Document:

FIRST AMENDMENT OF
                               AGREEMENT OF LEASE
                                  JUNE 15, 1999

Between:   FIVE REGENT PARK ASSOCIATES (Landlord)
           a New Jersey Partnership
           c/o Eastman Management Corporation
           651 West Mount Pleasant Avenue
           Livingston, New Jersey 07039

And:       AMERICAN DISEASE MANAGEMENT ASSOCIATES (Tenant)
           #5N Regent Street
           Livingston, New Jersey 07039

RE:        #5N Regent Street
           Livingston, New Jersey 07039

           Lease Dated July 22, 1996

                                   WITNESSETH
                                   ----------

WHEREAS, on July 22, 1996, the parties entered into a Lease Agreement for office
space in the building known as #5N Regent Street,  Livingston,  New Jersey;  and
herein referred to as the "Lease";

WHEREAS, both parties now desire to further amend the aforesaid Lease Agreements
by extending schedule and other term modify terms;

NOW THEREFORE,  for and in  consideration of the mutual covenants set forth, the
receipt and sufficiency of which are mutually  acknowledged,  the parties hereto
agree to amend the original Lease Agreement,  dated July 22, 1996 and subsequent
Amendment of Lease as follows;

1.   The lease Term as defined in the Lease  shall be  extended  for a period of
     twenty (24) months beginning November 1, 1999.

2.   Beginning  November  1, 1999 the Basic Rent shall be  $49,774.50  per annum
     payable in advance in equal monthly installments of $4,147.88

3.   Landlord  shall  refund a portion  of the total  Security  Deposit  held by
     Landlord  pursuant to the Lease in following  manner:  On January 31, 2000.
     April 30,2000, July 31,2000, and October 31,2000,  Landlord shall refund to
     Tenant $1,782.00 of Security Deposit

4.   In all other respects,  except as expressly modified herein, the said Lease
     and Lease Amendments between the parties are hereby ratified and confirmed.

<PAGE>

               IN WITNESS WHEREOF,  the parties have hereunto set their hands on
the date first written above.

WITNESS:                                (Landlord)
                                        FIVE REGENT PARK ASSOCIATES
                                        By: Janfel-JBS Corp., a General Partner

/s/ Ronald D. Debiasse                  By: /s/ Peter Schofel
----------------------                      ------------------------------
                                            Peter Schofel, Vice President

ATTEST:                                 (Tenant)
                                        AMERICAN DISEASE MANAGEMENT
                                        ASSOCIATES

/s/ Elizabeth Williams                   By: /s/ Bruce Blake
-----------------------                      -----------------------------
                                             Bruce Blake, PresidentSECOND AMENDMENT OF
                               AGREEMENT OF LEASE
                                FEBRUARY 11, 2000

Between:       FIVE REGENT PARK ASSOCIATES (Landlord)
               a New Jersey Partnership
               c/o Eastman Management Corporation
               651 West Mount Pleasant Avenue
               Livingston, New Jersey 07039

And:           AMERICAN DISEASE MANAGEMENT ASSOCIATES (Tenant)
               #5N Regent Street
               Livingston, New Jersey 07039

RE:            Lease Dated July 22, 1996
               First Amendment Dated June 15, 1999

                                   WITNESSETH
                                   ----------

WHEREAS, on July 22, 1996, the parties entered into a Lease Agreement for office
space in the building known as #5N Regent Street,  Livingston, New Jersey; and a
First  Amendment of Agreement of Lease dated June 15, 1999 herein referred to as
the "Lease";

WHEREAS, the parties now desire to amend the aforesaid Lease Agreement by taking
additional  space in the  Building in Suite 512 as shown on the sketch  attached
hereto as Exhibit "A" ("Expansion Area"); extending the term and modifying other
terms of the Lease.

NOW THEREFORE,  for and in  consideration of the mutual covenants set forth, the
receipt and sufficiency of which are mutually  acknowledged,  the parties hereto
agree to amend the original Lease Agreement,  dated July 22, 1996 and subsequent
Amendment of Lease as follows;

1.   Contingency: This Amendment shall be contingent upon Landlord's obtaining a
     Release and Early  Termination  Agreement  from the current lessee of Suite
     512 within 30 days of execution of this  Amendment.  If such release is not
     obtained  within said 30 day period,  this Amendment shall be null and void
     and of no effect.

