Document:

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this "Agreement") is made and entered into as
of  the  1st day of May, 2000, by and between Knowledge Foundations, Inc.,  a
Delaware corporation ("Employer"), and Robert A. Dietrich ("Employee").

                            W I T N E S S E T H:

  WHEREAS,  the officers, managers and/or directors of Employer  are  of  the
opinion that Employee has education, experience and/or expertise which is  of
value to Employer and its owners, and

  WHEREAS,  Employer  and  Employee desire  to  enter  into  this  Employment
Agreement, pursuant to which Employee shall be employed by Employer,  to  set
forth the respective rights, duties and obligations of the parties hereto.

  NOW  THEREFORE,  in  consideration of the promises and covenants  contained
herein,   and  other  good  and  valuable  consideration,  the  receipt   and
sufficiency  of which the parties hereto acknowledge, Employer  and  Employee
agree as follows:

1.    EMPLOYMENT.   Employer hereby agrees to employ  Employee  and  Employee
hereby accepts such employment, upon the terms and conditions hereinafter set
forth.

2.    TERM.   For purposes of this Agreement, "Term" shall mean the  original
term  (as  defined in Section 2.1 below) and the renewal term (as defined  in
Section 2.2 below), if applicable.

2.1   Original Term: The Term of this Agreement shall commence on May 1, 2000
and  expire on March 31, 2004, unless sooner terminated pursuant to the terms
and provisions herein stated.

2.2   Renewal  Term:   This  Agreement shall automatically  be  extended  for
additional  one  (1)  year renewal terms unless either  party  gives  written
notice to terminate this Agreement at least ninety (90) days prior to the end
of the preceding term.

3.   COMPENSATION.

3.1  Salary: Employer shall pay Employee a base annual salary of Ten Thousand
Dollars  ($10,000)  per month, payable in accordance with  Employer's  normal
policies  but in no event less often than biweekly (the "Salary").  Effective
January  1 for each successive year this Agreement is in effect, compensation
<PAGE>

shall  be  adjusted by the Board of Directors of Employer; provided, however,
that  no  adjustment shall be less than a ten percent (10%) increase  of  the
Salary.   The Board of Directors shall have the right to increase the  Salary
more often than annually at its sole discretion.

3.2   Incentive  Compensation: Employer shall also pay to Employee  incentive
compensation  in accordance with Addendum A, Employee Incentive  Compensation
Plan,  attached  hereto and made a part hereof by this reference.   Incentive
Compensation shall be paid not less frequently than annually, and prorated as
applicable.

3.3   Management  by  Objectives  (MBO)  Bonus:  Starting  May  1,  2000  and
recommencing each successive calendar year during the Term of this Agreement,
Employee shall participate in an annual MBO Bonus Program designed to  incent
the  accomplishment,  completion  and/or  delivery  of  predefined  strategic
objectives that support Employer's annual strategic business plan.  Prior  to
each  MBO  bonus  yielding  year, Employee shall  present  to  the  Board  of
Directors,  as  approved by the Chief Executive Officer, a set  of  strategic
objectives.   The  Board  of Directors shall assign a specific  economic  MBO
bonus value and payment schedule to each listed objective and present this to
Employee.   The  Employee will be paid the appropriate  MBO  bonus  based  on
performance and accomplishment of the objectives as determined appropriate by
the Board of Directors.

3.4   Stock  Purchase  Agreement: Employer and  Employee  entered  into  that
certain  Stock  Purchase Agreement dated April 6, 2000, a copy  of  which  is
attached hereto as Addendum E (the "Stock Purchase Agreement").

4.   EMPLOYEE BENEFITS.

4.1   General Benefits:  Employee shall be entitled to receive or participate
in all benefit plans and programs of Employer currently existing or hereafter
made available to executives or senior management of Employer, including  but
not  limited  to,  dental  and  medical  insurance,  including  coverage  for
dependents  of  Employee,  pension and profit sharing  plans,  401(k)  plans,
incentive  savings  plans, stock option plans, group life  insurance,  salary
continuation plans, disability coverage and other fringe benefits.
<PAGE>

4.2   Business  Expense:  Employee shall be provided  with  American  Express
and/or  Visa/Master  Card credit cards issued in the name  of  Employer,  for
purposes  of paying business expenses, including without limitation, business
travel,   entertainment,  lodging  and  similar  activities.    Additionally,
Employee shall be entitled to receive proper reimbursement for all reasonable
out-of-pocket expenses incurred directly by Employee in performing Employee's
duties  and  obligations  under  this Agreement.   Employer  shall  reimburse
Employee for such expenses on a monthly basis, upon submission by Employee of
appropriate  receipts,  vouchers  or  other  documents  in  accordance   with
Employer's policy.

4.3   Automobile Expenses: Employer shall provide Employee with an automobile
allowance  in  the  amount  of $750.00 per month,  for  payment  of  expenses
relating  to Employee's operation and use of an automobile in the  course  of
performing duties and obligations under this Agreement.

4.4   Cellular  Telephone: Employer shall provide Employee  with  a  cellular
telephone  for  use on Employer's business and Employer shall be  responsible
for  all costs and expenses incurred in connection with the operation and use
of  such  cellular telephone, including but not limited to,  monthly  service
charges  and  maintenance;  provided, however, that  Employer  shall  not  be
responsible for costs and expenses incurred for personal use of Employee.

4.5   Assistance:  Employer shall furnish Employee with an  office,  together
with  a portable computer and office equipment and such other facilities  and
services  as are deemed by the Board of Directors of Employer to be  suitable
for  his  position  and  adequate  for the  performance  of  his  duties  and
obligations under this Agreement.  Employer shall also provide Employee  with
the  necessary  communications and computer gear, and related  communications
service  cost  and  computer  supplies, to support  a  working  home  office;
provided,  however,  that this Section 4.5 shall in no way  be  construed  to
obligate  Employer  to  provide Employee with  office  furnishings  for  such
working  home  office or to reimburse Employee for home office use  unless  a
separate written agreement is entered into between Employer and Employee.

4.6   Vacation:   Employee shall be entitled during each  twelve  (12)  month
period  during  the Term of this Agreement to a vacation of three  (3)  weeks
during which time Employee's compensation will be paid in full.  Unused  days
of  vacation  will  be  compensated in accordance with Employer's  policy  as
established  by Employer from time to time.  Employee may take  the  vacation
<PAGE>

periods at any time during the year as long as Employee schedules time off as
to  not  create hardship on Employer.  In addition, Employee shall have  such
other  days  off as shall be determined by Employer and shall be entitled  to
paid sick leave and paid holidays in accordance with Employer's policy.

5.   DUTIES/SERVICES

5.1   Position:  Employee  is employed as Chief Financial  Officer  and  Vice
President  of  Operations and shall perform such services and duties  as  are
defined  in Addendum B, Job Description, attached hereto, and as are normally
associated  with  such  position, subject to the direction,  supervision  and
rules and regulations of Employer.

5.2   Place  of  Employment:  The  place of  Employee's  employment  and  the
performance of Employee's duties will be at Employer's corporate headquarters
and  at Employee's home office or at such location as agreed upon by Employer
and Employee.

5.3   Extent of Services: Employee shall at all times and to the best of  his
ability  perform  his  duties  and obligations  under  this  Agreement  in  a
reasonable  manner  consistent with the interests of Employer.   The  precise
services of the Employee may be extended or curtailed, from time to  time  at
the  discretion  of  Employer, and Employee agrees to render  such  different
and/or  additional services of a similar nature as may be assigned from  time
to time by Employer.  However, Employer shall not materially alter Employee's
title,  duties, obligations or responsibilities or transfer Employee  outside
of  the  Orange  County,  California area without  Employee's  prior  written
consent.

5.3.1     Except as otherwise agreed by Employer and Employee in writing,  it
is expressly understood and agreed that Employee's employment is fulltime and
of  a  critical nature to the success of Employer and is therefore exclusive.
Employee  may  not be employed by other entities or otherwise perform  duties
and  undertakings  on  behalf of others or for his own interest  unless  pre-
approved  by Employer's Chief Executive Officer or by the Board of Directors.
Employer acknowledges that Employee presently, or may in the future, serve on
the  Board  of Directors of other companies and such action shall  not  be  a
<PAGE>

breach  of  this section; provided, however, that such companies either:  (a)
are  listed  on  Addendum  C, attached hereto; or (b)  do  not  compete  with
Employer  or interfere with the performance of Employee's duties pursuant  to
this  Agreement,  as determined in the reasonable judgment of  the  Board  of
Directors.   Unless  otherwise agreed by Employer and  Employee  in  writing,
employment of Employee at less than full time shall not affect the vesting of
the  Purchased  Shares  (as  such  term is  defined  in  the  Stock  Purchase
Agreement) pursuant the Stock Purchase Agreement.

5.3.2     Additionally, Employer recognizes that Employee has, or may have in
the  future,  non-passive equity positions in other companies, which  either:
(a)  are  listed  on Addendum C attached hereto; or (b) do not  compete  with
Employer  in  the  reasonable judgment of the Board of  Directors.   Employer
recognizes  that such equity positions may occasionally require some  limited
attention  from  Employee  during normal business hours.   However,  Employee
agrees  that  if  such  time  is  considered excessive  by  Employer's  Chief
Executive Officer or the Board of Directors, Employee shall be so advised and
noticed  by  Employer  and  Employee shall be required  to  make  appropriate
adjustments  to  ensure his duties and obligations under this  Agreement  are
fulfilled.

6.    TERMINATION.  The Term of this Agreement shall end upon its  expiration
pursuant  to  Section 2 hereof, provided that this Agreement shall  terminate
prior  to  such date: (a) upon the Employee's resignation, death or permanent
disability  or  incapacity; or (b) by Employer at any time  for  "Cause"  (as
defined in Section 6.4 below) or without Cause.

