Document:

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                                                                   EXHIBIT 10.24

                               ADVISORY AGREEMENT

                THIS ADVISORY AGREEMENT (the "Agreement") is effective as of the
18th day of May, 2001, by and between CELSION CORPORATION, a Delaware
corporation (the "Company"), and DR. KRIS VENKAT ("Venkat"), and SUNDARI
ENTERPRISES, a New Jersey corporation (the "Advisor").

                In consideration of the mutual covenants and agreements
contained in this Agreement, the parties hereby agree as follows:

                1.      APPOINTMENT TO BOARD OF DIRECTORS; DIRECTOR'S FEES.
Venkat has been appointed to the Board of Directors of the Company effective May
18, 2001, and agrees to serve as a director of the Company. Venkat's service as
a director shall terminate at the option of the Company in its sole discretion.
Compensation as a director of the Company will be comprised of:

                        (a)     Payment of an annual director's fee in the
amount of Twenty Thousand Dollars ($20,000) payable in common stock calculated
at the closing price of the stock on the last day of the Company's fiscal year
(September 30). For fiscal year 2001, the director's fee will be prorated for
the period of service from May 18, 2001 through September 30, 2001.

                        (b)     A grant of non-qualified stock options under the
Celsion Corporation 2001 Stock Option Plan (the "Plan") entitling Venkat to
receive One Hundred Thousand (100,000) shares of common stock of the Company
with an exercise price of $0.92/share. These stock options will vest and become
exercisable in accordance with the terms of the Plan, and upon the following
schedule: options to acquire 50,000 shares shall vest on May 18, 2001 and
options to acquire 50,000 shares shall vest on May 18, 2002.

                2.      RETENTION OF ADVISOR; SCOPE OF SERVICES. The Company
hereby retains the Advisor and Advisor hereby agrees to provide the following
advisory services to the Company: (1) provide strategic and tactical advise to
the Company including development plans, Company positioning, contacts,
recruitment of key personnel; (2) assist the Company in developing its Heat
Activated Liposome business, including streamlining university/licensor
relationships, product development and manufacturing agreements, and the
identification and recruitment of a management team and negotiation of
appropriate strategic alliances, and development of a business plan for the Heat
Activated Liposome business to be used in attracting potential investment
partners, (3) assist the Company in developing a financial strategy and securing
equity capital and/or debt financing to fund on-going business of the Company;
and (4) identify potential investors that best meet the Company's objectives.
Venkat agrees that he shall cause Advisor to perform these services in a
professional manner.

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                3.      TIME OF PERFORMANCE OF ADVISORY SERVICES. The specific
time, schedule and place of the performance of the advisory services shall be
determined by the Advisor in its sole discretion. The Advisor shall devote a
minimum of sixty (60) days annually to the provision of the advisory services
contemplated hereunder. The Advisor agrees to be available to the Company during
normal business hours, on a regular basis, as necessary to ensure the timely and
professional performance of the duties of the Advisor hereunder.

                4.      COMPANY'S OBLIGATIONS. The Company shall make available
the information, resources and Company personnel and timely perform those tasks
necessary to enable Advisor to provide the services. The Company will keep the
Advisor informed on a current basis of all material developments which may
impact the financial performance of the Company, its businesses, outlook or
financial condition.

                5.      ADDITIONAL SERVICES. If mutually agreed, Advisor may
provide additional services to the Company not described herein, but Advisor
shall not be obligated to provide any such services unless the nature and terms
of such services and the compensation to be provided are mutually agreed in
advance in writing.

                6.      COMPENSATION. In consideration of the advisory services
to be provided hereunder, the Company will pay advisory fees to Venkat/Advisor
as follows:

                (a)     A cash retainer payment in the amount of Sixty Thousand
                        Dollars ($60,000) per year to the Advisor to provide the
                        advisory services contemplated hereby, provided however
                        that any payments in excess of $60,000 per year to the
                        Advisor must be approved in writing in advance by the
                        Company prior to the Advisor spending more than sixty
                        (60) days of advisory services per year. The cash fee
                        shall be payable monthly to the Advisor during the Term
                        at $5,000 per month. Advisor agrees to keep reasonably
                        appropriate records of time expended by him on behalf of
                        the Company. Advisor shall be paid an additional fee of
                        $1,000 per day for any time expended by him beyond 60
                        days per year, subject to provisions of Article 5 above.

