Document:

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                                                                   Exhibit 10.47

         IMS HEALTH INCORPORATED

         Employment Agreement for Robert H. Steinfeld
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                             IMS HEALTH INCORPORATED

                  Employment Agreement for Robert H. Steinfeld

                                                                            Page

1.       Employment                                                            1

2.       Term                                                                  1

3.       Offices and Duties                                                    2

              (a) Generally.                                                   2

              (b) Place of Employment                                          2

4.       Salary and Annual Incentive Compensation                              2

              (a) Base Salary                                                  2

              (b) Annual Incentive Compensation                                2

5.       Long Term Compensation, Including Stock Options, Benefits,
         Deferred Compensation, and Expense Reimbursement                      3

              (a) Executive Compensation Plans                                 3

              (b) Employee and Executive Benefit Plans                         3

              (c) Acceleration of Awards Upon a Change in Control              4

              (d) Deferral of Compensation                                     4

              (e) Company Registration Obligations                             4

              (f) Reimbursement of Expenses                                    4

6.       Termination Due to Retirement, Death or Disability                    4

              (a) Retirement                                                   5

              (b) Death                                                        5

              (c) Disability                                                   6

              (d) Other Terms of Payment Following Retirement, Death
                  or Disability                                                7

7.       Termination of Employment For Reasons Other Than Retirement,
                  Death, or Disability                                         7

              (a) Termination by the Company for Cause                         7

              (b) Termination by Executive Other Than For
                  Good Reason                                                  7

              (c) Termination by the Company Without Cause Prior to
                    or More than Two Years After a Change in Control           7

              (d) Termination by Executive for Good Reason Prior
                    to or More than Two Years After a Change in Control        9

              (e) Termination by the Company Without Cause Within
                    Two Years After a Change in Control                       11
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              (f) Termination by Executive for Good Reason Within Two
                    Years After a Change in Control                           12

              (g) Other Terms Relating to Certain Terminations of Employment  14

8.       Definitions Relating to Termination Events                           14

              (a) "Cause"                                                     14

              (b) "Change in Control"                                         15

              (c) "Compensation Accrued at Termination"                       16

              (d) "Disability"                                                16

              (e) "Good Reason                                                16

              (f) "Potential Change in Control"                               17

9.       Rabbi Trust Obligation Upon Potential Change in Control; Excise
         Tax Related Provisions                                               17

              (a) Rabbi Trust Funded Upon Potential Change in Control         17

              (b) Gross-up If Excise Tax Would Apply                          18

10.      Non-Competition and Non-Disclosure; Executive Cooperation;
         Non-Disparagement                                                    19

              (a) Non-Competition                                             19

              (b) Non-Disclosure; Ownership of Work                           20

              (c) Cooperation With Regard to Litigation                       20

              (d) Non-Disparagement                                           20

              (e) Release of Employment Claims                                20

              (f) Forfeiture of Outstanding Options                           20

              (g) Survival                                                    20

11.      Governing Law; Disputes; Arbitration                                 21

              (a) Governing Law                                               21

              (b) Reimbursement of Expenses in Enforcing Rights               21

              (c) Arbitration                                                 21

              (d) Interest on Unpaid Amounts                                  21

12.      Miscellaneous                                                        21

              (a) Integration                                                 21

              (b) Successors; Transferability                                 22

              (c) Beneficiaries                                               22

              (d) Notices                                                     22

              (e) Reformation                                                 23

              (f) Headings                                                    23
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              (g) No General Waivers                                          23

              (h) No Obligation To Mitigate                                   23

              (i) Offsets; Withholding                                        23

              (j) Successors and Assigns                                      23

              (k) Counterparts                                                23

13.      Indemnification                                                      23
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                             IMS HEALTH INCORPORATED

                  Employment Agreement for Robert H. Steinfeld

         THIS EMPLOYMENT AGREEMENT by and between IMS HEALTH INCORPORATED, a
Delaware corporation (the "Company"), and Robert H. Steinfeld ("Executive")
shall become effective as of November 14, 2000 (the "Effective Date").

                               W I T N E S S E T H

         WHEREAS, Executive has served the Company and its predecessors in
executive capacities since February 24, 1997;

         WHEREAS, the Company desires to continue to employ Executive as Senior
Vice President and General Counsel of the Company, and Executive desires to
accept such employment on the terms and conditions herein set forth.

         NOW, THEREFORE, in consideration of the foregoing, the mutual covenants
contained herein, and other good and valuable consideration the receipt and
adequacy of which the Company and Executive each hereby acknowledge, the Company
and Executive hereby agree as follows:

1.       EMPLOYMENT.

         The Company hereby agrees to employ Executive as its Senior Vice
President and General Counsel (with the principal executive duties set forth
below in Section 3), and Executive hereby agrees to accept such employment and
serve in such capacities, during the Term as defined in Section 2 (subject to
Section 7(c) and 7(e)) and upon the terms and conditions set forth in this
Employment Agreement (the "Agreement").

2.       TERM.

         The term of employment of Executive under this Agreement (the "Term")
shall be the period commencing on the Effective Date and ending on December 31,
2002 and any period of extension thereof in accordance with this Section 2,
except that the Term will end at a date, prior to the end of such period or
extension thereof, specified in Section 6 or 7 in the event of termination of
Executive's employment. The Term, if not previously ended, shall be extended
automatically without further action by either party by one additional year
(added to the end of the Term) first on December 31, 2002 (extending the Term to
December 31, 2003) and on each succeeding December 31 thereafter, unless either
party shall have served written notice in accordance with Section 12(d) upon the
other party on or before the June 30 preceding a December 31 extension date
electing not to extend the Term further as of that December 31 extension date,
in which case employment shall terminate on that December 31 and the Term shall
end at that date, subject to earlier termination of employment and earlier
termination of the Term in accordance with Section 6 or 7. The foregoing
notwithstanding, in the event there occurs a Potential Change in Control during
the period of 180 days prior to the December 31 on which the Term will terminate
as a result of notice given by the Executive or the Company hereunder, the Term
shall be extended automatically at that December 31 by an additional period such
that the Term will extend until the 180th day following such Potential Change in
Control.
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3.       OFFICES AND DUTIES.

         The provisions of this Section 3 will apply during the Term, except as
otherwise provided in Section 7(c) or 7(e):

         (a) GENERALLY. Executive shall serve as the Senior Vice President and
General Counsel of the Company. In any and all such capacities, Executive shall
report only to the Chief Executive Officer or Chief Administrative Officer of
the Company and to the Board of Directors (the "Board"). Executive shall have
and perform such duties, responsibilities, and authorities as are customary for
the General Counsel of a publicly held corporation of the size, type, and nature
of the Company as they may exist from time to time in addition to Executive's
pre-existing responsibilities for Tax and Corporate Development and consistent
with such position and status, and shall specifically include having the
principal executive responsibility for the following operations, departments or
activities of the Company: the global Legal function, the global Tax function
and global Corporate Development. In no event shall such duties,
responsibilities, and authorities be reduced from those of Executive at the
Effective Date (including those specified in this Section 3(a)), except with the
written consent of Executive. Executive shall devote his full business time and
attention, and his best efforts, abilities, experience, and talent, to the
positions of Senior Vice President and General Counsel with principal executive
responsibility for the global Tax and Corporate Development function and for the
businesses of the Company without commitment to other business endeavors, except
that Executive (i) may make personal investments which are not in conflict with
his duties to the Company and manage personal and family financial and legal
affairs, (ii) may undertake public speaking engagements, and (iii) may serve as
a director of (or similar position with) any other business or an educational,
charitable, community, civic, religious, or similar type of organization with
the approval of the Chief Executive Officer, so long as such activities (i.e.,
those listed in clauses (i) through (iii)) do not preclude or render unlawful
Executive's employment or service to the Company or otherwise materially inhibit
the performance of Executive's duties under this Agreement or materially impair
the business of the Company or its subsidiaries.

         (b) PLACE OF EMPLOYMENT. Executive's principal place of employment
shall be at the Corporate Offices of the Company which shall be in Fairfield
County, Connecticut.

4.       SALARY AND ANNUAL INCENTIVE COMPENSATION.

         As partial compensation for the services to be rendered hereunder by
Executive, the Company agrees to pay to Executive during the Term the
compensation set forth in this Section 4.

         (a) BASE SALARY. The Company will pay to Executive during the Term a
base salary, the annual rate of which shall be $275,000, payable in cash in
substantially equal semi-monthly installments commencing at the beginning of the
Term, and otherwise in accordance with the Company's usual payroll practices
with respect to senior executives (except to the extent deferred under Section
5(d)). Executive's annual base salary shall be reviewed by the Compensation and
Benefits Committee of the Board (the "Committee") at least once in each calendar
year, and may be increased above, but may not be reduced below, the then-current
rate of such base salary. For purposes of this Agreement, "Base Salary" means
Executive's then-current base salary.

         (b) ANNUAL INCENTIVE COMPENSATION. The Company will pay to Executive
during the Term annual incentive compensation which shall offer to Executive an
opportunity to earn additional compensation based upon performance in amounts
determined by the Committee in accordance with the applicable plan and
consistent with past practices of the Company; provided, however, that the
annual incentive opportunity during the Term shall be not less than the greater
of 51% of Base Salary or the annual target incentive opportunity for the prior
year for achievement of target level performance, with the nature of the
performance and the levels of performance triggering payments of such annual
target incentive compensation for each year to be established and communicated
to Executive during the first quarter of such year by the Committee; provided,
further, that annual incentive payable for performance in 2000 shall be based on
the amount of salary actually paid during the year. In addition, the Committee
(or the Board) may determine, in its discretion, to increase the Executive's
annual target incentive opportunity or provide an additional annual incentive
opportunity, in excess of the annual target incentive opportunity, payable for
performance in excess of or in addition to the performance required for payment
of the annual target incentive amount. Any annual incentive compensation payable
to Executive shall be paid in

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accordance with the Company's usual practices with respect to payment of
incentive compensation to senior executives (except to the extent deferred under
Section 5(d)).

5.       LONG-TERM COMPENSATION, INCLUDING STOCK OPTIONS, BENEFITS, DEFERRED
         COMPENSATION, AND EXPENSE REIMBURSEMENT

         (a) EXECUTIVE COMPENSATION PLANS. Executive shall be entitled during
the Term to participate, without discrimination or duplication, in all executive
compensation plans and programs intended for general participation by senior
executives of the Company, as presently in effect or as they may be modified or
added to by the Company from time to time, subject to the eligibility and other
requirements of such plans and programs, including without limitation any stock
option plans, plans under which restricted stock/restricted stock units,
performance-based restricted stock/restricted stock units ("PERS") or
performance-accelerated restricted stock/restricted stock units ("PARS") may be
awarded, other annual and long-term cash and/or equity incentive plans, and
deferred compensation plans; provided, however, that such plans and programs, in
the aggregate, shall provide Executive with compensation and incentive award
opportunities substantially no less favorable than those provided by the Company
to Executive under such plans and programs as in effect on the Effective Date.
The foregoing notwithstanding, Executive shall be entitled to participate in the
PERS program based on annual performance commencing with the 2001 performance
year, and will not be granted PERS with respect to the 2000 performance year.

         (b) EMPLOYEE AND EXECUTIVE BENEFIT PLANS. Executive shall be entitled
during the Term to participate, without discrimination or duplication, in all
employee and executive benefit plans and programs of the Company, as presently
in effect or as they may be modified or added to by the Company from time to
time, to the extent such plans are available generally to other senior
executives or employees of the Company, subject to the eligibility and other
requirements of such plans and programs, including without limitation plans
providing pensions, supplemental pensions, supplemental and other retirement
benefits, medical insurance, life insurance, disability insurance, and
accidental death or dismemberment insurance, as well as savings, profit-sharing,
and stock ownership plans; provided, however, that such benefit plans and
programs, in the aggregate, shall provide Executive with benefits and
compensation substantially no less favorable than those provided by the Company
to Executive under such plans and programs as in effect on the Effective Date.
The foregoing notwithstanding, Executive shall be eligible to participate or
receive compensation and benefits under the Company's Employee Protection Plan
and his Change-in-Control Agreement, provided that any compensation and benefits
to Executive under the Employee Protection Plan and the Change-in-Control
Agreement shall be payable only if and to the extent that such benefits would
exceed the corresponding benefits payable under this Agreement.

         In furtherance of and not in limitation of the foregoing, during the
Term:

                  (i) Executive will participate as Senior Vice President and
         General Counsel in all executive and employee vacation and time-off
         programs;

                  (ii) The Company will provide Executive with coverage as
         Senior Vice President and General Counsel with respect to long-term
         disability insurance and benefits substantially no less favorable
         (including any required contributions by Executive) than such insurance
         and benefits in effect on the Effective Date;

                  (iii) Executive will be covered by Company-paid group and
         individual term life insurance providing a death benefit no less than
         the death benefit provided under Company-paid insurance in effect at
         the Effective Date; provided, however, that, with the consent of
         Executive, such insurance may be combined with a supplementary
         retirement funding vehicle;

                  (iv) Executive will be entitled to retirement benefits
         substantially no less favorable than those under the defined benefit
         pension plans and programs of the Company. Accordingly, Executive
         shall, as soon as possible, be admitted to, and shall be entitled to
         retirement benefits as provided under, the IMS Health Incorporated U.S.
         Executive Retirement Plan (the "USERP"). The Company acknowledges and
         agrees that, pursuant to Section 3 of the USERP, Executive's years of
         service with the Company prior to the date he will have become a Member
         under the USERP shall be included as Service in determining Executive's
         Vested Percentage under Section 3 of the

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         USERP, and the Company will appropriately effectuate such
         determination. References in this Section 5(b)(iv) to "Member,"
         "Service" and "Vested Percentage" have the meanings defined in the
         USERP. In addition, for purposes of this provision and the USERP,
         Executive's "Average Final Compensation" shall be no less than the sum
         of Executive's Base Salary for 2001 and the greater of (A) Executive's
         target annual incentive compensation for 2001 and (B) actual annual
         incentive compensation paid in respect of services rendered in 2001;
         and

                  (v) The Company will provide Executive with health and medical
         benefits consistent with its policies for other senior executives.

         Any provision to the contrary contained in this Agreement
notwithstanding, unless Executive is terminated by the Company for "Cause" (as
defined in Section 8(a)) or Executive terminates voluntarily and not for "Good
Reason" (as defined in Section 8(e)), Executive may elect continued
participation after termination of employment in the Company's health and
medical coverage for himself and his spouse and dependent children after such
coverage would otherwise end until such time as Executive becomes eligible for
similar coverage with a subsequent employer or other entity to which Executive
provides services or becomes eligible for Medicare (under rules in effect at the
Effective Date hereof); provided, however, that in the event of such election,
Executive shall pay the Company each year an amount equal to the then-current
annual COBRA premium being paid (or payable) by any other former employee of the
Company, unless otherwise provided under Section 6 or 7.

         (c) ACCELERATION OF AWARDS UPON A CHANGE IN CONTROL. In the event of a
Change in Control (as defined in Section 8(b)), all outstanding stock options,
restricted stock, and other equity-based awards then held by Executive shall
become vested and exercisable.