6.1   BY  RESIGNATION.   If Employee resigns with "Good Reason"  (as  defined
below),  this Agreement shall terminate but: (a) Employee shall  continue  to
receive,   through  the  end  of  the  Term  of  this  Agreement,   Incentive
Compensation  in accordance with the terms and conditions of Addendum  A  and
Employee's  Salary  payable in periodic installments  on  Employer's  regular
paydays,  at  the  rate then in effect; and (b) all of Employee's  "Purchased
Shares"  (as such term is defined in the Stock Purchase Agreement)  shall  be
deemed vested.  For purposes of this Agreement, "Good Reason" shall mean: (i)
the   assignment   to  Employee  of  duties  substantially   and   materially
inconsistent  with  the  position and nature of  Employee's  employment,  the
substantial  and  material  reduction of the  duties  of  Employee  which  is
inconsistent  with the position and nature of Employee's employment,  or  the
change  of  Employee's title indicating a substantial and material change  in
the  position  and  nature  of Employee's employment;  (ii)  a  reduction  in
<PAGE>

compensation  and  benefits that would substantially diminish  the  aggregate
value  of  Employee's  compensation and benefits without  Employee's  written
consent;  (iii)  the  failure by Employer to obtain from  any  successor,  an
agreement  to assume and perform this Agreement; or (iv) a corporate  "Change
In  Control" (as defined below).  For purposes of this Agreement, "Change  In
Control"  shall  mean  (1)  a  merger or consolidation  in  which  securities
possessing  more than fifty percent (50%) of the total combined voting  power
of  Employer's outstanding securities are transferred to a person or  persons
different from the persons holding those securities immediately prior to such
transaction  in  a  transaction approved by the stockholders,  or  the  sale,
transfer, or other disposition of more than fifty percent (50%) of the  total
combined  voting power of Employer's outstanding securities to  a  person  or
persons different from the persons holding those securities immediately prior
to such transaction; or (2) the sale, transfer or other disposition of all or
substantially  all  of  the  Employer's assets  in  complete  liquidation  or
dissolution of Employer other than in connection with a transaction described
in  Section 6.1(1) above.  If Employee resigns without Good Reason,  Employee
shall  be  entitled  to receive Employee's Salary and Incentive  Compensation
only  through  the  date of such resignation and Employee's Purchased  Shares
shall be deemed vested only through the date of such resignation.

6.2   BY  REASON  OF  INCAPACITY  OR  DISABILITY:  If  Employee  becomes   so
incapacitated  by  reason  of accident, illness,  or  other  disability  that
Employee  is  unable to carry on substantially all of the normal  duties  and
obligations of Employee under this Agreement for a continuous period of  one-
hundred-eighty  (180)  days (the "Incapacity Period"), this  Agreement  shall
terminate but: (a) Employee shall continue to receive, through the end of the
fiscal  year,  Incentive  Compensation  in  accordance  with  the  terms  and
conditions  of Addendum A; (b) Employee shall receive, during the  Incapacity
Period  and for the six (6) month period thereafter (the "Extended  Period"),
Employee's  Salary  payable in periodic installments  on  Employer's  regular
paydays,  at  the  rate then in effect, reduced only by  the  amount  of  any
payment(s)  received by Employee pursuant to any disability insurance  policy
proceeds; and (c) Employee's Purchased Shares shall be deemed vested  through
<PAGE>

the  Extended  Period.   For purposes of the foregoing, Employee's  permanent
disability  or  incapacity shall be determined in accordance with  Employer's
disability  insurance policy, if such a policy is then in effect,  or  if  no
such  policy is then in effect, such permanent disability or incapacity shall
be  determined  by Employer's Board of Directors in its good  faith  judgment
based  upon Employee's inability to perform normal and reasonable duties  and
obligations.

6.3  BY REASON OF DEATH:  If Employee dies during the Term of this Agreement,
Employer  shall: (a) pay to the estate of Employee, through the  end  of  the
fiscal  year, Employee's Incentive Compensation in accordance with the  terms
and conditions of Addendum A; (b) pay to the estate of Employee, for a period
of  six  (6)  months beginning on the date of death (the "Extended  Period"),
Employee's  Salary  payable in periodic installments  on  Employer's  regular
paydays,  at  the  rate then in effect; and (c) Employee's  Purchased  Shares
shall  be deemed vested through the date of the Extended Period.  Other death
benefits  will  be  determined in accordance with  the  terms  of  Employer's
benefit plans and programs.

6.4   FOR CAUSE.  If the Term of this Agreement is terminated by Employer for
Cause:  (a)  Employee  shall  be entitled to receive  Employee's  Salary  and
Incentive  Compensation  only  through  the  date  of  termination;  and  (b)
Employee's Purchased Shares shall be deemed vested only through the  date  of
such  termination  for Cause.  However, if a dispute arises between  Employer
and  Employee  that is not resolved within sixty (60) days and neither  party
initiates  arbitration proceedings pursuant to Section 11.8,  Employer  shall
have  the  option  to  pay Employee the lump sum of six (6)  months  base  of
Employee's Salary at the time of termination (the "Severance Payment") rather
than  Employee's  Salary  and  Incentive Compensation  through  the  date  of
termination,  and  Employee's Purchased Shares shall continue  to  be  deemed
vested through the date of such termination for Cause.  Such determination to
pay  the  Severance  Payment  in  lieu of  Employee's  Salary  and  Incentive
Compensation  shall  be  made in the reasonable  judgment  of  the  Board  of
Directors.  If Employer elects to make a payment to Employee of the Severance
Payment,  the parties hereto agree that such payment and the payment provided
by  Section 6.6 shall be Employee's complete and exclusive remedy for such  a
<PAGE>

termination  for Cause.  For purposes of this Agreement, "Cause" shall  mean:
(i)  any  act  of  dishonesty or fraud with respect  to  Employer;  (ii)  the
commission  by  Employee of a felony, a crime involving  moral  turpitude  or
other  act causing material harm to Employer's standing and reputation; (iii)
Employee's  continued  material  failure  to  perform  Employee's  duties  to
Employer after thirty (30) days' written notice thereof to Employee; or  (iv)
gross negligence or willful misconduct by Employee with respect to Employer.

6.5   WITHOUT  CAUSE.   If,  during  the Term  of  this  Agreement,  Employer
terminates  the  Employee's employment without Cause: (a) Employee  shall  be
entitled to receive, through the end of the Term of this Agreement, Incentive
Compensation in accordance with the terms and conditions of Addendum  A,  and
Employee's  Base  Salary,  payable  in periodic  installments  on  Employer's
regular  paydays,  at  the rate then in effect; and  (b)  all  of  Employee's
Purchased  Shares shall be deemed vested.  The payments provided by  Sections
6.5  and  6.6  shall  be  Employee's complete and exclusive  remedy  for  any
termination without Cause.

6.6  EFFECT OF TERMINATION ON UNUSED VACATION TIME:  Upon the termination  of
this  Agreement for any reason whatsoever, Employee shall also have the right
to  receive  any  accrued but unused vacation time, and any  benefits  vested
under the terms of any applicable benefit plans.

7.     NON-DISCLOSURE  AND  INVENTION  AND  COPYRIGHT  ASSIGNMENT  AGREEMENT.
Employee's  employment  is  subject to the requirement  that  Employee  sign,
observe  and  agree to be bound, both during and after Employee's employment,
by  the  provisions of Employer's Non-Disclosure and Invention and  Copyright
Assignment  Agreement,  a copy of which is attached  hereto  as  Addendum  D.
Employee's  execution  of  the  Non-Disclosure and  Invention  and  Copyright
Assignment   Agreement  is  an  express  condition  precedent  to  Employer's
obligations  under  this  Agreement.  Employee  further  agrees  to  execute,
deliver  and perform, during the Term of Employee's employment with  Employer
and  thereafter,  any  other  reasonable confidentiality  and  non-disclosure
agreements concerning Employer and any of its affiliates and its business and
products, which Employer promulgates for other key employees and executives.

8.    RETURN  OF EMPLOYER PROPERTY: Employee agrees that upon any termination
of his employment, Employee shall return to Employer within a reasonable time
not to exceed two (2) weeks, any of Employer's property in his possession  or
under  his  control, including but not limited to, computer/office automation
equipment, records and names, addresses, and other information with regard to
customers  or  potential customers of Employer with  whom  Employee  has  had
contact or done business.
<PAGE>

9.    RELATIONSHIP OF PARTIES: The parties intend that this Agreement  create
an employee-employer relationship between the parties.

10.   NOTICES:   All  notices, required and demands and other  communications
hereunder must be in writing and shall be deemed to have been duly given when
personally  delivered or when placed in the United States Mail and  forwarded
by  Registered or Certified Mail, Return Receipt Requested, postage  prepaid,
or  when forwarded via reputable overnight carrier, addressed to the party to
whom such notices is being given at the following address:

     As to Employer:     Knowledge Foundations, Inc.,
                         7852 Colgate Avenue
                         Westminster, CA  92683
                         Attn: President

    As to Employee:      Robert A. Dietrich
                         62 Coral Lake
                         Irvine, CA  92614

Address Change: Any party may change the address(es) at which notices  to  it
or  him,  as  the  case may be, are to be sent by giving the notice  of  such
change to the other parties in accordance with this Section 10.

  11.  MISCELLANEOUS:

11.1  Entire Agreement.  This Agreement and the Addendums hereto contain  the
entire  agreement of the parties.  This Agreement may not be altered, amended
or modified except in writing duly executed by the parties.

11.2  Assignment.  Neither party, without the written consent  of  the  other
party, can assign this Agreement.

11.3  Binding.  This Agreement shall be binding upon and inure to the benefit
of the parties, their personal representative, successors and assigns.

11.4 No Waiver.  The waiver of the breach of any covenant or condition herein
shall  in no way operate as a continuing or permanent waiver of the  same  or
similar covenant or condition.

11.5  Severability.  If any provision of this Agreement is held to be invalid
or  unenforceable for any reason, the remaining provisions will  continue  in
<PAGE>

full  force  without being impaired or invalidated in any way.   The  parties
hereto  agree to replace any invalid provision with at valid provision  which
most closely approximates the intent of the invalid provision.

11.6  Interpretation.   This Agreement shall not be construed  more  strongly
against  any  party  hereto  regardless of which party  may  have  been  more
responsible for the preparation of Agreement.

11.7  Governing Law  This Agreement shall be governed by and construed  under
the  laws of the State of California, without reference to the choice of  law
principles thereof.

11.8 Arbitration.

11.8.1     Any  controversy, dispute or claim of whatever nature in  any  way
arising out of or relating to Employee's employment with Employer, including,
without limitation (except as expressly excluded below in Section 11.8.2) any
claims  or  disputes  by Employee against Employer, or  by  Employer  against
Employee,  concerning, arising out of or relating to the separation  of  that
employment;  any  other  adverse personnel action by Employer;  any  federal,
state   or   local   law,   statute  or  regulation  prohibiting   employment
discrimination  or  harassment; any public policy; any Employer  disciplinary
action;  any  Employer  decision regarding a  Employer  policy  or  practice,
including  but not limited to Employee's compensation or other benefits;  and
any  other  claim  for  personal,  emotional,  physical  or  economic  injury
(individually  or collectively, "Covered Claims") shall be resolved,  at  the
request  of any party to this Agreement, by final and binding arbitration  in
Orange, California before Judicial Arbitration Mediation Services ("JAMS") in
accordance with JAMS' then-current policies and procedures for arbitration of
employment disputes.