                (b)     Subject to the terms and conditions set forth in this
                        Agreement, the Company hereby grants to Venkat
                        non-qualified stock options under the Plan entitling
                        Venkat to acquire Three Hundred Thousand (300,000)
                        shares of common stock of the Company with an exercise
                        price of $0.68/share. These options will vest and become
                        exercisable in accordance with the terms of the Plan,
                        and upon the following schedule: options to acquire
                        150,000 shares shall vest on August 1, 2001, and options
                        to acquire 150,000 shares shall vest on August 1, 2002.

                (c)     The Company also hereby grants to Venkat non-qualified
                        stock options under the Plan entitling Venkat to acquire
                        up to an additional Four Hundred Thousand (400,000)
                        shares of common stock of the Company, which will vest
                        and become exercisable in accordance with the terms of
                        the Plan, and upon the following schedule:

                        (i)     Options to acquire One Hundred Thousand
                                (100,000) shares shall vest upon completion of
                                satisfactory arrangements in streamlining
                                university/licensor relationships and product
                                development arrangements with a suitable third
                                party. The exercise price for these options
                                shall be 125% of the exercise price for the
                                options granted pursuant to Section 6(b) above.

                        (ii)    Options to acquire One Hundred Thousand
                                (100,000) shares shall vest upon Company
                                conclusion of a strategic partner alliance for

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                                one or more of the Company's business. The
                                exercise price for these options shall be 150%
                                of the exercise price for the options granted
                                pursuant to Section 6(b) above.

                        (iii)   Options to acquire One Hundred Thousand
                                (100,000) shares shall vest upon Company
                                conclusion of Phase I clinical studies of heat
                                activated liposomes. The exercise price for
                                these options shall be 175% of the exercise
                                price for the options granted pursuant to
                                Section 6(b) above.

                        (iv)    Options to acquire One Hundred Thousand
                                (100,000) shares shall vest upon conclusion of a
                                definitive agreement with a strategic partner
                                for the sale and distribution of the Company's
                                heat activated liposomes. The exercise price for
                                these options shall be 200% of the exercise
                                price for the options granted pursuant to
                                Section 6(b) above.

                (d)     Subject to the terms, conditions and limitations set
                        forth in this Agreement and the Plan, Venkat may
                        exercise any and all stock options granted under this
                        Agreement, at any time prior to 5:00 P.M. (EST) on May
                        1, 2011, upon notice to the Company at its principal
                        office at 10220-1 Old Columbia Road, Columbia, Maryland
                        21046-1705, Attention: Spencer Volk, President (or at
                        such other location as the Company may advise the
                        Executive in writing), at which time all unexercised
                        options shall expire and be of no further force or
                        effect.

                (e)     Notwithstanding any language to the contrary contained
                        herein, if this Agreement is in effect at the time of
                        the occurrence of a "Change of Control" event, all stock
                        options granted to Venkat pursuant to Sections 1 and 6
                        hereof shall automatically vest 100% and immediately
                        become exercisable upon the occurrence of a Change of
                        Control event. For purposes of this Agreement, "Change
                        of Control" event means (A) if any Person, or
                        combination of Persons (as hereinafter defined), or any
                        affiliate of any of the above, is or becomes the
                        "beneficial owner" (as defined in Rule l3d-3 promulgated
                        under the Securities Exchange Act of 1934) directly or
                        indirectly, of securities of the Company representing
                        twenty-five percent (25%) or more of the total number of
                        outstanding shares of common stock of the Company; (B)
                        if individuals who, at the date of this Agreement,
                        constitute the Board (the "Incumbent Directors") cease,
                        for any reason, to constitute at least a majority
                        thereof, provided that any new director whose election
                        was approved by a vote of at least 75% of the Incumbent
                        Directors shall be treated as an Incumbent Director; or
                        (C) the Company sells substantially all of its assets,
                        or transfers its Liposome business or substantially all
                        of the assets related to the Liposome business, to a
                        purchaser other than a subsidiary, or enters into a
                        joint venture with a third party with respect to the
                        Liposome business in which the Company does not retain
                        voting control. For purposes hereof, "person" shall mean
                        any individual, partnership, joint venture, association,
                        trust, or other entity, including a "group" as referred
                        to in section 13(d)(3) of the Securities Exchange Act of
                        1934.

        7.      REIMBURSEMENT OF EXPENSES. The Company shall reimburse the
Advisor from time to time for all reasonable and customary out-of-pocket
business expenses incurred in the performance of his duties hereunder, provided
that the Advisor has had such expenses pre-approved (either verbally or written)
and shall submit vouchers and other reasonable supporting data to substantiate
the amount of said expenses. The Company shall reimburse the Advisor for such
expenses monthly during the Term upon receipt of an invoice from the Advisor
summarizing such expenses.

