Document:

EXHIBIT 10.7

                              EMPLOYMENT AGREEMENT

      THIS EMPLOYMENT AGREEMENT  ("Agreement") is made and entered into the 24th
day of  March,  2000,  between  Talk.com,  Inc.,  a  Delaware  corporation  (the
"Company"), and Kevin Griffo ("Employee").

      WHEREAS,  Company  desires to employ  Employee and Employee  desires to be
employed by Company; and

      WHEREAS,  Company and Employee  desire to enter into this  Agreement  that
sets forth the terms and conditions of said employment.

      NOW THEREFORE, in consideration of the foregoing, the mutual covenants set
forth  herein  and  other  good and  valuable  consideration,  the  receipt  and
sufficiency of which is hereby  acknowledged,  the  undersigned  hereby agree as
follows:

      1.  EMPLOYMENT.  Company agrees to employ  Employee,  and Employee accepts
such  employment  and agrees to serve  Company,  on the terms and conditions set
forth  herein.  Except as otherwise  specifically  provided  herein,  Employee's
employment shall be subject to the employment  policies and practices of Company
in effect from time to time during the term of Employee's  employment  hereunder
(including,   without  limitation,   its  practices  as  to  tax  reporting  and
withholding).

      2. TERM OF AGREEMENT.  The term of Employee's  employment  hereunder shall
commence  on the date  hereof (the  "Commencement  Date") and shall  continue in
effect for a period of three years  thereafter,  except as hereinafter  provided
(the "Term").

      3. POSITIONS AND DUTIES.

      3.1 OFFICER  POSITIONS.  Except as may  otherwise  be agreed upon  between
Company  and  Employee,  Employee  shall  perform  such  duties  and  have  such
responsibilities  as Executive Vice President,  Local  Services,  and such other
duties  and   responsibilities   consistent   with  the  foregoing   duties  and
responsibilities  as may be reasonably assigned or delegated to him from time to
time by Company's Chief  Executive  Officer or Company's Board of Directors (the
"Board"),  including,  without  limitation,  service as an employee,  officer or
director of affiliates (as that term is defined in Rule 405 under the Securities
Act of 1933,  as amended (the "Act"))  (hereinafter,  "Affiliates")  of Company,
without  additional  compensation.  References  in this  Agreement to Employee's
employment  with  Company  shall be deemed to refer to  employment  with Company
and/or, as the case may be, an Affiliate,  as the context  requires.  Other than
travel   in  the   ordinary   course  of   business,   Employee's   duties   and
responsibilities  shall be  undertaken  primarily at the current  offices of the
Company's wholly-owned subsidiary,  Access One Communications Corp., or within a
fifty (50) mile  radius of such  current  offices.  Employee  shall  perform his
duties  and  responsibilities  to the  best  of  his  abilities  hereunder  in a
diligent,  businesslike  manner.  Employee shall devote substantially all of his
working  time and efforts to the  business  and  affairs of  Company;  provided,
however, that nothing in this Agreement shall

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preclude  Employee  from (a) engaging in  charitable  activities  and  community
affairs,  and (b) managing his personal  investments and affairs (subject to the
limitations in Section 10 hereof).

      4. COMPENSATION AND RELATED MATTERS.

      4.1 BASE  SALARY.  During the Term,  Company  shall pay to Employee a base
salary  ("Base  Salary")  at the  rate of Two  Hundred  Fifty  Thousand  Dollars
($250,000)  per year,  which Base Salary shall be paid to Employee in accordance
with Company's usual and customary payroll practices.

      4.2  BENEFIT  PLANS  AND  ARRANGEMENTS.  Employee  shall  be  entitled  to
participate in and to receive  benefits under Company's  employee  benefit plans
and  arrangements  (including,  but not  limited  to,  bonus  plans) as are made
available to the Company's  senior  executive  officers  during the Term,  which
employee  benefit plans and arrangements may be altered from time to time at the
discretion of the Board (the "Benefits").  Employee acknowledges and agrees that
bonuses,  annual or otherwise,  are performance based and discretionary with the
Chairman and a committee of the Board of Directors.

      4.3  PERQUISITES.  During the Term,  Employee shall be entitled to receive
fringe benefits as are made available to Company's senior executive officers.

      4.4  EXPENSES.   Company  shall  promptly   reimburse   Employee  for  all
out-of-pocket  expenses related to Company's  business that are actually paid or
incurred by him in the performance of his services under this Agreement and that
are incurred,  reported and documented in accordance with Company's policies. In
addition,  during the Term, Company will provide Employee with an automobile, as
Company shall determine, and Company shall keep such automobile fully insured in
accordance with Company's practices for similarly situated employees.  4.5 Stock
Options.

      (a) GRANT OF OPTIONS.  Effective  on the date  hereof,  Employee  shall be
granted an option (the "Option") to purchase One Million Three Hundred  Thousand
(1,300,000)  shares of Common Stock in accordance with a stock option  agreement
to be mutually  agreed to, and  executed by,  Company and Employee  prior to the
Commencement  Date, which stock option  agreement shall be in substantially  the
form  thereof  attached  hereto as Exhibit A. The Option  shall have an exercise
price equal to $13.69 per share,  which is equal to the fair market value of the
Common Stock on the date hereof,  shall expire on the tenth  anniversary  of the
date  hereof  and shall  vest and become  exercisable,  subject  to  accelerated
vesting  in the event of a Change in  Control  (defined  as  provided  below) of
Company in installments,  as follows: (i) options with respect to 433,333 shares
of Common Stock shall vest and become  exercisable  on the first  anniversary of
the date hereof,  (ii)  options  with respect to 433,333  shares of Common Stock
shall vest and become  exercisable on the second  anniversary of the date hereof
and (iii) options with respect to 433,334  shares of Common Stock shall vest and
become  exercisable on the third anniversary of the date hereof. In the event of
a Change in Control of Company,  the Option  shall vest  immediately  and become
exercisable as to all shares then subject thereto that are not then

