Document:

Exhibit 10.68

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                              EMPLOYMENT AGREEMENT

     This Agreement is entered into the 14th day of August,  2000, between Barry
Colvin (the "Employee") and Tremont Advisers, Inc. (the "Company").

     WHEREAS,  the Company  wishes to employ the  Employee in a new capacity and
the  Employee  wishes to be employed by the  Company in that  capacity,  and the
parties wish to embody in a written  Agreement  the terms and  conditions  under
which the Employee shall be employed.

     NOW, THEREFORE,  in consideration of the mutual covenants contained in this
Agreement, the parties agree as follows:

     1.  Employment  and  Capacity.  Effective  on the date written  above,  the
Company shall employ the Employee as Chief Operating  Officer,  reporting to the
President.  At the outset,  the Chief Operating  Officer will have the following
functions report to him: Manager Research, Marketing, Data Collection Worldwide,
Tremont Products,  Customer Service, Bermuda Operations,  Information Technology
and  Project  Management.  The  following  functions  will  not  report  to him:
Financial Operations,  Human Resources,  Insurance Operations, and sales of TASS
Plus,  Consulting,  Syndication,  Minority  Operations,  Canadian Operations and
Index Activities.

     The Employee agrees to devote all of his professional  time to his assigned
duties and  obligations  to the business of the Company and will comply with the
directions  and  orders of the  President  of the  Company  with  respect to the
performance of his duties and  obligations.  During the term of this  Agreement,
the Employee shall not be engaged in any other business  activity,  whether such
activity is pursued for gain, profit or other financial advantage.

     2. Compensation. The Employee:

     Shall  be paid a base  salary  at the rate of  $275,000  (two  hundred  and
seventy-five thousand dollars) on an annualized basis.

     Shall be paid an annual bonus of at least  $200,000  (two hundred  thousand
dollars) provided that the Employee must be on the active payroll of the Company
on that date and be in good  standing  in order to be  eligible  to receive  his
bonus.  The bonus will be paid out at the time that the Company usually pays out
annual performance bonuses.

     Will receive 100,000 (one hundred thousand) options subject to the terms of
the Company's Stock Option Plan when typically granted to other employees.  This
option grant usually is made in the fourth quarter of the year.

     Will be eligible, during the employment period, to participate in a similar
manner as other employees in such employee  benefit plans and programs as may be
established,

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maintained and amended by the Company for its employees.

     3. Purchase Of Company Stock.  Before December 31, 2000, the Employee shall
purchase  $25,000  (twenty-five  thousand  dollars) of Company stock in the open
market.

     4. Termination of Employment.  Unless otherwise  terminated as provided for
in this paragraph, this Agreement shall terminate on January 1, 2002.

     This  agreement may be terminated  any time prior to January 1, 2002 (i) by
the Employee voluntarily; (ii) by the Company with Cause; (iii) due to the death
or disability of the Employee (as defined by the Company's long-term  disability
plan);  or (iv) by the Company  without Cause.  In instances (i), (ii) or (iii),
the Company  will have no further  obligation  or  liability  to pay any salary,
bonus,  compensation  or other  benefits  beyond  the period  that the  Employee
actually worked.

     Termination  with Cause  shall mean those  instances  in which the  Company
reasonably and in good faith  determines that the termination of the Employee is
appropriate  by reason  of (i)  breach of this  Agreement,  (ii) the  Employee's
insubordination,   malfeasance,   dishonesty  or  criminal  conduct;  (iii)  the
Employee's  conviction  of moral  turpitude  or felony;  (iv) the failure of the
employee  to devote  all of his  professional  time to his  assigned  duties and
obligations to the business of the Company; (v) the Employee's refusal,  failure
or  inability  to perform  his duties and  obligations  to the Company or (vi) a
factual  representation  made by the Employee or in furtherance of his hiring by
the Company  shall prove to have been  incorrect  in any  material  respect when
made.

     The Company may terminate this Agreement without Cause at any time prior to
January 1, 2002. In such event, the Employee shall receive a severance allowance
equal to the balance of the  compensation  due to him through December 31, 2001,
less all amounts  required to be withheld or  deducted.  Benefits  and any other
employee  entitlements  shall  immediately  cease as of the date of  termination
without Cause.

     In the event that the Employee  voluntarily  terminates his employment with
the Company  prior to January 1, 2002, he shall pay the Company  $50,000  (fifty
thousand dollars) as liquidated damages but not as a penalty.  Such payment will
attempt to serve as  recompense to the Company for the time,  opportunity  loss,
and cost of securing his  replacement,  absence of continuity and adverse impact
on customers and employees  caused by his departure.  This payment shall be made
in full  within  15 days from the  Employee's  last day of  employment  with the
Company.