        8.      TERM OF AGREEMENT AND PAYMENT UPON TERMINATION. Unless earlier
terminated in accordance with the provisions of this Section 8, the term (the
"Term") of this Agreement shall be for a two-year period commencing on the date
hereof and ending on May 18, 2003, provided however, that the Company shall have
the right,

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in its sole and absolute discretion, to terminate this Agreement effective as of
the one-year anniversary date of the date of this Agreement, upon written notice
to the Advisor at least thirty (30) days prior to such anniversary date (the
"Term"). The Agreement shall automatically be extended for one-year periods on
each annual anniversary date thereafter, unless either party notifies the other
party in writing of its desire to terminate this Agreement at least thirty (30)
days prior to such annual anniversary date.

                        During the Term hereof, the Company shall have the right
to terminate this Agreement effective upon delivery of written notice thereof to
the Advisor upon the occurrence of any of the following events:

                        (i)     If the Advisor has breached any provisions of
                                this Agreement and has failed to cure such
                                breach within thirty (30) days of written notice
                                from the Company describing such breach;

                        (ii)    If the Advisor fails or is unable for any reason
                                to substantially perform the duties required of
                                him hereunder due to a mental or physical
                                illness, condition, incapacity or disability,
                                for a continuous period of sixty (60) days;

                        (iii)   Upon the death of Venkat.

                        Upon termination of this Agreement for any reason, the
Advisor shall be entitled to be paid (i) an amount equal to all reimbursable
expenses the Advisor has incurred in accordance with the terms hereof, in
providing services hereunder prior to the termination date, and (ii) all fees
payable to the Advisor pursuant to Section 6(a) hereof, earned by the Advisor
with respect to the advisory services rendered prior to the date of termination,
which shall remain due and payable in full in the manner contemplated by Section
6 above. The Advisor shall render a final invoice for all reimbursable expenses.
Notwithstanding any other language to the contrary granted herein, if the
Company terminates this Agreement prior to May 18, 2003 for any reason other
than those set forth in subsections (i) - (iii) immediately above, all stock
options granted to Venkat pursuant to Sections 1(b) and 6(b) hereof, shall
automatically vest 100% and immediately become exercisable for a one-year period
after the effective date of termination. Otherwise, all unvested options shall
automatically and immediately be forfeited and null and void and of no further
legal force or effect upon termination of this Agreement. Upon termination of
this Agreement, the Advisor shall immediately return to the Company all
information, records and other materials which the Company may have provided to
the Advisor and Company shall return to the Advisor any property of the Advisor
not purchased and paid for by the Company.

        10.     NONCOMPETITION. During the Term of this Agreement, neither
Venkat nor Advisor will engage in, carry on, consult with, or otherwise
participate in as a designing or advisory Advisor, directly or indirectly, any
business in competition with the microwave cancer treatment device or liposome
drug therapy for cancer treatment that is being designed, developed,
manufactured, marketed, distributed and sold by the

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Company, either for himself, as a member of a partnership, as a stockholder
(except as a stockholder of less than one percent (1%) of the issued and
outstanding stock of a publicly-held corporation whose gross assets exceed one
hundred million dollars) or as an investor, employee, officer, director,
advisor, agent, or associate of any person, partnership, corporation or other
entity (other than the Company) that is in such business.

        11.     CONFIDENTIAL INFORMATION. Venkat and the Advisor each agree that
the Company's business interests require a confidential relationship between the
Company and the Advisor and the fullest practical protection and confidential
treatment of all proprietary information, trade secrets and know-how of the
Company, including without limitation, all concepts, techniques, ideas,
protocols, formulae, devices, methods, designs, plans, procedures, programs,
inventions, innovations, and information regarding customers, costs, prices,
earnings, products, systems, sources of supply, and marketing, financial and
business budgets and plans (collectively the "Confidential Information"), which
the Company provides the Advisor access to in connection with the Advisor's
services under this Agreement. Venkat and the Advisor each agree, both during
the Term of this Agreement and thereafter for so long as any such information
remains confidential and proprietary to the Company, to keep secret and treat
confidentially all such Confidential Information, and not to disclose, divulge,
reveal, report, publish, transfer, or use or aid others in using, any such
Confidential Information. If either Venkat or the Advisor provides any of the
Company's Confidential Information to any subcontractor, the Advisor will make
certain that the subcontractor is legally obligated to maintain the
confidentiality of such information.

