Document:

TOUCHTUNES MUSIC CORPORATION
                        2000 LONG - TERM INCENTIVE PLAN

     1.   Definitions.  In this Plan, except where the context otherwise
indicates, the following definitions shall apply:

          1.1  "Affiliate" means a corporation, partnership, business trust,
limited liability company or other form of business organization at least a
majority of the total combined voting power of all classes of stock or other
equity interests of which is owned by the Company, either directly or through
one or more other Affiliates.

          1.2  "Agreement" means a written agreement evidencing an Award.

          1.3  "Award" means a grant of an Option, Performance Award,
Restricted Stock, or Incentive Shares.

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

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

          1.6  "Committee" means such committee(s), subcommittee(s) or
person(s) appointed by the Board to administer this Plan or to make and/or
administer specific Awards hereunder.  If no such appointment is in effect at
any time, "Committee" shall mean the Board.

          1.7  "Common Stock" means the Class A voting common stock, par value
$.001 per share, of the Company.

          1.8  "Company" means TouchTunes Music Corporation, and any successor
thereto.

          1.9  "Date of Exercise" means the date on which the Company receives
notice of the exercise of an Option in accordance with the terms of Section
7.1.

          1.10 "Date of Grant" means the date on which an Option is granted.

          1.11 "Eligible Person" means any person who is (a) an Employee (b)
hired to be an Employee, (c) a Non-Employee Director or (d) a consultant or
independent contractor to the Company or an Affiliate and who is determined by
the Committee to render key services to the Company or an Affiliate.

          1.12 "Employee" means any person determined by the Committee to be an
employee of the Company or an Affiliate.

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

          1.14 "Fair Market Value" means an amount equal to the then fair
market value of a Share as determined by the Committee pursuant to a reasonable
method adopted in good faith for such purpose, or, unless otherwise determined
by the Committee, if the Shares are traded on a securities exchange or
automated dealer quotation system, fair market value shall be the last sale
price for a Share, as of the relevant date, on such securities exchange or

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automated dealer quotation system as reported by such source as the Committee
may select.

          1.15 "Incentive Shares" means an award providing for the contingent
grant of Shares pursuant to the provisions of Section 9.

          1.16 "Incentive Stock Option" means an Option granted under this Plan
that the Company designates as an incentive stock option under Section 422 of
the Code.

          1.17 "Non-Employee Director" means any member of the Company's or an
Affiliate's Board of Directors who is not an Employee.

          1.18 "Nonstatutory Stock Option" means an Option granted under this
Plan that is not an Incentive Stock Option.

          1.19 "Option" means an option to purchase Shares granted under this
Plan in accordance with the terms of Section 6.

          1.20 "Option Period" means the period during which an Option may be
exercised.

          1.21 "Option Price" means the price per Share at which an Option may
be exercised.

          1.22 "Participant" means an Eligible Person who has received an Award
hereunder.

          1.23 "Performance Award" means a performance award granted under the
Plan in accordance with the terms of Section 10.

          1.24 "Performance Goals" means performance goals established by the
Committee which may be based on earnings or earnings growth, sales, return on
assets, cash flow, total shareholder return, equity or investment, regulatory
compliance, satisfactory internal or external audits, improvement of financial
ratings, achievement of balance sheet or income statement objectives, or any
other objective goals established by the Committee, and may be absolute in
their terms or measured against or in relationship to other companies
comparably, similarly or otherwise situated.  Such performance standards may be
particular to an Eligible Person or the department, branch, Affiliate or other
division in which he or she works, or may be based on the performance of the
Company or the Company and its Affiliates generally, and may cover such period
as may be specified by the Committee.

          1.25 "Plan" means the TouchTunes Music Corporation 2000 Long-Term
Incentive Plan, as amended from time to time.

          1.26 "Restricted Stock" means Shares awarded under the Plan pursuant
to the provisions of Section 8.

          1.27 "Section 422 Employee" means any person who is determined by the
Committee to be an employee of the Company or a parent or subsidiary
corporation of the Company as defined in Section 424 of the Code (but
substituting "the Company" for "employer corporation").

          1.28 "Share" means a share of Common Stock.

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          1.29 "Ten-Percent Stockholder" means a Participant who (applying the
rules of Section 424(d) of the Code) owns stock possessing more than 10% of the
total combined voting power of all classes of stock of the Company or an
Affiliate.

     2.   Purpose.  This Plan is intended to assist the Company and its
Affiliates in attracting and retaining Eligible Persons of outstanding ability
and to promote the identification of their interests with those of the
stockholders of the Company and its Affiliates.

     3.   Administration.  The Committee shall administer this Plan and shall
have plenary authority, in its discretion, to grant Options, Restricted Stock,
Incentive Shares and Performance Awards to Eligible Persons, subject to the
provisions of this Plan.  The Committee shall have plenary authority and
discretion, subject to the provisions of this Plan, to determine the Eligible
Persons to whom Awards shall be granted, the terms (which terms need not be
identical) of all Awards, including without limitation the Option Price of
Options, the time or times at which Awards are made, the number of Shares
covered by Awards, whether an Option shall be an Incentive Stock Option or a
Nonstatutory Stock Option, any exceptions to non-transferability, any
Performance Goals applicable to Awards, any provisions relating to vesting, and
the period during which Options may be exercised and Restricted Stock shall be
subject to restrictions.  In making these determinations, the Committee may
take into account the nature of the services rendered or to be rendered by the
Award recipients, their present and potential contributions to the success of
the Company and its Affiliates, and such other factors as the Committee in its
discretion shall deem relevant.  Subject to the provisions of the Plan, the
Committee shall have plenary authority to interpret the Plan, prescribe, amend
and rescind rules and regulations relating to it, and make all other
determinations deemed necessary or advisable for the administration of this
Plan.  The determinations of the Committee on the matters referred to in this
Section 3 shall be binding and final.

     4.   Eligibility.  Options, Restricted Stock, Incentive Shares and
Performance Awards may be granted only to Eligible Persons; provided, however,
that Incentive Stock Options may not be granted to Eligible Persons who are not
Employees.

     5.   Stock Subject to Plan.

          5.1  Subject to adjustment as provided in Section 11, (a) the maximum
number of Shares that may be issued under this Plan is 7,000,000 Shares plus an
additional number each year equal to fifteen percent (15%) (or such lesser
number as approved by the Board) of any Shares newly issued by the Company
during such year (other than pursuant to a capital adjustment described in
Section 11), and (b) the maximum number of Shares with respect to which an
Employee may be granted Options under this Plan during its term is 3,000,000
Shares.  Notwithstanding the foregoing, subject to adjustment as provided in
Section 11, Incentive Stock Options may not be granted under the Plan with
respect to more than 15,000,000 Shares.

