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                                                                   Exhibit 10.13

                      2000 Stock Plan of Allin Corporation

1. Purpose

   Allin Corporation (the "Company") desires to attract and retain the best
available talent and encourage the highest level of performance by employees and
other persons who perform services for the Company in order to serve the best
interests of the Company and its shareholders.  By affording eligible persons
the opportunity to acquire proprietary interests in the Company and by providing
them incentives to put forth maximum efforts for the success of the Company's
business, the 2000 Stock Plan of the Company (the "2000 Plan") is expected to
contribute to the attainment of those objectives.

2. Scope and Duration

   Awards under the 2000 Plan may be granted in the form of (i) incentive stock
options ("incentive stock options') as provided in Section 422 of the Internal
Revenue Code of 1986, as amended (the "Code'), (ii) non-qualified stock options
("non-qualified options") (unless otherwise indicated, references in the 2000
Plan to "options" include incentive stock options and non-qualified options),
(iii) shares of the common stock, par value $0.01 per share, of the Company (the
"Common Stock") that are restricted as provided in paragraph 11 ("restricted
shares"), (iv) units to acquire shares of Common Stock that are restricted as
provided in paragraph 11 ("restricted units") and (v) stock appreciation rights
("rights") or limited stock appreciation rights ("limited rights").  The maximum
aggregate number of shares of Common Stock as to which awards may be granted
from time to time under the 2000 Plan is 295,000 shares.  The shares available
may be in whole or in part, authorized but unissued shares or issued shares
reacquired by the Company, as the Board of Directors of the Company (the "Board
of Directors") shall from time to time determine.  Unless otherwise provided by
the Board of Directors, shares covered by expired or terminated options and
forfeited restricted shares or restricted units, shares subject to awards that
are paid in cash or surrendered upon the exercise of an option, and shares
received by the Company upon the exercise of an option will not be available for
subsequent awards under the 2000 Plan.  No incentive stock option shall be
granted under the 2000 Plan more than 10 years after May 1, 2000.  Otherwise,
the Plan will continue until terminated pursuant to paragraph 17.

3. Administration

   The 2000 Plan will be administered by the Board of Directors, which shall
have plenary authority in its discretion, subject to and not inconsistent with
the express provisions of the 2000 Plan, (i) to grant options, to determine the
purchase price of the shares of Common Stock covered by each option, the term of
each option, the persons to whom, and the time or times at which options shall
be granted, and the number of shares to be covered by each option; (ii) to
designate options as incentive stock options or non-qualified options and to
determine which options shall be accompanied by rights and limited rights; (iii)
to grant rights and to determine the terms and conditions applicable to such
rights; (iv) to grant restricted shares and restricted units and to determine
the terms of the restricted period and other conditions applicable to such
shares or units, the persons to whom, and the time or times at which, restricted
shares or restricted units shall be granted and the number of shares or units to
be covered by each grant; (v) to interpret the 2000 Plan; (vi) to prescribe,
amend and rescind rules and regulations relating to the 2000 Plan; (vii) to
determine the terms and provisions of the option and rights agreements (which
need not be identical) and the restricted share and restricted units agreements
(which need not be identical) entered into in connection with awards under the
2000 Plan; and (viii) to make all other determinations deemed necessary or
advisable for the administration of the 2000 Plan. The Board of Directors may
delegate to one or more of its members or to one or more agents such
administrative duties as it may deem advisable, and the Board of Directors or
any person to whom it has delegated duties as aforesaid may employ one or more
persons to render advice with respect to any responsibility or authority the
Board of Directors or such person may have under the 2000 Plan.

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  The Board of Directors may employ attorneys, consultants, accountants or other
persons.  The Board of Directors, the Company and its officers and directors
shall be entitled to rely upon the advice, opinions or valuations of any such
persons.  All actions taken and all interpretations and determinations made by
the Board of Directors in good faith shall be final and binding upon all persons
who have received awards, the Company and all other interested persons.  No
member or agent of the Board of Directors shall be personally liable for any
action, determination or interpretation taken or made in good faith with respect
to the 2000 Plan or awards made thereunder, and all members and agents of the
Board of Directors shall be fully indemnified and protected by the Company in
respect of any such action, determination or interpretation.

4. Eligibility; Factors to be Considered in Granting Awards

   Awards will be limited to (i) officers, executives and others, who are
employees of the Company or its subsidiaries and (ii) any non-employee advisors
or consultants (including non-employee directors) who may provide or who have
provided services to the Company, its predecessors or its subsidiaries;
provided, however, that awards in the form of incentive stock options may be
granted only to employees.  In determining the persons to whom awards shall be
granted and the number of shares or units to be covered by each award, the Board
of Directors shall take into account the nature of the employees' duties or the
services provided, their past, present and potential contributions to the
success of the Company and such other factors as it shall deem relevant in
connection with accomplishing the purposes of the 2000 Plan.  At the conclusion
of each non-employee director's current year of service, such person will be
entitled to receive an immediately exercisable option to acquire 5,000 shares of
Common Stock at an exercise price equal to the Fair Market Value (as defined in
paragraph 5) if the individual is serving as a director on that date.  In
addition, to the extent that an option to acquire 5,000 shares is not granted
under another plan of the Company for one year of service as a non-employee
director, at the commencement of each year of service as a non-employee
director, each non-employee director will be entitled to receive an option to
acquire 5,000 shares of Common Stock at an exercise price equal to the Fair
Market Value that will vest on the first anniversary of the date of grant if the
individual is serving as a director on that date.  Awards may be granted singly,
in combination or in tandem and may be made in combination or in tandem with, in
replacement of, or as alternatives to, awards or grants under any other employee
plan maintained by the Company or its present and future subsidiaries.  A person
to whom an award has been granted shall be referred to as a "participant." An
award, other than an award of restricted shares, may provide for the crediting
to the account of, or the current payment to, each participant who has such an
award of an amount equal to the cash or stock dividends paid by the Company upon
one share of Common Stock for each restricted unit or share of Common Stock
subject to an option or right, included in such award ("Dividend Equivalent").
Dividend Equivalents credited to a participant's account shall not be subject to
forfeiture, except as the Board of Directors may otherwise determine in respect
of any option or right, and may bear amounts equivalent to interest or cash
dividends as the Board of Directors may determine.  A participant who has been
granted an award or awards under the 2000 Plan may be granted an additional
award or awards, subject to such limitations as may be imposed by the Code on
the grant of incentive stock options.  The Board of Directors, in its sole
discretion, may grant to a participant who has been granted an award under the
2000 Plan or any other plan maintained by the Company or one of its
subsidiaries, or any predecessors or successors thereto, in exchange for the
surrender and cancellation of such award, a new award in the same or a different
form and containing such terms, including without limitation a price which is
different (either higher or lower) than any price provided in the award so
surrendered and cancelled, as the Board of Directors may deem appropriate.

5. Option Price

   Except as provided in paragraph 4 with respect to certain options granted to
directors, the purchase price of the Common Stock covered by each option shall
be determined by the Board of Directors.  However, in the case of an award made
to any other participant in the form of an incentive stock option, the purchase
price shall not be less than 100% (or, in the case of an incentive stock option
granted to a "10 percent shareholder," as defined in Code section 422, 110%) of
the fair market value of the Common Stock on the date the option is granted,
which shall be the closing price of the Common Stock as reported on Nasdaq NMS
(the "Fair Market Value") for the date on which the option is granted, or if
there are no sales on such date, on the next preceding day on which there were
sales.  Except as provided in paragraph 15, the price of any award, once
established, will not be subject to change.  The Board of Directors shall
determine the date on which an option is granted, provided that such date is
consistent with the Code and any applicable rules or regulations thereunder.  In
the absence of such determination, the date on

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which the Board of Directors adopts a resolution granting an option shall be
considered the date on which such option is granted, provided the participant to
whom the option is granted is promptly notified of the grant and an option
agreement is duly executed as of the date of the resolution. The price so
determined shall also be applicable in connection with the exercise of any
related right or limited right.

6. Term of Options, Units and Rights

   The term of each incentive stock option granted under the 2000 Plan shall not
be more than 10 (or, in the case of a "10 percent shareholder," as defined in
Code section 422, 5) years from the date of grant, as the Board of Directors
shall determine, subject to earlier termination as provided in paragraphs 12 and
13.  The term of each non-qualified stock option as well as each restricted
unit, right or limited right granted under the 2000 Plan shall be such period of
time as the Board of Directors shall determine, subject to earlier termination
as provided in paragraphs 12 and 13.

7. Exercise of Options; Loans

  (a) Subject to the provisions of the 2000 Plan and unless otherwise provided
in the option agreement, an option granted under the 2000 Plan shall become 100%
vested at the earliest of the participant's normal retirement date, the
participant's death or total disability (as defined in paragraph 13) or over a
five (5) year period commencing with the date of grant at the rate of twenty
percent (20%) per year.  In its sole discretion, the Board of Directors may, in
any case or cases, prescribe different installments.  The Board of Directors may
also, in its sole discretion, accelerate any option at any time or, in any
option agreement, provide for the acceleration of the exercisability of any
option based on the occurrence of any event or satisfaction of any condition
prescribed by the Board of Directors in its sole discretion.

  (b) An option may be exercised at any time or from time to time (subject, in
the case of an incentive stock option, to such restrictions as may be imposed by
the Code), as to any or all full shares as to which the option has become
exercisable.

  (c) The purchase price of the shares as to which an option is exercised shall
be paid in full at the time of exercise; payment may be made in cash, which may
be paid by check or other instrument acceptable to the Company, or, with the
consent of the Board of Directors, in shares of the Common Stock, valued at the
Fair Market Value on the date of exercise, or if there were no sales on such
date, on the next preceding day on which there were sales or (if permitted by
the Board of Directors and subject to such terms and conditions as it may
determine) by surrender of outstanding awards under the 2000 Plan.  In addition,
any amount necessary to satisfy applicable federal, state or local tax
requirements shall be paid promptly upon notification of the amount due.  The
Board of Directors may permit such amount to be paid in shares of Common Stock
previously owned by the participant, or a portion of the shares of Common Stock
that otherwise would be distributed to such participant upon exercise of the
option, or a combination of cash and shares of such Common Stock.

  (d) Except as provided in paragraphs 12 and 13, no option which is an
incentive stock option may be exercised at any time unless the holder thereof is
then an employee of the Company, one of its subsidiaries.  For this purpose,
"subsidiary' shall include, as under Treasury Regulations Section 1.421-7(h)(3)
and (4), Example (3), any corporation that is a subsidiary of the Company during
the entire portion of the requisite period of employment during which it is the
employer of the holder.

  (e) The Board of Directors, in its sole discretion, may elect, in lieu of
delivering all or a portion of the shares of Common Stock as to which an option
has been exercised, if the Fair Market Value of the Common Stock exceeds the
exercise price of the option (i) to pay the participant in cash or in shares of
Common Stock, or a combination of cash and Common Stock, an amount equal to the
excess of (A) the Fair Market Value on the exercise date of the shares of Common
Stock as to which such option has been exercised, or if there were no sales on
such date, on the next preceding day on which there were sales over (B) the
option price, or (ii) in the case of an option which is a non-qualified option,
to defer payment and to credit the amount of such excess on the Company's books
for the account of the optionee and either (a) to treat the amount in such
account as if it had been invested in the manner from time to time determined by
the Board of Directors, with dividends or other income thereon being

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deemed to have been so reinvested or (b) for the Company's convenience, to
contribute the amount credited to such account to a trust, which may be
revocable by the Company, for investment in the manner from time to time
determined by the Board of Directors and set forth in the instrument creating
such trust. The Board of Director's election pursuant to this subparagraph shall
be made by giving written notice of such election to the participant (or other
person exercising the option). Shares of Common Stock paid pursuant to this
subparagraph will be valued at the Fair Market Value on the exercise date, or if
there were no sales on such date, on the next preceding day on which there were
sales.

