May, 2001.

      AMERICAN COMMUNICAITONS                                 AEROGROUP, INC.
      ENTERPRISES, INC.

      By:  /s/Carl L. Smith                                   By:  /s/Frederick R. Wahl
              Carl L. Smith                                           Frederick R. Wahl
              Chairman/CEO                                            Chief Executive Officer

                                                              By: /s/ Mark Daniels
                                                                      Mark Daniels
                                                                      Vice President

      Witness:/s/ Craig I. Kelley                              Witness:                           

                                       9EXHIBIT 10.19
                                                                   -------------

           EMPLOYMENT AGREEMENT dated as of June 29, 2001, between NETWORK-1
SECURITY SOLUTIONS, INC., a Delaware corporation with its principal office
located at 1601 Trapelo Road, Reservoir Place, Waltham, MA 20451 (the
"Company"), and MURRAY FISH residing at 3 Wabanaki Way, Andover, Massachusetts
01810 (the "Executive").

           The Company desires to enter into this Agreement in order to assure
itself of the service of Executive, and Executive desires to accept employment
with the Company, upon the terms and conditions hereinafter set forth.

           NOW, THEREFORE, in consideration of the mutual covenants and
obligations hereinafter set forth, the parties agree as follows:

           SECTION 1. EMPLOYMENT. The Company hereby employs Executive, and
Executive hereby accepts employment by the Company, upon the terms and
conditions hereinafter set forth.

           SECTION 2. TERM. The employment of Executive hereunder shall be for a
period commencing on the date hereof (the "Commencement Date") and ending on the
second anniversary of the Commencement Date (the "Term") or such earlier date
upon which the employment of the Executive shall terminate in accordance with
the provisions hereof. The period commencing on the Commencement Date and ending
on the date of termination of the Executive's employment hereunder shall be
called the "Term of Employment" for Executive, and the date on which the
Executive's employment hereunder shall terminate shall be called the
"Termination Date.".

           SECTION 3. DUTIES. During the Term of Employment, Executive shall be
employed as acting President and Chief Financial Officer of the Company or such
other executive office as shall be designated by the Board of Directors
("Board"). Executive shall perform such duties as are consistent therewith as
the Board shall designate. Executive shall use his best efforts to perform well
and faithfully the foregoing duties and responsibilities.

           SECTION 4. TIME TO BE DEVOTED TO EMPLOYMENT. During the Term of
Employment, Executive shall devote all of his business time, attention and
energies to the business of the Company (except for vacations to which he is
entitled pursuant to Section 6(b) and periods of illness or incapacity). During
the Term of Employment, Executive shall not engage in any business activity
which, in the reasonable judgment of the Board, conflicts with the duties of
Executive hereunder, whether or not such activity is pursued for gain, profit or
other pecuniary advantage.
<PAGE>

           SECTION 5. COMPENSATION.

                  (a) The Company shall pay to Executive an annual base salary
(the "Base Salary") during the Term of Employment of not less than $185,000 per
annum, payable in such installments (but not less often than monthly) as is
generally the policy of the Company with respect to its executive officers,
which Base Salary shall be subject to such increases as the Board, in its sole
discretion, may from time to time determine. Executive's Base Salary and
performance shall be reviewed at least annually by the Board.

                  (b) In addition, to the Base Salary set forth in paragraph
5(a) above, during the term of employment, Executive shall be eligible to
receive incentive compensation of up to $50,000 per annum (to be distributed as
directed by the Board of Directors) based upon the Company's attainment of
certain goals to be established by the Board in consultation with Executive.

           SECTION 6. BUSINESS EXPENSES; BENEFITS.

                  (a) The Company shall reimburse Executive, in accordance with
the practice from time to time for executive officers of the Company, for all
reasonable and necessary expenses and other disbursements incurred by Executive
for or on behalf of the Company in the performance of Executive's duties
hereunder. Executive shall provide such appropriate documentation of expenses
and disbursements as may from time to time be required by the Company.

                  (b) During the Term of Employment, Executive shall be entitled
to five (5) weeks vacation per year.

                  (c) During the Term of Employment, Executive shall be entitled
to participate in the group health, life and disability insurance benefits, and
retirement plan benefits made available from time to time for its employees
generally.

           SECTION 7. INVOLUNTARY TERMINATION.

                  (a) If Executive is incapacitated or disabled (such condition
being hereinafter referred to as a "Disability") in a manner that would qualify
Executive for benefits under the disability policy of the Company (the
"Disability Policy"), the Term of Employment and employment of the Executive
under this Agreement shall cease (such termination, as well as a termination
under Section 7(b), being hereinafter referred to as an "Involuntary
Termination") and Executive shall be entitled to receive the benefits payable
under the Disability Policy and in accordance with Section 9 hereof.