          5.2  If an Option expires or terminates for any reason without having
been fully exercised, if Shares of Restricted Stock are forfeited or if Shares
covered by an Incentive Share Award or Performance Award are not issued or are
forfeited, the unissued or forfeited Shares that had been subject to the Award
shall become available for the grant of additional Awards.  In no event shall

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Shares which, under this Plan, are authorized to be used in payment of any
Incentive Shares or Performance Awards be deemed to be unavailable for purposes
of the Plan until such Shares have been issued in payment of such Awards in
accordance with the provisions of Sections 9 and 10.

     6.   Options.

          6.1  Options granted under this Plan to Eligible Persons shall be
either Incentive Stock Options or Nonstatutory Stock Options, as designated by
the Committee; provided, however, that Incentive Stock Options may not be
granted to Eligible Persons who are not Section 422 Employees.  Each Option
granted under this Plan shall be clearly identified either as a Nonstatutory
Stock Option or an Incentive Stock Option and shall be evidenced by an
Agreement that specifies the terms and conditions of the grant.  Options shall
be subject to the terms and conditions set forth in this Section 6 and such
other terms and conditions not inconsistent with this Plan as the Committee may
specify.

          6.2  The price per share of Common Stock at which an Incentive Stock
Option under this Plan may be exercised shall not be less than one hundred
percent (100%) of the Fair Market Value of the Common Stock on the Date of
Grant.  Notwithstanding the foregoing, in the case of an Incentive Stock Option
granted to a Section 422 Employee who, at the time of grant, is a Ten Percent
Shareholder, the exercise price per share shall not be less than one hundred
and ten percent (110%) of the Fair Market Value of the Common Stock on the date
on which the Option is granted.

          6.3  The Option Period shall be determined by the Committee and
specifically set forth in the Agreement; provided, however, that an Option
shall not be exercisable after ten years (five years in the case of an
Incentive Stock Option granted to a Ten-Percent Stockholder) from its Date of
Grant.

          6.4  The Committee, in its discretion, may provide in an Agreement
for the right of a Participant to surrender to the Company an Option (or a
portion thereof) that has become exercisable and to receive upon such
surrender, without any payment to the Company (other than required tax
withholding amounts) that number of Shares (equal to the highest whole number
of Shares) having an aggregate fair market value as of the date of surrender
equal to that number of Shares subject to the Option (or portion thereof) being
surrendered multiplied by an amount equal to the excess of (i) the Fair Market
Value on the date of surrender over (ii) the Option Price, plus an amount of
cash equal to the fair market value of any fractional Share to which the
Participant would be entitled but for the parenthetical above relating to whole
number of Shares.  Any such surrender shall be treated as the exercise of the
Option (or portion thereof).

     7.   Exercise of Options.

          7.1  An Option may, subject to the terms of the applicable Agreement
under which it was granted, be exercised in whole or in part by the delivery to
the Company of written notice of the exercise, in such form as the Committee
may prescribe, accompanied, in the case of an Option, by (a) a full payment for
the Shares with respect to which the Option is exercised or (b) irrevocable
instructions to a broker to deliver promptly to the Company cash equal to the
exercise price of the Option.  To the extent provided in the applicable Option

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Agreement, payment may be made in whole or in part by delivery (including
constructive delivery) of Shares (provided that such Shares, if acquired
pursuant to an option granted hereunder or under any other plan maintained by
the Company or any Affiliate, have been held by the Participant for at least
six (6) months) valued at Fair Market Value on the Date of Exercise or by
delivery of a promissory note as provided in Section 7.2 hereof.

          7.2  To the extent provided in an Agreement and permitted by
applicable law, the Committee may accept as partial payment of the Option Price
a promissory note executed by the Participant evidencing his or her obligation
to make future cash payment thereof.  Promissory notes made pursuant to this
Section 7.2 shall be payable upon such terms as may be determined by the
Committee, shall be secured by a pledge of the Shares received upon exercise of
the Option, or other securities the Committee may deem to be acceptable for
such purposes, and shall bear interest at a rate fixed by the Committee.

     8.   Restricted Stock Awards.

          8.1  Restricted Stock awards under this Plan shall consist of Shares
that are restricted as to transfer, subject to forfeiture, and subject to such
other terms and conditions as may be determined by the Committee.  Such terms
and conditions may provide, in the discretion of the Committee, for the lapse
of such transfer restrictions or forfeiture provisions to be contingent upon
the achievement of one or more specified Performance Goals.

          8.2  Restricted Stock awards under this Plan shall be evidenced by
Agreements specifying the terms and conditions of the Award.  Each Agreement
evidencing an Award of Restricted Stock shall contain the following:

               (a)  prohibitions against the sale, assignment, transfer,
exchange, pledge, hypothecation, or other encumbrance of (i) the Shares awarded
as Restricted Stock, (ii) the right to vote the Shares, and (iii) the right to
receive dividends thereon, in each case during, the restriction period
applicable to the Shares; provided, however, that the Participant shall have
all the other rights of a stockholder including without limitation the right to
receive dividends and the right to vote the Shares;

               (b)  a requirement that each certificate representing Shares of
Restricted Stock shall be deposited with the Company, or its designee, and
shall bear the following legend:

               "This certificate and the shares of stock represented
               hereby are subject to the terms and conditions
               (including the risks of forfeiture and restrictions
               against transfer) contained in the TouchTunes Music
               Corporation 2000 Long-Term Incentive Plan, and an
               Agreement entered into between the registered owner
               and TouchTunes Music Corporation. Release from such
               terms and conditions shall be made only in accordance
               with the provisions of this Plan and the Agreement, a
               copy of each of which is on file in the office of the
               Secretary of TouchTunes Music Corporation."

               (c)  the terms and conditions upon which any restrictions
applicable to Shares of Restricted Stock shall lapse and new certificates free

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of the foregoing legend shall be issued to the Participant or the Participant's
legal representative; and

               (d)  such other terms, conditions and restrictions as the
Committee in its discretion may specify, including without limitation terms
that condition the lapse of forfeiture provisions and transfer restrictions
upon the achievement of one or more specified Performance Goals.

     9.   Incentive Share Awards.  Incentive Shares awarded under this Plan
shall be evidenced by an Agreement specifying the terms and conditions of such
Award.  Incentive Share Awards shall provide for the issuance of Shares to a
Participant at such times and subject to such terms and conditions as
determined by the Committee, including without limitation terms that condition
the issuance of Shares upon the achievement of one or more specified
Performance Goals.

     10.  Performance Awards.  Performance Awards granted under this Plan shall
be evidenced by an Agreement specifying the terms and conditions of such Award.
Performance Awards shall become payable on account of attainment of one or more
specified Performance Goals.  Performance Awards  may be paid by the delivery
of Common Stock or cash, or any combination of Common Stock and cash, as
specified in the Agreement.  If a Performance Award is paid in cash, the Award
shall be deemed, for purposes of Section 5.1 hereof, to cover a number of
shares of Common Stock equal to the quotient obtained by dividing the dollar
amount of the Award payment by the Fair Market Value of a Share as of the date
of payment, rounded to the next highest whole number.

