Document:

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                              EMPLOYMENT AGREEMENT
                              --------------------

     EMPLOYMENT AGREEMENT, dated as of December 31, 1999, by and between THE
OFFICIAL INFORMATION COMPANY, a Delaware corporation ("Employer"), and WAYNE
GREGUS ("Executive"):

                                   Background
                                   ----------

     Employer wishes to retain Executive and Executive wishes to be employed by
Employer on the terms and conditions set forth in this Agreement.

     In consideration of the mutual covenants and agreements set forth herein,
the parties hereto, intending to be legally bound hereby, agree as follows:

                                    ARTICLE I

                        TERM OF AGREEMENT AND EMPLOYMENT

     Section 1.01 Commencing on the date of this Agreement and for a period
ending on December 31, 2002, subject to earlier termination as provided in
Article VI hereof, Employer hereby employs Executive and Executive hereby
accepts employment with Employer as the Director of Business Development of
Employer and each of Employer's subsidiaries (the "Businesses"). Subject to the
direction and ultimate authority of the President and Chief Executive Officer of
Employer, Executive shall be responsible for helping the President and Chief
Executive Officer of Employer to grow its revenues and EBITDA at least 25% per
year and, specifically, for those responsibilities set forth on Exhibit A.
Employer and Employer's subsidiaries are collectively referred to below as the
"Related Entities."

     Section 1.02 The term of this Agreement shall continue from year to year
after December 31, 2002, unless terminated by written notice, given by either
party to the other, on or before the date which is one year prior to the
expiration date of the term hereof or prior to the expiration of any extended
term.

                                   ARTICLE II
                                   ----------

                       DUTIES AND OBLIGATIONS OF EXECUTIVE
                       -----------------------------------

     Section 2.01 At all times during the performance of this Agreement,
Executive shall adhere to each Related Entity's policies, rules and regulations
governing the conduct of its employees, now in effect, or as subsequently
adopted or amended.

     Section 2.02 Executive shall devote substantially all of his business time,
ability and attention to the operations of the Businesses during the term of
this Agreement and shall not,

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whether directly or indirectly, render any services to any other person or
organization, whether for compensation or otherwise, except with Employer's
prior written consent. Notwithstanding the foregoing, Executive shall be
entitled to devote a limited amount of time to G&G Consulting, provided that
such activities do not interfere with Executive's obligations hereunder.

                                   ARTICLE III
                                   -----------

                                  COMPENSATION

     Section 3.01 As full compensation for his services hereunder (including the
services to Employer's subsidiaries), Employer shall pay Executive an annual
salary of One Hundred Sixty Five Thousand Dollars ($165,000), payable in equal
semi-monthly installments (the "Base Salary"). On each December 31 (beginning
December 31, 2000), the Base Salary shall be increased by an amount equal to the
percentage increase during the previous calendar year in the Consumer Price
Index, All Items, in the New York, New York metropolitan area.

     Section 3.02 In addition to the Base Salary, for 2000 and each subsequent
calendar year during the term of this Agreement, Employer shall pay Executive a
bonus (the "Bonus") in an amount equal to 3.33% of his Base Salary as of the
beginning of that year for each 1% (rounded to the nearest whole percentage) by
which EBITDA for that year exceeds the prior year's EBITDA by 15% or more,
provided that the maximum Bonus the Executive shall be entitled to receive with
respect to any year shall be 50% of his Base Salary as of the end of that year.
As used in this Agreement, the term "EBITDA" means the consolidated earnings of
the Related Entities before interest, taxes, depreciation and amortization,
excluding extraordinary or unusual nonrecurring items of income and expense,
determined in accordance with generally accepted accounting principles by
Employer's independent accountants. If in any year any of the Related Entities
acquires or disposes of any material business, the Bonus payable with respect to
such year shall be adjusted equitably to account for such acquisition or
disposition. The Bonus for any year shall be paid not later than 30 days after
delivery of Employer's audited financial statements for that year.
Notwithstanding the foregoing, the Board of Directors of the Company will use
its absolute discretion in determining the final amount of bonus payable after
taking into account Executive's contribution to the Company during such year.

     Section 3.03 Contemporaneously with the execution of this Agreement,
Employer and Executive are executing an agreement in the form attached as
Exhibit B pursuant to which Executive is being granted 3,000 Equity Appreciation
Units under the Employer's Corporate Executive Equity Appreciation Plan.

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                                   ARTICLE IV
                                   ----------

                                    BENEFITS

     Section 4.01 Executive shall be entitled to participate in all benefit
plans generally available to employees of Employer and, subject to Section 6, to
receive vacation, sick leave and leaves of absence in accordance with general
employee policies.

                                    ARTICLE V
                                    ---------

                                BUSINESS EXPENSES

     Section 5.01 Employer shall reimburse Executive, in accordance with
Employer's policies, for all reasonable out-of-pocket business expenses incurred
by Executive in the performance of his duties hereunder. Executive shall furnish
to Employer documentary evidence of each such expense in the form required to
comply with Employer's policies and all applicable federal and state tax
statutes and regulations issued thereunder for the substantiation of such
expense as a tax deduction.

                                   ARTICLE VI
                                   ----------

                            TERMINATION OF EMPLOYMENT

     Section 6.01 Termination with Cause. Employer may terminate Executive's
employment at any time for Cause by giving written notice of such termination to
Executive. For purposes of this Agreement, cause shall mean:

     (a) The conviction of Executive of a felony;

     (b) Fraud, embezzlement or other misappropriation by Executive of funds or
property of Employer or any of its affiliates;

     (c) A breach of any of Executive's fiduciary duties as an employee of
Employer;

     (d) Any gross misconduct of Executive which is injurious in any material
respect to Employer or any of its affiliates; or

     (e) Executive's failure to perform in any material respect his obligations
under this Agreement.

     If Employer terminates Executive's employment for Cause under this Section
6.01, Executive shall cease receiving his Base Salary as of the date of such
termination, shall not be entitled to any severance pay, and shall cease as of
the date of such termination to participate in the benefit plans generally
available to employees of Employer in which Executive

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is then participating. Employer will assure that Executive receives all benefits
required by law, e.g., COBRA, but Executive will receive no other benefit
hereunder.

