Document:

EXHIBIT 10.1

                                  Appendix A
                                  ----------

                      HALLMARK FINANCIAL SERVICES, INC.
                        2005 LONG TERM INCENTIVE PLAN

 Section 1   Purpose
             -------

      HALLMARK FINANCIAL SERVICES, INC. (the "Corporation") establishes  this
 2005 LONG TERM INCENTIVE PLAN (the "2005 Plan") to:

      (a)  attract and retain key executive and managerial employees;

      (b)  motivate  participating   employees,  by   means  of   appropriate
 incentives, to achieve long-range goals;

      (c)  attract and retain well-qualified individuals to serve as  members
 of the Corporation's Board of Directors (the "Board");

      (d)  provide incentive compensation opportunities that are  competitive
 with those of other corporations; and

      (e)  further identify the interests of directors and eligible employees
 with those  of the  Corporation's  other stockholders  through  compensation
 alternatives based on the Corporation's Common Stock;

 and thereby promote  the long-term  financial interest  of the  Corporation,
 including the growth in value of the Corporation's equity and enhancement of
 long-term stockholder return.

 Section 2   Scope
             -----

      Awards under the 2005 Plan may be granted in the form of  (a) incentive
 stock options ("incentive stock options") as provided in Section 422 of  the
 Internal Revenue Code  of 1986, as  amended (the "Code"),  (b) non-qualified
 stock  options  ("non-qualified   options")  (unless  otherwise   indicated,
 references in the 2005 Plan to "options" include incentive stock options and
 non-qualified options), or (c) shares of the Common Stock of the Corporation
 (the "Common Stock") that  are restricted as  provided in Section 12  hereof
 ("restricted shares").  Stock  appreciation rights ("rights") may  accompany
 options. Rights  may  also  be granted  without  accompanying  options.  The
 maximum aggregate number  of shares of  Common Stock with  respect to  which
 options and  restricted  shares,  and rights  granted  without  accompanying
 options, may be  granted from  time to  time under  the 2005  Plan shall  be
 5,000,000 shares (subject to adjustment as described in Section 17  hereof).
 Shares of Common Stock with respect to  which awards are granted may be,  in
 whole or in part,  authorized and unissued shares  or authorized and  issued
 shares reacquired and held in the treasury of the Corporation, as the  Board
 shall from  time  to time  determine.  If for  any  reason (other  than  the
 surrender of options  or Deemed Options  (as defined  in Section 9(b))  upon
 exercise of rights as provided in  Section 9 hereof) any shares as to  which
 an option has been  granted cease to be  subject to purchase thereunder,  or
 any restricted shares are forfeited to the Corporation, or any right  issued
 without accompanying options terminates or expires without being  exercised,
 then  the  shares  in  respect  of which  such option or  right was granted,
 or which relate  to such  restricted  shares,  shall  become  available  for
 subsequent awards under the 2005 Plan.

 Section 3   Effective Date
             --------------

      The 2005 Plan shall  become effective on  the calendar day  immediately
 following the date  the 2005  Plan is approved  by the  stockholders of  the
 Corporation. If the stockholders of the  Corporation approve the 2005  Plan,
 it shall terminate on the tenth anniversary of its effective date.

 Section 4   Administration
             --------------

      (a)    The 2005 Plan shall  be administered, construed and  interpreted
 solely by the Compensation Committee, or any successor thereto, of the Board
 (the "Committee").  The Committee shall consist  of two  or more  directors.
 Unless otherwise determined  by the Board,  each member of the  Compensation
 Committee shall  be  (i) a "non-employee  director"  within the  meaning  of
 Rule 16b-3 under the Securities Exchange Act of 1934, as amended (the  "1934
 Act"), and (ii) an "outside director" as defined under Section 162(m) of the
 Code, unless administration of this Plan by "outside directors" is not  then
 required in order to qualify for  tax deductibility under Section 162(m)  of
 the Code.

      (b)  Subject to the express provisions of Rule 16b-3 promulgated  under
 the 1934 Act  and Treasury regulation  S1.162-27, the  Committee shall  have
 plenary authority  in  its  sole discretion,  and  subject  to  the  express
 provisions of the  2005 Plan, to  grant options, to  determine the  purchase
 price of the Common Stock covered by each option (the "exercise price"), the
 term of each option, the employees to whom, and the time or times at  which,
 options shall be  granted and the  number of shares  to be  covered by  each
 option; to designate  options as  incentive stock  options or  non-qualified
 options and to determine  which options shall be  accompanied by rights;  to
 grant rights without  accompanying options;  to determine  the  employees to
 whom and the time  or times at which  such rights shall  be granted and  the
 exercise price, term, and  number of shares of  Common Stock covered by  any
 Deemed Option  corresponding  thereto; to  grant  restricted shares  and  to
 determine the term of the restricted period and other conditions  applicable
 to such restricted shares, the  employees to whom and  the time or times  at
 which restricted shares shall be granted and the number of restricted shares
 to be covered by each grant; to interpret the 2005 Plan; to prescribe, amend
 and rescind rules and  regulations relating to the  2005 Plan; to  determine
 the  terms  and  provisions  of  the  option,  right  and  restricted  share
 agreements entered into in  connection with awards under  the 2005 Plan;  to
 prepare and distribute  in such  manner as  the Committee  determines to  be
 appropriate information  concerning the  2005 Plan;  and to  make all  other
 determinations deemed necessary or advisable  for the administration of  the
 2005 Plan. The Committee may delegate to  one (1) or more of its members  or
 to one (1)  or  more  agents  such administrative  duties  as  it  may  deem
 advisable, and the Committee or any  person to whom it has delegated  duties
 as aforesaid may employ one or more persons to render advice with respect to
 any responsibility the  Committee or  such person  may have  under the  2005
 Plan; provided, however, that the Committee shall not delegate its authority
 to construe and interpret  the 2005 Plan, to  determine which employees  may
 participate in the 2005  Plan, or its authority  to make grants of  options,
 restricted shares  and rights  or any  authority  which pertains  to  awards
 granted  to  persons  subject to Section 16(b)  of the 1934 Act  or  Section
 162(m) of the Code.

      (c)  Subject to the express provisions of Rule 16b-3 promulgated  under
 the 1934 Act and Treasury regulation S1.162-27, the Committee may adopt such
 rules as it deems necessary, desirable or appropriate. The Committee may act
 at a meeting or in writing without a meeting. The Committee shall elect  one
 of its members as  chairman, appoint a secretary  (who may or  may not be  a
 Committee member) and advise the Board of such actions. The secretary  shall
 keep a record of all minutes and forward all necessary communications to the
 Corporation. A  majority of  the Committee  shall constitute  a quorum.  All
 decisions of  the Committee  shall be  made by  a vote  of not  less than  a
 majority of the Committee members present  at a meeting of the Committee  at
 which a quorum  is present  or by a  written consent  signed by  all of  the
 members of  the  Committee. A  dissenting  Committee member  who,  within  a
 reasonable time after he has  knowledge of any action  or failure to act  in
 accordance with the  preceding sentence,  registers his  dissent in  writing
 delivered to the  other Committee  members and to  the Board,  shall not  be
 responsible for any such action or failure to act.