     11.  Capital Adjustments.  In the event of any change in the outstanding
Common Stock by reason of any stock dividend, split-up, recapitalization,
reclassification, combination or exchange of shares, merger, consolidation,
liquidation or the like, the Committee may, in its discretion, provide for a
substitution for or adjustment in (a) the number and class of Shares subject to
outstanding Options, and Awards of Restricted Stock, Incentive Shares or
Performance Awards, (b) the Option Price of Options, (c) the aggregate number
and class of Shares for which Awards thereafter may be made under this Plan,
(d) the maximum number of Shares with respect to which an Employee may be
granted Options during the period specified in Section 5.1(b) and (e) the
maximum number of Shares with respect to which Incentive Stock Options may be
granted.

     12.  Termination or Amendment.  The Board may amend, alter or terminate
this Plan in any respect at any time; provided, however, that, after this Plan
has been approved by the stockholders of the Company, no amendment, alteration
or termination of this Plan shall be made by the Board without approval of (a)
the Company's stockholders to the extent stockholder approval of the amendment
is required by applicable law or regulations or the requirements of the
principal exchange or interdealer quotation system on which the Common Stock is
listed or quoted, if any, and (b) each affected Participant if such amendment,
alteration or termination would adversely affect such Participant's rights or
obligations under any Award made prior to the date of such amendment,
alteration or termination.

     13.  Modification, Extension, Renewal, Substitution.

          13.1 The Committee may modify, extend or renew outstanding Options,
or accept the surrender of outstanding Options granted under this Plan or

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options granted under any other plan of the Company or an Affiliate (to the
extent not theretofore exercised), and authorize the granting of new Options
pursuant to this Plan in substitution therefor.  Any substituted Options may
specify a lower exercise price than the surrendered options, a longer term than
the surrendered options, or have any other provisions that are authorized by
this Plan.  Subject to the terms and conditions of this Plan, the Committee may
modify the terms of any outstanding Awards.  Notwithstanding the foregoing,
however, no modification of an Award shall, without the consent of the
Participant, alter or impair any of the Participant's rights or obligations
under such Award.

          13.2 Anything contained herein to the contrary notwithstanding,
Options, Restricted Stock, Incentive Shares and Performance Awards may, at the
discretion of the Committee, be granted under this Plan in substitution for
options and such other awards covering capital stock of another corporation
which is merged into, consolidated with, or all or a substantial portion of the
property or stock of which is acquired by, the Company or one of its
Affiliates.  The terms and conditions of the substitute Awards so granted may
vary from the terms and conditions set forth in this Plan to such extent as the
Committee may deem appropriate in order to conform, in whole or part, to the
provisions of the awards in substitution for which they are granted.  Such
substitute Options granted hereunder shall not be counted toward the Share
limit imposed by Section 5.1(b), except to the extent it is determined by the
Committee that counting such Options is required in order for Options hereunder
to be eligible to qualify as "performance-based compensation" within the
meaning of Section 162(m) of the Code.

     14.  Effectiveness of this Plan.  This Plan and any amendments hereto
requiring stockholder approval pursuant to Section 12 are subject to approval
by vote of the stockholders of the Company at the next annual or special
meeting of stockholders following adoption by the Board.  Subject to such
stockholder approval, this Plan and any amendments hereto are effective on the
date on which they are adopted by the Board.

     15.  Withholding.  The Company's obligation to deliver Shares or pay any
amount pursuant to the terms of any Award hereunder shall be subject to
satisfaction of applicable federal, state and local tax withholding
requirements.  To the extent provided in the applicable Agreement and in
accordance with rules prescribed by the Committee, a Participant may satisfy
any such withholding tax obligation by any of the following means or by a
combination of such means:  (a) tendering a cash payment, (b) authorizing the
Company to withhold Shares otherwise issuable to the Participant, or (c)
delivering to the Company already-owned and unencumbered Shares.

     16.  Terms of this Plan.  Unless sooner terminated by the Board pursuant
to Section 12, this Plan shall terminate on May 1, 2010, and no Awards may be
granted or awarded after such date.  The termination of this Plan shall not
affect the validity of any Award outstanding on the date of termination.

     17.  Indemnification of Committee.  In addition to such other rights of
indemnification as they may have as Directors or as members of the Committee,
the members of the Committee shall be indemnified by the Company against all
reasonable expenses, including attorneys' fees, actually and reasonably
incurred in connection with the defense of any action, suit or proceeding, or
in connection with any appeal therein, to which they or any of them may be a
party by reason of any action taken or failure to act under or in connection

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with this Plan or any Option, Restricted Stock, Incentive Shares or Performance
Awards granted hereunder, and against all amounts reasonably paid by them in
settlement thereof or paid by them in satisfaction of a judgment in any such
action, suit or proceeding, if such members acted in good faith and in a manner
which they believed to be in, and not opposed to, the best interests of the
Company.

     18.  General Provisions.

          18.1 The establishment of this Plan shall not confer upon any
Eligible Person any legal or equitable right against the Company, any Affiliate
or the Committee, except as expressly provided in this Plan.

          18.2 This Plan does not constitute inducement or consideration for
the employment or service of any Eligible Person, nor is it a contract between
the Company or any Affiliate and any Eligible Person.  Participation in this
Plan shall not give a an Eligible Person any right to be retained in the
service of the Company or any Affiliate.

          18.3 Neither the adoption of this Plan nor its submission to the
stockholders, shall be taken to impose any limitations on the powers of the
Company or its Affiliates to issue, grant, or assume options, warrants, rights,
or restricted stock, or other awards otherwise than under this Plan, or to
adopt other stock option, restricted stock, or other plans or to impose any
requirement of stockholder approval upon the same.

          18.4 Awards hereunder shall not be subject to the claims of creditors
and may not, in any way, be assigned, alienated or encumbered except to the
extent provided in an Agreement.

          18.5 This Plan shall be governed, construed and administered in
accordance with the laws of the State of New York.

          18.6 Section references herein are to sections of this Plan unless
otherwise indicated.

          18.7 The Committee may require each person acquiring Shares pursuant
to Awards hereunder to represent to and agree with the Company in writing that
such person is acquiring the Shares without a view to distribution thereof.
The certificates for such Shares may include any legend which the Committee
deems appropriate to reflect any restrictions on transfer.  All certificates
for Shares issued pursuant to this Plan shall be subject to such stock transfer
orders and other restrictions as the Committee may deem advisable under the
rules, regulations and other requirements of the Securities and Exchange
Commission, any stock exchange upon which the Common Stock is then listed or
interdealer quotation system upon which the Common Stock is then quoted, and
any applicable federal or state securities laws.  The Committee may place a
legend or legends on any such certificates to make appropriate reference to
such restrictions.

          18.8 The Company shall not be required to issue any certificate or
certificates for Shares with respect to Awards under this Plan, or record any
person as a holder of record of such Shares, without obtaining, to the complete
satisfaction of the Committee, the approval of all regulatory bodies deemed
necessary by the Committee, and without complying to the Board's or Committee's
complete satisfaction, with all rules and regulations, under federal, state or
local law deemed applicable by the Committee.