   (f) Subject to any terms and conditions that the Board of Directors may
determine in respect of the exercise of options involving the surrender of
outstanding awards, upon, but not until, the exercise of an option or portion
thereof in accordance with (i) the 2000 Plan, (ii) the option agreement and
(iii) such rules and regulations as may be established by the Board of
Directors, the holder thereof shall have the rights of a shareholder with
respect to the shares issued as a result of such exercise.

   (g) The Company may make loans to such option holders as the Board of
Directors, in its discretion, may determine (including a holder who is a
director or officer of the Company) in connection with the exercise of options
granted under the 2000 Plan; provided, however, that the Board of Directors
shall not authorize the making of any loan where the possession of such
discretion or the making of such loan would result in a "modification" (as
defined in Section 424 of the Code) of any incentive stock option.  Such loans
shall be subject to the following terms and conditions and such other terms and
conditions as the Board of Directors shall determine not inconsistent with the
2000 Plan.  Such loans shall bear interest at such rates as the Board of
Directors shall determine from time to time, which rates may be below then
current market rates (except in the case of incentive stock options).  In no
event may any such loan exceed the fair market value, at the date of exercise,
of the shares covered by the option, or portion thereof, exercised by the
holder.  No loan shall have an initial term exceeding five years, but any such
loan may be renewable at the discretion of the Board of Directors.  When a loan
shall have been made, shares of Common Stock having a Fair Market Value at least
equal to the principal amount of the loan shall be pledged by the holder to the
Company as security for payment of the unpaid balance of the loan.  Every loan
shall comply with all applicable laws, regulations and rules of the Board of
Governors of the Federal Reserve System and any other governmental agency having
jurisdiction.

8. Award and Exercise of Rights

   (a) A right may be awarded by the Board of Directors in connection with any
option granted under the 2000 Plan (a "tandem right"), either at the time the
option is granted or thereafter at any time prior to the exercise, termination
or expiration of the option.  A right may also be awarded separately (a 'free-
standing right").  Each tandem right shall be subject to the same terms and
conditions as the related option and shall be exercisable only to the extent the
option is exercisable.

  The term of each freestanding right granted under the 2000 Plan shall be such
period of time as the Board of Directors shall determine.  Subject to the
provisions of the 2000 Plan and unless otherwise provided in the agreement
covering a freestanding right granted under the 2000 Plan, such right shall
become 100% vested at the earliest of the participant's normal retirement date,
the participant's death or total disability (as defined in paragraph 13) or such
period of time from the date of grant as the Board of Directors shall determine.
Prior to becoming 100% vested, each freestanding right shall become exercisable
at such time and in such manner as the Board of Directors shall determine.  The
Board of Directors may also, in its sole discretion, accelerate the
exercisability of any freestanding right at any time and provide, in the
agreement covering a freestanding right, that the right shall become immediately
exercisable based on the occurrence of any event or satisfaction of any
condition prescribed by the Board of Directors in its sole discretion.

  (b) A right shall entitle the participant upon exercise in accordance with its
terms (subject, in the case of a tandem right, to the surrender of the
unexercised portion of the related option or any portion or portions thereof
which the participant from time to time determines to surrender for this
purpose) to receive, subject to the provisions of the 2000 Plan and such rules
and regulations as from time to time may be established by the Board of
Directors, a payment having an aggregate value equal to (A) the excess of the
fair market value on the exercise date of one share over the option price per
share, in the case of a tandem right, or the price per share specified in the
terms of the right, in the case of a freestanding right, times (B) the number of
shares with respect to which the right shall have been

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exercised. The payment shall be made in the form of all cash, all shares of
Common Stock, or a combination thereof, as elected by the participant; provided,
that the Board of Directors shall have sole discretion to consent to or
disapprove the election of a participant to receive all or part of a payment in
cash (which consent or disapproval may be given at any time after the election
to which it relates). The price per share specified in a freestanding right
shall be determined by the Board of Directors but in no event shall be less than
the average of the daily closing price for the Common Stock as reported on the
Nasdaq NMS during a period determined by the Board of Directors in its sole
discretion that shall consist of any day on which shares of Common Stock are
traded on the Nasdaq NMS (a "Trading Day") or any number of consecutive Trading
Days, not exceeding 30, during the period of 30 Trading Days ending on the
Trading Day immediately preceding the date the right is granted, provided that,
in the absence of a different determination by the Board of Directors, the price
per share shall be determined on the basis of a period consisting of 30 Trading
Days. Such price shall be subject to adjustment as provided in paragraph 15. The
Board of Directors shall determine the date on which a freestanding right is
granted. In the absence of such determination, the date on which the Board of
Directors adopts a resolution granting such right shall be considered the date
of grant, provided the participant is promptly notified of the grant and an
agreement is duly executed as of the date of the resolution.

  If upon exercise of a right the participant is to receive all or a portion of
the payment in shares of Common Stock, the number of shares received shall be
determined by dividing such portion by the fair market value of a share on the
exercise date.  The number of shares received may not exceed the number of
shares covered by any option or portion thereof surrendered.  Cash will be paid
in lieu of any fractional share.

  No payment will be required from the participant upon exercise of a right,
except that any amount necessary to satisfy applicable federal, state or local
tax requirements shall be withheld or paid promptly upon notification of the
amount due and prior to or concurrently with delivery of cash or a certificate
representing shares.  The Board of Directors may permit such amount to be paid
in shares of Common Stock previously owned by the participant, or a portion of
the shares of Common Stock that otherwise would be distributed to such
participant upon exercise of the right, or a combination of cash and shares of
such Common Stock.

  (c) For purposes of this paragraph 8, the fair market value of a share on any
particular date shall mean the Fair Market Value of such share on such date, or
if there are no sales on such date, on the next preceding day on which there
were sales; provided that, in the case of rights that relate to an incentive
stock option, not in excess of the maximum amount that would be permissible
under Section 422 of the Code and the Treasury Regulations thereunder without
disqualifying such option as an incentive stock option under Section 422.

  (d) Upon exercise of a tandem right, the number of shares subject to exercise
under the related option shall automatically be reduced by the number of shares
represented by the option or portion thereof surrendered.

  (e) A right related to an incentive stock option may only be exercised if the
fair market value of a share of Common Stock on the exercise date exceeds the
option price.

  (f) Whether payments to participants upon exercise of tandem rights related to
non-qualified options or of freestanding rights are made in cash, shares of
Common Stock or a combination thereof, the Board of Directors shall have sole
discretion as to timing of the payments, whether in one lump sum or in annual
installments or otherwise deferred, which deferred payments may in the Board of
Directors' sole discretion (i) bear amounts equivalent to interest or cash
dividends, (ii) be treated as invested in the manner from time to time
determined by the Board of Directors, with dividends or other income thereon
being deemed to have been so reinvested, or (iii) for the convenience of the
Company, contributed to a trust, which may be revocable by the Company or
subject to the claims of its creditors, for investment in the manner from time
to time determined by the Board of Directors and set forth in the instrument
creating such trust, all as the Board of Directors shall determine.

  (g) If a freestanding right is not exercised, or neither a tandem right nor
the related option is exercised, before the end of the day on which the right
ceases to be exercisable and the fair market value of a share on such date
exceeds (i) the option price per share in the case of a tandem right or (ii) the
price per share specified in the terms of the right in the case of a
freestanding right, such right shall be deemed exercised and a payment in the
amount prescribed by subparagraph 8(b), less any applicable taxes, shall be paid
to the participant in cash.

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9. Award and Exercise of Limited Rights

  (a) A limited right may be awarded by the Board of Directors in connection
with any option granted under the 2000 Plan with respect to all or some of the
shares of Common Stock covered by such related option.  A limited right may be
granted either at the time the option is granted or thereafter at any time prior
to the exercise, termination or expiration of the option.  A limited right may
be granted to a participant irrespective of whether such participant is being
granted or has been granted a right under paragraph 8 hereof.  A limited right
may be exercised only during the ninety-day period beginning on the occurrence
of an event or condition prescribed by the Board of Directors.  In addition,
each limited right shall be exercisable only if, and to the extent that, the
related option is exercisable and, in the case of a limited right granted in
respect of an incentive stock option, only when the fair market value per share
of the Common Stock exceeds the option price per share.  Upon exercise of a
limited right, such related option shall cease to be exercisable to the extent
of the shares of Common Stock with respect to which such limited right is
exercised.  Upon the exercise or termination of a related option, the limited
right with respect to such related option shall terminate to the extent of the
shares of Common Stock with respect to which the related option was exercised or
terminated.

  (b) Upon the exercise of limited rights, the holder thereof shall receive in
cash an amount determined in the same manner as for a right granted under
paragraph 8.

  (c) Notwithstanding any other provision of the 2000 Plan, tandem rights
granted pursuant to paragraph 8 may not be exercised to the extent that any
limited rights granted with respect to the same option are then exercisable.
Upon exercise of the limited right, the number of shares subject to exercise
under the related option, and the number of tandem rights related thereto, shall
automatically be reduced by the number of shares and rights represented by the
limited right exercised.

10. Non-Transferability of Options and Rights

  Options, rights and limited rights granted under the 2000 Plan shall not be
transferable otherwise than by will or the laws of descent and distribution.
Options, rights and limited rights may be exercised during the lifetime of the
participant only by the participant or by the participant's guardian or legal
representative (unless such exercise would disqualify an option as an incentive
stock option).

11. Award and Delivery of Restricted Shares or Restricted Units

  (a) At the time an award of restricted shares or restricted units is made, the
Board of Directors shall establish a period of time (the 'Restricted Period")
applicable to such award.  Each award of restricted shares or restricted units
may have a different Restricted Period.  The Board of Directors may, in its sole
discretion, accelerate the Restricted Period or, at the time an award is made,
(i) prescribe conditions for the incremental lapse of restrictions during the
Restricted Period or (ii) provide for the lapse or termination of restrictions
upon the satisfaction of any condition or the occurrence of any event prescribed
by the Board of Directors in its sole discretion.  The Board of Directors may
also, in its sole discretion, shorten or terminate the Restricted Period or
waive any conditions for the lapse or termination of restrictions with respect
to all or any portion of the restricted shares or restricted units.
Notwithstanding the foregoing, all restrictions shall lapse or terminate with
respect to all restricted shares or restricted units upon death or total
disability (as defined in paragraph 13).