     The  employment  relationship  between the Company and the  Employee is "at
will" and remains at will, which affords either party the right to terminate the
relationship  at  any  time  for  any  reason  or for no  reason  not  otherwise
prohibited by law, subject to the provisions of this Agreement.

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     5. Non-Solicitation and Confidentiality. Upon termination of employment for
any reason, the Employee agrees that for a period of one (1) year following such
termination,  the  Employee  will  not,  directly  or  indirectly,  solicit  the
employment  of or offer  employment  to or  induce  or  attempt  to  induce  the
termination  of  any  other  person  employed  by  the  Company  or  any  of its
affiliates, whether on behalf of the Employee or any third person or entity.

     Employee will not disclose during or following the period of his employment
with  the  Company  any  confidential  information,   trade  secrets  or  letter
agreements  regarding  himself,  the  Company,  its  affiliates,   customers  or
employees  acquired by the Employee  during the period of his  employment to any
person,  partnership,  corporation,  firm, association or other entity, provided
that this obligation  shall not apply where  disclosure is compelled by judicial
process.

     Upon  termination  of  this  Agreement,   the  Employee  shall  return  all
documents,  correspondence, work papers, manuals, reports, lists, records, data,
books, computer disks,  printouts, or materials of or pertaining to the Company,
or its subsidiaries or affiliates in his possession or control.

     Employee  agrees  that the  terms  "confidential  information"  and  "trade
secrets" means information (i) regarding the Company's personnel,  customers and
clients  (including  but  not  limited  to  their  identity,  location,  service
requirements  and charges),  business  associates and contacts,  sales and sales
methods,  accounts,  suppliers,  products or service presentations,  pricing and
cost practices,  marketing  strategies,  plans for future  development and other
trade  secrets  relating  to the  business of the  Company  which was  obtained,
learned,  or created by the Employee in carrying out the Company's  business and
(ii) any  information  pertaining  to the Company on any computer or  electronic
data base to which the  Employee  had  access  during  his  employment  with the
Company including  information on PCs,  networks,  disks or other magnetic media
and any copies that were made,  received or downloaded  onto any laptop or other
privately owned computer.

     Employee  agrees to inform any new employer prior to accepting  employment,
of the existence of the provisions of this Paragraph.

     6.  Non-Competition.  Until the expiration of the  employment  period under
Paragraph 4 or if the  Employee is  terminated  with or without  Cause or if the
Employee  voluntarily  terminates his employment with the Company,  the Employee
agrees not to engage,  directly or indirectly (whether as an officer,  director,
agent,  employee,  consultant  or by  ownership  or  otherwise)  in a hedge fund
investment  business in the Company's  market area or solicit or accept business
from any of the Company's  customers or accounts for a  competitive  business in
the  Company's  market  area  for a  period  of 6  (six)  months  following  the
termination of his employ with the Company,  not to extend past January 1, 2002.
The Company's  market area extends a radius of 100 (one hundred) miles from each
of the following cities: New York, St. Louis, Chicago, London and San Francisco.

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     Employee agrees to inform any new employer prior to accepting employment of
the existence of the provisions of this Paragraph.

     Upon written application by the Employee following his termination from the
Company's employ,  the Company may determine that although the Employee seeks to
be engaged in a competitive business,  that engagement will not adversely impact
the  Company.  Under  these  circumstances,  the Company  will not  unreasonably
withhold permission for the Employee to engage in a competitive business.

     7. Enforceability.  The Employee  acknowledges that the covenants contained
in  Paragraphs  4, 5 and 6 are  necessary  to protect  the  Company and that any
violation of such covenants would cause irreparable  injury to the Company.  The
Employee  agrees that in the event of a breach or a threatened  breach of any of
the  provisions  of  Paragraphs  4, 5 or 6, the  Company  shall be  entitled  to
injunctive  relief as a matter of right in any court of  competent  jurisdiction
without posting bond and to all other rights and remedies which may be available
under applicable law against the Employee, the Employee's employers,  employees,
partners, agents or other associates. If the Company brings an action to enforce
any of the covenants  set forth in  Paragraphs 4, 5 or 6, the employee  shall be
obligated  to  reimburse  the  Company  for the costs of  bringing  the  action,
including  reasonable  attorney's fees. The Company's right to injunctive relief
is in addition to whatever  other  remedies the Company may have,  including the
recovery of damages from the Employee.