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vested and  exercisable.  For  purposes of this  Agreement,  "Change in Control"
shall be deemed to have occurred if:

      (i)   any Person  (as  defined in  Section  3(a)(9)  under the  Securities
            Exchange Act of 1934, as amended (the "Exchange  Act")),  other than
            the Company,  becomes the Beneficial Owner (as defined in Rule 13d-3
            under the Exchange Act;  provided,  that a Person shall be deemed to
            be the  Beneficial  Owner of all shares that any such Person has the
            right to acquire  pursuant to any agreement or  arrangement  or upon
            exercise  of  conversion  rights,  warrants,  options or  otherwise,
            without regard to the 60 day period referred to in Rule 1 3d-3 under
            the Exchange  Act),  directly or  indirectly,  of  securities of the
            Company  or  any   Significant   Subsidiary   (as   defined   below)
            representing  50%  or  more  of the  combined  voting  power  of the
            Company's,   or  such  subsidiary's,   as  the  case  may  be,  then
            outstanding securities;

      (ii)  during any period of two years,  individuals who at the beginning of
            such period  constitute the Board and any new director (other than a
            director  designated  by a person who has entered  into an agreement
            with the Company to effect a  transaction  described in clauses (i),
            (iii),  or (iv) of this Section 2(a)) whose election by the Board or
            nomination for election by stockholders was approved by a vote of at
            least  two-thirds  (2/3) of the  directors  then still in office who
            either were  directors at the  beginning  of the two-year  period or
            whose   election  or  nomination  for  election  was  previously  so
            approved, but excluding for this purpose any such new director whose
            initial  assumption of office occurs as a result of either an actual
            or  threatened  election  contest  or  other  actual  or  threatened
            solicitation   of  proxies  or  consents  by  or  on  behalf  of  an
            individual,  corporation,  partnership,  group, association or other
            entity other than the Board,  cease for any reason to  constitute at
            least  a  majority  of the  Board  of  either  or the  Company  or a
            Significant Subsidiary;

      (iii) the  consummation of a merger or consolidation of the Company or any
            subsidiary  of the  Company  owning  directly or  indirectly  all or
            substantially  all of the  consolidated  assets  of the  Company ( a
            "Significant Subsidiary") with any other entity, other than a merger
            or consolidation  which would result in the voting securities of the
            Company or a Significant  Subsidiary  outstanding  immediately prior
            thereto  continuing  to represent  more than fifty percent (5 0%) of
            the  combined  voting power of the  surviving  or  resulting  entity
            outstanding immediately after such merger or consolidation;

      (iv)  the  shareholders of the Company approve a plan or agreement for the
            sale  or   disposition  of  fifty  percent  (50%)  or  more  of  the

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            consolidated  assets of the  Company in which  case the Board  shall
            determine  the  effective  date of the Change of  Control  resulting
            therefrom;

      (v)   any  other  event  occurs  which  the  Board   determines,   in  its
            discretion,  would materially alter, the structure of the Company or
            its ownership; or

      (vi)  a person  other  than  Gabriel  Battista  is elected by the Board of
            Directors to serve as the Company's principal executive officer.

      (b)  REGISTRATION  STATEMENT.  Company shall file with the  Securities and
Exchange Commission and any applicable state securities regulatory authorities a
Registration Statement on Form S-8 (or if unavailable,  a registration statement
on Form S-3) to register the shares  issuable  upon exercise of the Option under
the Act and any  applicable  state  securities  or  "Blue  Sky"  laws as soon as
practicable after the date hereof.  Notwithstanding the foregoing, Company shall
be  entitled  to  postpone  for a  reasonable  period of time the  filing or the
effectiveness  of such  registration  statement if the Board shall  determine in
good faith that such filing or effectiveness would be materially  detrimental to
the  Company's  business  interests.

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

      5.1 DEATH.  The Term of Employee's  employment  hereunder  shall terminate
upon his death.

      5.2 DISABILITY. If Employee becomes physically or mentally disabled during
the term  hereof  so that he is  unable  to  perform  services  required  of him
pursuant to this Agreement for an aggregate of six (6) months in any twelve (12)
month period (a `Disability"),  Company, at its option, may terminate Employee's
employment hereunder.

      5.3  CAUSE.  Upon  written  notice,   Company  may  terminate   Employee's
employment  hereunder  for  Cause  (as  defined  below).  For  purposes  of this
Agreement,  Company  shall  have  "Cause"  to  terminate  Employee's  employment
hereunder  upon (a) a material  breach by Employee of any material  provision of
this  Agreement  if  Employee  fails to cure such  breach  in the 30 day  period
following  written  notice  specifying  in  reasonable  detail the nature of the
breach, (b) willful  misconduct by Employee in connection with  misappropriating
any funds or property of Company,  (c) attempting to obtain any personal  profit
from any  transaction  in which  Employee has an interest that is adverse to the
interests of Company  without prior written  disclosure  thereof to the Board or
(d) Employee's  gross neglect in the  performance  of the duties  required to be
performed by Employee  under this  Agreement if Employee fails to eliminate such
neglect in the 30 day period following  written notice  specifying in reasonable
detail the nature of the gross neglect.

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      5.4 BY EMPLOYEE. Employee may terminate his employment hereunder:

      (a) Upon sixty (60) days' prior written notice to Company,  provided that,
upon the giving of such notice by  Employee,  Company may  establish  an earlier
date for such termination under this Section 5.4 (a).