  (b) Upon the grant of an award of restricted shares, a stock certificate
representing a number of shares of Common Stock equal to the number of
restricted shares granted to a participant shall be registered in the
participant's name but shall be held in custody by the Company for the
participant's account.  The participant shall generally have the rights and
privileges of a shareholder as to such restricted shares, including the right to
vote such restricted shares, except that, subject to the provisions of paragraph
12, the following restrictions shall apply: (i) the participant shall not be
entitled to delivery of the certificate until the expiration or termination of
the Restricted Period and the satisfaction of any other conditions prescribed by
the Board of Directors; (ii) none of the restricted shares may be sold,
transferred, assigned, pledged, or otherwise encumbered or disposed of during
the Restricted Period and until the satisfaction of any other conditions
prescribed by the Board of Directors; and (iii) all of the restricted shares
shall be forfeited and all rights of the participant to such restricted shares
shall terminate without further obligation on the part of the Company unless the
participant has remained an employee of or, in the case of a

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non-employee participant, continues to perform services for the Company or any
of its subsidiaries until the expiration or termination of the Restricted Period
and the satisfaction of any other conditions prescribed by the Board of
Directors applicable to such restricted shares. At the discretion of the Board
of Directors, cash and stock dividends with respect to the restricted shares may
be either currently paid or withheld by the Company for the participant's
account, and interest may be paid on the amount of cash dividends withheld at a
rate and subject to such terms as determined by the Board of Directors. Cash or
stock dividends so withheld by the Board of Directors shall not be subject to
forfeiture. Upon the forfeiture of any restricted shares, such forfeited
restricted shares shall be transferred to the Company without further action by
the participant. The participant shall have the same rights and privileges, and
be subject to the same restrictions, with respect to any shares received
pursuant to paragraph 15.

  (c) Upon the expiration or termination of the Restricted Period and the
satisfaction of any other conditions prescribed by the Board of Directors or at
such earlier time as provided for in paragraph 12, the restrictions applicable
to the restricted shares shall lapse and a stock certificate for the number of
shares of Common Stock with respect to which the restrictions have lapsed shall
be delivered, free of all such restrictions, except any that may be imposed by
law, to the participant or the participant's beneficiary or estate, as the case
may be.  The Company shall not be required to deliver any fractional share of
Common Stock but will pay, in lieu thereof, the Fair Market Value (determined as
of the date the restrictions lapse or next preceding day on which sales are
traded) of such fractional share to the participant or the participant's
beneficiary or estate, as the case may be.  No payment will be required from the
participant upon the issuance or delivery of any restricted shares, except that
any amount necessary to satisfy applicable federal, state or local tax
requirements shall be withheld or paid promptly upon notification of the amount
due and prior to or concurrently with the issuance or delivery of a certificate
representing such shares.  The Board of Directors may permit such amount to be
paid in (i) shares of Common Stock previously owned by the participant, (ii) a
portion of the shares of Common Stock that otherwise would be distributed to
such participant upon the lapse of the restrictions applicable to the restricted
shares, or (iii) a combination of cash and shares of such Common Stock;
provided, however, that the Board of Directors shall have sole discretion to
consent to or disapprove of any such election (which consent or disapproval may
be given at any time after the election to which it relates).

  (d) In the case of an award of restricted units, no shares of Common Stock
shall be issued at the time the award is made, and the Company shall not be
required to set aside a fund for the payment of any such awards.  The
participant will have no rights as a shareholder of the Company with respect to
restricted units.

  Upon the expiration or termination of the Restricted Period and the
satisfaction of any other conditions prescribed by the Board of Directors or at
such earlier time as provided for in paragraph 12, the Company shall deliver to
the participant or the participant's beneficiary or estate, as the case may be,
one share of Common Stock for each restricted unit with respect to which the
restrictions have lapsed ('vested unit"), and cash equal to any Dividend
Equivalents credited with respect to each such vested unit and any interest
thereon; provided, however, that the Board of Directors may, in its sole
discretion, elect to pay cash or part cash and part Common Stock in lieu of
delivering only Common Stock for vested units.  If a cash payment is made in
lieu of delivering Common Stock, the amount of such cash payment shall be equal
to the Fair Market Value for the date on which the Restricted Period lapsed with
respect to such vested unit, or if there are no sales on such date, on the next
preceding day on which there were sales.  No payment will be required from the
participant upon the award of any restricted units, the crediting or payment of
any Dividend Equivalents, or the delivery of Common Stock or the payment of cash
in respect of vested units, except that any amount necessary to satisfy
applicable federal, state or local tax requirements shall be withheld or paid
promptly upon notification of the amount due.  The Board of Directors may permit
such amount to be paid in (i) shares of Common Stock previously owned by the
participant, (ii) a portion of the shares of Common Stock that otherwise would
be distributed to such participant in respect of vested units, or (iii) a
combination of cash and shares of such Common Stock; provided, however, that the
Board of Directors shall have sole discretion to consent to or disapprove of any
such election (which consent or disapproval may be given at any time after the
election to which it relates).

  (e) The restricted unit award agreement may permit a participant to request
that the payment of vested units (and Dividend Equivalents and the interest
thereon with respect to such vested units) be deferred beyond the payment date
specified in the agreement.  The Board of Directors shall, in its sole
discretion, determine whether to permit such deferral and to specify the terms
and conditions, which are not inconsistent with the 2000 Plan, to be contained
in the agreement.  In the event of such deferral, the Board of Directors may
determine that interest shall be

                                                                               7

<PAGE>

credited annually on the Dividend Equivalents, at a rate to be determined by the
Board of Directors. The Board of Directors may also determine to compound such
interest.

12. Termination of Employment

  (a) If the employment of an employee to whom an option, right or limited right
has been granted under the 2000 Plan shall be involuntarily terminated, then
except as set forth in paragraph 13, such option, right or limited right may,
subject to the provisions of the 2000 Plan, be exercised (to the extent that the
employee was entitled to do so at such involuntary termination of his
employment) at any time within three months after such involuntary termination,
provided, however, that any option, right or limited right held by an employee
whose employment is terminated for cause, as determined by the Board of
Directors in its sole discretion, shall forthwith terminate.  If the employment
of an employee to whom an option, right or limited right has been granted under
the 2000 Plan shall terminate for any other reason, then, except as provided in
paragraph 13, such option, right or limited right will immediately terminate;
provided, however, that in the case of an employee whose termination results
from retirement from active employment at or after age 65, such options, rights
and limited rights may be exercised within one year after such termination, but
in no case later than the date on which the option, right or limited right
terminates.

  (b) Unless otherwise determined by the Board of Directors, if an employee to
whom restricted shares or restricted units have been granted ceases to be an
employee of the Company or of a subsidiary prior to the end of the Restricted
Period and the satisfaction of any other conditions prescribed by the Board of
Directors for any reason other than death or total disability (as defined in
paragraph 13), the employee shall immediately forfeit all restricted shares and
restricted units as to which the Restricted Period has not then lapsed.  If such
employee ceases employment with the Company due to such employee's death or
total disability (as defined in paragraph 13), then all restrictions relating to
the restricted shares or restricted units shall immediately terminate.

  (c) Awards granted under the 2000 Plan shall not be affected by any change of
duties or position so long as the holder continues to be an employee of the
Company or any of its subsidiaries.  Any option, right, limited right,
restricted share or restricted unit agreement, or any rules and regulations
relating to the 2000 Plan, may contain such provisions as the Board of Directors
shall approve with reference to the determination of the date employment
terminates and the effect of leaves of absence.  Any such rules and regulations
with reference to any option agreement shall be consistent with the provisions
of the Code and any applicable rules and regulations thereunder.  Nothing in the
2000 Plan or in any award granted pursuant to the 2000 Plan shall confer upon
any employee any right to continue in the employ of the Company or any of its
subsidiaries or interfere in any way with the right of the Company or any such
subsidiary to terminate such employment at any time.

  (d) Notwithstanding anything else in the 2000 Plan to the contrary, if the
company employing an individual to whom an option, right, limited right,
restricted unit or restricted share has been granted under the 2000 Plan ceases
to be a subsidiary of the Company, then the Board of Directors may provide that
service with such employer or its direct or indirect subsidiaries in any
capacity shall be considered employment with the Company for purposes of the
2000 Plan.

13. Death or Total Disability of Employee

  If an employee to whom an option, right or limited right has been granted
under the 2000 Plan shall die or suffer a "total disability" while employed by
the Company, one of its subsidiaries, such option, right or limited right may be
exercised, to the extent that the employee was entitled to do so at the
termination of employment (including by reason of death or total disability), as
set forth herein or in option agreement (subject to the restrictions set forth
in paragraphs 8 and 9 with respect to persons subject to Section 16(b) of the
Exchange Act) by the employee, the legal guardian of the employee (unless such
exercise would disqualify an option as an incentive stock option), a legatee or
legatees of the employee under the employee's last will, or by the employee's
personal representatives or distributees, whichever is applicable, at any time
within one year after the date of the employee's death or total disability, but
in no case later than the date on which the option, right or limited right
terminates.  For purposes hereof, "total disability" is defined as a condition
which permits the employee to receive full benefits under the Company's long
term disability plan.  If employee is not eligible to participate in such plan
or no such plan is then

                                                                               8

<PAGE>

maintained, "total disability" means any physical or mental condition which
renders the employee unable to perform his or her duties to the satisfaction of
the Board of Directors and which condition may be expected to continue for more
than six months in the opinion of a physician selected by the Board of
Directors.

14. Awards to Non-employees

  Any non-employee of the Company who receives an award under the 2000 Plan
shall be subject to such constraints with respect to exercisability of awards
and forfeiture of awards as the Board of Directors, in its sole discretion, may
prescribe.

15. Adjustment upon Changes in Capitalization, etc.

  Notwithstanding any other provision of the 2000 Plan, the Board of Directors
may at any time make or provide for such adjustments to the 2000 Plan, to the
number and class of shares available thereunder or to any outstanding options,
rights, restricted shares or restricted units as it shall deem appropriate to
prevent dilution or enlargement of rights, including adjustments in the event of
distributions to holders of Common Stock other than a normal cash dividend,
changes in the outstanding Common Stock by reason of stock dividends, split-ups,
recapitalizations, mergers, consolidations, combinations or exchanges of shares,
separations, reorganizations, liquidations and the like.  In the event of any
offer to holders of Common Stock generally relating to the acquisition of their
shares, the Board of Directors may make such adjustment as it deems equitable in
respect of outstanding options, rights, limited rights and restricted units,
including in the Board of Directors' discretion revision of outstanding options,
rights, limited rights and restricted units so that they may be exercisable for
or payable in the consideration payable in the acquisition transaction.  No
adjustment shall be made in respect of an incentive stock option if such
adjustment would disqualify such option as an incentive stock option under
Section 422 of the Code and the Treasury Regulations thereunder.  No adjustment
shall be made in the minimum number of shares with respect to which an option
may be exercised at any time.  Any fractional shares resulting from such
adjustments to options, rights, limited rights or restricted units shall be
eliminated.

16. Effective Date

  The 2000 Plan shall be effective as of May 11, 2000 or such later date on
which the 2000 Plan is approved by the stockholders of the Company.  The Board
of Directors may, in its discretion, grant awards under the 2000 Plan, the
grant, exercise or payment of which shall be expressly subject to the conditions
that, to the extent required at the time of grant, exercise or payment, (i) if
the Company deems it necessary or desirable, a Registration Statement under the
Securities Act of 1933 with respect to such shares shall be effective, (ii) to
the extent such awards provide for the delivery of shares of Common Stock of the
Company, such shares shall have been listed on the Nasdaq NMS, subject to notice
of issuance, and (iii) any requisite approval or consent of any governmental
authority of any kind having jurisdiction over awards granted under the 2000
Plan shall be obtained.

17. Termination and Amendment

  The Board of Directors of the Company may suspend, terminate, modify or amend
the 2000 Plan, provided that any amendment that would increase the aggregate
number of shares that may be issued under the 2000 Plan, materially increase the
benefits accruing to participants under the 2000 Plan, or materially modify the
requirements as to eligibility for participation in the 2000 Plan shall be
subject to the approval of the Company's shareholders to the extent required by
Rule 16b-3, applicable law or any other governing rules or regulations, except
that any such increase or modification that may result from adjustments
authorized by paragraph 15 does not require such approval.  If the 2000 Plan is
terminated, the terms of the 2000 Plan shall, notwithstanding such termination,
continue to apply to awards granted prior to such termination.  In addition, no
suspension, termination, modification or amendment of the 2000 Plan may, without
the consent of the participant to whom an award shall theretofore have been
granted, adversely affect the rights of such participant under such award.