     If, in a judicial  proceeding,  a court shall refuse to enforce one or more
of the  covenants  contained in Paragraphs 4, 5 or 6 because the duration is too
long or the scope is too broad,  it is expressly  agreed that for the purpose of
such  proceeding,  the duration  and scope will be deemed  reduced to the extent
necessary to permit the enforcement of these covenants.

     The existence of any claims or causes of action of the Employee against the
Company, whether predicated on this Agreement or otherwise, shall not constitute
a defense to the  enforcement by the Company of the covenants in Paragraphs 4, 5
or 6.

     8. Representation.  The Employee represents to the Company that neither the
acceptance of employment,  nor the execution,  delivery and  performance of this
Agreement by the Employee  results or will result in a breach or a default under
any other agreement.

     9.  Waiver of  Breach.  The  waiver  by the  Company  of any  breach of any
provision of this Agreement by the Employee shall not operate or be construed as
a waiver  of any other  past,  present  or  future  rights  granted  under  this
Agreement to the Company.  No waiver shall be valid unless in writing and signed
by an authorized officer of the Company.

     10. Validity.  If any portion of this Agreement is determined to be invalid
or  unenforceable,   such   determination   will  not  affect  the  validity  or
enforceability  of the remaining  portions or Paragraphs of this  Agreement as a
whole,  and  this  Agreement  will  then be  interpreted

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as if the invalid or unenforceable portions had not been inserted.

     11. Understanding. This Agreement contains the entire understandings of the
parties with respect to the subject matter of the Agreement  covering the period
between  August  14,  2000 and  December  31,  2001,  and  supersedes  all prior
agreements,  whether oral or written.  This  Agreement may not be changed orally
but only by a written agreement, signed by the party against whom enforcement of
any waiver, change, modification, extension or discharge is sought.

     12.  Governing  Law.  This  Agreement  shall be governed by the laws of the
State of New York  (regardless  of the laws that might  otherwise  govern  under
applicable  conflict of laws  principles)  as to all matters,  including but not
limited to matters of validity, construction, effect, performance and remedies.

     13.  Arbitration.  Except for the seeking of injunctive relief described in
Paragraphs 7, any controversy or dispute  relating to the Employee's  employment
by the Company will be settled by binding arbitration conducted in New York City
in  accordance  with the  rules of the  American  Arbitration  Association,  and
judgment upon the award rendered may be entered and enforced in any court having
jurisdiction over the matter.

     14.  Binding  Effect.  The  Employee  acknowledges  that the services to be
rendered  by him are unique and  personal.  Accordingly,  the  Employee  may not
assign any of his rights or delegate any of his duties or obligations under this
Agreement.  This Agreement shall be binding upon and inure to the benefit of the
parties to this Agreement and their respective heirs, personal  representatives,
successors and assigns as applicable.

     15.  Notices.  Any notice  required  or  permitted  to be given  under this
Agreement  shall be sufficient  if in writing and sent by certified  mail to the
Employee's last known residence or to the Company's principal office.

     It shall be noted that the terms  "he,"  "him" or "his" shall be applied to
the parties  without  regard to gender and any headings in this  Agreement  have
been inserted for convenience only and have no legal effect.

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

ON BEHALF OF THE COMPANY                      EMPLOYEE

-----------------------------------------     ----------------------------------
BY: Robert Schulman                           BY: Barry Colvin
    President, Tremont Advisers, Inc.

                                      -9-EX-4.1

		
		 	Exhibit 4.1	 

	

AMERICAN
INTERNATIONAL PETROLEUM CORPORATION
2000 STOCK OPTION PLAN

	1. 		Purposes.

	

     The
AMERICAN INTERNATIONAL PETROLEUM CORPORATION 2000 STOCK OPTION PLAN (the
“Plan”) is intended to provide the employees, directors, independent
contractors and consultants of American International Petroleum Corporation (the
“Company”) and/or any subsidiary or parent thereof with an added
incentive to commence and/or continue their services to the Company and to
induce them to exert their maximum efforts toward the Company’s success. By
thus encouraging employees, directors, independent contractors and consultants
and promoting their continued association with the Company, the Plan may be
expected to benefit the Company and its stockholders. The Plan allows the
Company to grant Incentive Stock Options (“ISOs”) (as defined in
Section 422(b) of the Internal Revenue Code of 1986, as amended (the
“Code”), Non-Qualified Stock Options (“NQSOs”) not intended
to qualify under Section 422(b) of the Code and Stock Appreciation Rights
(“SARs”) (collectively the “Options”). The vesting of one or
more Options granted hereunder may be based on the attainment of specified
performance goals of the participant or the performance of the Company, one or
more subsidiaries, parent and/or division of one or more of the above. For
purposes of the above, vesting based on an increase in value of the
Company’s common stock shall be deemed based on the Company’s
performance. 