      (b) For Good  Reason (as  defined  below)  immediately  and with notice to
Company.  "Good Reason" for  termination by Employee  shall include,  but is not
limited to, the following:

      (i)   Material breach of any provision of this Agreement by Company, which
            breach shall not have been cured by Company  within thirty (30) days
            of receipt of written notice of said material breach;

      (ii)  Failure by Company to maintain  Employee in a position  commensurate
            with that referred to in Section 3 of this Agreement; or

      (iii) The  assignment  to  Employee  of  any  duties   inconsistent   with
            Employee's  position,   authority,  duties  or  responsibilities  as
            contemplated by Section 3 hereof or any other action by Company that
            results  in a  diminution  of such  position,  authority,  duties or
            responsibilities.

      5.5 WITHOUT CAUSE.  Company may otherwise terminate the Term of Employee's
employment at any time upon written notice to Employee.

      6. COMPENSATION IN THE EVENT OF TERMINATION.  In the event that Employee's
employment hereunder terminates prior to the end of the Term, Company shall make
payments to Employee as set forth below:

      6.1 BY EMPLOYEE FOR GOOD REASON;  BY COMPANY  WITHOUT CAUSE.  In the event
that Employee's  employment  hereunder is terminated by Company without Cause or
by  Employee  for Good Reason  after the  closing of the Merger (as  hereinafter
defined), then the Company shall (a) pay to Employee all amounts due to Employee
pursuant  to  any  bonus  that  was  due to  Employee  as of the  date  of  such
termination,  pursuant to the terms of such bonus (a "Due Bonus"),  (b) continue
to pay to Employee  the Base  Salary and  Benefits  to which  Employee  would be
entitled  hereunder  in the  manner  provided  for herein for the period of time
ending on the earlier of the date when the Term would  otherwise have expired in
accordance with Section 2 hereof and the second  anniversary of the date of such
termination,  (c) reimburse  Employee for expenses that may have been  incurred,
but  which  have not been  paid as of the date of  termination,  subject  to the
requirements  of Section  4.4 hereof and (d) one hundred  percent  (100%) of the
outstanding  stock  options  granted to the  Employee  that are  unvested  shall
immediately vest and become exercisable.

<PAGE>

      6.2 BY COMPANY FOR CAUSE;  BY EMPLOYEE  WITHOUT GOOD REASON.  In the event
that Company shall terminate Employee's  employment hereunder for Cause pursuant
to Section 5.3 hereof or  Employee  shall  terminate  his  employment  hereunder
without Good Reason, all compensation and Benefits, as specified in Section 4 of
this  Agreement,  theretofore  payable or provided to Employee shall cease to be
payable or  provided,  except for any Due Bonus and any  Benefits  that may have
been due and payable  but that have not been paid as of the date of  termination
and  reimbursement  of expenses that may have been incurred,  but which have not
been paid as of the date of termination,  subject to the requirements of Section
4.4 hereof.

      6.3  DEATH.  In the event of  Employee's  death  after the  closing of the
Merger,  Company  shall  not be  obligated  to pay  Employee  or his  estate  or
beneficiaries any compensation except for (a) any Due Bonus or any Benefits that
may have been earned and are due and payable as of the date of death,  but which
have not been paid as of such date, (b)  reimbursement of expenses that may have
been incurred,  but which have not been paid as of the date of death, subject to
the  requirements of Section 4.4 hereof,  and (c) all outstanding  stock options
granted  to  Employee  that are  unvested  shall  immediately  vest  and  become
exercisable and Employee's  estate or  beneficiaries,  as the case may be, shall
have  the  right  to  exercise  any of such  stock  options  during  the  period
commencing on the date of death and ending on the second anniversary of the date
of such  termination  or for the remainder of the period set forth in the option
agreement applicable to the option in question (the "Exercise Period"), if less.
In the event of Employee's death prior to the closing of the Merger,  Employee's
estate or beneficiaries shall be entitled only to the amount due under (b) above
and no options shall vest.

      6.4 DISABILITY. In the event of Employee's Disability after the closing of
the Merger,  Company  shall not be  obligated  to pay  Employee or his estate or
beneficiaries  any  additional  compensation  except for:  (a) any Due Bonus and
Benefits  that may have been  earned  and are due and  payable as of the date of
such  Disability,  but  which  have  not  been  paid  as of such  date,  and (b)
reimbursement  for expenses  that may have been incurred but which have not been
paid as of the date of Disability,  subject to the  requirements  of Section 4.4
hereof.  Upon  termination  due  to  Disability,  fifty  percent  (50%)  of  the
outstanding   stock  options   granted  to  Employee  that  are  unvested  shall
immediately  vest  and  become   exercisable  and  Employee  or  his  estate  or
beneficiaries,  as the case may be, shall have the right to exercise any of such
stock options during the period  commencing on the date of Disability and ending
on the second  anniversary of the date of the Disability or for the remainder of
the Exercise Period, if less. In the event of Employee's Disability prior to the
closing of the Merger,  Company  shall not be  obligated  to pay Employee or his
estate or beneficiaries  any amount due under this Section 6.4 except (b) hereof
and no options shall vest.

      6.5 NO MITIGATION.  In the event of any  termination  of employment  under
Section  5  hereof,  Employee  shall  be  under  no  obligation  to  seek  other
employment;  provided;  however,  that to the extent that  Employee  does obtain
other  employment   subsequent  to  the  termination  of  Employee's  employment
hereunder,  the obligations of Company to pay Benefits under this Agreement from
and after the date of commencement of such other employment shall terminate.

