Document:

June 19, 2001

Mr. Michael J. Sicilian
78 Fountain Drive
Ringwood,NJ 07456

         Re:   MIM Health Plans and Subsidiaries
               ---------------------------------

Dear Michael:

         MIM Health  Plans,  Inc., a Delaware  corporation  (the  "Company"),  a
wholly  owned  subsidiary  of MIM  Corporation  ("MIM")  is pleased to offer you
employment as the President of the Company's BioScrip Infusion division,  on the
terms and subject to the conditions set forth below. The terms and conditions of
your employment would be as follows:

1. POSITION AND DUTIES:       President  of  the  Company's   BioScrip  infusion
                              division.

                              In such capacity, you shall be responsible for all
                              sales,  marketing and  operations of the Company's
                              BioScrip   infusion   division,    including   the
                              Company's American Disease Management  Associates,
                              LLC  subsidiary.   In  such  capacity,   you  will
                              faithfully  perform  the duties of said office and
                              position  and such other  duties of an  executive,
                              managerial  and   administrative   nature  as  are
                              specified and designated  from time to time by the
                              Company's and MIM's Board of Directors.

                              You will report  primarily to, and shall have such
                              further  duties as shall be assigned to you by the
                              Chief Executive Officer of the Company, subject to
                              the authority of MIM's Board of Directors. Subject
                              to the terms and conditions of this Agreement, you
                              acknowledge   and  understand   that  you  are  an
                              employee at will.

2. BASE COMPENSATION:         Your  base  salary  will be at an  annual  rate of
                              $225,000.00  per year,  payable  bi-weekly,  or at
                              such other times as other employees of the Company
                              are paid.

3. LONG-TERM INCENTIVE
    COMPENSATION:             As further compensation hereunder,  effective upon
                              the later to occur of the date you  commence  your
                              employment  with  the  Company  and the  date  you

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                              execute definitive agreements with respect to each
                              such  grant,  the  Company  would grant to you (i)
                              100,000   options   ("Options")  to  purchase  the
                              Company's  common  stock,  par value  $0.0001  per
                              share  ("Common  Stock");  (ii) 5,000  performance
                              units ("Performance Units"),  having the terms and
                              conditions  set  forth in a  definitive  agreement
                              with respect to the Performance  Units;  and (iii)
                              15,000 performance shares  ("Performance  Shares")
                              of Common Stock,  having the terms and  conditions
                              set forth in a definitive  agreement  with respect
                              to the Performance  Shares. The Options shall vest
                              in equal  installments  on the  first,  second and
                              third  anniversary  dates of your employment.  The
                              grant and vesting of your options would be subject
                              to the terms and  conditions set forth in the form
                              of Option Agreement.  Such options shall be priced
                              at the  closing  stock  price on the  trading  day
                              immediately preceding your first day of employment
                              with the Company.

4. TRANSPORTATION
   ALLOWANCE:                 During your  employment,  the Company will provide
                              you with a monthly  allowance of $1000 for the use
                              of an automobile.

5. PARTICIPATION
   IN HEALTH
   AND OTHER
   BENEFIT PLANS              During your employment with the Company, you shall
                              be permitted,  if and to the extent  eligible,  to
                              participate  in  all  employee  health  and  other
                              related benefit plans,  policies and practices now
                              or  hereafter   available  to  members  of  senior
                              management  generally  and  maintained  by  or  on
                              behalf of the  Company,  including  the  Company's
                              medical  expense  reimbursement  plan (the "MERP")
                              and a life  insurance  policy equal to three times
                              your then annual salary. Nothing in this agreement
                              shall  preclude  the Company from  terminating  or
                              amending  any  such  plans  or  coverage  so as to
                              eliminate,  reduce or otherwise change any benefit
                              payable thereunder.

                              During  the  first  year of your  employment,  you
                              shall be eligible to  participate in the Company's
                              2001 Cash Bonus Program For Key Employees.  During
                              the first  calendar year of your  employment,  you
                              would  participate pro rata based on the number of
                              days  during  calendar  year  2001  that  you were
                              employed by the Company.

6. EXPENSES:                  Subject to such  policies as may from time to time
                              be   established   by  the   Company's   Board  of
                              Directors,  the Company would pay or reimburse you
                              for all reasonable and necessary expenses actually
                              incurred  or paid by you  during  the term of your
                              employment in the performance of your duties, upon

<PAGE>

                              submission  and  approval  of expense  statements,
                              vouchers  or  other   supporting   information  in
                              accordance  with the then  customary  practices of
                              the Company.

6. VACATION:                  You would be entitled  to four weeks (20  business
                              days) vacation during the term of your employment.

7. TERMINATION;
   SEVERANCE
   CHANGE OF CONTROL:         If your  employment with the Company is terminated
                              for any reason  whatsoever,  whether by you or the
                              Company,  the Company  would not be liable for, or
                              obligated to pay you any bonus compensation or any
                              other compensation contemplated hereby not already
                              paid or not  already  accrued  at the date of such
                              termination, and no other benefits shall accrue or
                              vest   subsequent   to  such  date.   If  you  are
                              terminated by the Company (or any successor) other
                              than for "Cause" (as defined  below),  you will be
                              entitled to receive  severance  payments  equal to
                              six months of salary at your then  current  salary
                              level,  payable in  accordance  with the Company's
                              then applicable  payroll  practices and subject to
                              all   applicable   federal,    state   and   local
                              withholding.   For  purposes  of  this  Agreement,
                              "Cause"  shall  mean  any  of the  following:  (1)
                              Commission  by  you  of  criminal   conduct  which
                              involves   moral   turpitude;   (2)   acts   which
                              constitute fraud or self-dealing by or on the part
                              of you  against  the  Company  or MIM,  including,
                              without     limitation,     misappropriation    or
                              embezzlement;   (3)  your  willful  engagement  in
                              conduct  which  is  materially  injurious  to  the
                              Company or MIM;  or (4) your gross  misconduct  in
                              the  performance  of duties as an  employee of the
                              Company  or MIM,  including,  without  limitation,
                              failure to obey lawful written instructions of the
                              Board of  Directors  of the  Company  or MIM,  any
                              committee  thereof or any executive officer of the
                              Company or MIM or failure to correct  any  conduct
                              which   constitutes   a  breach  of  any   written
                              agreement between you and the Company or MIM or of
                              any  written  policy  promulgated  by the Board of
                              Directors  of  either  the  Company  or  MIM,  any
                              committee  thereof or any executive officer of the
                              Company or MIM, in either case after not less than
                              ten  days'   notice  in  writing  to  you  of  the
                              Company's  intention  to  terminate  you  if  such
                              failure  is not  corrected  within  the  specified
                              period (or after such shorter notice period if the
                              Company  or MIM in good faith  deems such  shorter
                              notice   period  to  be   necessary   due  to  the
                              possibility  of material  injury to the Company or
                              MIM).  In addition,  if (A) you are  terminated by