2.   Beginning on the date Landlord  substantially  completes the work set forth
     in paragraph 3 below, ("Expansion Area Commencement Date"), the Basic Rent,
     as the term is defined in the Lease for the Expansion  Area shall be in the
     amount of $33,750.00  per annum or $2,812.50  per month.  Tenant shall also
     pay, as  additional  Rent for the  Expansion  Area,  the initial  amount of
     $1,041.66 per month.

3.   Beginning on the Expansion Area Commencement  Date, the Premises as defined
     in the Lease shall be expanded by 2,500  square  feet.  The total  Rentable
     Area of the Premises and  Expansion  Area shall be 6,187,  and the Tenant's
     Proportionate Share shall be 9.00%.

4.   Landlord  shall  perform in the  Expansion  Area,  the  renovation  work as
     outlined on the attached  floor plan,  Exhibit A, as soon as practical upon
     the execution of this Amendment and satisfaction of the Contingency.

<PAGE>

American Disease Management Associates
Second Amendment of Agreement of Lease
PAGE 2

5.   The Lease  Term,  as that term is defined on page 2 of the  Original  Lease
     Agreement  shall  be for a  period  of  thirty-six  (36)  months  from  the
     Expansion Area Commencement  Date. The Term for the original Premises shall
     be extended

6.   Paragraph 3 of the First  Amendment  of Agreement of Lease shall be deleted
     and replaced with the following:

          "Landlord shall refund a portion of the total Security Deposit held by
          Landlord  pursuant to the Lease in following manner: On April 1, 2000.
          July 1, 2000,  October  1,2000,  and December 1, 2000,  Landlord shall
          refund to Tenant $781.00 of Security Deposit"

7.   Effective upon the Expansion Area Commencement  Date, all references to the
     term  Expansion  Area shall also have the same  meaning as  Premises in the
     Lease except, except as otherwise modified herein.

8.   Tenant shall not disclose any facts or terms of this Agreement to any third
     party including former, current or future tenants of the Building.

9.   In all other respects,  except as expressly modified herein, the said Lease
     and Lease Amendments between the parties are hereby ratified and confirmed.
     Any terms not herein defined shall have the same meaning as in the Lease.

               IN WITNESS WHEREOF,  the parties have hereunto set their hands on
the date first written above.

WITNESS:                              (Landlord)
                                       FIVE REGENT PARK ASSOCIATES
                                       By: Janfel-JBS Corp., a General Partner

/s/ Joanne Tufano                     By: /s/ Peter Schofel
----------------------------             -------------------------------------
                                          Peter Schofel, Vice President

ATTEST:                                (Tenant)
                                       AMERICAN DISEASE MANAGEMENT
                                       ASSOCIATES

/s/ Elizabeth Williams                 By: /S/ Bruce Blake
--------------------------]               -----------------------------------
                                           Bruce Blake, PresidentFebruary 8, 1999

VIA FEDERAL EXPRESS

Mr. Recie Bomar
196 Old River Road, #612
Lincoln, Rhode Island 02865

             RE: MIM CORPORATION

Dear Recie:

         MIM Corporation,  a Delaware corporation (the "Company"), is pleased to
offer you employment as the Vice President - Sales and Marketing of the Company,
on the terms and  subject  to the  conditions  set  forth  below.  The terms and
conditions of your  employment,  upon your execution and delivery of this letter
to us, will be as follows:

1.  POSITION AND DUTIES:                Vice  President - Sales and Marketing of
                                        the Company, with overall responsibility
                                        for  sales  and  marketing  areas of the
                                        Company   and   its   subsidiaries   and
                                        affiliates  including,  but not  limited
                                        to:

                              (i)       Preparation      of,     and     primary
                                        responsibility  for sales and  marketing
                                        plans   of   the   Company's   and   its
                                        subsidiaries' products and services;

                              (ii)      implementing  sales and marketing  plans
                                        and overall responsibility for sales and
                                        marketing  personnel and the  generation
                                        of sales related revenues; and

                              (iii)     the hiring and  termination of personnel
                                        in  support  of the sales and  marketing
                                        group,  with the prior approval of Chief
                                        Executive Officer.