     Section 6.02 Termination Resulting from Death or Disability. If, as the
result of any physical or mental disability, Executive shall fail or be unable
to perform in a satisfactory manner a material portion of his duties and
obligations hereunder for a period of 180 consecutive days or for a total of 180
days in any twelve (12) month period, Employer may, upon thirty (30) days prior
written notice to Executive, terminate Executive's employment hereunder. Any
dispute as to a disability shall be resolved by a medical doctor selected
jointly by Employer and Executive, or, failing agreement, by the President of
the American Medical Association.

     The death of Executive shall terminate this Agreement and his employment
hereunder, effective at the time of death.

     In the event of termination resulting from disability or death, Executive
or his estate, as the case may be, shall receive Executive's Base Salary through
the date of termination and a pro-rated portion (based on the number of days in
the year in which Executive was employed) of the Bonus, if any, calculated for
the portion of such calendar year through the last day of the month preceding
the month in which Executive's employment terminated. Executive's participation
in the benefits plans generally available to employees of Employer shall cease
as of the date of such termination, with the exception of a disability insurance
plan, if any.

     Section 6.03 Termination upon a Change of Control. This Agreement and
Executive's employment hereunder shall be terminated automatically effective
upon a Change of Control. In the event of termination resulting from a Change of
Control, Executive shall receive Executive's Base Salary through the date of
termination and a pro-rated portion (based on the number of days in the year in
which Executive was employed) of the Bonus, if any, calculated for the portion
of such calendar year through the last day of the month preceding the month in
which Executive's employment terminated. Executive's participation in the
benefits plans generally available to employees of Employer shall cease as of
the date of such termination. "Change-in-Control" means a sale of a common
equity interest of 50% or more in Employer to persons who are not affiliates of
VS&A Communications Partners II, L.P. ("VS&A"), or a merger of Employer with, or
a sale of all or substantially all of the assets of the Employer and its
subsidiaries to, any other entity in which VS&A does not in the aggregate own at
least 50% of the equity interests; provided, however, that a Change-in-Control
shall not be deemed to have occurred if, following a sale of common equity
interests of Employer pursuant to a public offering, VS&A and its affiliates
continue to have a controlling interest in Employer, even though such interest
may constitute less than 50% of the equity interests of Employer.

     Section 6.04 Termination for Other Reasons. Employer may terminate this
Agreement and Executive's employment for any reason at any time by giving
written notice of such termination to Executive. If Executive's employment is
terminated by Employer pursuant to this provision (i.e., other than for Cause,
death or disability), Executive shall cease receiving his Base Salary and to
participate in Employer's benefit plans as of the date of such termination. If,
however, Employer shall promptly receive from Executive a release of Employer
and its

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affiliates, in form and substance satisfactory to Employer, from any and all
claims which Executive may have in respect of such termination or under this
Agreement, (a) Employer shall pay Executive severance pay in an amount equal to
Executive's Base Salary (calculated at the rate of Executive's annual salary at
the time of such termination) through the earlier of (i) the then current term
of this Agreement and (ii) two (2) years after the date of such termination (the
"Severance Period") and a pro-rated portion (based on the number of days in the
year in which Executive was employed) of the Bonus, if any, calculated for the
portion of such calendar year through the last day of the month preceding the
month in which Executive's employment terminated, and (b) Employer shall
maintain in full force and effect Executive's continued participation in the
benefit plans generally available to employees of Employer in which Executive
was participating immediately prior to such termination until the earlier of (i)
one (1) year after the date of such termination and (ii) Executive's
commencement of full-time employment with a new employer. At the end of the
period of participation in such benefit plans, Employer will assure that
Executive receives all additional benefits required by law, e.g., COBRA. The
payment of the severance pay referred to in clause (a) above shall be made as
follows: (i) the amount calculated based upon Executive's Base Salary shall be
payable during the Severance Period in accordance with the same schedule of
payments provided for Executive's Base Salary pursuant to Section 3.01 and (ii)
the amount calculated based upon the pro-rated bonus shall be payable in
accordance with Section 3.02.

     Section 6.05 Breach of Agreement by Employer. In the event that (i)
Employer shall breach in any material respect any of its obligations under this
Agreement, (ii) there is a material diminution of Employee's duties as set forth
in this Agreement or (iii) there shall be a relocation of the primary business
offices of Employer outside of the New York City metropolitan area., upon
receipt from Executive of a release of Employer and its affiliates, in form and
substance satisfactory to Employer, from any and all claims which Executive may
have in respect of such termination or under this Agreement, (a) Employer shall
pay Executive severance pay in an amount equal to Executive's Base Salary
(calculated at the rate of Executive's annual salary at the time of such
termination) through the Severance Period and a pro-rated portion (based on the
number of days in the year in which Executive was employed) of the Bonus, if
any, calculated for the portion of such calendar year through the last day of
the month preceding the month in which Executive's employment terminated, and
(b) Employer shall maintain in full force and effect Executive's continued
participation in the benefit plans generally available to employees of Employer
in which Executive was participating immediately prior to such termination until
the earlier of (i) one (1) year after the date of such termination and (ii)
Executive's commencement of full-time employment with a new employer. At the end
of the period of participation in such benefit plans, Employer will assure that
Executive receives all additional benefits required by law, e.g., COBRA. The
payment of the severance pay referred to in clause (a) above shall be made as
follows: (i) the amount calculated based upon Executive's Base Salary shall be
payable during the Severance Period in accordance with the same schedule of
payments provided for Executive's Base Salary pursuant to Section 3.01 and (ii)
the amount calculated based upon the pro-rated bonus shall be payable in
accordance with Section 3.02.

     Section 6.06 Mitigation. Executive agrees to use his best efforts to
mitigate any severance pay hereunder by seeking other suitable employment or
consultancy arrangements. If

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during the Severance Period the Executive accepts other employment or
consultancy, the portion of the severance pay awarded to the Executive hereunder
that is based upon Executive's Base Salary shall be reduced by the amount of any
compensation payable as a result of such other employment or consultancy.