                  (b) If Executive dies during the Term of Employment, the Term
of Employment and Executive's employment hereunder shall cease as of the date of
the Executive's

                                       2
<PAGE>

death and Executive shall be entitled to receive the benefits payable in
accordance with Section 9 hereof.

           SECTION 8. TERMINATION BY THE COMPANY.

                  (a) TERMINATION FOR CAUSE. The Company may terminate the Term
of Employment and the employment of the Executive hereunder at any time for
Cause (as hereinafter defined) (such termination being referred to herein as a
"Termination For Cause") by giving Executive written notice of such termination,
effective immediately upon the giving of such notice to Executive. As used in
this Agreement, "Cause" means the Executive's (a) commission of an act (i)
constituting a felony or (ii) involving fraud, moral turpitude, theft or
dishonesty which is not a felony and which materially adversely affects the
Company or could reasonably be expected to materially adversely affect the
Company, (b) repeated failure to be reasonably available to perform his duties,
which, if curable, shall not have been cured within 10 business days of written
notice thereof from the Company, (c) repeated failure to follow the lawful
directions of the Board, which, if curable, shall not have been cured within 30
business days of written notice thereof from the Company, (d) material breach of
any agreement with the Company (including any provisions of this or any
agreement between Executive and the Company) which, if curable, shall not have
been cured within 30 business days of written notice thereof from the Company or
(e) voluntary resignation (except as set forth in paragraph 9(d) hereof).

                  (b) TERMINATION OTHER THAN FOR CAUSE. The Company may
terminate this Agreement and the employment of Executive other than for cause as
defined in Section 8(a) above (such termination shall be defined as a
"Termination Other Than for Cause") by giving Executive written notice of such
termination, which notice shall be effective upon the giving of such notice or
such later date set forth therein.

           SECTION 9. EFFECT OF TERMINATION.

                  (a) Upon the termination of the Term of Employment and
Executive's employment hereunder due to Termination for Cause (as defined in
Section 8(a) above), neither Executive nor his beneficiary or estate shall have
any further rights or claims against the Company under this Agreement, except to
receive (i) the unpaid portion, if any, of the Base Salary provided for in
Section 5(a), computed on a pro rata basis to the Termination Date (based on the
actual number of days elapsed over the actual number of days elapsed over the
year in which such termination occurs), (ii) any unpaid accrued benefits of
Executive, (iii) reimbursement for any expenses for which Executive shall not
have been reimbursed as provided in Section 6(a), and (iv) Executive's rights
under the vested portion of any options issued to Executive by the Company (the
"Options").

                  (b) Upon the termination of Executive's employment hereunder
due to an Involuntary Termination, neither Executive nor his beneficiary or
estate shall have any further rights or claims against the Company under this
Agreement except the right to receive (i) the amounts set forth in Section 9(a),
and (ii) the vesting of all of the Options that would have vested in

                                       3
<PAGE>

the year of Involuntary Termination and one-half of the Options that would have
vested in the year following the year of Involuntary Termination.

                  (c) Upon the termination of Executive's employment upon a
Termination Other Than for Cause (as defined in Section 8(b) above), neither
Executive nor his beneficiary nor his estate shall have any rights or claims
against the Company except to receive (i) the amounts set forth in 9(b)
(including Options), and (ii) the lesser of (A) one year's Base Salary as in
effect at the time of the Termination Other Than for Cause or (B) Executive's
Base Salary for the balance of the term of this Agreement to be paid in total
upon termination. Company will continue all health, medical and other insurance
programs during termination period as defined in (ii) above.

                  (d) For purposes of this Section 9, if Executive is asked to
assume any duties or the material reduction of duties, either of which is
substantially inconsistent with the position of Chief Financial Officer (except
for his services as acting President) of the Company, Executive, upon 30 days
notice to the Board of Directors setting forth in reasonable detail the respects
in which Executive believes such assignment or duties are substantially
inconsistent with the level of Executive's position, may resign from the Company
and such resignation will be treated as a Termination Other Than For Cause
pursuant to this Section 9.

           SECTION 10. INSURANCE. The Company may, for its own benefit, in its
sole discretion, maintain "key-man" life and disability insurance policies
covering Executive. Executive will cooperate with the Company and provide such
information or other assistance as the Company may reasonably request in
connection with the Company's obtaining and maintaining such policies.