      (d)  The Corporation shall pay all usual and reasonable expenses of the
 Committee, and  no member  shall receive  compensation with  respect to  his
 services for the  Committee except as  may be authorized  by the Board.  The
 Committee may employ attorneys,  consultants, accountants or other  persons,
 and the Committee, the Corporation and  its officers and directors shall  be
 entitled to  rely  upon the  advice,  opinions  or valuations  of  any  such
 persons. All actions taken and  all interpretations and determinations  made
 by the Committee in good faith shall be final and binding upon all employees
 who have received awards, the Corporation and all other interested  persons.
 No member  of the  Committee  shall be  personally  liable for  any  action,
 determination, or interpretation taken or made in good faith with respect to
 the 2005 Plan or awards made thereunder, and the Corporation shall indemnify
 and hold  harmless each  member of  the Committee  against all  loss,  cost,
 expenses or damages occasioned by any  act or omission to act in  connection
 with any such action, determination or  interpretation under or of the  2005
 Plan, consistent  with  the  Corporation's  articles  of  incorporation  and
 bylaws.

      (e)  Subject to such limitations or restrictions  as may be imposed  by
 the Code or other applicable law, the Committee may grant to an employee who
 has been granted  an award under  the 2005 Plan  or any  other benefit  plan
 maintained by the Corporation or any of its subsidiaries, or any predecessor
 or successor thereto, in exchange for the surrender and cancellation of such
 prior award, a new award with such terms and conditions as the Committee may
 deem appropriate and consistent with the provisions of the 2005 Plan.

      (f)  At any time  that a member  of the Committee  is not a  "qualified
 member," which  shall mean  a member  who is  (i) a "non-employee  director"
 within the meaning of  Rule 16b-3(b)(3) promulgated under  the 1934 Act  and
 (ii) an "outside director" within the meaning of Treasury regulation S1.162-
 27, any  action of  the Committee  relating to  an award  granted or  to  be
 granted to an employee who is then subject to Section 16 of the 1934 Act  in
 respect of  the  Corporation,  or  relating to  an  award  intended  by  the
 Committee to qualify as "performance-based compensation" within the  meaning
 of Section 162(m)  of the  Code and  regulations  thereunder, may  be  taken
 either (A) by a subcommittee, designated  by the Committee, composed  solely
 of two or more qualified members, or (B) by the Committee but with each such
 member who  is not  a qualified  member abstaining  or recusing  himself  or
 herself from such action; provided, however,  that, upon such abstention  or
 recusal, the  Committee remains  composed solely  of two  or more  qualified
 members. Such action, authorized by such a subcommittee or by the  Committee
 upon the abstention or recusal of such non-qualified member(s), shall be the
 action of  the  Committee for  purposes  of this  Plan.  Any action  of  the
 Committee shall be final, conclusive and binding on all persons.

      (g)  Notwithstanding the  powers of  the Committee  set forth  in  this
 Section 4,  no   award  may   be  repriced,   replaced,  regranted   through
 cancellation, or modified without approval of the Corporation's stockholders
 (except in connection with a change  in the Corporation's capitalization  as
 described in Section 17) if the effect would be to reduce the exercise price
 for the shares of Common Stock underlying such award.

 Section 5   Eligibility Factors To Be Considered in Granting Awards
             -------------------------------------------------------

      (a)  Awards shall be granted only to  persons who are employees of  the
 Corporation or one (1)  or more of  its subsidiaries (as  defined below)  or
 directors of the Corporation who are not employees of the Corporation ("non-
 employee directors"). In determining the individuals to whom awards shall be
 granted, the number  of shares of  Common Stock with  respect to which  each
 award shall be  granted, and  the terms and  conditions of  each award,  the
 Committee shall take into account the nature of the individual's duties, his
 or her present and potential contributions to the growth and success of  the
 Corporation, and such other factors as the Committee shall deem relevant  in
 connection with accomplishing the purposes of the 2005 Plan.

      (b)  For purposes of  the 2005 Plan,  the term  "subsidiary" means  any
 corporation (other  than  the Corporation)  or  other entity  of  which  the
 Corporation owns, directly or indirectly, a majority of the voting power  of
 the voting equity securities or equity interest.

      (c)  Unless a different meaning is indicated or required by the context
 and except in the case of application of Section 10, the term "employee"  as
 used in the Plan shall include  a non-employee director of the  Corporation,
 and the term  "employed" or  "employment" shall  include service  by a  non-
 employee director as a member of the Board.

 Section 6   Option Price; Fair Market Value
             -------------------------------

      The per share exercise price of each option for shares of Common  Stock
 shall be determined by  the Committee, but  shall not in  any event be  less
 than the Fair Market Value per Share on the date the option is granted.  For
 purposes of the 2005 Plan, the term "Fair Market Value per Share" as of  any
 date shall mean for shares of Common Stock with respect to which  restricted
 shares, options and rights shall be granted, the closing price of the Common
 Stock on such  date (or if  there are  no sales on  such date,  on the  next
 preceding date on  which there  were sales),  as reported  on  the principal
 consolidated  transaction  reporting  system  for  the  principal   national
 securities exchange  on which  the Common  Stock is  listed or  admitted  to
 trading, or if the Common Stock is not listed or admitted to trading on  any
 national securities  exchange, the  closing price  of  the Common  Stock  as
 reported on  the  National Market  System  of the  National  Association  of
 Securities Dealers, Inc  Automated Quotation  System ("NASDAQ"),  or if  the
 Common Stock is  not listed or  admitted to trading  on the NASDAQ  National
 Market System, the last quoted sales price or, if not so quoted, the average
 of the high  bid and  low asked prices  in the  over-the-counter market,  as
 reported by the NASDAQ System or such other system as may then be in use, or
 if the Common Stock is not reported on any such system and is not listed  or
 admitted to trading on any national securities exchange, the average of  the
 closing bid and  asked prices as  furnished by a  professional market  maker
 making a market in  the Common Stock selected  by the Board,  or if no  such
 market maker is making a market in the  Common Stock, the fair value of  the
 Common Stock as determined  in good faith by  the Board; provided,  however,
 that in any  event the Fair  Market Value per  Share shall be  appropriately
 adjusted to reflect  events described  in Section 17  hereof. The  Committee
 shall determine the date on which  an option is granted, provided that  such
 date is consistent  with the Code  and any applicable  rules or  regulations
 thereunder.  In  the absence of  such determination, the  date on which  the
 Committee adopts a  resolution granting an  option shall  be considered  the
 date on which such option is granted, provided that the employee to whom the
 option is granted  is promptly notified  of the grant  and a written  option
 agreement is duly executed  as of the date  of the resolution. The  exercise
 price so determined shall also be applicable in connection with the exercise
 of any related right.