<PAGE>

                              the  Company or MIM (or any  successor  or either)
                              within  one  year of a  "Change  of  Control"  (as
                              defined below) or (B) your salary is reduced after
                              the  Change of  Control  from your  current  level
                              immediately  prior to the  Change of  Control,  or
                              within  such one (1)  year  period,  you  elect to
                              terminate your employment after the Company or MIM
                              or a  successor  entity  materially  reduces  your
                              authority, duties and responsibilities, or assigns
                              you  duties  materially   inconsistent  with  your
                              position or positions with the Company or MIM or a
                              successor entity  immediately prior to such Change
                              of  Control,   (I)  you  shall  receive  severance
                              payments  equal to six months of your then current
                              salary (and  reimbursement  for expenses  incurred
                              prior to the effective date of the  termination of
                              employment;  (II) all outstanding unvested Options
                              granted  to you  (or  hereafter  under  the  Bonus
                              Program)  and held by you  shall  vest and  become
                              immediately  exercisable  and shall  otherwise  be
                              exercisable in accordance with their terms and you
                              shall  become  vested  in  any  pension  or  other
                              deferred   compensation   other  than  pension  or
                              deferred  compensation under a plan intended to be
                              qualified  under  Section  401(a) or 403(a) of the
                              Internal  Revenue Code of 1986,  as amended;  (iv)
                              all  Performance  Units  granted  under  the Bonus
                              Program  and held by you  shall  vest  and  become
                              immediately  payable  at any time and from time to
                              time from and after the  termination  date, at the
                              maximum   target  rate  set  forth  in  the  Bonus
                              Program;  (v) all Performance Shares granted under
                              the Bonus  Program  and held by you shall vest and
                              become   immediately   transferable  free  of  any
                              restrictions on transferability of the Performance
                              Shares  (other  than   restrictions   on  transfer
                              imposed under Federal and state  securities  laws)
                              by you and all other restrictions  imposed thereon
                              shall   cease   other  than  those   restrictions,
                              limitations  and/or  obligations  contained in the
                              Bonus   Program   that   expressly   survive   the
                              termination of your employment with the Company or
                              any successor entity, as the case may be; and (vi)
                              you  shall  have no  further  rights  to any other
                              compensation or benefits hereunder on or after the
                              termination  of  employment  or any  other  rights
                              hereunder.

                              For  purposes  of  this   Agreement,   "Change  of
                              Control"  means the  occurrence  of one or more of
                              the  following:  (i) a "person" or "group"  within
                              the means the meaning of sections  13(d) and 14(d)
                              of the  Securities  and  Exchange Act of 1934 (the
                              "Exchange  Act")  becomes the  "beneficial  owner"
                              (within  the  meaning  of  Rule  l3d-3  under  the
                              Exchange  Act)  of  securities  of MIM  (including
                              options,  warrants,  rights  and  convertible  and
                              exchangeable  securities) representing 30% or more
                              of  the  combined   voting  power  of  MIM's  then
                              outstanding   securities   in  any   one  or  more
                              transactions   unless   approved   by   at   least
                              two-thirds  of  MIM's  Board  of  Directors   then
                              serving  at that  time;  provided,  however,  that
                              purchases by employee  benefit plans of MIM and by
                              MIM or its  affiliates  shall be  disregarded;  or
                              (ii) any sale,  lease,  exchange or other transfer
                              (in  one   transaction  or  a  series  of  related
                              transactions) of all, or substantially all, of the
                              operating assets of MIM or the Company; or (iii) a
                              merger or consolidation, or a transaction having a
                              similar  effect,  where (A) the  Company or MIM is
                              not the surviving corporation, (B) the majority of
                              the Common  Stock of MIM is no longer  held by the
                              stockholders  of  MIM  immediately  prior  to  the
                              transaction,  or (C) the  MIM's  Common  Stock  is
                              converted into cash,  securities or other property
                              (other  than the  common  stock of a company  into
                              which MIM or the Company is  merged),  unless such
                              merger,  consolidation  or similar  transaction is
                              with a  subsidiary  of the  Company or MIM or with
                              another company,  a majority of whose  outstanding
                              capital  stock is owned  by the  same  persons  or
                              entities  who own a majority of MIM's Common Stock

<PAGE>

                              at such  time;  or (iv) at any  annual or  special
                              meeting of  stockholders  of MIM at which a quorum
                              is present (or any  adjournments or  postponements
                              thereof),  or by written  consent in lieu thereof,
                              directors (each a "New Director" and  collectively
                              the "New Directors") then  constituting a majority
                              of MIM's Board of Directors  shall be duly elected
                              to serve as New  Directors  and such New Directors
                              shall have been elected by stockholders of MIM who
                              shall  be  an  (I)   "Adverse   Person(s)";   (II)
                              "Acquiring  Person(s)";  or (III) "40%  Person(s)"
                              (as each of the terms set forth in (I),  (II), and
                              (III) hereof are defined in that  certain  Amended
                              and Restated Rights Agreement, dated May 20, 1999,
                              between MIM and  American  Stock  Transfer & Trust
                              Company, as Rights Agent.

8. RESTRICTIVE COVENANT:      As  a  condition  to  your   employment  with  the
                              Company,  you will be  obligated  to enter  into a
                              restrictive covenant agreement between you and the
                              Company,    covering,    among    other    things,
                              non-competition    provisions,    non-solicitation
                              provisions,  and the  protection  of the Company's
                              trade  secrets.  A  copy  of  the  terms  of  this
                              agreement are attached hereto as Exhibit A.

9. OTHER TERMS:               Your employment,  restrictive covenants and option
                              agreements  will include other customary and usual
                              terms, provisions,  conditions and representations
                              as are found in the Company's similar arrangements
                              with its employees.
<PAGE>

10. CONDITION TO EMPLOYMENT:  Your  employment is conditioned on the approval of
                              your  employment and this letter  agreement by the
                              Board of Directors of the Company.

         Please call me to discuss any  questions or comments  that you may have
regarding  these  terms.  After  I  receive  your  agreement  to the  foregoing,
definitive  documentation  will be prepared.  I look forward to hearing from you
and working with you. Best regards.

                                   Sincerely yours,

                                   MIM HEALTH PLANS, INC.

                                   By:      /s/ Barry A. Posner
                                           ----------------------------
                                   Name:   Barry A. Posner
                                   Title:  Vice President & General Counsel

Agreed to and Accepted By:

/s/ Michael J. Sicilian
-----------------------

Michael J. Sicilian

<PAGE>

                                                                       Exhibit A

                              RESTRICTIVE COVENANTS

         Covenant Against Competition; Other Covenants. You acknowledge that (i)
the  principal  business  of the  Company  (for  purposes  of these  restrictive
covenants,  the "Company" shall include all  subsidiaries  and affiliates of MIM
Corporation, including MIM Health Plans, Inc.) is the provision of a broad range
of  services  designed  to  promote  the  cost-effective  delivery  of  pharmacy
benefits, including pharmacy benefit management services, claims processing, the
purchasing of  pharmaceutical  products on behalf of pharmacy  networks and long
term care facilities  (including  assisted living  facilities and nursing homes)
and specialty  pharmaceutical programs, the provision of infusion pharmaceutical
products  and services and home health care  products and  services,  mail order
pharmacy  services,  including  the  dispensing of  prescription  pharmaceutical
products,  and the sale and  distribution,  on a retail and wholesale  basis, of
OTC's, vitamins, supplements, herbals and other goods typically offered for sale
through a retail,  mail order or internet on-line  pharmacy (such business,  and
any and all other  businesses that after the date hereof,  and from time to time
during the Term,  become  material  with respect to the  Company's  then-overall
business,  herein being  collectively  referred to as the "Business");  (ii) the
Company is dependent on the efforts of a certain  limited  number of persons who
have developed,  or will be responsible  for developing the Company's  Business;
(iii) is national in scope;  (iv) your work for the Company will give you access
to the confidential affairs and proprietary information of the Company; (v) your
covenants and agreements contained in these Restrictive  Covenants are essential
to the business and goodwill of the Company; and (vi) the Company would not have
offered you  employment  but for the covenants and  agreements set forth herein.
Accordingly, you covenant and agree that:

                  (a) At any time  during your  employment  with the Company and
ending one year following (i)  termination of your  employment  with the Company
(irrespective  of the  reason  for  such  termination)  or (ii)  payment  of any
severance,  whichever occurs last, you shall not engage, directly or indirectly,
in sales or  marketing  or  otherwise  assisting  any company or other  business
entity  (which  includes,  without  limitation,   owning,  managing,  operating,
controlling, being employed by, giving financial assistance to, participating in
or being  connected in any material way with any person or entity other than the
Company),  engaged in (i) the  Business or (ii) any  material  component  of the
Business;  provided,  however,  that  the  Executive's  ownership  as a  passive
investor of less than two percent (2%) of the issued and outstanding  stock of a
publicly held corporation shall not be deemed to constitute competition.