	2. 		Shares
Subject to the Plan.

	

     The
total number of shares of Common Stock of the Company, $0.08 par value per
share, that may be subject to Options granted under the Plan shall be five
million (5,000,000) in the aggregate, subject to adjustment as provided in
Paragraph 8 of the Plan; however, the grant of an ISO to an employee together
with a tandem SAR or any NQSO to an employee together with a tandem SAR shall
only require one share of Common Stock to be made available subject to the Plan
to satisfy such joint Option. The Company shall at all times while the Plan is
in force reserve such number of shares of Common Stock as will be sufficient to
satisfy the requirements of outstanding Options granted under the Plan. In the
event any Option granted under the Plan shall expire or terminate for any reason
without having been exercised in full or shall cease for any reason to be
exercisable in whole or in part, the shares subject to such expired or
terminated Option shall again be available for granting of Options under the
Plan. 

	3. 		Eligibility.

	

     ISO’s
or ISO’s in tandem with SAR’s (provided the SAR meets the requirements
set forth in Temp. Reg. Section 14a.422A-1, A-39 (a) through (e) inclusive) may
be granted from time to time under the Plan to one or more employees of the
Company or of a “subsidiary” or “parent” of the Company, as
the quoted terms are defined within Section 424 of the Code. An officer is an
employee for the above purposes. However, a director of the Company who is not
otherwise an employee is not deemed an employee for such purposes. NQSOs and
NQSO’s in tandem with SARs may be granted from time to time under the Plan
to one or more employees of the Company, officers, members of the Board of
Directors, independent contractors, consultants and other individuals who are
not employees of, but are involved in the continuing development and success of
the Company and/or of a subsidiary of the Company, including persons who have
previously been granted Options under the Plan. 

	4. 		Administration
of the Plan.

	

     (a)
The Plan shall be administered by the Board of Directors of the Company as such
Board of Directors may be composed from time to time and/or by a Stock Option
Committee or Compensation Committee (the “Committee”) which shall be
comprised solely of at least two Outside Directors (as such term is defined in
regulations promulgated from time to time with respect to Section
162(m)(4)(C)(i) of the Code) appointed by such Board of Directors of the
Company. As and to the extent authorized by the Board of Directors of the
Company, the Committee may exercise the power and authority vested in the Board
of Directors under the Plan. Within the limits of the express provisions of the
Plan, the Board of Directors or Committee shall have the authority, in its
discretion, to determine the individuals to whom, and the time or times at
which, Options shall be granted, the character of such Options (whether ISOs,
NQSOs, and/or SARs in tandem with NQSOs, and/or SARs in tandem with ISOs) and
the number of shares of Common Stock to be subject to each Option, the manner
and form in which the optionee can tender payment upon the exercise of an
Option, and to interpret the Plan, to prescribe, amend and rescind rules and
regulations relating to the Plan, to determine the terms and provisions of
Option agreements that may be entered into in connection with Options (which
need not be identical), subject to the limitation that agreements granting ISOs
must be consistent with the requirements for the ISOs being qualified as
“incentive stock options” as provided in Section 422 of the Code, and
to make all other determinations and take all other actions necessary or
advisable for the administration of the Plan. In making such determinations, the
Board of Directors and/or the Committee may take into account the nature of the
services rendered by such individuals, their present and potential contributions
to the Company’s success, and such other factors as the Board of Directors
and/or the Committee, in its discretion, shall deem relevant. The Board of
Directors’ and/or the Committee’s determinations on the matters
referred to in this Paragraph shall be conclusive. 

     (b)
Notwithstanding anything contained herein to the contrary, at anytime during the
period the Company’s Common Stock is registered pursuant to Section 12(g)
of the Securities Exchange Act of 1934 (the “1934 Act), the Committee, if
one has been appointed to administer all or part of the Plan, shall have the
exclusive right to grant Options to Covered Employees as defined under Section
162(m)(3) of the Code (generally persons subject to Section 16 of the 1934 Act)
and set forth the terms and conditions thereof. With respect to persons subject
to Section 16 of the 1934 Act, transactions under the Plan are intended, to the
extent possible, comply with all applicable conditions of Rule 16b-3, as amended
from time to time, (and its successor provisions, if any) under the 1934 Act and
Section 162(m)(4)(C) of the Code of 1986, as amended. To the extent any
provision of the Plan or action by the Board of Directors or Committee fails to
so comply, it shall be deemed null and void, to the extent permitted by law and
deemed advisable by the Board of Directors and/or such Committee. 