                                   ARTICLE VII
                                   -----------

                        NON-COMPETITION, CONFIDENTIALITY

                         AND NON-SOLICITATION COVENANTS

     Section 7.01 Executive acknowledges that Executive's employment hereunder
will provide Executive with access on a continual basis to confidential and
proprietary information concerning each of the Businesses, which is not readily
available to the public; and that Employer would not enter into this Agreement
but for the covenants (the "Restrictive Covenants") contained in this Article
VII. Accordingly, Executive agrees that:

     (a) During the term of employment hereunder and, for a period of one (1)
year thereafter (the "Restricted Period"), Executive shall not, directly or
indirectly, (i) engage in any business that is competitive with the Businesses
for his own account; or (ii) render any services which constitute engaging in
any business that is competitive with the Businesses in any capacity to any
person (other than with the consent or at the direction of Employer); nor shall
Executive own an equity interest in any person which is engaged in any business
that is competitive with the Businesses, provided, however, that Executive may
own, directly or indirectly, solely as a passive investment, securities of any
person which are traded on any national securities exchange or NASDAQ, if
Executive is not a controlling person of, or a member of a group which controls,
such person, and does not, directly or indirectly, own five percent (5%) or more
of any class of securities of such person.

     (b) Executive shall forever maintain in strictest confidence all
information relating to each of the Businesses and to each of the Related
Entities, which is known or becomes known to Executive, including, without
limitation, trade secrets, know-how, financial statements and data, contracts
(whether oral or written), customer and advertiser lists, rate schedules,
pricing policies, marketing plans and strategies, and business acquisition plans
(collectively, the "Confidential Information"), and shall not, except in
connection with the business affairs of Employer and its affiliates, disclose
any Confidential Information to any person, other than with the express written
consent of Employer. Confidential Information shall not include information
which Executive can demonstrate (A) has become generally available to the public
other than as a result of a disclosure by Executive, (B) was available to
Executive on a non-confidential basis prior to its disclosure to Executive by
Employer, or (C) has become available to Executive on a non-confidential basis
from a source other than Employer, provided that such source is not known by
Executive after reasonable inquiry to be bound by a confidentiality agreement
with Employer or otherwise prohibited from transmitting the information to
Executive by a legally binding obligation.

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     Notwithstanding anything in this Agreement to the contrary, in the event
that a request or demand is made upon Executive, by written interrogatory,
request for information or documents, subpoena, court order, civil investigative
demand or other legal process, to disclose any Confidential Information, which
disclosure is not otherwise permitted hereunder, Executive will provide Employee
with prompt notice of any such request or demand so that Employer may seek an
appropriate protective order or waive compliance with the provisions of this
Agreement. Executive will not oppose action by, and will cooperate with,
Employer in any effort to obtain an appropriate protective order.

     All memoranda, notes, lists, records and other documents (and all copies
thereof) constituting Confidential Information heretofore or hereafter made or
compiled by Executive or made available to Executive concerning any of the
Businesses shall be the property of the respective Related Entities, shall be
kept confidential in accordance with the provisions of this Section 7.01(b), and
shall be delivered to the respective Related Entities promptly upon termination
of this Agreement or at any earlier or later time upon the request of Employer.

     (c) During the Restricted Period, Executive shall not, directly or
indirectly, solicit or encourage any current employee, officer or director of
any of the Related Entities to leave the employment of his employer, or hire any
current or former employee, officer or director of, any of the Related Entities.

     (d) During the Restricted Period, Executive shall not, directly or
indirectly, solicit or encourage any person who is a customer or advertiser of
any of the Related Entities, or the affiliates or associates thereof, to
discontinue such person's business relationship with any of the Related
Entities.

     Section 7.02 Executive acknowledges and agrees that (i) Executive has had
an opportunity to seek advice of counsel in connection with this Agreement; (ii)
the Restrictive Covenants are reasonable in scope and in all other respects;
(iii) any violation of the Restrictive Covenants will result in irreparable
injury to the Related Entities; (iv) money damages would be an inadequate remedy
at law for the Related Entities in the event of a breach of any of the
Restrictive Covenants by Executive; and (v) specific performance in the form of
injunctive relief would be an adequate remedy for the Related Entities.

     Employer and Executive hereby submit to the jurisdiction of the Courts of
the State of New York to enforce the Restrictive Covenants and agree that if
Executive breaches or threatens to breach a Restrictive Covenant, Employer (or
any of the other Related Entities) shall be entitled, in addition to all other
remedies, to an injunction restraining any such breach, without any bond or
other security being required and without the necessity of showing actual
damages.

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                                  ARTICLE VIII
                                  ------------

                                   ARBITRATION

     Section 8.01 Except as otherwise set forth in Section 7.02 above, Employer
and Executive each waives any right each may have to a civil lawsuit and trial
by jury in connection with any dispute between them arising out of, concerning
or connected with this Agreement and each agrees that, upon the written request
of the other party, any such dispute shall be submitted to arbitration.
Arbitration shall take place in the City of New York, or such other place as the
parties may agree, and shall be governed by the rules of the American
Arbitration Association.

     Section 8.02 Employer and Executive shall select one (1) arbitrator to hear
and determine the dispute from a list of five (5) candidates provided by the
American Arbitration Association.

     Section 8.03 The arbitrator's award shall be final and binding on the
parties and the arbitrator may invoke any remedy available in equity or at law,
including, without limitation, injunctions and restraining orders. The parties
agree to the jurisdiction of the Courts of the State of New York for
confirmation and enforcement of the arbitrator's award.

                                   ARTICLE IX
                                   ----------

                               GENERAL PROVISIONS

     Section 9.01 In the event of arbitration or an action at law or in equity
to enforce or interpret the terms of this Agreement, the prevailing party shall
be entitled to reasonable attorneys' fees and costs. The arbitrator's fees and
costs incurred shall be borne by the losing party.

     Section 9.02 This Agreement supersedes any and all other agreements,
whether oral or in writing, between the parties hereto with respect to the
subject matter hereof. Each party acknowledges that no representations,
inducements, promises or agreements, whether oral or in writing, have been made
by any party, or on behalf of any party, which are not embodied herein. No
agreement, promise or statement not contained in this Agreement shall be valid
and binding, unless agreed to in writing and signed by the parties sought to be
bound thereby.