                                       8EXHIBIT 10.13

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT  AGREEMENT,  dated as of the 1st day of February,  2000
(the  "AGREEMENT"),  is by and between USA DIGITAL,  INC., a Nevada  corporation
(the "COMPANY"), and PETER J. LYONS, an individual (the "EXECUTIVE").

                                   WITNESSETH:

         WHEREAS,  the Company is  presently  engaged in the  telecommunications
industry;

         WHEREAS, Executive has extensive experience in this area;

         WHEREAS, the Company wishes to employ Executive for the period provided
in this Agreement and Executive is willing to serve in the employ of the Company
for such period upon the terms and conditions hereinafter set forth.

         NOW  THEREFORE,   in  consideration  of  the  mutual  covenants  herein
contained, the parties, intending to be legally bound, hereby agree as follows:

1.       EMPLOYMENT

         The Company  hereby  employs  Executive  upon the terms and  conditions
herein  contained,  and Executive  hereby  accepts such  employment for the term
described  below.  Executive  is and shall be  employed  in the  capacity of the
Company's  Chief Executive  Officer,  and shall perform the duties and functions
customarily performed by the Chief Executive Officer of a corporation during the
term of this  Agreement and shall have such other duties,  responsibilities  and
authority  as are  assigned to him by the Board of  Directors  of the Company as
long as such additional  duties,  responsibilities  and authority are consistent
with Executive's  position and level of authority as the Chief Executive Officer
of the Company. Executive shall report directly to the Board of Directors of the
Company.  Executive  shall  perform his duties and  functions  from the Orlando,
Florida area during the term of this Agreement or until in his own best judgment
and at his sole discretion he decides to relocate.

         Throughout the term of this Agreement,  Executive shall devote his best
efforts and  substantially all of his business time and services to the business
and affairs of the Company.

2.       TERM OF AGREEMENT

         The initial  term of  employment  under this  Agreement  shall be for a
period of five (5) years beginning on February 1, 2000 (the  "EFFECTIVE  DATE").
After the expiration of such initial  employment period, the term of Executive's
employment  hereunder shall  automatically be extended without further action by
the parties for successive  one (1) year renewal terms,  provided that if either
party gives the other party at least thirty (30) days' advance written notice of
his or its

<PAGE>

intention to not renew this  Agreement  for an  additional  term,  the Agreement
shall terminate upon the expiration of the then current term.

         Notwithstanding  the  foregoing,  the  Company  shall  be  entitled  to
terminate this Agreement immediately, subject to a continuing obligation to make
any payments required under Section 5 below, if Executive:  (i) becomes disabled
as  described  in Section  5(b),  (ii) is  terminated  for Cause,  as defined in
Section 5(c), or (iii) voluntarily  terminates his employment before the current
term of this Agreement expires, as described in Section 5(d).

3.       SALARY

         During the term of this Agreement, for all services rendered hereunder,
Executive shall receive a base salary ("Base Salary") at a rate of not less than
One Hundred Sixty Thousand and No/100 Dollars  ($160,000.00) per annum. The Base
Salary shall be payable in equal  installments  in accordance with the Company's
payroll  practices but not less than once per month. The Compensation  Committee
of the Board shall review this base salary at annual  intervals,  and may adjust
Executive's  annual base salary upward from time to time if the Committee  deems
such adjustment to be appropriate.

4.       ADDITIONAL COMPENSATION AND BENEFITS

         Executive  shall  receive the  following  additional  compensation  and
welfare and fringe benefits:

         (A) SIGNING BONUS OPTIONS.  As of the Effective Date of this Agreement,
Executive  shall be granted  nonstatutory  stock  options  ("Bonus  Options") to
purchase up to 100,000 shares of the Company's common stock at an exercise price
of $3.50 per share, which such Bonus Options shall be exercisable as of the date
hereof.  Such Bonus Options shall be subject to the  provisions set forth in the
stock option agreement attached hereto as EXHIBIT A.

         (B)  EXECUTIVE  STOCK  OPTIONS.  As  of  the  Effective  Date  of  this
Agreement,  Executive shall be granted  nonstatutory  stock options  ("Executive
Options") to purchase up to 500,000 shares of the Company's  common stock at the
exercise  prices set forth in, and subject to the provisions of the stock option
agreement  attached  hereto as EXHIBIT  B.  During  the  remaining  term of this
Agreement,  any additional stock option awards shall be at the discretion of the
Compensation Committee of the Company's Board.

         (C) MEDICAL INSURANCE.  The Company shall provide Executive with health
insurance  coverage no less favorable than that from time to time made available
to other key employees.

         (D)  VACATION.  Executive  shall  be  entitled  to three  weeks  annual
vacation  leave during the term of this  Agreement  and any  extension  thereof,
prorated for partial years.  Vacation shall be scheduled at reasonable times not
in conflict with Executive's duties hereunder.

                                      -2-
<PAGE>

         (E) BUSINESS  EXPENSES.  The Company shall reimburse  Executive for all
reasonable  expenses he incurs in promoting  the Company's  business,  including
expenses for travel,  entertainment  of business  associates  and similar items,
upon  presentation by Executive from time to time of an itemized account of such
expenditures.

         (F) CAR ALLOWANCE. Executive shall be entitled to receive a monthly car
allowance in the amount of One Thousand Dollars ($1,000.00).

         In  addition  to  the  benefits  provided  pursuant  to  the  preceding
paragraphs of this Section 4, Executive shall be eligible to participate in such
other  executive  compensation  and  retirement  plans  of  the  Company  as are
applicable  generally  to other  officers,  and in such welfare  benefit  plans,
programs,  practices and policies of the Company as are generally  applicable to
other key employees.

5.       PAYMENTS UPON TERMINATION

         (A) INVOLUNTARY TERMINATION. If Executive's employment is terminated by
the Company during the term of this  Agreement,  Executive  shall be entitled to
receive his base salary accrued through the date of termination. Executive shall
also receive any nonforfeitable benefits already earned and payable to him under
the  terms  of any  deferred  compensation,  incentive  or  other  benefit  plan
maintained  by  the  Company,  payable  in  accordance  with  the  terms  of the
applicable plan.

         If the  termination  is not for death,  failure to renew as provided in
Section 2,  disability as described in Section  5(b),  for Cause as described in
Section  5(c) or a voluntary  termination  by  Executive as described in Section
5(d), the Company shall also be obligated to pay to Executive an amount equal to
an aggregate of all salary  payments which would  otherwise be due Executive for
the  months  remaining  in the then  current  term of this  Agreement.  Any such
payment shall, at the option of the Company,  be made either in equal bi-monthly
installments  over the remaining term of this  Agreement,  or in a lump sum cash
payment on the date of termination.