	5. 		Terms
of Options.

	

     Within
the limits of the express provisions of the Plan, the Board of Directors or the
Committee may grant either ISOs or NQSOs or SARs in tandem with NQSOs or SARs in
tandem with ISOs. An ISO or an NQSO enables the optionee to purchase from the
Company, at any time during a specified exercise period, a specified number of
shares of Common Stock at a specified price (the “Option Price”). An
optionee, if granted a SAR in tandem with a NQSO or ISO, may receive from the
Company, in lieu of exercising an option to purchase shares pursuant to a NQSO
or ISO, at one of the certain specified times during the exercise period of the
NQSO or ISO as set by the Board of Directors or the Committee, the excess of the
fair market value upon such exercise (as determined in accordance with
subparagraph (b) of this Paragraph (5) of one share of Common Stock over the
Option Price per share specified upon grant of the NQSO or ISO/SAR multiplied by
the number of shares of Common Stock covered by the SAR so exercised. The
character and terms of each Option granted under the Plan shall be determined by
the Board of Directors and/or the Committee consistent with the provisions of
the Plan, including the following: 

     (a)
An Option granted under the Plan must be granted within 10 years from the date
the Plan is adopted, or the date the Plan is approved by the stockholders of the
Company, whichever is earlier. 

     (b)
The Option Price of the shares of Common Stock subject to each ISO and each SAR
issued in tandem with an ISO shall not be less than the fair market value of
such shares of Common Stock at the time such ISO is granted. Such fair market
value shall be determined by the Board of Directors and, if the Common Stock is
listed on a national securities exchange or quoted on The Nasdaq Stock Market,
Inc. (“Nasdaq”), the fair market value shall be the closing price of
the Common Stock on such exchange or Nasdaq, or if closing prices are not
available or the Common Stock is quoted on the National Association of
Securities Dealers, Inc. (“NASD”) OTC Bulletin Board (the “OTC
Bulletin Board”) or otherwise traded in the over-the-counter market, the
fair market value shall be the mean of the closing bid and asked prices of the
Common Stock, as reported by Nasdaq, the NASD, the OTC Bulletin Board or the
National Quotation Bureau, Inc., as the case may be, on the day on which the
Option is granted or, if there is no closing price or bid or asked price on that
day, the closing price or mean of the closing bid and asked prices on the most
recent day preceding the day on which the Option is granted for which such
prices are available. If an ISO or SAR in tandem with an ISO is granted to any
individual who, immediately before the ISO is to be granted, owns (directly or
through attribution) more than 10% of the total combined voting power of all
classes of capital stock of the Company or a subsidiary or parent of the
Company, the Option Price of the shares of Common Stock subject to such ISO
shall not be less than 110% of the fair market value per share of the shares of
Common Stock at the time such ISO is granted. 

     (c)
The Option Price of the shares of Common Stock subject to an NQSO or an SAR in
tandem with a NQSO granted pursuant to the Plan shall be determined by the Board
of Directors or the Committee, in its sole discretion, subject to any minimum
Option Price established from time to time under any state securities law with
respect to grants in such state. 

	

     (d)
In no event shall any Option granted under the Plan have an expiration date
later than 10 years from the date of its grant, and all Options granted under
the Plan shall be subject to earlier termination as expressly provided in
Paragraph 6 hereof. If an ISO or an SAR in tandem with an ISO is granted to any
individual who, immediately before the ISO is granted, owns (directly or through
attribution) more that 10% of the total combined voting power of all classes of
capital stock of the Company or of a subsidiary or parent of the Company, such
ISO shall by its terms expire and shall not be exercisable after the expiration
of five (5) years from the date of its grant. 