        Venkat and the Advisor each acknowledge and agree that all Confidential
Information relative to the Company's microwave technology and devices for
treating cancer, as well as all formulae and ideas concerning liposome drug
therapy, shall remain the sole and exclusive property of the Company, and all
improvements, enhancements or modifications to the Company's devices, technology
or drug therapy formulae and techniques developed by the Advisor or under
Advisor's supervision as part of his advisory services hereunder shall be the
sale and exclusive property of Celsion.

        The obligation to maintain the confidentiality of such information shall
not apply to any information:

                (a)     which is publicly known or generally known within the
trade;

                (b)     which becomes publicly known or generally known within
the trade without breach of any obligation of the recipient to the disclosing
party;

                (c)     which is obtained by the recipient from someone not a
party to this Agreement if the recipient is not aware of any such obligation on
the part of the person or entity providing the information to keep such
information confidential; or

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                (d)     which is required to be disclosed by law, court order or
government regulation.

        12.     REMEDIES. Venkat and the Advisor each recognize and acknowledge
that if Venkat breaches the provisions of Sections 10 or 11, damages to the
Company would be difficult if not impossible to ascertain, and because of the
immediate and irreparable damage and loss that may be caused to the Company for
which it would have no adequate remedy, the Advisor therefore agrees that the
Company, in addition to and without limiting any other remedy or right it may
have, shall be entitled to seek an injunction or other equitable relief in any
court of competent jurisdiction, enjoining any such breach, and Venkat and the
Advisor each hereby waives any and all defenses he/it may have on the grounds of
lack of jurisdiction or competence of a court to grant such an injunction or
other equitable relief. The existence of this right shall not preclude the
applicability or exercise of any other rights and remedies at law or in equity
which the Company may have.

        13.     INDEPENDENT CONTRACTOR. In rendering services hereunder, the
Advisor is acting solely as an independent contractor and not as an agent,
employee or partner of the Company for any purpose. Neither Venkat nor the
Advisor has any authority to bind the Company in any contractual manner nor to
represent to others than the relationship between the Company and the Advisor is
other than stated herein. The Advisor shall be responsible for filing all tax
returns and paying all federal, state, local and foreign taxes (including
without limitation, income taxes, employment taxes, unemployment taxes and
self-employment taxes) due with respect to the compensation paid to the Advisor
and Venkat pursuant to Section 6 hereof. Other than the stock options granted to
Venkat pursuant to Section 6 hereof, neither Venkat nor the Advisor shall be
entitled as a result of any services provided under this Agreement to
participate in or receive any benefits from any employee benefit plan maintained
by the Company.

        14.     ARBITRATION. Subject to the provisions of Section 12, the
parties shall attempt in good faith to resolve all claims, disputes and other
disagreements arising hereunder by negotiation. In the event that a dispute
between the parties cannot be resolved within thirty (30) days of written notice
from one party to the other party, such dispute shall, at the request of either
party, after providing written notice to the other party, be submitted to
arbitration in Columbia, Maryland in accordance with the arbitration rules of
the American Arbitration Association then in effect. The notice of arbitration
shall specifically describe the claims, disputes or other matters in issue to be
submitted to arbitration. The parties shall jointly select a single arbitrator
who shall have the authority to hold hearings and to render a decision in
accordance with the arbitration rules of the American Arbitration Association.
If the parties are unable to agree within ten (10) days, the arbitrator shall be
selected by the Chief Judge of the Circuit Court for Howard County, Maryland.
The discovery rights and procedures provided by the Federal Rules of Civil
Procedure shall be available and enforceable in the arbitration proceeding. The
written decision of the arbitrator so appointed shall be conclusive and binding
on the parties and enforceable by a court of competent jurisdiction. The
expenses of the

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arbitration shall be borne equally by the parties to the arbitration, provided,
however, that each party shall pay for and bear the cost of its own experts,
evidence and legal counsel, unless rules otherwise in the arbitration. Both
parties agree to use their best efforts to cause a final decision to be rendered
with respect to the matter submitted to arbitration within sixty (60) days after
its submission.

        15.     REPRESENTATION BY COUNSEL. Each of the parties hereto
acknowledges that (i) it or he has read this Agreement in its entirety and
understands all of its terms and conditions, (ii) it or he has had the
opportunity to consult with any individuals of its or his choice regarding its
or his agreement to the provisions contained herein, including legal counsel of
its or his choice, and any decision not to was its or his alone, and (ii) it or
he is entering into this Agreement of its or his own free will, without coercion
from any source.

        16.     MISCELLANEOUS.

                (a)     This Agreement constitutes the entire agreement between
the parties, superseding all prior agreements, either oral or written. This
Agreement may not be amended or any provision hereof waived except by a document
signed by both parties hereto. This Agreement may not be terminated except as
provided herein.