11.8.2    The only claims or disputes excluded from binding arbitration under
this  Agreement  are  the  following: any  claim  by  Employee  for  workers'
compensation benefits or for benefits under a Employer plan that provides its
own  arbitration  procedure;  and any claim by  either  party  for  equitable
relief,  including  but  not  limited  to,  a  temporary  restraining  order,
preliminary injunction or permanent injunction against the other party.
<PAGE>

11.8.3     This agreement to submit all Covered Claims to binding arbitration
in  no  way alters the exclusivity of Employee's remedy under Section 6.5  in
the  event  of any termination without Cause or the exclusivity of Employee's
remedy under Section 6.4 in the event of any termination with Cause, and does
not  require  Employer  to  provide Employee with  any  type  of  progressive
discipline.

11.9  Titles.   Titles to the sections of this Agreement are solely  for  the
convenience  of  the  parties  and shall not  be  used  to  explain,  modify,
simplify, or aid in the interpretation of the provisions of this Agreement.

11.10     Counterparts.  This Agreement may be executed in counterparts, each
of which shall be deemed an original, but together which shall constitute one
and the same instrument.
<PAGE>

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

Employer:                          Knowledge Foundations, Inc.,
                                   a Delaware corporation

                              By:/s/ Michael Dochterman
                                      (signature)

                                ___Michael W. Dochterman_____
                                    (Type/Print name)

                                ____President_______________
                                    (Office held)

Employee:

                           By: /s/ Robert Dietrich
                                 (signature)

                           ___Robert A. Dietrich_________
                                (Type/Print name)
<PAGE>

                          ADDENDUM A
                    EMPLOYEE INCENTIVE COMPENSATION PLAN

This  Employee Incentive Compensation Agreement (this "Agreement") is entered
into this 1st day of May, 2000, by and between Knowledge Foundations, Inc., a
Delaware  corporation (the "Employer"), and Robert A. Dietrich  ("Employee"),
as follows:

WHEREAS, it is in the best interest of Employer and Employee to enter into  a
continuing arrangement to cover annual Employee Incentive bonuses, and

WHEREAS, both parties to this Agreement desire to memorialize various aspects
of their relationship:

NOW, THEREFORE, the parties hereby agree as follows:

1.    Addendum.  This Agreement is in an addendum to that certain  Employment
Agreement effective of even date herewith.

2. Employee Incentive Bonus:     Any bonuses granted pursuant to this Agreement
shall  be paid annually, within ten (10) days of the completion of the annual
independent  audit of Employer.  Such bonuses shall be based upon  Employer's
"EBITB" (as defined below) and the cumulative scaled percentage set forth  on
Schedule 1, attached hereto and made a part hereof.

3.    Definition  of EBITB:     The term "EBITB" as used herein,  shall  mean
Employer's  net  operating  profits before  taxes,  interest  and  any  other
executive bonuses are paid.  EBITB shall be determined and certified  by  the
independent public accountants regularly retained by Employer or  its  parent
company  in accordance with generally accepted accounting principles and  the
determination  of  such independent accountants shall be final,  binding  and
conclusive on the parties hereto.  In making such determination, all gains or
losses realized in the sale or other distribution of capital assets shall  be
excluded.  Furthermore, any payment of dividends to shareholders and  certain
indirect corporate parent expense items shall also be excluded.

Employer  may, from time to time, change, discontinue, sell or undertake  any
new  operation  and  may take any and all other steps,  which  the  Board  of
Directors  of  Employer, in its exclusive judgment, shall deem desirable  for
Employer.   If any such action taken by Employer, or its Board of  Directors,
adversely affects the EBITB Employee shall have no claim or recourse  for  or
by reason of such action.
<PAGE>

4.   Termination: Termination of employment with Employer, whether voluntary or
involuntary,  shall not affect any bonus earned but not paid.  If  employment
is  terminated, a proportionate share of any bonus earned shall  be  paid  to
Employee on the next regular bonus payment date.

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

Employer:

Knowledge Foundations, Inc.,
a Delaware corporation

By:/s/ Michael Dochterman
     (signature)

 ___Michael W. Dochterman_____
     (Type/Print name)

____President_______________
     (Office held)

Employee:

By: /s/ Robert Dietrich
     (signature)

___Robert A. Dietrich_________
     (Type/Print name)
<PAGE>

                                 Schedule 1
                                to Addendum A

                      Bonus Plan for Robert A. Dietrich

       EBITB        Marginal % Bracket          Bonus
      $0 - $500,000         3%            Up to $15,000.00
         $501,000 -         4%           $15,000 plus 4% of
         $1,500,000                      EBITB over $501,000
       $1,500,001 -         5%           $55,000 plus 5% of
         $2,500,000                      EBITB over
                                         $1,500,001
       $2,500,001 -         6%           $105,000 plus 6% of
         $3,500,000                      EBITB over
                                         $2,500,001
    Over $3,500,000         7%           $165,000 plus 7% of
                                         EBITB over
                                         $3,500,000

<PAGE>

                                 ADDENDUM B

                   Job Description for Robert A. Dietrich

Job Title:  Chief Financial Officer & Vice President of Operations
Department:    Executive
Reports To:    Board of Directors and President

SUMMARY

The Chief Financial Officer (CFO) - is responsible for planning, organizing,
staffing, and managing all the Company's financial functions, such as
procurement, Human Resources, accounting practice, and investment of funds.
The CFO manages KFI's relationships with lending institutions, shareholders,
and essential members of the financial community and is accountable to the
CEO for the results of such functions and performance of all assigned
employees -- providing such legal documents, financial filings, reports, and
information as required by KFI, by its Board of Directors, or by law.

The Vice President of Operations (VPO) is responsible for planning,
organizing, staffing, and managing operations that license and deliver
software tools and products; that provide system integration support; and
that contract and deliver training, analysis, and development support
services. The VPO develops the formal requirements, performance
specifications, and metrics for assessing the operational effectiveness of
these processes and, as directed by the CEO, develops strategies for
sustaining this effectiveness in line with corporate goals and contract
obligations.

Assists in preparing an annual business plan and budget for the company's
operations and works in cooperation with the other executives for the orderly
and efficient operation of the company's business

Aids CEO in formulating and administering KFI policies and performs the
following duties personally or through subordinate managers.

ESSENTIAL DUTIES AND RESPONSIBILITIES OF CHIEF FINANCIAL OFFICER include the
following. Other duties may be assigned.

Planning:
Directs and analyzes studies of general economic, business, and financial
conditions and their impact on the Company's policies and operations.

Analyzes operational issues impacting functional groups and the whole
institution, and determines their financial impact.

Evaluates need for procurement of funds and investment of surplus.

Advises management on investments and loans for short- and long-range
financial plans.

Evaluates and recommends business partnering opportunities.

Oversees and directs the preparation and issuance of the corporation's annual
report.
<PAGE>

Organization and Staffing:
Designs and implements cash management system and prepares cash flow and
other financial reports.

Delegates and manages authority for receipt, disbursement, banking,
protection and custody of funds, securities, and financial instruments.

Develops policies and procedures for account collections and extension of
credit to customers.

Directs and coordinates the establishment of budget programs.

Directs the controller in providing and directing procedures and computer
application systems necessary to maintain proper records and to afford
adequate accounting controls and services.

Coordinates tax reporting programs and investor relations activities.

Management:
Oversees and directs treasury, budgeting, audit, tax, accounting, purchasing,
real estate, long range forecasting, and insurance activities for the
Company.

Analyzes financial records to forecast future financial position and budget
requirements.

Analyzes, consolidates, and directs all cost accounting procedures together
with other statistical and routine reports.

Signs notes of indebtedness as approved by CEO and/or Board of Directors.

Appraises the Company's financial position and issues periodic reports on
Company's financial stability, liquidity, and growth.

Establishes and maintains contacts with stockholders, financial institutions,
and the investment community.

ESSENTIAL DUTIES AND RESPONSIBILITIES Of VICE PRESIDENT Of OPERATIONS include
the following. Other duties may be assigned.

Supports the CEO and assumes all delegated roles of Executive Vice President
in the CEO's absence.

Sets up a uniform and coordinated electronic system for calendar
coordination, inter-departmental messaging and document exchange, project
planning, resource commitment, and archiving.

Meets regularly with the managers of every department to map the calendar,
flow, and support requirements for planned or on-going business activities --
particularly as they relate to interdepartmental exchanges or the delivery of
products and services to customers.

Prepares project status reports and keeps management, clients, and others
informed of project status and related issues.
<PAGE>

Establishes clear guidelines and requirements:

(1) For "productizing" every deliverable and service to be offered to KFI's
customers;

(2) For modeling the statements of work, resource assumptions, schedule of
key events and deliverables for purpose of proposal development, job costing,
and work planning;

(3) For guaranteeing resource availability and earned income once work
begins.

Organizes the corporate resources and services to be shared by all
departments, operating units, and project sub-contractors -- coordinates
facilities, recruitment, resource sharing, points of contact, invoicing,
deliver, billing, query and complaint resolution.

Organizes and manages all teaming arrangements from contact, through proposal
development, project contracting, organization and operational oversight, to
final sign-off and completion.

Recruits, arranges training, evaluates, pools, assigns, and supports the sub-
contracted analysis, development, training, and support project teams
provided by Knowledge Foundations in fulfilling service contracts.

Monitors project milestone achievement, client progress and "heading check"
briefings and reports, etc. to judge client satisfaction -- arranging project
intervention or achievement recognition and reward as required to achieve
every corporate performance objective.

Collaborates with all department heads to set-up company-wide programs for
independent research, testing, and quality control. Supports department heads
(1) in adopting appropriate systems for sales contact success, software unit
test, service call assessment, training session evaluation, etc. and (2) in
setting up independent, outside services to assess the company's product and
operational performance.

Ensures that all Company activities and operations are carried out in
compliance with local, state, and federal regulations and laws governing
business operations.

ORGANIZATIONAL RELATIONSHIPS
Has  frequent  contact  with  all department heads  and  key  staff  members.
Communicates  frequently  with  major  customers  and  vendors.    Represents
Employer  in  contacts  with  industry members and  community  officials  and
agencies.

KNOWLEDGE, SKILLS AND EXPERIENCE
Requires  high level of planning and organizing skills plus strong leadership
and  interpersonal  abilities.   Must  have  excellent  time  management  and
communication skills.