                                                                               9

<PAGE>

18. Written Agreements

  Each award of options, rights, limited rights, restricted shares or restricted
units shall be evidenced by a written agreement, executed by the participant and
the Company, which shall contain such restrictions, terms and conditions as the
Board of Directors may require.

19. Effect on Other Stock Plans

  The adoption of the 2000 Plan shall have no effect on awards made or to be
made pursuant to other stock plans covering employees or non-employees of the
Company, its subsidiaries, or any predecessors or successors thereto.

                                   /s/ Richard W. Talarico
                                   -----------------------
                                   Richard W. Talarico
                                   Chairman of the Board

                                   /s/ Brian K. Blair
                                   ------------------
                                   Brian K. Blair
                                   Director

                                   /s/ Anthony L. Bucci
                                   --------------------
                                   Anthony L. Bucci
                                   Director

                                   /s/ William C. Kavan
                                   --------------------
                                   William C. Kavan
                                   Director

                                   /s/ James S. Kelly, Jr.
                                   -----------------------
                                   James S. Kelly, Jr.
                                   Director

                                   /s/ Anthony C. Vickers
                                   ----------------------
                                   Anthony C. Vickers
                                   Director

                                                                              10<PAGE>   1
                                                                 EXHIBIT 10.10

                              EMPLOYMENT AGREEMENT

         THIS EMPLOYMENT AGREEMENT (the "Agreement") is effective as of December
14, 1999 (the "Effective Date"), by and between HEARx Ltd., a Delaware
corporation ("HEARx"), and Paul A. Brown, M.D. ("Executive").

                                    RECITALS

        1.      HEARx operates a network of hearing care centers which provide
a full range of audiological products and services for the hearing impaired (the
"Business");

        2.      Executive is recognized as having experience in the management
and operation of companies that are in the Business;

        3.      HEARx's Board of Directors (the "Board") has determined that it
is in the best interests of HEARx and its stockholders to assure that HEARx will
have the continued dedication of Executive, notwithstanding the possibility,
threat or occurrence of a Change in Control (as defined in Section 4.7);

        4.      The Board believes it is imperative (a) to diminish the
inevitable and significant distractions of Executive and dilution of the time of
Executive, by virtue of the personal uncertainties and risks created by a
pending or threatened Change in Control, (b) to encourage Executive's full
attention and dedication to HEARx currently and in the event of any threatened
or pending Change in Control and (c) to provide Executive with compensation
arrangements in the event of a Change in Control which provide Executive with
financial security, which are competitive with those of other companies, and
which ensure that Executive receives the compensation and benefits intended to
be provided to Executive by HEARx through this Agreement and HEARx's various
employee benefit and compensation plans and arrangements without regard to any
Excise Tax (as defined in Section 4.11(a)); and

        5.      To accomplish the objectives described in the two immediately
preceding recitals, the Board desires to cause HEARx to enter into this
Agreement as set forth herein.

        NOW, THEREFORE, in consideration of the premises, the mutual covenants
and agreements contained in this Agreement, and other good and valuable
consideration, the receipt and sufficiency of which are acknowledged by the
parties, HEARx and Executive agree as follows:

                                    ARTICLE I
                        EMPLOYMENT, REPORTING AND DUTIES

        1.1     EMPLOYMENT. On the terms and subject to the conditions of this
Agreement, HEARx hereby employs and engages the services of Executive to serve
as, and Executive agrees to serve as and perform the functions of, Chairman of
the Board and Chief Executive Officer (collectively, the "Office") of HEARx for
the Term (as defined in Section 4.1) and for the compensation and benefits
stated herein.

<PAGE>   2

        1.2     MAJOR RESPONSIBILITIES; AUTHORITY. Executive shall have the
authorities, duties, responsibilities and status (including offices, titles and
reporting requirements) usually associated with the Office of companies having
operations and assets similar in nature and value to the operations and assets
of HEARx and at least commensurate in all material respects with the most
significant of those held, exercised and assigned at any time during the 90-day
period immediately preceding the Effective Date, and such other duties as the
Board shall determine and Executive shall accept from time to time.

        1.3     EXTENT OF SERVICE. During the Term, and excluding any periods of
vacation and sick leave to which Executive is entitled, Executive agrees to
devote reasonable time and energies to the Business consistent with past
practice and shall not, during the Term, be engaged in any business activity
which would interfere or prevent Executive from carrying out his duties under
this Agreement; provided, however, that this Section 1.3 shall not be construed
as preventing Executive from investing his assets in such form or manner as will
not require services on the part of Executive in the operation of the affairs of
any company in which such investments are made.

        1.4     LOCATION. Executive shall not be required to move from
Executive's home in Palm Beach County, Florida in the performance of his duties,
responsibilities and obligations hereunder.

                                   ARTICLE II
                         COMPENSATION AND RELATED ITEMS

        2.1     COMPENSATION.

                (a)     BASE SALARY. Until a Change in Control occurs, as
compensation and in consideration for the services to be rendered by Executive
under this Agreement and for the performance by Executive of the usual
obligations of such employment, HEARx agrees to pay Executive, and Executive
agrees to accept, a base salary (the "Base Salary") effective January 1, 2000 of
at least $300,000 per annum which shall be paid in accordance with HEARx's
standard payroll practice. Executive's Base Salary shall be subject to review
annually by the Board in accordance with HEARx's review policies and practices
for executives as in effect at the time of any such review. If a Change in
Control occurs, Executive's Base Salary for the next calendar year and each
subsequent calender year during the Term must increase by at least 20% over his
Base Salary during the previous calendar year.

                (b)     BONUS. At the end of each calendar year during the Term,
the Executive shall be eligible to receive an annual bonus (the "Annual Bonus"),
based upon a performance evaluation criteria which shall be consistent with the
criteria used by the Board for its current evaluation of Executive; provided
that, if, in any calender year during the Term, HEARx achieves the net income
target approved by the Board for such calendar year (the "Net Income Target")
the Executive must receive an Annual Bonus equal to at least 50% of Executive's
Base Salary for the previous calender year. For the purposes of this Agreement,
net income must be determined in accordance with generally accepted accounting
principles, consistently applied.

                (c)     PERCENTAGE OF NET INCOME. If, in any calender year
during the Term, HEARx achieves the Net Income Target approved by the Board for
such calendar year, no more than 100

                                       2
<PAGE>   3

days after the end of such calender year, HEARx must pay to Executive an amount
equal to 1% of HEARx's net income for such calender year.

                (d)     1999 BONUS. Notwithstanding the foregoing, for the
calendar year ended December 31, 1999, the Executive's Annual Bonus must not be
less than $125,000.

                (e)     ADDITIONAL COMPENSATION. In addition to the Base Salary
provided for in Section 2.1(a), Executive or Executive's family, as the case may
be, shall be entitled to:

                        (i)     participate in, and shall receive all benefits
        under:

                                (A)     any and all welfare benefit and similar
                        employee benefit plans, programs, arrangements or
                        policies that are generally made available by HEARx and
                        its affiliates (as defined in Section 4.11(l)) now or at
                        any time in the future to other key employees or retired
                        key employees, including any hospitalization, medical,
                        prescription, dental, disability, salary continuance,
                        individual life insurance, executive life insurance,
                        group life insurance, accidental death insurance and
                        travel accident insurance plans, programs, arrangements
                        and policies; and

                                (B)     in addition to the incentive
                        compensation provided for in Section 2.1(b), Executive
                        will be entitled to any and all incentive, savings,
                        retirement, profit sharing, pension, stock option,
                        restricted stock, employee stock ownership, supplemental
                        executive retirement and other employee benefit plans,
                        programs, arrangements and policies that are generally
                        made available by HEARx and its affiliates now or at any
                        time in the future to officers and other key employees;
                        additionally, pension benefits from HEARx when Executive
                        is eligible for and elects retirement shall be
                        calculated so as to provide a benefit based on actual
                        credited years and months of service with HEARx plus a
                        benefit calculated equivalent to an added ten years of
                        credited service;

                        (ii)    annual vacations and sick leave in accordance
        with the vacation and sick leave policies of HEARx and its affiliates
        that are now or at any time in the future in effect with respect to
        officers and other key employees, during which time Executive's
        compensation shall be paid in full; and

                        (iii)   fringe benefits in accordance with the fringe
        benefit policies of HEARx and its affiliates that are now or at any time
        in the future in effect with respect to officers and other key
        employees.

        2.2     EXPENSES. HEARx agrees that, during the Term, Executive shall be
allowed reasonable and necessary business expenses in connection with the
performance of his duties hereunder within guidelines established by the Board
as in effect at any time with respect to key employees ("Business Expenses"),
including reasonable and necessary expenses for food, travel, lodging,
entertainment and other items in the promotion of the Business within such
guidelines. HEARx shall promptly reimburse Executive for all Business Expenses
incurred by Executive upon Executive's presentation to HEARx of an itemized
account thereof, together with receipts, vouchers

                                       3
<PAGE>   4

or other supporting documentation. After termination or expiration of the Term,
however such termination or expiration may come about, Executive shall have
ninety (90) days after the date of such termination or expiration to submit
Business Expenses incurred during the Term to HEARx for reimbursement.

                                   ARTICLE III
                                   EXCULPATION

        HEARx agrees that Executive will not be liable for any losses, expenses,
costs or damages caused by or resulting from the recommendations, suggestions,
actions, errors, omissions or mistakes of Executive undertaken or proposed by
Executive if Executive acted in good faith and in a manner he reasonably
believed to be in or not opposed to the best interests of HEARx. Executive's
rights under this Article III shall not be deemed exclusive of, but shall be
cumulative with, any and all other rights (including rights of indemnification
and advancement of expenses) to which Executive may now or at any time in the
future be entitled under applicable law, HEARx's certificate of incorporation,
HEARx's bylaws, any agreement (including this Agreement), any vote of
stockholders, any resolution of directors, or otherwise. Nothing contained in
this Article III will prevent the termination of Executive's employment in
accordance with the provisions of this Agreement.

                                   ARTICLE IV
                              TERM AND TERMINATION

        4.1     TERM. Subject to Section 4.2, the term of this Agreement shall
be for five (5) years commencing on the Effective Date ("Term"); provided,
however, that if a Change in Control occurs prior to the second anniversary of
the Effective Date, the Term shall be extended to end on the fifth anniversary
of such Change in Control.

        4.2     TERMINATION OF TERM. Except as may otherwise be provided herein,
the Term shall terminate:

                (a)     Thirty (30) days after written notice of termination is
given by either party to the other; or

                (b)     On Executive's death or, at HEARx's option, upon
Executive's becoming Disabled (as defined in Section 4.9).

Any notice of termination given by HEARx to Executive under Section 4.2(a) above
shall specify whether such termination is with or without Cause (as defined in
Section 4.4). Any notice of termination given by Executive to HEARx under
Section 4.2(a) above shall specify whether such termination is made with or
without Good Reason (as defined in Section 4.5) or Good Reason-Change in Control
(as defined in Section 4.6).