 Section 7   Term of Options
             ---------------

      The term of each  option granted under  the 2005 Plan  shall be as  the
 Committee shall determine, but in no event  shall any option have a term  of
 more than 10 years from the date of grant, subject to earlier termination as
 provided in Sections 14 and 15 hereof.  If the holder of an incentive  stock
 option owns, at the time the incentive stock option is granted, stock of the
 Corporation possessing more  than 10% of  the combined voting  power of  all
 classes of stock  of the  Corporation or any  subsidiary, the  term of  such
 incentive stock option  shall not  exceed five  (5) years from  the date  of
 grant.

 Section 8   Exercise of Options
             -------------------

      (a)  Subject to the provisions  of the 2005  Plan and unless  otherwise
 provided in the  option agreement,  an option  granted under  the 2005  Plan
 shall become 100% vested  at the earliest  of (i) the employee's  retirement
 from employment  at  or  after Retirement  Age  (as  defined  in  Section 14
 hereof), or (ii) the employee's death or total and permanent disability  (as
 defined in Section 15 hereof), or (iii) a  Change in Control (as defined  in
 Section 22 hereof). Prior to becoming 100% vested, each option shall  become
 exercisable in  such cumulative  installments and  upon such  events as  the
 Committee may determine in its sole  discretion. The Committee may also,  in
 its  sole  discretion,  accelerate  the  exercisability  of  any  option  or
 installment thereof at any time.

      (b)  An option  may be  exercised at  any  time or  from time  to  time
 (subject, in the case of an incentive stock option, to such restrictions  as
 may be imposed by the Code), as to any or all full shares of Common Stock as
 to which  the option  has become  exercisable;  provided, however,  that  an
 option shall not be  exercised at any time  as to less  than 100 shares  (or
 less than the number of full shares of  Common Stock as to which the  option
 is then exercisable, if that number is less than 100 shares).

      (c)  At the time  of exercise  of any  option, the  per share  exercise
 price of such option shall be  paid in full for  each share of Common  Stock
 with respect to which such option is exercised. Payment may be made in  cash
 or, with  the approval  of the  Committee, in  shares of  the Common  Stock,
 valued at the Fair Market Value per Share on the date of exercise. An option
 holder may also make payment at the time of exercise of an option, with  the
 approval of  the Committee,  by delivering  to  the Corporation  a  properly
 executed exercise notice together with irrevocable instructions to a  broker
 approved by the  Corporation, that upon  such broker's sale  of shares  with
 respect to which such option is exercised, it is to deliver promptly to  the
 Corporation the  amount of  sale proceeds  necessary to  satisfy the  option
 exercise price and any required  withholding taxes; provided, however,  that
 the right  to  facilitate  an  option  exercise  by  the  use  of  a  broker
 transaction shall, for individuals subject to Section 16 of the 1934 Act and
 members of the Board,  be available only to  the extent allowed pursuant  to
 the Sarbanes-Oxley Act of 2002 and  applicable rules and regulations of  the
 Securities and Exchange Commission.

      (d)  Upon the exercise of  an option or  portion thereof in  accordance
 with the 2005 Plan, the option  agreement and such rules and regulations  as
 may be  established by  the Committee,  the holder  thereof shall  have  the
 rights of a stockholder with respect to the Common Stock issued as a  result
 of such exercise.

 Section 9   Award and Exercise of Rights
             ----------------------------

      (a)  The Committee  may  grant  a  right  as  a  primary  right  or  an
 additional right in the manner set forth in this Section 9. A right  granted
 in connection with  an option  must be  granted at  the time  the option  is
 granted. Each right shall be subject to the same terms and conditions as the
 related option or Deemed Option (as described in Section 9(b)) and shall  be
 exercisable only to the extent the option or Deemed Option is exercisable.

      (b)  The Committee  may  award  a primary  right  either  alone  or  in
 connection with any option granted under  the 2005 Plan. Each primary  right
 granted without  a corresponding  option shall  nevertheless be  deemed  for
 certain purposes described in this Section 9 to have been accompanied by  an
 option (a "Deemed  Option"). A  Deemed Option shall  have no  value, and  no
 shares of  Common Stock  (or other  consideration) shall  be delivered  upon
 exercise thereof, but such Deemed Option shall serve solely to establish the
 terms and conditions  of the  corresponding primary  right. At  the time  of
 grant of  a primary  right not  granted in  connection with  an option,  the
 Committee shall  set forth  the terms  and conditions  of the  corresponding
 Deemed Option. The terms and conditions of such Deemed Option shall  include
 all terms and conditions that at the time of grant are required, and, in the
 discretion of the Committee, may include any additional terms and conditions
 that at such time are permitted, to be included in options granted under the
 2005  Plan.  A  primary  right  shall  entitle  the  employee  to  surrender
 unexercised the related option or Deemed Option (or any portion or  portions
 thereof that  the  employee  determines to  surrender)  and  to  receive  in
 exchange, subject to  the provisions  of the 2005  Plan and  such rules  and
 regulations as from  time to  time may be  established by  the Committee,  a
 payment having an aggregate  value equal to (i) the  excess of (A) the  Fair
 Market Value per Share on the exercise date over (B) the per share  exercise
 price of  the option  or Deemed  Option, multiplied  by (ii) the  number  of
 shares of  Common Stock  subject to  the option,  Deemed Option  or  portion
 thereof that is  surrendered. Surrender  of an  option or  Deemed Option  or
 portion thereof in exchange  for a payment as  described in this Section  is
 referred to as the "exercise of a primary right." Upon exercise of a primary
 right, payment shall be made in the form of cash, shares of Common Stock, or
 a combination thereof, as  elected by the employee.  Shares of Common  Stock
 paid upon exercise  of a primary  right will be  valued at  the Fair  Market
 Value per Share  on the  exercise date. Cash  will be  paid in  lieu of  any
 fractional share of Common Stock based upon the Fair Market Value per  Share
 on the  exercise date.  Subject to  Section 19 hereof,  no payment  will  be
 required from the employee upon exercise of a primary right.

      (c)  The Committee may award an additional right in connection with any
 option granted under the  2005 Plan. An additional  right shall entitle  the
 employee to receive, upon the exercise  of a related option, a cash  payment
 equal to (i) the product determined by multiplying (A) the excess of (x) the
 Fair Market Value per Share  on the date of  exercise of the related  option
 over (y) the option price per share  at which such option is exercisable  by
 (B) the number of shares of Common  Stock with respect to which the  related
 option is being exercised, multiplied by (ii) a percentage factor (which may
 be any percentage factor equal to or greater  than 10% and equal to  or less
 than 100%) as determined by the Committee at  the time of the grant of  such
 additional  right  or  as  determined  in  accordance  with  a  formula  for
 determination of such percentage factor established by the Committee  at the
 time of the grant  of such additional right.  If the Committee specifies  no
 other percentage factor or formula at  the time of grant of such  additional
 right, the percentage factor  shall be deemed to  be 100%. The Committee  at
 any time,  or  from time  to  time, after  the  time  of grant  may  in  its
 discretion increase such percentage factor (or  amend such formula so as  to
 increase such factor) to not more than 100%.