     (e)
An SAR may be exercised at any time during the exercise period of the ISO or
NQSO with which it is granted in tandem and prior to the exercise of such ISO or
NQSO. Notwithstanding the foregoing, the Board of Directors and/or the Committee
shall in their discretion determine from time to time the terms and conditions
of SAR’s to be granted, which terms may vary from the afore-described
conditions, and which terms shall be set forth in a written stock option
agreement evidencing the SAR granted in tandem with the ISO or NQSO. The
exercise of an SAR granted in tandem with an ISO or NQSO shall be deemed to
cancel such number of shares subject to the unexercised Option as were subject
to the exercised SAR. The Board of Directors or the Committee has the discretion
to alter the terms of the SARS if necessary to comply with Federal or state
securities law. Amounts to be paid by the Company in connection with an SAR may,
in the Board of Director’s or the Committee’s discretion, be made in
cash, Common Stock or a combination thereof. 

     (f)
An Option granted under the Plan shall become exercisable, in whole at any time
or in part from time to time, but in no event may an Option (i) be exercised as
to less than one hundred (100) shares of Common Stock at any one time, or the
remaining shares of Common Stock covered by the Option if less than one hundred
(100), and (ii) except with respect to performance based Options, become fully
exercisable more than five years from the date of its grant nor shall less than
20% of the Option become exercisable in any of the first five years of the
Option, if not terminated as provided in Section 6 hereof. The Board of
Directors or the Committee, if applicable, shall, in the event it so elects in
its sole discretion, set one or more performance standards with respect to one
or more Options upon which vesting is conditioned (which performance standards
may vary among the Options). Vesting based on fair market value of the Common
Stock shall be deemed based on a performance standard for purposes hereof. 

     (g)
An Option granted under the Plan shall be exercised by the delivery by the
holder thereof to the Company at its principal office (to the attention of the
Secretary) of written notice of the number of full shares of Common Stock with
respect to which the Option is being exercised, accompanied by payment in full,
which payment at the option of the optionee shall be in the form of (i) cash or
certified or bank check payable to the order of the Company, of the Option Price
of such shares of Common Stock, or, (ii) if permitted by the Committee or the
Board of Directors, as determined by the Committee or the Board of Directors in
its sole discretion at the time of the grant of the Option with respect to an
ISO and at or prior to the time of exercise with respect to a NQSO, by the
delivery of shares of Common Stock having a fair market value equal to the
Option Price or the delivery of an interest-bearing promissory note having an
original principal balance equal to the Option Price and an interest rate not
below the rate which would result in imputed interest under the Code (provided,
in order to qualify as an ISO, more than one year shall have passed since the
date of grant and one year from the date of exercise), or (iii) at the option of
the Committee or the Board of Directors, determined by the Committee or the
Board of Directors in its sole discretion at the time of the grant of the Option
with respect to an ISO and at or prior to the time of exercise with respect to a
NQSO, by a combination of cash, promissory note and/or such shares of Common
Stock (subject to the restriction above) held by the employee that have a fair
market value together with such cash and principal amount of any promissory note
that shall equal the Option Price, or (iv) to the extent allowed by applicable
Federal and state securities laws, through any other medium of payment as the
Board of Directors and/or the Committee, in its discretion, shall authorize. In
any event, at the discretion of the Committee or Board of Directors, the Company
may withhold from the shares of Common Stock to be issued upon exercise of the
Option that number of shares having a fair market value equal to the tax
withholding amount due, or otherwise provide for withholding as set forth in
Paragraph 9(c) hereof. In the event an employee is granted an ISO or NQSO in
tandem with an SAR and desires to exercise such SAR, such written notice shall
so state such intention. To the extent allowed by applicable Federal and state
securities laws, the Option Price may also be paid in full by a broker-dealer to
whom the optionee has submitted an exercise notice consisting of a fully
endorsed Option. 

	

     (h)
The holder of an Option shall have none of the rights of a stockholder with
respect to the shares of Common Stock covered by such holder’s Option until
such shares of Common Stock shall be issued to such holder upon the exercise of
the Option. 

     (i)
No Option granted under the Plan shall be transferable otherwise than by will or
the laws of descent and distribution and may be exercised only by the holder
during his lifetime. 

     (j)
The aggregate fair market value, determined as of the time any ISO or SAR in
tandem with an ISO is granted and in the manner provided for by Subparagraph (b)
of this Paragraph 5, of the shares of Common Stock with respect to which ISOs
granted under the Plan are exercisable for the first time during any calendar
year and under incentive stock options qualifying as such in accordance with
Section 422 of the Code granted under any other incentive stock option plan
maintained by the Company or its parent or subsidiary corporations, shall not
exceed $100,000. Any grant of Options in excess of such amount shall be deemed a
grant of a NQSO. 