                                       4
<PAGE>   5

        4.3    OBLIGATIONS OF HEARX UPON TERMINATION.

               (a) CAUSE; WITHOUT GOOD REASON; AND WITHOUT GOOD REASON-CHANGE IN
CONTROL. If HEARx terminates the Term with Cause pursuant to Section 4.2(a), or
if Executive terminates the Term without Good Reason or without Good
Reason-Change in Control pursuant to Section 4.2(a), the Term shall terminate
without further obligations to Executive, other than those obligations owing or
accrued to, vested in, or earned by Executive through the date of termination,
including:

                        (i)     Executive's Base Salary in effect at the time of
        such termination through the date of termination to the extent it
        remains unpaid; and

                        (ii)    all compensation previously deferred (together
        with any accrued interest thereon) and not yet paid by HEARx, and any
        accrued vacation pay not yet paid by HEARx; and

                        (iii)   all other amounts or benefits owing or accrued
        to, vested in or earned by Executive through the date of termination
        under the then existing or applicable plans, programs, arrangements and
        policies of HEARx and its affiliates, including any such plans,
        programs, arrangements or policies described in Section 2.1(b).

The obligations owing or accrued to, vested in, or earned by Executive through
the date of termination, including such amounts and benefits specified in
clauses (i), (ii) and (iii) of this Section 4.3(a), are collectively referred to
as the "Accrued Obligations." The aggregate amount of such obligations owing or
accrued to, vested in, or earned by Executive through the date of termination,
including the Accrued Obligations, shall be paid by HEARx to Executive in
accordance with the plans, programs or agreements under which the Accrued
Obligations were earned.

                (b)     GOOD REASON. If Executive terminates the Term with Good
Reason pursuant to Section 4.2(a):

                        (1)     HEARx shall pay the aggregate of the following
        amounts to Executive in one lump sum within thirty (30) days after the
        date of such termination or in a manner and at such later time as
        specified by Executive, provided that all such payments must be made no
        later than the end of the Term as in effect immediately before the date
        of such termination:

                                (i)     to the extent not theretofore paid,
                Executive's Base Salary in effect at the time of such
                termination (but prior to giving effect to any reduction of
                Executive's Base Salary which may have precipitated such
                termination) for the duration of the Term as in effect
                immediately before the date of such termination; and

                                (ii)    if more than three years of the Term
                have elapsed on the date of such termination, an amount equal to
                one (1) times Executive's Base Salary in

                                       5
<PAGE>   6

                effect at the time of such termination (but prior to giving
                effect to any reduction of Executive's Base Salary which may
                have precipitated such termination); and

                                (iii)   an amount equal to (A) one (1) times the
                average of all bonus, profit sharing and other incentive
                payments made by HEARx to Executive in respect of the two (2)
                calendar years immediately preceding such termination, and (B)
                the pro-rata share of Executive's target bonus, profit sharing
                and other incentive payments for the calendar year in which such
                termination occurred based upon the proportion that the number
                of days that have elapsed in such calendar year up to and
                including the date of termination bears to 365; and

                                (iv)    in the case of compensation previously
                deferred by Executive, all amounts previously deferred (together
                with any accrued interest thereon) and not yet paid by HEARx,
                and any accrued vacation pay not yet paid by HEARx; and

                                (v)     all other amounts or benefits owing or
                accrued to, vested in, or earned by Executive through the date
                of termination under the then existing or applicable plans,
                programs, arrangements and policies of HEARx and its affiliates,
                including any such plans, programs, arrangements or policies
                described in Section 2.1(b); and

                                (vi)    any and all other Accrued Obligations
                not otherwise described in clauses (i), (ii), (iii) or (iv) of
                this Section 4.3(b)(1); and

                        (2)     Executive shall receive the following additional
        benefits:

                                (i)     for a 548-day period commencing on the
                date of termination of the Term (the "Good Reason Benefits
                Period"), Executive shall continue to be covered under each of
                the medical, dental, life insurance, accident benefit and other
                welfare benefit (exclusive of short- and long-term disability
                benefit) programs of HEARx in effect and applicable to Executive
                immediately prior to such termination, and HEARx shall pay the
                costs therefor except to the extent that Executive already pays
                all or any portion thereof; provided, however, that if Executive
                obtains any of the welfare benefits provided for under this
                sentence from a new employer, HEARx's obligation to provide such
                welfare benefits should be secondary to that of such new
                employer. Executive's coverage under HEARx's medical and dental
                programs for the Good Reason Benefits Period shall be included
                in the calculation of the "Period of Coverage" to be provided to
                Executive pursuant to Section 4980B(f)(2)(B) of the Internal
                Revenue Code of 1986, as amended (the "Code"), and Executive's
                right to "Continuation Coverage" under Section 4980B(f)(2) of
                the Code. The amount of the "Applicable Premium" to be charged
                Executive under Section 4980B(f)(4) for Continuation Coverage
                shall never be greater than the monthly amount charged Executive
                for medical and dental coverage prior to the termination of the
                Term; and

                                (ii)    shall be fully vested in any and all
                options, restricted stock, stock appreciation rights, cash
                equivalent stock appreciation rights or any other

                                       6
<PAGE>   7

                similar rights based on the fair market value of or otherwise
                relating to HEARx's common stock (collectively, "Stock Incentive
                Rights") which are outstanding immediately prior to the
                termination of the Term, and Executive may exercise any such
                vested Stock Incentive Rights during the two year period
                commencing on the date of termination of the Term,
                notwithstanding any provision otherwise in any plan or agreement
                awarding or granting any Stock Incentive Right to Executive; and

                                (iii)   shall be fully vested in any and all
                benefits accrued under any "employee pension benefit plan," as
                defined in Section 3(2)(A) of the Employee Retirement Income
                Security Act of 1947, as amended ("ERISA"), of HEARx
                ("Retirement Plan"); and

                                (iv)    shall receive credit in the calculation
                of the accrued benefit under HEARx's Pension Plan ("Pension
                Plan") for (A) the compensation to be paid to Executive pursuant
                to Section 4.3(b)(1)(ii) and (B) one (1) year of service in
                addition to the service accrued by Executive through the date
                that the Term is terminated. If the benefits set forth in this
                clause would cause the Pension Plan to lose its qualification
                under Section 401(a) of the Code, then the benefits accrued
                hereunder shall accrue to Executive under HEARx's Supplemental
                Executive Retirement Plan ("SERP").

                (c)     WITHOUT CAUSE BEFORE A CHANGE IN CONTROL. If HEARx
terminates the Term without Cause before the occurrence of a Change in Control
pursuant to Section 4.2(a):

                        (1)     HEARx shall pay the aggregate of the following
        amounts to Executive in one lump sum within thirty (30) days after the
        date of such termination or in a manner and at such later time as
        specified by Executive, provided that all such payments must be made no
        later than the end of the Term as in effect immediately before the date
        of such termination:

                                (i)     to the extent not theretofore paid,
                Executive's Base Salary in effect at the time of such
                termination for the duration of the Term as in effect
                immediately before the date of such termination; and

                                (ii)    if more than three years of the Term
                have elapsed on the date of such termination, an amount equal to
                one (1) times Executive's Base Salary in effect at the time of
                such termination; and

                                (iii)   an amount equal to the sum of (A) one
                (1) times the average of all bonus, profit sharing and other
                incentive payments made by HEARx to Executive in respect of the
                two calendar years immediately preceding such termination, and
                (B) the pro-rata share of Executive's target bonus, profit
                sharing and other incentive payments for the calendar year in
                which such termination occurred based upon the proportion that
                the number of days that have elapsed in such calendar year up to
                and including the date of termination bears to 365; and

                                       7
<PAGE>   8

                                (iv)    in the case of compensation previously
                deferred by Executive, all amounts previously deferred (together
                with any accrued interest thereon) and not yet paid by HEARx,
                and any accrued vacation pay not yet paid by HEARx; and

                                (v)     all other amounts or benefits owing or
                accrued to, vested in, or earned by Executive through the date
                of termination under the then existing or applicable plans,
                programs, arrangements and policies of HEARx and its affiliates,
                including any such plans, programs, arrangements or policies
                described in Section 2.1(b); and

                                (vi)    any and all other Accrued Obligations
                not otherwise described in clauses (i), (ii), (iii) or (iv) of
                this Section 4.3(b)(1); and

                        (2)    Executive shall receive the following additional
        benefits:

                                (i)     for a 548-day period commencing on the
                date of termination of the Term (the "Without Cause Benefits
                Period"), Executive shall continue to be covered under each of
                the medical, dental, life insurance, accident benefit and other
                welfare benefit (exclusive of short- and long-term disability
                benefit) programs of HEARx in effect and applicable to Executive
                immediately prior to such termination, and HEARx shall pay the
                costs therefor except to the extent that Executive already pays
                all or any portion thereof; provided, however, that if Executive
                obtains any of the welfare benefits provided for under this
                sentence from a new employer, HEARx's obligation to provide such
                welfare benefits will thereupon cease. Executive's coverage
                under HEARx's medical and dental programs for the Without Cause
                Benefits Period shall be included in the calculation of the
                "Period of Coverage" to be provided to Executive pursuant to
                Section 4980B(f)(2)(B) of the Code, and Executive's right to
                "Continuation Coverage" under Section 4980B(f)(2) of the Code.
                The amount of the "Applicable Premium" to be charged Executive
                under Section 4980B(f)(4) for Continuation Coverage shall never
                be greater than the monthly amount charged Executive for medical
                and dental coverage prior to the termination of the Term; and

                                (ii)    shall be fully vested in any and all
                Stock Incentive Rights which are outstanding immediately prior
                to the termination of the Term, and Executive may exercise any
                such vested Stock Incentive Rights during the two year period
                commencing on the date of termination of the Term,
                notwithstanding any provision otherwise in any plan or agreement
                awarding or granting any Stock Incentive Right to Executive; and

                                (iii)   shall be fully vested in any and all
                benefits accrued under any Retirement Plan; and

                                (iv)    shall receive credit in the calculation
                of the accrued benefit under HEARx's Pension Plan for (A) the
                compensation to be paid to Executive pursuant to Section
                4.3(c)(1)(ii) and (B) one (1) year of service in addition to the
                service accrued by Executive through the date that the Term is
                terminated. If the

                                       8
<PAGE>   9

                benefits set forth in this clause would cause the Pension Plan
                to lose its qualification under Section 401(a) of the Code, then
                the benefits accrued hereunder shall accrue to Executive under
                HEARx's SERP.