      (d)  Upon exercise of a primary right,  the number of shares of  Common
 Stock subject to exercise  under the related option  or Deemed Option  shall
 automatically be reduced by the number of shares of Common Stock represented
 by the  option, Deemed  Option or  portion  thereof surrendered.  Shares  of
 Common  Stock  subject  to  options,  Deemed  Options  or  portions  thereof
 surrendered  upon  the  exercise  of  rights  shall  not  be  available  for
 subsequent awards under the 2005 Plan.

      (e)  If neither the right nor, in the case of a right (whether  primary
 or additional)  with  a  related option,  the  related option  is  exercised
 before the end of the day on which the right ceases to be exercisable,  such
 right shall be deemed exercised as  of such date and, subject to  Section 19
 hereof, a payment in the amount prescribed by Section 9(b) or  Section 9(c),
 as the case may be, shall be paid to the employee in cash.

 Section 10    Incentive Stock Options
               -----------------------

      (a)  The Committee  shall designate  the  employees to  whom  incentive
 stock options, as  described in  Section 422 of  the Code  or any  successor
 section thereto, are to be awarded  under the 2005 Plan and shall  determine
 the number of shares of Common Stock  to be covered by each incentive  stock
 option. Incentive stock options  shall be awarded only  to employees of  the
 Corporation or  of its  corporate subsidiaries,  and non-employee  directors
 shall not be eligible  to receive awards of  incentive stock options. In  no
 event shall the aggregate  Fair Market Value Per  Share of all Common  Stock
 (determined at  the  time the  option  is  awarded) with  respect  to  which
 incentive stock options are exercisable for the first time by an  individual
 during any  calendar  year (under  all  plans  of the  Corporation  and  its
 subsidiaries) exceed $100,000.

      (b)  The purchase price of a share of Common Stock under each incentive
 stock option shall be determined by  the Committee; provided, however,  that
 in no event shall such price be less than 100% of the Fair Market Value  Per
 Share as of the date of grant (or 110%  of such Fair Market Value Per  Share
 if the holder of  the incentive stock option  owns stock of the  Corporation
 possessing more than  10% of  the combined voting  power of  all classes  of
 stock of the Corporation or any subsidiary).

      (c)  Except as  provided in  Sections 14 and  15 hereof,  no  incentive
 stock option shall  be exercised at  any time unless  the holder thereof  is
 then an employee  of the Corporation  or one of  its subsidiaries. For  this
 purpose, "subsidiary"  shall include  an entity  that becomes  a  subsidiary
 after the grant of an incentive stock option and which subsequently  employs
 the grantee  as long  as the  grantee was,  from the  date of  grant of  the
 incentive stock option until the date of transfer to the new subsidiary,  an
 employee of either the Corporation or a subsidiary of the Corporation.

      (d)  In the event  of amendments  to the  Code or  applicable rules  or
 regulations relating  to  incentive stock  options  subsequent to  the  date
 hereof, the Corporation shall amend the provisions of the 2005 Plan, and the
 Corporation and the  employees holding  such incentive  stock options  shall
 agree to amend outstanding option agreements to conform to such amendments.

 Section 11    Transferability of Awards
               -------------------------

      (a)  The Committee may, in its discretion, permit a holder of an award,
 other than an incentive stock option, to transfer all or any portion of  the
 award, or authorize all or a  portion of such award  granted to be on  terms
 which permit transfer  by such holder;  provided that, in  either case,  the
 transferee or transferees must be any child, stepchild, grandchild,  parent,
 stepparent, grandparent,  spouse,  former spouse,  sibling,  niece,  nephew,
 mother-in-law, father-in-law,  son-in-law, daughter-in-law,  brother-in-law,
 or sister-in-law,  including  adoptive  relationships,  in  each  case  with
 respect to the  original holder of  the award (the  "original holder"),  any
 person sharing  the original  holder's household  (other  than a  tenant  or
 employee of the Corporation), a trust in which these persons have more  than
 fifty percent  of  the beneficial  interest,  a foundation  in  which  these
 persons  (or  the  original  holder)  control the management  of assets,  or
 any  other entity in which these persons  (or the original holder) own  more
 than  fifty  percent  of  the  voting  interests  (collectively,  "permitted
 transferees"); provided further that, (i) there may be no consideration  for
 any such transfer  and (ii) subsequent  transfers of  awards transferred  as
 provided above shall be prohibited except  subsequent transfers back to  the
 original holder and transfers to other permitted transferees of the original
 holder.

      (b)  An award may, in the Committee's  discretion, be transferred to  a
 permitted transferee,  pursuant to  a domestic  relations order  entered  or
 approved by a  court of  competent jurisdiction  only upon  delivery to  the
 Corporation of written notice of such transfer and a certified copy of  such
 order.

      (c)  Notwithstanding anything to  the contrary in  this Section 11,  an
 incentive stock option shall not be  transferable other than by will or  the
 laws of descent and distribution.  Except  as expressly permitted by Section
 11(a) and Section 11(b), awards shall not be transferable other than by will
 or the laws of descent and distribution.

      (d)  Following the  transfer  of  any award  as  contemplated  by  this
 Section 11, such award shall  continue to be subject  to the same terms  and
 conditions as were applicable immediately  prior to transfer, provided  that
 the provisions of the award relating to exercisability shall continue to  be
 applied with respect to the original holder and, following the occurrence of
 any such events  described therein, the  award shall be  exercisable by  the
 permitted transferee,  the recipient  under a  qualified domestic  relations
 order, the estate or heirs of a deceased award holder, or other  transferee,
 as applicable, only to the extent and  for the periods that would have  been
 applicable in the absence of the transfer.

      (e)  Any award holder desiring to transfer an award as permitted  under
 this Section 11  shall make  application therefor  in  the manner  and  time
 specified  by the Committee and shall comply  with such  other  requirements
 as the  Committee  may  require  to  assure  compliance with all  applicable
 securities laws. The Committee shall not give permission for such a transfer
 if it may not be made in  compliance with all applicable federal, state  and
 foreign securities laws.

      (f)  To the  extent the  issuance to  any permitted  transferee of  any
 shares of Common Stock issuable pursuant to awards transferred as  permitted
 in this Section 11 is not registered  pursuant to an effective  registration
 statement of  the Corporation  generally covering  the shares  to be  issued
 pursuant to the 2005 Plan, the Corporation shall not have any obligation  to
 register the  issuance  of any  such  shares of  Common  Stock to  any  such
 transferee.