                  (b) During and after the period during which you are employed,
you shall keep secret and retain in strictest confidence,  and shall not use for
his benefit or the benefit of others, except in connection with the Business and
affairs of the Company and its affiliates,  all confidential matters relating to
the  Company's  Business  and the business of any of its  affiliates  and to the
Company  and any of its  affiliates,  learned  by you  heretofore  or  hereafter
directly  or  indirectly  from  the  Company  or  any  of  its  affiliates  (the

<PAGE>

"Confidential Company Information"),  including, without limitation, information
with respect to (i) the strategic plans, budgets, forecasts, intended expansions
of product,  service,  or geographic  markets of the Company and its affiliates,
(ii) sales figures, contracts, agreements, and undertakings with or with respect
to  customers,  (iii)  profit  or loss  figures,  and (iv)  customers,  clients,
suppliers,  sources of supply and customer  lists,  and shall not disclose  such
Confidential  Company  Information  to anyone outside of the Company except with
the  Company's  express  written  consent  and except for  Confidential  Company
Information which is at the time of receipt or thereafter becomes publicly known
through no wrongful  act of you or is  received  from a third party not under an
obligation to keep such  information  confidential  and without  breach of these
Restrictive  Covenants or the Agreement.  Notwithstanding  the  foregoing,  this
section  (b) shall not apply to the  extent  that you are  acting to the  extent
necessary to comply with legal process;  provided that in the event that you are
subpoenaed  to testify or to produce any  information  or  documents  before any
court, administrative agency or other tribunal relating to any aspect pertaining
to the Company, you shall immediately notify the Company thereof.

                  (c) During the period commencing on the date hereof and ending
two years following the date upon which you shall cease to be an employee of the
Company or its  affiliates,  you shall not,  without the Company's prior written
consent,  directly  or  indirectly,  (i)  solicit  or  encourage  to  leave  the
employment  or  other  service  of the  Company  or any of its  affiliates,  any
employee or independent  contractor thereof or hire (on your behalf or any other
person or  entity)  any  employee  or  independent  contractor  who has left the
employment or other service of the Company or any of its  affiliates  within one
year  of  the  termination  of  such  employee's  or  independent   contractor's
employment  or  other  service  with the  Company  and its  affiliates,  or (ii)
solicit,  contact,  market to,  work for,  or assist  others in  soliciting  any
customer or client of the Company  with whom the Company was in contact  with or
was  providing  goods  and  services  to at the  time  of  your  termination  of
employment with the Company.  During such period, you will not, whether for your
own account or for the account of any other person,  firm,  corporation or other
business organization,  intentionally interfere with the Company's or any of its
affiliates'  relationship  with,  or endeavor to entice away from the Company or
any of its  affiliates,  any person who during the Term is or was a customer  or
client of the Company or any of its affiliates.

                  (d) All memoranda,  notes,  lists,  records,  property and any
other tangible product and documents (and all copies thereof) made,  produced or
compiled by you or made  available to you concerning the Business of the Company
and its affiliates shall be the Company's property and shall be delivered to the
Company at any time on request.

<PAGE>

 Rights and Remedies upon Breach of Restrictive Covenants.

                  (a) You acknowledge and agree that any breach by him of any of
the provisions of sections (a) through (d) above (the  "Restrictive  Covenants")
would result in irreparable  injury and damage for which money damages would not
provide an adequate remedy.  Therefore,  if you breach,  or threaten to commit a
breach of, any of the  Restrictive  Covenants,  the Company  and its  affiliates
shall have the following rights and remedies,  each of which rights and remedies
shall be  independent of the other and severally  enforceable,  and all of which
rights  and  remedies  shall be in  addition  to,  and not in lieu of, any other
rights and remedies  available to the Company and its affiliates under law or in
equity (including, without limitation, the recovery of damages):

                  (b) The right and  remedy  to have the  Restrictive  Covenants
specifically  enforced  (without  posting  bond  and  without  the need to prove
damages) by any court having equity jurisdiction, including, without limitation,
the  right  to an  entry  against  you of  restraining  orders  and  injunctions
(preliminary, mandatory, temporary and permanent) against violations, threatened
or actual, and whether or not then continuing, of such covenants.

                  (c) The right and remedy to require you to account for and pay
over to the  Company  and its  affiliates  all  compensation,  profits,  monies,
accruals,  increments or other benefits  (collectively,  "Benefits")  derived or
received by you as the result of any  transactions  constituting a breach of the
Restrictive  Covenants,  and you shall account for and pay over such Benefits to
the Company and, if applicable, its affected affiliates.

                  (d) You agree that in any action seeking specific  performance
or other  equitable  relief,  you will not  assert  or  contend  that any of the
provisions  of  these  Restrictive   Covenants  are  unreasonable  or  otherwise
unenforceable.  The  existence  of any claim or cause of action by you,  whether
predicated on the Agreement or otherwise,  shall not constitute a defense to the
enforcement of the Restrictive Covenants.

Agreed to and accepted by:

/s/ Michael J. Sicilian
--------------------------
Michael J. SicilianTHE SECURITY  REPRESENTED BY THIS CERTIFICATE OR OTHERWISE  CONTEMPLATED IN THIS
AGREEMENT  HAS BEEN  ACQUIRED  FOR  INVESTMENT  AND NOT  WITH A VIEW  TO,  OR IN
CONNECTION WITH, THE SALE OR DISTRIBUTION  THEREOF.  NO SUCH SALE OR DISPOSITION
MAY BE EFFECTED WITHOUT AN EFFECTIVE  REGISTRATION  STATEMENT RELATED THERETO OR
AN OPINION OF COUNSEL  SATISFACTORY TO THE COMPANY THAT SUCH REGISTRATION IS NOT
REQUIRED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.

                              STOCK BONUS AGREEMENT

THIS STOCK BONUS AGREEMENT  ("Agreement") is effective as of the 7th day of May,
2001, by and between Accesspoint Corporation,  a Nevada corporation ("Company"),
and  Rex  Alan  Sanders  an  individual  ("Employee").  Accesspoint  and/or  the
Employees  are  sometimes  herein  referred  to  individually  as a "party"  and
collectively as the "parties."

                                 R E C I T A L S

A.       WHEREAS, Employee is an employee of the Company;

B.       WHEREAS, on or about March 19, 1999 the Company adopted the Accesspoint
Corporation 1999 Stock Incentive Plan ("Plan");

C.       WHEREAS, the  Board  of  Directors of  the  Company  desire to grant to
Employee certain stock awards in the form of Preferred stock, Series A, pursuant
to the terms and conditions of this Agreement and the Plan.

NOW,  THEREFORE,  in consideration of the mutual promises  contained herein, and
other good and valuable consideration,  the receipt and sufficiency of which are
hereby acknowledged, the Parties hereto agree as follows:

                                   ARTICLE 1.