         (B)  DISABILITY.  The  Company  shall be  entitled  to  terminate  this
Agreement if the Board  determines  that  Executive has been unable to attend to
his duties for at least  ninety  (90) days  because of a  medically  diagnosable
physical or mental condition.  Upon such  termination,  the Company shall pay to
Executive a monthly  disability benefit equal to  one-twenty-fourth  (1/24th) of
his  current  annual  base  salary at the time he became  permanently  disabled.
Payment of such  disability  benefit shall commence on the last day of the month
following  the date of the  termination  by reason of permanent  disability  and
cease with the earliest of: (i) the month in which  Executive  returns to active
employment,  either with the Company or  otherwise,  (ii) the end of the initial
term of this  Agreement,  or the current  renewal  term,  as the case may be, or
(iii) the twelfth month after the date of the  termination.  Any amounts payable
under this Section 5(b) shall be reduced by any amounts paid to Executive  under
any long-term  disability plan or other disability program or insurance policies
maintained or provided by the Company.

                                      -3-
<PAGE>

         (C) TERMINATION  FOR CAUSE. If Executive's  employment is terminated by
the Company for Cause,  the amount  Executive  shall be entitled to receive from
the  Company  shall be limited to his base  salary  accrued  through the date of
termination,  and any  nonforfeitable  benefits  already  earned and  payable to
Executive under the terms of deferred compensation or incentive plans maintained
by the  Company.  For  purposes of this  Agreement,  the term  "CAUSE"  shall be
limited to: (i) any action by  Executive  involving  willful  disloyalty  to the
Company, such as embezzlement,  fraud, misappropriation of corporate assets or a
breach of the  covenants  set forth in  Sections 8 or 9 hereof;  (ii)  Executive
being convicted of a felony; (iii) Executive being convicted of any lesser crime
or offense  committed in connection with the performance of his duties hereunder
or involving  moral  turpitude;  or (iv) the  intentional and willful failure by
Executive to substantially perform his duties hereunder as directed by the Board
(other  than any such  failure  resulting  from  Executive's  incapacity  due to
physical or mental disability);  provided that in the event of a termination for
Cause under this Section 5(c)(iv),  Executive shall have a period of thirty (30)
days in which to cure  such  breach  after  receiving  notice  from the  Company
specifying in reasonable detail the nature of such breach.

         (D)  VOLUNTARY  TERMINATION  BY  EXECUTIVE.  If  Executive  resigns  or
otherwise  voluntarily  terminates his employment  before the end of the current
term of this Agreement,  the amount  Executive shall be entitled to receive from
the  Company  shall be limited to his base  salary  accrued  through the date of
termination,  and any  nonforfeitable  benefits  already  earned and  payable to
Executive under the terms of any deferred compensation or incentive plans of the
Company.  For purposes of this Section,  a resignation by Executive shall not be
deemed to be  voluntary  if  Executive  resigns  during  the period of three (3)
months  after the date he is: (i)  assigned  to a position of lesser rank (other
than for Cause,  or by reason of permanent  disability),  (ii)  assigned  duties
materially  inconsistent  with such  position,  or (iii)  directed  to report to
anyone other than the Company's Board of Directors.

6.       DEATH

         If Executive dies during the term of this Agreement,  the Company shall
pay to  Executive's  estate a lump sum payment  equal to the sum of  Executive's
base salary  accrued  through the date of death plus the total unpaid  amount of
any bonuses  earned with respect to the fiscal year of the Company most recently
ended. In addition,  the death benefits  payable by reason of Executive's  death
under any  retirement,  deferred  compensation  or other  employee  benefit plan
maintained  by the  Company  shall  be paid  to the  beneficiary  designated  by
Executive in accordance with the terms of the applicable plan or plans.

7.       WITHHOLDING

         The Company  shall,  to the extent  permitted by law, have the right to
withhold and deduct from any payment hereunder any federal, state or local taxes
of any kind required by law to be withheld with respect to any such payment.

                                      -4-
<PAGE>

8.       PROTECTION OF CONFIDENTIAL INFORMATION

         Executive  agrees  that,  both  during the term of this  Agreement  and
thereafter,  he will keep all  confidential  and proprietary  information of the
Company or relating to its business (including,  but not limited to, information
regarding  the  Company's  customers,  pricing  policies,  methods of operation,
proprietary computer programs and trade secrets) confidential,  and that he will
not (except with the Company's  prior written  consent),  while in the employ of
the Company or  thereafter,  disclose any such  confidential  information to any
person,  firm,   corporation,   association  or  other  entity,  other  than  in
furtherance  of his  duties  hereunder,  and then only to those  with a "need to
know." Executive shall not make use of any such confidential information for his
own purposes or for the benefit of any person, firm, corporation, association or
other entity  (except the Company) under any  circumstances  during or after the
term of his employment.  The foregoing shall not apply to any information  which
is already in the public domain, or is generally  disclosed by the Company or is
otherwise in the public domain at the time of disclosure.

         Executive  recognizes  that because his work for the Company will bring
him into contact with  confidential and proprietary  information of the Company,
the restrictions of this Section 8 are required for the reasonable protection of
the Company and its investments and for the Company's reliance on and confidence
in  Executive.  For  purposes of this  Section 8, the term  "Company"  means the
Company, any of the Company's  subsidiary  corporations and its other affiliated
entities.

9.       COVENANT NOT TO COMPETE; NON SOLICITATION

         Executive  hereby agrees that he will not, either during the Employment
Term or during the period of one (1) year from the time  Executive's  employment
under this Agreement is terminated,  engage in any business activities on behalf
of any  enterprise  which  competes  with the Company in the  telecommunications
business.  Executive will be deemed to be engaged in such  competitive  business
activities  if he  participates  in such a business  enterprise  as an employee,
officer, director, consultant, agent, partner, proprietor, or other participant;
provided  that the  ownership of no more than two percent (2%) of the stock of a
publicly  traded  corporation  engaged in a competitive  business,  shall not be
deemed to be engaging in competitive business activities.

         Executive  agrees that he shall not,  for a period of one (1) year from
the time his employment under this Agreement ceases (for whatever  reason),  or,
if later,  during any period in which he is receiving monthly severance payments
under Section 5 of this Agreement:

         (a) solicit any employee or full-time consultant of the Company for the
         purposes of hiring or retaining such employee or consultant, or

         (b) contact any present or prospective client of the Company to solicit
         such a person to enter into any business  transaction,  other than with
         the Company or with one of the Company's affiliates.

                                      -5-
<PAGE>

For  this  purpose,  Executive  shall  be  considered  to be  receiving  monthly
severance payments under Section 5 of this Agreement during any period for which
he would be entitled to receive such severance payments.