 Section 12    Award and Delivery of Restricted Shares
               ---------------------------------------

      (a)  At the time an award of  restricted shares is made, the  Committee
 shall establish a  period or periods  of time (each  a "Restricted  Period")
 applicable to such award that shall not be more than 10 years. Each award of
 restricted shares  may  have a  different  Restricted Period  or  Restricted
 Periods. The Committee may, in its sole discretion, at the time an award  is
 made, provide for the incremental lapse  of Restricted Periods with  respect
 to a portion or portions of the restricted shares awarded, and for the lapse
 or termination of  restrictions upon all  or any portion  of the  restricted
 shares upon the  satisfaction of other  conditions in addition  to or  other
 than the expiration of the applicable  Restricted Period. The Committee  may
 also, in its sole  discretion, shorten or terminate  a Restricted Period  or
 waive any  conditions for  the lapse  or  termination of  restrictions  with
 respect to all or any portion of the restricted shares. Notwithstanding  the
 foregoing, all restrictions  shall lapse or  terminate with  respect to  all
 restricted shares upon  the earliest of  (i) the employee's retirement  from
 employment at or after Retirement Age (as defined in Section 14 hereof),  or
 (ii) the employee's death or total and  permanent disability (as defined  in
 Section 15 hereof), or (iii) a Change in  Control (as defined in  Section 22
 hereof).

      (b)  At the time a grant of restricted shares is made to an employee, a
 stock certificate representing a number of  shares of Common Stock equal  to
 the number of such restricted shares  shall be registered in the  employee's
 name but shall  be held in  custody by the  Corporation for such  employee's
 account. The employee shall  generally have the rights  and privileges of  a
 stockholder as to such restricted shares, including, without limitation, the
 right to vote such  restricted shares, except that,  subject to the  earlier
 lapse or  termination  of restrictions  as  herein provided,  the  following
 restrictions shall apply: (i) the employee shall not be entitled to delivery
 of the stock certificate evidencing  restricted shares until the  expiration
 or  termination  of  the  Restricted Period applicable  to  such shares  and
 the  satisfaction  of  any  other  conditions  prescribed by the  Committee;
 (ii) none of the shares then subject to a Restricted  Period  shall be sold,
 transferred, assigned,  pledged,  or  otherwise encumbered  or  disposed  of
 during the  Restricted  Period  applicable to  such  shares  and  until  the
 satisfaction of  any  other  conditions prescribed  by  the  Committee;  and
 (iii) all of  the  shares then  subject  to  a Restricted  Period  shall  be
 forfeited and all  rights of the  employee to such  restricted shares  shall
 terminate without further obligation on the  part of the Corporation if  the
 employee ceases  to  be  an  employee  of the  Corporation  or  any  of  its
 subsidiaries before the expiration or termination of such Restricted  Period
 and the satisfaction  of any other  conditions prescribed  by the  Committee
 applicable to such  restricted shares.  Dividends in  respect of  restricted
 shares shall be currently  paid; provided, however, that  in lieu of  paying
 currently a dividend  of shares  of Common  Stock in  respect of  restricted
 shares, the Committee may, in its  sole discretion, register in the name  of
 an employee a  stock certificate representing  such shares  of Common  Stock
 issued as a  dividend in  respect of restricted  shares, and  may cause  the
 Corporation to hold such certificate in  custody for the employee's  account
 subject to the same terms and conditions as such restricted shares. Upon the
 forfeiture of any restricted shares, such forfeited restricted shares  shall
 transfer to  the Corporation  without further  action by  the employee.  The
 employee  shall  have  the  same  rights and privileges,  and  be subject to
 the same restrictions, with  respect  to  any  shares  received  pursuant to
 Section 17 hereof.

      (c)  Upon the  expiration  or  termination  of  the  Restricted  Period
 applicable to  such shares  and the  satisfaction  of any  other  conditions
 prescribed by the Committee or at such earlier time as provided for  herein,
 the restrictions applicable to the shares subject to such Restricted  Period
 shall lapse and a certificate for a  number of shares of Common Stock  equal
 to the number of  restricted shares with respect  to which the  restrictions
 have  expired  or  terminated   shall  be  delivered,   free  of  all   such
 restrictions, except any that may be imposed by law, to the employee or  the
 employee's Beneficiary  (as defined  below). The  Corporation shall  not  be
 required to deliver any  fractional share of Common  Stock but shall pay  to
 the employee or the employee's Beneficiary, in lieu thereof, the product  of
 (i) the Fair  Market  Value  per  Share  (determined  as  of  the  date  the
 restrictions expire or terminate), and (ii) the fraction of a share to which
 such employee would otherwise be entitled. Subject to Section 19 hereof,  no
 payment will be required from the employee upon the issuance or delivery  of
 any Common Stock upon the expiration  or termination of a Restricted  Period
 with respect to restricted shares.  An employee's "Beneficiary" is a  person
 or persons (natural or otherwise) designated by such employee, pursuant to a
 written instrument executed by such employee  and filed with the  Committee,
 to receive any benefits  payable hereunder in the  event of such  employee's
 death.

 Section 13    [DELETED]
               ---------

 Section 14    Termination of Employment
               -------------------------

      (a)  Unless otherwise determined  by the Committee,  in the event  that
 the employment of an employee  to whom an option  or right has been  granted
 under the 2005 Plan shall be  terminated (except as set forth in  Section 15
 hereof), such option  or right may,  subject to the  provisions of the  2005
 Plan, be exercised (to the extent that the employee was entitled to do so at
 the termination of his employment) at any time within three (3) months after
 such termination or, in  the case of a  non-employee director who ceases  to
 serve as a member of the Board or an employee whose termination results from
 retirement from  employment  at or  after  the  attainment of  age  65  (the
 "Retirement Age"), within five (5) years after such cessation of service  or
 termination, but in  no event later  than the date  on which  the option  or
 right expires; provided, however, that,  unless otherwise determined by  the
 Committee, any  option or  right held  by an  employee whose  employment  is
 terminated for cause (as determined by the Board in its sole discretion)  or
 an employee who leaves the employ  of the Corporation voluntarily shall,  to
 the extent not theretofore exercised, terminate upon the date of termination
 of employment; and provided further, that (except as set forth in Section 15
 hereof)  no  incentive  stock  option  may  be  exercised  more  than  three
 (3) months after the employee's termination of employment.

      (b)  Unless otherwise determined  by the Committee,  if an employee  to
 whom restricted shares  have been granted  ceases to be  an employee of  the
 Corporation or of  a subsidiary prior  to the end  of the Restricted  Period
 applicable to  such shares  and the  satisfaction  of any  other  conditions
 prescribed by  the Committee  for any  reason other  than death,  total  and
 permanent disability (as defined in  Section 15 hereof), or retirement  from
 employment at or after  the Retirement Age,  the employee shall  immediately
 forfeit all shares then subject to such Restricted Period.

      (c)  Awards granted under the  2005 Plan shall not  be affected by  any
 change of  duties or  position so  long as  the holder  continues to  be  an
 employee of the Corporation or any subsidiary thereof. Any option, right  or
 restricted share agreement, and  any rules and  regulations relating to  the
 2005 Plan, may contain such provisions  as the Committee shall approve  with
 reference to the  determination of the  date employment  terminates and  the
 effect of leaves of absence. Any  such rules and regulations with  reference
 to any award agreement shall be  consistent with the provisions of the  Code
 and any applicable  rules and regulations  thereunder. Nothing  in the  2005
 Plan or in any award granted pursuant to the 2005 Plan shall confer upon any
 employee any  right to  continue in  the employ  of the  Corporation or  any
 subsidiary or interfere in any way with the right of the Corporation or  any
 subsidiary to terminate such employment at any time.