      7. UNAUTHORIZED DISCLOSURE.  Employee shall not, without the prior written
consent  of  Company,  disclose  or use in any  way,  either  during  Employee's
employment with Company or thereafter,  except as required in the course of such
employment,  any confidential  business or

<PAGE>

technical information or trade secret acquired in the course of such employment,
whether or not conceived of or prepared by him,  which is related to any service
or business of Company or any Affiliate;  provided,  however, that the foregoing
shall not apply to (a) information  that is not unique to the Company or that is
generally  known  to the  industry  or the  public  other  than as a  result  of
Employee's breach of this covenant, (b) information known to Employee other than
from  information  provided  by  Company or (c)  information  that  Employee  is
required  to  disclose  to,  or by,  any  governmental  or  judicial  authority;
provided,  however,  if Employee should be required in the course of judicial or
other governmental proceedings to disclose any information,  Employee shall give
Company  prompt  written  notice thereof so that Company may seek an appropriate
protective  order and/or waive in writing  compliance  with the  confidentiality
provisions of this  Agreement.  If, in the absence of a protective  order or the
receipt of a waiver by Company,  Employee is compelled  to disclose  information
to, or pursuant to the requirements of, a court or other governmental authority,
Employee  may  disclose  such  information  to such court or other  governmental
authority without liability to any other party hereto.

      8. TANGIBLE ITEMS. All files, records,  documents,  manuals, books, forms,
reports, memoranda, studies, data, calculations,  recordings and correspondence,
in whatever form they may exist, and all copies,  abstracts and summaries of the
foregoing  and all  physical  items  related to the  business of Company and its
affiliates, other than merely personal items, whether of a public nature or not,
and whether  prepared by  Employee  or not,  and which are  received by Employee
from,  or on behalf of Company or an Affiliate  in the course of his  employment
hereunder  are and shall remain the  exclusive  property of Company and any such
Affiliate  and shall not be removed  from the  premises  of the  Company or such
Affiliate,  as the case may be,  except as required in the course of  Employee's
employment  hereunder,  without the prior written consent of the Company's Chief
Executive  Officer or the  Board,  and the same shall be  promptly  returned  by
Employee upon the  termination of Employee's  employment  with Company or at any
time prior thereto upon the request of the Company's Chief Executive  Officer or
the Board.

      9.   INVENTIONS  AND  PATENTS.   Employee   agrees  that  all  inventions,
innovations,  improvements,  developments, methods, designs, analyses, drawings,
reports, and all similar or related information that relates to Company's actual
or anticipated business, research and development or existing or future products
or services and that are conceived,  developed or made by or at the direction of
Employee  while  Employee  is  employed  by  Company  will be owned by  Company.
Employee  also  agrees to  promptly  perform,  at the  expense of  Company,  all
reasonable  actions  (whether  before,  during or after the Term)  necessary  to
establish and confirm such ownership.

      10.  CERTAIN  RESTRICTIVE  COVENANTS.  During  the Term,  and for a period
ending  eighteen  (18) months  after the earlier of  Employee's  termination  of
employment  hereunder and the end of the Term,  Employee agrees that he will not
act, either directly or indirectly, as a partner, officer, director, substantial
stockholder  (an  equity  interest  of 5% or more) or  employee  of,  or  render
advisory or other services for, or in connection with, or become  interested in,
or make any substantial financial investment in any firm, corporation,  business
entity or business  enterprise that competes with the business of Company (each,
a "Competitor"),  except with the express written consent of the Board. Employee
further  agrees that in the event of the  termination  of his  employment  under
Section 5 hereof,  for a period of twelve (12) months  thereafter,  he will not,
directly or indirectly,  employ, offer to employ, or actively interfere with

<PAGE>

the relationship of Company or an Affiliate with, any employee of Company or any
employee of any  Affiliate.  Notwithstanding  anything  to the  contrary in this
Agreement,  in the event that Employee's employment is terminated for any reason
prior to the closing of the Merger described in the Agreement and Plan of Merger
of even date herewith by and among Company, Aladdin Acquisition Corp. and Access
One  Communications  Corp.  ("Access  One")  (the  "Merger"),  Employee  may  be
affiliated  in any position (as  employee,  officer,  director or  otherwise) of
Access One without violating the provisions of this Section 10.

      11. EMPLOYEE  REPRESENTATIONS  AND COVENANTS.  Employee hereby represents,
warrants  and  covenants  to  Company  that  (a)  the  execution,  delivery  and
performance  of this  Agreement by Employee does not and will not conflict with,
breach,  violate  or cause a default  under any  employment,  noncompetition  or
confidentiality contract or agreement,  instrument, order, judgment or decree to
which Employee is a party or by which he is bound;  (b) Employee,  in performing
this Agreement and the duties of Employee's  employment  with Company,  will not
disclose or utilize any trade secrets of a former employer,  unless Employee has
first obtained express written  authorization  from any such former employer for
their  disclosure  or use; (c)  Employee has not brought,  and will not bring to
Company,  any documents,  records,  information  or other  materials of a former
employer that are not  generally  available to the public,  unless  Employee has
first obtained express written  authorization  from any such former employer for
their  possession  and use;  and (d) upon the  execution  and  delivery  of this
Agreement by Company,  this Agreement shall be the valid and binding  obligation
of Employee,  enforceable  in accordance  with its terms,  subject to applicable
bankruptcy,  insolvency  and  similar  laws  affecting  the rights of  creditors
generally.

      12. COMPANY  REPRESENTATIONS.  Company represents and warrants (a) that it
is  duly  authorized  and  empowered  to  enter  into  this  Agreement,  (b) the
execution,  delivery and  performance  of this Agreement by Company does not and
will not conflict with,  breach,  violate or cause a default under any contract,
agreement,  instrument, order, judgment or decree to which Company is a party or
by which it is bound,  and (c) upon the execution and delivery of this Agreement
by  Employee,  this  Agreement  shall be the valid  and  binding  obligation  of
Company,  enforceable  in  accordance  with its  terms,  subject  to  applicable
bankruptcy,  insolvency  and  similar  laws  affecting  the rights of  creditors
generally.