         (d) DEFERRAL OF COMPENSATION. If the Company has in effect or adopts
any deferral program or arrangement permitting executives to elect to defer any
compensation, Executive will be eligible to participate in such program on terms
no less favorable than the terms of participation of any other executive officer
of the Company. Any plan or program of the Company which provides benefits based
on the level of salary, annual incentive, or other compensation of Executive
shall, in determining Executive's benefits, take into account the amount of
salary, annual incentive, or other compensation prior to any reduction for
voluntary contributions made by Executive under any deferral or similar
contributory plan or program of the Company (excluding compensation that would
not be taken into account even if not deferred), but shall not treat any payout
or settlement under such a deferral or similar contributory plan or program to
be additional salary, annual incentive, or other compensation for purposes of
determining such benefits, unless otherwise expressly provided under such plan
or program.

         (e) COMPANY REGISTRATION OBLIGATIONS. The Company will use its best
efforts to file with the Securities and Exchange Commission and thereafter
maintain the effectiveness of one or more registration statements registering
under the Securities Act of 1933, as amended (the "1933 Act"), the offer and
sale of shares by the Company to Executive pursuant to stock options or other
equity-based awards granted to Executive under Company plans or otherwise or, if
shares are acquired by Executive in a transaction not involving an offer or sale
to Executive but resulting in the acquired shares being "restricted securities"
for purposes of the 1933 Act, registering the reoffer and resale of such shares
by Executive.

         (f) REIMBURSEMENT OF EXPENSES. The Company will promptly reimburse
Executive for all reasonable business expenses and disbursements incurred by
Executive in the performance of Executive's duties during the Term in accordance
with the Company's reimbursement policies as in effect from time to time.

6.       TERMINATION DUE TO RETIREMENT, DEATH, OR DISABILITY.

         (a) RETIREMENT. Executive may elect to terminate employment hereunder
by retirement at or after age 55 or, upon the request of Executive, at such
earlier age as may be approved by the Board (in either case, "Retirement"). At
the time Executive's employment terminates due to Retirement, the Term

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will terminate, all obligations of the Company and Executive under Sections 1
through 5 of this Agreement will immediately cease except for obligations which
expressly continue after termination of employment due to Retirement, and the
Company will pay Executive, and Executive will be entitled to receive, the
following:

         (i)      Executive's Compensation Accrued at Termination (as defined in
                  Section 8(c));

         (ii)     In lieu of any annual incentive compensation under Section
                  4(b) for the year in which Executive's employment terminated,
                  an amount equal to the portion of annual incentive
                  compensation that would have become payable in cash to
                  Executive (i.e., excluding the portion payable in PERS or in
                  other non-cash awards) for that year if his employment had not
                  terminated, based on performance actually achieved in that
                  year (determined by the Committee following completion of the
                  performance year), multiplied by a fraction the numerator of
                  which is the number of days Executive was employed in the year
                  of termination and the denominator of which is the total
                  number of days in the year of termination;

         (iii)    The vesting and exercisability of stock options held by
                  Executive at termination and all other terms of such options
                  shall be governed by the plans and programs and the agreements
                  and other documents pursuant to which such options were
                  granted (subject to Section 10(f) hereof); and

         (iv)     All restricted stock and deferred stock awards, including
                  outstanding PERS awards, all other long-term incentive awards,
                  and all deferral arrangements under Section 5(d), shall be
                  governed by the plans and programs under which the awards were
                  granted or governing the deferral, and all rights under the
                  USERP and any other benefit plan shall be governed by such
                  plan.

         (b) DEATH. In the event of Executive's death which results in the
termination of Executive's employment, the Term will terminate, all obligations
of the Company and Executive under Sections 1 through 5 of this Agreement will
immediately cease except for obligations which expressly continue after death,
and the Company will pay Executive's beneficiary or estate, and Executive's
beneficiary or estate will be entitled to receive, the following:

         (i)      Executive's Compensation Accrued at Termination;

         (ii)     In lieu of any annual incentive compensation under Section
                  4(b) for the year in which Executive's death occurred, an
                  amount equal to the portion of annual incentive compensation
                  that would have become payable in cash to Executive (i.e.,
                  excluding the portion payable in PERS or in other non-cash
                  awards) for that year if his employment had not terminated,
                  based on performance actually achieved in that year
                  (determined by the Committee following completion of the
                  performance year), multiplied by a fraction the numerator of
                  which is the number of days Executive was employed in the year
                  of his death and the denominator of which is the total number
                  of days in the year of death;

         (iii)    The vesting and exercisability of stock options held by
                  Executive at death and all other terms of such options shall
                  be governed by the plans and programs and the agreements and
                  other documents pursuant to which such options were granted;
                  and

         (iv)     All restricted stock and deferred stock awards, including
                  outstanding PERS awards, all other long-term incentive awards,
                  and all deferral arrangements under Section 5(d), shall be
                  governed by the plans and programs under which the awards were
                  granted or governing the deferral, and all rights under the
                  USERP and any other benefit plan shall be governed by such
                  plan.

         (c) DISABILITY. The Company may terminate the employment of Executive
hereunder due to the Disability (as defined in Section 8(d)) of Executive. Such
employment shall terminate at the expiration of the 30-day period referred to in
the definition of Disability set forth in Section 8(d), unless Executive has

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returned to service and presented to the Company a certificate of good health
prior to such termination as specified in Section 8(d). Upon termination of
employment, the Term will terminate, all obligations of the Company and
Executive under Sections 1 through 5 of this Agreement will immediately cease
except for obligations which expressly continue after termination of employment
due to Disability, and the Company will pay Executive, and Executive will be
entitled to receive, the following:

         (i)      Executive's Compensation Accrued at Termination;

         (ii)     In lieu of any annual incentive compensation under Section
                  4(b) for the year in which Executive's employment terminated,
                  an amount equal to the portion of annual incentive
                  compensation that would have become payable in cash to
                  Executive (i.e., excluding the portion payable in PERS or in
                  other non-cash awards) for that year if his employment had not
                  terminated, based on performance actually achieved in that
                  year (determined by the Committee following completion of the
                  performance year), multiplied by a fraction the numerator of
                  which is the number of days Executive was employed in the year
                  of termination and the denominator of which is the total
                  number of days in the year of termination;

         (iii)    Stock options held by Executive at termination shall be
                  governed by the plans and programs and the agreements and
                  other documents pursuant to which such options were granted;

         (iv)     Any performance objectives upon which the earning of
                  performance-based restricted stock and deferred stock awards,
                  including outstanding PERS awards, and other long-term
                  incentive awards is conditioned shall be deemed to have been
                  met at target level at the date of termination, and restricted
                  stock and deferred stock awards, including outstanding PERS
                  awards, and other long-term incentive awards (to the extent
                  then or previously earned, in the case of performance-based
                  awards) shall become fully vested and non-forfeitable at the
                  date of such termination, and, in other respects, such awards
                  shall be governed by the plans and programs and the agreements
                  and other documents pursuant to which such awards were
                  granted;

         (v)      Disability benefits shall be payable in accordance with the
                  Company's plans, programs and policies (including the USERP),
                  and all deferral arrangements under Section 5(d) will be
                  settled in accordance with the plans and programs governing
                  the deferral; and

         (vi)     For the period extending from the date of termination due to
                  Disability until the date Executive reaches age 65, Executive
                  shall continue to participate in those employee and executive
                  benefit plans and programs under Section 5(b) to the extent
                  such plans and programs provide medical insurance, disability
                  insurance and life insurance benefits (but not other benefits,
                  such as pension and retirement benefits, provided under
                  Section 5(b)) in which Executive was participating immediately
                  prior to termination, the terms of which allow Executive's
                  continued participation, as if Executive had continued in
                  employment with the Company during such period or, if the
                  terms of such plans or programs do not allow Executive's
                  continued participation, Executive shall be paid a cash
                  payment equivalent on an after-tax basis to the value of the
                  additional benefits (of the type described in this Section
                  6(c)(vi)) Executive would have received under such plans or
                  programs had Executive continued to be employed during such
                  period following Executive's termination until age 65, with
                  such benefits provided by the Company at the same times and in
                  the same manner as such benefits would have been provided to
                  Executive under such plans and programs (it being understood
                  that the value of any insurance-provided benefits will be
                  based on the premium cost to Executive, which shall not exceed
                  the highest risk premium charged by a carrier having an
                  investment grade or better credit rating). The foregoing
                  notwithstanding, Executive must continue to satisfy the
                  conditions set forth in Section 10 in order to continue
                  receiving the benefits provided under this Section 6(c)(vi).

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         (d) OTHER TERMS OF PAYMENT FOLLOWING RETIREMENT, DEATH, OR DISABILITY.
Nothing in this Section 6 shall limit the benefits payable or provided In the
event Executive's employment terminates due to Retirement, death, or Disability
under the terms of plans or programs of the Company more favorable to the
Executive (or his beneficiaries) than the benefits payable or provided under
this Section 6 (except in the case of annual incentives in lieu of which amounts
are paid hereunder), including plans and programs adopted after the date of this
Agreement. Amounts payable under this Section 6 following Executive's
termination of employment, other than those expressly payable following
determination of performance for the year of termination for purposes of annual
incentive compensation or otherwise expressly payable on a deferred basis, will
be paid as promptly as practicable after such termination of employment.

7.       TERMINATION OF EMPLOYMENT FOR REASONS OTHER THAN RETIREMENT, DEATH OR
         DISABILITY.

         (a) TERMINATION BY THE COMPANY FOR CAUSE. The Company may terminate the
employment of Executive hereunder for Cause (as defined in Section 8(a)) at any
time. At the time Executive's employment is terminated for Cause, the Term will
terminate, all obligations of the Company and Executive under Sections 1 through
5 of this Agreement will immediately cease except for obligations which
expressly continue after termination of employment by the Company for Cause, and
the Company will pay Executive, and Executive will be entitled to receive, the
following:

                  (i) Executive's Compensation Accrued at Termination (as
         defined in Section 8(c));

                  (ii) All stock options, restricted stock and deferred stock
         awards, including outstanding PERS awards, and all other long-term
         incentive awards will be governed by the terms of the plans and
         programs under which the awards were granted; and

                  (iii) All deferral arrangements under Section 5(d) will be
         settled in accordance with the plans and programs governing the
         deferral, and all rights under the USERP and any other benefit plan
         shall be governed by such plan (subject to Section 5(b)).

         (b) TERMINATION BY EXECUTIVE OTHER THAN FOR GOOD REASON. Executive may
terminate his employment hereunder voluntarily for reasons other than Good
Reason (as defined in Section 8(e)) at any time upon 90 days' written notice to
the Company. An election by Executive not to extend the Term pursuant to Section
2 hereof shall be deemed to be a termination of employment by Executive for
reasons other than Good Reason at the date of expiration of the Term, unless a
Change in Control (as defined in Section 8(b)) occurs prior to, and there exists
Good Reason at, such date of expiration. At the time Executive's employment is
terminated by Executive other than for Good Reason the Term will terminate, all
obligations of the Company and Executive under Sections 1 through 5 of this
Agreement will immediately cease, and the Company will pay Executive, and
Executive will be entitled to receive, the following:

         (i)      Executive's Compensation Accrued at Termination;

         (ii)     All stock options, restricted stock and deferred stock awards,
                  including outstanding PERS awards, and all other long-term
                  incentive awards will be governed by the terms of the plans
                  and programs under which the awards were granted; and

         (iii)    All deferral arrangements under Section 5(d) will be settled
                  in accordance with the plans and programs governing the
                  deferral, and all rights under the USERP and any other benefit
                  plan shall be governed by such plan.

         (c) TERMINATION BY THE COMPANY WITHOUT CAUSE PRIOR TO OR MORE THAN TWO
YEARS AFTER A CHANGE IN CONTROL. The Company may terminate the employment of
Executive hereunder without Cause, if at the date of termination no Change in
Control has occurred or such date of termination is at least two years after the
most recent Change in Control, upon at least 90 days' written notice to
Executive. The foregoing notwithstanding, the Company may elect, by written
notice to Executive, to terminate Executive's positions specified in Sections 1
and 3 and all other obligations of Executive and the Company under Section 3 at
a date earlier than the expiration of such 90-day period, if so specified by the
Company in the written notice, provided that Executive shall be treated as an
employee of the Company (without any

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assigned duties) for all other purposes of this Agreement, including for
purposes of Sections 4 and 5, from such specified date until the expiration of
such 90-day period. An election by the Company not to extend the Term pursuant
to Section 2 hereof shall be deemed to be a termination of Executive's
employment by the Company without Cause at the date of expiration of the Term
and shall be subject to this Section 7(c) if at the date of such termination no
Change in Control has occurred or such date of termination is at least two years
after the most recent Change in Control; provided, however, that, if Executive
has attained age 65 at such date of termination, such termination shall be
deemed a Retirement of Executive. At the time Executive's employment is
terminated by the Company (i.e., at the expiration of such notice period), the
Term will terminate, all remaining obligations of the Company and Executive
under Sections 1 through 5 of this Agreement will immediately cease (except for
obligations which continue after termination of employment as expressly provided
herein), and the Company will pay Executive, and Executive will be entitled to
receive, the following:

         (i)      Executive's Compensation Accrued at Termination;

         (ii)     Cash in an aggregate amount equal to one times the sum of (A)
                  Executive's Base Salary under Section 4(a) immediately prior
                  to termination plus (B) an amount equal to the greater of (x)
                  the portion of Executive's annual target incentive
                  compensation potentially payable in cash to Executive (i.e.,
                  excluding the portion payable in PERS or in other non-cash
                  awards) for the year of termination or (y) the portion of
                  Executive's annual incentive compensation that became payable
                  in cash to Executive (i.e., excluding the portion payable in
                  PERS or in other non-cash awards) for the latest year
                  preceding the year of termination based on performance
                  actually achieved in that latest year. The amount determined
                  to be payable under this Section 7(c)(ii) shall be payable in
                  monthly installments over the 24 months following termination,
                  without interest, except the Company may elect to accelerate
                  payment of the remaining balance of such amount and to pay it
                  as a lump sum, without discount;

         (iii)    In lieu of any annual incentive compensation under Section
                  4(b) for the year in which Executive's employment terminated,
                  an amount equal to the portion of Executive's annual target
                  incentive compensation potentially payable in cash to
                  Executive (i.e., excluding the portion payable in PERS or in
                  other non-cash awards) for the year of termination, multiplied
                  by a fraction the numerator of which is the number of days
                  Executive was employed in the year of termination and the
                  denominator of which is the total number of days in the year
                  of termination;

         (iv)     Stock options held by Executive at termination, if not then
                  vested and exercisable, will become fully vested and
                  exercisable at the date of such termination, and, in other
                  respects (including the period following termination during
                  which such options may be exercised), such options shall be
                  governed by the plans and programs and the agreements and
                  other documents pursuant to which such options were granted;

         (v)      Any performance objectives upon which the earning of
                  performance-based restricted stock and deferred stock awards,
                  including outstanding PERS awards, and other long-term
                  incentive awards is conditioned shall be deemed to have been
                  met at target level at the date of termination, and restricted
                  stock and deferred stock awards, including outstanding PERS
                  awards, and other long-term incentive awards (to the extent
                  then or previously earned, in the case of performance-based
                  awards) shall become fully vested and non-forfeitable at the
                  date of such termination, and, in other respects, such awards
                  shall be governed by the plans and programs and the agreements
                  and other documents pursuant to which such awards were
                  granted;

         (vi)     All deferral arrangements under Section 5(d) will be settled
                  in accordance with the plans and programs governing the
                  deferral;

         (vii)    All rights under the USERP shall be governed by such plan
                  (subject to Section 5(b)); and

                                       8
<PAGE>

         (viii)   For a period of two years after such termination (but not
                  after Executive attains age 65), Executive shall continue to
                  participate in those employee and executive benefit plans and
                  programs under Section 5(b) to the extent such plans and
                  programs provide medical insurance, disability insurance and
                  life insurance benefits (but not other benefits, such as
                  pension and retirement benefits, provided under Section 5(b))
                  in which Executive was participating immediately prior to
                  termination, the terms of which allow Executive's continued
                  participation, as if Executive had continued in employment
                  with the Company during such period; provided, however, that
                  such participation shall terminate, or the benefits under such
                  plans and programs shall be reduced, if and to the extent
                  Executive becomes covered (or is eligible to become covered)
                  by plans of a subsequent employer or other entity to which
                  Executive provides services during such period providing
                  comparable benefits. If the terms of the Company plans and
                  programs referred to in this Section 7(c)(viii) do not allow
                  Executive's continued participation, Executive shall be paid a
                  cash payment equivalent on an after-tax basis to the value of
                  the additional benefits described in this Section 7(c)(viii)
                  Executive would have received under such plans or programs had
                  Executive continued to be employed during such period, with
                  such benefits provided by the Company at the same times and in
                  the same manner as such benefits would have been provided to
                  Executive under such plans and programs (it being understood
                  that the value of any insurance-provided benefits will be
                  based on the premium cost to Executive, which shall not exceed
                  the highest risk premium charged by a carrier having an
                  investment grade or better credit rating); provided, however,
                  that Executive must continue to satisfy the conditions set
                  forth in Section 10 in order to continue receiving the
                  benefits provided under this Section 7(c)(viii). Executive
                  agrees to promptly notify the Company of any employment or
                  other arrangement by which Executive provides services during
                  the benefits-continuation period and of the nature and extent
                  of benefits for which Executive becomes eligible during such
                  period which would reduce or terminate benefits under this
                  Section 7(c)(viii); and the Company shall be entitled to
                  recover from Executive any payments and the fair market value
                  of benefits previously made or provided to Executive hereunder
                  which would not have been paid under this Section 7(c)(viii)
                  if the Company had received adequate prior notice as required
                  by this sentence.