                                        In such  capacity,  you shall report to,
                                        and shall  have such  further  duties as
                                        shall  be   assigned   to  you  by,  the
                                        Company's   Chief   Executive   Officer,
                                        Richard H. Friedman.

2. TERM:                                Subject to the  execution  and
                                        delivery of this letter, a Non-Qualified
                                        Stock Option Agreement  substantially in
                                        the form  attached  hereto as  Exhibit A
                                        (the   "Option   Agreement")   and   the
                                        Restrictive Covenants attached hereto as
                                        Exhibit   B,   your   employment   shall
                                        commence   and  shall   continue   until
                                        terminated  by you or the  Company.  The
                                        first  year  of  your  employment  shall
                                        terminate  on December  31,  1999.  Each
                                        year of your employment thereafter shall
                                        coincide with the calendar year.

<PAGE>

Mr. Recie Bomar
February 8, 1999
Page 2

3. BASE COMPENSATION:         Your  base   salary   shall  be  at  the  rate  of
                              $180,000.00 per calendar year,  payable bi-weekly,
                              or at such other times as other  employees  of the
                              Company are paid generally.  Your  performance and
                              compensation  shall be reviewed twelve (12) months
                              after  the  commencement  of your  employment  and
                              every twelve (12) months thereafter.  However, any
                              increase  in  your  compensation  shall  be in the
                              Company's sole and absolute discretion.

4. BONUS COMPENSATION:        During your  employment,  you shall be eligible to
                              receive  bonus  compensation  under the  Company's
                              1998 executive bonus program (the "Bonus Program")
                              established  for the benefit of senior  executives
                              of  the   Company.   During  your  first  year  of
                              employment ending December 31, 1999, you will only
                              be entitled to receive the cash  component  of the
                              Bonus Program pro-rata based on the number of days
                              you were employed by the Company  during the first
                              year of your  employment  bears to a full calendar
                              year.

                              Eligibility for the aforementioned bonuses will be
                              premised upon your continuing  employment  through
                              the end of the calendar year to which the bonus in
                              any year of your employment  relates,  and will be
                              subject to the terms and  conditions  of the Bonus
                              Program.  The Bonus Program was created to provide
                              senior  executives  of the  Company  with cash and
                              equity    incentives    upon   reaching    certain
                              predetermined   revenue,    earnings   and   share
                              performance goals. Attached hereto as Exhibit C is
                              an   outline  of  the  Bonus   Program   and  your
                              entitlements  thereunder  as well as an example of
                              the way in which the Bonus  Program  would  affect
                              your grants  thereunder.  The terms and conditions
                              of the  Bonus  Program  shall  be  subject  to the
                              completion   of  definitive   documentation   with
                              respect thereto. If there shall exist any conflict
                              between this Agreement  (including  Exhibit B) and
                              the definitive  documentation  governing the Bonus
                              Program,  the  definitive  documentation  (and not
                              this agreement) shall control.

                              All  base,  bonus or other  compensation  received
                              shall be subject to applicable federal,  state and
                              local withholding and other taxes.

<PAGE>

Mr. Recie Bomar
February 8, 1999
Page 3

5. TRANSPORTATION ALLOWANCE:  During your  employment,  the Company will provide
                              you with a monthly  allowance  of $500 for the use
                              of an automobile.

6. RELOCATION ALLOWANCE:      The  Company  will  provide  you  with  a  $25,000
                              relocation   allowance  in  connection  with  your
                              relocation  to  the  Company's   chief   executive
                              offices located in Elmsford,  NY, You will receive
                              your relocation  allowance upon the later to occur
                              of (i) the  completion  of the  move  to your  new
                              primary  residence in the  Elmsford,  NY vicinity,
                              and seven  days from and after  your  first day of
                              employment with the Company.

7. SIGNING BONUS:             The Company  will pay you,  within seven days from
                              and after your first date of employment,  $25,000,
                              net of applicable withholding.

                              You agree that you will repay to the  Company  all
                              amounts  paid  to  you  or on  your  behalf  under
                              Sections  6 and 7  hereof  if you  terminate  your
                              employment  with the Company on or before March 1,
                              2000.  In such  event,  all such  amounts  will be
                              repaid  by you on or  before  the last day of your
                              employment.