                (d)     GOOD REASON-CHANGE IN CONTROL; WITHOUT CAUSE ON OR
AFTER A CHANGE IN CONTROL. If Executive terminates the Term with Good
Reason-Change in Control pursuant to Section 4.2(a), or if HEARx terminates the
Term without Cause on or after the occurrence of a Change in Control pursuant to
Section 4.2(a):

                        (1)     HEARx shall pay the aggregate of the following
        amounts to Executive in one lump sum within thirty (30) days after the
        date of such termination or in a manner and at such later time as
        specified by Executive, provided that all such payments must be made no
        later than the end of the Term as in effect immediately before the date
        of such termination:

                                (i)     to the extent not theretofore paid,
                Executive's Base Salary in effect at the time of such
                termination (but prior to giving effect to any reduction of
                Executive's Base Salary which may have precipitated such
                termination) for the duration of the Term as in effect
                immediately before the date of such termination; and

                                (ii)    an amount equal to the sum of (A) the
                greater of (a) Executive's Base Salary times the number of years
                remaining in the original five-year term of this Agreement or
                (b) three (3) times Executive's Base Salary in effect at the
                time of such termination (but prior to giving effect to any
                reduction therein which may have precipitated such termination),
                (B) three (3) times the average of all bonus, profit sharing and
                other incentive payments made by HEARx to Executive in respect
                of the two (2) calendar years immediately preceding such
                termination and (C) the pro-rata share of Executive's target
                bonus, profit sharing and other incentive payments for the
                calendar year in which such termination occurred based upon the
                proportion that the number of days that have elapsed in such
                calendar year up to and including the date of termination bears
                to 365; and

                                (iii)   in the case of compensation previously
                deferred by Executive, all amounts previously deferred (together
                with any accrued interest thereon) and not yet paid by HEARx,
                and any accrued vacation pay not yet paid by HEARx; and

                                (iv)    all other amounts or benefits owing or
                accrued to, vested in, or earned by Executive through the date
                of termination under the then existing or applicable plans,
                programs, arrangements and policies of HEARx and its affiliates,
                including any such plans, programs, arrangements or policies
                described in Section 2.1(b); and

                                (v)     any and all other Accrued Obligations
                not otherwise described in clauses (i), (ii), (iii) or (iv) of
                this Section 4.3(d)(1); and

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<PAGE>   10

                        (2)     Executive shall receive the following additional
        benefits:

                                (i)     for the three year period commencing on
                the date of termination of the Term (the "Three Year Period"),
                Executive shall continue to be covered under each of the
                medical, dental, life insurance, accident benefit and other
                welfare benefit (exclusive of short- and long-term disability
                benefit) programs of HEARx in effect and applicable to Executive
                immediately prior to the time of such termination, and HEARx
                shall pay the costs therefor except to the extent that Executive
                already pays all or any portion thereof; provided, however, that
                if Executive obtains any of the welfare benefits provided for
                under this sentence from a new employer, HEARx's obligation to
                provide such welfare benefits shall be secondary to that of such
                new employer. Executive's coverage under HEARx's medical and
                dental programs for the Three Year Period shall not be included
                in the calculation of the "Period of Coverage" to be provided to
                Executive pursuant to Section 4980B(f)(2)(B) of the Code, and
                Executive's right to "Continuation Coverage" under Section
                4980B(f)(2) of the Code for medical and dental benefits under
                HEARx's medical and dental programs shall commence on the first
                day following the end of the Three Year Period. The amount of
                the "Applicable Premium" to be charged Executive under Section
                4980B(f)(4) for Continuation Coverage shall never be greater
                than the monthly amount charged Executive for medical and dental
                coverage during the Three Year Period; and

                                (ii)    shall be fully vested in any and all
                Stock Incentive Rights which are outstanding immediately prior
                to the termination of the Term, and Executive may exercise any
                such vested Stock Incentive Rights during the Three Year Period,
                notwithstanding any provision otherwise in any plan or agreement
                awarding or granting any Stock Incentive Right to Executive; and

                                (iii)   shall be fully vested in any and all
                benefits accrued under any Retirement Plan; and

                                (iv)    shall receive credit in the calculation
                of the accrued benefit under the Pension Plan for (A) the
                compensation to be paid to Executive pursuant to Section
                4.3(d)(1)(ii) and (B) three (3) years of service in addition to
                the service accrued by Executive through the date that the Term
                is terminated. If the benefits set forth in this clause would
                cause the Pension Plan to lose its qualification under Section
                401(a) of the Code, then the benefits accrued hereunder shall
                accrue to Executive under the SERP, and if the Executive is not
                a participant in the SERP, the actual lump sum equivalent of the
                benefit described in this clause shall be paid in accordance
                with Section 4.3(d)(1).

                (e)     DEATH. If Executive's employment is terminated under
Section 4.2(b) by reason of Executive's death, HEARx shall pay to Executive's
legal representatives the full amount of the obligations owing or accrued to,
vested in or earned by Executive through the date of Executive's death,
including the Accrued Obligations in accordance with the plans, programs or
agreements under which the Accrued Obligations were earned. Notwithstanding the
provisions of

                                       10
<PAGE>   11

any agreement pursuant to which Stock Incentive Rights were granted, any granted
but unvested Stock Incentive Rights will automatically vest on the date of
Executive's death. Executive's legal representative may exercise any Stock
Incentive Rights which vest pursuant to this Section 4.3(e) during a one year
period following Executive's death. Anything in this Agreement to the contrary
notwithstanding, Executive's family shall be entitled to receive benefits
provided by HEARx and any of its affiliates to surviving families under the then
existing or applicable plans, programs or arrangements and policies of HEARx and
its affiliates.

                (f)     DISABILITY. If Executive's employment is terminated
under Section 4.2(b) by reason of Executive's becoming Disabled, HEARx shall pay
to Executive or Executive's legal representative the full amount of the
obligations owing or accrued to, vested in or earned by Executive through the
date of termination, including the Accrued Obligations in accordance with the
plans, programs or agreements under which the Accrued Obligations were earned.
Notwithstanding the provisions of any agreement pursuant to which Stock
Incentive Rights were granted, any granted but unvested Stock Incentive Rights
will automatically vest on the date of Executive's termination by reason of his
becoming Disabled. Executive or Executive's legal representative may exercise
any Stock Incentive Rights which vest pursuant to this Section 4.3(f) during a
one year period following Executive's termination by reason of his becoming
Disabled.

        4.4     CAUSE. As used in this Agreement, the term "Cause" means (a)
willful misconduct by Executive or gross neglect by Executive of his duties as
an employee, officer or director of HEARx which continues for more than thirty
(30) days after Executive's receipt of written notice from the Board to
Executive specifically identifying the willful misconduct or gross negligence of
Executive and directing Executive to discontinue the same, (b) the commission by
Executive of a crime constituting a felony or (c) the commission by Executive of
an act, other than an act taken in good faith within the course and scope of
Executive's employment, which is directly detrimental to HEARx and exposes HEARx
to material liability.

        4.5     GOOD REASON. As used in this Agreement, the term "Good Reason"
means the breach of any material provision of this Agreement by HEARx (including
any removal of Executive, without Cause, from the position of the Office during
the Term) which is not cured within thirty (30) days after written notice from
Executive to HEARx specifically identifying such breach; provided, however, that
the term "Good Reason" shall not include any breach of any provision of this
Agreement that occurs after the occurrence of a Change in Control.

        4.6     GOOD REASON-CHANGE IN CONTROL.

                (a)     Except as provided in Section 4.6(b), as used in this
Agreement, the term "Good Reason-Change in Control" means after the occurrence
of a Change in Control, a determination by Executive that any one or more of the
following events has occurred:

                        (i)     a material change in the nature of Executive's
        Office, including his authorities, duties, responsibilities or status
        (including offices, titles or reporting requirements), from those in
        effect immediately prior to the Change in Control; or

                                       11
<PAGE>   12

                        (ii)    the relocation of Executive's place of
        employment to a location in excess of fifty (50) miles from the place of
        Executive's employment immediately prior to the Change in Control,
        except for required travel on HEARx business to an extent substantially
        equivalent to Executive's business travel obligations immediately prior
        to the Change in Control; or

                        (iii)   any reduction by HEARx of Executive's Base
        Salary, or a material reduction in his bonus, profit sharing or other
        incentive benefits, from those in effect immediately prior to the Change
        in Control; or

                        (iv)    the failure by HEARx to increase Executive's
        Base Salary in a manner consistent (both as to frequency and percentage
        increase) with (A) HEARx's practices in effect immediately prior to the
        Change in Control with respect to similarly positioned employees or (B)
        HEARx's practices implemented subsequent to the Change in Control with
        respect to similarly positioned employees, whichever is more favorable
        to Executive; or

                        (v)     the failure of HEARx to continue in effect
        Executive's participation in (A) HEARx's employee benefit plans,
        programs, arrangements and policies, at a level substantially equivalent
        in value to and on a basis consistent with the relative levels of
        participation of other similarly positioned employees, as in effect
        immediately prior to the Change in Control or (B) HEARx's employee
        benefit plans, programs, arrangements and policies implemented
        subsequent to the Change in Control with respect to similarly positioned
        employees, whichever is more favorable to Executive; or

                        (vi)    the failure of HEARx to obtain from a successor
        (including a successor to a material portion of the business or assets
        of HEARx) a satisfactory assumption in writing of HEARx's obligations
        under this Agreement; or

                        (vii)   the failure of HEARx to continue to provide
        Executive with office space, related facilities and support personnel
        (including administrative and secretarial assistance) that are both
        commensurate with the Office and Executive's responsibilities to and
        position with HEARx immediately prior to the Change in Control and not
        materially dissimilar to the office space, related facilities and
        support personnel provided to other key executive officers of HEARx; or

                        (viii)  HEARx notifies Executive of HEARx's intention
        not to observe or perform one or more of the obligations of HEARx under
        this Agreement; or

                        (ix)    HEARx breaches any provision of this Agreement
        and such breach is not cured within thirty (30) days after HEARx's
        receipt of notice thereof from Executive.

                (b)     If, after the occurrence of a Change in Control,
Executive receives a written description from HEARx of the nature of Executive's
Office thereafter, stating Executive's authorities, duties, responsibilities,
status, salary, bonus and other employee benefits, or job location, and
Executive accepts such new authorities, duties, responsibilities, status,
salary, bonus and other employee benefits, or job location ("New Office") with
HEARx without determining that

                                       12
<PAGE>   13

the New Office causes a Good Reason-Change in Control as set forth in Section
4.6(a), then for the remaining Term the New Office shall be the authorities,
duties, responsibilities, status, salary, bonus and other employee benefits, or
job location to be used by Executive in determining whether a Good Reason-Change
in Control occurs thereafter pursuant to Section 4.6(a).

        4.7     CHANGE IN CONTROL. As used herein, the term "Change in Control"
shall mean the occurrence with respect to HEARx of any of the following events:

                (a)     a report on Schedule 13D is filed with the Securities
and Exchange Commission (the "SEC") pursuant to Section 13(d) of the Securities
Exchange Act of 1934, as amended (the "Exchange Act"), disclosing that any
person, entity or group (within the meaning of Section 13(d) or 14(d) of the
Exchange Act), other than HEARx (or one of its subsidiaries) or any employee
benefit plan sponsored by HEARx (or one of its subsidiaries), is the beneficial
owner (as such term is defined in Rule 13d-3 promulgated under the Exchange
Act), directly or indirectly, of 30% or more of the outstanding common stock of
HEARx or the combined voting power of the then outstanding securities of HEARx;

                (b)     a report is filed by HEARx disclosing a response to
either Item 6(e) of Schedule 14A of Regulation 14A promulgated under the
Exchange Act, Item 1 of Form 8-K promulgated under the Exchange Act, or any
similar reporting requirement hereafter promulgated by the SEC;

                (c)     any person, entity or group (within the meaning of
Section 13(d) or Section 14(d) of the Exchange Act), other than HEARx (or one of
its subsidiaries) or any employee benefit plan sponsored by HEARx (or one of its
subsidiaries), shall purchase securities pursuant to a tender offer or exchange
offer to acquire any common stock of HEARx (or securities convertible into
common stock) for cash, securities or any other consideration, provided that
after consummation of the offer, the person, entity or group in question is the
beneficial owner (as such term is defined in Rule 13d-3 promulgated under the
Exchange Act), directly or indirectly, of 30% or more of the combined voting
power of the then outstanding securities of HEARx (as determined under paragraph
(d) of Rule 13d-3 promulgated under the Exchange Act, in the case of rights to
acquire common stock);

                (d)     the stockholders of HEARx shall approve:

                        (i)     any merger, consolidation or reorganization of
        HEARx:

                                (A)     in which HEARx is not the continuing or

                surviving corporation,

                                (B)     pursuant to which common stock of HEARx
                would be converted into cash, securities or other property,

                                (C)     with an entity which, prior to such
                merger, consolidation or reorganization, owned 20% or more of
                the combined voting power of the then outstanding securities of
                HEARx, or

                                       13
<PAGE>   14

                                (D)     in which HEARx will not survive as an
                independent, publicly owned corporation;

                        (ii)    any sale, lease, exchange or other transfer (in
        one transaction or a series of related transactions) of all or
        substantially all the assets of HEARx, or

                        (iii)   any liquidation or dissolution of HEARx;

                (e)     the stockholders of HEARx shall approve a merger,
consolidation, reorganization, recapitalization, exchange offer, purchase of
assets or other transaction after the consummation of which any person, entity
or group (within the meaning of Section 13(d) or Section 14(d) of the Exchange
Act) would own beneficially in excess of 30% of the outstanding common stock of
HEARx or in excess of 30% of the combined voting power of the then outstanding
securities of HEARx;

                (f)     HEARx's common stock is listed on none of the American
Stock Exchange, New York Stock Exchange and NASDAQ National Market System as a
result of a going-private transaction; or

                (g)     during any period of two consecutive years, the
individuals who at the beginning of such period constituted the Board cease for
any reason to constitute a majority of the Board, unless the election or
nomination for election by HEARx's stockholders of each new director during any
such two-year period was approved by the vote of two-thirds of the directors
then still in office who were directors at the beginning of such two-year
period.