      13. REMEDIES.  Employee  acknowledges that the restrictions and agreements
contained  in this  Agreement  are  reasonable  and  necessary  to  protect  the
legitimate  interests of Company,  and that any violation of this Agreement will
cause  substantial  and  irreparable   injury  to  Company  that  would  not  be
quantifiable and for which no adequate remedy would exist at law and agrees that
injunctive  relief,  in  addition  to all  other  remedies,  shall be  available
therefor. therefor.

      14. INDEMNIFICATION. Prior to the Commencement Date, Company and Employee
shall enter into an indemnification  agreement in a form mutually  acceptable to
Company and Employee and  containing  terms no less  favorable to Employee  than
those contained in any  indemnification or similar agreement currently in effect
between Company and any of its officers.

<PAGE>

      15. EFFECT OF AGREEMENT ON OTHER BENEFITS. Except as specifically provided
in this  Agreement,  the existence of this Agreement shall not be interpreted to
preclude,  prohibit or restrict  Employee's  participation in any other employee
benefit  plan or other plans or  programs  provided to  officers,  directors  or
employees of Company.

      16. RIGHTS OF EMPLOYEE'S  ESTATE. If Employee dies prior to the payment of
all amounts due and owing to him under the terms of this Agreement, such amounts
shall be paid to such  beneficiary  or  beneficiaries  as Employee may have last
designated  in writing  filed with the  Secretary of Company or, if Employee has
made  no  beneficiary   designation,   to  Employee's  estate.  Such  designated
beneficiary  or the  executor  of  Employee's  estate,  as the case may be,  may
exercise all of Employee's  rights hereunder.  If any beneficiary  designated by
Employee shall predecease Employee, the designation of such beneficiary shall be
deemed  revoked,  and  any  amounts  which  would  have  been  payable  to  such
beneficiary shall be paid to Employee's  estate.  If any designated  beneficiary
survives  Employee,  but dies before payment of all amounts due hereunder,  such
payments  shall,  unless  Employee  has  designated  otherwise,  be made to such
beneficiary's estate. In the event of Employee's death or judicial determination
of his  incompetence,  reference in this  Agreement to Employee shall be deemed,
where  appropriate,  to  refer  to  his  beneficiary,   estate  or  other  legal
representative.

      17. SEVERABILITY. It is the intent and understanding of the parties hereto
that  if,  in any  action  before  any  court  or other  tribunal  of  competent
jurisdiction legally empowered to enforce this Agreement, any term, restriction,
covenant,  or  promise  is  held  to  be  unenforceable  as a  result  of  being
unreasonable or for any other reason, then such term, restriction,  covenant, or
promise shall not thereby be terminated,  but, that it shall be deemed  modified
to the extent  necessary to make it  enforceable by such court or other tribunal
and,  if it cannot be so  modified,  that it shall be deemed  amended  to delete
therefrom such provision or portion  adjudicated to be invalid or unenforceable,
and this Agreement shall be deemed to be in full force and effect as so modified
and such modification or amendment in any event shall apply only with respect to
the operation of this  Agreement in the  particular  jurisdiction  in which such
adjudication is made.

      18. NOTICES.  Any notices or demands given in connection herewith shall be
in writing and deemed given when (a) personally delivered, (b) sent by facsimile
transmission to a number provided in writing by the addressee and a confirmation
of the  transmission  is  received by the sender or (c) two (2) days after being
deposited  for delivery  with a recognized  overnight  courier,  such as Federal
Express,  and addressed or sent, as the case may be, to the address or facsimile
number set forth  below or to such other  address  or  facsimile  number as such
party may in writing designate:

         If to Employee:            Kevin Griffo
                                    3837 Norbury Court
                                    Orlando, FL  32835
                                    Fax No.:  (407) 578-5004

<PAGE>

         With a copy to:            Blank Rome Tenzer Greenblatt LLP
                                    405 Lexington Avenue
                                    New York, NY  10174
                                    Attn:   Michael S. Mullman, Esq.
                                    Fax No.:  (212) 885-5001

         If to Company:             Talk.com, Inc.
                                    6805 Route 202
                                    New Hope, Pennsylvania  18938
                                    Attn: President
                                    Fax No.:  (215) 862-1515

Either  party may change its address for notices by written  notice to the other
party in  accordance  with this  Section 18.

      19.  WAIVER.  No provision of this  Agreement  may be modified,  waived or
discharged  unless such  waiver,  modification  or  discharge  is agreed to in a
writing  executed by Employee and Company.  No waiver by any party hereto at any
time of any breach by another party hereto of, or compliance with, any condition
or  provision  of this  Agreement  to be  performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same or
at any prior or subsequent time.

      20.  GOVERNING  LAW.  The  validity,   interpretation,   construction  and
performance of this Agreement shall be governed by the laws of New York relating
to contracts made and to be performed entirely therein.

      21. HEADINGS.  The headings in this Agreement are inserted for convenience
only and shall have no significance in the interpretation of this Agreement.

      22.  SUCCESSORS.  Company may not assign any of its rights or  obligations
under this  Agreement  hereunder.  Employee  may assign his rights,  but not his
obligations, hereunder and all of Employee's rights hereunder shall inure to the
benefit  of his  estate,  personal  representatives,  designees  or other  legal
representatives.  All of the  rights of  Company  hereunder  shall  inure to the
benefit of, and be enforceable by the successors of Company. Any person, firm or
corporation  succeeding  to  the  business  of  Company  by  merger,   purchase,
consolidation  or otherwise  shall be deemed to have assumed the  obligations of
Company hereunder;  provided, however, that Company shall,  notwithstanding such
assumption  by a successor,  remain  primarily  liable and  responsible  for the
fulfillment of its obligations under this Agreement.

      23.  COUNTERPARTS.   This  Agreement  may  be  executed  in  one  or  more
counterparts,  each of which shall be deemed to be an original  but all of which
together will constitute one and the same instrument.