                            GRANT OF PREFERRED SHARES

1.1      CONDITIONAL AWARD OF PREFERRED SHARES.  For value received, the Company
hereby  conditionally  awards to Employee the number of shares of its  Preferred
Stock, Series A ("Shares"),  set forth on Schedule 1, attached hereto and made a
part hereof  ("Conditional  Award").  The Shares  shall be made  available  from
authorized and unissued Preferred Stock, Series A, of the Company or from shares
of  Preferred  Stock,  Series A, held by the  Company  as  treasury  stock.  The
foregoing  Conditional  Award  is  made  subject  to the  terms  and  conditions
hereinafter  set  forth.  The above  Preferred  Stock,  Series A, is  subject to
certain  conversion and other rights and restrictions set forth in

                                       1

<PAGE>

a Certificate of Determination filed by the Company. As used herein, the date of
grant of the Conditional  Award  hereunder shall not necessarily  constitute the
date of  transfer of the Shares for  purposes  of  election  pursuant to Section
83(b) of the  Internal  Revenue  Code of 1986,  as amended,  which my occur on a
different or later date.

1.2.     FAIR MARKET VALUE.  The fair market value of the shares in each
Conditional  Award shall be deemed to be three (3%) percent of the closing price
at which a share of Common  Stock of the  Company  shall have been valued on the
date of grant pursuant to Schedule 1,  notwithstanding that the date of transfer
of the Shares for purposes of election pursuant to Section 83(b) of the Internal
Revenue Code of 1986, as amended, my occur on a different or later date.

1.3.     PLAN. The Conditional Award set forth herein is made expressly  subject
to the terms and conditions of the Plan. Notwithstanding the foregoing, PSI may,
in lieu of awards by the Company under the Plan, or in coordination  with awards
by the Company  under the Plan,  make stock bonus  awards  pursuant to a similar
plan or plans  adopted  by PSI.  It is the  intent  of the  parties  to  provide
Employee with the benefit of ultimately  being  eligible for  conversion of some
stock or security into Common Shares of the Company.

1.4.     CONVERSION.  The Shares shall, subject to the terms  and conditions  of
this Agreement,  be convertible into fully paid non-assessable  shares of Common
Stock upon the  occurrence of the events set forth herein.  Notwithstanding  the
foregoing,  the Shares may not be  converted  if the  issuance  of any shares of
Common Stock upon such conversion would constitute a violation of any applicable
federal or state  securities or other law or  regulation.  As a condition to the
conversion  of the Shares,  the  Company  may  require the  Employee to make any
representation  and warranty to the Company as may be required by any applicable
law or regulation.

1.5.     CONVERSION SCHEDULE.   The  Shares  shall,  subject to  the  terms  and
conditions set forth in this  Agreement,  and subject to forfeiture as set forth
herein,  be  convertible  into  Common  Shares  upon the  attainment  of certain
earnings  and revenue  milestones  by the  Company,  as defined at Article 1, in
accordance with the conversion schedule set forth on Schedule 1.

1.6.     TIME FOR ATTAINMENT OF  REVENUE  LEVELS.  The  revenue  levels  of  the
Company as milestones  referenced  above must be attained by the Company  within
the time  periods,  measured from the  effective  date of this  Agreement as set
forth on  Schedule  1. If the  revenue  levels  are not so  attained  within the
following times,  the number of Shares available for conversion  hereunder shall
decrease at a rate of ten percent (10%) of the then  remaining  amount of Shares
available for conversion each calendar month, prorated on the basis of number of
days in each calendar month.

1.7.     SHARES AVAILABLE FOR CONVERSION.   The Shares available for  conversion
shall be  reduced  as a pool as set forth at,  above.  Should the pool of Shares
available for conversion be insufficient to provide for any level of conversion,
in full or part,  at any  time as set  forth in this  Agreement,  the  remaining
conversion  schedule  shall be of no further force or effect and all  conversion
rights  shall expire and  terminate  and no further  Shares shall  convert or be
subject to conversion.

                                       2

<PAGE>

1.8.     CONDITIONAL  AWARD  ADJUSTMENTS.   The  Employee  shall  be  granted  a
Conditional Award of Series A Preferred Stock (the "Shares") upon achievement of
the continuous  employment  period and in the amount of Series A Preferred Stock
described in Schedule 1. The Shares subject to the  Conditional  Award,  whether
converted or unconverted, shall be forfeited to the Company if the employment of
the  Employee by the Company or an  Affiliate is  terminated  for cause,  as set
forth herein.  If such termination  occurs prior to completion of the employment
period  described  in Schedule 1,  Employee  shall  forfeit one hundred  percent
(100%) of the  Conditional  Award to which he would have been eligible.  If such
termination  occurs after  completion of the period described in Schedule 1, but
prior to 30 days thereafter, Employee shall forfeit an amount of Shares, whether
converted or unconverted,  equal to 5/6 of the total  Conditional  Award amount,
prorated on the basis of a 30 day month. Thereafter,  for each 30 day period, or
portion thereof on a 30 day prorated basis,  of continuous  employment  service,
Employee  shall forfeit an amount of shares reduced by an amount equal to 1/6 of
the total  Conditional  Award  amount,  so that upon  completion  of 180 days of
continuous employment from the date described in Schedule 1, none of the Shares,
whether  converted or unconverted,  pursuant to the  Conditional  Award shall be
subject to  forfeiture.  All  prorations  shall be made on the basis of a 30 day
month and a 360 day year.

1.9.     SPECIAL CONVERSION OF DEATH OR FULL DISABILITY.  Upon the death or full
disability of Employee,  and subject to the service  adjustments and forfeitures
as set forth above,  ten percent  (10%) of any Shares not then  converted  shall
automatically convert for the benefit of the Employee or the estate of Employee,
and the  remainder of the  conversion  rights shall expire and terminate and any
then unconverted Shares shall be forfeited to the Company.

1.10.    FULL DISABILITY OF EMPLOYEE.  In the event Employee becomes mentally or
physically  disabled to such an extent that Employee is unable to  substantially
perform  Employee's  normal  employment  duties on behalf of the  Company  for a
period  of  thirty  (30)  consecutive  days or more,  the  Company,  at any time
thereafter,  shall have the right, at its sole option, to declare Employee fully
disabled hereunder.

1.11.    DEFINITION OF CAUSE.  As used  herein  with  regard  to  suspension  or
discharge,  cause shall consist of the following:  (i) cause as defined pursuant
to any written  employment  agreement to which the Employee is a party; (ii) the
conviction  of Employee by a court of  competent  jurisdiction  (and to which no
further  appeal  can be taken) of a felony or any other  crime  involving  moral
turpitude;  (iii) the  commission  by  Employee  of an act of fraud or other act
materially  evidencing bad faith or  dishonesty;  (iv) the  misappropriation  by
Employee  of any  funds or  property  or other  rights of the  Company;  (v) the
suspension  or  removal  or  termination  of  Employee  by or at the  request or
requirement of any governmental  authority having jurisdiction over the Company;
(vi) the  willful  refusal  to  follow  any  lawful  directive  of the  Board of
Directors of Company;  or (vii) the breach by Employee of any material  terms of
this Agreement or any other  agreement  between  Employee and the Company or any
affiliate of the Company. The foregoing definition shall be used for purposes of
this  Agreement  only  and  shall  have  no  other  effect,   whether   binding,
interpretive,  illustrative,  or  otherwise,  on  any  employment  relationship,
whether at-will or pursuant to a written agreement employment agreement.

1.12.    EXPIRATION OF CONVERSION RIGHTS.   The conversion rights with regard to
any and all Shares  which do not become  fully  converted  at the time set forth
therefore  shall be deemed expired and such Shares shall no longer be subject to
conversion in accordance with the terms and conditions of this  Agreement.  Such
Shares unconverted Shares shall be forfeited to the Company.