        4.8     DISABLED. As used herein, "Disabled" or "Disability" shall mean
a mental or physical impairment which, in the reasonable opinion of a qualified
doctor selected by HEARx, renders Executive unable to perform with reasonable
diligence the ordinary functions and duties of Executive on a full-time basis in
accordance with the terms of this Agreement, which inability continues for a
period of not fewer than 180 consecutive days.

        4.9     RETURN OF MATERIALS; CONFIDENTIAL INFORMATION. In the event of
any termination of the Term, Executive shall promptly deliver to HEARx all
lists, books, records, literature, products and any other materials owned or
provided by HEARx in connection with Executive's employment hereunder. Executive
shall not at any time during or after the Term hereof use for himself or others,
or divulge to others, any secret or confidential information, knowledge or data
of HEARx obtained by Executive as a result of his employment unless authorized
by the Board.

        4.10    CERTAIN ADDITIONAL PAYMENTS BY HEARX.

                (a)     Anything in this Agreement to the contrary
notwithstanding, if it shall be determined that any payment or distribution by
HEARx or any of its affiliates to or for the benefit of Executive, whether paid
or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise (any such payments or distributions being individually
referred to herein as a "Payment," and any two or more of such payments or
distributions being referred to herein as

                                       14
<PAGE>   15

"Payments"), would be subject to the excise tax imposed by Section 4999 of the
Code (such excise tax, together with any interest thereon, any penalties,
additions to tax, or additional amounts with respect to such excise tax, and any
interest in respect of such penalties, additions to tax or additional amounts,
being collectively referred herein to as the "Excise Tax"), then Executive shall
be entitled to receive and HEARx shall make an additional payment or payments
(individually referred to herein as a "Gross-Up Payment," and any two or more of
such additional payments being referred to herein as "Gross-Up Payments") in an
amount such that after payment by Executive of all taxes (as defined in Section
4.10(k)) imposed upon the Gross-Up Payment, Executive retains an amount of such
Gross-Up Payment equal to the Excise Tax imposed upon the Payments.

                (b)     Subject to the provisions of Section 4.10(c) through
(i), any determination (individually, a "Determination") required to be made
under this Section 4.10(b), including whether a Gross-Up Payment is required and
the amount of such Gross-Up Payment, shall initially be made, at HEARx's
expense, by nationally recognized tax counsel mutually acceptable to HEARx and
Executive ("Tax Counsel"). Tax Counsel shall provide detailed supporting legal
authorities, calculations and documentation both to HEARx and Executive within
15 business days of the termination of Executive's employment, if applicable, or
such other time or times as is reasonably requested by HEARx or Executive. If
Tax Counsel makes the initial Determination that no Excise Tax is payable by
Executive with respect to a Payment or Payments, it shall furnish Executive with
an opinion reasonably acceptable to Executive that no Excise Tax will be imposed
with respect to any such Payment or Payments. Executive shall have the right to
dispute any Determination (a "Dispute") within 15 business days after delivery
of Tax Counsel's opinion with respect to such Determination. The Gross-Up
Payment, if any, as determined pursuant to such Determination shall, at HEARx's
expense, be paid by HEARx to Executive within five business days of Executive's
receipt of such Determination. The existence of a Dispute shall not in any way
affect Executive's right to receive the Gross-Up Payment in accordance with such
Determination. If there is no Dispute, such Determination shall be binding,
final and conclusive upon HEARx and Executive, subject in all respects, however,
to the provisions of Section 4.10(c) through (i) below. As a result of the
uncertainty in the application of Sections 4999 and 280G of the Code, it is
possible that Gross-Up Payments (or portions thereof) which will not have been
made by HEARx should have been made ("Underpayments"), and if upon any
reasonable written request from Executive or HEARx to Tax Counsel, or upon Tax
Counsel's own initiative, Tax Counsel, at HEARx's expense, thereafter determines
that Executive is required to make a payment of any Excise Tax or any additional
Excise Tax, as the case may be, Tax Counsel shall, at HEARx's expense, determine
the amount of the Underpayment that has occurred, and any such Underpayment
shall be promptly paid by HEARx to Executive.

                (c)     HEARx shall defend, hold harmless and indemnify
Executive on a fully grossed-up after tax basis from and against any and all
claims, losses, liabilities, obligations, damages, impositions, assessments,
demands, judgements, settlements, costs and expenses (including reasonable
attorneys', accountants', and experts' fees and expenses) with respect to any
tax liability of Executive resulting from any Final Determination (as defined in
Section 4.10(j)) that any Payment is subject to the Excise Tax.

                (d)     If a party hereto receives any written or oral
communication with respect to any question, adjustment, assessment or pending or
threatened audit, examination, investigation or

                                       15
<PAGE>   16

administrative, court or other proceeding which, if pursued successfully, could
result in or give rise to a claim by Executive against HEARx under this Section
4.10(d) ("Claim"), including a claim for indemnification of Executive by HEARx
under Section 4.10(c), then such party shall promptly notify the other party
hereto in writing of such Claim ("Tax Claim Notice").

                (e)     If a Claim is asserted against Executive ("Executive
Claim"), Executive shall take or cause to be taken such action in connection
with contesting such Executive Claim as HEARx shall reasonably request in
writing from time to time, including the retention of counsel and experts as are
reasonably designated by HEARx (it being understood and agreed by the parties
hereto that the terms of any such retention shall expressly provide that HEARx
shall be solely responsible for the payment of any and all fees and
disbursements of such counsel and any experts) and the execution of powers of
attorney, provided that:

                        (i)     within 30 calendar days after HEARx receives or
        delivers, as the case may be, the Tax Claim Notice relating to such
        Executive Claim (or such earlier date that any payment of the taxes
        claimed is due from Executive, but in no event sooner than five calendar
        days after HEARx receives or delivers such Tax Claim Notice), HEARx
        shall have notified Executive in writing ("Election Notice") that HEARx
        does not dispute its obligations (including its indemnity obligations)
        under this Agreement and that HEARx elects to contest, and to control
        the defense or prosecution of, such Executive Claim at HEARx's sole risk
        and sole cost and expense; and

                        (ii)    HEARx shall have advanced to Executive on an
        interest-free basis, the total amount of the tax claimed for Executive,
        at HEARx's request, to pay or cause to be paid the tax claimed, file a
        claim for refund of such tax and, subject to the provisions of the last
        sentence of Section 4.10(g), sue for a refund of such tax if such claim
        for refund is disallowed by the appropriate taxing authority (it being
        understood and agreed by the parties hereto that HEARx shall only be
        entitled to sue for a refund and HEARx shall not be entitled to initiate
        any proceeding in, for example, United States Tax Court) and shall
        indemnify and hold Executive harmless, on a fully grossed-up after tax
        basis, from any tax imposed with respect to such advance or with respect
        to any imputed income with respect to such advance; and

                        (iii)   HEARx shall reimburse Executive for any and all
        costs and expenses resulting from any such request by HEARx and shall
        indemnify and hold Executive harmless, on fully grossed-up after-tax
        basis, from any tax imposed as a result of such reimbursement.

                (f)     Subject to the provisions of Section 4.10(e), HEARx
shall have the right to defend or prosecute, at the sole cost, expense and risk
of HEARx, such Executive Claim by all appropriate proceedings, which proceedings
shall be defended or prosecuted diligently by HEARx to a Final Determination;
provided, however, that (i) HEARx shall not, without Executive's prior written
consent, enter into any compromise or settlement of such Executive Claim that
would adversely affect Executive, (ii) any request from HEARx to Executive
regarding any extension of the statute of limitations relating to assessment,
payment or collection of taxes for the taxable year of Executive with respect to
which the contested issues involved in, and amount of, the Executive

                                       16
<PAGE>   17

Claim relate is limited solely to such contested issues with respect to the
Executive Claim and Executive shall be entitled to settle or contest, in his
sole and absolute discretion, any other issue raised by the Internal Revenue
Service or any other taxing authority. So long as HEARx is diligently defending
or prosecuting such Executive Claim, Executive shall provide or cause to be
provided to HEARx any information reasonably requested by HEARx that relates to
such Executive Claim, and shall otherwise cooperate with HEARx and its
representatives in good faith to contest effectively such Executive Claim. HEARx
shall keep Executive informed of all developments and events relating to any
such Executive Claim (including providing to Executive copies of all written
materials pertaining to any such Executive Claim), and Executive or his
authorized representatives shall be entitled, at Executive's expense, to
participate in all conferences, meetings and proceedings relating to any such
Executive Claim.

                (g)     If, after actual receipt by Executive of an amount of a
tax claimed (pursuant to an Executive Claim) that has been advanced by HEARx
pursuant to Section 4.10(e)(ii), the extent of the liability of HEARx hereunder
with respect to such tax claimed has been established by a Final Determination,
Executive shall promptly pay or cause to be paid to HEARx any refund actually
received by, or actually credited to, Executive with respect to such tax
(together with any interest paid or credited thereon by the taxing authority and
any recovery of legal fees from such taxing authority related thereto), except
to the extent that any amounts are then due and payable buy HEARx to Executive,
whether under the provisions of this Agreement or otherwise. If, after the
receipt by Executive of an amount advanced by HEARx pursuant to Section
4.10(e)(ii), a determination is made by the Internal Revenue Service or other
appropriate taxing authority that Executive shall not be entitled to any refund
with respect to such tax claimed and HEARx does not notify Executive in writing
of its intent to contest such denial of refund prior to the expiration of thirty
days after such determination, then such advance shall be forgiven and shall not
be required to be repaid and the amount of such advance shall offset, to the
extent thereof, the amount of any Gross-Up Payments and other payments required
to be paid hereunder.