     Section 9.03 Any notice or other communication required or permitted
hereunder shall be in writing and shall be delivered personally, faxed, or sent
by courier service (with next day delivery requested) or the U.S. Postal Service
by express mail (with next day delivery requested). Any such notice or
communication shall be deemed given and effective, in the case of personal
delivery, upon receipt by the other party, in the case of faxed, upon
transmission of the fax, in the case of a courier service or the U.S. Postal
Service, upon the next business day, after dispatch of the notice or
communication. Any such notice or communication shall be addressed as follows:

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     If to Employer:

     The Official Information Company
     250 West 57th Street, Suite 2421
     New York, New York  10019
     Attn:  President

     With a copy to:

     VS&A Communications Partners II, L.P.
     350 Park Avenue
     New York, New York  10022
     Attn:  President

     If to Executive:

     Wayne Gregus
     1 Locust Court
     Freehold, NJ 07728

Any person named above may designate another address or fax number by giving
notice in accordance with this Section to the other persons named above.

     Section 9.04 This Agreement shall be governed by, and construed in
accordance with, the law of the State of New York, without regard to principles
of conflicts of law.

     Section 9.05 No breach of any provision hereof may be waived unless in
writing. Waiver of any breach of any provision hereof shall not be deemed a
waiver of any other breach of the same or any other provision hereof. This
Agreement may be amended only by a written agreement, executed by the parties
hereto.

     Section 9.06 In the event any one or more of the provisions contained in
this Agreement shall be held by an arbitrator or court of competent jurisdiction
to be invalid or unenforceable in any respect, the validity and enforceability
of the remaining provisions contained herein shall not in any way be affected or
impaired thereby and the parties will attempt to agree upon a valid and
enforceable provision which shall be a reasonable substitute for such invalid
and unenforceable provision in light of the tenor of this Agreement, and, upon
so agreeing, shall incorporate such substitute provision in this Agreement.

     Section 9.07 This Agreement may be executed in any number of counterparts
and each such duplicate counterpart shall constitute an original, any one of
which may be introduced in evidence or used for any other purpose without the
production of its duplicate counterpart. Moreover, notwithstanding that any of
the parties did not execute the same counterpart, each counterpart shall be
deemed for all purposes to be an original, and all such counterparts shall
constitute one and the same instrument, binding on all the parties hereto.

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     Section 9.08 Both parties hereto acknowledge that they have had the advice
of counsel before entering into this Agreement, have fully read the Agreement
and understand the meaning and import of all the terms hereof.

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be
executed and delivered as of the day and year first above written.

                                        THE OFFICIAL INFORMATION COMPANY

                                        By:
                                           -------------------------------

                                        ----------------------------------
                                        Wayne Gregus

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                                                                       EXHIBIT A
                                                                       ---------

1.   Helping the President to grow revenues and EBITDA at least 25% per year.
2.   Identifying suitable acquisition opportunities.
3.   Evaluating acquisition opportunities for fit and potential financial
     return.
4.   Preparation of acquisition proposals.
5.   Coordinating all due diligence activities.
6.   Assisting in the completion process for acquisitions.
7.   Assisting the business units in the integration of acquisitions.
8.   Identifying major development projects.
9.   Evaluating major development opportunities for fit and potential financial
     return including undertaking or commissioning the necessary market
     research.
10.  Preparation of the development proposal.
11.  Assisting the project manager with the implementation of the major
     development project.
12.  Post acquisition and major development project evaluation.
13.  Act as an additional managerial resource for Units on a project or
     assignment basis.<PAGE>

                              IAT MULTIMEDIA, INC.
                             1999 STOCK OPTION PLAN

1. Purpose.

   The purpose of this plan (the "Plan") is to secure for IAT Multimedia,
Inc. (the "Company") and its shareholders the benefits arising from capital
stock ownership by employees, officers and directors of, and consultants or
advisors to, the Company who are expected to contribute to the Company's
future growth and success. Except where the context otherwise requires, the
term "Company" shall include all present and future parent and subsidiary
corporations of the Company as defined, respectively, in Sections 424(e) and
424(f) of the Internal Revenue Code of 1986, as amended or replaced from time
to time (the "Code"). Those provisions of the Plan which make express
reference to Section 422 shall apply only to Incentive Stock Options (as that
term is defined in the Plan).

2. Type of Options and Administration.

   (a) Types of Options. Options granted pursuant to the Plan shall be
authorized by action of the Board of Directors of the Company (or a Committee
designated by the Board of Directors) and may be either incentive stock
options ("Incentive Stock Options") meeting the requirements of Section 422
of the Code or non-statutory options which are not intended to meet the
requirements of Section 422 of the Code.

   (b) Administration. The Plan will be administered by a committee (the
"Committee") appointed by the Board of Directors of the Company, which
Committee can include all of the members of the Board of Directors, whose
construction and interpretation of the terms and provisions of the Plan shall
be final and conclusive. The delegation of powers to the Committee shall be
consistent with applicable laws or regulations (including, without
limitation, applicable state law and Rule 16b-3 promulgated under the
Securities Exchange Act of 1934 (the "Exchange Act"), or any successor rule
("Rule 16b-3")). The Committee may in its sole discretion grant options to
purchase shares of the Company's Common Stock, $.01 par value per share
("Common Stock") and issue shares upon exercise of such options as provided
in the Plan. The Committee shall have authority, subject to the express
provisions of the Plan, to construe the respective option agreements and the
Plan, to prescribe, amend and rescind rules and regulations relating to the
Plan, to determine the terms and provisions of the respective option
agreements, which need not be identical, and to make all other determinations
in the judgment of the Committee necessary or desirable for the
administration of the Plan. The Committee may correct any defect or supply
any omission or reconcile any inconsistency in the Plan or in any option
agreement in the manner and to the extent it shall deem expedient to carry
the Plan into effect and it shall be the sole and final judge of such
expediency. No director or person acting pursuant to authority delegated by
the Board of Directors shall be liable for any action or determination under
the Plan made in good faith. Subject to adjustment as provided in Section 15
below, the aggregate number of shares of Common Stock that may be subject to
Options granted to any person in a calendar year shall not exceed 35% of the
maximum number of shares which may be issued and sold under the Plan, as set
forth in Section 4 hereof, as such section may be amended from time to time.