      24.  CERTAIN  WORDS.  As used  in  this  Agreement,  the  words  "herein,"
"hereunder,"  "hereof"  and  similar  words  shall  be  deemed  to refer to this
Agreement in its entirety, and not to any particular provision of this Agreement
unless the context clearly requires otherwise.

<PAGE>

         IN  WITNESS  WHEREOF,  each of the  parties  hereto has  executed  this
Agreement as of the day and year first written above.

Talk.com, Inc.

By:        /s/ Aloysius T. Lawn IV
    --------------------------------------
     Name:  Aloysius T. Lawn  IV
     Title:

        /s/ Kevin Griffo
------------------------------------------
         Kevin GriffoEXHIBIT 10.31

                   TALK.COM INC. 2000 LONG TERM INCENTIVE PLAN

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

          1.1. "Agreement" means a written agreement implementing an Award.

          1.2.  "Award"  means a grant  of an  Option  or  Right  or an award of
     Restricted Stock or Incentive Shares.

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

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

          1.5.  "Committee"  means a  committee  or  subcommittee  of the  Board
     appointed by the Board to administer this Plan and programs hereunder.  The
     Committee may, in its discretion,  appoint a subcommittee to administer the
     Plan with respect to specific Awards hereunder.

          1.6.  "Common Stock" means the common stock, par value $.01 per share,
     of the Company.

          1.7. "Company" means Talk.com Inc.

          1.8. "Date of Exercise"  means the date on which the Company  receives
     notice of the exercise of an Option in accordance with the terms of Section
     8.1.

          1.9.  "Date of  Grant"  means  the date on which an Option or Right is
     granted or  Restricted  Stock or  Incentive  Shares are awarded  under this
     Plan.

          1.10.  "Director"  means a member  of the  Board of  Directors  of the
     Company or any Subsidiary.

          1.11. "Employee" means any person determined by the Committee to be an
     employee of the Company or a  Subsidiary,  including an Employee  Director,
     consultant  or any  person  who has  been  hired to be an  employee  of the
     Company or a Subsidiary.

          1.12. "Employee Director" means a Director who is also an Employee.

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

          1.14. "Fair Market Value" means an amount equal to the last sale price
     for a Share on the Nasdaq National Market as reported by such source as the
     Committee may select,  or, if such price quotations of the Common Stock are
     not then  reported,  then the fair market value of a Share as

<PAGE>

determined  by the  Committee  pursuant to a reasonable  method  adopted in good
faith for such purpose.

          1.15. "Grantee" means an Employee or Director to whom Restricted Stock
     has been  awarded  pursuant  to  Section 9 or  Incentive  Shares  have been
     awarded pursuant to Section 10.

          1.16.  "Incentive  Shares" means an award providing for the contingent
     grant of Shares pursuant to the provisions of Section 10.

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

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

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

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

          1.21.  "Option Price" means the price per Share at which an Option may
     be exercised.  Subject to the terms of the Plan,  the Option Price shall be
     determined by the Committee;  provided, however, that in no event shall the
     Option Price be less than the greater of 25% of the Fair Market Value as of
     the Date of Grant or the par value of the Common Stock.

          1.22.  "Optionee" means a Director,  Employee, or Employee Director to
     whom an Option or Right has been granted.

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

          1.24. "Plan" means the Talk.com Inc. 2000 Long Term Incentive Plan, as
     amended from time to time.

                                       2
<PAGE>

          1.25.  "Related  Option" means the Option in connection with which, or
     by amendment to which, a specified Right is granted.

          1.26.  "Related Right" means the Right granted in connection  with, or
     by amendment to, a specified Option.

          1.27.  "Restricted Stock" means Shares awarded under the Plan pursuant
     to the provisions of Section 9.

          1.28.  "Right" means a stock appreciation right granted under the Plan
     in accordance with the terms of Section 7.

          1.29.  "Right  Period"  means the period  during  which a Right may be
     exercised.

          1.30. "Share" means a share of Common Stock.

          1.31.  "Subsidiary"  means a  corporation  at least  50% of the  total
     combined  voting  power  of all  classes  of stock of which is owned by the
     Company, either directly or through one or more other Subsidiaries.

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

     2.  Purpose.   This  Plan  is  intended  to  assist  the  Company  and  its
Subsidiaries  in  attracting  and  retaining  Directors,  Employees and Employee
Directors  of  outstanding  ability and to promote the  identification  of their
interests with those of the stockholders of the Company.

     3. Administration.  The Committee shall administer this Plan and shall have
plenary authority, in its discretion, to award Options, Rights, Restricted Stock
and Incentive Shares to Directors,  Employees and Employee Directors, subject to
the  provisions  of this Plan.  The Committee  shall have plenary  authority and
discretion,  subject to the provisions of this Plan, to determine the Directors,
Employees  or Employee  Directors to whom Options or Rights shall be granted and
to whom Restricted Stock or Incentive Shares shall be awarded,  the terms (which
terms need not be identical) of all Awards to Directors,  Employees and Employee
Directors, including without limitation the Option Price of Options, the time or
times at which Awards are made, the number of Shares covered by Awards,  whether
an Option shall be an Incentive Stock Option or a Nonstatutory Stock Option, any
exceptions to  non-transferability,  any Performance Goals applicable to Awards,
any provisions relating to vesting, any circumstances in which the Options would
terminate,  the period during which Options and Rights may be exercised, and the
period during which Restricted Stock shall be subject to restrictions. In making
these  determinations,  the  Committee  may take into  account the nature of the
services rendered or to be rendered by the Award  recipients,  their present and
potential contributions to the success of the Company and its

                                       3
<PAGE>

Subsidiaries,  and such other factors as the Committee in its  discretion  shall
deem relevant.  Subject to the provisions of this Plan, the Committee shall have
plenary authority to interpret this Plan, prescribe, amend and rescind rules and
regulations relating to it, and make all other  determinations  deemed necessary
or advisable for the  administration  of this Plan.  The  determinations  of the
Committee  on the  matters  referred  to in this  Section 3 shall be binding and
final.