10.      INJUNCTIVE RELIEF

         Executive  acknowledges  and agrees that it would be difficult to fully
compensate  the  Company  for damages  resulting  from the breach or  threatened
breach of the  covenants  set forth in  Sections 8 and 9 of this  Agreement  and
accordingly  agrees  that  the  Company  shall  be  entitled  to  temporary  and
injunctive  relief,   including  temporary   restraining   orders,   preliminary
injunctions and permanent injunctions,  to enforce such provisions in any action
or proceeding  instituted in the Circuit Court of Hillsborough County,  Florida,
or in any court in the State of Florida having subject matter jurisdiction,  and
the  Company  shall  not be  required  to post a bond in order to  receive  such
relief.  This  provision with respect to injunctive  relief shall not,  however,
diminish the Company's right to claim and recover damages.

         It is  expressly  understood  and  agreed  that  although  the  parties
consider the  restrictions  contained in this Agreement to be  reasonable,  if a
court determines that the time or territory or any other  restriction  contained
in  this  Agreement  is  an  unenforceable  restriction  on  the  activities  of
Executive,  no such provision of this Agreement shall be rendered void but shall
be deemed  amended to apply as to such  maximum time and  territory  and to such
extent as such court may judicially determine or indicate to be reasonable.

11.      SEPARABILITY

         If any provision of this  Agreement  shall be declared to be invalid or
unenforceable,  in whole or in part, such invalidity or  unenforceability  shall
not affect the remaining  provisions hereof which shall remain in full force and
effect.

12.      ASSIGNMENT

         This  Agreement  shall be binding  upon and inure to the benefit of the
heirs and  representatives  of Executive  and the assigns and  successors of the
Company, but neither this Agreement nor any rights hereunder shall be assignable
or otherwise subject to hypothecation by Executive.

13.      ENTIRE AGREEMENT

         This Agreement represents the entire agreement of the parties and shall
supersede any and all previous or  contemporaneous  contracts,  arrangements  or
understandings  between the  Company and  Executive.  The  Agreement  may not be
modified  or  amended  other than by mutual  written  agreement  of the  parties
hereto.

                                      -6-
<PAGE>

14.      GOVERNING LAW

         This  Agreement  shall  be  construed,  interpreted,  and  governed  in
accordance with the laws of the State of Florida.

15.      COUNTERPARTS

         This  Agreement  may be executed in two or more  counterparts,  each of
which shall be deemed an original, but all of which shall constitute but one and
the same Agreement.

         IN WITNESS  WHEREOF,  the Company has caused this  Agreement to be duly
executed,  and Executive has hereunto set his hand, as of the day and year first
above written.

Attest:                                      USA DIGITAL, INC.

/s/ Mark D. Cobb                             By: /s/ Mark D. Cobb
----------------------------------              --------------------------------
Secretary                                       Mark D. Cobb, Its President

Witness:                                     EXECUTIVE:

/s/ Heddy Lopez-Vernon                       /s/ Peter J. Lyons
----------------------------------           -----------------------------------
                                             Peter J. Lyons

                                      -7-
<PAGE>

                             STOCK OPTION AGREEMENT

         THIS STOCK OPTION AGREEMENT,  made as of February 1, 2000,  between USA
Digital,  Inc., a Nevada  corporation  (the  "CORPORATION"),  and Peter J. Lyons
("EMPLOYEE").

                                   WITNESSETH:

         WHEREAS,  the Corporation  desires to employ  Employee  pursuant to the
terms of an Employment Agreement dated the date hereof; and

         WHEREAS,  pursuant to Employee's Employment Agreement,  the Corporation
desires to provide Employee with an opportunity to acquire an equity interest in
the Corporation; and

         WHEREAS,  the  Corporation  has decided to grant  stock  options to the
Employee on the terms and conditions set forth below.

         NOW, THEREFORE, in consideration of the covenants and agreements herein
contained and intending to be legally bound hereby,  the parties hereto agree as
follows:

         1.  GRANT OF  OPTIONS.  Subject  to the  terms and  conditions  of this
Agreement, the Corporation hereby grants to the Employee the right and option to
purchase  up to a total of Five  Hundred  Thousand  shares of the common  stock,
$.001 par value, of the Corporation (the "Common Stock"), at an option price per
share as  indicated  in Section 2 hereof.  The  options to  purchase  up to Five
Hundred  Thousand  (500,000) shares of Common Stock granted under this Agreement
(the  "Options")  are not intended to qualify as incentive  stock options within
the meaning of Section 422 of the Internal Revenue Code of 1986, as amended.

         2. PERIOD OF EXERCISE.  The Options  granted in this Agreement shall be
fully vested and nonforfeitable  immediately upon grant.  However,  these vested
Options shall become  exercisable  by the Employee on a delayed  basis,  in four
installments.  The  maximum  number  of  shares  of  Common  Stock for which the
Employee may exercise the Options to purchase at any time during the term of the
Options shall be limited as specified in the following schedule:

<TABLE>
<CAPTION>
PERIOD                                               OPTIONS MAY BE EXERCISED FOR:
------                                               -----------------------------
<S>                                         <C>
From February 1, 2001                       Up to 125,000  shares of the Common Stock at
Through January 31, 2006                    $3.50 per share

From February 1, 2002                       Up to 125,000 shares of the Common Stock at
Through January 31, 2007                    $4.00 per share

From February 1, 2003                       Up to 125,000 shares of the Common Stock at
Through January 31, 2008                    $5.00 per share

From February 1, 2004                       Up to 125,000 shares of the Common Stock at
Through January 31, 2009                    $6.00 per share
</TABLE>

<PAGE>

If, at any time during any of these periods,  the Employee fails to exercise the
Options  with  respect to all of the shares  which may be acquired at such time,
the Employee shall be entitled to exercise the Options again with respect to the
remaining portion of such shares at any subsequent time prior to the termination
date of the Options.

         3.  TERMINATION  DATE OF OPTIONS.  The  Options  granted  herein  shall
terminate on the dates specified in Section 2 hereof. The Employee shall have no
right to exercise the Options at any time after the dates specified in Section 2
hereof.

         4. MANNER OF EXERCISE.  When the Employee elects to exercise Options to
purchase  shares of Common Stock and such  exercise is permitted  hereunder,  he
shall give written  notice of such  exercise to the  Corporate  Secretary of the
Corporation.  The notice of exercise  shall state the number of shares of Common
Stock as to which the Options are being  exercised  and the  exercise  price for
such shares of Common  Stock.  The Employee may exercise the Options to purchase
all or any whole  number  portion of the number of shares of Common  Stock which
the Employee is then  permitted to purchase  under  Paragraph 2 (but not for any
fractional shares).

         5.  PAYMENT  FOR  SHARES.  Full  payment of the Price for each share of
Common Stock  purchased by  exercising  the Options shall be due at the time the
notice of exercise is  delivered  pursuant to  Paragraph  4. Such payment may be
made (i) in cash,  (ii) by delivery of shares of Common Stock which the Employee
has already  owned for at least six (6) months  which have a fair  market  value
equal to the Price multiplied by the number of shares being exercised,  or (iii)
at the discretion of the Board of Directors, in any other form acceptable to the
Corporation.