         (d) TERMINATION BY EXECUTIVE FOR GOOD REASON PRIOR TO OR MORE THAN TWO
YEARS AFTER A CHANGE IN CONTROL. Executive may terminate his employment
hereunder for Good Reason, prior to a Change in Control or after the second
anniversary of the most recent Change in Control, upon 90 days' written notice
to the Company; provided, however, that, if the Company has corrected the basis
for such Good Reason within 30 days after receipt of such notice, Executive may
not terminate his employment for Good Reason, and therefore Executive's notice
of termination will automatically become null and void. At the time Executive's
employment is terminated by Executive for Good Reason (i.e., at the expiration
of such notice period), the Term will terminate, all obligations of the Company
and Executive under Sections 1 through 5 of this Agreement will immediately
cease (except for obligations which continue after termination of employment as
expressly provided herein), and the Company will pay Executive, and Executive
will be entitled to receive, the following:

         (i)      Executive's Compensation Accrued at Termination;

         (ii)     Cash in an aggregate amount equal to one times the sum of (A)
                  Executive's Base Salary under Section 4(a) immediately prior
                  to termination plus (B) an amount equal to the greater of (x)
                  the portion of Executive's annual target incentive
                  compensation potentially payable in cash to Executive (i.e.,
                  excluding the portion payable in PERS or in other non-cash
                  awards) for the year of termination or (y) the portion of
                  Executive's annual incentive compensation that became payable
                  in cash to Executive (i.e., excluding the portion payable in
                  PERS or in other non-cash awards) for the latest year
                  preceding the year of termination based on performance
                  actually achieved in that latest year. The amount determined
                  to be payable under this Section 7(d)(ii) shall be payable in
                  monthly installments over the 24 months following termination,
                  without interest, except the

                                       9
<PAGE>

                  Company may elect to accelerate payment of the remaining
                  balance of such amount and to pay it as a lump sum, without
                  discount;

         (iii)    In lieu of any annual incentive compensation under Section
                  4(b) for the year in which Executive's employment terminated,
                  an amount equal to the portion of Executive's annual target
                  incentive compensation potentially payable in cash to
                  Executive (i.e., excluding the portion payable in PERS or in
                  other non-cash awards) for the year of termination, multiplied
                  by a fraction the numerator of which is the number of days
                  Executive was employed in the year of termination and the
                  denominator of which is the total number of days in the year
                  of termination;

         (iv)     Stock options held by Executive at termination, if not then
                  vested and exercisable, will become fully vested and
                  exercisable at the date of such termination, and, in other
                  respects (including the period following termination during
                  which such options may be exercised), such options shall be
                  governed by the plans and programs and the agreements and
                  other documents pursuant to which such options were granted;

         (v)      Any performance objectives upon which the earning of
                  performance-based restricted stock and deferred stock awards,
                  including outstanding PERS awards, and other long-term
                  incentive awards is conditioned shall be deemed to have been
                  met at target level at the date of termination, and restricted
                  stock and deferred stock awards, including outstanding PERS
                  awards, and other long-term incentive awards (to the extent
                  then or previously earned, in the case of performance-based
                  awards) shall become fully vested and non-forfeitable at the
                  date of such termination, and, in other respects, such awards
                  shall be governed by the plans and programs and the agreements
                  and other documents pursuant to which such awards were
                  granted;

         (vi)     All deferral arrangements under Section 5(d) will be settled
                  in accordance with the plans and programs governing the
                  deferral;

         (vii)    All rights under the USERP shall be governed by such plan
                  (subject to Section 5(b)); and

         (viii)   For a period of two years after such termination (but not
                  after Executive attains age 65), Executive shall continue to
                  participate in those employee and executive benefit plans and
                  programs under Section 5(b) to the extent such plans and
                  programs provide medical insurance, disability insurance and
                  life insurance benefits (but not other benefits, such as
                  pension and retirement benefits, provided under Section 5(b))
                  in which Executive was participating immediately prior to
                  termination, the terms of which allow Executive's continued
                  participation, as if Executive had continued in employment
                  with the Company during such period; provided, however, that
                  such participation shall terminate, or the benefits under such
                  plans and programs shall be reduced, if and to the extent
                  Executive becomes covered (or is eligible to become covered)
                  by plans of a subsequent employer or other entity to which
                  Executive provides services during such period providing
                  comparable benefits. If the terms of the Company plans and
                  programs referred to in this Section 7(d)(viii) do not allow
                  Executive's continued participation, Executive shall be paid a
                  cash payment equivalent on an after-tax basis to the value of
                  the additional benefits described in this Section 7(d)(viii)
                  Executive would have received under such plans or programs had
                  Executive continued to be employed during such period, with
                  such benefits provided by the Company at the same times and in
                  the same manner as such benefits would have been provided to
                  Executive under such plans and programs (it being understood
                  that the value of any insurance-provided benefits will be
                  based on the premium cost to Executive, which shall not exceed
                  the highest risk premium charged by a carrier having an
                  investment grade or better credit rating); provided, however,
                  that Executive must continue to satisfy the conditions set
                  forth in Section 10 in order to continue receiving the
                  benefits provided under this Section 7(d)(viii). Executive
                  agrees to promptly notify the Company of any employment or
                  other arrangement by which Executive provides services during
                  the benefits-continuation period and of the nature and

                                       10
<PAGE>

                  extent of benefits for which Executive becomes eligible during
                  such period which would reduce or terminate benefits under
                  this Section 7(d)(viii); and the Company shall be entitled to
                  recover from Executive any payments and the fair market value
                  of benefits previously made or provided to Executive hereunder
                  which would not have been paid under this Section 7(d)(viii)
                  if the Company had received adequate prior notice as required
                  by this sentence.

If any payment or benefit under this Section 7(d) is based on Base Salary or
other level of compensation or benefits at the time of Executive's termination
and if a reduction in such Base Salary or other level of compensation or benefit
was the basis for Executive's termination for Good Reason, then the Base Salary
or other level of compensation in effect before such reduction shall be used to
calculate payments or benefits under this Section 7(d).

         (e) TERMINATION BY THE COMPANY WITHOUT CAUSE WITHIN TWO YEARS AFTER A
CHANGE IN CONTROL. The Company may terminate the employment of Executive
hereunder without Cause, simultaneously with or within two years after a Change
in Control, upon at least 90 days' written notice to Executive. The foregoing
notwithstanding, the Company may elect, by written notice to Executive, to
terminate Executive's positions specified in Sections 1 and 3 and all other
obligations of Executive and the Company under Section 3 at a date earlier than
the expiration of such 90-day notice period, if so specified by the Company in
the written notice, provided that Executive shall be treated as an employee of
the Company (without any assigned duties) for all other purposes of this
Agreement, including for purposes of Sections 4 and 5, from such specified date
until the expiration of such 90-day period. An election by the Company not to
extend the Term pursuant to Section 2 hereof shall be deemed to be a termination
of Executive's employment by the Company without Cause at the date of expiration
of the Term and shall be subject to this Section 7(e) if the date of such
termination coincides with or is within two years after a Change in Control;
provided, however, that, if Executive has attained age 65 at such date of
termination, such termination shall be deemed a Retirement of Executive. At the
time Executive's employment is terminated by the Company (i.e., at the
expiration of such notice period), the Term will terminate, all remaining
obligations of the Company and Executive under Sections 1 through 5 of this
Agreement will immediately cease (except for obligations which continue after
termination of employment as expressly provided herein), and the Company will
pay Executive, and Executive will be entitled to receive, the following:

         (i)      Executive's Compensation Accrued at Termination;

         (ii)     Cash in an aggregate amount equal to three times the sum of
                  (A) Executive's Base Salary under Section 4(a) immediately
                  prior to termination plus (B) an amount equal to the greater
                  of (x) the portion of Executive's annual target incentive
                  compensation potentially payable in cash to Executive (i.e.,
                  excluding the portion payable in PERS or in other non-cash
                  awards) for the year of termination or (y) the portion of
                  Executive's annual incentive compensation that became payable
                  in cash to Executive (i.e., excluding the portion payable in
                  PERS or in other non-cash awards) for the latest year
                  preceding the year of termination based on performance
                  actually achieved in that latest year. The amount determined
                  to be payable under this Section 7(e)(ii) shall be paid by the
                  Company not later than 15 days after Executive's termination;

         (iii)    In lieu of any annual incentive compensation under Section
                  4(b) for the year in which Executive's employment terminated,
                  an amount equal to the portion of Executive's annual target
                  incentive compensation potentially payable in cash to
                  Executive (i.e., excluding the portion payable in PERS or in
                  other non-cash awards) for the year of termination, multiplied
                  by a fraction the numerator of which is the number of days
                  Executive was employed in the year of termination and the
                  denominator of which is the total number of days in the year
                  of termination;

         (iv)     Stock options held by Executive at termination, if not then
                  vested and exercisable, will become fully vested and
                  exercisable at the date of such termination, and any such
                  options granted on or after the date hereof shall remain
                  outstanding and exercisable until the stated expiration date
                  of the Option as though Executive's employment did not

                                       11
<PAGE>
                  terminate, and, in other respects, such options shall be
                  governed by the plans and programs and the agreements and
                  other documents pursuant to which such options were granted;

         (v)      Any performance objectives upon which the earning of
                  performance-based restricted stock and deferred stock awards,
                  including outstanding PERS awards, and other long-term
                  incentive awards is conditioned shall be deemed to have been
                  met at target level at the date of termination, and restricted
                  stock and deferred stock awards, including outstanding PERS
                  awards, and other long-term incentive awards (to the extent
                  then or previously earned, in the case of performance-based
                  awards) shall become fully vested and non-forfeitable at the
                  date of such termination, and, in other respects, such awards
                  shall be governed by the plans and programs and the agreements
                  and other documents pursuant to which such awards were
                  granted;

         (vi)     All deferral arrangements under Section 5(d) will be settled
                  in accordance with the plans and programs governing the
                  deferral;

         (vii)    All rights under the USERP shall be governed by such plan
                  (subject to Section 5(b)); and

         (viii)   For a period of three years after such termination (but not
                  after Executive attains age 65), Executive shall continue to
                  participate in those employee and executive benefit plans and
                  programs under Section 5(b) to the extent such plans and
                  programs provide medical insurance, disability insurance and
                  life insurance benefits (but not other benefits, such as
                  pension and retirement benefits, provided under Section 5(b))
                  in which Executive was participating immediately prior to
                  termination, the terms of which allow Executive's continued
                  participation, as if Executive had continued in employment
                  with the Company during such period; provided, however, that
                  such participation shall terminate, or the benefits under such
                  plans and programs shall be reduced, if and to the extent
                  Executive becomes covered (or is eligible to become covered)
                  by plans of a subsequent employer or other entity to which
                  Executive provides services during such period providing
                  comparable benefits. If the terms of the Company plans and
                  programs referred to in this Section 7(e)(viii) do not allow
                  Executive's continued participation, Executive shall be paid a
                  cash payment equivalent on an after-tax basis to the value of
                  the additional benefits described in this Section 7(e)(viii)
                  Executive would have received under such plans or programs had
                  Executive continued to be employed during such period, with
                  such benefits provided by the Company at the same times and in
                  the same manner as such benefits would have been provided to
                  Executive under such plans and programs (it being understood
                  that the value of any insurance-provided benefits will be
                  based on the premium cost to Executive, which shall not exceed
                  the highest risk premium charged by a carrier having an
                  investment grade or better credit rating); provided, however,
                  that Executive must continue to satisfy the conditions set
                  forth in Section 10 in order to continue receiving the
                  benefits provided under this Section 7(e)(viii). Executive
                  agrees to promptly notify the Company of any employment or
                  other arrangement by which Executive provides services during
                  the benefits-continuation period and of the nature and extent
                  of benefits for which Executive becomes eligible during such
                  period which would reduce or terminate benefits under this
                  Section 7(e)(viii); and the Company shall be entitled to
                  recover from Executive any payments and the fair market value
                  of benefits previously made or provided to Executive hereunder
                  which would not have been paid under this Section 7(e)(viii)
                  if the Company had received adequate prior notice as required
                  by this sentence.