   (c) Applicability of Rule 16b-3. Those provisions of the Plan which make
express reference to Rule 16b-3 shall apply to the Company only at such time
as the Company's Common Stock is registered under the Exchange Act, subject
to the last sentence of Section 3(b), and then only to such persons as are
required to file reports under Section 16(a) of the Exchange Act (a
"Reporting Person").

3. Eligibility.

   (a) General. Options may be granted to persons who are, at the time of
grant, employees, officers or directors of, or consultants or advisors to,
the Company or any parent or subsidiary corporation of the Company as
defined, respectively, in Sections 424(e) and 424(f) of the Code
("Participants") provided,

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<PAGE>

that Incentive Stock Options may only be granted to individuals who are
employees of the Company (within the meaning of Section 3401(c) of the Code).
A person who has been granted an option may, if he or she is otherwise
eligible, be granted additional options if the Committee shall so determine.

   (b) Grant of Options to Reporting Persons. The selection of a director or
an officer who is a Reporting Person (as the terms "director" and "officer"
are defined for purposes of Rule 16b-3) as a recipient of an option, the
timing of the option grant, the exercise price of the option and the number
of shares subject to the option shall be determined either (i) by the Board
of Directors or (ii) by a committee consisting of two or more directors
having full authority to act in the matter, each of whom shall be an "Outside
Director" as defined by Rule 1.162-27 of the Code.

4. Stock Subject to Plan.

   The stock subject to options granted under the Plan shall be shares of
authorized but unissued or reacquired Common Stock. Subject to adjustment as
provided in Section 15 below, the maximum number of shares of Common Stock of
the Company which may be issued and sold under the Plan is 2,500,000 shares.
If an option granted under the Plan shall expire, terminate or is cancelled
for any reason without having been exercised in full, the unpurchased shares
subject to such option shall again be available for subsequent option grants
under the Plan.

5. Forms of Option Agreements.

   As a condition to the grant of an option under the Plan, each recipient of
an option shall execute an option agreement in such form not inconsistent
with the Plan as may be approved by the Committee. Such option agreements may
differ among recipients and may contain all terms and conditions as the
Committee considers advisable, including, but not limited to, non-compete,
non-solicitation and confidentiality covenant, representations and warranties
of the Participant and provisions to ensure compliance with all applicable
laws, regulations and rules.

6. Purchase Price.

   (a) General. The purchase price per share of stock deliverable upon the
exercise of an option shall be determined by the Committee at the time of
grant of such option; provided, however, that in the case of an Incentive
Stock Option, the exercise price shall not be less than 100% of the Fair
Market Value (as hereinafter defined) of such stock, at the time of grant of
such option, or less than 110% of such Fair Market Value in the case of
options described in Section 11(b). "Fair Market Value" of a share of Common
Stock of the Company as of a specified date for the purposes of the Plan
shall mean the closing price of a share of the Common Stock on the principal
securities exchange (including the Nasdaq National Market) on which such
shares are traded on the day immediately preceding the date as of which Fair
Market Value is being determined, or on the next preceding date on which such
shares are traded if no shares were traded on such immediately preceding day,
or if the shares are not traded on a securities exchange, Fair Market Value
shall be deemed to be the average of the high bid and low asked prices of the
shares in the over-the-counter market on the day immediately preceding the
date as of which Fair Market Value is being determined or on the next
preceding date on which such high bid and low asked prices were recorded. If
the shares are not publicly traded, Fair Market Value of a share of Common
Stock (including, in the case of any repurchase of shares, any distributions
with respect thereto which would be repurchased with the shares) shall be
determined in good faith by the Committee.

   (b) Payment of Purchase Price. Options granted under the Plan may provide
for the payment of the exercise price by delivery of cash or a check to the
order of the Company in an amount equal to the exercise price of such
options, or by any other means which the Committee determines are consistent
with the purpose of the Plan and with applicable laws and regulations
(including, without limitation, the provisions of Rule 16b-3 and Regulation T
promulgated by the Federal Reserve Board).

7. Option Period.

   Subject to earlier termination as provided in the Plan, each option and
all rights thereunder shall expire on such date as determined by the
Committee and set forth in the applicable option agreement, provided, that
such date shall not be later than (10) ten years after the date on which the
option is granted.

                                       2
<PAGE>

8. Exercise of Options.

   Each option granted under the Plan shall be exercisable either in full or
in installments at such time or times and during such period as shall be set
forth in the option agreement evidencing such option, subject to the
provisions of the Plan. Subject to the requirements in the immediately
preceding sentence, if an option is not at the time of grant immediately
exercisable, the Committee may (i) in the agreement evidencing such option,
provide for the acceleration of the exercise date or dates of the subject
option upon the occurrence of specified events, and/or (ii) at any time prior
to the complete termination of an option, accelerate the exercise date or
dates of such option.

9. Nontransferability of Options.

   No option granted under this Plan shall be assignable or otherwise
transferable by the optionee except by will or by the laws of descent and
distribution. An option may be exercised during the lifetime of the optionee
only by the optionee. In the event an optionee dies during his employment by
the Company or any of its subsidiaries, or during the three-month period
following the date of termination of such employment, his option shall
thereafter be exercisable, during the period specified in the option
agreement, by his executors or administrators to the full extent to which
such option was exercisable by the optionee at the time of his death during
the periods set forth in Section 10 or 11(d).