 Section 15    Death or Total and Permanent Disability of Employee
               ---------------------------------------------------

      If an employee to whom  an option or right  has been granted under  the
 2005 Plan  shall  die or  suffer  a  total and  permanent  disability  while
 employed by the  Corporation or a  subsidiary, such option  or right may  be
 exercised, to the  extent that the  employee was entitled  to do  so at  the
 termination of  employment  (including  by reason  of  death  or  total  and
 permanent disability), as set forth herein  by the employee, legal  guardian
 of the  employee (unless  such exercise  would disqualify  an option  as  an
 incentive stock option),  a legatee or  legatees of the  employee under  the
 employee's last  will,  or by  the  employee's personal  representatives  or
 distributees, whichever is applicable, at any time within one (1) year after
 the date of the employee's death  or total and permanent disability, but  in
 no event  later than  the date  on  which the  option or  right  terminates.
 Notwithstanding the  above,  if an  employee  who terminates  employment  by
 reason of total and permanent disability shall die, a legatee or legatees of
 such employee  under the  employee's  last will,  or  the executor  of  such
 employee's estate, shall  only have  the right  to exercise  such option  or
 right, to  the  extent that  the  employee was  entitled  to do  so  at  the
 termination of employment, during the period  ending one (1) year after  the
 date of the  employee's termination  of employment  by reason  of total  and
 permanent disability. For purposes hereof, "total and permanent  disability"
 shall have the meaning set forth  in the Corporation's long-term  disability
 policy.

 Section 16    [DELETED]
               ---------

 Section 17    Adjustments upon Changes in Capitalization, etc.
               ------------------------------------------------

      Notwithstanding any other provision of the 2005 Plan, the Committee may
 at any time make or provide  for such adjustments to  the 2005 Plan, to  the
 number and  class  of shares  available  thereunder or  to  any  outstanding
 options, rights or restricted shares as it shall deem appropriate to prevent
 dilution or enlargement, including  adjustments in the  event of changes  in
 the outstanding  Common  Stock  by reason  of  stock  dividends,  split-ups,
 recapitalizations, mergers,  consolidations,  combinations or  exchanges  of
 shares, separations,  reorganizations, liquidations  and  the like.  In  the
 event of any  offer to  holders of Common  Stock generally  relating to  the
 acquisition of their shares,  the Committee may make  such adjustment as  it
 deems equitable in  respect to  outstanding options,  rights and  restricted
 shares including,  in the  Committee's discretion,  revision of  outstanding
 options, rights and  restricted shares so  that they may  be exercisable  or
 redeemable for or payable  in the consideration  payable in the  acquisition
 transaction. Any such  determination by the  Committee shall be  conclusive.
 Any fractional shares resulting from such adjustments to options, rights, or
 restricted shares shall be eliminated.

 Section 18    Termination and Amendment
               -------------------------

      The Board shall have the right to amend, suspend or terminate the  2005
 Plan at any time; provided, however,  that an amendment shall be subject  to
 stockholder approval if such approval is  required to comply with the  Code,
 the rules of any securities exchange or market system on which securities of
 the Company are listed or admitted to trading at the time such amendment  is
 adopted or  any  other  applicable  laws. The  Board  may  delegate  to  the
 Committee all or any portion of its authority under this Section 18. If  the
 2005 Plan is terminated, the terms  of the 2005 Plan shall,  notwithstanding
 such termination,  continue  to  apply  to  awards  granted  prior  to  such
 termination. In addition, except in the case of adjustments made pursuant to
 Section 17 hereof, no suspension, termination, modification or amendment  of
 the 2005 Plan  may, without the  consent of the  employee to  whom an  award
 shall theretofore have  been granted, adversely  affect the  rights of  such
 employee under such award.

 Section 19    Withholding Tax
               ---------------

      (a)  The Corporation shall have  the right to  deduct from all  amounts
 paid in cash in consequence of the exercise of an option or right under  the
 2005 Plan any taxes required by law to be withheld with respect to such cash
 payments. Where an employee or other person is entitled to receive shares of
 Common Stock pursuant to the  exercise of an option  or a right pursuant  to
 the 2005 Plan, the Corporation shall have the right to require the  employee
 or such other person to pay to the Corporation the amount of any taxes  that
 the Corporation is required to withhold  with respect to such shares or,  in
 lieu thereof, to retain, or sell without notice, a sufficient number of such
 shares to cover  the amount required  to be withheld.  Upon the  disposition
 (within the meaning of Section 424(c) of the Code) of shares of Common Stock
 acquired pursuant to the exercise of an incentive stock option prior to  the
 expiration of the  holding period requirements  of Section 422(a)(1) of  the
 Code, the employee shall  be required to give  notice to the Corporation  of
 such disposition and  the Corporation shall  have the right  to require  the
 payment of the amount of any taxes that  are required by law to be  withheld
 with respect to such disposition.

      (b)  Upon termination  of the  Restricted Period  with respect  to  any
 restricted shares (or such earlier time, if  any, as an election is made  by
 the employee under Section 83(b)  of the Code,  or any successor  provisions
 thereto, to  include  the value  of  such  shares in  taxable  income),  the
 Corporation shall have  the right to  require the employee  or other  person
 receiving shares of Common Stock in respect of such restricted shares to pay
 to the Corporation the amount of  taxes that the Corporation is required  to
 withhold with respect to such shares of Common Stock or, in lieu thereof, to
 retain or sell without notice a sufficient number of shares of Common  Stock
 held by it  to cover  the amount required  to be  withheld. The  Corporation
 shall have  the right  to deduct  from all  dividends paid  with respect  to
 restricted shares the amount  of taxes that the  Corporation is required  to
 withhold with respect to such dividend payments.

 Section 20    Written Agreements
               ------------------

      Each award of options, rights or  restricted shares shall be  evidenced
 by a written agreement, executed by the employee and the Corporation,  which
 shall contain such restrictions, terms and  conditions as the Committee  may
 require.

 Section 21    Effect on Other Stock Plans
               ---------------------------

      The adoption of the 2005 Plan shall have no effect on awards made or to
 be made pursuant to other plans covering employees of the Corporation or its
 subsidiaries, or any predecessors or successors thereto.