     4. Eligibility.  Options, Rights, Restricted Stock and Incentive Shares may
be granted or awarded only to Employees and Directors,  provided,  however, that
Directors,  other than Employee  Directors,  may not be granted  Incentive Stock
Options.  A  Director,  Employee or Employee  Director  who has been  granted an
Option or Right or awarded  Restricted  Stock or Incentive Shares may be granted
additional  Options and Rights or awarded  additional shares of Restricted Stock
or Incentive Shares.

     5. Stock Subject to Plan.

           5.1. Subject to adjustment as provided in Section 11, (a) the maximum
number of Shares that may be issued under this Plan is 5,000,000 Shares, and (b)
the  maximum  number of Shares  with  respect to which an  Employee  may receive
Awards under this Plan during its term is 750,000.

           5.2.  If an Option or Right  expires  or  terminates  for any  reason
(other than termination by virtue of the exercise of a Related Option or Related
Right,  as the case may be) without  having been fully  exercised,  if Shares of
Restricted  Stock are forfeited or if Shares covered by an Incentive Share Award
are not issued or are forfeited, the unissued or forfeited Shares which had been
subject to the Award shall become available for the grant of additional Awards.

           5.3.  Upon  exercise of a Right  (regardless  of whether the Right is
settled in cash or Shares), the number of Shares with respect to which the Right
is exercised  shall be charged  against the number of Shares  issuable under the
Plan and shall not become available for the grant of other Awards.

      6.   Options.

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

           6.2.  The Option  Period shall be  determined  by the  Committee  and
specifically set forth in the Agreement; provided, however, that an Option shall
not be exercisable after ten years

                                       4
<PAGE>

(five years in the case of an Incentive  Stock Option  granted to a  Ten-Percent
Stockholder) from its Date of Grant.

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

      7.   Rights.

           7.1. Rights granted under the Plan shall be evidenced by an Agreement
     specifying the terms and conditions of the grant.

           7.2.  A Right may be granted under the Plan:

               (a) in connection  with, and at the same time as, the grant of an
          Option under the Plan;

               (b) by amendment of an outstanding Option granted under the Plan;
          or

               (c) independently of any Option granted under the Plan.

           7.3.  A Right granted under  Section  7.2(a) or  Section   7.2(b)  of
     this Plan is a Related Right.  A  Related  Right  may, in  the  Board's  or
     Committee's  discretion,   apply   to  all  or any  portion  of the  Shares
     subject  to the Related Option.

           7.4.  A Right may be  exercised  in whole or in part as  provided  in
     the  applicable  Agreement,  and,  subject  to  the terms of the Agreement,
     entitles  an  Optionee  to  receive,  without  payment to the Company  (but
     subject to required tax withholding),  either cash or that number of Shares
     (equal to the highest whole number of Shares), or a combination thereof, in
     an  amount  or  having a fair  market  value  determined  as of the Date of
     Exercise  not to exceed the number of Shares  subject to the portion of the
     Right exercised multiplied by an amount equal to the excess of (i) the Fair
     Market  Value on the Date of Exercise of the Right over (ii) either (A) the
     Fair Market  Value on the Date of Grant of the Right if it is not a Related
     Right,  or (B) the Option  Price as provided  in the Related  Option if the
     Right is a Related Right.

                                       5
<PAGE>

           7.5.  The Right  Period  shall be  determined  by the  Committee  and
     specifically  set  forth  in  the  Agreement,   subject  to  the  following
     conditions:

               (a) a Right  will  expire no later  than the  earlier  of (1) ten
          years from the Date of Grant,  or (2) in the case of a Related  Right,
          the expiration of the Related Option;

               (b) a Right may be  exercised  only when the Fair Market Value on
          the Date of Exercise  exceeds  either (1) the Fair Market Value on the
          Date of Grant of the  Right if it is not a Related  Right,  or (2) the
          Option  Price of the Related  Option if the Right is a Related  Right;
          and

               (c) a Right that is a Related Right to an Incentive  Stock Option
          may be  exercised  only when and to the extent the  Related  Option is
          exercisable.

           7.6.  The  exercise,  in  whole  or in part, of a Related Right shall
     cause a reduction  in the number of Shares  subject to the  Related  Option
     equal to the number of Shares with  respect to which the  Related  Right is
     exercised.  Similarly,  the  exercise,  in whole or in part,  of a  Related
     Option  shall  cause a  reduction  in the  number of Shares  subject to the
     Related  Right  equal to the  number of Shares  with  respect  to which the
     Related Option is exercised.

      8.   Exercise of Options and Rights.

           8.1.  An Option or Right may, subject to the terms of the  applicable
     Agreement  under which it was granted,  be exercised in whole or in part by
     the delivery to the Company of written notice of the exercise, in such form
     as the Committee may prescribe,  accompanied,  in the case of an Option, by
     (a) a full  payment  for the  Shares  with  respect  to which the Option is
     exercised or (b) irrevocable  instructions to a broker to deliver  promptly
     to the  Company  cash equal to the  exercise  price of the  option.  To the
     extent provided in the applicable Option Agreement,  payment may be made in
     whole or in part by delivery  (including  constructive  delivery) of Shares
     valued at Fair  Market  Value on the Date of  Exercise  or by delivery of a
     promissory note as provided in Section 8.2 hereof.