<PAGE>

                                 ADDENDUM C

                     Approved Non-Knowledge Foundations
                        Business Activity Exemptions

Description of Business Activity             Employee's Signature
Employer's Signature
1.   Director - Imaging Technologies, Inc. (ITEC/OTC:BB)
2.   Equity & Part Time CFO - Pen Interconnect, Inc. (PENC/OTC:BB)
3.   Equity - Internet Revenue Network, Inc/AOK, Inc.
4.   Equity & Director - CyberAir Communications, Inc.
5.   Equity & Director - Semper Resources, Inc. (SRCR/OTC:BB)

Items 1 through 5 above as described

<PAGE>
                                 ADDENDUM D

                    EMPLOYEE NONDISCLOSURE AND INVENTION
                                     AND
                       COPYRIGHT ASSIGNMENT AGREEMENT

     In  consideration of my employment by KNOWLEDGE FOUNDATIONS, INC. or any
of its subsidiaries and affiliates ("Employer"):

1.    I  will  promptly  disclose  to Employer in  writing  all  discoveries,
concepts  and  ideas, whether patentable or unpatentable, including  but  not
limited  to  processes, designs, innovations, inventions, formulas,  methods,
and  techniques, as well as improvements and know-how related thereto,  made,
conceived,  reduced to practice or learned by me while in Employer's  employ,
either  solely  or  jointly  with  others  during  my  employment  ("Employer
Inventions").   This  Agreement shall not apply to  any  Invention  developed
entirely  on  my  own  time  without  using Employer's  equipment,  supplies,
facilities or trade secret information, except for those items and inventions
that  either: (i) relate, at the time of conception or reduction to  practice
of  the  invention, to Employer's business or any of the products or services
being  developed, manufactured or sold by Employer or which may  conveniently
be  used  in  relation  therewith,  or actual,  or  demonstrably  anticipated
research  or development of Employer, or (ii) result from any work  performed
by me for Employer.

     THIS  AGREEMENT  DOES NOT APPLY TO ANY INVENTION WHICH  QUALIFIES  FULLY
UNDER THE PROVISIONS OF CALIFORNIA LABOR CODE SECTION 2870.

     (a)  I hereby assign to Employer all of my right, title and interest  in
and  to  all  such Employer Inventions and to applications for United  States
and/or  foreign  letters patent and to United States and/or  foreign  letters
patent granted upon such Employer Inventions.

     (b)   I  will acknowledge and deliver promptly to Employer such  written
instruments and do such other acts, such as giving testimony in support of my
inventorship  as may be necessary in the opinion of Employer  to  obtain  and
maintain  United States and/or foreign letters patent and to vest the  entire
right and title thereunto in Employer.

     (c)   I agree that, except for works listed on the attached Schedule  1,
which list the Employer and I may jointly add to from time to time, title  to
any  and  all  copyrights, copyright registrations and copyrightable  subject
matter  which  occurs as a result of my employment by Employer shall  be  the
sole  and exclusive property of Employer, and that such works comprise  works
made  for hire.  I hereby assign, and agree to assign, all of said copyrights
to Employer.
<PAGE>

     (d)   I  have  listed  on the attached Schedule 2, all  unpatented,  but
potentially  patentable, ideas and inventions conceived before my  employment
with Employer and which are exempt from the obligations of this Agreement.

     (e)   In  the  event  Employer is unable to secure my signature  on  any
document  necessary to apply for, prosecute, obtain, or enforce  any  patent,
copyright,  or other right of protection relating to any Employer Inventions,
I  hereby  irrevocably designate and appoint Employer and each  of  its  duly
authorized  officers and agents as my agent and attorney-in-fact to  act  for
and  in my behalf and stead to execute and file any such document and  to  do
all  other  lawfully permitted acts to further the prosecution, issuance  and
enforcement  of patents, copyrights or other rights or protections  with  the
same force and effect as if executed and delivered by me.

2.    As  a direct or indirect consequence of my employment with Employer,  I
have  been  and  will/may  be  exposed to highly sensitive  and  confidential
information  (some  of which I may in the past have, or may  in  the  future,
develop  or  contribute to) not generally, if at all, known or  available  to
persons  or  entities  not  in  some  way  affiliated  with  Employer  and/or
affiliates   ("Confidential  Information").  Confidential  Information  shall
include,  without  limitation, all: (i) information that has  or  could  have
commercial value or other utility in the business in which Employer  and  its
affiliates  are engaged or contemplate engaging in; and (ii) all  information
the unauthorized disclosure of which could be detrimental to the interests of
Employer and/or its affiliates, whether or not such information is identified
as Confidential Information by Employer.  By example, and without limitation,
Confidential   Information  includes:   financial  statements  and   records,
illustrations, prototypes, models, whether patentable or unpatentable,  trade
secrets,  know-how,  concepts and other data, trademarks, copyrights,  design
features, or configurations of any kind, procedures, demonstrations, methods,
processes,    uses,   manufacturing   information,   techniques,    formulas,
improvements,  research and development data, pamphlets,  books,  reports  or
other documents, inspection procedures, apparatuses, compounds, compositions,
combinations,   programs,   software  and  works  of   authorships,   whether
discovered,  conceived, developed, made or produced, research and development
projects; strategic alliances; confidential information of other entities  or
companies with whom Employer or its affiliates may enter into joint ventures,
strategic  alliances  or  other  business  relationships;  the  identity   of
consultants  and  assistants; future advertising and  marketing  methods  and
plans;  detailed sales and pricing information and formulas; budgets; product
performance;  sources  of  products; production and distribution  methods  or
procedures;  business methods, procedures and plans; licensing  arrangements;
customer  product  preferences and requirements; and, additional  information
relating  to  financial,  marketing, technical,  developmental  and/or  other
business  aspects,  of Employer and/or Employer's affiliates.   I  agree  and
understand that any and all of the foregoing is considered by Employer to  be
of   a   highly  confidential  nature  and  as  a  trade  secret.   The  term
"Confidential Information" shall not include any information obtained  by  me
through  (i)  industry  publications which are  disseminated  to  or  can  be
acquired  by  businesses  in  the industry, (ii)  Dodge  Reports  and  Dun  &
Bradstreet  and  any  similar  information services,  (iii)  any  Chamber  of
Commerce   or   other  trade  association  reports,  or  (iv)  reports   from
governmental agencies.  In furtherance of the foregoing, I agree as follows:
<PAGE>

     (a)   To  refrain  from  reproducing or making any summary,  extract  or
abridgement  of, other than in the regular course of business,  or  removing,
any  business record, document, schematic, drawing, instrument, component  or
any  other  item  dealing  with the Confidential  Information  without  prior
written consent therefor.

     (b)   To  refrain  from  discussing with any other  person  or  persons,
whether or not said persons are in the employ of Employer, any aspect of  the
Confidential  Information,  except as said  discussions  directly  relate  to
completion  of  the  particular  task  at  hand  and/or  in  compliance  with
instructions to do so.

     (c)    To  accept  and  maintain  the  Confidential  Information  on   a
confidential  basis  and to protect and safeguard same  against  unauthorized
publication  or  disclosure.   I will not be justified  in  disregarding  the
obligation  of  confidentiality  by selecting  individual  pieces  of  public
information  and  fitting  them together by use of integrated  disclosure  to
contend that such Confidential Information is in the public domain.

     (d)   Other than in furtherance of my employment with Employer,  not  to
use,  directly  or  indirectly,  for my  own  or  for  my  future  employer's
advantage,  any  Confidential Information learned during my  employment  with
Employer and which is not made publicly known (through no fault of mine).

     (e)   Not to disclose, publicize, reveal or make available, directly  or
indirectly,  any  of  the Confidential Information to any  firm,  person,  or
entity  whatsoever, except for a disclosure which is required, if at all,  by
statute,  order  of  court or otherwise by law, and  then  only  after  first
advising  Employer of such demand with reasonably sufficient advance  notice,
if  possible,  so as to afford Employer an opportunity to seek  a  protective
order.

     (f)   Upon  termination of my employment, to turn over to  a  designated
individual  employed by Employer all property then in my possession,  custody
or  immediate control belonging to Employer.  I will not retain any original,
copy,  summary  or  abridgement of any document which  contains  Confidential
Information,   including  correspondence,  memoranda,   reports,   calendars,
contracts, notebooks, drawings, photos or other documents relating in any way
to  the affairs of Employer or to the affairs of its affiliated companies and
which are entrusted to me or developed by me at any time during my employment
with  Employer, all of which, will be delivered to Employer immediately  upon
termination of my employment.

     (g)   Not  to  interfere  with  the relationship  between  and/or  among
Employer and its consultants, agents, employees or others working on research
and  development  projects  or  providing services  or  products  to  or  for
Employer,  nor disclose the identity of said individuals and/or  entities  so
long as not otherwise generally known in the trade.
<PAGE>

3.     Notwithstanding  the  definition  of  "Confidential  Information,"   I
understand  that I shall not be liable for disclosure to any third  party  or
use  of any Confidential Information which: (i) at the time of disclosure  or
thereafter becomes a part of the public domain through no act or omission  by
me;  (ii) has been independently generated, discovered or perfected by me and
is  listed  on  the attached Schedule 2; (iii) is subsequently  and  lawfully
disclosed  to  me  by a third party, which third party did  not  acquire  the
information under an obligation of confidentiality from or through  Employer;
or (iv) is required to be disclosed as a matter of law.

4.    I  acknowledge  and  agree that the Confidential Information,  and  the
strict confidentiality thereof, materially affects the successful conduct  of
Employer's business and its goodwill; therefore, any breach of the  terms  of
this  Agreement  by  me  is  a material breach thereof,  and  may  result  in
termination  of  my  employment, the imposition  of  injunctive  relief,  and
liability  for  damages  sustained  by  Employer.   In  furtherance  of   the
foregoing, I agree to pay all costs, expenses and attorneys' fees as incurred
by Employer in the enforcement of this Agreement.

5.    No  modification or waiver of this Agreement or any of  its  provisions
shall be binding upon Employer unless made in writing and signed on behalf of
Employer  by  one  of  its  officers (other  than  me).   The  invalidity  or
unenforceability  of  any provision of this Agreement shall  not  affect  the
validity  or  enforceability  of  any other provision  and  such  invalid  or
unenforceable provision shall be reformed to the extent possible in order  to
give its intended effect and/or meaning.  This Agreement shall be governed by
and construed in accordance with the laws of the State of California.

6.    This  Agreement  together with my Employment  Agreement  with  Employer
supersedes any and all agreements between me and Employer with respect to the
subject matter hereof.

7.    In  the  event of any controversy, dispute or claim arising out  of  or
relating to this Agreement, the Employer and I agree as follows:

      (a)   I  acknowledge and agree that any breach by me of this Agreement,
including but not limited to, disclosure of any information that, at  law  or
in  good  conscience or equity, should remain confidential, may give rise  to
irreparable  injury to Employer which will not be adequately  compensable  by
damages.  Accordingly, Employer may seek and obtain injunctive relief against
the  breach  or  threatened breach of any of the foregoing  undertakings,  in
addition  to  all  other legal remedies, if any, that may  be  available.   I
acknowledge  and  expressly  agree that the covenants  contained  herein  are
necessary for the protection of the legitimate business interests of Employer
and  its  affiliates and are reasonable in scope and content,  and  I  hereby
waive,  to  the  maximum extent permitted by applicable law, any  requirement
that  Employer  or any other person post a bond in order to obtain  equitable
relief.