         At the time of any  exercise,  the Employee may exercise his Options by
delivering a signed,  irrevocable notice of exercise,  accompanied by payment in
full of the  option  price  by the  Employee's  stockbroker  and an  irrevocable
instruction  to the  Corporation  to deliver the shares of Common Stock issuable
upon  exercise of the Options  promptly to the  Employee's  stockbroker  for the
Employee's account.

         6. ISSUANCE OF STOCK  CERTIFICATES FOR SHARES.  The stock  certificates
for any shares of Common  Stock  issuable to the Employee  upon  exercise of the
Options  shall be delivered to the Employee (or to the person to whom the rights
of  the  Employee  shall  have  passed  by  will  or the  laws  of  descent  and
distribution)  as promptly  after the date of exercise as is  feasible,  but not
before the Employee has paid the Price for each such share so exercised.

         7. TERMINATION OF EMPLOYMENT FOR DEATH, DISABILITY OR WITHOUT CAUSE. If
the  Employee's  employment  with the  Corporation  ends  during the term of the
Options specified in Section 2 hereof either as a result of death, disability or
involuntary  termination  by the  Corporation  without  Cause (as  defned in the
Employee's Employment Agreement), Employee's right to exercise the Options shall
not expire  prematurely.  The Options shall not be  forfeited,  but Employee (or
Employee's  estate)  shall  continue to have the right to  exercise  the Options
during the  remainder of the term of the Options  specified in Section 2 hereof.
The maximum  number of shares  Employee (or  Employee's  estate) may purchase by
exercising  the  Options at any time  during  such  period  shall not exceed the
number of shares  which could be  purchased  at that date  pursuant to Section 2
hereof.

                                       2
<PAGE>

         8.  TERMINATION  OF EMPLOYMENT BY EMPLOYEE OR FOR CAUSE.  If Employee's
employment with the Corporation  ends during the term of the Options either as a
result  of  voluntary   termination  by  the  Employee  or  termination  by  the
Corporation for Cause (as defined in Employee's Employment Agreement),  Employee
shall have the right to exercise only those Options  exercisable  on the date of
such  termination  and Employee must  exercise  such options  during a period of
ninety (90) days following the termination of employment,  but in no event later
than January 31, 2009. The maximum number of shares the Employee may purchase by
exercising  the Options during this period shall not exceed the number of shares
which could be purchased at the date of termination pursuant to Paragraph 2.

         9. LIMITED  TRANSFERABILITY OF OPTIONS. The Employee's rights under the
Options may not be assigned or  transferred  by the  Employee  other than (i) by
will or the laws of descent and distribution, or (ii) in the manner described in
the next paragraph.

         Notwithstanding  the  foregoing,  the  Employee  may  transfer all or a
portion of the  Options to trusts  for the  benefit of members of her  immediate
family, or to family partnerships in which immediate family members are the only
partners,  as long as the Employee  receives no consideration  for the transfer.
Any transferred  Options will still be terminated in accordance with Paragraph 7
if the any of the events described in Paragraph 7 occur.

         10.  SECURITIES  LAWS. The Corporation may from time to time impose any
conditions on the exercise of the Options as it deems  necessary or advisable to
ensure that the Options granted  hereunder,  and each exercise thereof,  satisfy
the  applicable   requirements  of  federal  and  state  securities  laws.  Such
conditions to satisfy  applicable federal and state securities laws may include,
without limitation,  the partial or complete suspension of the right to exercise
the Options  until the  offering of the shares  covered by the Options have been
registered  under the  Securities Act of 1933, or the printing of legends on all
stock  certificates  issued to the Employee referring to the restrictions on the
transferability of such shares.

         11. RIGHTS PRIOR TO ISSUANCE OF CERTIFICATES.  Neither the Employee nor
any person to whom the rights of the  Employee  shall have passed by will or the
laws of descent and  distribution  shall have any of the rights of a stockholder
with respect to any shares of Common Stock until the date of the issuance to her
of certificates for such Common Stock as provided in Paragraph 6 above.

         12. EFFECT OF CHANGE IN CORPORATE CONTROL.  In the event of a Change in
Corporate  Control,  the vesting of any stock options or other awards granted to
Executive  under any stock  option  plan or scheme of the Company  shall  become
immediately  vested in full and, in the case of stock  options,  exercisable  in
full.  For purposes of this  Agreement,  a "CHANGE IN CORPORATE  CONTROL"  shall
include any of the following events:

         (i) The  acquisition  in one or more  transactions  of more than thirty
percent (30%) of the Company's  outstanding Common Stock by any corporation,  or
other person or group (within the meaning of Section  14(d)(3) of the Securities
Exchange Act of 1934, as amended); or

         (ii) Any merger or  consolidation  of the Company  into or with another
corporation in which the Company is not the surviving entity, or any transfer or
sale  of  substantially  all of the

                                       3
<PAGE>

assets of the Company or any merger or consolidation of the Company into or with
another  corporation  in which the  Company  is the  surviving  entity  and,  in
connection  with such merger or  consolidation,  all or part of the  outstanding
shares of Common  Stock shall be changed  into or  exchanged  for other stock or
securities of any other person, or cash, or any other property.

provided  that, no  acquisition  of stock by any person in a public  offering or
private placement of the Company's common stock, approved by the Company's Board
of Directors, shall be considered a Change in Control.

         13.      MISCELLANEOUS.

                  (a) This Agreement may be executed in one or more counterparts
all of which taken together will constitute one and the same instrument.

                  (b) The terms of this Agreement may only be amended,  modified
or  waived  by a  written  agreement  executed  by  both  the  Employee  and the
Corporation.

                  (c) The validity, performance, construction and effect of this
Agreement shall be governed by the laws of the State of Florida,  without giving
effect to principles of conflicts of law.

         IN WITNESS  WHEREOF,  the parties have executed  this  Agreement in two
counterparts on the date and year first above written.

ATTEST:                                     USA DIGITAL, INC.

/s/ Mark D. Cobb                            By: /s/ Mark D. Cobb
----------------------------------             ---------------------------------
Secretary                                      Mark D. Cobb, President

Witness                                     EMPLOYEE:

/s/ Heddy Lopez-Vernon                      /s/ Peter J. Lyons
----------------------------------          ------------------------------------
                                            Name:    Peter J. Lyons

                                       4
<PAGE>

                             STOCK OPTION AGREEMENT
                                 (Signing Bonus)

         THIS STOCK OPTION AGREEMENT,  made as of February 1, 2000,  between USA
Digital,  Inc., a Nevada  corporation  (the  "CORPORATION"),  and Peter J. Lyons
("EMPLOYEE").

                                   WITNESSETH:

         WHEREAS,  the Corporation  desires to employ  Employee  pursuant to the
terms of an Employment Agreement dated the date hereof; and

         WHEREAS,  pursuant to Employee's Employment Agreement,  the Corporation
desires to provide Employee with an opportunity to acquire an equity interest in
the Corporation; and

         WHEREAS,  the  Corporation  has decided to grant  stock  options to the
Employee on the terms and conditions set forth below.