 Section 22    Change in Control
               -----------------

      (a)  For purposes of  this 2005 Plan,  the phrase  "Change in  Control"
 means a change in ownership or  control of the Corporation effected  through
 any of the following means:

           (i)  a merger or  consolidation of  the Corporation  with or  into
      another  entity,  or the exchange  of  securities  (other than a merger
      or consolidation)  by  the  holders  of  the  voting  securities of the
      Corporation and the holders of voting  securities of any other  entity,
      in either case in which the stockholders of the Corporation immediately
      before the transaction do  not own 50% or  more of the combined  voting
      power of the voting  securities of the surviving  entity or its  parent
      immediately after the transaction;

           (ii)  any  merger  in  which  the  Corporation  is  the  surviving
      entity  but  in which securities possessing more than 50%  of the total
      combined voting  power  of the Corporation's outstanding securities are
      transferred to a person or persons  different from the persons  holding
      those securities immediately prior to such merger;

           (iii)  the  sale,  transfer  or   other  disposition   of  all  or
      substantially  all  of  the  assets  of  the  Corporation  in  complete
      liquidation or dissolution of the Corporation;

           (iv) the acquisition, at any  time after the  date hereof, by  any
      "person" or "group"  of "beneficial ownership"  (as each  such term  is
      used in Regulation 13D  promulgated under the  1934 Act) of  securities
      possessing more than  50% of  the total  combined voting  power of  the
      Corporation's outstanding securities pursuant  to a tender or  exchange
      offer made to  the Corporation's stockholders  the acceptance of  which
      the Board has not recommended; or

           (v)  a  change  in  the  composition   of  the  Board  such   that
      individuals who on the day immediately following the effective date  of
      the 2005 Plan (the "Determination Date") constitute the members of  the
      Board and any new director, whose  election to the Board or  nomination
      for election  to  the  Board  by  the  Corporation's  stockholders  was
      approved by a  vote of at  least a majority  of the  directors then  in
      office who either  were directors at  the Determination  Date or  whose
      election or nomination for election  was previously so approved,  cease
      for any reason to constitute at least a majority of the Board.

      (b)  Upon the occurrence of a Change  in Control, with respect only  to
 awards held by individuals who are employees or directors of the Corporation
 (and their permitted transferees pursuant  to Section 11) at the  occurrence
 of the  Change in  Control, (i) all  outstanding  rights and  options  shall
 immediately become  fully vested  and exercisable  in full,  including  that
 portion of any right or option that pursuant to the terms and provisions  of
 the applicable award  agreement had not  yet become  exercisable (the  total
 number of shares of Common Stock  to which a right  or an option relates  is
 referred to herein as the "Total Shares"); and (ii) the Restricted Period of
 any restricted shares shall immediately be accelerated and the  restrictions
 shall expire. Nothing  in this Section 22(b)  shall impose on  a holder  the
 obligation to exercise any  award immediately before or  upon the Change  of
 Control, nor shall the holder forfeit the right to exercise the award during
 the remainder of  the original  term of  the award  because of  a Change  in
 Control or  because the  holder's employment  is terminated  for any  reason
 following a Change in Control.

      (c)  The Corporation shall  attempt to keep  all holders informed  with
 respect to any  Change in Control  to the same  extent that the  Corporation
 informs its stockholders of any such event.

 Section 23    Headings
               --------

      Headings in this 2005  Plan are inserted for  convenience only and  are
 not to be considered in the construction of the provisions hereof.EX-4.5

                        EMPLOYMENT AND SERVICE AGREEMENT

EMPLOYMENT  AND  SERVICE   AGREEMENT   between   EuroTrust  A/S,  a  corporation
established  under  the  laws  of  the  Kingdom  of  Denmark,  with  offices  at
Poppelgardvej  11-13 2860 Soborg,  Denmark,  (the  "Company") and Aldo Petersen,
residing at Sponnecksvej 16 DK-2820, Gentofte, Denmark (the "Executive").

      WHEREAS, the Executive has been employed as the Chief Executive Officer of
the Company since 1 December, 1988;

      WHEREAS,  the Executive and the Company are parties to a Service Agreement
made as of 1 July,  2001;  and

      WHEREAS,  the  Executive  and  the  Company  desire  to  enter  into a new
Employment and Service Agreement effective as of 1 January, 2005

      NOW,  THEREFORE,  for good and  valuable  consideration,  it is  agreed as
follows:

      1.    TERM.  Subject  to the  terms  and  conditions  hereof,  the term of
employment  of the  Executive  under  this  Agreement  shall  be for the  period
commencing  on 1 January  2005 and  terminating  as provided in Section 6 hereof
(the "Employment Term").

      2.    DUTIES  AND  RESPONSIBILITIES.   During  the  Employment  Term,  the
Executive shall serve as Chief Executive Officer of the Company. He shall report
to, and be subject to, the  direction of the  Company's  Board of Directors  and
shall perform such duties and  responsibilities  commensurate with his title and
position as may be assigned to

<PAGE>

him from time to time by the Board of Directors.  The Executive  shall work on a
full time basis and shall devote his time,  energy and attention to the business
of the Company.

      3.    COMPENSATION.  In payment  for the  services  to be  rendered by the
Executive  hereunder:

      (a)   The  Executive  shall be paid at the annual  salary at a rate of DKK
1,800,000  (the  "Annual  Salary"),  which  shall be  payable  in equal  monthly
payments  in arrears  on the last day of each  month;  the Annual  Salary may be
increased from time to time at the sole  discretion of the Board of Directors of
the Company;

      (b)   The  Executive  may at his option direct the Company to directly pay
certain expenses of Executive which may NOT be considered to be business related
expenses, such as family travel expenses.  Executive shall advise the Company as
to that portion of his Annual  Salary which he wishes to allocate to the payment
of such expenses

      (c)   In addition to the Annual  Salary,  Executive  shall be paid a bonus
for each year or part thereof during the Employment  Term,  which bonus shall be
equal to 2.5% of the net income  before  taxes,  if any,  of the Company and its
consolidated  subsidiaries  for such year,  as  reported  by the  Company on its
annual report as filed with the United States Securities and Exchange Commission
or if the Company shall not be required to file such annual report,  as reported
to the  shareholders  of the Company,  as required by the laws of the Kingdom of
Denmark.  Such bonus, if any, shall be paid within 20 days of the filing of such
annual report or the report to the shareholders, as the case may be.

      (d)   The Company hereby grants to the  Executive,  effective 17 May, 2005
an option to purchase 1,350,000 ordinary shares DKK1.25 of the Company (equal to
225,000  ADRs) at a price of USD $4.75  for each six  ordinary  shares  DKK 1.25
(equal to

                                       2
<PAGE>

one ADR),  the closing price on an ADR on the NASDAQ Small Cap Market on 16 May,
2005,  such  option to expire on 30 April,  2015 and having  such other terms as
will be set forth in an option  agreement to be entered into between the Company
and the Executive.

      4.    EXPENSES AND BENEFITS.

      (a)   The  Company  shall,  consistent  with its policy of  reporting  and
reimbursement of business  expenses,  reimburse  Executive for such ordinary and
necessary  business  related  expenses as shall be incurred by  Executive in the
course of the performance of his duties under this Agreement.

      (b)   Executive  shall be  entitled to holidays  (vacation)  annually,  in
accordance  with the provisions of the Holidays Act in force in Denmark,  as the
same may be amended from time to time.