      (b)   Except  as otherwise set forth in subparagraph 7(a), all  claims,
disputes  and other matters in controversy (collectively, "Dispute") arising,
directly  or  indirectly out of or related to this Agreement, or  the  breach
thereof,  whether contractual or noncontractual, and whether during the  term
or  after  the  termination of this Agreement, shall be resolved  exclusively
<PAGE>

according  to  the arbitration provisions of Section 11.8 of  the  Employment
Agreement between me and Employer.

8.   The covenants and agreements undertaken herein shall survive termination
of my employment.

     I  have  read  and fully understand the foregoing, and  by  affixing  my
signature below, I agree to be fully bound hereby.

Dated: ______________________

Employee:

                              Print Name:

<PAGE>

                                 Schedule 1
                                to Addendum D

               Copyrighted And Copyrightable Work Exempt From
                  This Employee Nondisclosure And Invention
                     And Copyright Assignment Agreement

Description of Work           Employee's Signature     Employer's Signature

<PAGE>

                                 Schedule 2
                                to Addendum D

                    Unpatented But Potentially Patentable
                            Ideas And Inventions
                 Conceived Prior To Employment With Employer

Description of Ideas & Inventions   Employee's Signature   Employer's Signature

<PAGE>

                                 ADDENDUM E

                          STOCK PURCHASE AGREEMENT
<PAGE>
                      WRITTEN NOTIFICATION TO EMPLOYEE

     In  accordance with California Labor Code Section 2872, you  are  hereby
notified  that  your  Employee  Nondisclosure  and  Invention  and  Copyright
Assignment Agreement does not require you to assign to Employer any invention
which  qualifies fully under the provisions of California Labor Code  Section
2870.

     You are hereby provided a copy of California Labor Code Section 2870.

     I hereby acknowledge receipt of this written notification.

Dated: _______________, 2000

                              Print Name:    Robert A. Dietrich_________Exhibit 10.3
                            EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT (this "Agreement") is made and entered into as
of  the  1st day of May, 2000, by and between Knowledge Foundations, Inc.,  a
Delaware corporation ("Employer"), and Michael W. Dochterman ("Employee").

                            W I T N E S S E T H:

  WHEREAS,  the officers, managers and/or directors of Employer  are  of  the
opinion that Employee has education, experience and/or expertise which is  of
value to Employer and its owners, and

  WHEREAS,  Employer  and  Employee desire  to  enter  into  this  Employment
Agreement, pursuant to which Employee shall be employed by Employer,  to  set
forth the respective rights, duties and obligations of the parties hereto.

  NOW  THEREFORE,  in  consideration of the promises and covenants  contained
herein,   and  other  good  and  valuable  consideration,  the  receipt   and
sufficiency  of which the parties hereto acknowledge, Employer  and  Employee
agree as follows:

   1.   EMPLOYMENT.  Employer hereby agrees to employ Employee and Employee
   hereby accepts such employment, upon the terms and conditions hereinafter set
   forth.

   2.   TERM.  For purposes of this Agreement, "Term" shall mean the original
   term (as defined in Section 2.1 below) and the renewal term (as defined in
   Section 2.2 below), if applicable.

   2.1  Original Term: The Term of this Agreement shall commence on May 1, 2000
    and expire on March 31, 2004, unless sooner terminated pursuant to the terms
    and provisions herein stated.

   2.2  Renewal Term:  This Agreement shall automatically be extended for
   additional one (1) year renewal terms unless either party gives written
   notice to terminate this Agreement at least ninety (90) days prior to the end
   of the preceding term.

     3.   COMPENSATION.

   3.1  Salary:  Employer shall pay Employee a base annual  salary  of
               Ten   Thousand  Dollars  ($10,000)  per  month,   payable   in
               accordance  with Employer's normal policies but  in  no  event
               less often than biweekly (the "Salary").  Effective January  1

<PAGE>

               for   each  successive  year  this  Agreement  is  in  effect,
               compensation  shall be adjusted by the Board of  Directors  of
               Employer; provided, however, that no adjustment shall be  less
               than a ten percent (10%) increase of the Salary.  The Board of
               Directors  shall  have the right to increase the  Salary  more
               often than annually at its sole discretion.

   3.2  Incentive Compensation: Employer shall also pay to Employee incentive
   compensation in accordance with Addendum A, Employee Incentive Compensation
   Plan, attached hereto and made a part hereof by this reference.  Incentive
   Compensation shall be paid not less frequently than annually, and prorated as
   applicable.

   3.3  Management by Objectives (MBO) Bonus: Starting May 1, 2000 and
   recommencing each successive calendar year during the Term of this Agreement,
   Employee shall participate in an annual MBO Bonus Program designed to incent
   the accomplishment, completion and/or delivery of predefined strategic
   objectives that support Employer's annual strategic business plan.  Prior to
   each MBO bonus yielding year, Employee shall present to the Board of
   Directors a set of strategic objectives.  The Board of Directors shall assign
   a specific economic MBO bonus value and payment schedule to each listed
   objective and present this to Employee.  The Employee will be paid the
   appropriate MBO bonus based on performance and accomplishment of the
   objectives as determined appropriate by the Board of Directors.

   3.4  Stock Purchase Agreement: Employer and Employee entered into that
   certain Stock Purchase Agreement dated April 6, 2000, a copy of which is
   attached hereto as Addendum E (the "Stock Purchase Agreement").

   4.   EMPLOYEE BENEFITS.

   4.1  General Benefits:  Employee shall be entitled to receive or participate
   in all benefit plans and programs of Employer currently existing or hereafter
   made available to executives or senior management of Employer, including but
   not limited to, dental and medical insurance, including coverage for
   dependents of Employee, pension and profit sharing plans, 401(k) plans,
   incentive savings plans, stock option plans, group life insurance, salary
   continuation plans, disability coverage and other fringe benefits.

<PAGE>

   4.2  Business Expense: Employee shall be provided with American Express
   and/or Visa/Master Card credit cards issued in the name of Employer, for
   purposes of paying business expenses, including without limitation, business
   travel, entertainment, lodging and similar activities.  Additionally,
   Employee shall be entitled to receive proper reimbursement for all reasonable
   out-of-pocket expenses incurred directly by Employee in performing Employee's
   duties and obligations under this Agreement.  Employer shall reimburse
   Employee for such expenses on a monthly basis, upon submission by Employee of
   appropriate receipts, vouchers or other documents in accordance with
   Employer's policy.

   4.3  Automobile Expenses: Employer shall provide Employee with an automobile
   allowance in the amount of $750.00 per month, for payment of expenses
   relating to Employee's operation and use of an automobile in the course of
   performing duties and obligations under this Agreement.

   4.4  Cellular Telephone: Employer shall provide Employee with a cellular
   telephone for use on Employer's business and Employer shall be responsible
   for all costs and expenses incurred in connection with the operation and use
   of such cellular telephone, including but not limited to, monthly service
   charges and maintenance; provided, however, that Employer shall not be
   responsible for costs and expenses incurred for personal use of Employee.

   4.5  Assistance: Employer shall furnish Employee with an office, together
   with a portable computer and office equipment and such other facilities and
   services as are deemed by the Board of Directors of Employer to be suitable
   for his position and adequate for the performance of his duties and
   obligations under this Agreement.  Employer shall also provide Employee with
   the necessary communications and computer gear, and related communications
   service cost and computer supplies, to support a working home office;
   provided, however, that this Section 4.5 shall in no way be construed to
   obligate Employer to provide Employee with office furnishings for such
   working home office or to reimburse Employee for home office use unless a
   separate written agreement is entered into between Employer and Employee.

   4.6  Vacation:  Employee shall be entitled during each twelve (12) month
   period during the Term of this Agreement to a vacation of three (3) weeks
   during which time Employee's compensation will be paid in full.  Unused days

<PAGE>

   of vacation will be compensated in accordance with Employer's policy as
   established by Employer from time to time.  Employee may take the vacation
   periods at any time during the year as long as Employee schedules time off as
   to not create hardship on Employer.  In addition, Employee shall have such
   other days off as shall be determined by Employer and shall be entitled to
   paid sick leave and paid holidays in accordance with Employer's policy.

  5.   DUTIES/SERVICES

   5.1  Position: Employee is employed as Chief Executive Officer and President
   and shall perform such services and duties as are defined in Addendum B, Job
   Description, attached hereto, and as are normally associated with such
   position, subject to the direction, supervision and rules and regulations of
   Employer.

   5.2  Place of Employment: The place of Employee's employment and the
   performance of Employee's duties will be at Employer's corporate headquarters
   and at Employee's home office or at such location as agreed upon by Employer
   and Employee.

   5.3  Extent of Services: Employee shall at all times and to the best of his
   ability perform his duties and obligations under this Agreement in a
   reasonable manner consistent with the interests of Employer.  The precise
   services of the Employee may be extended or curtailed, from time to time at
   the discretion of Employer, and Employee agrees to render such different
   and/or additional services of a similar nature as may be assigned from time
   to time by Employer.  However, Employer shall not materially alter Employee's
   title, duties, obligations or responsibilities or transfer Employee outside
   of the Orange County, California area without Employee's prior written
   consent.

   5.3.1     Except as otherwise agreed by Employer and Employee in writing, it
   is expressly understood and agreed that Employee's employment is fulltime and
   of a critical nature to the success of Employer and is therefore exclusive.
   Employee may not be employed by other entities or otherwise perform duties
   and undertakings on behalf of others or for his own interest unless pre-
   approved by Employer's Chief Executive Officer or by the Board of Directors.
   Employer acknowledges that Employee presently, or may in the future, serve on
   the Board of Directors of other companies and such action shall not be a
   breach of this section; provided, however, that such companies either: (a)

<PAGE>

   are listed on Addendum C, attached hereto; or (b) do not compete with
   Employer or interfere with the performance of Employee's duties pursuant to
   this Agreement, as determined in the reasonable judgment of the Board of
   Directors.  Unless otherwise agreed by Employer and Employee in writing,
   employment of Employee at less than full time shall not affect the vesting of
   the Purchased Shares (as such term is defined in the Stock Purchase
   Agreement) pursuant the Stock Purchase Agreement.

   5.3.2     Additionally, Employer recognizes that Employee has, or may have in
   the future, non-passive equity positions in other companies, which either:
   (a) are listed on Addendum C attached hereto; or (b) do not compete with
   Employer in the reasonable judgment of the Board of Directors.  Employer
   recognizes that such equity positions may occasionally require some limited
   attention from Employee during normal business hours.  However, Employee
   agrees that if such time is considered excessive by Employer's Chief
   Executive Officer or the Board of Directors, Employee shall be so advised and
   noticed by Employer and Employee shall be required to make appropriate
   adjustments to ensure his duties and obligations under this Agreement are
   fulfilled.