                                       3

<PAGE>

1.13.    REVENUE.   Subject  to adjustment as set forth at Section 1.14,  below,
the term revenue as used herein shall mean the gross revenue of the Company from
sources  as  follows:  (i)  all of  the  capital  inflows  of  the  Company  (or
enhancements of assets) from producing and delivering goods, rendering services,
or other activities that constitute the ongoing central  business  operations of
the Company;  and (ii) gross revenues from sales and licensing  transaction made
by the Company  with regard to the  services and products of the Company for the
account or benefit of the Company pursuant to transactions  materially initiated
by  Employee  or in  which  the  Employee  is or was a  direct  and  substantial
influence. Subject to the definitions and adjustments set forth herein, the term
revenue  shall be construed  hereunder  in a manner  consistent  with  generally
accepted accounting principles.

1.14.    ADJUSTMENT TO REVENUE.   The  term  revenue  as  used herein  shall  be
adjusted to exclude  contributions  or  distributions to the Company from any of
its  affiliated  entities,  contributed  capital,  equity  inconvertments,   tax
credits,  and  revenues,  gains  and/or  increases  in  equity  or  assets  from
peripheral or incidental  transactions  not otherwise  specifically set forth at
Section 1.13, above.

1.15.    RIGHTS AS SHAREHOLDER.  Employee shall have all rights as a shareholder
of Preferred Stock,  Series A, with respect to the Shares,  except to the extent
that such  rights as a share  owner would cause the Plan not to comply with Rule
16b-3  under  the  Securities  Exchange  Act  of  1934,  as  amended.   Employee
acknowledges that the Preferred Stock, Series A, bear no voting rights.

1.16.    NONTRANSFERABILITY OF CONDITIONAL  AWARDS.  Subject  to the  terms  and
conditions  contained  herein,  the  Shares  subject to the  Conditional  Award,
whether  converted or unconverted,  shall not be  transferable  and shall not be
sold,  exchanged,  transferred,  pledged,  hypothecated or otherwise disposed of
within  twenty-four  (24) months from the date of the  Conditional  Award unless
specifically authorized by the Board of Directors of Accesspoint.

                                   ARTICLE 2.

                       ISSUANCE OF FULLY CONVERTED SHARES

2.1.     ISSUANCE ON CONVERSION.  Before any Shares may be converted into Common
Shares,  the Employee must surrender the certificate or certificates  evidencing
the Shares,  duly  endorsed in blank or  accompanied  by proper  instruments  of
transfer,  at the office of the  Company or any  transfer  agent for the Shares.
Employee  shall  give  written  notice to the  Company at such  office  that the
Employee  reasonably  believes  that  that a  certain  number  of Shares is then
subject to  conversion  as set forth  herein.  The notice shall also specify the
name or names in which the Employee the certificate or  certificates  for Common
Shares to be issued.  If a name  specified is not that of  Employee,  the notice
shall  also  state the  address  of the new  holder  and any  other  information
required by law. The Company shall have the right,  in its sole  discretion,  to
decline  to issue  any such  certificates  in any  name  other  than the name of
Employee  appearing the surrendered  certificates  representing the Shares.  The
Company  shall,  subject to the tax provisions set forth at Section 2.7, as soon
as practicable thereafter, issue and deliver at such office to the holder of the
Shares converted, or the that holder's nominee or nominees, certificates for the
number of full Common  Shares to which the

                                       4

<PAGE>

holder shall be entitled,  to receive together with a scrip  certificate or cash
in lieu of any  fraction of a share as provided  herein,  subject  further to an
available  exemption under the securities  laws and general  compliance with all
securities  laws,  rules and  regulations.  Notwithstanding  the foregoing,  the
Company shall not be obligated to deliver registered or qualified  securities to
Employee,  and the  obligation  of  Accesspoint  to issue Common  Shares  and/or
deliver stock certificates  shall abate unless and until an available  exemption
from the  requirement  of  registration  or  qualification  under any applicable
securities laws is available and may be obtained and perfected.

2.2      CONVERSION DATE. Conversion hereunder shall be deemed to have been made
as of the date of  surrender  of the Shares to be  converted,  and the person or
persons  entitled to receive the Common Shares issuable upon conversion shall be
treated for al purposes as the record holder or holders of such Common Shares on
that date.

2.3.     COMPLIANCE  WITH  SECURITIES  LAWS.  All offers, sales,  transfers  and
Conversions  of the  Shares  shall be made in  compliance  with  all  applicable
securities  laws,  rules  and  regulations,  and  pursuant  to  registration  of
securities under the Securities Act (and qualification under General Corporation
Law of  California)  or pursuant to an  exemption  from  registration  under the
Securities Act (and qualification  under General Corporation Law of California).
The Employee  acknowledges  that the Shares are subject to the  restrictions  on
transfer set forth in Rule 144 of the Rules promulgated under the Securities Act
of  1933  ("Act").  Any  and all  offers  and  sales,  to the  extent  permitted
hereunder,  by Employee after the restricted  period shall be made only pursuant
to  such  a  registration   (and   qualification)  or  to  such  exemption  from
registration  (and  qualification).  Employee shall comply with all policies and
procedures established by Accesspoint with regard to Rule 144 matters.

2.4.     CHANGE IN STRUCTURE OF ACCESSPOINT.  Upon the  consummation of any sale
of substantially all of the assets of Accesspoint, or the merger,  consolidation
or  reorganization  of  Accesspoint  in which  Accesspoint  is not the surviving
corporation,  and directly  pursuant to which  Employee is materially  prevented
from achieving any applicable revenue  milestones as set forth herein,  then all
conditionally converted Shares shall fully convert and Employee shall be granted
fully converted Shares as if the next applicable revenue milestone had then been
achieved.  The  remainder of any  conversion  rights  pertaining  to the Shares,
including,  without  limitation,  conversion  rights pertaining to conditionally
converted  Shares,  shall expire and terminate and the Shares shall no longer be
subject to conversion.

2.5.     EMPLOYMENT  RELATIONSHIP.  The  parties acknowledge that any employment
relationship  or  relationships  between  the  Employees  and the Company or the
Employees and  Accesspoint,  if any, is either  at-will  employment or set forth
pursuant  to the  terms of a  separate  written  employment  agreement  and that
nothing in this Agreement shall affect in any manner  whatsoever such employment
relationships,  if any,  between The Employees and such parties.  This Agreement
does not  constitute an express or implied  promise of continued  employment for
the periods defined herein or any other period or periods.

2.6.     TAX MATTERS.  (a).  If the Employee  properly elects within thirty (30)
days of the date on which the  Conditional  Award is granted to include in gross
income for federal  income tax purposes an amount equal to the fair market value
(on the date of grant of the  Conditional  Award)  of the Stock  subject  to the
Conditional  Award,  such person  shall make  arrangements  satisfactory  to the
Company

                                       5

<PAGE>

to pay the Company in the year of such Conditional  Award any federal,  state or
local taxes required to be withheld with respect to such shares. If the Employee
shall fail to make such tax payments as are required,  the Company shall, to the
extent  permitted by law,  have the right to deduct from any payment of any kind
otherwise  due to the Employee  any federal,  state or local income taxes of any
kind  required by law to be withheld  with respect to the Stock  subject to such
Conditional Award.