                (b)     This Agreement shall be deemed to be made in and shall
be governed and construed in accordance with the laws of the State of Maryland,
excluding principles of conflicts of law. Any legal action to enforce any
arbitral awards under this Agreement shall be brought in the courts of the State
of Maryland.

                (c)     Any notice given under this Agreement shall be given
when delivered in person or by registered or certified mail, postage prepaid,
return receipt requested or by other delivery service providing evidence of
receipt, to the party to whom such notice is to be given at the following
address or at such other address as either party shall hereafter give notice of
to the other in writing:

               If to the Company to: Celsion Corporation
                                     10220-1 Old Columbia Road
                                     Columbia, Maryland 21046-1705
                                     Attn:  Anthony Deasey

               If to Advisor to:     Dr. Kris Venkat
                                     Sundari Enterprises
                                     c/o Morphochem, Inc.
                                     11 Deer Park Drive, Suite 116
                                     Monmouth Junction, New Jersey  08852

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                (d)     This Agreement shall not restrict or prevent Advisor
from pursuing other business interests or providing advisory or other services
to other parties while this Agreement is in effect.

                (e)     If the Company provides Advisor any documents or records
of the Company or copies thereof in connection with the services provided by the
Advisor under this Agreement, Advisor will, at the Company's request at any
time, promptly return all of such documents and records to the Company at the
Company's expense.

                (f)     This Agreement is effective as of the date hereof and
shall be legally binding upon and inure to the benefit of, the parties hereto
and their respective heirs, personal representatives, successors and permitted
assigns. As used herein, the term "successors" shall include without limitation,
any successor by way of share exchange, merger, consolidation, sale of all or
substantially all of the assets, or similar reorganization. Neither party may
assign any of its rights or obligations hereunder without the prior written
consent of the other party.

                (g)     If any one or more of the terms or provisions of this
Agreement shall for any reason be held to be invalid, illegal or unenforceable,
in whole or in part, such provision(s) shall be deemed null and void, and the
remaining provisions of this Agreement shall remain operative and in full force
and effect.

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        IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed by their duly authorized representatives effective as of the date
written above.

WITNESS/ATTEST:                     CELSION CORPORATION

[SIG]                               By: /s/ ANTHONY P. DEASEY             (SEAL)
--------------------------------        ----------------------------------
                                         Print Name: ANTHONY P. DEASEY
                                                     ---------------------
                                         Title: SVP/FINANCE/CFO
                                                --------------------------

                                    SUNDARI ENTERPRISES

[SIG]                               By: /s/ KRIS VENKAT                   (SEAL)
--------------------------------        ----------------------------------
                                         Print Name: K. Venkat
                                                     ---------------------
                                         Title: CHAIRMAN/CEO
                                                --------------------------

[SIG]                               /s/ KRIS VENKAT                       (SEAL)
--------------------------------    --------------------------------------
                                        Kris Venkat

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                                                                   EXHIBIT 10.28

                              SETTLEMENT AGREEMENT

         THIS AGREEMENT, dated and effective as of August 31, 2001, is by and
between AmeriVision Communications, Inc., an Oklahoma corporation (the
"COMPANY"), and Tracy C. Freeny, an Oklahoma resident ("FREENY").

                             BACKGROUND INFORMATION

          The Company and Freeny are currently opposing parties in a civil
lawsuit pending presently in the Seventh Judicial District for the State of
Oklahoma, Oklahoma County, styled AmeriVision Communications, Inc.,
(Substituted) Plaintiff vs. Tracy Freeny, et al., Defendants, Case No.
CJ-2001-1939 (the "Lawsuit"), and mutually desire to settle fully the Lawsuit on
the terms and conditions set forth herein. They are also parties to an
employment agreement the terms of which have been the subject of a dispute and
which they now wish to terminate and convert into an independent consulting
arrangement, and Freeny has recently been elected to membership on the Company's
Board of Directors, thereby creating possible difficulties for the Company in
its relationship with a primary institutional lender which he wishes to
ameliorate.

          NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby mutually acknowledged, the parties agree as
follows:

                              OPERATIVE PROVISIONS

1. DISMISSAL OF LAWSUIT. As soon as practicable following the signing of this
Agreement, the Company shall dismiss the Lawsuit by filing its dismissal with
the court in substantially the following form:

                    IN THE DISTRICT COURT FOR OKLAHOMA COUNTY
                                STATE OF OKLAHOMA

AMERIVISION COMMUNICATIONS, INC.,      )
         (Substituted) Plaintiff,      )
vs.                                    )    Case No. CJ-2001-1939
                                       )
TRACY FREENY, et al.,                  )
                       Defendants.     )

                                    DISMISSAL

          For value received, Plaintiff hereby dismisses with prejudice to
refiling its claims against Defendant Tracy Freeny, reconfirms and reiterates
herein its previous dismissal with prejudice to refiling its claims against
Defendant Jay A. Sekulow, and dismisses without prejudice to refiling its claims
against Defendants Carl Thompson and John B. Telling, each party to bear its or
his own costs and attorney fees.

                                          /s/ Attorneys for Plaintiff
<PAGE>

2. TERMINATION OF FREENY EMPLOYMENT AND EMPLOYMENT AGREEMENT. Freeny shall be
deemed to have resigned from employment with the Company, and the Company shall
be deemed to have accepted such resignation as of the close of business on
Friday, August 31, 2001, and that certain Employment Agreement, dated May 24,
1999, by and between Freeny and the Company, shall be deemed terminated and of
no further legal effect as of that same date and time. The Company shall timely
cause Freeny to be furnished with the notification required by Section
4980B(f)(6) of the Internal Revenue Code of 1986, as amended, so that Freeny may
elect continuation coverage for himself and his spouse under the Company's group
health plan, identical to the benefit coverage provided during the period of his
employment by the Company and for at least the 18 month period beginning as of
September 1, 2001.

          Concurrently with his actual execution of this Agreement, Freeny shall
return to the Company and relinquish the possession of that certain Company
owned Mercedes automobile which has been assigned to his use (the "AUTOMOBILE"),
all Company issued credit cards and any other tangible or intangible personal
property owned by the Company and currently within his possession; provided that
with respect to the Automobile, Freeny is hereby granted an option, exercisable
during the period ended September 30, 2001, to acquire title thereto from the
Company for a purchase price of $10.00 and his assumption of all obligations
for which the Company is then responsible as a consequence of its ownership of
the Automobile. If the holder of such obligation shall not allow a transfer of
title unless the Company remains as the primary obligor, then Freeny may acquire
the Automobile by acknowledging that he shall take title subject to the
obligation, shall be responsible for making all debt service and principal
amortization payments with respect thereto, and shall indemnify the Company
against and hold it harmless from all claims, liabilities, damages, costs and
expenses asserted against or incurred by the Company which arise out of Freeny's
ownership or use of the Automobile.

3. RESIGNATION FROM COMPANY BOARD OF DIRECTORS. The Company warrants and
represents to Freeny that it believes his current status as a voting member of
the Company's Board of Directors may inhibit or prevent the Company from
engaging the professional services of a nationally recognized certified public
accounting and auditing firm, and that such inability may further cause the
Company to be in breach of its obligations under the Company's agreement with
its principal lender. Therefore, effective as of the close of business on
Friday, August 31, 2001, Freeny's resignation from service as an elected member
of the Company Board of Directors, herein deemed tendered, shall be deemed
accepted by the Company. Freeny covenants and agrees that, following the
effectiveness of such resignation and subject to the provisions of the
succeeding paragraph, he shall not accept a nomination to run for the office of
Company director, nor, if elected to such office by Company shareholder action
taken over his objection, shall he serve in that position.

          Notwithstanding the foregoing, the Company's Board of Directors shall
be required, during the month of February in each calendar year, to make a good
faith determination as to whether Freeny's status as a voting member of the
Company's Board of Directors would then cause the Company to be in breach of its
obligations under the lending agreement with its principal lender or would
threaten the Company's ability either to maintain the engagement of its then
existing independent certified public accounting and auditing firm or to engage
the professional services of a new, desired CPA firm of national reputation. If
such determination results in a decision that

<PAGE>

Freeny's return to active membership on the Company's Board of Directors would
not constitute such a breach or effect such a threat, the Board of Directors
shall promptly so inform Freeny and if he, in turn, informs the Board by written
statement that he wishes to again become a member of that body, the Board shall
(a) cause his name to be submitted as a nominee for election to the Board of
Directors at the next annual meeting of the Company's shareholders; and (b)
support Freeny's election to the Board unless it shall then be in possession of
information, not presently held, which causes its membership, by unanimous vote,
to conclude that such election would not be in the best interests of the
Company's shareholders. Irrespective of whether Freeny is hereafter elected as a
member of the Company's Board of Directors, the Company acknowledges that Freeny
is a founder of the Company, that such status is not in dispute and may not be
rescinded by the Company, and that Freeny shall be so recognized in the
Company's public pronouncements, as the Board deems appropriate.