   6.   TERMINATION.  The Term of this Agreement shall end upon its expiration
   pursuant to Section 2 hereof, provided that this Agreement shall terminate
   prior to such date: (a) upon the Employee's resignation, death or permanent
   disability or incapacity; or (b) by Employer at any time for "Cause" (as
   defined in Section 6.4 below) or without Cause.

   6.1  BY RESIGNATION.  If Employee resigns with "Good Reason" (as defined
   below), this Agreement shall terminate but: (a) Employee shall continue to
   receive, through the end of the Term of this Agreement, Incentive
   Compensation in accordance with the terms and conditions of Addendum A and
   Employee's Salary payable in periodic installments on Employer's regular
   paydays, at the rate then in effect; and (b) all of Employee's "Purchased
   Shares" (as such term is defined in the Stock Purchase Agreement) shall be
   deemed vested.  For purposes of this Agreement, "Good Reason" shall mean: (i)
   the assignment to Employee of duties substantially and materially
   inconsistent with the position and nature of Employee's employment, the
   substantial and material reduction of the duties of Employee which is
   inconsistent with the position and nature of Employee's employment, or the
   change of Employee's title indicating a substantial and material change in

<PAGE>

   the position and nature of Employee's employment; (ii) a reduction in
   compensation and benefits that would substantially diminish the aggregate
   value of Employee's compensation and benefits without Employee's written
   consent; (iii) the failure by Employer to obtain from any successor, an
   agreement to assume and perform this Agreement; or (iv) a corporate "Change
   In Control" (as defined below).  For purposes of this Agreement, "Change In
   Control" shall mean (1) a merger or consolidation in which securities
   possessing more than fifty percent (50%) of the total combined voting power
   of Employer's outstanding securities are transferred to a person or persons
   different from the persons holding those securities immediately prior to such
   transaction in a transaction approved by the stockholders, or the sale,
   transfer, or other disposition of more than fifty percent (50%) of the total
   combined voting power of Employer's outstanding securities to a person or
   persons different from the persons holding those securities immediately prior
   to such transaction; or (2) the sale, transfer or other disposition of all or
   substantially all of the Employer's assets in complete liquidation or
   dissolution of Employer other than in connection with a transaction described
   in Section 6.1(1) above.  If Employee resigns without Good Reason, Employee
   shall be entitled to receive Employee's Salary and Incentive Compensation
   only through the date of such resignation and Employee's Purchased Shares
   shall be deemed vested only through the date of such resignation.

    6.2  BY  REASON OF INCAPACITY OR DISABILITY: If Employee becomes so
    incapacitated by reason of accident, illness, or other disability that
    Employee is unable to carry on substantially all of the normal duties and
    obligations of Employee under this Agreement for a continuous period of one-
    hundred-eighty (180) days (the "Incapacity Period"), this Agreement shall
    terminate but: (a) Employee shall continue to receive, through the end of
    the fiscal year, Incentive Compensation in accordance with the terms and
    conditions of Addendum A; (b) Employee shall receive, during the Incapacity
    Period and for the six (6) month period thereafter (the "Extended Period"),
    Employee's Salary payable in periodic installments on Employer's regular
    paydays, at the rate then in effect, reduced only by the amount of any
    payment(s) received by Employee pursuant to any disability insurance policy
    proceeds; and (c) Employee's Purchased Shares shall be deemed vested through
    the Extended Period.  For purposes of the foregoing, Employee's permanent
    disability or incapacity shall be determined in accordance with Employer's
    disability insurance policy, if such a policy is then in effect, or if no

<PAGE>

    such policy is then in effect, such permanent disability or incapacity shall
    be determined by Employer's Board of Directors in its good faith judgment
    based upon Employee's inability to perform normal and reasonable duties and
    obligations.

   6.3  BY REASON OF DEATH:  If Employee dies during the Term of this Agreement,
   Employer shall: (a) pay to the estate of Employee, through the end of the
   fiscal year, Employee's Incentive Compensation in accordance with the terms
   and conditions of Addendum A; (b) pay to the estate of Employee, for a period
   of six (6) months beginning on the date of death (the "Extended Period"),
   Employee's Salary payable in periodic installments on Employer's regular
   paydays, at the rate then in effect; and (c) Employee's Purchased Shares
   shall be deemed vested through the date of the Extended Period.  Other death
   benefits will be determined in accordance with the terms of Employer's
   benefit plans and programs.

   6.4  FOR CAUSE.  If the Term of this Agreement is terminated by Employer for
   Cause: (a) Employee shall be entitled to receive Employee's Salary and
   Incentive Compensation only through the date of termination; and (b)
   Employee's Purchased Shares shall be deemed vested only through the date of
   such termination for Cause.  However, if a dispute arises between Employer
   and Employee that is not resolved within sixty (60) days and neither party
   initiates arbitration proceedings pursuant to Section 11.8, Employer shall
   have the option to pay Employee the lump sum of six (6) months base of
   Employee's Salary at the time of termination (the "Severance Payment") rather
   than Employee's Salary and Incentive Compensation through the date of
   termination, and Employee's Purchased Shares shall continue to be deemed
   vested through the date of such termination for Cause.  Such determination to
   pay the Severance Payment in lieu of Employee's Salary and Incentive
   Compensation shall be made in the reasonable judgment of the Board of
   Directors.  If Employer elects to make a payment to Employee of the Severance
   Payment, the parties hereto agree that such payment and the payment provided
   by Section 6.6 shall be Employee's complete and exclusive remedy for such a
   termination for Cause.  For purposes of this Agreement, "Cause" shall mean:
   (i) any act of dishonesty or fraud with respect to Employer; (ii) the
   commission by Employee of a felony, a crime involving moral turpitude or
   other act causing material harm to Employer's standing and reputation; (iii)
   Employee's continued material failure to perform Employee's duties to

<PAGE>

   Employer after thirty (30) days' written notice thereof to Employee; or (iv)
   gross negligence or willful misconduct by Employee with respect to Employer.

   6.5  WITHOUT CAUSE.  If, during the Term of this Agreement, Employer
   terminates the Employee's employment without Cause: (a) Employee shall be
   entitled to receive, through the end of the Term of this Agreement, Incentive
   Compensation in accordance with the terms and conditions of Addendum A, and
   Employee's Base Salary, payable in periodic installments on Employer's
   regular paydays, at the rate then in effect; and (b) all of Employee's
   Purchased Shares shall be deemed vested.  The payments provided by Sections
   6.5 and 6.6 shall be Employee's complete and exclusive remedy for any
   termination without Cause.

   6.6  EFFECT OF TERMINATION ON UNUSED VACATION TIME:  Upon the termination of
   this Agreement for any reason whatsoever, Employee shall also have the right
   to receive any accrued but unused vacation time, and any benefits vested
   under the terms of any applicable benefit plans.

   7.   NON-DISCLOSURE  AND  INVENTION AND COPYRIGHT ASSIGNMENT  AGREEMENT.
   Employee's employment is subject to the requirement that Employee sign,
   observe and agree to be bound, both during and after Employee's employment,
   by the provisions of Employer's Non-Disclosure and Invention and Copyright
   Assignment Agreement, a copy of which is attached hereto as Addendum D.
   Employee's execution of the Non-Disclosure and Invention and Copyright
   Assignment Agreement is an express condition precedent to Employer's
   obligations under this Agreement.  Employee further agrees to execute,
   deliver and perform, during the Term of Employee's employment with Employer
   and thereafter, any other reasonable confidentiality and non-disclosure
   agreements concerning Employer and any of its affiliates and its business and
   products, which Employer promulgates for other key employees and executives.

   8.   RETURN OF EMPLOYER PROPERTY: Employee agrees that upon any termination
   of his employment, Employee shall return to Employer within a reasonable time
   not to exceed two (2) weeks, any of Employer's property in his possession or
   under his control, including but not limited to, computer/office automation
   equipment, records and names, addresses, and other information with regard to
   customers or potential customers of Employer with whom Employee has had
   contact or done business.

<PAGE>

   9.   RELATIONSHIP OF PARTIES: The parties intend that this Agreement create
   an employee-employer relationship between the parties.

   10.  NOTICES:  All notices, required and demands and other communications
   hereunder must be in writing and shall be deemed to have been duly given when
   personally delivered or when placed in the United States Mail and forwarded
   by Registered or Certified Mail, Return Receipt Requested, postage prepaid,
   or when forwarded via reputable overnight carrier, addressed to the party to
   whom such notices is being given at the following address:

     As to Employer:          Knowledge Foundations, Inc.
                              7852 Colgate Avenue
                              Westminster, CA  92683
                              Attn: Chairman of the Board

     As to Employee:          Michael W. Dochterman
                              5325 Glickman Avenue
                              Temple City, CA  91780

  Address  Change:  Any  party may change the  address(es)  at  which
  notices to it or him, as the case may be, are to be sent by  giving
  the  notice of such change to the other parties in accordance  with
  this Section 10.

     11.  MISCELLANEOUS:

  11.1 Entire Agreement.  This Agreement and the Addendums hereto contain the
  entire agreement of the parties.  This Agreement may not be altered, amended
  or modified except in writing duly executed by the parties.

  11.2 Assignment.  Neither party, without the written consent of the other
  party, can assign this Agreement.

  11.3 Binding.  This Agreement shall be binding upon and inure to the benefit
  of the parties, their personal representative, successors and assigns.

  11.4 No Waiver.  The waiver of the breach of any covenant or condition herein
  shall in no way operate as a continuing or permanent waiver of the same or
  similar covenant or condition.

  11.5 Severability.  If any provision of this Agreement is held to be invalid
  or unenforceable for any reason, the remaining provisions will continue in

<PAGE>

  full force without being impaired or invalidated in any way.  The parties
  hereto agree to replace any invalid provision with at valid provision which
  most closely approximates the intent of the invalid provision.

  11.6 Interpretation.  This Agreement shall not be construed more strongly
  against any party hereto regardless of which party may have been more
  responsible for the preparation of Agreement.

   11.7 Governing Law  This Agreement shall be governed by and construed under
   the laws of the State of California, without reference to the choice of law
   principles thereof.

   11.8 Arbitration.

  11.8.1    Any controversy, dispute or claim of whatever nature in any way
  arising out of or relating to Employee's employment with Employer, including,
  without limitation (except as expressly excluded below in Section 11.8.2) any
  claims or disputes by Employee against Employer, or by Employer against
  Employee, concerning, arising out of or relating to the separation of that
  employment; any other adverse personnel action by Employer; any federal,
  state or local law, statute or regulation prohibiting employment
  discrimination or harassment; any public policy; any Employer disciplinary
  action; any Employer decision regarding a Employer policy or practice,
  including but not limited to Employee's compensation or other benefits; and
  any other claim for personal, emotional, physical or economic injury
  (individually or collectively, "Covered Claims") shall be resolved, at the
  request of any party to this Agreement, by final and binding arbitration in
  Orange, California before Judicial Arbitration Mediation Services ("JAMS") in
  accordance with JAMS' then-current policies and procedures for arbitration of
  employment disputes.