         (f) TERMINATION BY EXECUTIVE FOR GOOD REASON WITHIN TWO YEARS AFTER A
CHANGE IN CONTROL. Executive may terminate his employment hereunder for Good
Reason, simultaneously with or within two years after a Change in Control, upon
90 days' written notice to the Company; provided, however, that, if the Company
has corrected the basis for such Good Reason within 30 days after receipt of
such notice, Executive may not terminate his employment for Good Reason, and
therefore Executive's notice of termination will automatically become null and
void. At the time Executive's employment is

                                       12
<PAGE>
terminated by Executive for Good Reason (i.e., at the expiration of such notice
period), the Term will terminate, all obligations of the Company and Executive
under Sections 1 through 5 of this Agreement will immediately cease (except for
obligations which continue after termination of employment as expressly provided
herein), and the Company will pay Executive, and Executive will be entitled to
receive, the following:

         (i)      Executive's Compensation Accrued at Termination;

         (ii)     Cash in an aggregate amount equal to three times the sum of
                  (A) Executive's Base Salary under Section 4(a) immediately
                  prior to termination plus (B) an amount equal to the greater
                  of (x) the portion of Executive's annual target incentive
                  compensation potentially payable in cash to Executive (i.e.,
                  excluding the portion payable in PERS or in other non-cash
                  awards) for the year of termination or (y) the portion of
                  Executive's annual incentive compensation that became payable
                  in cash to Executive (i.e., excluding the portion payable in
                  PERS or in other non-cash awards) for the latest year
                  preceding the year of termination based on performance
                  actually achieved in that latest year. The amount determined
                  to be payable under this Section 7(f)(ii) shall be paid by the
                  Company not later than 15 days after Executive's termination;

         (iii)    In lieu of any annual incentive compensation under Section
                  4(b) for the year in which Executive's employment terminated,
                  an amount equal to the portion of Executive's annual target
                  incentive compensation potentially payable in cash to
                  Executive (i.e., excluding the portion payable in PERS or in
                  other non-cash awards) for the year of termination, multiplied
                  by a fraction the numerator of which is the number of days
                  Executive was employed in the year of termination and the
                  denominator of which is the total number of days in the year
                  of termination;

         (iv)     Stock options held by Executive at termination, if not then
                  vested and exercisable, will become fully vested and
                  exercisable at the date of such termination, and any such
                  options granted on or after the date hereof shall remain
                  outstanding and exercisable until the stated expiration date
                  of the Option as though Executive's employment did not
                  terminate, and, in other respects, such options shall be
                  governed by the plans and programs and the agreements and
                  other documents pursuant to which such options were granted;

         (v)      Any performance objectives upon which the earning of
                  performance-based restricted stock and deferred stock awards,
                  including outstanding PERS awards, and other long-term
                  incentive awards is conditioned shall be deemed to have been
                  met at target level at the date of termination, and restricted
                  stock and deferred stock awards, including outstanding PERS
                  awards, and other long-term incentive awards (to the extent
                  then or previously earned, in the case of performance-based
                  awards) shall become fully vested and non-forfeitable at the
                  date of such termination, and, in other respects, such awards
                  shall be governed by the plans and programs and the agreements
                  and other documents pursuant to which such awards were
                  granted;

         (vi)     All deferral arrangements under Section 5(d) will be settled
                  in accordance with the plans and programs governing the
                  deferral;

         (vii)    All rights under the USERP shall be governed by such plan
                  (subject to Section 5(b)); and

         (viii)   For a period of three years after such termination (but not
                  after Executive attains age 65), Executive shall continue to
                  participate in those employee and executive benefit plans and
                  programs under Section 5(b) to the extent such plans and
                  programs provide medical insurance, disability insurance and
                  life insurance benefits (but not other benefits, such as
                  pension and retirement benefits, provided under Section 5(b))
                  in which Executive was participating immediately prior to
                  termination, the terms of which allow Executive's continued
                  participation, as if Executive had continued in employment
                  with the Company during such period; provided, however, that
                  such participation shall terminate, or the

                                       13
<PAGE>

                  benefits under such plans and programs shall be reduced, if
                  and to the extent Executive becomes covered (or is eligible to
                  become covered) by plans of a subsequent employer or other
                  entity to which Executive provides services during such period
                  providing comparable benefits. If the terms of the Company
                  plans and programs referred to in this Section 7(f)(viii) do
                  not allow Executive's continued participation, Executive shall
                  be paid a cash payment equivalent on an after-tax basis to the
                  value of the additional benefits described in this Section
                  7(f)(viii) Executive would have received under such plans or
                  programs had Executive continued to be employed during such
                  period, with such benefits provided by the Company at the same
                  times and in the same manner as such benefits would have been
                  provided to Executive under such plans and programs (it being
                  understood that the value of any insurance-provided benefits
                  will be based on the premium cost to Executive, which shall
                  not exceed the highest risk premium charged by a carrier
                  having an investment grade or better credit rating); provided,
                  however, that Executive must continue to satisfy the
                  conditions set forth in Section 10 in order to continue
                  receiving the benefits provided under this Section 7(f)(viii).
                  Executive agrees to promptly notify the Company of any
                  employment or other arrangement by which Executive provides
                  services during the benefits-continuation period and of the
                  nature and extent of benefits for which Executive becomes
                  eligible during such period which would reduce or terminate
                  benefits under this Section 7(f)(viii); and the Company shall
                  be entitled to recover from Executive any payments and the
                  fair market value of benefits previously made or provided to
                  Executive hereunder which would not have been paid under this
                  Section 7(f)(viii) if the Company had received adequate prior
                  notice as required by this sentence.

If any payment or benefit under this Section 7(f) is based on Base Salary or
other level of compensation or benefits at the time of Executive's termination
and if a reduction in such Base Salary or other level of compensation or benefit
was the basis for Executive's termination for Good Reason, then the Base Salary
or other level of compensation in effect before such reduction shall be used to
calculate payments or benefits under this Section 7(f).

         (g) OTHER TERMS RELATING TO CERTAIN TERMINATIONS OF EMPLOYMENT. Whether
a termination is deemed to be at or within two years after a Change in Control
for purposes of Sections 7(c), (d), (e), or (f) is determined at the date of
termination, regardless of whether the Change in Control had occurred at the
time a notice of termination was given. In the event Executive's employment
terminates for any reason set forth in Section 7(b) through (f), Executive will
be entitled to the benefit of any terms of plans or agreements applicable to
Executive which are more favorable than those specified in this Section 7
(except in the case of annual incentives in lieu of which amounts are paid
hereunder). Amounts payable under this Section 7 following Executive's
termination of employment, other than those expressly payable on a deferred
basis, will be paid as promptly as practicable after such a termination of
employment, and such amounts payable under Section 7(e) or 7(f) will be paid in
no event later than 15 days after Executive's termination of employment unless
not determinable within such period.

8.       DEFINITIONS RELATING TO TERMINATION EVENTS.

         (a) "CAUSE." For purposes of this Agreement, "Cause" shall mean
Executive's

                  (i) willful and continued failure to substantially perform his
         duties hereunder (other than any such failure resulting from incapacity
         due to physical or mental illness or disability or any failure after
         the issuance of a notice of termination by Executive for Good Reason)
         which failure is demonstrably and materially damaging to the financial
         condition or reputation of the Company and/or its subsidiaries, and
         which failure continues more than 48 hours after a written demand for
         substantial performance is delivered to Executive by the Board, which
         demand specifically identifies the manner in which the Board believes
         that Executive has not substantially performed his duties hereunder and
         the demonstrable and material damage caused thereby; or

                  (ii) the willful engaging by Executive in conduct which is
         demonstrably and materially injurious to the Company, monetarily or
         otherwise.

                                       14
<PAGE>

No act, or failure to act, on the part of Executive shall be deemed "willful"
unless done, or omitted to be done, by Executive not in good faith and without
reasonable belief that his action or omission was in the best interest of the
Company. Notwithstanding the foregoing, Executive shall not be deemed to have
been terminated for Cause unless and until there shall have been delivered to
Executive a copy of the resolution duly adopted by the affirmative vote of not
less than three-quarters (3/4) of the entire membership of the Board at a
meeting of the Board (after reasonable notice to Executive and an opportunity
for Executive, together with Executive's counsel, to be heard before the Board)
finding that, in the good faith opinion of the Board, Executive was guilty of
conduct set forth above in this definition and specifying the particulars
thereof in detail.

         (b) "CHANGE IN CONTROL." For purposes of this Agreement, a "Change in
Control" shall be deemed to have occurred if, during the term of this Agreement:

                  (i) any "Person," as such term is used for purposes of Section
         13(d) or 14(d) of the Securities Exchange Act of 1934, as amended (the
         "Exchange Act") (other than the Company, any trustee or other fiduciary
         holding securities under an employee benefit plan of the Company, or
         any company owned, directly or indirectly, by the stockholders of the
         Company in substantially the same proportions as their ownership of
         stock of the Company), becomes the "Beneficial Owner" (as defined in
         Rule 13d-3 under the Exchange Act), directly or indirectly, of
         securities of the Company representing 20% or more of the combined
         voting power of the Company's then-outstanding securities;

                  (ii) during any period of twenty-four months (not including
         any period prior to the effectiveness of this Agreement), individuals
         who at the beginning of such period constitute the Board, and any new
         director (other than (A) a director nominated by a Person who has
         entered into an agreement with the Company to effect a transaction
         described in Sections (8)(b)(i), (iii) or (iv) hereof, (B) a director
         nominated by any Person (including the Company) who publicly announces
         an intention to take or to consider taking actions (including, but not
         limited to, an actual or threatened proxy contest) which if consummated
         would constitute a Change in Control or (C) a director nominated by any
         Person who is the Beneficial Owner, directly or indirectly, of
         securities of the Company representing 10% or more of the combined
         voting power of the Company's securities) whose election by the Board
         or nomination for election by the Company's stockholders was approved
         in advance by a vote of at least two-thirds (2/3) of the directors then
         still in office who either were directors at the beginning of the
         period or whose election or nomination for election was previously so
         approved, cease for any reason to constitute at least a majority
         thereof;

                  (iii) the stockholders of the Company approve any transaction
         or series of transactions under which the Company is merged or
         consolidated with any other company, other than a merger or
         consolidation (A) which would result in the voting securities of the
         Company outstanding immediately prior thereto continuing to represent
         (either by remaining outstanding or by being converted into voting
         securities of the surviving entity) more than 66 2/3% of the combined
         voting power of the voting securities of the Company or such surviving
         entity outstanding immediately after such merger or consolidation and
         (B) after which no Person holds 20% or more of the combined voting
         power of the then-outstanding securities of the Company or such
         surviving entity;

                  (iv) the stockholders of the Company approve a plan of
         complete liquidation of the Company or an agreement for the sale or
         disposition by the Company of all or substantially all of the Company's
         assets; or

                  (v) the Board adopts a resolution to the effect that, for
         purposes of this Agreement, a Change in Control has occurred.

         (c) "COMPENSATION ACCRUED AT TERMINATION." For purposes of this
Agreement, "Compensation Accrued at Termination" means the following:

                                       15
<PAGE>

                  (i) The unpaid portion of annual base salary at the rate
         payable, in accordance with Section 4(a) hereof, at the date of
         Executive's termination of employment, pro rated through such date of
         termination, payable in accordance with the Company's regular pay
         schedule;

                  (ii) All vested, nonforfeitable amounts owing or accrued at
         the date of Executive's termination of employment under any
         compensation and benefit plans, programs, and arrangements set forth or
         referred to in Sections 4(b) and 5(a) and 5(b) hereof (including any
         earned and vested annual incentive compensation and long-term incentive
         award) in which Executive theretofore participated, payable in
         accordance with the terms and conditions of the plans, programs, and
         arrangements (and agreements and documents thereunder) pursuant to
         which such compensation and benefits were granted or accrued; and

                  (iii) Reasonable business expenses and disbursements incurred
         by Executive prior to Executive's termination of employment, to be
         reimbursed to Executive, as authorized under Section 5(f), in
         accordance the Company's reimbursement policies as in effect at the
         date of such termination.

         (d) "DISABILITY." For purposes of this Agreement, "Disability" means
Executive's absence from the full-time performance of Executive's duties
hereunder for six consecutive months as a result of his incapacity due to
physical or mental illness or disability, and, within 30 days after written
notice of termination is thereafter given by the Company, Executive shall have
not returned to the full-time performance of such duties.

         (e) "GOOD REASON." For purposes of this Agreement, "Good Reason" shall
mean, without Executive's express written consent, the occurrence of any of the
following circumstances unless, in the case of subsections (i), (iv), (vi) or
(viii) hereof, such circumstances are fully corrected prior to the date of
termination specified in the notice of termination given in respect thereof:

           (i)    the assignment to Executive of duties inconsistent with
                  Executive's position and status hereunder, or an alteration,
                  adverse to Executive, in the nature of Executive's duties,
                  responsibilities, and authorities, Executive's positions or
                  the conditions of Executive's employment from those specified
                  in Section 3 or otherwise hereunder (other than inadvertent
                  actions which are promptly remedied); for this purpose, it
                  shall constitute "Good Reason" under this subsection (e)(i) if
                  Executive shall be required to report to and take direction
                  from any person or body other than the Chief Executive Officer
                  or Chief Administrative Officer of the Company and the Board;
                  except the foregoing shall not constitute Good Reason if
                  occurring in connection with the termination of Executive's
                  employment for Cause, Disability, Retirement, as a result of
                  Executive's death, or as a result of action by or with the
                  consent of Executive; for purposes of this Section 8(e)(i),
                  references to the Company (and the Board and stockholders of
                  the Company) refer to the ultimate parent company (and its
                  board and stockholders) succeeding the Company following an
                  acquisition in which the corporate existence of the Company
                  continues, in accordance with Section 12(b);

           (ii)   (A) a reduction by the Company in Executive's Base Salary, (B)
                  the setting of Executive's annual target incentive opportunity
                  or payment of earned annual incentive in amounts less than
                  specified under or otherwise not in conformity with Section 4
                  hereof, (C) a change in compensation or benefits not in
                  conformity with Section 5, or (D) a reduction, after a Change
                  in Control in perquisites from the level of such perquisites
                  as in effect immediately prior to the Change in Control or as
                  the same may have been increased from time to time after the
                  Change in Control except for across-the-board perquisite
                  reductions similarly affecting all senior executives of the
                  Company and all senior executives of any Person in control of
                  the Company;

         (iii)    the relocation of the principal place of Executive's
                  employment not in conformity with Section 3(b) hereof; for
                  this purpose, required travel on the Company's business will
                  not

                                       16
<PAGE>

                  constitute a relocation so long as the extent of such travel
                  is substantially consistent with Executive's customary
                  business travel obligations in periods prior to the Effective
                  Date;

           (iv)   the failure by the Company to pay to Executive any portion of
                  Executive's compensation or to pay to Executive any portion of
                  an installment of deferred compensation under any deferred
                  compensation program of the Company within seven days of the
                  date such compensation is due;

           (v)    the failure by the Company to continue in effect any material
                  compensation or benefit plan in which Executive participated
                  immediately prior to a Change in Control, unless an equitable
                  arrangement (embodied in an ongoing substitute or alternative
                  plan) has been made with respect to such plan, or the failure
                  by the Company to continue Executive's participation therein
                  (or in such substitute or alternative plan) on a basis not
                  materially less favorable, both in terms of the amounts of
                  compensation or benefits provided and the level of Executive's
                  participation relative to other participants, as existed at
                  the time of the Change in Control;

           (vi)   the failure of the Company to obtain a satisfactory agreement
                  from any successor to the Company to fully assume the
                  Company's obligations and to perform under this Agreement, as
                  contemplated in Section 12(b) hereof, in a form reasonably
                  acceptable to Executive;

           (vii)  any election by the Company not to extend the Term of this
                  Agreement at the next possible extension date under Section 2
                  hereof, unless Executive will have attained age 65 at or
                  before such extension date; or

           (viii) any other failure by the Company to perform any material
                  obligation under, or breach by the Company of any material
                  provision of, this Agreement.

         (f) "POTENTIAL CHANGE IN CONTROL" For purposes of this Agreement, a
"Change in Control" shall be deemed to have occurred if, during the term of this
Agreement:

                  (i) the Company enters into an agreement, the consummation of
         which would result in the occurrence of a Change in Control;

                  (ii) any Person (including the Company) publicly announces an
         intention to take or to consider taking actions which if consummated
         would constitute a Change in Control; or

                  (iii) the Board adopts a resolution to the effect that, for
         purposes of this Agreement, a Potential Change in Control has occurred.