10. Effect of Termination of Employment or Other Relationship.

   Except as provided in Section 11(d) with respect to Incentive Stock
Options and except as otherwise determined by the Committee at the date of
grant of an Option, and subject to the provisions of the Plan, an optionee
may exercise an option at any time within three months following the
termination of the optionee's employment or other relationship with the
Company or within one (1) year if such termination was due to the death or
disability of the optionee but, except in the case of the optionee's death,
in no event later than the expiration date of the Option. If the termination
of the optionee's employment is for cause or is otherwise attributable to a
breach by the optionee of an employment or confidentiality or non-disclosure
agreement, the option shall expire immediately upon such termination. The
Committee shall have the power to determine what constitutes a termination
for cause or a breach of an employment or confidentiality or non-disclosure
agreement, whether an optionee has been terminated for cause or has breached
such an agreement, and the date upon which such termination for cause or
breach occurs. Any such determinations shall be final and conclusive and
binding upon the optionee.

11. Incentive Stock Options.

   Options granted under the Plan which are intended to be Incentive Stock
Options shall be subject to the following additional terms and conditions:

   (a) Express Designation. All Incentive Stock Options granted under the
Plan shall, at the time of grant, be specifically designated as such in the
option agreement covering such Incentive Stock Options.

   (b) 10% Shareholder. If any employee to whom an Incentive Stock Option is
to be granted under the Plan is, at the time of the grant of such option, the
owner of stock possessing more than 10% of the total combined voting power of
all classes of stock of the Company (after taking into account the
attribution of stock ownership rules of Section 424(d) of the Code), then the
following special provisions shall be applicable to the Incentive Stock
Option granted to such individual:

   (i)     The purchase price per share of the Common Stock subject to such
           Incentive Stock Option shall not be less than 110% of the Fair Market
           Value of one share of Common Stock at the time of grant; and

   (ii)    The option exercise period shall not exceed five years from the date
           of grant.

   (c) Dollar Limitation. For so long as the Code shall so provide, options
granted to any employee under the Plan (and any other incentive stock option
plans of the Company) which are intended to constitute Incentive Stock
Options shall not constitute Incentive Stock Options to the extent that such
options, in the aggregate, become exercisable for the first time in any one
calendar year for shares of Common Stock with an aggregate Fair Market Value,
as of the respective date or dates of grant, of more than $100,000.

                                       3
<PAGE>

   (d) Termination of Employment, Death or Disability. No Incentive Stock
Option may be exercised unless, at the time of such exercise, the optionee
is, and has been continuously since the date of grant of his or her option,
employed by the Company, except that:

   (i)     an Incentive Stock Option may be exercised within the period of three
           months after the date the optionee ceases to be an employee of the
           Company (or within such lesser period as may be specified in the
           applicable option agreement), provided, that the agreement with
           respect to such option may designate a longer exercise period and
           that the exercise after such three-month period shall be treated as
           the exercise of a non-statutory option under the Plan;

   (ii)    if the optionee dies while in the employ of the Company, or within
           three months after the optionee ceases to be such an employee, the
           Incentive Stock Option may be exercised by the person to whom it is
           transferred by will or the laws of descent and distribution within
           the period of one year after the date of death (or within such lesser
           period as may be specified in the applicable option agreement); and

   (iii)   if the optionee becomes disabled (within the meaning of Section
           22(e)(3) of the Code or any successor provisions thereto) while in
           the employ of the Company, the Incentive Stock Option may be
           exercised within the period of one year after the date the optionee
           ceases to be such an employee because of such disability (or within
           such lesser period as may be specified in the applicable option
           agreement).

For all purposes of the Plan and any option granted hereunder, "employment"
shall be defined in accordance with the provisions of Section 1.421-7(h) of
the Income Tax Regulations (or any successor regulations). Notwithstanding
the foregoing provisions, no Incentive Stock Option may be exercised after
its expiration date.

12. Additional Provisions.

   (a) Additional Option Provisions. The Committee may, in its sole
discretion, include additional provisions in option agreements covering
options granted under the Plan, including without limitation restrictions on
transfer, repurchase rights, rights of first refusal, commitments to pay cash
bonuses, to make, arrange for or guaranty loans or to transfer other property
to optionees upon exercise of options, or such other provisions as shall be
determined by the Committee; provided, that such additional provisions shall
not be inconsistent with any other term or condition of the Plan and such
additional provisions shall not cause any Incentive Stock Option granted
under the Plan to fail to qualify as an Incentive Stock Option within the
meaning of Section 422 of the Code.

   (b) Acceleration, Extension, Etc.  The Committee may, in its sole
discretion, (i) accelerate the date or dates on which all or any particular
option or options granted under the Plan may be exercised or (ii) extend the
dates during which all, or any particular, option or options granted under
the Plan may be exercised; provided, however, that no such extension shall be
permitted if it would cause the Plan to fail to comply with Section 422 of
the Code or with Rule 16b-3 (if applicable).

13. General Restrictions.

   (a) Investment Representations. The Company may require any person to whom
an Option is granted, as a condition of exercising such option, to give
written assurances in substance and form satisfactory to the Company to the
effect that such person is acquiring the Common Stock subject to the option
or award, for his or her own account for investment and not with any present
intention of selling or otherwise distributing the same, and to such other
effects as the Company deems necessary or appropriate in order to comply with
federal and applicable state securities laws, or with covenants or
representations made by the Company in connection with any public offering of
its Common Stock, including any "lock-up" or other restriction on
transferability.

   (b) Compliance With Securities Law. Each Option shall be subject to the
requirement that if, at any time, counsel to the Company shall determine that
the listing, registration or qualification of the shares subject to such
option upon any securities exchange or automated quotation system or under
any

                                       4
<PAGE>

state or federal law, or the consent or approval of any governmental or
regulatory body, or that the disclosure of non-public information or the
satisfaction of any other condition is necessary as a condition of, or in
connection with the issuance or purchase of shares thereunder, such option
may not be exercised, in whole or in part, unless such listing, registration,
qualification, consent or approval, or satisfaction of such condition shall
have been effected or obtained on conditions acceptable to the Committee.
Nothing herein shall be deemed to require the Company to apply for or to
obtain such listing, registration or qualification, or to satisfy such
condition.

14. Rights as a Stockholder.

   The holder of an option shall have no rights as a stockholder with respect
to any shares covered by the option (including, without limitation, any
rights to receive dividends or non-cash distributions with respect to such
shares) until the date of issue of a stock certificate to him or her for such
shares. No adjustment shall be made for dividends or other rights for which
the record date is prior to the date such stock certificate is issued.