8. PARTICIPATION IN HEALTH
   BENEFIT PLANS; VACATION:   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  maintained  by or on  behalf of the
                              Company,  commensurate with your position with the
                              Company.  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.
                              You shall also be  entitled  to receive  $3,000.00
                              toward  life  insurance  premiums,  grossed up for
                              federal and state  taxes.  You will be entitled to
                              three  weeks of vacation in 1999 and four weeks of
                              vacation  thereafter.  All  such  benefits  may be
                              amended   or   modified   from  time  to  time  or
                              terminated by the Company in its sole and absolute
                              discretion.

9.  EXPENSES:                 Subject to such  policies as may from time to time
                              be   established   by  the   Company's   Board  of
                              Directors,  the Company will pay or reimburse  you
                              for all reasonable and necessary expenses actually

<PAGE>

Mr. Recie Bomar
February 8, 1999
Page 4

                              incurred  or paid by you  during  the term of your
                              employment in the performance of your duties under
                              this  agreement,  upon  submission and approval of
                              expense  statements,  vouchers or other reasonable
                              supporting information in accordance with the then
                              customary practices of the Company.

10. SEVERENCE;
    CHANGE OF CONTROL:        If,  within the  three-month  period  following  a
                              "Change of Control"  (as defined  below),  you are
                              terminated by the Company or a successor entity or
                              you elect to terminate your  employment  after the
                              Company  or  such  successor   entity   materially
                              reduces  your  duties  and  responsibilities,   or
                              assigns you duties  materially  inconsistent  with
                              your  position  prior to such  Change of  Control,
                              then you  shall be  entitled  to  receive  six (6)
                              months  salary  and  other  benefits   earned  and
                              accrued  prior  to  the  effective   date  of  the
                              termination of your employment (and  reimbursement
                              for expenses incurred prior thereto).

                              In addition, all outstanding unvested options held
                              by  you   shall   vest  and   become   immediately
                              exercisable  and shall otherwise be exercisable in
                              accordance  with their terms.  In such event,  you
                              shall also  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.
                              Thereafter you shall have no further rights to any
                              other  compensation  or benefits  hereunder  on or
                              after  the  termination  of  employment  or  other
                              triggering event, or any other rights hereunder.

                              For  purposes  of  this   Agreement,   "Change  of
                              Control"  means  the  occurrence  of  one  of  the
                              following:

                              (i) a "person"  or "group"  within 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
                              13d-3 under the Exchange Act) of securities of the
                              Company (including options,  warrants,  rights and
                              convertible    and    exchangeable     securities)
                              representing  50% or more of the  combined  voting
                              power of the Company's then outstanding securities
                              in  any  one  or  more   transactions;   provided,
                              however, that purchases by employee benefits plans
                              of  the   Company   and  by  the  Company  or  its
                              affiliates shall be disregarded; or

<PAGE>

Mr. Recie Bomar
February 8, 1999
Page 5

                              (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 the Company; or

                              (iii) a merger or consolidation,  or a transaction
                              having  a  similar  effect  (unless  such  merger,
                              consolidation  or  similar  transaction  is with a
                              subsidiary of the Company or with another company,
                              a majority of whose  outstanding  capital stock is
                              owned by the same  persons or entities who at that
                              time own a majority of the  Company's  outstanding
                              common stock (the "Common Stock")),  where (A) the
                              Company is not the surviving corporation,  (B) the
                              majority of the Common  Stock of the Company is no
                              longer  held by the  stockholders  of the  Company
                              immediately  prior to the transaction,  or (C) the
                              Company's  Common  Stock is  converted  into cash,
                              securities  or  other  property  (other  than  the
                              common  stock of a company  into which the Company
                              is merged).

11.  RESTRICTIVE COVENANTS:   Contemporaneously  with the  commencement  of your
                              employment,  you shall  execute  and  deliver  the
                              Restrictive  Covenants  substantially  in the form
                              attached hereto as Exhibit B, whereby, among other
                              things,  you will  agree to not  compete  with the
                              "Business" of the Company (as defined)  during the
                              term of your  employment  and for a period  of one
                              year  following  such   termination   and  to  not
                              disclose to any third  party any trade  secrets or
                              proprietary  information  relating to the Company,
                              now or hereafter acquired by you.