9.       RABBI TRUST OBLIGATION UPON POTENTIAL CHANGE IN CONTROL; EXCISE
         TAX-RELATED PROVISIONS.

         (a) RABBI TRUST FUNDED UPON POTENTIAL CHANGE IN CONTROL. In the event
of a Potential Change in Control or Change in Control, the Company shall, not
later than 15 days thereafter, have established one or more rabbi trusts and
shall deposit therein cash in an amount sufficient to provide for full payment
of all potential obligations of the Company that would arise assuming
consummation of a Change in Control, or has arisen in the case of an actual
Change in Control, and a subsequent termination of Executive's employment under
Section 7(e) or (f). Such rabbi trust(s) shall be irrevocable and shall provide
that the Company may not, directly or indirectly, use or recover any assets of
the trust(s) until such time as all obligations which potentially could arise
hereunder have been settled and paid in full, subject only to the claims of
creditors of the Company in the event of insolvency or bankruptcy of the
Company; provided, however, that if no Change in Control has occurred within two
years after such Potential Change in Control, such rabbi trust(s) shall at the
end of such two-year period become revocable and may thereafter be revoked by
the Company.

                                       17
<PAGE>
           (b) GROSS-UP IF EXCISE TAX WOULD APPLY. In the event Executive
becomes entitled to any amounts or benefits payable in connection with a Change
in Control or other change in control (whether or not such amounts are payable
pursuant to this Agreement) (the "Severance Payments"), if any of such Severance
Payments are subject to the tax (the "Excise Tax") imposed by Section 4999 of
the Internal Revenue Code (or any similar federal, state or local tax that may
hereafter be imposed) (the "Code"), the Company shall pay to Executive at the
time specified in Section 9(b)(iii) hereof an additional amount (the "Gross-Up
Payment") such that the net amount retained by Executive, after deduction of any
Excise Tax on the Total Payments (as hereinafter defined) and any federal, state
and local income tax and Excise Tax upon the payment provided for by Section
9(b)(i), shall be equal to the Total Payments.

                  (i) For purposes of determining whether any of the Severance
         Payments will be subject to the Excise Tax and the amount of such
         Excise Tax:

                           (A) any other payments or benefits received or to be
                  received by Executive in connection with a Change in Control
                  or Executive's termination of employment (whether pursuant to
                  the terms of this Agreement or any other plan, arrangement or
                  agreement with the Company, any Person whose actions result in
                  a Change in Control or any Person affiliated with the Company
                  or such Person) (which, together with the Severance Payments,
                  constitute the "Total Payments") shall be treated as
                  "parachute payments" within the meaning of Section 280G(b)(2)
                  of the Code, and all "excess parachute payments" within the
                  meaning of Section 280G(b)(1) of the Code shall be treated as
                  subject to the Excise Tax, unless in the opinion of
                  nationally-recognized tax counsel selected by Executive such
                  other payments or benefits (in whole or in part) do not
                  constitute parachute payments, or such excess parachute
                  payments (in whole or in part) represent reasonable
                  compensation for services actually rendered within the meaning
                  of Section 280G(b)(4) of the Code in excess of the base amount
                  within the meaning of Section 280G(b)(3) of the Code, or are
                  otherwise not subject to the Excise Tax;

                           (B) the amount of the Total Payments which shall be
                  treated as subject to the Excise Tax shall be equal to the
                  lesser of (x) the total amount of the Total Payments and (y)
                  the amount of excess parachute payments within the meaning of
                  Section 280G(b)(1) of the Code (after applying Section
                  9(b)(i)(A) hereof); and

                           (C) the value of any non-cash benefits or any
                  deferred payments or benefit shall be determined by a
                  nationally-recognized accounting firm selected by Executive in
                  accordance with the principles of Sections 280G(d)(3) and (4)
                  of the Code.

                  (ii) For purposes of determining the amount of the Gross-Up
           Payment, Executive shall be deemed to pay federal income taxes at the
           highest marginal rate of federal income taxation in the calendar year
           in which the Gross-Up Payment is to be made and state and local
           income taxes at the highest marginal rate of taxation in the state
           and locality of Executive's residence on the Date of Termination, net
           of the maximum reduction in federal income taxes which could be
           obtained from deduction of such state and local taxes. In the event
           that the Excise Tax is subsequently determined to be less than the
           amount taken into account hereunder at the time of termination of
           Executive's employment, Executive shall repay to the Company within
           ten days after the time that the amount of such reduction in Excise
           Tax is finally determined the portion of the Gross-Up Payment
           attributable to such reduction (plus the portion of the Gross-Up
           Payment attributable to the Excise Tax and federal and state and
           local income tax imposed on the Gross-Up Payment being repaid by
           Executive if such repayment results in a reduction in Excise Tax
           and/or federal and state and local income tax deduction) plus
           interest on the amount of such repayment at the rate provided in
           Section 1274(b)(2)(B) of the Code. In the event that the Excise Tax
           is determined to exceed the amount taken into account hereunder at
           the time of the termination of Executive's employment (including by
           reason of any payment the existence or amount of which cannot be
           determined at the time of the Gross-Up Payment), the Company shall
           make an additional gross-up payment in respect of such excess within
           ten days after the time that the amount of such excess is finally
           determined.

                                       18
<PAGE>

                  (iii) The payments provided for in this Section 9(b) shall be
           made not later than the fifteenth day following the date of
           Executive's termination of employment; PROVIDED, HOWEVER, that if the
           amount of such payments cannot be finally determined on or before
           such day, the Company shall pay to Executive on such day an estimate,
           as determined in good faith by the Company, of the minimum amount of
           such payments and shall pay the remainder of such payments (together
           with interest at the rate provided in Section 1274(b)(2)(B) of the
           Code) as soon as the amount thereof can be determined but in no event
           later than the thirtieth day after the date of Executive's
           termination of employment. In the event that the amount of the
           estimated payments exceeds the amount subsequently determined to have
           been due, such excess shall constitute a loan by the Company to
           Executive, payable on the fifteenth day after the demand by the
           Company (together with interest at the rate provided in Section
           1274(b)(2)(B) of the Code).

                  (iv) All determinations under this Section 9(b) shall be made
           at the expense of the Company by a nationally recognized public
           accounting firm selected by Executive, and such determination shall
           be binding upon Executive and the Company.

10.      NON-COMPETITION AND NON-DISCLOSURE; EXECUTIVE COOPERATION;
         NON-DISPARAGEMENT.

         (a) NON-COMPETITION. Without the consent in writing of the Board,
Executive will not, at any time during the Term and for a period of two years
following termination of Executive's employment for any reason, acting alone or
in conjunction with others, directly or indirectly (i) engage (either as owner,
investor, partner, stockholder, employer, employee, consultant, advisor, or
director) in any business in which he has been directly engaged on behalf of the
Company or any affiliate, or has supervised as an executive thereof, during the
last two years prior to such termination, or which was engaged in or planned by
the Company or an affiliate at the time of such termination, in any geographic
area in which such business was conducted or planned to be conducted; (ii)
induce any customers of the Company or any of its affiliates with whom Executive
has had contacts or relationships, directly or indirectly, during and within the
scope of his employment with the Company or any of its affiliates, to curtail or
cancel their business with the Company or any such affiliate; (iii) induce, or
attempt to influence, any employee of the Company or any of its affiliates to
terminate employment; or (iv) solicit, hire or retain as an employee or
independent contractor, or assist any third party in the solicitation, hire, or
retention as an employee or independent contractor, any person who during the
previous 12 months was an employee of the Company or any affiliate; PROVIDED,
HOWEVER, that the limitation contained in clause (i) above shall not apply if
Executive's employment is terminated as a result of a termination by the Company
without Cause within two years following a Change in Control or is terminated by
Executive for Good Reason within two years following a Change in Control, and
provided further, that activities engaged in by or on behalf of the Company are
not restricted by this covenant. The provisions of subparagraphs (i), (ii),
(iii), and (iv) above are separate and distinct commitments independent of each
of the other subparagraphs. It is agreed that the ownership of not more than one
percent of the equity securities of any company having securities listed on an
exchange or regularly traded in the over-the-counter market shall not, of
itself, be deemed inconsistent with clause (i) of this Section 10(a).

         (b) NON-DISCLOSURE; OWNERSHIP OF WORK. Executive shall not, at any time
during the Term and thereafter (including following Executive's termination of
employment for any reason), disclose, use, transfer, or sell, except in the
course of employment with or other service to the Company, any proprietary
information, secrets, organizational or employee information, or other
confidential information belonging or relating to the Company and its affiliates
and customers so long as such information has not otherwise been disclosed or is
not otherwise in the public domain, except as required by law or pursuant to
legal process. In addition, upon termination of employment for any reason,
Executive will return to the Company or its affiliates all documents and other
media containing information belonging or relating to the Company or its
affiliates. Executive will promptly disclose in writing to the Company all
inventions, discoveries, developments, improvements and innovations
(collectively referred to as "Inventions") that Executive has conceived or made
during the Term; PROVIDED, HOWEVER, that in this context "Inventions" are
limited to those which (i) relate in any manner to the existing or contemplated
business or research activities of the Company and its affiliates; (ii) are
suggested by or result from Executive's work at the Company; or (iii) result
from the use of the time, materials or facilities of the Company and its
affiliates. All Inventions will be

                                       19
<PAGE>

the Company's property rather than Executive's. Should the Company request it,
Executive agrees to sign any document that the Company may reasonably require to
establish ownership in any Invention.

         (c) COOPERATION WITH REGARD TO LITIGATION. Executive agrees to
cooperate with the Company, during the Term and thereafter (including following
Executive's termination of employment for any reason), by making herself
available to testify on behalf of the Company or any subsidiary or affiliate of
the Company, in any action, suit, or proceeding, whether civil, criminal,
administrative, or investigative, and to assist the Company, or any subsidiary
or affiliate of the Company, in any such action, suit, or proceeding, by
providing information and meeting and consulting with the Board or its
representatives or counsel, or representatives or counsel to the Company, or any
subsidiary or affiliate of the Company, as requested. The Company agrees to
reimburse the Executive, on an after-tax basis, for all expenses actually
incurred in connection with her provision of testimony or assistance.

         (d) NON-DISPARAGEMENT. Executive shall not, at any time during the Term
and thereafter, make statements or representations, or otherwise communicate,
directly or indirectly, in writing, orally, or otherwise, or take any action
which may, directly or indirectly, disparage the Company or any of its
subsidiaries or affiliates or their respective officers, directors, employees,
advisors, businesses or reputations. Notwithstanding the foregoing, nothing in
this Agreement shall preclude Executive from making truthful statements that are
required by applicable law, regulation or legal process.

         (e) RELEASE OF EMPLOYMENT CLAIMS. Executive agrees, as a condition to
receipt of any termination payments and benefits provided for in Sections 6 and
7 herein (other than Compensation Accrued at Termination), that he will execute
a general release agreement, in a form satisfactory to the Company, releasing
any and all claims arising out of Executive's employment other than enforcement
of this Agreement and rights to indemnification under any agreement, law,
Company organizational document or policy, or otherwise.

         (f) FORFEITURE OF OUTSTANDING OPTIONS. The provisions of Sections 6 and
7 notwithstanding, if Executive willfully and materially fails to substantially
comply with any restrictive covenant under this Section 10 or willfully and
materially fails to substantially comply with any material obligation under this
Agreement, all options to purchase Common Stock granted by the Company and then
held by Executive or a transferee of Executive shall be immediately forfeited
and thereupon such options shall be cancelled. Notwithstanding the foregoing,
Executive shall not forfeit any option unless and until there shall have been
delivered to him, within six months after the Board (i) had knowledge of conduct
or an event allegedly constituting grounds for such forfeiture and (ii) had
reason to believe that such conduct or event could be grounds for such
forfeiture, a copy of a resolution duly adopted by a majority affirmative vote
of the membership of the Board (excluding Executive) at a meeting of the Board
called and held for such purpose (after giving Executive reasonable notice
specifying the nature of the grounds for such forfeiture and not less than 30
days to correct the acts or omissions complained of, if correctable, and
affording Executive the opportunity, together with his counsel, to be heard
before the Board) finding that, in the good faith opinion of the Board,
Executive has engaged and continues to engage in conduct set forth in this
Section 10(f) which constitutes grounds for forfeiture of Executive's options;
provided, however, that if any option is exercised after delivery of such notice
and the Board subsequently makes the determination described in this sentence,
Executive shall be required to pay to the Company an amount equal to the
difference between the aggregate value of the shares acquired upon such exercise
at the date of the Board determination and the aggregate exercise price paid by
Executive. Any such forfeiture shall apply to such options notwithstanding any
term or provision of any option agreement. In addition, options granted to
Executive on or after January 1, 2000, and gains resulting from the exercise of
such options, shall be subject to forfeiture in accordance with the Company's
standard policies relating to such forfeitures and clawbacks, as such policies
are in effect at the time of grant of such options.

         (g) SURVIVAL. The provisions of this Section 10 shall survive the
termination of the Term and any termination or expiration of this Agreement.

11.      GOVERNING LAW; DISPUTES; ARBITRATION.

         (a) GOVERNING LAW. This Agreement is governed by and is to be
construed, administered, and enforced in accordance with the laws of the State
of Connecticut, without regard to conflicts of law principles, except insofar as
federal laws and regulations and the Delaware General Corporation Law may

                                       20
<PAGE>

be applicable. If under the governing law, any portion of this Agreement is at
any time deemed to be in conflict with any applicable statute, rule, regulation,
ordinance, or other principle of law, such portion shall be deemed to be
modified or altered to the extent necessary to conform thereto or, if that is
not possible, to be omitted from this Agreement. The invalidity of any such
portion shall not affect the force, effect, and validity of the remaining
portion hereof. If any court determines that any provision of Section 10 is
unenforceable because of the duration or geographic scope of such provision, it
is the parties' intent that such court shall have the power to modify the
duration or geographic scope of such provision, as the case may be, to the
extent necessary to render the provision enforceable and, in its modified form,
such provision shall be enforced.

         (b) REIMBURSEMENT OF EXPENSES IN ENFORCING RIGHTS. All reasonable costs
and expenses (including fees and disbursements of counsel) incurred by Executive
in seeking to interpret this Agreement or enforce rights pursuant to this
Agreement shall be paid on behalf of or reimbursed to Executive promptly by the
Company, whether or not Executive is successful in asserting such rights;
provided, however, that no reimbursement shall be made of such expenses relating
to any unsuccessful assertion of rights if and to the extent that Executive's
assertion of such rights was in bad faith or frivolous, as determined by
arbitrators in accordance with Section 11(c) or a court having jurisdiction over
the matter.

         (c) ARBITRATION. Any dispute or controversy arising under or in
connection with this Agreement shall be settled exclusively by arbitration in
Westport, CT, by three arbitrators in accordance with the rules of the American
Arbitration Association in effect at the time of submission to arbitration.
Judgment may be entered on the arbitrators' award in any court having
jurisdiction. For purposes of entering any judgment upon an award rendered by
the arbitrators, the Company and Executive hereby consent to the jurisdiction of
any or all of the following courts: (i) the United States District Court for the
District of Connecticut, (ii) any of the courts of the State of Connecticut, or
(iii) any other court having jurisdiction. The Company and Executive further
agree that any service of process or notice requirements in any such proceeding
shall be satisfied if the rules of such court relating thereto have been
substantially satisfied. The Company and Executive hereby waive, to the fullest
extent permitted by applicable law, any objection which it may now or hereafter
have to such jurisdiction and any defense of inconvenient forum. The Company and
Executive hereby agree that a judgment upon an award rendered by the arbitrators
may be enforced in other jurisdictions by suit on the judgment or in any other
manner provided by law. Subject to Section 11(b), the Company shall bear all
costs and expenses arising in connection with any arbitration proceeding
pursuant to this Section 11. Notwithstanding any provision in this Section 11,
Executive shall be entitled to seek specific performance of Executive's right to
be paid during the pendency of any dispute or controversy arising under or in
connection with this Agreement.