                (h)     With respect to any Executive Claim, if HEARx fails to
deliver an Election Notice to Executive within the period provided in Section
4.10(e)(i) or, after delivery of such Election Notice, HEARx fails to comply
with the provisions of Section 4.10(e)(ii) and (iii) and Section 4.10(f), then
Executive shall at any time thereafter have the right (but not the obligation),
at his election and in his sole and absolute discretion, to defend or prosecute,
at the sole cost, expense and risk of HEARx, such Executive Claim. Executive
shall have full control of such defense or prosecution and such proceedings,
including any settlement or compromise thereof. If requested by Executive, HEARx
shall cooperate, and shall cause its affiliates to cooperate, in good faith with
Executive and his authorized representatives in order to contest effectively
such Executive Claim. HEARx may attend, but not participate in or control, any
defense, prosecution, settlement or compromise of any Executive Claim controlled
by Executive pursuant to this Section4.10(h) and shall bear its own costs and
expenses with respect thereto. In the case of any Executive Claim that is
defended or prosecuted by Executive, Executive shall, from time to time, be
entitled to current payment, on a fully grossed-up after tax basis, from HEARx
with respect to costs and expenses incurred by Executive in connection with such
defense or prosecution.

                (i)     In the case of any Executive Claim that is defended or
prosecuted to a Final Determination pursuant to the terms of this Section
4.10(i), HEARx shall pay, on a fully grossed-up

                                       17
<PAGE>   18

after tax basis, to Executive in immediately available funds the full amount of
any taxes arising or resulting from or incurred in connection with such
Executive Claim that have not theretofore been paid by HEARx to Executive,
together with the costs and expenses, on a fully grossed-up after tax basis,
incurred in connection therewith that have not theretofore been paid by HEARx to
Executive, within ten calendar days after such Final Determination. In the case
of any Executive Claim not covered by the preceding sentence, HEARx shall pay,
on a fully grossed-up after tax basis, to Executive in immediately available
funds the full amount of any taxes arising or resulting from or incurred in
connection with such Executive Claim at least ten calendar days before the date
payment of such taxes is due from Executive, except where payment of such taxes
is sooner required under the provisions of this Section 4.10(i), in which case
payment of such taxes (and payment, on a fully grossed-up after tax basis, of
any costs and expenses required to be paid under this Section 4.10(i)) shall be
made within the time and in the manner otherwise provided in this Section
4.10(i).

                (j)     For purposes of this Agreement, the term "Final
Determination" shall mean (A) a decision, judgment, decree or other order by a
court or other tribunal with appropriate jurisdiction, which has become final
and non-appealable; (B) a final and binding settlement or compromise with an
administrative agency with appropriate jurisdiction, including, but not limited
to, a closing agreement under Section 7121 of the Code; (C) any disallowance of
a claim for refund or credit with respect to an overpayment of tax unless a suit
is filed on a timely basis; or (D) any final disposition by reason of the
expiration of all applicable statutes of limitations.

                (k)     For purposes of this Agreement, the terms "tax" and
"taxes" mean any and all taxes of any kind whatsoever (including any and all
Excise Taxes, income taxes, and employment taxes), together with any interest
thereon, any penalties, additions to tax or additional amounts with respect to
such taxes and any interest in respect of such penalties, additions to tax or
additional amounts.

                (l)     For purposes of this Agreement, the terms "affiliate"
and "affiliates" mean, when used with respect to any entity, individual or other
person, any other entity, individual or other person which, directly or
indirectly, through one or more intermediaries controls, or is controlled by, or
is under common control with, such entity, individual or person. The term
"control" and deviations thereof when used in the immediately preceding sentence
means the ownership, directly or indirectly, of 50% of more of the voting
securities of an entity or other person or possessing the power to direct or
cause the direction of the management and policies of such entity or other
person, whether through the ownership of voting securities, by contract or
otherwise.

        4.11    LEGAL FEES AND EXPENSES. HEARx shall defend, hold harmless and
indemnify Executive on a fully grossed-up after tax basis from and against any
and all costs and expenses (including reasonable attorneys', accountants' and
experts' fees and expenses) incurred by Executive acting reasonably from time to
time as a result of any contest (regardless of the outcome) by HEARx or others
contesting the validity or enforcement of, or liability under, any term or
provision of this Agreement, plus in each case interest at the applicable
federal rate provided for in Section 7872(f)(2)(B) of the Code.

        4.12    NON-EXCLUSIVITY OF RIGHTS. Nothing in this Agreement shall
prevent or limit Executive's continuing or future participation in any benefit,
bonus, incentive or other plan,

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program, arrangement or policy provided by HEARx or any of its affiliates
(including any plan, program, arrangement or policy described in Section 2.1(e))
and for which Executive and/or Executive's family may qualify, nor shall
anything herein limit or otherwise affect such rights as Executive and/or
Executive's family may have under any other agreements with HEARx or any of its
affiliates. Amounts which are vested benefits or which Executive and/or
Executive's family is otherwise entitled to receive under any plan, program,
arrangement or policy described in Section 2.1(e)) at or subsequent to the date
of termination of the Term shall be payable in accordance with such plan,
program, arrangement or policy.

        4.13    FULL SETTLEMENT. HEARx's obligation to make the payments
provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which HEARx may have against Executive
or others. In no event shall Executive be obligated to seek other employment or
take any other action by way of mitigation of the amounts payable to Executive
under any of the provisions of this Agreement.

                                    ARTICLE V
                                  SHARE OPTIONS

        5.1     SHARE OPTIONS. Concurrent with the execution hereof, HEARx is
granting to Executive, nonqualified, five-year options to purchase 100,000
shares of HEARx's common stock, $0.10 par value per share (the "Common Stock"),
at an option price per share equal to the closing price of the Common Stock as
reported on the American Stock Exchange of the shares on the effective date of
this Agreement, subject to adjustment as provided in the Option Agreement dated
as of the date hereof (the "Options"). Such Options shall vest in and become
exercisable by Executive for all purposes as follows: 25% of such Options as of
each of the first four anniversary dates of the Effective Date, so that all of
such Options shall be fully vested in and exercisable by Executive as of the
fourth anniversary of the Effective Date. Also, if an Acceleration Event occurs,
all outstanding options to purchase HEARx's common stock, including those
options currently held by Executive, those Options granted hereunder and all
additional share options granted to Executive by HEARx after the Effective Date,
shall vest in and be exercisable by Executive (or, as the case may be, his
estate or representative) as of the Acceleration Event. "Acceleration Event"
shall mean for all purposes hereof any of the following events: (a) the Term is
terminated by Executive with Good Reason pursuant to Section 4.2(a) or by HEARx
without Cause, (b) Executive dies or (c) Executive becomes Disabled. The Option
Agreement shall provide that the shares of Common Stock issuable on exercise of
the options shall be treasury shares.

                                   ARTICLE VI
                               GENERAL PROVISIONS

6.1     ARBITRATION OF DISPUTES.

                (a)     SCOPE OF AGREEMENT. HEARx and Executive agree to take
all reasonable steps to resolve any employment-related legal and/or judicial
disputes between them quickly and fairly. Should such matters remain unresolved,
HEARx and Executive agree that final and binding arbitration shall be the
exclusive remedy for any dispute between them relating to all common law,

                                       19
<PAGE>   20

statutory, legal or judicial claims, including any claims for breach of contract
and for violation of laws forbidding discrimination on the basis of race, color,
religion, gender, age, national origin, disability, or any other legally
protected status.

                (b)     PROCEDURE. Arbitration shall be before a single
arbitrator in Miami, Florida, unless the parties mutually agree to hold the
arbitration in a different location. The arbitration will be administered in
accordance with the employment dispute rules of the American Arbitration
Association (AAA), and its procedures then in effect. If the parties cannot
agree on an arbitrator, then the AAA rules will govern selection. HEARx will pay
the fees of the AAA and the arbitrator. However, if Executive submits a matter
to arbitration, he shall be responsible for contributing to such fees an amount
equivalent to the amount required to file a complaint of the same type in the
state court which is geographically closest to the site of the arbitration if he
does not prevail in the arbitration.

        The arbitrator's award is to be in writing, with reasons given and
evidence cited for the award. The arbitrator shall have the discretion to award
fees (including administrative charges, costs and/or reasonable attorney's fees
actually expended) to the prevailing party, in accordance with controlling law.
Any court of competent jurisdiction may enter judgment upon the award, either
by: (1) confirming the award, or (2) vacating, modifying or correcting the
award: (a) on any ground referred to in the U.S. Arbitration Act, (b) where the
findings of fact are not supported by substantial evidence, or (c) where the
conclusions of law are erroneous.

        6.2     GOVERNING LAW. This Agreement shall be governed by and construed
in accordance with the law of the State of Delaware.

        6.3     ASSIGNABILITY. This Agreement is personal to Executive and
without the prior written consent of HEARx shall not be assignable by Executive
other than by will or the laws of descent and distribution. This Agreement shall
inure to the benefit of and be enforceable by Executive's legal representatives
and heirs. This Agreement shall inure to the benefit of and be binding upon
HEARx and its successors and assigns. HEARx shall require any corporation,
entity, individual or other person who is the successor (whether direct or
indirect, by purchase, merger, consolidation, reorganization or otherwise) to
all or substantially all of the business and/or assets of HEARx to expressly
assume and agree to perform, by a written agreement in form and substance
satisfactory to Executive, all of the obligations of HEARx under this Agreement.
As used in this Agreement, the term "HEARx" shall mean HEARx as hereinbefore
defined and any successor to its business and/or assets as aforesaid which
assumes and agrees to perform this Agreement by operation of law, written
agreement or otherwise.

        6.4     WITHHOLDING. HEARx may withhold from any amounts payable under
this Agreement such federal, state or local taxes as shall be required to be
withheld pursuant to any applicable law or regulation.

        6.5     ENTIRE AGREEMENT; AMENDMENT. This Agreement constitutes the
entire agreement and understanding between Executive and HEARx and supersedes
any prior agreements or understandings, whether written or oral, with respect to
the subject matter hereof. Except as may be

                                       20
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otherwise provided herein, this Agreement may not be amended or modified, except
by subsequent written agreement executed by both parties hereto.

        6.6     MULTIPLE COUNTERPARTS. This Agreement may be executed in
multiple counterparts, each of which shall constitute an original, but all of
which together shall constitute one Agreement.

        6.7     NOTICES. Any notice provided for in this Agreement shall be
deemed delivered upon deposit in the United States mails, registered or
certified mail, addressed to the party to whom directed at the addresses set
forth below or at such other addresses as may be substituted therefor by notice
given hereunder. Notice given by any other means must be in writing and shall be
deemed delivered only upon actual receipt.

                If to HEARx:

                1250 Northpoint Parkway
                West Palm Beach, FL 33407
                Attn:  President

                If to Executive:

                1744 South Ocean Boulevard
                Palm Beach, FL 33480
                Attn: Paul A. Brown, M.D.

        6.8     WAIVER. The waiver of any breach of any term or condition of
this Agreement shall not be deemed to constitute the waiver of any breach of the
same or by any other term or condition of this Agreement.

        6.9     SEVERABILITY. In the event any provision of this Agreement is
found to be unenforceable or invalid, such provision shall be severable from
this Agreement and shall not affect the enforceability or validity of any other
provision of this Agreement.

        IN WITNESS WHEREOF, the parties have executed this Agreement as of the
Effective Date.

                                        HEARx LTD.

                                        By:    /s/ Stephen J. Hansbrough
                                               ------------------------------
                                        Name:  Stephen J. Hansbrough
                                               ------------------------------
                                        Title: President and COO
                                               ------------------------------
                                        /s/ Paul A. Brown, M.D.
                                        -------------------------------------
                                        Paul A. Brown, M.D.

                                       21

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