12. ASSIGNABILITY; BINDING
    NATURE:                   This  agreement is binding upon, and will inure to
                              the  benefit  of  the  parties  hereto  and  their
                              respective  successors,   heirs,   administrators,
                              executors  and  assigns.  None of your  rights  or
                              obligations    under   this   agreement   may   be
                              transferred  by will  or  operation  of  law.  The
                              rights and  obligation  of the Company  under this
                              agreement  may  be  assigned  or   transferred  by
                              operation  of law  in the  event  of a  merger  or
                              consolidation  in  which  the  Company  is not the
                              continuing  entity,  or the sale or liquidation of
                              all or  substantially  all of  the  assets  of the
                              Company.

<PAGE>

Mr. Recie Bomar
February 8, 1999
Page 6

13. ENTIRE AGREEMENT:         This  agreement  supersedes  all prior  agreements
                              and,  together  with  the  Option  Agreement,  the
                              Confidentiality  Agreement and the Non-Competition
                              Agreement,  contains the entire agreement  between
                              the parties concerning the subject matter hereof.

14. AMENDMENTS AND WAIVERS:
                              This  agreement  may  not  be  modified,  amended,
                              waived,  discharged or terminated orally, but only
                              by an  instrument  in writing  signed by the party
                              against whom  enforcement  of the change,  waiver,
                              discharge or termination is sought.

15.  NOTICES:                 Any notice given  hereunder must be in writing and
                              will be deemed received when delivered  personally
                              or by  courier,  or  five  (5)  days  after  being
                              mailed,   certified  or  registered  mail,  return
                              receipt  requested and duly addressed to the party
                              concerned  at the  address  indicated  above or at
                              such other address as such party may  subsequently
                              provide in writing.

16. GOVERNING LAW :           The  agreement  will be governed by, and construed
                              and interpreted in accordance with the laws of the
                              State of New York.

<PAGE>

Mr. Recie Bomar
February 8, 1999
Page 7

         If  you  are in  agreement  with  the  terms  and  conditions  of  your
employment  pursuant  to this  letter  agreement,  kindly  execute  this  letter
agreement in the space provided below and return it to the undersigned.

                                   Sincerely yours,

                                   MIM Corporation

                                   BY: /S/ BARRY A. POSNER
                                       ------------------------------------
                                      Name: Barry A. Posner
                                      Title:  Vice President and General Counsel

AGREED TO AND ACCEPTED BY:

/S/ RECIE BOMAR
------------------------
Name: Mr. Recie Bomar

<PAGE>

3

                                        1

                                                                       EXHIBIT B

                              RESTRICTIVE COVENANTS

         COVENANT   AGAINST   COMPETITION;   OTHER   COVENANTS.   The  Executive
acknowledges that (i) the principal  business of the Company 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  and/or  the  purchasing  of  pharmaceutical  products  on  behalf of
pharmacy  networks  and long term care  facilities  (including  assisted  living
facilities and nursing homes) (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");  provided,  however, that Business
shall not include any areas of business  and/or services that the Company is not
engaged in at such time that the Company is sold,  merged,  consolidated  or any
other event that would constitute a "Change of Control" (as defined in Section 9
of the  Agreement),  regardless of whether the successor or acquiring  entity is
then engaged in such other areas of business and/or  services;  (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)
the Company's  Business is national in scope;  (iv) the Executive's work for the
Company  has  given and will  continue  to give him  access to the  confidential
affairs and  proprietary  information  of the  Company;  (v) the  covenants  and
agreements  of the  Executive  contained  in  these  Restrictive  Covenants  are
essential to the  business  and  goodwill of the  Company;  and (vi) the Company
would  not have  entered  into the  Agreement  (as  defined  below)  but for the
covenants and agreements set forth herein. Accordingly,  the Executive covenants
and agrees that:

         (a) At any time during his  employment  with the Company and ending one
year following (i)  termination of the  Executive's  employment with the Company
(irrespective  of the  reason  for  such  termination)  or (ii)  payment  of any
severance,  whichever  occurs last, the Executive shall not engage,  directly or
indirectly (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),  anywhere  in the  United  States  in (i) the  Business  and  (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 the Executive is employed,
the Executive  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 the Executive heretofore or
hereafter  directly or indirectly from the Company or any of its affiliates (the
"Confidential Company Information"),  including, without limitation, information

                                       1
<PAGE>

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 the  Executive 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 the  Executive is acting to
the extent  necessary to comply with legal  process;  provided that in the event
that the  Executive is 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,  he shall  immediately  notify the Company
thereof.