         (d) INTEREST ON UNPAID AMOUNTS. Any amount which has become payable
pursuant to the terms of this Agreement or any decision by arbitrators or
judgment by a court of law pursuant to this Section 11 but which has not been
timely paid shall bear interest at the prime rate in effect at the time such
amount first becomes payable, as quoted by the Company's principal bank.

12.      MISCELLANEOUS.

         (a) INTEGRATION. This Agreement cancels and supersedes any and all
prior employment agreements and understandings between the parties hereto with
respect to the employment of Executive by the Company, any parent or predecessor
company, and the Company's subsidiaries during the Term, except for contracts
relating to compensation under executive compensation and employee benefit plans
of the Company and its subsidiaries. The foregoing notwithstanding, in the event
of any conflict or ambiguity between this Agreement and the Employee Protection
Plan as applicable to Executive or the Change-in-Control Agreement executed by
Executive and the Company, the provisions of this Agreement shall govern except
that Executive shall remain entitled to any right or benefit under the Employee
Protection Plan or the Change-in-Control Agreement for so long as such Plan or
Agreement remains in effect, if and to the extent that such right or benefit is
more favorable to Executive than a corresponding provision of this Agreement;
but no payment or benefit under the Employee Protection Plan or
Change-in-Control Agreement shall be made or extended which duplicates any
payment or benefit hereunder. If and to the extent that this Agreement may
provide enhanced benefits to Executive under the USERP which benefits are not
explicitly provided for under the USERP, the USERP shall be deemed amended by
this

                                       21
<PAGE>

Agreement (but only insofar as it pertains to Executive). This Agreement
constitutes the entire agreement among the parties with respect to the matters
herein provided, and no modification or waiver of any provision hereof shall be
effective unless in writing and signed by the parties hereto. Executive shall
not be entitled to any payment or benefit under this Agreement which duplicates
a payment or benefit received or receivable by Executive under any prior
agreements and understandings or under any benefit or compensation plan of the
Company which are in effect.

         (b) SUCCESSORS; TRANSFERABILITY. The Company shall require any
successor (whether direct or indirect, by purchase, merger, consolidation or
otherwise) to all or substantially all of the business and/or assets of the
Company to expressly assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform it
if no such succession had taken place.

         As used in this Agreement, "Company" shall mean the Company 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, or otherwise and, in the case of an acquisition of the Company in which the
corporate existence of the Company continues, the ultimate parent company
following such acquisition. Subject to the foregoing, the Company may transfer
and assign this Agreement and the Company's rights and obligations hereunder.
Neither this Agreement nor the rights or obligations hereunder of the parties
hereto shall be transferable or assignable by Executive, except in accordance
with the laws of descent and distribution or as specified in Section 12(c).

         (c) BENEFICIARIES. Executive shall be entitled to designate (and
change, to the extent permitted under applicable law) a beneficiary or
beneficiaries to receive any compensation or benefits provided hereunder
following Executive's death.

         (d) NOTICES. Whenever under this Agreement it becomes necessary to give
notice, such notice shall be in writing, signed by the party or parties giving
or making the same, and shall be served on the person or persons for whom it is
intended or who should be advised or notified, by Federal Express or other
similar overnight service or by certified or registered mail, return receipt
requested, postage prepaid and addressed to such party at the address set forth
below or at such other address as may be designated by such party by like
notice:

                  If to the Company:

                  IMS HEALTH INCORPORATED
                  200 Nyala Farms
                  Westport, CT  06880
                  Attention: Chief Administrative Officer

                  If to Executive:
                  Mr. Robert H. Steinfeld
                  32 Cowdin Circle
                  Chappaqua, NY  10514

         If the parties by mutual agreement supply each other with telecopier
numbers for the purposes of providing notice by facsimile, such notice shall
also be proper notice under this Agreement. In the case of Federal Express or
other similar overnight service, such notice or advice shall be effective when
sent, and, in the cases of certified or registered mail, shall be effective two
days after deposit into the mails by delivery to the U.S. Post Office.

         (e) REFORMATION. The invalidity of any portion of this Agreement shall
not be deemed to render the remainder of this Agreement invalid.

         (f) HEADINGS. The headings of this Agreement are for convenience of
reference only and do not constitute a part hereof.

                                       22
<PAGE>

         (g) NO GENERAL WAIVERS. The failure of any party at any time to require
performance by any other party of any provision hereof or to resort to any
remedy provided herein or at law or in equity shall in no way affect the right
of such party to require such performance or to resort to such remedy at any
time thereafter, nor shall the waiver by any party of a breach of any of the
provisions hereof be deemed to be a waiver of any subsequent breach of such
provisions. No such waiver shall be effective unless in writing and signed by
the party against whom such waiver is sought to be enforced.

         (h) NO OBLIGATION TO MITIGATE. Executive shall not be required to seek
other employment or otherwise to mitigate Executive's damages upon any
termination of employment, and any compensation or benefits received from any
other employment of Executive shall not mitigate or reduce the obligations of
the Company or the rights of Executive hereunder, except that, to the extent
Executive receives from a subsequent employer health or other insurance benefits
that are similar to the benefits referred to in Section 5(b) hereof, any such
benefits to be provided by the Company to Executive following the Term shall be
correspondingly reduced.

         (i) OFFSETS; WITHHOLDING. The amounts required to be paid by the
Company to Executive pursuant to this Agreement shall not be subject to offset
other than with respect to any amounts that are owed to the Company by Executive
due to his receipt of funds as a result of his fraudulent activity. The
foregoing and other provisions of this Agreement notwithstanding, all payments
to be made to Executive under this Agreement, including under Sections 6 and 7,
or otherwise by the Company, will be subject to withholding to satisfy required
withholding taxes and other required deductions.

         (j) SUCCESSORS AND ASSIGNS. This Agreement shall be binding upon and
shall inure to the benefit of Executive, his heirs, executors, administrators
and beneficiaries, and shall be binding upon and inure to the benefit of the
Company and its successors and assigns.

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

13.      INDEMNIFICATION.

         All rights to indemnification by the Company now existing in favor of
the Executive as provided in the Company's Certificate of Incorporation or
By-laws or pursuant to other agreements in effect on or immediately prior to the
Effective Date shall continue in full force and effect from the Effective Date
(including all periods after the expiration of the Term), and the Company shall
also advance expenses for which indemnification may be ultimately claimed as
such expenses are incurred to the fullest extent permitted under applicable law,
subject to any requirement that the Executive provide an undertaking to repay
such advances if it is ultimately determined that the Executive is not entitled
to indemnification; provided, however, that any determination required to be
made with respect to whether the Executive's conduct complies with the standards
required to be met as a condition of indemnification or advancement of expenses
under applicable law and the Company's Certificate of Incorporation, By-laws, or
other agreement shall be made by independent counsel mutually acceptable to the
Executive and the Company (except to the extent otherwise required by law).
After the date hereof, the Company shall not amend its Certificate of
Incorporation or By-laws or any agreement in any manner which adversely affects
the rights of the Executive to indemnification thereunder. Any provision
contained herein notwithstanding, this Agreement shall not limit or reduce any
rights of the Executive to indemnification pursuant to applicable law. In
addition, the Company will maintain directors' and officers' liability insurance
in effect and covering acts and omissions of Executive during the Term and for a
period of six years thereafter on terms substantially no less favorable than
those in effect on the Effective Date.

         IN WITNESS WHEREOF, Executive has hereunto set his hand and the Company
has caused this instrument to be duly executed as of the date of this Agreement
set forth in Section 1 hereof.

                                        IMS HEALTH INCORPORATED

                                        By: /s/ Victoria R. Fash
                                           -------------------------------------
                                        Name:   Victoria R. Fash
                                        Title:  President and
                                                Chief Executive Officer

                                       23
<PAGE>

                                        By: /s/ ROBERT E. WEISSMAN
                                           -------------------------------------
                                        Name:   Robert E. Weissman
                                        Title:  Chairman

                                        /s/ ROBERT H. STEINFELD
                                        ----------------------------------------
                                        Robert H. Steinfeld

                                       24<PAGE>

                              EMPLOYMENT AGREEMENT

THIS AGREEMENT, dated as of April 17, 2000, is made and entered into by and
between billserv.com inc., a Nevada corporation, having an office address at
14607 San Pedro Ave., Suite 100, San Antonio, Texas 78232 ("billserv.com" or the
"Company") and the individual named in Schedule 1 hereto, residing at the
address listed in Schedule 1 (hereinafter referred to as the "Executive").

                              W I T N E S S E T H:

WHEREAS, the Company desires to hire and retain the Executive as an Executive to
perform certain services for the Company.

NOW, THEREFORE, in consideration of the mutual covenants contained herein and on
the attached Schedule, and for other good and valuable consideration the receipt
of which is hereby acknowledged, the Company and the Executive hereby agree as
follows:

1.    Employment of Executive.

      (a)   The Company hereby employs the Executive in the capacity and for the
            position set forth on Schedule 1 attached hereto. Executive hereby
            accepts such employment with the Company upon the terms and
            conditions hereinafter set forth.

      (b)   The duties of the Executive shall include the duties and services
            described in Schedule 1, which duties and services shall at all
            times be subject to the direction, approval and control of the Board
            and shall include such other duties, as may be assigned by the Board
            commensurate with the responsibilities normally associated with
            Executive's position.

2.    Services to be Rendered.

      (a)   Executive shall perform such duties as are usually performed by an
            Executive with the position set forth in Schedule 1 of a business
            similar in size and scope as the Company and such other reasonable
            additional duties as may be prescribed from time to time by the
            Company which are reasonable and consistent with the Company's
            operations, taking into account Executive's expertise and job
            responsibilities. During the term of this Agreement, Executive
            agrees to devote her full time and attention to the business and
            affairs of the Company to the extent necessary to discharge the
            responsibilities assigned to Executive and to use reasonable efforts
            to perform faithfully and efficiently such responsibilities. The
            Executive will use Executive's best efforts to promote the interests
            of the Company.

      (b)   During this Agreement, it shall not be a violation of this Agreement
            for Executive to (i) serve on corporate, civic or charitable boards
            or committees; (ii) deliver lectures, fulfill speaking engagements
            or teach at educational institutions; or (iii) manage personal
            investments or companies in which personal investments are made so
            long as such activities do not significantly interfere with the
            performance of Executive's responsibilities with the Company and
            which companies are not in direct competition with the Company. Any
            income

<PAGE>

            incurred by Executive outside the scope of her employment and
            permitted pursuant to the provisions hereof, shall inure to the
            benefit of Executive, and the Company shall not claim any
            entitlement thereto; provided, however, that any income derived by
            Executive related to the business of the Company, including, without
            limitation, compensation for serving on boards of directors of
            companies in which the Company has a significant investment, shall
            be paid over to the Company as and when received.

      (c)   During the term of this Agreement, the Company shall furnish, at
            Executive's principal place of employment, an office, furnishings,
            secretary and such other facilities commensurate and suitable to her
            position and adequate for the performance of her duties hereunder.

3.    Term.

      (a)   Term of Employment. The term of this Agreement (the "Term") shall
            commence effective as of the date hereof (the "Commencement Date"),
            and shall continue until December 31, 2001, unless (i) extended by
            the mutual agreement of the Company and the Executive or (ii)
            extended or terminated as hereinafter provided.

      (b)   Termination of Employment by the Company for Cause. The Company may
            terminate Executive's employment if such termination is for "Cause"
            (as defined herein) and Cause is not cured by Executive within any
            available cure period provided below. For the purposes of this
            Agreement, "Cause" shall be defined as any of the following:

            (i)   any action or course of conduct by Executive which senior
                  executive management determines is materially detrimental to
                  the Company which is not cured within 15 days following
                  written notice thereof;

            (ii)  actions by Executive constituting fraud, embezzlement or
                  dishonesty as determined by the Company's Board of Directors
                  in its sole reasonable discretion;

            (iii) actions by Executive in intentionally furnishing materially
                  false, misleading, or omissive information to the Company's
                  Board of Directors that is materially detrimental to the
                  Company;

            (iv)  actions constituting a breach of the Sections 8 or 9 of this
                  Agreement which is materially detrimental to the Company;

            (v)   acts or omissions which constitute willful failure to follow
                  reasonable directives of the Company's Board of Directors,
                  which are consistent with Executive's job responsibilities and
                  performance which is not cured within 15 days following
                  written notice thereof.
<PAGE>

                  Upon termination for Cause, Executive shall immediately cease
                  to have any power of her position, but shall nevertheless be
                  given a reasonable opportunity to access her office with the
                  Company for the purpose of retrieving her personal goods and
                  files.

      (c)   Termination Without Cause. The Company has the right to terminate
            this Agreement without Cause upon written notice, subject to payment
            by the Company of the Deferred Compensation described in Section
            4(c) herein. In such event, Executive shall cease to have any power
            of her office as of the effective date of the termination specified
            in such written notice.

      (d)   Termination by Executive. Executive may terminate this Agreement
            upon 30 days' written notice after the occurrence of a material
            default of this Agreement by the Company, which default is not cured
            within the 30- day notice period. Such notice shall set forth in
            reasonable detail the acts underlying the default. If Executive
            terminates this Agreement under this Section 3(d), Executive shall
            be entitled to the Deferred Compensation as described in Section
            4(c) herein.

      (e)   Termination by Executive Upon Change of Control. Executive may
            terminate this Agreement upon 30 days' written notice at any time
            within 6 months following the occurrence of a "Change of Control",
            but only prior to Executive's receiving a notice of termination by
            the Company for Cause. Upon such termination Executive shall be
            entitled to the Deferred Compensation described in Section 4(c)
            herein. Change of Control is defined for the purposes of this
            Agreement as any of the following acts:

            (i)   The acquisition by any person, entity or "group" within the
                  meaning of Section 13(d) or 14(d) of the Securities Exchange
                  Act of 1934, as amended (the "Exchange Act"), other than a
                  person, entity or "group" that includes Executive, of
                  beneficial ownership (within the meaning of Rule 13d-3
                  promulgated under the Exchange Act) of (A) prior to the
                  consummation of a Qualified Public Offering, more than 50% of
                  the combined voting power of the then outstanding voting
                  securities entitled to vote generally in the election of the
                  Board of Directors or (B) after the consummation of a
                  Qualified Public Offering, more than 40% of the combined
                  voting power of the then outstanding voting securities
                  entitled to vote generally in the election of the Board of
                  Directors ; or

            (ii)  If the individuals who serve on the Board of Directors as of
                  the Commencement Date (the "Incumbent Board") cease for any
                  reason to constitute at least a majority of the Board of
                  Directors; provided, however, any person who becomes a
                  director subsequent to the Commencement Date, whose election
                  or nomination for election was approved by a vote of at least
                  a majority of the directors then constituting the Incumbent
                  Board, shall for purposes of this Agreement be considered a
                  member of the Incumbent Board; or

            (iii) Approval by the Company's equity holders of (A) a merger,
                  reorganization or consolidation whereby the Company's equity
                  holders immediately prior to such approval do not, immediately
                  after consummation of such reorganization, merger or
                  consolidation own more

<PAGE>

                  than 50% of the combined voting power of the surviving
                  entity's then outstanding voting securities entitled to vote
                  generally in the election of directors; or (B) liquidation or
                  dissolution of the Company; or (C) the sale of all or
                  substantially all of the assets of the Company.