     (k)
Notwithstanding anything contained herein to the contrary, an SAR granted in
tandem with an ISO shall (i) expire no later than the expiration of the
underlying ISO; (ii) be for no more than 100% of the spread at the time the SAR
is exercised; (iii) only be transferable when the underlying ISO is
transferable; (iv) only be exercised when the underlying ISO is eligible to be
exercised; and (v) only be exercisable when there is a positive spread. 

     (l)
In no event shall an employee be granted Options for more than 1,000,000 shares
of Common Stock during any calendar year period; provided, however, that the
limitation set forth in this Section 5(l) shall be subject to adjustment as
provided in Section 8 herein. 

	6. 		Death
or Termination of Employment/Consulting Relationship.

	

     (a)
Except as provided herein, or otherwise determined by the Board of Directors or
the Committee in its sole discretion, if such employment or consulting
relationship shall terminate for any reason other than death, voluntary
termination by the employee or for cause, then such Options may be exercised at
anytime within three (3) months after such termination, subject to the
provisions of Subparagraph (d) of this Paragraph 6. Notwithstanding anything
contained herein to the contrary, unless otherwise determined by the Board of
Directors or the Committee in its sole discretion, any options granted hereunder
to an optionee and then outstanding shall immediately terminate in the event the
optionee terminates his/her employment with the Company voluntarily or
terminates his/her/its consulting relationship with the Company prior to the
termination of the term thereof, or employment is terminated for cause, and the
other provisions of this Section 6 shall not be applicable thereto. For purposes
of this Section 6, termination for cause shall be deemed the decision of the
Company, in its sole discretion, that optionee has not adequately performed the
services for which he/she/it was hired. An employee’s termination of
employment after obtaining retirement age, as determined by the Company or
pursuant to any agreement between the Company and the optionee., shall not be
deemed a voluntary termination. 

	

     (b)
If the holder of an Option granted under the Plan dies (i) while employed by the
Company or a subsidiary or parent corporation or while providing consulting
services to the Company or a subsidiary or parent corporation or (ii) within
three (3) months after the termination of such holder’s
employment/consulting, other than for cause or as a result of such
employee’s/consultant’s voluntary termination, such Options may,
subject to the provisions of subparagraph (d) of this Paragraph 6, be exercised
by a legatee or legatees of such Option under such individual’s last will
or by such individual’s personal representatives or distributees at any
time within such time as determined by the Board of Directors or the Committee
in its sole discretion, but in no event less than six months after the
individual’s death, to the extent such Options were exercisable as of the
date of death or date of termination of employment, whichever date is earlier. 

     (c)
If the holder of an Option under the Plan becomes disabled within the definition
of section 22(e)(3) of the Code while employed by the Company or a subsidiary or
parent corporation, such Option may, subject to the provisions of subparagraph
(d) of this Paragraph 6, be exercised at any time within six months less one day
after such holder’s termination of employment due to the disability. 

     (d)
Except as otherwise determined by the Board of Directors or the Committee in its
sole discretion, an Option may not be exercised pursuant to this Paragraph 6
except to the extent that the holder was entitled to exercise the Option at the
time of termination of employment, consulting relationship or death, and in any
event may not be exercised after the original expiration date of the Option.
Notwithstanding anything contained herein which may be to the contrary, such
termination or death prior to vesting shall, unless otherwise determined by the
Board of Directors or Committee, in its sole discretion, be deemed to occur at a
time the holder was not entitled to exercise the Option. 

     (e)
The Board of Directors or the Committee, in its sole discretion, may at such
time or times as it deems appropriate, if ever, accelerate all or part of the
vesting provisions with respect to one or more outstanding options. The
acceleration of one Option shall not infer that any other Option is or to be
accelerated. 

7.  Leave of Absence. For
the purposes of the Plan, an individual who is on military or sick leave or
other bona fide leave of absence (such as temporary employment by the
Government) shall be considered as remaining in the employ of the Company or of
a subsidiary or parent corporation for ninety (90) days or such longer period as
such individual’s right to reemployment is guaranteed either by statute or
by contract. 