         (b).  Should the Employee  not make the  election  described in Section
2.6(a) herein,  then the Employee  shall, no later than the date as of which the
restrictions referred to herein and on Schedule 1 and such other restrictions as
may have been imposed as a condition of the Conditional  Awards shall lapse, pay
to the  Company,  or make  arrangements  satisfactory  to the Company  regarding
payment of any federal,  state or local taxes of any kind  required by law to be
withheld  with  respect to the Stock  subject  to such  Conditional  Award.  The
Company may, in its sole discretion and on terms it shall determine,  approve or
disapprove  the election of the  Employee for the Company to withhold  shares of
Stock as the deemed cash  settlement  to satisfy the Company's  withholding  tax
obligations,  in  whole or in  part,  relating  to the  Conditional  Award.  The
approval  or  disapproval  of the  Company  may be given at any time  after  the
election to which it relates.  The election by the  Employee  shall only be made
during the period  beginning  on the third  business day  following  the date of
release for  publication of quarterly or annual summary  statements of sales and
earnings and ending on the twelfth business day following such date.

         (c). If Accesspoint determines that it is required to withhold federal,
state  or  local  tax as a  result  of the  grant  of the  Conditional  Award or
conversion of the Shares, then Employee, as a condition to the conversion of the
Shares,  shall make  arrangements  satisfactory  to  Accesspoint to enable it to
satisfy such withholding  requirements.  Employee will pay when due and payable,
any and all federal and state taxes or fees that may be payable by Employee with
respect to, without limitation: (i) the grant of the Shares; (ii) the conversion
of  the  Shares;  (iii)  the  issuance  of any  Common  Shares  or  certificates
therefore;  and/or  (iv) the  subsequent  disposition,  to the extent  permitted
hereunder,  of any of the  Shares,  Common  Shares,  or  certificates  issued to
Employee upon conversion of the Shares. The Employee understands that any of the
foregoing  references  to  taxation  are based on  federal  income  tax laws and
regulations  now in effect,  and may not be  applicable  to the  Employee  under
certain circumstances. The Employee may also have adverse tax consequences under
state or local law.  The  Employee  has  reviewed  with the  Employee's  own tax
advisors  the  federal,  state,  local  and  foreign  tax  consequences  of  the
transactions  contemplated by this Agreement.  The Employee is relying solely on
such advisors and not on any statements or representations of the Company or any
of its agents. The Employee  understands that the Employee (and not the Company)
shall be  responsible  for the  Employee's own tax liability that may arise as a
result of the transactions contemplated by this Agreement.

2.7.     INCIDENTAL REGISTRATION.  Subject to Nontransferability provisions out-
lined in Section 1.16 above,  Accesspoint  shall give written notice to Employee
of any proposed  registration under the Act of any of its securities of the same
class and series as the Common Shares issued to Employee  pursuant to conversion
of the Shares.  Accesspoint will use its best reasonable  commercial  efforts to
include in any such  Registration  Statement,  at the cost of Accesspoint and in
accordance  with the  intended  method or  methods of  distribution,  any of the
Common  Shares  issued to  Employee  pursuant

                                       6

<PAGE>

to conversion of the Shares if Employee  shall request  inclusion  within thirty
(30) days after the date of mailing of the above notice. Employee will cooperate
with  Accesspoint,  execute,  acknowledge,   notarize,  and  deliver  reasonable
documents  and  instruments,   and  provide   Accesspoint  with  all  reasonable
documents,  instruments and information reasonably required to prepare, complete
and file the Registration Statement. Employee represents that no such documents,
instruments and information shall contain any untrue statements of material fact
or omit to state any material facts  required to be stated therein  necessary to
make the statements  therein not misleading in light of the  circumstances  then
existing.  Notwithstanding  the  foregoing,  Accesspoint  may,  but shall not be
required hereunder to, keep any such Registration Statement effective or prepare
or  file  any  amendments  or  post-effective  amendments  to  the  Registration
Statement  with  regard to the shares of  Employee or assist in any way with the
sale or distribution of the shares of Employee.

                                   ARTICLE 3.

                            RESTRICTIONS ON TRANSFER

3.1.     RESTRICTIONS. Notwithstanding anything herein to the contrary, Employee
understands  and agrees  that  Employee  shall not dispose of any of the Shares,
whether  by  sale,  exchange,  assignment,   transfer,  gift,  devise,  bequest,
mortgage, pledge, encumbrance or otherwise,  except in accordance with the terms
and conditions of this Agreement, and Employee shall not take or omit any action
which will impair the absolute and  unrestricted  right,  power,  authority  and
capacity of Employee to sell Shares in accordance  with the terms and conditions
hereof

3.2.     TRANSFERS VOID.  Any  purported  transfer  of  Shares by  Employee that
violates any provision of this  Agreement  shall be wholly void and  ineffectual
and  shall  give to the  Company  or its  designee  the right to  purchase  from
Employee  all but not less than all of the Shares then owned by  Employee  for a
period  of 90 days  from the date the  Company  first  learns  of the  purported
transfer at the Agreement  Price and on the Agreement  Terms (as those terms are
defined in  Sections  3.11 and 3.12,  respectively,  of this  Article 3). If the
Shares are not purchased by the Company or its designee,  the purported transfer
thereof shall remain void and  ineffectual and they shall continue to be subject
to this  Agreement.  The Company  shall not cause or permit the  transfer of any
Shares to be made on its books except in accordance with the terms hereof.

3.3.     PERMITTED TRANSFERS.   Employee may sell, assign or transfer any Shares
held by the Employee but only by complying  with the  provisions of Section 3.7.
Employee may sell,  assign or transfer  any Shares held by the Employee  without
complying  with the  provisions  of Section 3.7 by obtaining  the prior  written
consent of the  Company as approved by a majority of the members of the Board of
Directors of the Company,  provided that the transferee  agrees in writing to be
bound by the provisions of this Agreement and the transfer is made in accordance
with any other  restrictions or conditions  contained in the written consent and
in accordance with applicable federal and state securities laws.

3.4.     NO TRANSFER UPON DEATH.  No Shares may be transferred upon the death of
Employee;  the Shares shall be subject to the special  conversion and forfeiture
provisions  set  forth  hereinabove  pertaining  to the death or  disability  of
Employee.

                                       7

<PAGE>

3.5.     NO PLEDGE.  Unless a majority of the members of the Board of  Directors
consent, Shares may not be pledged,  mortgaged or otherwise encumbered to secure
indebtedness  for money borrowed or any other  obligation for which the Employee
is primarily or secondarily liable.

3.6.     STOCK CERTIFICATE  LEGEND.  Each stock certificate for Shares issued to
the Employee shall have conspicuously  written,  printed,  typed or stamped upon
the face thereof,  or upon the reverse  thereof with a conspicuous  reference on
the face  thereof,  the  following  legend,  in addition to any other  legend or
legends deemed required or appropriate by counsel for the Company:

THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ISSUED WITHOUT REGISTRATION
UNDER THE SECURITIES ACT OF 1933, AS AMENDED,  AND MAY NOT BE TRANSFERRED IN THE
ABSENCE  OF  REGISTRATION   THEREUNDER  OR  AN  APPLICABLE  EXEMPTION  FROM  THE
REGISTRATION  REQUIREMENTS  OF SUCH ACT. SUCH SHARES MAY NOT BE SOLD,  ASSIGNED,
TRANSFERRED,  OR OTHERWISE  DISPOSED OF IN ANY MANNER EXCEPT IN ACCORDANCE  WITH
AND  SUBJECT TO THE TERMS OF THE STOCK  BONUS  AGREEMENT,  A COPY OF WHICH IS ON
FILE AT THE PRINCIPAL OFFICE OF THE COMPANY. UNLESS A MAJORITY OF THE MEMBERS OF
THE BOARD OF DIRECTORS CONSENT, SUCH STOCK BONUS AGREEMENT PROHIBITS ANY PLEDGE,
MORTGAGE OR OTHER  ENCUMBRANCE  OF SUCH SHARES TO SECURE ANY  OBLIGATION  OF THE
HOLDER HEREOF.  EVERY CREDITOR OF THE HOLDER HEREOF AND ANY PERSON  ACQUIRING OR
PURPORTING  TO ACQUIRE THE  CERTIFICATE  OR THE SHARES  HEREBY  EVIDENCED OR ANY
INTEREST  THEREIN  IS HEREBY  NOTIFIED  OF THE  EXISTENCE  OF SUCH  STOCK  BONUS
AGREEMENT,  AND ANY ACQUISITION OR PURPORTED  ACQUISITION OF THIS CERTIFICATE OR
THE SHARES  HEREBY  EVIDENCED  OR ANY INTEREST  THEREIN  SHALL BE SUBJECT TO ALL
RIGHTS AND  OBLIGATIONS OF THE PARTIES TO SUCH STOCK BONUS  AGREEMENT AS THEREIN
SET FORTH.