      (f)   Termination by Executive for Good Reason. Executive may terminate
            this Agreement upon 30 days' written notice if (i) Executive's
            duties are materially diminished or altered in a manner contrary to
            Section 1 and 2 of this Agreement, (ii) Executive's title is altered
            in a material and adverse manner, (iii) Executive's reporting
            relationship is materially and adversely modified, (iv) Executive's
            Base Salary, as provided hereunder, is diminished, (v) the
            methodology for calculating Executive's Bonus Compensation, as
            provided hereunder, is adversely (from the Executive's point of
            view) altered or (vi) the Company shall relocate its executive
            offices more than 40 miles from their current location (collectively
            "Good Reason"). Upon such termination Executive shall be entitled to
            the Deferred Compensation described in Section 4(c) herein.

      (g)   Termination by Executive Without Good Reason. Executive may
            terminate this Agreement without Good Reason upon 30 days' written
            notice. Upon the termination date specified in such written notice
            (which date shall be not more than 30 days following the date of
            such notice) Executive shall cease to have any power of her office.

4.    Compensation.

      (a)   Base Salary.

            (i)   Executive shall receive a base salary as set forth on Schedule
                  4(a)i attached hereto.

            (ii)  Each January, commencing with January 2001, the Board of
                  Directors of the Company shall review Executive's performance
                  and the Board of Directors may in its sole discretion elect to
                  increase the salary then paid to Executive above the amount
                  set forth on Schedule 4(a)(i), however, there shall be
                  absolutely no obligation to do so.

      (b)   Bonus Compensation.

            (i)   The Executive shall receive as "Bonus Compensation" each year,
                  the amount calculated in accordance with Schedule 4(b)
                  attached hereto.

            (ii)  If at anytime hereafter, the Company shall adopt a bonus
                  program, an option program or any other form of equity
                  participation for senior executive officers of the Company,
                  the Executive shall be eligible to participate in such bonus
                  program, option program or other form of equity participation
                  in a manner and capacity commensurate with her position and
                  duties.
<PAGE>

      (c)   Deferred Compensation.

            (i)   When Due. Executive (or his estate as the case may be) shall
                  be entitled to the Deferred Compensation as calculated below,
                  the initial installment of which is to be paid within 30 days
                  after the event giving rise to the payout (except as provided
                  below) in the event that Executive's employment is terminated
                  for any of the following reasons herein: (A) death of
                  Executive; (B) termination by the Company without cause
                  pursuant to Section 3(c); (C) termination by Executive upon
                  default by the Company pursuant to Section 3(d); (D)
                  termination by Executive after a Change of Control pursuant to
                  Section 3(e); (E) termination by the Executive pursuant to
                  Section 3(f); (F) termination by the Company pursuant to
                  Section 3(h); or (G) termination by the Company pursuant to
                  Section 7(a).

            (ii)  Amount. The Deferred Compensation shall be the amount ("Base
                  Deferred Compensation") which is calculated as the Base Salary
                  payments Executive would have received had her employment
                  continued for the remaining term of this Agreement. In
                  addition to the Base Deferred Compensation, Executive shall be
                  entitled to the following (which, together with the Base
                  Deferred Compensation and the Bonus Deferred Compensation (as
                  defined below) shall be collectively called the "Deferred
                  Compensation") all of the benefits and personal perquisites
                  otherwise provided in this Agreement (including automobile
                  expenses) during that period of time which is the greater of
                  (X) the remaining term of this Agreement, or (Y) one year (the
                  "Deferral Period") and an amount equal to the pro rata portion
                  of the Bonus Compensation for the year in which executive's
                  employment is terminated determined on the basis of the number
                  of days elapsed in such year prior to such termination (the
                  "Bonus Deferred Compensation"). The Deferred Compensation
                  herein shall be deemed liquidated damages resulting from the
                  Company's termination of this Agreement and shall be
                  Executive's sole and exclusive remedy for any such
                  termination. Deferred Compensation shall not be diminished or
                  offset by reason of any earnings by Executive subsequent to
                  the date of termination.

      (d)   Payment of Deferred Compensation. Except as provided below, the
            Deferred Compensation shall be paid in monthly installments over the
            12 months following the event giving rise to a Deferred
            Compensation. If such termination is a result of the death of
            Executive, the initial Deferred Compensation shall be made within 15
            days after the personal representative of Executive's estate
            notifies the Company that Letters of Administration have been filed
            in the probate proceeding. The Company shall have the option at all
            times during the term of this Agreement to maintain key man life
            insurance on Executive's life to cover the cost of any Deferred
            Compensation due to Executive. If such key man life insurance is
            maintained, and the Deferred Compensation is due as a result of
            Executive's death, the Deferred Compensation shall be paid 100% in
            cash upon Executive's death. The Bonus Deferred Compensation shall
            be paid in a single lump sum within 90 days of the end of the year
            in which Executive's employment is terminated.
<PAGE>

5.    Benefits.

      (a)   Executive shall be entitled to a minimum of 4 weeks paid vacation
            per year during the term of this Agreement. In addition, Executive
            shall be entitled to paid time off for the same holidays as other
            employees of the Company as established by the Board.

      (b)   Executive shall be entitled to reimbursement for all maintenance,
            insurance and gasoline expenses incidental to the use of one
            automobile when the Company becomes profitable.

      (c)   Executive shall be entitled to participate (in a manner and capacity
            commensurate with her position and duties), subject to eligibility
            and other terms generally established by the Board, in any employee
            benefit plan (including but not limited to life insurance plans,
            stock option plans, group hospitalization, health, dental care
            (which health insurance shall also cover Executive's dependents),
            profit sharing and pension, bonus and other benefit plans), as may
            be adopted or amended by the Company from time to time.

      (d)   The Company shall pay the premium on a "whole life" insurance policy
            on the life of Executive in the initial face amount of five times
            Base Salary during the term hereof. Executive shall have the right
            to designate the beneficiaries of such policies. The Company shall
            pay timely all premiums on such life insurance, and on demand
            provide Executive due proof of such payment. The insurance companies
            issuing such policies shall be authorized to give Executive, upon
            his request, any information regarding the status of any such
            policy. Any dividend declared upon such policy shall be applied to
            the premium.

      (e)   The Company shall pay all initial membership fees and monthly dues
            on behalf of Executive for Executive's membership in one country
            club, and one airline club; provided that the aggregate initial
            membership fees and the annual membership fees of such clubs in the
            aggregate do not exceed $2,000 and $1,000, respectively. Executive
            shall pay all expenses for such club use that is not otherwise
            reimbursable as a Company business expense.

      (f)   The Company will reimburse Executive for the cost of reasonable tax
            and financial preparation and planning, including services that may
            be requested by Executive from time to time pertaining to this
            Agreement.

      (g)   Executive shall receive any such additional benefits that any other
            executive officer may receive during the term of this Agreement at
            the reasonable discretion of the Board.

6.    Expenses.

The Company shall reimburse the Executive against appropriate vouchers or other
receipts for business expenses reasonably incurred by Executive in the
performance of Executive's duties pursuant to the terms hereof. Executive is
authorized to incur reasonable traveling and other expenses in connection with
the Company's business and in performance of his duties under this Agreement.
When engaging in business related air travel, the executive may fly first class
on

<PAGE>

domestic flights and business class on international flights. In addition, upon
the submission of appropriate vouchers or other receipts the Company shall
reimburse Executive for tolls and reasonable business car phone charges.
Executive shall submit vouchers or other receipts once per calendar month and
shall be reimbursed by Company within 30 days of submission.

7.    Disability.

      (a)   In the event of the death of the Executive during the Term, the
            Executive's employment hereunder shall automatically terminate. In
            the event that Executive shall become mentally or physically
            Disabled (as hereinafter defined) so as to be unable to fully
            perform his duties herein, Executive shall continue to receive her
            monthly salary for each of the first nine months or any part thereof
            of any continuous Disability, less any amounts received by him under
            any disability insurance paid for by the Company. If upon the
            expiration of nine months of continuous Disability, Executive
            remains incapacitated (hereinafter, "Permanent Disability"), the
            Company shall have the right to immediately terminate this
            Agreement. Such "Permanent Disability" shall be established by a
            written certification submitted by a medical doctor agreed to by the
            Executive and the Company. In the absence of agreement, the Company
            and the Executive shall each nominate a qualified medical doctor and
            these two doctors shall select a third qualified medical doctor,
            which third doctor shall make the determination as to total
            disability. After the termination of these time periods, Executive
            will receive disability insurance proceeds for the term of such
            disability.

      (b)   The Company shall reimburse Executive for the premiums of all
            insurance policies covering the long and short-term disability of
            Executive not to exceed $10,000 per annum (as adjusted for increases
            in the Consumer Price Index) during the term hereof.

      (c)   Disability for the purposes of this Agreement shall mean that the
            Executive is judged disabled pursuant to the Company's long-term
            disability policy.

8.    Non-Competition, Non-Solicitation and Non-Disparagement.

During the Term and for a period of two years thereafter, except if the Company
breaches its obligations to pay the Deferred Compensation pursuant to Section
4(c) hereof:

      (a)   Executive shall not, directly or indirectly, enter into or
            participate (whether as owner, partner, shareholder, officer,
            director, salesman, consultant, employee, principal or in any other
            relationship or capacity) in any business operating or providing
            services in the United States within any State in which the Company
            or its affiliates are operating or providing services as of the date
            of termination which is, or owns, manages or performs Internet
            billing services, including without limitation as principal or on
            behalf of others and the development or operation of any network to
            accomplish same (a "Competing Entity").

      (b)   Company and Executive understand and agree that the scope and
            duration of the covenants contained in this Section 8 are reasonable
            both in time and geographical area and are fairly necessary to
            protect the Company's legitimate business interests. Such covenants
            shall survive the termination of Executive's employment except as
            otherwise provided herein. The parties further agree that

<PAGE>

            such covenants shall be regarded as divisible and shall be operative
            as to time and geographical area to the extent that they may be made
            so and, if any part of such covenants is declared invalid or
            unenforceable, the validity and enforceability of the remainder
            shall not be affected. Executive hereby warrants to Company that
            Executive's compliance with each of the restrictive covenants set
            forth in this Agreement will not, upon the termination, of
            Executive's employment with the Company for any reason whatsoever,
            cause Executive to be unable to earn a living that is suitable and
            acceptable to Executive.

      (c)   Executive understands and agrees that, due to the highly competitive
            nature of the Company's industry, the breach of any covenants set
            out in this Section 8 will cause irreparable injury to the Company
            for which it will have no adequate remedy at law. Therefore, the
            Company shall be entitled, in addition to such other remedies as it
            may have hereunder, to a temporary restraining order and to
            preliminary and permanent injunctive relief in state or federal
            court for any breach or threatened breach of Section 8. Nothing
            herein, however, shall be construed as prohibiting the Company from
            pursuing any other remedies available to it for such breach or
            threatened breach, including the recovery of damages from Executive,

      (d)   Executive shall not, without the prior written consent of the
            Company, directly or indirectly, (i) solicit, request, cause or
            induce any person who is at the time, or 12 months prior thereto had
            been, an employee of or a consultant of the Company to leave the
            employ of or terminate such person's relationship with the Company
            or (ii) employ, hire, engage or be associated with, or endeavor to
            entice away from the Company any such person, or any customer of the
            Company or its affiliates or (iii) attempt to limit or interfere
            with any business agreement or relationship existing between the
            Company and/or its affiliates with a third party.

      (e)   Executive shall not disparage the business reputation of the Company
            (or its management team) or take any actions that are harmful to the
            Company's goodwill with its customers, content providers, bandwidth
            or other network infrastructure providers, vendors, employees, the
            media or the public. Executive recognizes that such actions would
            cause irreparable harm for which there is no adequate remedy at law
            and that the Company may seek in state or federal court, and is
            entitled to a temporary restraining order and to preliminary and
            permanent injunctive relief in state or federal court to stop any
            such conduct or statements for any breach or threatened breach of
            this Section 8(e) during the term of this Agreement and for a period
            of two years thereafter.

      (f)   Company spends considerable amounts of time, money and effort in
            developing and maintaining good will in its industry. Executive
            agrees the covenants contained within this Section 8: (i) are
            reasonable and necessary in all respects to protect the goodwill,
            trade secrets, confidential information, and business interests of
            Company; (ii) are not oppressive to Executive; and (iii) do not
            impose any greater restraint on Executive than is reasonably
            necessary to protect the goodwill, trade secrets, confidential
            information and legitimate business interests of Company.

      (g)   Executive acknowledges and agrees that promises made by the Company
            in this Agreement such as (i) the establishment of a term of
            employment (rather than

<PAGE>

            employment at will) and (ii) the commitment to provide severance
            compensation in the event of the termination of Executive's
            employment for reasons other than Cause (subject to certain
            requirements on the part of Executive), constitute one form of
            consideration for Executive's agreement to and compliance with the
            restrictive covenants in this Agreement. Executive acknowledges and
            agrees that Company's agreement to provide Executive with access to
            Company's confidential and proprietary information is a separate
            form of consideration supporting the restrictive covenants in this
            Agreement. Executive acknowledges and agrees that the Company's
            agreement to permit the use of the Company's goodwill with the
            Company's customers, investors and content providers is a separate
            form of consideration supporting the restrictive covenants in this
            Agreement. Executive acknowledges and agrees that the Company's
            commitment to providing Executive with unique skill development and
            training is a separate form of consideration supporting the
            restrictive covenants in this Agreement.

9.    Non-Disclosure of Confidential Information.

      (a)   The Executive acknowledges that as a result of Executive's
            employment by the Company, the Executive, both during and after the
            Term, will obtain secret and confidential information concerning the
            business of the Company and its affiliates, including, without
            limitation, financial information, trade secrets, information
            concerning the operations, sales, personnel, suppliers, customers,
            costs, profits and pricing policies, "know how" and certain business
            methodologies (the "Confidential Information").

      (b)   During the Term and thereafter, the Executive shall exercise all due
            and diligent precautions to protect the integrity of the customer
            lists, mailing lists and sources thereof, statistical data and
            compilations, agreements, contracts, manuals, memoranda, notes,
            records, reports or other documents and any and all other materials
            embodying any Confidential Information (the "Confidential
            Materials") and, upon the Company's request in writing, Executive
            shall immediately return to the Company all such Confidential
            Materials (and copies thereof) then in Executive's possession or
            control.

      (c)   Executive shall not at any time, either during the Term of this
            Agreement or thereafter, divulge to any person or entity any
            Confidential Information or deliver or permit any person or entity
            to obtain any Confidential Materials except (i) when required in the
            course of performing Executive's duties hereunder, (ii) with the
            Company's express written consent, (iii) where required to be
            disclosed by court order, subpoena or other government process or
            (iv) the Executive shall have no responsibility for the divulgence
            of any information which is in the public domain. If the Executive
            shall be required to make disclosure pursuant to the provisions of
            clause (iii) of the preceding sentence, the Executive promptly, but
            in no event more than 48 hours after learning of such subpoena,
            court order or other governmental process, shall notify, by personal
            delivery or by electronic means, confirmed by mail, the Company and,
            at the Company's expense, Executive shall (x) take all reasonably
            necessary steps required by the Company to defend against the
            enforcement of such subpoena, court order or other government
            process and (y) permit the Company to intervene and participate with
            counsel of its choice in any proceeding relating to the enforcement
            thereof.
<PAGE>

      (d)   Upon termination of Executive's employment with the Company, the
            Executive shall promptly deliver to the Company all Confidential
            Materials relating to the Company and its affiliates, which
            Executive may then possess or have under Executive's control;
            provided, however, that Executive shall be entitled to retain copies
            of such documents reasonably necessary to document Executive's
            financial relationship (both past and future) with the Company.