           SECTION 11. DISCLOSURE OF INFORMATION. Executive will not, either
during the Term of Employment or at any time thereafter, divulge, publish,
communicate, furnish or make accessible to anyone any knowledge or information
with respect to the Company's confidential, secret or proprietary products,
technology, methods, plans, materials and processes, or with respect to any
other confidential, secret or proprietary aspects of the business, activities or
products of the Company including, without limitation, (a) software programs,
source code, object code, product development information, research and
development projects or other technical data pertaining to the Company's
products (whether or not subject to patent, trademark or copyright protection)
or (b) any customer or client lists, telephone leads, prospects lists, sales
figures and forecasts, purchase costs, financial projections, advertising and
marketing plans and business strategies and plans; except as such items set
forth in clauses (a) and (b) above may already be in the public domain through
no fault of Employee (all of the foregoing items set forth in clauses (a) and
(b) being referred to herein collectively as "Confidential Property"). Upon the
termination of the Term of Employment, Executive shall return to the Company all
property (including Confidential Property) of the Company (or any subsidiary or
affiliate thereof) then in the possession of Executive and all books, records,
computer tapes or discs and all other material containing non-public information
concerning the business, clients or affairs of the Company or any subsidiary or
affiliate thereof.

           SECTION 12. RIGHT TO INVENTIONS. Executive shall promptly disclose,
grant and assign to the Company for its sole use and benefit any and all marks,
designs, logos, inventions,

                                       4
<PAGE>

improvements, technical information and suggestions relating in any way to the
business conducted by the Company, which he may develop or which may be acquired
by Executive during the Term of Employment (whether or not during usual working
hours), together with all trademarks, patent applications, letters, patent,
copyrights and reissues thereof that may at any time be granted for or upon any
such mark, design, logo, invention, improvement or technical information
(collectively, "Inventions"). In connection therewith, Executive shall (at the
Company's sole cost and expense) take all actions reasonably necessary or
desirable to assign and/or confirm the assignment of any Invention to the
Company.

           SECTION 13. RESTRICTIVE COVENANT.

                  (a) The Company is in the business of developing, marketing,
licensing and supporting network software security products (the "Business").
Executive acknowledges and recognizes that the Business has been conducted, and
sales of its products have been made, throughout the United States, and
Executive further acknowledges and recognizes the highly competitive nature of
the industry in which the Business is involved. Accordingly, in consideration of
the premises contained herein, the consideration to be received hereunder, stock
options to be granted Executive, Executive shall not, during the Non-Competition
Period (as defined below): (i) directly or indirectly engage, whether or not
such engagement shall be as a partner, stockholder, affiliate or other
participant, in any Competitive Business (as defined below), or represent in any
way any Competitive Business, whether or not such engagement or representation
shall be for profit, (ii) interfere with, disrupt or attempt to disrupt the
relationship, contractual or otherwise, between the Company and any other person
or entity, including, without limitation, any customer, supplier, employee or
consultant of the Company, (iii) induce any employee of the Company to terminate
his employment with the Company or to engage in any Competitive Business in any
manner described in the foregoing clause (i) (as well as an officer or director
of any Competitive Business), or (iv) affirmatively assist or induce any other
person or entity to engage in any Competitive Business in any manner described
in the foregoing clause (i) (as well as an officer or director of any
Competitive Business). Anything contained in this Section 13 to the contrary
notwithstanding, an investment by Executive in any publicly traded company in
which Executive and his affiliates exercise no operational or strategic control
and which constitutes less than 5% of the capital of such entity shall not
constitute a breach of this Section 13.

                  (b) As used herein, "Non-Competition Period" shall mean the
period commencing on the date hereof and terminating on the Termination Date;
provided, however, that if the Term of Employment shall have been terminated
pursuant to Section 8 (a), then "Non-Competition Period" shall mean the period
commencing on the date hereof and ending on the second anniversary of the
Termination Date. "Competitive Business" shall mean any business in any State of
the United States engaged in the development, marketing and licensing of network
software security products, or in any other line of business in which the
Company was engaged or had a formal plan to enter as of the Termination Date.

                  (c) Executive understands that the foregoing restrictions may
limit his ability to earn a livelihood in a business similar to the business of
the Company, but he nevertheless

                                       5
<PAGE>

believes that he has received and will receive sufficient consideration and
other benefits as an employee of the Company and as otherwise provided hereunder
and pursuant to other agreements between the Company and Executive to justify
clearly such restrictions which, in any event (given his education, skills and
ability), Executive does not believe would prevent him from earning a living.