15. Adjustment Provisions for Recapitalizations, Reorganizations and Related
Transactions.

   (a) Recapitalizations and Related Transactions. If, through or as a result
of any recapitalization, reclassification, stock dividend, stock split,
reverse stock split or other similar transaction, (i) the outstanding shares
of Common Stock are increased, decreased or exchanged for a different number
or kind of shares or other securities of the Company, or (ii) additional
shares or new or different shares or other non-cash assets are distributed
with respect to such shares of Common Stock or other securities, an
appropriate and proportionate adjustment shall be made in (x) the maximum
number and kind of shares reserved for issuance under or otherwise referred
to in the Plan, (y) the number and kind of shares or other securities subject
to any then outstanding options under the Plan, and (z) the price for each
share subject to any then outstanding options under the Plan, without
changing the aggregate purchase price as to which such options remain
exercisable. Notwithstanding the foregoing, no adjustment shall be made
pursuant to this Section 15 if such adjustment (i) would cause the Plan to
fail to comply with Section 422 of the Code or with Rule 16b-3 or (ii) would
be considered as the adoption of a new plan requiring stockholder approval.

   (b) Reorganization, Merger and Related Transactions. All outstanding
Options under the Plan shall become fully exercisable for a period of sixty
(60) days following the occurrence of any Trigger Event, whether or not such
Options are then exercisable under the provisions of the applicable
agreements relating thereto. For purposes of the Plan, a "Trigger Event" is
any one of the following events, but shall not include the events
contemplated by the Stock Purchase Agreement dated as of November 3, 1999
between the Company and Gruppo Spigadoro, N.V.:

   (i)     the date on which shares of Common Stock are first purchased pursuant
           to a tender offer or exchange offer (other than such an offer by the
           Company, any Subsidiary, any employee benefit plan of the Company or
           of any Subsidiary or any entity holding shares or other securities of
           the Company for or pursuant to the terms of such plan), whether or
           not such offer is approved or opposed by the Company and regardless
           of the number of shares purchased pursuant to such offer;

   (ii)    the date the Company acquires knowledge that any person or group
           deemed a person under Section 13(d)-3 of the Exchange Act (other than
           the Company, any Subsidiary, any employee benefit plan of the Company
           or of any Subsidiary or any entity holding shares of Common Stock or
           other securities of the Company for or pursuant to the terms of any
           such plan or any individual or entity or group or affiliate thereof
           which acquired its beneficial ownership interest prior to the date
           the Plan was adopted by the Board), in a transaction or series of
           transactions, has become the beneficial owner, directly or indirectly
           (with beneficial ownership determined as provided in Rule 13d-3, or
           any successor rule, under the Exchange Act), of securities of the
           Company entitling the person or group to 30% or more of all votes
           (without consideration of the rights of any class or stock to elect
           directors by a separate class vote) to which all shareholders of the
           Company would be entitled in the election of the Board of Directors
           were an election held on such date;

                                       5
<PAGE>

   (iii)   the date, during any period of two consecutive years, when
           individuals who at the beginning of such period constitute the Board
           of Directors of the Company cease for any reason to constitute at
           least a majority thereof, unless the election, or the nomination for
           election by the stockholders of the Company, of each new director was
           approved by a vote of at least two-thirds of the directors then still
           in office who were directors at the beginning of such period; and

   (iv)    the date of approval by the stockholders of the Company of an
           agreement (a "reorganization agreement") providing for:

           (A)   The merger or consolidation of the Company with another
                 corporation where the stockholders of the Company, immediately
                 prior to the merger or consolidation, do not beneficially own,
                 immediately after the merger or consolidation, shares of the
                 corporation issuing cash or securities in the merger or
                 consolidation entitling such shareholders to 80% or more of all
                 votes (without consideration of the rights of any class of
                 stock to elect directors by a separate class vote) to which all
                 stockholders of such corporation would be entitled in the
                 election of directors or where the members of the Board of
                 Directors of the Company, immediately prior to the merger or
                 consolidation, do not, immediately after the merger or
                 consolidation, constitute a majority of the Board of Directors
                 of the corporation issuing cash or securities in the merger or
                 consolidation; or

           (B)   The sale or other disposition of all or substantially all the
                 assets of the Company.

   (c) Board Authority to Make Adjustments. Any adjustments under this
Section 15 will be made by the Board of Directors, whose determination as to
what adjustments, if any, will be made and the extent thereof will be final,
binding and conclusive. No fractional shares will be issued under the Plan on
account of any such adjustments.

16. Merger, Consolidation, Asset Sale, Liquidation, etc.

   (a) General. In the event of any sale, merger, transfer or acquisition of
the Company or substantially all of the assets of the Company in which the
Company is not the surviving corporation, and provided that after the Company
shall have requested the acquiring or succeeding corporation (or an affiliate
thereof), that equivalent options shall be substituted and such successor
corporation shall have refused or failed to assume all options outstanding
under the Plan or issue substantially equivalent options, then any or all
outstanding options under the Plan shall accelerate and become exercisable in
full immediately prior to such event. The Committee will notify holders of
options under the Plan that any such options shall be fully exercisable for a
period of sixty (60) days from the date of such notice, and the options will
terminate upon expiration of such notice.

   (b) Substitute Options. The Company may grant options under the Plan in
substitution for options held by employees of another corporation who become
employees of the Company, or a subsidiary of the Company, as the result of a
merger or consolidation of the employing corporation with the Company or a
subsidiary of the Company, or as a result of the acquisition by the Company,
or one of its subsidiaries, of property or stock of the employing
corporation. The Company may direct that substitute options be granted on
such terms and conditions as the Board of Directors considers appropriate in
the circumstances.

17. No Special Employment Rights.

   Nothing contained in the Plan or in any option shall confer upon any
optionee any right with respect to the continuation of his or her employment
by the Company or interfere in any way with the right of the Company at any
time to terminate such employment or to increase or decrease the compensation
of the optionee.