         (c)  During  the period  commencing  on the date  hereof and ending two
years  following the date upon which the Executive shall cease to be an employee
of the Company or its affiliates, the Executive 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 behalf of the Executive
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 the  Executive's  termination
of employment  with the Company.  During such period,  the  Executive  will not,
whether  for his 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 the  Executive or made  available to the  Executive  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.

         RIGHTS AND REMEDIES UPON BREACH OF RESTRICTIVE COVENANTS.

         (a) The Executive acknowledges and agrees 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

                                       2
<PAGE>

damages  would not  provide an  adequate  remedy.  Therefore,  if the  Executive
breaches, or threatens 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):

         (i) 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 the Executive of restraining orders and injunctions  (preliminary,
mandatory,  temporary and permanent) against  violations,  threatened or actual,
and whether or not then continuing, of such covenants.

         (ii) The right and remedy to require the  Executive  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 him as the result of any  transactions  constituting a breach of the
Restrictive  Covenants,  and the  Executive  shall account for and pay over such
Benefits to the Company and, if applicable, its affected affiliates.

         (b)  The  Executive   agrees  that  in  any  action  seeking   specific
performance or other equitable relief, he 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 the  Executive,
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/ Recie Bomar
-----------------------------
Recie Bomar

<PAGE>

                                                                       EXHIBIT C

<TABLE>
<CAPTION>
<S>                                       <C>                                    <C>
ANNUAL CASH BONUS          Target:  Up to 40% of annual                          $72,000
                           salary (At plan:1/2on
                           corporate financial results;
                           1/2 on individual results)

GRANTS OF LONG-TERM

INCENTIVES:                Deferred compensation                                 15,000 units
                           performance units
                           (Target value: $25 in 2002)

                           Performance shares                                    25,000 shares
                           (Target share price for early
                           vesting: $25-$30)

                           Subject to the terms and conditions of a              75,000   shares
                           stock   option   agreement   options  to
                           purchase  the  common  stock,  par value
                           $0.0001  per share of the  Company.  The
                           options shall vest in three equal annual
                           installments  commencing  on  the  first
                           anniversary   date  of  the  Executive's
                           employment  with  the  Company,   at  an
                           exercise  price  equal to the average of
                           the  bid  and  asked  on  the  date  the
                           Executive commences  employment with the
                           Company
</TABLE>

GENERAL DESCRIPTION
OF LONG-TERM INCENTIVES:

UNITS:  By 2001 net after-tax  earnings are targeted to grow to $27 million.  At
that level,  each performance unit granted  ("performance  Unit") would be worth
$25. Below net after-tax  earnings of $21.6 million,  Performance Units would be
worth $0.  At net  after-tax  earnings  of $21.6  million  to $27  million,  the
Performance Units would grow at a predetermined amount from a threshold value of
$10.  Above $27 million,  units can grow in value from $25 to $40 at $32 million
of net after-tax earnings.

PERFORMANCE  SHARES:  Restricted  shares that would vest at end of 2006.  IF EPS
target or $1.08 is achieved  in 2001,  vesting  will occur in early  2002,  with
similar provisions in subsequent years ($1.25 EPS in 2002, full vesting in early
2003, etc.).

NOTE:  Vesting of  "Performance  Units",  "Performance  Shares' and options will
accelerate   upon  "change  in  control",   as  defined  in  the  Bonus  Program
documentation.  Performance  Units,  Performance  Shares  and  unvested  options
forfeited upon termination of employment,  with vested options  exercised within
thirty (30) days following  termination (or in the case of death,  within a year
from death.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00023-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00023-of-00352.parquet"}], [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00023-of-00352.parquet"}]]