         NOW, THEREFORE, in consideration of the covenants and agreements herein
contained and intending to be legally bound hereby,  the parties hereto agree as
follows:

         1.  GRANT OF  OPTIONS.  Subject  to the  terms and  conditions  of this
Agreement, the Corporation hereby grants to the Employee the right and option to
purchase up to a total of One Hundred Thousand shares of the common stock, $.001
par value, of the Corporation (the "Common Stock"), at an option price per share
of $3.50. The options to purchase up to One Hundred Thousand (100,000) shares of
Common Stock granted under this  Agreement  (the  "Options") are not intended to
qualify as  incentive  stock  options  within the  meaning of Section 422 of the
Internal Revenue Code of 1986, as amended.

         2. PERIOD OF EXERCISE.  The Options  granted in this Agreement shall be
immediately  exercisable  by the  Employee.  If, at any time  during the term of
these Options,  the Employee  exercises the Options with respect to some but not
all of the shares which may be acquired at such time,  the Employee may exercise
the Options  again with respect to the  remaining  portion of such shares at any
subsequent time prior to the termination date of the Options.

         3. TERMINATION  DATE  OF OPTIONS.  The  Options  granted  herein  shall
terminate on January 31, 2005, the fifth  anniversary of the date of grant.  The
Employee  shall  have no right to  exercise  the  Options at any time after this
date.

         4. MANNER OF EXERCISE. When the Employee elects to exercise the Options
to purchase shares of Common Stock and such exercise is permitted hereunder,  he
shall give written  notice of such  exercise to the  Corporate  Secretary of the
Corporation.  The notice of exercise  shall state the number of shares of Common
Stock as to which the Options are being exercised. The Employee may exercise the
Options to purchase all or any whole  number  portion of the number of shares of
Common Stock which the Employee is then permitted to purchase under  Paragraph 2
(but not for any fractional shares).

<PAGE>

         5.  PAYMENT  FOR  SHARES.  Full  payment of the Price for each share of
Common Stock  purchased by  exercising  the Options shall be due at the time the
notice of exercise is  delivered  pursuant to  Paragraph  4. Such payment may be
made (i) in cash,  (ii) by delivery of shares of Common Stock which the Employee
has already  owned for at least six (6) months  which have a fair  market  value
equal to the Price multiplied by the number of shares being exercised,  or (iii)
at the discretion of the Board of Directors, in any other form acceptable to the
Corporation.

         At the time of any  exercise,  the Employee may exercise his Options by
delivering a signed,  irrevocable notice of exercise,  accompanied by payment in
full of the  option  price  by the  Employee's  stockbroker  and an  irrevocable
instruction  to the  Corporation  to deliver the shares of Common Stock issuable
upon  exercise of the Options  promptly to the  Employee's  stockbroker  for the
Employee's account.

         6. ISSUANCE OF STOCK  CERTIFICATES FOR SHARES.  The stock  certificates
for any shares of Common  Stock  issuable to the Employee  upon  exercise of the
Options  shall be delivered to the Employee (or to the person to whom the rights
of  the  Employee  shall  have  passed  by  will  or the  laws  of  descent  and
distribution)  as promptly  after the date of exercise as is  feasible,  but not
before the Employee has paid the Price for each such share so exercised.

         7. TERMINATION OF EMPLOYMENT FOR DEATH, DISABILITY OR WITHOUT CAUSE. If
the  Employee's  employment  with the  Corporation  ends  during the term of the
Options specified in Section 2 hereof either as a result of death, disability or
involuntary  termination  by the  Corporation  without  Cause (as  defned in the
Employee's Employment Agreement), Employee's right to exercise the Options shall
not expire  prematurely.  Employee (or Employee's estate) shall continue to have
the right to  exercise  the  Options  during  the  remainder  of the term of the
Options specified in Section 2 hereof.

         8.  TERMINATION  OF EMPLOYMENT BY EMPLOYEE OR FOR CAUSE.  If Employee's
employment with the Corporation  ends during the term of the Options either as a
result  of  voluntary   termination  by  the  Employee  or  termination  by  the
Corporation  for Cause (as  defined in  Employee's  Employment  Agreement),  the
Options shall expire. Employee shall only have the right to exercise the Options
during a period of ninety (90) days following the termination of employment, but
in no event later than January 31, 2005.

         9. LIMITED  TRANSFERABILITY OF OPTIONS. The Employee's rights under the
Options may not be assigned or  transferred  by the  Employee  other than (i) by
will or the laws of descent and distribution, or (ii) in the manner described in
the next paragraph.

         Notwithstanding  the  foregoing,  the  Employee  may  transfer all or a
portion of the  Options to trusts  for the  benefit of members of his  immediate
family, or to family partnerships in which immediate family members are the only
partners,  as long as the Employee  receives no consideration  for the transfer.
Any transferred  Options will still be terminated in accordance with Paragraph 7
if any of the events described in Paragraph 7 occur.

                                       2
<PAGE>

         10.  SECURITIES  LAWS. The Corporation may from time to time impose any
conditions on the exercise of the Options as it deems  necessary or advisable to
ensure that the Options granted  hereunder,  and each exercise thereof,  satisfy
the  applicable   requirements  of  federal  and  state  securities  laws.  Such
conditions to satisfy  applicable federal and state securities laws may include,
without limitation,  the partial or complete suspension of the right to exercise
the Options  until the  offering of the shares  covered by the Options have been
registered  under the  Securities Act of 1933, or the printing of legends on all
stock  certificates  issued to the Employee referring to the restrictions on the
transferability of such shares.

         11. RIGHTS PRIOR TO ISSUANCE OF CERTIFICATES.  Neither the Employee nor
any person to whom the rights of the  Employee  shall have passed by will or the
laws of descent and  distribution  shall have any of the rights of a stockholder
with respect to any shares of Common Stock until the date of the issuance to him
of certificates for such Common Stock as provided in Paragraph 6 above.

         12.  MISCELLANEOUS.

                  (a) This Agreement may be executed in one or more counterparts
all of which taken together will constitute one and the same instrument.

                  (b) The terms of this Agreement may only be amended,  modified
or  waived  by a  written  agreement  executed  by  both  the  Employee  and the
Corporation.

                  (c) The validity, performance, construction and effect of this
Agreement shall be governed by the laws of the State of Florida,  without giving
effect to principles of conflicts of law.

         IN WITNESS  WHEREOF,  the parties have executed  this  Agreement in two
counterparts on the date and year first above written.

ATTEST:                                     USA DIGITAL, INC.

/s/ Mark D. Cobb                           By: /s/ Mark D. Cobb
-----------------------------------            ---------------------------------
Secretary                                      Mark D. Cobb, President

Witness                                     EMPLOYEE:

/s/ Heddy Lopez-Vernon                      /s/ Peter J. Lyons
-----------------------------------         ------------------------------------
                                            Name:    Peter J. Lyons

                                       3

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