           8.2.  To  the  extent  provided in  an  Agreement  and  permitted  by
     applicable  law, the Committee may accept as partial  payment of the Option
     Price a  promissory  note  executed by the Optionee  evidencing  his or her
     obligation  to make  future cash  payment  thereof.  Promissory  notes made
     pursuant  to this  Section  8.2 shall be payable  upon such terms as may be
     determined  by the  Committee,  shall be  secured by a pledge of the Shares
     received upon exercise of the Option, or other securities the Committee may
     deem to be acceptable for such purposes,  and shall bear interest at a rate
     fixed by the Committee.

           8.3. Options and Rights made under this Plan shall be transferable by
     will,  the  laws  of  descent  and  distribution,  and as  provided  by the
     Committee in an Agreement.

                                       6
<PAGE>

      9.   Restricted Stock Awards.

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

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

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

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

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

               (c)  the  terms  and  conditions  upon  which  any   restrictions
          applicable  to  Shares  of  Restricted   Stock  shall  lapse  and  new
          certificates  free of the  foregoing  legend  shall be  issued  to the
          Grantee or his or her legal representative.

          9.3. The Committee may include in any  Agreement  awarding  Restricted
     Stock a  requirement  that,  in the  event of a  Grantee's  termination  of
     employment for any reason prior to the lapse of restrictions, all Shares of
     Restricted  Stock shall be forfeited by the Grantee to the Company  without
     payment of any consideration by the Company and neither the Grantee nor any
     successors, heirs, assigns or personal representatives of the Grantee shall
     thereafter   have  any  further   rights  or  interest  in  the  Shares  or
     certificates.

                                       7
<PAGE>

      10. Incentive Share Awards. Incentive Shares awarded under this Plan shall
be evidenced by an Agreement  specifying the terms and conditions of such Award.
Incentive  Share Awards shall provide for the issuance of Shares to a Grantee at
such times and subject to such terms and conditions as the Committee  shall deem
appropriate,  including without  limitation terms that condition the issuance of
Shares upon the achievement of Performance Goals.

      11.  Capital  Adjustments.  In the event of any change in the  outstanding
Common  Stock by  reason  of any  stock  dividend,  split-up,  recapitalization,
reclassification,  combination or exchange of shares,  merger,  consolidation or
liquidation  and the like, the Committee may, in its  discretion,  provide for a
substitution  for or adjustment in (i) the number and class of Shares subject to
outstanding Options,  Rights and Awards of Restricted Stock or Incentive Shares,
(ii) the Option  Price of Options and the base price upon which  payments  under
Rights  that are not  Related  Rights are  determined,  and (iii) the  aggregate
number and class of Shares for which  Awards  thereafter  may be made under this
Plan and to individual Award recipients.

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

      13.  Modification, Extension, Renewal, Substitution.

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

          13.2.  Anything  contained  herein  to the  contrary  notwithstanding,
     Options  and  Rights,  Restricted  Stock and  Incentive  Shares may, at the
     discretion of the Committee, be granted under this Plan in substitution for
     options to purchase shares of capital stock of another corporation which is

                                       8
<PAGE>

merged into,  consolidated with, or all or a substantial portion of the property
or stock of which is acquired  by, the Company or one of its  Subsidiaries.  The
terms and conditions of the substitute  Options,  Rights,  Restricted  Stock and
Incentive  Shares so granted may vary from the terms and conditions set forth in
this  Plan to such  extent as the  Committee  may deem  appropriate  in order to
conform,  in whole or part, to the provisions of the Awards in substitution  for
which they are granted.  Such substitute  Awards granted  hereunder shall not be
counted toward the 750,000 Share limit imposed by the second sentence of Section
5.1,  except to the extent it is determined by the Committee  that counting such
Awards is  required in order for Awards  hereunder  to be eligible to qualify as
"performance-based  compensation"  within the  meaning of Section  162(m) of the
Code.

      14.  Effectiveness  of this  Plan.  This  Plan and any  amendments  hereto
requiring stockholder approval pursuant to Section 12 are subject to approval by
vote of the stockholders of the Company at the next annual or special meeting of
stockholders  following  adoption  by the  Board.  Subject  to such  stockholder
approval, this Plan and any amendments hereto are effective on the date on which
they are  adopted  by the Board,  except as  otherwise  specified  by the Board.
Options, Rights, Restricted Stock and Incentive Shares may be granted or awarded
prior to  stockholder  approval  of this Plan or any  amendments,  but each such
Award after the effective  date of this Plan shall be subject to the approval by
the stockholders of this Plan. The date on which any Option,  Right,  Restricted
Stock or Incentive  Shares granted or awarded prior to  stockholder  approval of
this Plan shall be the Date of Grant for all  purposes as if the Option,  Right,
Restricted Stock or Incentive  Shares had not been subject to approval;  no such
Option,  Right,  Restricted  Stock or Incentive Shares may be exercised prior to
such stockholder  approval,  and any such Option shall be void ab initio if such
stockholder approval is not obtained.

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

      16. Term of this Plan.  Unless sooner  terminated by the Board pursuant to
Section 11, this Plan shall terminate on December 30, 2008, and no Awards may be
made after such date. The termination of this Plan shall not affect the validity
of any Award outstanding on the date of termination.

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

                                       9
<PAGE>

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

     18. General Provisions.

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

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

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

          18.4.  The  interests of any Director,  Employee or Employee  Director
     under this Plan are not subject to the claims of creditors  and may not, in
     any way, be  assigned,  alienated  or  encumbered  except as provided in an
     Agreement.

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

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

         18.7.   The Company shall not be required to issue any  certificate  or
     certificates  for Shares with respect to Awards under this Plan,  or record
     any person as a holder of record of such

                                       10
<PAGE>

Shares,  without obtaining,  to the complete satisfaction of the Committee,  the
approval of all regulatory bodies deemed necessary by the Committee, and without
complying to the Board's or Committee's  complete  satisfaction,  with all rules
and  regulations,  under  federal,  state or local law deemed  applicable by the
Committee.

                                       11

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