4. FREENY APPOINTMENT TO THE COMPANY BOARD OF DIRECTORS AS ADVISOR. Effective
September 1, 2001, subject to Freeny's execution and delivery of a counterpart
copy of a Confidentiality Agreement in the form of EXHIBIT A hereto (the
"CONFIDENTIALITY AGREEMENT"), and to his future performance in accordance with
its terms and the terms of this Agreement, Freeny shall constitute an advisor to
the Company's Board of Directors, and in such capacity may attend all meetings
of the Board of Directors, as well as each meeting of any Board committee to
which he may be appointed as a member; provided that Freeny (a) shall have no
right to vote on any matter coming before the Board of Directors or any such
committee; and (b) shall receive no fee for serving as a Board advisor. He
shall, however, be entitled to reimbursement for reasonable and substantiated
travel and lodging expenses associated with attendance at meetings of the Board.
Freeny's status as an advisor shall continue until the earliest to occur as
among (a) the termination of that certain Consulting Agreement identified in
paragraph 7 below; (b) Freeny's appointment as a member of the Company's Board
of Directors as described in paragraph 3 above; or (c) Freeny's breach of any
obligation set forth in the Confidentiality Agreement or this Agreement.

5. REIMBURSEMENT OF FREENY ATTORNEY FEES. The Company shall reimburse Freeny to
the extent of $45,000 for attorney fees he has incurred since January 1, 2001,
in defending himself in the Lawsuit, and in engaging legal representation to
represent him in the defense of disputed allegations of wrongdoing made against
him by the Company outside of the Lawsuit. Subject to the Company's working
capital availability, the determination of which shall be made by the Company in
good faith, one-half of such payment ($22,500) shall be made by the Company on
Friday, September 21, 2001; and the remaining payment ($22,500) shall be made on
Friday, October 5, 2001; provided that if either such payment shall be deferred
as a consequence of the Company's determination of working capital
insufficiency, the same shall be made in any event no later than 30 days
following its due date.

6. AWARD OF COMPANY COMMON STOCK. For his service as a member of the Board of
Directors between the date of his election and August 31, 2001, and pursuant to
the terms and conditions of a resolution of the Company's Board of Directors
passed unanimously at the Board's meeting of July 27-28, 2001, the Company shall
issue to and in favor of Freeny 1,000 shares of its authorized but previously
unissued common capital stock, $.01 par value (the "COMMON STOCK"), at the time,
in the manner, and pursuant to the same terms and conditions applicable to each
other

<PAGE>

member of the Board as constituted on July 27-28, 2001; provided that any
condition of issuance that requires continued service as a voting member of the
Company's Board of Directors is hereby waived.

7. CONSULTING AGREEMENT. The parties hereto shall execute and deliver to each
other a Consulting Agreement in the form of EXHIBIT B hereto, the effective date
of which shall be September 1, 2001 (the "CONSULTING AGREEMENT").

8. VOTING TRUST FOR FREENY STOCK. During the pendency of the Consulting
Agreement (the "VOTING TRUST TERM"), Freeny shall cause all shares of the
Company's Common Stock then registered in his name, either individually or
together with one or more additional parties, which exceed 4.99% of all shares
of the Company's Common Stock then issued and outstanding, to be held within and
subject to the terms of a Voting Trust Agreement, in the form attaching hereto
as EXHIBIT C.

9. PAYMENT OF FREENY BACK PAY. The Company covenants that Freeny is entitled to
but has not been paid compensation due him under the terms of the Employment
Agreement from February 23, 2001, through August 31, 2001, in the gross sum of
$176,356.44 (the "BACK PAY"). The Company shall pay Freeny his Back Pay, less
any portion thereof which the Company is required by federal or state law to
withhold, in accordance with the terms and conditions of that Promissory Note
which attaches hereto as EXHIBIT D, the original of which shall be executed by
the Company and delivered to Freeny concurrently with the execution of this
Agreement.

10. MUTUAL RELEASES. For value received, and except as expressly set forth
herein and in the Exhibits attaching hereto (the terms of each of which are
incorporated into the body of this Agreement by express reference thereto), each
of the parties hereby releases and discharges the other, and, as the case may
be, its or his respective officers, directors, agents, employees, attorneys,
spouses, heirs, successors and assigns, of and from any and all liabilities,
debts, claims, damages, and causes of action, of whatever kind or character,
whether arising in tort or contract, law or equity, known or unknown, which
relate to or arise out of any transaction, occurrence or event that took place
on or before the date of this Agreement, including, but not limited to, all
claims that were alleged or could have been alleged in the Lawsuit, any claim by
Freeny against the Company for unpaid dividends or other distributions in
respect of his Common Stock ownership (expressly including the $3,201,000
identified in the Company's audited consolidated financial statements, prepared
with respect to the year ended December 31, 2000, as constituting accrued but
unpaid distributions), and any claim by the Company for reimbursement from
Freeny for any amount paid or owed by the Company to any third party. It is
expressly agreed that this release shall not be deemed to deny to either party
the right to prosecute a cause of action against Jerry Parry.