      (c)   The Executive shall decide the time of the taking of his holidays in
consultation  with the Board of  Directors  which  shall take into  account  the
requirements of the Company.

      (d)   The Executive shall not be paid any holiday  allowance as may be set
forth in the  Holidays  Act,  but in lieu  thereof,  the  Company  shall pay the
Executive DKK 50,000.00 in connection with his holidays.

      (e)   The Company shall provide the  Executive  with a company  automobile
(the  "Company  Car").  The Company shall pay all expenses  associated  with the
operation  of  the  Company  Car,  including  fuel,  maintenance,   repairs  and
insurance.  The  Executive  may  use the  Company  Car  for  private  use at the
Company's expense.

      (f)   Upon  termination  of this  Agreement for any reason,  the Executive
shall at his sole option (to be exercised within 30 days of such termination) be
entitled to

                                       3
<PAGE>

purchase  the Company Car for an amount  which is equal to the lesser of (i) the
book  value  of the  Company  Car on the  books  of the  Company  at the date of
termination  or (ii) the fair  market  value of the  Company  Car at the date of
termination.

      (g)   The  Company  shall  make an  annual  pension  contribution  for the
Executive which shall be equal to 15% of the Executive's Annual Salary.

      (h)   The Company shall pay for one or more life  insurance and disability
insurance  policies for the Executive,  with the beneficiary of such policies to
be as named from time to time by the Executive. The amount and specific coverage
of such  policies to be as chosen by the  Executive;  provided  that the maximum
annual premiums to be paid by the Company for all such policies shall not exceed
DKK 100,000.

      5.    TERMINATION.  The Executive's employment hereunder may be terminated
under the following circumstances:

      (a)   This Agreement shall not have a fixed  termination date; the Company
may terminate  this  Agreement at its sole  discretion as of the last day of any
calendar year by providing to the Executive  written notice of such  termination
at least 30 months in advance of such  termination  date  (I.E.  if the  Company
wishes to terminate  this  Agreement as of 31 December,  2008 it must notify the
Executive of such termination prior to 1 July, 2006).

      (b)   The  Executive may terminate  this  Agreement  upon six months prior
written notice to the Company.

      (c)   This  Agreement  shall  automatically  terminate  upon the  death of
Executive in which event the Company  shall pay to the widow and/or  children of
the  Executive an amount equal to one-half of the  Executive's  Annual Salary at
the time of his death.

                                       4
<PAGE>

      (d)   The  Company may  terminate  this  Agreement  at any time during the
Employment Term for "cause". For purposes of this subsection 5 (d) "cause" shall
mean (i)  breach by  Executive  of any of the  covenants  set forth in Section 6
hereof,  (ii)  negligence  or  malfeasance  on the part of the  Executive in the
performance of his duties  hereunder  that causes  material harm to the Company,
and (iii) the conviction of the Executive, by a court of competent jurisdiction,
of a felony or other crime involving moral  turpitude.  Termination  pursuant to
this subsection 5 (d) shall be effective  immediately  upon giving the Executive
written notice thereof stating the reason or reasons therefor.

      6.    EXECUTIVE COVENANTS.

      (a)   The  Executive  agrees not to use or  disclose,  either while in the
Company's  employ  or at any time  thereafter,  except  with the  prior  written
consent of the Board of Directors,  any trade secrets,  proprietary information,
or other  information  that  the  Company  considers  confidential  relating  to
processes,  suppliers,  customers,   compositions,   improvements,   inventions,
operations, processing, marketing, distributing, selling, cost and pricing data,
or master files utilized by the Company,  not presently  generally  known to the
public,  and which is, obtained or acquired by the Executive while in the employ
of the Company, whether before or after the date of this Agreement.

      (b)   During  the  term of this  Agreement  and for a  period  of one year
immediately following the termination of this Agreement for any reason,  whether
with or without cause,  Executive  shall not,  directly or indirectly,  solicit,
induce,  encourage  or attempt to  influence  any  client,  customer,  employee,
consultant,  independent  contractor,  or supplier of the Company to cease to do
business or terminate his employment with the

                                       5
<PAGE>

Company, and shall not engage in (as a principal,  partner,  director,  officer,
agent,  employee,  consultant or otherwise) or be financially  interested in any
business  which at the  time is a  direct  competitor  of the  Company.  Nothing
contained in this  Section 6 (b) shall  prevent the  Executive  from holding for
investment not more than ten percent (10%) of any class of equity  securities of
a  company  whose  securities  are  publicly  traded  or  from  engaging  in any
activities that are not in direct  competition  with the business  activities of
the  Company.  In case of any breach by the  Executive of this Section 6 (b) the
Executive  agrees that the Company may obtain a restrictive  injunction  without
security,  and Executive agrees to pay to the Company all damages caused by such
breach,  which  damages  shall  include all expenses  incurred by the Company in
obtaining any such  injunction  and/or damage  award,  including all  reasonable
legal fees.

      7.    SUCCESSORS;  BINDING  AGREEMENT.  This agreement  shall inure to the
benefit  of  and  be   enforceable   by  the   Executive's   personal  or  legal
representatives,  executors,  administrators,  successors,  heirs, distributees,
devisees and legatees.  If the Executive should die while any amount would still
be payable  hereunder if the Executive had continued to live,  all such amounts,
unless otherwise provided herein,  shall be paid in accordance with the terms of
this Agreement to Executive's devisee, legatee or other designee or, if there be
no such designee, to the Executive's estate.

      8.    AMENDMENT;  WAIVER. No provisions of this Agreement may be modified,
supplemented, waived or discharged unless such waiver, modification or discharge
is agreed to in writing signed by the Executive and the Company.

      9.    APPLICABLE  LAW.  The  validity,  interpretation,  construction  and
performance  of this  Agreement  shall be governed by the laws of the Kingdom of

                                       6
<PAGE>

Denmark. Any dispute between the parties with respect to this Agreement shall be
settled  by  arbitration  in  accordance  with the  Danish  law on the  Rules of
Conciliation  and  Arbitration and any award shall be final and binding upon the
parties.

      10.   NOTICES.  Any notice,  request,  instruction or other document to be
given hereunder by any party to the other party shall be in writing and shall be
deemed to have been duly given when delivered  personally or five (5) days after
dispatch by registered mail,  postage prepaid,  to the party to whom the same is
so given or made;  to the  address  for such  party as is set forth on the first
page of this  Agreement or to such other  address as the one party shall specify
to the other party in writing.

      11.   ENTIRE  AGREEMENT;  OLD  AGREEMENT.  This  Agreement  sets forth the
entire  agreement  of the  parties  hereto  in  respect  of the  subject  matter
contained herein.  The parties agree that the Old Agreement is hereby terminated
and canceled as of 1 January, 2005.

      IN WITNESS  WHEREOF,  the parties have executed this  Agreement on 17 May,
2005.

                                             BY:
                                                 -------------------------------

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

                                       7

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