  11.8.2    The only claims or disputes excluded from binding arbitration under
  this Agreement are the following: any claim by Employee for workers'
  compensation benefits or for benefits under a Employer plan that provides its
  own arbitration procedure; and any claim by either party for equitable
  relief, including but not limited to, a temporary restraining order,
  preliminary injunction or permanent injunction against the other party.

<PAGE>

  11.8.3    This agreement to submit all Covered Claims to binding arbitration
  in no way alters the exclusivity of Employee's remedy under Section 6.5 in
  the event of any termination without Cause or the exclusivity of Employee's
  remedy under Section 6.4 in the event of any termination with Cause, and does
  not require Employer to provide Employee with any type of progressive
  discipline.

  11.9 Titles.  Titles to the sections of this Agreement are solely for the
  convenience of the parties and shall not be used to explain, modify,
  simplify, or aid in the interpretation of the provisions of this Agreement.

  11.10     Counterparts.  This Agreement may be executed in counterparts, each
  of which shall be deemed an original, but together which shall constitute one
  and the same instrument.

<PAGE>

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

Employer:                          Knowledge Foundations, Inc.,
                                   a Delaware corporation

                                   By: /s/ Dr. Richard L. Ballard
                                        (signature)

                                    ___Dr. Richard L. Ballard       _____
                                        (Type/Print name)

                                   ____Chairman of the Board_______
                                        (Office held)

Employee:

                                   By: /s/ Michael W. Dochterman
                                        (signature)

                                   ___Michael W. Dochterman_______
                                        (Type/Print name)

<PAGE>

                                 ADDENDUM A
                    EMPLOYEE INCENTIVE COMPENSATION PLAN

This  Employee Incentive Compensation Agreement (this "Agreement") is entered
into this 1st day of May, 2000, by and between Knowledge Foundations, Inc., a
Delaware   corporation   (the   "Employer"),  and   Michael   W.   Dochterman
("Employee"), as follows:

WHEREAS, it is in the best interest of Employer and Employee to enter into  a
continuing arrangement to cover annual Employee Incentive bonuses, and

WHEREAS, both parties to this Agreement desire to memorialize various aspects
of their relationship:

NOW, THEREFORE, the parties hereby agree as follows:

1.   Addendum.   This Agreement is in an addendum to that certain  Employment
     Agreement effective of even date herewith.

2.   Employee  Incentive  Bonus:     Any bonuses  granted  pursuant  to  this
     Agreement shall be paid annually, within ten (10) days of the completion
     of  the  annual  independent audit of Employer.  Such bonuses  shall  be
     based  upon  Employer's "EBITB" (as defined below)  and  the  cumulative
     scaled  percentage set forth on Schedule 1, attached hereto and  made  a
     part hereof.

3.   Definition  of  EBITB:     The term "EBITB" as used herein,  shall  mean
     Employer's  net operating profits before taxes, interest and  any  other
     executive bonuses are paid.  EBITB shall be determined and certified  by
     the independent public accountants regularly retained by Employer or its
     parent   company  in  accordance  with  generally  accepted   accounting
     principles  and the determination of such independent accountants  shall
     be  final, binding and conclusive on the parties hereto.  In making such
     determination,  all  gains  or losses realized  in  the  sale  or  other
     distribution  of  capital  assets shall be excluded.   Furthermore,  any
     payment  of  dividends  to shareholders and certain  indirect  corporate
     parent expense items shall also be excluded.

     Employer  may, from time to time, change, discontinue, sell or undertake
     any  new operation and may take any and all other steps, which the Board
     of  Directors  of  Employer,  in  its  exclusive  judgment,  shall  deem
     desirable  for Employer.  If any such action taken by Employer,  or  its
     Board  of Directors, adversely affects the EBITB Employee shall have  no
     claim or recourse for or by reason of such action.

<PAGE>

4.   Termination: Termination of employment with Employer, whether  voluntary
     or  involuntary,  shall not affect any bonus earned but  not  paid.   If
     employment  is  terminated, a proportionate share of  any  bonus  earned
     shall be paid to Employee on the next regular bonus payment date.

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

Employer:                          Knowledge Foundations, Inc.,
                                   a Delaware corporation

                                   By: _/s/ Dr. Richard L. Ballard
                                        (signature)

                                    ___Dr. Richard L. Ballard__       ___
                                        (Type/Print name)

                                   ____Chairman of the Board_______
                                        (Office held)

Employee:

                                   By:  /s/ Michael W. Dochterman
                                        (signature)

                                   ___ Michael W. Dochterman_______
                                        (Type/Print name)

<PAGE>

                                 Schedule 1
                                to Addendum A

                    Bonus Plan for Michael W. Dochterman

<TABLE>

       EBITB        Marginal % Bracket          Bonus
      <S>           <C>                  <C>
      $0 - $500,000         3%           Up to $15,000.00
      $501,000 -            4%           $15,000 plus 4% of
         $1,500,000                      EBITB over $501,000
       $1,500,001 -         5%           $55,000 plus 5% of
         $2,500,000                      EBITB over
                                         $1,500,001
       $2,500,001 -         6%           $105,000 plus 6% of
         $3,500,000                      EBITB over
                                         $2,500,001
    Over $3,500,000         7%           $165,000 plus 7% of
                                         EBITB over
                                         $3,500,000

</TABLE>
<PAGE>
                                 ADDENDUM B

                  Job Description for Michael W. Dochterman

Job Title:  President & Chief Executive Officer
Department:    Executive
Reports To:    Board of Directors

SUMMARY

The President serves as Chief Executive Officer ("CEO") and has primary
responsibility for planning, organizing, staffing, and operating the Company
consistent with its core ideology and toward objectives set by the Board of
Directors. The CEO is accountable for all actions, obligations, and
properties of the Company and speaks for the management and staff in all
matters before the Board and the public.

The CEO manages and is accountable for all corporate legal and fiduciary
activities and will provide all plans, applications, reports, and information
required by law or by the Board of Directors.

The CEO articulates the goals and core ideology of the Company, challenges
the Company to fulfill its ambitions, and institutes the organizational
mechanism to grow, sustain, and reward such achievement.

The CEO manages and directs the Company by performing the following duties
personally or through subordinate managers.

ESSENTIAL DUTIES AND RESPONSIBILITIES include the following. Other duties may
be assigned.

Provides and articulates to the Board of Directors the goals, vision,
strategy, policies, budgets, and plans of actions proposed and intended by
KFI's Corporate Management.

Translates corporate goals, plans, and Board directions into policies,
directions, and decisions that guide the daily operation of KFI directly and
through its managers.

Prepares and presents an annual business plan and budget, for the company's
operations, to the Board of Directors.

Determines, directs, and sustains the organization structure, staffing, and
work responsibilities that best meet KFI's business objectives.

Establishes, sustains, and leads by example an organization committed to
excellence, human development, enduring commitment, outstanding service and
achievement.

Recruits, assigns, directs, evaluates, rewards, and judges all others in
their commitments, responsibilities, and performance in advancing KFI's goals
and in creating an environment of relationship, achievement, and
communications conducive to the corporate good.

<PAGE>

Holds the corporation to the highest business, professional, legal, and
community standards in its dealings and contributions to the communities for
which and within which it works.

Speaks for Knowledge Foundations Incorporated in all matters, public or
private. Insures that every official representation of the company, its
objectives, dealings, products, and intent are both effective and consistent
with the policies, directives, and intent of the Company and its Board of
Directors.

Collaborates with the Board and company officers to challenge the
organization with long-term plans and bold initiatives that set clear cut
goals and new requirements for pushing the company forward.

Ensures that all Company activities and operations are carried out in
compliance with local, state, and federal regulations and laws governing
business operations.

ORGANIZATIONAL RELATIONSHIPS
Has  frequent contact with all department heads and key staff members.
Communicates frequently with major customers and vendors.   Represents
Employer in contacts with industry members and community officials and
agencies.

KNOWLEDGE, SKILLS AND EXPERIENCE
Requires  high  level of planning and organizing  skills  plus  strong
leadership  and  interpersonal abilities.  Must  have  excellent  time
management and communication skills.

<PAGE>
                                 ADDENDUM C

                     Approved Non-Knowledge Foundations
                        Business Activity Exemptions

Description of Business Activity             Employee's Signature
Employer's Signature

<PAGE>

                                 ADDENDUM D

                    EMPLOYEE NONDISCLOSURE AND INVENTION
                                     AND
                       COPYRIGHT ASSIGNMENT AGREEMENT

     In  consideration of my employment by KNOWLEDGE FOUNDATIONS, INC. or any
of its subsidiaries and affiliates ("Employer"):

1.    I  will  promptly  disclose  to Employer in  writing  all  discoveries,
concepts  and  ideas, whether patentable or unpatentable, including  but  not
limited  to  processes, designs, innovations, inventions, formulas,  methods,
and  techniques, as well as improvements and know-how related thereto,  made,
conceived,  reduced to practice or learned by me while in Employer's  employ,
either  solely  or  jointly  with  others  during  my  employment  ("Employer
Inventions").   This  Agreement shall not apply to  any  Invention  developed
entirely  on  my  own  time  without  using Employer's  equipment,  supplies,
facilities or trade secret information, except for those items and inventions
that  either: (i) relate, at the time of conception or reduction to  practice
of  the  invention, to Employer's business or any of the products or services
being  developed, manufactured or sold by Employer or which may  conveniently
be  used  in  relation  therewith,  or actual,  or  demonstrably  anticipated
research  or development of Employer, or (ii) result from any work  performed
by me for Employer.

     THIS  AGREEMENT  DOES NOT APPLY TO ANY INVENTION WHICH  QUALIFIES  FULLY
UNDER THE PROVISIONS OF CALIFORNIA LABOR CODE SECTION 2870.

     (a)  I hereby assign to Employer all of my right, title and interest  in
and  to  all  such Employer Inventions and to applications for United  States
and/or  foreign  letters patent and to United States and/or  foreign  letters
patent granted upon such Employer Inventions.

     (b)   I  will acknowledge and deliver promptly to Employer such  written
instruments and do such other acts, such as giving testimony in support of my
inventorship  as may be necessary in the opinion of Employer  to  obtain  and
maintain  United States and/or foreign letters patent and to vest the  entire
right and title thereunto in Employer.