11. DUTY OF INVESTIGATION. On or before March 31, 2002, the Company shall
conduct and complete a good faith investigation into the facts and
circumstances surrounding the original filing and prosecution of the Lawsuit by
Mr. Parry and, in particular, (a) the involvement, if any, of the Company, its
officers and directors; and, (b) the merits of the claims asserted against
Freeny in the Lawsuit, and in the Company's annual report on Form 10-K, as filed
with the United States Securities and Exchange Commission (the "COMMISSION") for
the period ended December 31, 2000,

<PAGE>

and its separate Proxy Statement, filed in amended form with the Commission on
or about June 7, 2001 (collectively the "SEC FILINGS"). If such investigation
concludes that the accusations against Freeny in the Lawsuit and/or SEC Filings
were materially erroneous, in whole or in part, then the Company shall promptly
(a) advise Freeny in writing of such determination(s); and, (b) correct in
writing as needed the SEC Filings either by amendment to the applicable SEC
Filing or in a subsequent filing, as the Company, in its sole discretion, deems
appropriate, taking into account the reputation of the Company and of Freeny. It
is expressly agreed, however, that the results of such investigation shall not
affect, in whole or in part, the enforceability of any term of this Settlement
Agreement by or against any party.

12. NON-DISPARAGEMENT. During the pendency of the Consulting Agreement and the
two year period following its termination, neither party may release or publish
any statement or other information concerning Freeny's employment with or
independent engagement by the Company, the termination of either such
relationship or the other's business operations or practices, unless, in any
such case, the same shall have been approved by the other or such release or
publication shall be required by statute, regulation or judicial order. EXHIBIT
E hereto constitutes a statement approved by the parties for dissemination, on
or after the date of this Agreement, by Freeny or the Company as he or it shall
deem appropriate.

13. MISCELLANEOUS:

          13.1 NOTICE. Any notice or other communication required or made
necessary by this Settlement Agreement shall be in writing, given to the parties
at the following addresses, and deemed received within five (5) days after being
sent first class mails, postage prepaid:

         IF TO THE COMPANY:               IF TO FREENY:
c/o      Jeremy P. Ross, Esq.             Patrick M. Castleberry, Esq.
         Bush Ross Gardner Warren         Kline, Kline, Elliott, Castleberry
                & Rudy, P.A.                      & Bryant, P.C.
         220 South Franklin Street        720 NE 63rd Street
         Tampa, FL 33602                  Oklahoma City, OK 73105

         13.2 GOVERNING LAW. This Agreement shall be construed and enforced in
accordance the laws of the State of Oklahoma.

         13.3 ASSIGNMENT. The rights and responsibilities under this Agreement
may not be assigned by any party without the express written consent of all
other parties.

         13.4 WAIVER OR MODIFICATION. This Agreement constitutes the entire
agreement of the parties, and may be modified, amended or waived only by written
instrument executed by all parties.

         13.5 COUNTERPARTS. This Agreement may be executed in any number of
counterparts, by means of multiple signature pages each containing less than all
required signatures, and by means of facsimile signatures, each of which shall
be deemed an original, but all of which together shall constitute one and the
same instrument.

<PAGE>

         13.6 ENFORCEMENT. This Agreement may be specifically enforced in a
court of competent jurisdiction located in Oklahoma County, Oklahoma, which
venue shall be exclusive, without the necessity of posting bond or other
financial undertaking, the prevailing party to receive an award of reasonable
attorney fees in addition to such other relief as the court deems proper.

         IN WITNESS WHEREOF, the parties have hereunto set their hands intending
to be bound hereby for the uses and purposes herein set forth.

THE COMPANY:                            FREENY:

/s/ KENNETH R. KOLEK                    /s/ TRACY C. FREENY
------------------------------------    ---------------------------------------
Kenneth R. Kolek, Chairman              Tracy C. Freeny
AmeriVision Communications, Inc.

Exhibits:

Exhibit A - Confidentiality Agreement
Exhibit B - Consulting Agreement
Exhibit C - Voting Trust Indenture
Exhibit D - Promissory Note
Exhibit E - Statement

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