18. Other Employee Benefits.

   Except as to plans which by their terms include such amounts as
compensation, the amount of any compensation deemed to be received by an
employee as a result of the exercise of an option or the sale

                                       6
<PAGE>

of shares received upon such exercise will not constitute compensation with
respect to which any other employee benefits of such employee are determined,
including, without limitation, benefits under any bonus, pension,
profit-sharing, life insurance or salary continuation plan, except as
otherwise specifically determined by the Board of Directors.

19. Amendment of the Plan.

   (a) The Board of Directors may at any time, and from time to time, modify
or amend the Plan in any respect; provided, however, that if at any time the
approval of the stockholders of the Company is required under Section 422 of
the Code or any successor provision with respect to Incentive Stock Options,
the Board of Directors may not effect such modification or amendment without
such approval; and provided, further, that the provisions of Section 3(c)
hereof shall not be amended more than once every six months, other than to
comport with changes in the Code or the rules thereunder.

   (b) The modification or amendment of the Plan shall not, without the
consent of an optionee, affect his or her rights under an option previously
granted to him or her. With the consent of the optionee affected, the Board
of Directors may amend outstanding option agreements in a manner not
inconsistent with the Plan. The Board of Directors shall have the right to
amend or modify (i) the terms and provisions of the Plan and of any
outstanding Incentive Stock Options granted under the Plan to the extent
necessary to qualify any or all such options for such favorable federal
income tax treatment (including deferral of taxation upon exercise) as may be
afforded incentive stock options under Section 422 of the Code and (ii) the
terms and provisions of the Plan and of any outstanding option to the extent
necessary to ensure the qualification of the Plan under Rule 16b-3.

20. Withholding.

   (a) The Company shall have the right to deduct from payments of any kind
otherwise due to the optionee any federal, state or local taxes of any kind
required by law to be withheld with respect to any shares issued upon
exercise of options under the Plan. Subject to the prior approval of the
Company, which may be withheld by the Company in its sole discretion, the
optionee may elect to satisfy such obligations, in whole or in part, (i) by
causing the Company to withhold shares of Common Stock otherwise issuable
pursuant to the exercise of an option or (ii) by delivering to the Company
shares of Common Stock already owned by the optionee. The shares so delivered
or withheld shall have a Fair Market Value equal to such withholding
obligation as of the date that the amount of tax to be withheld is to be
determined. An optionee who has made an election pursuant to this Section
20(a) may only satisfy his or her withholding obligation with shares of
Common Stock which are not subject to any repurchase, forfeiture, unfulfilled
vesting or other similar requirements.

   (b) The acceptance of shares of Common Stock upon exercise of an Incentive
Stock Option shall constitute an agreement by the optionee (i) to notify the
Company if any or all of such shares are disposed of by the optionee within
two years from the date the option was granted or within one year from the
date the shares were issued to the optionee pursuant to the exercise of the
option, and (ii) if required by law, to remit to the Company, at the time of
and in the case of any such disposition, an amount sufficient to satisfy the
Company's federal, state and local withholding tax obligations with respect
to such disposition, whether or not, as to both (i) and (ii), the optionee is
in the employ of the Company at the time of such disposition.

   (c) Notwithstanding the foregoing, in the case of a Reporting Person whose
options have been granted in accordance with the provisions of Section 3(b)
herein, no election to use shares for the payment of withholding taxes shall
be effective unless made in compliance with any applicable requirements of
Rule 16b-3.

21. Cancellation and New Grant of Options, Etc.

   The Board of Directors shall have the authority to effect, at any time and
from time to time, with the consent of the affected optionees, (i) the
cancellation of any or all outstanding options under the Plan and the grant
in substitution therefor of new options under the Plan covering the same or
different numbers of shares of Common Stock and having an option exercise
price per share which may be lower or higher

                                       7
<PAGE>

than the exercise price per share of the cancelled options or (ii) the
amendment of the terms of any and all outstanding options under the Plan to
provide an option exercise price per share which is higher or lower than the
then-current exercise price per share of such outstanding options.

22. Effective Date and Duration of the Plan.

   (a) Effective Date. The Plan shall become effective when adopted by the
Board of Directors, but no Incentive Stock Option granted under the Plan
shall become exercisable unless and until the Plan shall have been approved
by the Company's stockholders. If such stockholder approval is not obtained
within twelve months after the date of the Board's adoption of the Plan, no
options previously granted under the Plan shall be deemed to be Incentive
Stock Options and no Incentive Stock Options shall be granted thereafter.
Amendments to the Plan not requiring stockholder approval shall become
effective when adopted by the Board of Directors; amendments requiring
shareholder approval (as provided in Section 21) shall become effective when
adopted by the Board of Directors, but no Incentive Stock Option granted
after the date of such amendment shall become exercisable (to the extent that
such amendment to the Plan was required to enable the Company to grant such
Incentive Stock Option to a particular optionee) unless and until such
amendment shall have been approved by the Company's stockholders. If such
stockholder approval is not obtained within twelve months of the Board's
adoption of such amendment, any Incentive Stock Options granted on or after
the date of such amendment shall terminate to the extent that such amendment
to the Plan was required to enable the Company to grant such option to a
particular optionee. Subject to this limitation, options may be granted under
the Plan at any time after the effective date and before the date fixed for
termination of the Plan.

   (b) Termination. Unless sooner terminated in accordance with Section 16,
the Plan shall terminate upon the earlier of (i) the close of business on the
day next preceding the tenth anniversary of the date of its adoption by the
Board of Directors, or (ii) the date on which all shares available for
issuance under the Plan shall have been issued pursuant to the exercise or
cancellation of options granted under the Plan. If the date of termination is
determined under (i) above, then options outstanding on such date shall
continue to have force and effect in accordance with the provisions of the
instruments evidencing such options.

23. Provision for Foreign Participants.

   The Board of Directors may, without amending the Plan, modify awards or
options granted to participants who are foreign nationals or employed outside
the United States to recognize differences in laws, rules, regulations or
customs of such foreign jurisdictions with respect to tax, securities,
currency, employee benefit or other matters.

24. Governing Law.

   The provisions of this Plan shall be governed and construed in accordance
with the laws of the State of Delaware without regard to the principles of
conflicts of laws.

   Adopted by the Board of Directors on November 2, 1999.

                                       8

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