      (e)   The Executive acknowledges that (i) any breach of the provisions of
            these Sections 8 and 9 may cause substantial and irreparable harm to
            the Company for which the Company would have no adequate remedy at
            law and (ii) the provisions of this Agreement are reasonable and
            necessary for the protection of the business of the Company and its
            affiliates.

10.   Remedies.

      (a)   If Executive commits a breach, or threatens to commit a breach, of
            any of the provisions of Sections 8 or 9, the Company shall have the
            right and remedy:

            (i)   to have the provisions of this Agreement specifically enforced
                  by any court having equity jurisdiction or through arbitration
                  as provided herein; and

            (ii)  to require Executive to account for and to pay over the
                  Company all damages suffered by the Company (including
                  consequential and incidental damages) as the result of any
                  transactions constituting a breach of any of the provisions of
                  Sections 8 and 9, and Executive hereby agrees to account for
                  and pay over such damages to the Company;

      (b)   The Executive acknowledges that the services being rendered
            hereunder to the Company are of a special, unique and extraordinary
            character and that any such breach or threatened breach may cause
            substantial and irreparable injury to the Company and that money
            damages will not provide an adequate remedy to the Company. In any
            equitable proceeding to enforce the provisions hereof, the Company
            shall not have to prove irreparable harm. (However, in a suit for
            damages Company shall be required to prove the amount of damages
            actually sustained.)

      (c)   Each of the rights and remedies enumerated in Section 10 (a) shall
            be independent of the other, and shall be severally enforceable, and
            such rights and remedies shall be in addition to, and not in lieu of
            any other rights and remedies available to the Company under law or
            equity.

      (d)   If any provision of Section 8 or 9 is held to be unenforceable
            because of the scope, duration or area of its applicability, the
            court making such determination shall have the power to modify such
            scope, duration, or area, or all of them, and such provision or
            provisions shall then be enforceable in such modified form.

      (e)   The Company and Executive agree that any dispute or controversy
            arising between any of the parties to this Agreement, or any person
            or entity in privity therewith, out of the transactions effected and
            relationships created in connection

<PAGE>

            herewith, including any dispute or controversy involving the
            formation, terms or construction of this Agreement, regardless of
            kind or character, will be resolved through binding arbitration held
            in Bexar County, Texas. The only disputes not subject to mandatory,
            binding arbitration are requests for injunctive relief. With respect
            to the arbitration of any dispute or controversy, each party
            understands that:

            (i)   arbitration is final and binding on the parties;

            (ii)  each party is waiving its right to seek certain remedies in
                  court, including to right to a jury trial;

            (iii) discovery in arbitration is different and more limited than
                  discovery in litigation; and

            (iv)  an arbitrator's award need not include factual findings or
                  legal reasoning, and any party's right to appeal or to seek
                  modification of a ruling by the arbitrator is strictly
                  limited.

Each party to this Agreement will submit any dispute or controversy to
arbitration before the American Arbitration Association ("AAA") within five days
after receiving a written request to do so from the other party. If any party
fails to submit a dispute or controversy to arbitration as requested, then the
requesting party may commence the arbitration proceeding. The Federal
Arbitration Act will govern the proceeding and all issues raised by this
Agreement to be arbitrated. Each party to this Agreement will be bound by the
determination of any arbitrator or arbitration panel empanelled by the AAA to
adjudicate the dispute. Judgment on any arbitration award may be entered in any
court of competent jurisdiction.

Any party to this Agreement may bring an action including a summary or expedited
proceeding, to counsel arbitration of any such dispute or controversy in a court
of competent jurisdiction and, further, may seek provisional or ancillary
remedies, including temporary or injunctive relief in connection with such
dispute or controversy in a court of competent jurisdiction, provided that the
dispute or controversy is ultimately resolved through binding arbitration
conducted in accordance with the terms and conditions of Section 10(e). If any
party institutes legal proceedings in an effort to resist arbitration and is
unsuccessful in doing so, the prevailing party is entitled to recover, from the
losing party, its legal fees and out-of-pocket expenses incurred in connection
with the defense of such legal proceedings.

11.   Indemnification.

      (a)   To the full extent allowed by law, the Company shall hold harmless
            and indemnify the Executive, his executors, administrators or
            assigns, against any and all judgments, penalties (including excise
            and similar taxes), fines, settlements and reasonable expenses
            (including attorneys' fees) actually incurred by the Executive (net
            of any related insurance proceeds or other amounts received by the
            Executive or paid by or on behalf of the Company on the Executive's
            behalf in compensation of such judgments, penalties, fines,
            settlements or expenses) in connection with any threatened, actual
            or completed action, suit or proceeding, whether civil, criminal,
            arbitral, administrative or investigative, or any appeal in such
            action, suit or proceeding, to which the Executive was, is or is
            threatened to be made a named defendant or respondent (a

<PAGE>

            "Proceeding"), because such person is or was a director or officer
            of the Company, or is or was serving at the request of the Company
            as a director, officer, partner, venturer, proprietor, trustee,
            employee, agent or similar functionary (an "Affiliate Executive") of
            another corporation, partnership, joint venture, sole
            proprietorship, trust, employee benefit plan or other enterprise
            (each, a "Company Affiliate"). Upon authorization of indemnification
            of the Executive by the Board of Directors in accordance with the
            applicable provisions of the Nevada General Corporation Law (the
            "NGCL"), the Executive shall be presumed to be entitled to such
            indemnification under this Agreement upon submission of a Claim (as
            hereinafter defined). Thereafter, the Company shall have the burden
            of proof to overcome the presumption that the Executive is so
            entitled. Such presumption shall only be overcome by a judgment or
            other final adjudication, after all appeals and all time for appeals
            have expired ("Final Determination"), adverse to the Executive
            establishing that such indemnification is not permitted hereunder or
            by law. An actual determination by the Company (including its Board
            of Directors, legal counsel, or its stockholders) that the Executive
            has not met the applicable standard of conduct for indemnification
            shall not be a defense to the action or create a presumption that
            the Executive has not met the applicable standard of conduct. The
            purchase, establishment or maintenance of any Indemnification
            Arrangement shall not in any way diminish, restrict, limit or affect
            the rights and obligations of the Company or of the Executive under
            this Agreement except as expressly provided herein, and the
            execution and delivery of this Agreement by the Company and the
            Executive shall not in any way diminish, restrict, limit or affect
            the Executive's right to indemnification from the Company or any
            other party or parties under any other indemnification arrangement,
            the Certificate of Incorporation or Bylaws of the Company, or the
            NGCL.

      (b)   Subject only to the provisions of this Section 11(b), as long as the
            Executive shall continue to serve as a director and/or officer of
            the Company (or shall continue at the request of the Company to
            serve as an Affiliate Executive) and, thereafter, as long as the
            Executive shall be subject to any possible Proceeding by reason of
            the fact that the Executive was or is a director and/or officer of
            the Company (or served in any of said other capacities), the Company
            shall, unless no such policies are available in any market, purchase
            and maintain in effect for the benefit of the Executive one or more
            valid, binding and enforceable policies (the "Insurance Policies")
            of directors' and officers' liability insurance ("D&O Insurance")
            providing adequate liability coverage for the Executive's acts as a
            director and/or officer of the Company or as an Affiliate Executive.
            The Company shall promptly notify the Executive of any lapse,
            amendment or failure to renew said policy or policies or any
            provision thereof relating to the extent or nature of coverage
            provided thereunder. In the event the Company does not purchase and
            maintain in effect said policy or policies of D&O Insurance pursuant
            to the provisions of this Section 11(b), the Company shall, to the
            full extent permitted by law, in addition to and not in limitation
            of the other rights granted the Executive under this Agreement, hold
            harmless and indemnify the Executive to the full extent of coverage
            which would otherwise have been provided for the benefit of the
            Executive pursuant to the Insurance Policies.

      (c)   The Executive shall have the right to receive from the Company on
            demand, or at his option to have the Company pay promptly on her
            behalf, in advance of a Final

<PAGE>

            Determination of a Proceeding all expenses payable by the Company
            pursuant to the terms of this Agreement as corresponding amounts are
            expended or incurred by the Executive in connection with such
            Proceeding or otherwise expended or incurred by the Executive (such
            amounts so expended or incurred being referred to as "Advanced
            Amounts"). In making any claim for payment by the Company of any
            expenses, including any Advanced Amount, pursuant to this Agreement,
            the Executive shall submit to the Company a written request for
            payment (a "Claim"), which includes a schedule setting forth in
            reasonable detail the dollar amount expended (or incurred or
            expected to be expended or incurred). Each item on such schedule
            shall be supported by the bill, agreement or other documentation
            relating thereto, a copy of which shall be appended to the schedule
            as an exhibit.

            Where the Executive is requesting Advanced Amounts, the Executive
            must also provide (i) written affirmation of such Executive's good
            faith belief that he has met the standard of conduct required by law
            for indemnification, and (ii) a written undertaking to repay such
            Advanced Amounts if a Final Determination is made that the Executive
            is not entitled to indemnification hereunder.

      (d)   The Company shall not be liable under this Agreement to make any
            payment in connection with any claim made against the Executive for
            an accounting of profits made from the purchase or sale by the
            Executive of securities of the Company within the meaning of Section
            16(b) of the Exchange Act or similar provisions of any state
            statutory law or common law.

      (e)   All agreements and obligations of the Company contained herein shall
            continue during the period the Executive is a director and/or
            officer of the Company (or is serving at the request of the Company
            as an Affiliate Executive) and shall continue thereafter so long as
            the Executive shall be subject to any possible Proceeding by reason
            of the fact that the Executive was a director or officer of the
            Company or was serving as such an Affiliate Executive.

      (f)   Promptly after receipt by the Executive of notice of the
            commencement of any Proceeding, the Executive shall, if a claim in
            respect thereof is to be made against the Company under this
            Agreement, notify the Company of the commencement thereof, but
            failure to so notify the Company will not relieve the Company from
            any liability which it may have to the Executive. With respect to
            any such Proceeding:

            (i)   The Company shall be entitled to participate therein at its
                  own expense;

            (ii)  Except with prior written consent of the Executive, the
                  Company shall not be entitled to assume the defense of any
                  Proceeding; and

            (iii) The Company shall not settle any Proceeding in any manner
                  which would impose any penalty or limitation on the Executive
                  without the Executive's prior written consent. The Executive
                  shall not settle any Proceeding with respect to which the
                  Executive has received indemnified amounts or Advanced Amounts
                  without the Company's prior written consent, nor will the
                  Executive unreasonably withhold consent to any proposed
                  settlement.
<PAGE>

12.   Notice.

Any notice required hereunder shall (a) be delivered by hand or (b) sent by
registered or certified mail addressed to the other party hereto at its address
set forth above for Company and on Item 1 of the Schedule for Executive or at
such other address as notice thereof shall have been given in accordance with
the provisions of this Section 12. Any such notice shall become effective (i) if
mailed, on the date indicated on the receipt or if not accepted, the date
indicated that delivery was attempted, and (ii) in the case of delivery by hand,
upon delivery or attempted delivery as shown on the records of the deliveries.

13.   Entire Agreement; Amendments.

This Agreement supersedes any prior agreements or understandings, oral or
written, between the parties hereto and represents their entire understanding
and agreement with respect to the subject matter hereof. This Agreement can be
amended, supplemented or changed, and any provision hereof can be waived, only
by written instrument making specific reference to this Agreement which is
executed by both parties to this Agreement. Any waiver of any breach of this
Agreement shall not be construed to be a continuing waiver or consent to any
subsequent breach by any party hereto.

14.   Severability.

In the event of the invalidity or unenforceability of any one or more provisions
of this Agreement, such illegality or unenforceability shall not affect the
validity or enforceability of the other provisions hereof and such other
provisions shall be deemed to remain in full force and effect.

15.   Assignment; Binding Effect.

This Agreement is not assignable by Executive or the Company without the prior
written consent of the other party. This Agreement shall be binding upon and
shall inure to the benefit of the Executive and the Company and their successors
and assigns. It is agreed that in the event of the termination under this
Agreement for any reason, except as expressly provided in this Agreement, all
salary and benefits shall cease as of the date of termination provided that all
accrued salary, bonus and expenses shall be paid to Executive or Executive's
successors, assigns, estate or legal representative as the case may be.

16.   Section Headings.

The Section headings contained in this Agreement are for reference purposes only
and shall not affect in any way the meaning or interpretation of this Agreement.

17.   Governing Law; Venue.

This Agreement shall be construed and governed in accordance with the laws of
the State of Texas. The parties hereto agree that any actions or proceedings
instituted to enforce rights hereunder shall be initiated in Bexar County,
Texas.

18.   Execution in Counterparts.
<PAGE>

This Agreement may be executed in any number of counterparts, each of which
shall be deemed to be an original, but all of which together shall constitute
one and the same instruments.

19.   Section 280G Protection.

The Company shall make a cash payment to the Executive at the time set forth
below equal to the amount of excise taxes (i.e., the "excise tax gross
payments") which Executive would be required to pay pursuant to Section 4999 of
the Internal Revenue Code of 1986, as amended ("Code"), as a result of any
payments (or any other transfer or deemed transfer of property including any
acceleration of stock options or similar instruments) made by or on behalf of
the Company or any successor thereto resulting in an "excess parachute payment"
within the meaning of Section 280G(b) of the Code. In addition to the foregoing,
the cash payment due to the Executive under this Section 19 shall be increased
by the aggregate of the amount of federal, state and local income and excise
taxes for which the Executive will be liable on account of the cash payments to
be made under this Section 19, such that the Executive will receive the excise
tax gross-up payment net of all income and excise taxes. The computation of this
payment shall be determined, at the expense of the Company, by an independent
accounting, actuarial or consulting firm selected by the Company. Payment of the
cash amount set forth above shall be made at such time as the Company shall
determine, in its sole discretion, but in no event later than the date five
business days before the due date, without regard to any extension, for filing
the Executive's federal income tax return for the calendar year which includes
the date as of which the aforementioned "excess parachute payments" are
determined. In the event that the Executive is ultimately assessed with excise
taxes under Section 4999 of the Code as a result of payments made by the Company
or any successor thereto which exceed the amount of excise taxes used in
computing the Executive's payment under this Section 19, the Company or its
successor shall indemnify the Executive for such additional excise taxes plus
any additional excise taxes, income taxes, interest and penalties resulting from
the additional excise taxes and the indemnity hereunder. This provision will
only apply after the Company achieves profitability.

<PAGE>

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

"Company"

billserv.com, Inc.

By:
-------------------------------------
Name:
Title: Chief Executive Officer

"Executive"

-------------------------------------
Name:

<PAGE>

                                   SCHEDULE 1
                               EMPLOYMENT CONTRACT

1.    Executive:        Tony Diamond

2.    Position:         Senior Vice President - Sales and Marketing

3.    Duties:           Management, operations and administration as appropriate
                        for the Senior Vice President - Sales and Marketing of
                        the Company.

                                SCHEDULE 4(a)(i)

                        $145,000 per annum

                                  SCHEDULE 4(b)

      BONUS: Not to exceed 40% of the then-current annual salary, as authorized
      by the Board of Directors.

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