     (c)   I agree that, except for works listed on the attached Schedule  1,
which list the Employer and I may jointly add to from time to time, title  to
any  and  all  copyrights, copyright registrations and copyrightable  subject
matter  which  occurs as a result of my employment by Employer shall  be  the
sole  and exclusive property of Employer, and that such works comprise  works
made  for hire.  I hereby assign, and agree to assign, all of said copyrights
to Employer.

<PAGE>

     (d)   I  have  listed  on the attached Schedule 2, all  unpatented,  but
potentially  patentable, ideas and inventions conceived before my  employment
with Employer and which are exempt from the obligations of this Agreement.

     (e)   In  the  event  Employer is unable to secure my signature  on  any
document  necessary to apply for, prosecute, obtain, or enforce  any  patent,
copyright,  or other right of protection relating to any Employer Inventions,
I  hereby  irrevocably designate and appoint Employer and each  of  its  duly
authorized  officers and agents as my agent and attorney-in-fact to  act  for
and  in my behalf and stead to execute and file any such document and  to  do
all  other  lawfully permitted acts to further the prosecution, issuance  and
enforcement  of patents, copyrights or other rights or protections  with  the
same force and effect as if executed and delivered by me.

2.    As  a direct or indirect consequence of my employment with Employer,  I
have  been  and  will/may  be  exposed to highly sensitive  and  confidential
information  (some  of which I may in the past have, or may  in  the  future,
develop  or  contribute to) not generally, if at all, known or  available  to
persons  or  entities  not  in  some  way  affiliated  with  Employer  and/or
affiliates   ("Confidential  Information").  Confidential  Information  shall
include,  without  limitation, all: (i) information that has  or  could  have
commercial value or other utility in the business in which Employer  and  its
affiliates  are engaged or contemplate engaging in; and (ii) all  information
the unauthorized disclosure of which could be detrimental to the interests of
Employer and/or its affiliates, whether or not such information is identified
as Confidential Information by Employer.  By example, and without limitation,
Confidential   Information  includes:   financial  statements  and   records,
illustrations, prototypes, models, whether patentable or unpatentable,  trade
secrets,  know-how,  concepts and other data, trademarks, copyrights,  design
features, or configurations of any kind, procedures, demonstrations, methods,
processes,    uses,   manufacturing   information,   techniques,    formulas,
improvements,  research and development data, pamphlets,  books,  reports  or
other documents, inspection procedures, apparatuses, compounds, compositions,
combinations,   programs,   software  and  works  of   authorships,   whether
discovered,  conceived, developed, made or produced, research and development
projects; strategic alliances; confidential information of other entities  or
companies with whom Employer or its affiliates may enter into joint ventures,
strategic  alliances  or  other  business  relationships;  the  identity   of
consultants  and  assistants; future advertising and  marketing  methods  and
plans;  detailed sales and pricing information and formulas; budgets; product
performance;  sources  of  products; production and distribution  methods  or
procedures;  business methods, procedures and plans; licensing  arrangements;
customer  product  preferences and requirements; and, additional  information
relating  to  financial,  marketing, technical,  developmental  and/or  other
business  aspects,  of Employer and/or Employer's affiliates.   I  agree  and
understand that any and all of the foregoing is considered by Employer to  be
of   a   highly  confidential  nature  and  as  a  trade  secret.   The  term
"Confidential Information" shall not include any information obtained  by  me
through  (i)  industry  publications which are  disseminated  to  or  can  be
acquired  by  businesses  in  the industry, (ii)  Dodge  Reports  and  Dun  &
Bradstreet  and  any  similar  information services,  (iii)  any  Chamber  of

<PAGE>

Commerce   or   other  trade  association  reports,  or  (iv)  reports   from
governmental agencies.  In furtherance of the foregoing, I agree as follows:

     (a)   To  refrain  from  reproducing or making any summary,  extract  or
abridgement  of, other than in the regular course of business,  or  removing,
any  business record, document, schematic, drawing, instrument, component  or
any  other  item  dealing  with the Confidential  Information  without  prior
written consent therefor.

     (b)   To  refrain  from  discussing with any other  person  or  persons,
whether or not said persons are in the employ of Employer, any aspect of  the
Confidential  Information,  except as said  discussions  directly  relate  to
completion  of  the  particular  task  at  hand  and/or  in  compliance  with
instructions to do so.

     (c)    To  accept  and  maintain  the  Confidential  Information  on   a
confidential  basis  and to protect and safeguard same  against  unauthorized
publication  or  disclosure.   I will not be justified  in  disregarding  the
obligation  of  confidentiality  by selecting  individual  pieces  of  public
information  and  fitting  them together by use of integrated  disclosure  to
contend that such Confidential Information is in the public domain.

     (d)   Other than in furtherance of my employment with Employer,  not  to
use,  directly  or  indirectly,  for my  own  or  for  my  future  employer's
advantage,  any  Confidential Information learned during my  employment  with
Employer and which is not made publicly known (through no fault of mine).

     (e)   Not to disclose, publicize, reveal or make available, directly  or
indirectly,  any  of  the Confidential Information to any  firm,  person,  or
entity  whatsoever, except for a disclosure which is required, if at all,  by
statute,  order  of  court or otherwise by law, and  then  only  after  first
advising  Employer of such demand with reasonably sufficient advance  notice,
if  possible,  so as to afford Employer an opportunity to seek  a  protective
order.

     (f)   Upon  termination of my employment, to turn over to  a  designated
individual  employed by Employer all property then in my possession,  custody
or  immediate control belonging to Employer.  I will not retain any original,
copy,  summary  or  abridgement of any document which  contains  Confidential
Information,   including  correspondence,  memoranda,   reports,   calendars,
contracts, notebooks, drawings, photos or other documents relating in any way
to  the affairs of Employer or to the affairs of its affiliated companies and
which are entrusted to me or developed by me at any time during my employment
with  Employer, all of which, will be delivered to Employer immediately  upon
termination of my employment.

     (g)   Not  to  interfere  with  the relationship  between  and/or  among
Employer and its consultants, agents, employees or others working on research
and  development  projects  or  providing services  or  products  to  or  for
Employer,  nor disclose the identity of said individuals and/or  entities  so
long as not otherwise generally known in the trade.

<PAGE>

3.     Notwithstanding  the  definition  of  "Confidential  Information,"   I
understand  that I shall not be liable for disclosure to any third  party  or
use  of any Confidential Information which: (i) at the time of disclosure  or
thereafter becomes a part of the public domain through no act or omission  by
me;  (ii) has been independently generated, discovered or perfected by me and
is  listed  on  the attached Schedule 2; (iii) is subsequently  and  lawfully
disclosed  to  me  by a third party, which third party did  not  acquire  the
information under an obligation of confidentiality from or through  Employer;
or (iv) is required to be disclosed as a matter of law.

4.    I  acknowledge  and  agree that the Confidential Information,  and  the
strict confidentiality thereof, materially affects the successful conduct  of
Employer's business and its goodwill; therefore, any breach of the  terms  of
this  Agreement  by  me  is  a material breach thereof,  and  may  result  in
termination  of  my  employment, the imposition  of  injunctive  relief,  and
liability  for  damages  sustained  by  Employer.   In  furtherance  of   the
foregoing, I agree to pay all costs, expenses and attorneys' fees as incurred
by Employer in the enforcement of this Agreement.

5.    No  modification or waiver of this Agreement or any of  its  provisions
shall be binding upon Employer unless made in writing and signed on behalf of
Employer  by  one  of  its  officers (other  than  me).   The  invalidity  or
unenforceability  of  any provision of this Agreement shall  not  affect  the
validity  or  enforceability  of  any other provision  and  such  invalid  or
unenforceable provision shall be reformed to the extent possible in order  to
give its intended effect and/or meaning.  This Agreement shall be governed by
and construed in accordance with the laws of the State of California.

6.    This  Agreement  together with my Employment  Agreement  with  Employer
supersedes any and all agreements between me and Employer with respect to the
subject matter hereof.

7.    In  the  event of any controversy, dispute or claim arising out  of  or
relating to this Agreement, the Employer and I agree as follows:

      (a)   I  acknowledge and agree that any breach by me of this Agreement,
including but not limited to, disclosure of any information that, at  law  or
in  good  conscience or equity, should remain confidential, may give rise  to
irreparable  injury to Employer which will not be adequately  compensable  by
damages.  Accordingly, Employer may seek and obtain injunctive relief against
the  breach  or  threatened breach of any of the foregoing  undertakings,  in
addition  to  all  other legal remedies, if any, that may  be  available.   I
acknowledge  and  expressly  agree that the covenants  contained  herein  are
necessary for the protection of the legitimate business interests of Employer
and  its  affiliates and are reasonable in scope and content,  and  I  hereby
waive,  to  the  maximum extent permitted by applicable law, any  requirement
that  Employer  or any other person post a bond in order to obtain  equitable
relief.

      (b)   Except  as otherwise set forth in subparagraph 7(a), all  claims,
disputes  and other matters in controversy (collectively, "Dispute") arising,
directly  or  indirectly out of or related to this Agreement, or  the  breach
thereof,  whether contractual or noncontractual, and whether during the  term

<PAGE>

or  after  the  termination of this Agreement, shall be resolved  exclusively
according  to  the arbitration provisions of Section 11.8 of  the  Employment
Agreement between me and Employer.

8.   The covenants and agreements undertaken herein shall survive termination
of my employment.

     I  have  read  and fully understand the foregoing, and  by  affixing  my
signature below, I agree to be fully bound hereby.

Dated: ______________________

Employee:

                              ----------------------------------
                              Print Name:  Michael W. Dochterman

<PAGE>

                                 Schedule 1
                                to Addendum D

               Copyrighted And Copyrightable Work Exempt From
                  This Employee Nondisclosure And Invention
                     And Copyright Assignment Agreement

Description of Work           Employee's Signature     Employer's Signature

<PAGE>

                                 Schedule 2
                                to Addendum D

                    Unpatented But Potentially Patentable
                            Ideas And Inventions
                 Conceived Prior To Employment With Employer

Description of Ideas & Inventions            Employee's Signature
Employer's Signature

<PAGE>

                                 ADDENDUM E

                          STOCK PURCHASE AGREEMENT

<PAGE>

                      WRITTEN NOTIFICATION TO EMPLOYEE

     In  accordance with California Labor Code Section 2872, you  are  hereby
notified  that  your  Employee  Nondisclosure  and  Invention  and  Copyright
Assignment Agreement does not require you to assign to Employer any invention
which  qualifies fully under the provisions of California Labor Code  Section
2870.

     You are hereby provided a copy of California Labor Code Section 2870.

     I hereby acknowledge receipt of this written notification.

Dated: _______________, 2000

                              Print Name:    Michael W. Dochterman ___

<PAGE>

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