           SECTION 14. ENFORCEMENT; SEVERABILITY; ETC. It is the desire and
intent of the parties that the provisions of this Agreement shall be enforced to
the fullest extent permissible under the laws and public policies applied in
each jurisdiction in which enforcement is sought. Accordingly, if any particular
provision of this Agreement shall be adjudicated to be invalid or unenforceable,
such provision shall be deemed amended to (a) delete therefrom the portion thus
adjudicated to be invalid or unenforceable, such deletion to apply only with
respect to the operation of such provision in the particular jurisdiction in
which such adjudication is made or (b) otherwise to render it enforceable in
such jurisdiction.

           SECTION 15. REMEDIES. Executive acknowledges and understands that the
provisions of this Agreement are of a special and unique nature, the loss of
which cannot be adequately compensated for in damages by an action at law, and
that the breach or threatened breach of the provisions of this Agreement would
cause the Company irreparable harm. In the event of a breach or threatened
breach by Executive of the provisions of this Agreement, the Company shall be
entitled to an injunction restraining him from such breach. Nothing contained in
this Agreement shall be construed as prohibiting the Company from or limiting
the Company in pursuing any other remedies available for any breach or
threatened breach of this Agreement.

           SECTION 16. NOTICES. All notices, claims, certificates, requests,
demands and other communications hereunder shall be in writing and shall be
deemed to have been duly given and delivered if personally delivered or if sent
by a nationally-recognized overnight courier, by telecopy, or by registered or
certified mail, return receipt requested and postage prepaid, addressed as
follows:

if to the Company, to:           Network-1 Security Solutions, Inc.
                                 1601 Trapelo Road
                                 Waltham, Massachusetts 02451
                                 Telecopier: (781) 466-6309
                                 Telephone:  (781) 522-3400

with copies to:                  Olshan, Grundman Frome Rosenzweig & Wolosky LLP
                                 505 Park Avenue, 16th Floor
                                 New York, New York 10022
                                 Telecopier: (212) 980-7177
                                 Telephone: (212) 451-2306
                                 Attention:     Sam Schwartz, Esq.

                                       6
<PAGE>

if to Executive, to:             Murray P. Fish
                                 3 Wabanaki Way
                                 Andover, Massachusetts 01810

or to such other address as the party to whom notice is to be given may have
furnished to the other party or parties in writing in accordance herewith. Any
such notice or communication shall be deemed to have been received (a) in the
case of personal delivery, on the date of such delivery, (b) in the case of
nationally-recognized overnight courier, on the next business day after the date
when sent, (c) in the case of telecopy transmission, when received, and (d) in
the case of mailing, on the third business day following that on which the piece
of mail containing such communication is posted.

           SECTION 17. BINDING AGREEMENT; BENEFIT. The provisions of this
Agreement will be binding upon, and will inure to the benefit of, the respective
heirs, legal representatives, successors and assigns of the parties.

           SECTION 18. GOVERNING LAW. This Agreement will be governed by,
construed and enforced in accordance with, the laws of the State of
Massachusetts (without giving effect to principles of conflicts of laws).

           SECTION 19. WAIVER OF BREACH. The waiver by either party of a breach
of any provision of this Agreement must be in writing and shall not operate or
be construed as a waiver of any other breach.

           SECTION 20. ENTIRE AGREEMENT; AMENDMENTS. This Agreement contains the
entire agreement between the parties with respect to the subject matter hereof
and supersedes all prior agreements or understandings between the parties with
respect thereto. This Agreement may be amended only by an agreement in writing
signed by the parties.

           SECTION 21. HEADINGS. The section headings contained in this
Agreement are for reference purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.

           SECTION 22. ASSIGNMENT. This Agreement is personal in its nature and
the parties shall not, without the consent of the other, assign or transfer this
Agreement or any rights or obligations hereunder; provided, however, that the
Company may assign this Agreement to any of its subsidiaries and affiliates.

           SECTION 23. GENDER. Any reference to the masculine gender shall be
deemed to include the feminine and neuter genders unless the context otherwise
requires.

                                       7
<PAGE>

           SECTION 24. COUNTERPARTS. This Agreement may be executed in
counterparts, and each such counterpart shall be deemed to be an original
instrument, but all such counterparts together shall constitute but one
agreement.

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

                                     NETWORK-1 SECURITY SOLUTIONS, INC.

                                     By: /s/ Joseph Donohue
                                         ------------------------------
                                         Joseph Donohue, VP engineering

                                        /s/ Murray P. Fish
                                         ------------------------------
                                        Murray P. Fish

                                       8

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