3.7.     SALES OF SHARES; RIGHT OF FIRST REFUSAL. The Company shall have a right
of  first  refusal  with  regard  to any  sale,  assignment,  transfer  or other
disposition of any Shares held by Employee.

         3.7.1.  In the event that the Employee shall desire to sell,  assign or
transfer  any Shares  held by the  Employee to any other  person  (the  "Offered
Shares")  and shall be in receipt of a bona fide offer to  purchase  the Offered
Shares ("Offer"),  the following  procedure shall apply. The Employee shall give
to the Company written notice  containing the terms and conditions of the Offer,
including,  but not limited to: (i) the number of Offered Shares; (ii) the price
per Share;  (iii) the method of payment;  and (iv) the  name(s) of the  proposed
purchaser(s).

         3.7.2.  An offer shall not be deemed bona fide unless the  Employee has
informed the  prospective  purchaser  of the  Employee's  obligation  under this
Agreement and the  prospective  purchaser has agreed to become a party hereunder
and to be bound  hereby.  The  Company  is  entitled  to take  such  steps as it
reasonably  may deem necessary to determine the validity and bona fide nature of
the Offer.

                                       8

<PAGE>

         3.7.3.  Until 10 days after such  notice is given,  the  Company or its
designee shall have the right to purchase all of the Offered Shares at the price
offered by the prospective purchaser and specified in such notice. Such purchase
shall be on the Agreement Terms, as defined in Sections 3.11 and 3.12.

3.8.     FAILURE OF COMPANY OR ITS DESIGNEE TO PURCHASE OFFERED SHARES.   If all
of the  Offered  Shares are not  purchased  by the Company  and/or its  designee
within the 10-day period granted for such purchases,  then any remaining Offered
Shares may be sold,  assigned or  transferred  pursuant to the Offer;  provided,
that the Offered Shares are so  transferred  within 15 days of the expiration of
the 10-day  period to the  person or  persons  named in, and under the terms and
conditions of, the bona fide Offer  described in the notice to the Company;  and
provided further,  that such persons agree to execute and deliver to the Company
a written agreement,  in form and content satisfactory to the Company,  agreeing
to be bound by the terms and conditions of this Agreement.

3.9.     MANNER OF EXERCISE.  Any right to purchase hereunder shall be exercised
by giving  written notice of election to the Employee,  the Employee's  personal
representative  or any other  selling  person,  as the case may be, prior to the
expiration of such right to purchase.

3.10.    AGREEMENT PRICE.  (b)(3).  The "Agreement Price" shall be the higher of
(i) the fair market value of the Shares to be purchased determined in good faith
by the Board of Directors of the Company or (ii) the original  exercise price of
the Shares to be purchased.

3.11.    DELIVERY OF SHARES AND CLOSING  DATE. At the closing, the Employee, the
Employee's personal representative or such other selling person, as the case may
be, shall deliver  certificates  representing the Shares,  properly endorsed for
transfer,  and with the necessary  documentary and transfer tax stamps,  if any,
affixed,  to the  purchaser  of  such  Shares.  Payment  of the  purchase  price
therefore shall  concurrently be made to the Employee,  the Employee's  personal
representative  or such other selling person,  as provided in subsection (ii) of
this Section  3.11.  Such  delivery and payment  shall be made at the  principal
office of the Company or at such other place as the parties  mutually agree. The
foregoing may be herein referred to as the "Agreement Terms."

3.12.    PAYMENT OF PURCHASE PRICE.  The Company shall pay the purchase price to
the Employee at the closing. The purchase price payment terms shall be a part of
the "Agreement Terms."

3.13.    RIGHT TO PURCHASE UPON  CERTAIN  OTHER  EVENTS.   The  Company  or  its
designee  shall have the right to  purchase  all,  but not less than all, of the
Shares held by the Employee at the Agreement  Price and on the  Agreement  Terms
for a period of 90 days after any of the following events:

         3.13.1.   Any  attempt  by  a  creditor to levy upon or sell any of the
Employee's Shares;

         3.13.2.   The  filing  of  a  petition  by  the Employee under the U.S.
Bankruptcy Code or any insolvency laws;

         3.13.3.   The  filing  of   a  petition  against  Employee  under   any
insolvency or  bankruptcy  laws by any creditor of the Employee if such petition
is not dismissed within 30 days of filing;

                                       9

<PAGE>

         3.13.4.   The entry of a decree of divorce between the Employee and the
Employee's spouse; or

         3.13.5.   The  termination  of  Employee's  services as  an employee or
consultant with the Company.

3.14.    NOTICE OF EVENTS. The Employee shall provide the Company written notice
of the  occurrence  of any event set forth at Section 3.13 within 30 days of the
occurrence of such event.

3.15.    TERMINATION.  The  provisions  of this  Article 3 shall  terminate  and
all rights of each such party hereunder shall cease except for those which shall
have theretofore accrued upon the occurrence of any of the following events:

         3.15.1.   Cessation of the Company's business;

         3.15.2.   Bankruptcy, receivership or dissolution of the Company;

         3.15.3.   Ownership  of all of the issued and outstanding shares of the
Company by a single shareholder of the Company;

         3.15.4.   Written  consent or  agreement of  the  shareholders  of  the
Company  holding 50% of the then issued and  outstanding  shares Common Stock of
the Company (determined on a fully diluted basis);

         3.15.5.   Consent  or  agreement of  a  majority of  the members of the
Board of Directors of the Company; or

         3.15.6.   Registration of any class of equity securities of the Company
pursuant to Section 12 of the Securities Exchange Act of 1934, as amended.

3.16.    AMENDMENT.  This  Article  3  may be modified or amended in whole or in
part by a written  instrument  signed by shareholders of the Company holding 50%
of the outstanding  shares of Common Stock (determined on a fully diluted basis)
or a majority of the members of the Board of Directors of the Company.

                                   ARTICLE 4.

                               GENERAL PROVISIONS

4.1.     RECITALS.  The recitals set forth above are incorporated herein by this
reference and made a part of this Agreement.

4.2.     ADVICE OF COUNSEL.  Each  party has been advised of and understands the
terms and  conditions  of this  Agreement.  This  Agreement  has been freely and
voluntarily entered into and

                                       10

<PAGE>

executed by the parties,  each of the parties  hereto being duly  represented by
counsel or having the benefit of advice of counsel.

4.3.     AMENDMENTS.  This Agreement may be amended  only  by written consent of
each of the parties hereto.

4.4.     FURTHER  ACTS.  The  parties  hereto  shall  cooperate  with each other
and execute such  additional  documents or instruments  and perform such further
acts as may be  reasonably  necessary  to affect the  purpose  and intent of the
Agreement.

4.5.     NOTICES.Any and all notices, demands, requests, or other communications
required or permitted by this  Agreement or by law to be served on, given to, or
delivered to any party hereto by any other party to this  Agreement  shall be in
writing and shall be deemed duly served,  given,  or delivered  when  personally
delivered  to the  party  or to an  officer  of the  party,  or in  lieu of such
personal delivery, when deposited in the United States mail, first-class postage
prepaid addressed as follows:

Accesspoint:                        Accesspoint Corporation
                                    38 Executive Park
                                    Suite 350
                                    Irvine, CA 92614
                                    Att: Tom M. Djokovich

Employee:                           [See Schedule 1]

4.6.     EFFECT OF HEADINGS.  The subject headings of the  paragraphs  and  sub-
paragraphs of this Agreement are included for purposes of convenience  only, and
shall not affect the construction or interpretation of any of its provisions.

4.7.     ENTIRE  AGREEMENT;  MODIFICATION,  WAIVER.  This Agreement  constitutes
the entire agreement between the parties pertaining to the conditional and final
converting  of any  Shares,  and along with the Plan and the  Trust,  the entire
agreement  between the parties  pertaining to any other subject matter contained
herein.  This  Agreement  supersedes  all prior and  contemporaneous  agreement,
representations  and  understandings  of the  parties.  No  waiver of any of the
provisions of this Agreement  shall be deemed,  or shall  constitute a waiver of
any other provision,  whether or not similar,  nor shall any waiver constitute a
continuing  waiver. No waiver shall be binding unless executed in writing by the
party making the waiver.

4.8.     SEVERABILITY. Should any provision or portion of this Agreement be held
or  otherwise  become  unenforceable  or invalid for any reason,  the  remaining
provisions  and  portions  of  this  Agreement   shall  be  unaffected  by  such
unenforceability or invalidity.

4.9.     COUNTERPARTS.  This  Agreement may be executed simultaneously in one or
more

                                       11

<PAGE>

counterparts,  each of  which  shall be  deemed  an  original,  but all of which
together shall  constitute one and the same  instrument.  The exhibits  attached
hereto and  initialed  by the parties  are made a part  hereof and  incorporated
herein by this reference.

4.10.    PARTIES IN INTEREST.  Nothing  in this  Agreement,  whether  express or
implied, is intended to confer any rights or remedies under or by reason of this
Agreement  on any  persons  other than the parties to it, and the  Company,  and
their and its  respective  successors  and  assigns.  The  Company is  expressly
declared to be a third party  beneficiary  under this agreement with full rights
of  enforcement.  Further,  nothing  in this  Agreement  intended  to relieve or
discharge the obligation or liability of any third party to this Agreement,  nor
shall any  provision  give any third  person  except  the  Company  any right of
subrogation or action over against any party to this Agreement.

4.11.    ASSIGNMENT.  The Shares may be exercised only by Employee during his or
her  lifetime,  unless  expressly  agreed  otherwise in writing by  Accesspoint.
Employee  may not  transfer or assign,  or purport to  transfer  or assign,  the
Shares  without the prior  written  consent of  Accesspoint.  To the extent that
Accesspoint may consent to any such assignment,  this Agreement shall be binding
on,  and shall  inure to the  benefit  of,  the  heirs,  legal  representatives,
successors and assigns of Employee. Accesspoint may assign this Agreement to any
entity which purchases substantially all of the assets of Accesspoint, or is the
surviving entity in any merger, consolidation or reorganization of Accesspoint.

4.12.    SPECIFIC PERFORMANCE. Each party's obligations under this Agreement are
unique. If any party should default in its obligations under this Agreement, the
parties each acknowledge that it would be extremely impracticable to measure the
resulting  damages;  accordingly,  the  nondefaulting  party, in addition to any
other available rights or remedies,  may sue in equity for specific  performance
without the necessity of posting a bond or other security,  and the parties each
expressly waive the defense that a remedy in damages will be adequate.

4.13.    RECOVERY OF LITIGATION COSTS. If any legal action or any arbitration or
other proceeding is brought for the enforcement of this Agreement, or because of
an alleged dispute,  breach, default or misrepresentation in connection with any
of the  provisions of this  Agreement,  the  successful  or prevailing  party or
parties shall be entitled to recover as an element of their damages,  reasonable
attorneys'  fees and other  costs  incurred  in that  action or  proceeding,  in
addition to any other relief to which they may be entitled.

4.14.    SURVIVAL  OF  REPRESENTATIONS  AND  OBLIGATIONS.  All  representations,
warranties and agreements of the parties contained in this Agreement,  or in any
instrument,  certificate,  opinion or other  writing  provided  for in it, shall
survive the dissolution of the Partnership.

4.15.    GENDER; NUMBER. Whenever the context of this  Agreement  requires,  the
masculine gender includes the feminine or neuter gender, and the singular number
includes the plural.

4.16.    GOVERNING LAW.  This Agreement shall be construed in  accordance  with,
and governed by, the laws of the State of California.

                                       12

<PAGE>

4.17.    VENUE.  This Agreement is to be performed at Orange County, California.
Therefore,  venue  for  any  action  brought  regarding  the  interpretation  or
enforcement  of  this  Agreement   shall  lie   exclusively  in  Orange  County,
California.

IN WITNESS  WHEREOF,  this Agreement is effective the date first set forth above
at Orange County, California.

                            COMPANY:

                            Accesspoint Corporation, a Nevada corporation

                            By: /s/Tom M. Djokovich
                            ------------------------
                            Tom M. Djokovich, CEO

                            EMPLOYEE:

                            By: /s/ Rex Alan Sanders
                            -------------------------------
                            Rex Alan Sanders, an individual

                                       13
<PAGE>

                                   SCHEDULE 1

NUMBER OF PREFERRED SHARES, SERIES A, CONDITIONALLY AWARDED:

            (1)   After  completion  of a  minimum  of  twelve  (12)  months  of
                  employment with Accesspoint, but in any event not prior to May
                  7, 2002: 5,000 shares (Five Thousand)

CONDITIONAL CONVERSION SCHEDULE:

The following  conversion  schedule shall outline various  business  development
goals  of the  Company  and  responsibilities  of  Employee  and  shall  require
achievement,  in accordance with the terms and conditions of this Agreement,  of
those milestones outlined below.

Milestone         1. The Employee  shall have the right to convert Five Thousand
                  (5,000) Class A Preferred  Shares upon attaining the following
                  business development goals for the Company:

                  (a)   Employee shall be responsible  for helping to maintain a
                        merchant and customer care  division for the  management
                        of both  processing and general  Company  services.  The
                        division shall be capable of supporting customer service
                        needs  necessary  for the  support  of  twenty  thousand
                        (20,000) customers.
                  (b)   Upon  Company  attainment  of twenty  thousand  (20,000)
                        merchant/processing  accounts and seventeen million four
                        hundred thousand ($17,400,000) dollars in gross revenues
                        as  reported  within  condensed  consolidated  financial
                        statements  representing  gross revenues for the Company
                        and all wholly owned subsidiary's.

                  The time attainment requirements for Employee's achievement of
                  the foregoing business  development goals and objectives shall
                  be twenty  four (24) months  from the  effective  date of this
                  Agreement.

ADDRESS OF EMPLOYEE FOR PURPOSE OF NOTICE AND OTHERWISE:

Rex Alan Sanders  4805 Monte Vista, Los Angeles, CA 90042      Soc.# ###-##-####

                                       14

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