	8. 		Adjustment
Upon Changes in Capitalization.

	

     (a)
In the event that the outstanding shares of Common Stock are hereafter changed
by reason of recapitalization, reclassification, stock split-up, combination or
exchange of shares of Common Stock or the like, or by the issuance of dividends
payable in shares of Common Stock, an appropriate adjustment shall be made by
the Board of Directors, as determined by the Board of Directors and/or the
Committee, in the aggregate number of shares of Common Stock available under the
Plan, in the number of shares of Common Stock issuable upon exercise of
outstanding Options, and the Option Price per share. In the event of any
consolidation or merger of the Company with or into another company, or the
conveyance of all or substantially all of the assets of the Company to another
company for solely stock and/or securities, each then outstanding Option shall
upon exercise thereafter entitle the holder thereof to such number of shares of
Common Stock or other securities or property to which a holder of shares of
Common Stock of the Company would have been entitled to upon such consolidation,
merger or conveyance; and in any such case appropriate adjustment, as determined
by the Board of Directors of the Company (or successor entity) shall be made as
set forth above with respect to any future changes in the capitalization of the
Company or its successor entity. In the event of the proposed dissolution or
liquidation of the Company, or, except as provided in (b) below, the sale of
substantially all the assets of the Company for other than stock and/or
securities, all outstanding Options under the Plan will automatically terminate,
unless otherwise provided by the Board of Directors of the Company or any
authorized committee thereof. 

     (b)
Any Option granted under the Plan, may, at the discretion of the Board of
Directors of the Company and said other corporation, be exchanged for options to
purchase shares of capital stock of another corporation which the Company,
and/or a subsidiary thereof is merged into, consolidated with, or all or a
substantial portion of the property or stock of which is acquired by said other
corporation or separated or into which the Company is reorganized. The terms,
provisions and benefits to the optionee of such substitute option(s) shall in
all respects be identical to the terms, provisions and benefits of optionee
under his Option(s) prior to said substitution. To the extent the above may be
inconsistent with Sections 424(a)(1) and (2) of the Code, the above shall be
deemed interpreted so as to comply therewith. 

     (c)
Any adjustment in the number of shares of Common Stock shall apply
proportionately to only the unexercised portion of the Options granted
hereunder. If fractions of shares of Common Stock would result from any such
adjustment, the adjustment shall be revised to the next higher whole number of
shares of Common Stock. No adjustment shall be made with respect to stock
dividends or splits which do not exceed 5% in any fiscal year, cash dividends or
the issuance to shareholders of the Company of rights to subscribe for
additional shares of Common Stock or other securities. 

	9. 		Further
Conditions of Exercise.

	

     (a)
Unless the shares of Common Stock issuable upon the exercise of an Option have
been registered with the Securities and Exchange Commission pursuant to the
Securities Act of 1933, as amended, prior to the exercise of the Option, an
optionee must represent in writing to the Company that such shares of Common
Stock are being acquired for investment purposes only and not with a view
towards the further resale or distribution thereof, and must supply to the
Company such other documentation as may be required by the Company, unless in
the opinion of counsel to the Company such representation, agreement or
documentation is not necessary to comply with said Act. The Company shall be
permitted to inscribe an appropriate legend on the Common Stock certificate
acquired for investment. 

	

     (b)
The Company shall not be obligated to deliver any shares of Common Stock until
they have been listed on each securities exchange on which the shares of Common
Stock may then be listed or until there has been qualification under or
compliance with such state or federal laws, rules or regulations as the Company
may deem applicable. 

     (c)
The Board of Directors or Committee may make such provisions and take such steps
as it may deem necessary or appropriate for the withholding of any taxes that
the Company is required by any law or regulation of any governmental authority,
whether federal, state or local, domestic or foreign, to withhold in connection
with the exercise of any Option, including, but not limited to, (i) the
withholding of payment of all or any portion of such Option and/or SAR until the
holder reimburses the Company for the amount the Company is required to withhold
with respect to such taxes, or (ii) the canceling of any number of shares of
Common Stock issuable upon exercise of such Option and/or SAR in an amount
sufficient to reimburse the Company for the amount it is required to so
withhold, (iii) the selling of any property contingently credited by the Company
for the purpose of exercising such Option, in order to withhold or reimburse the
Company for the amount it is required to so withhold, or (iv) withholding the
amount due from such employee’s wages if the employee is employed by the
Company or any subsidiary thereof. 

	10. 		Termination,
Modification and Amendment.

	

     (a)
The Plan (but not Options previously granted under the Plan) shall terminate ten
(10) years from the earliest of the date of its adoption by the Board of
Directors, or the date the Plan is approved by the stockholders of the Company,
or such date of termination, as hereinafter provided, and no Option shall be
granted after termination of the Plan. 

     (b)
The Plan may from time to time be terminated, modified or amended by the
affirmative vote of the holders of a majority of the outstanding shares of
capital stock of the Company entitled to vote thereon. 

     (c)
The Board of Directors of the Company may at any time, prior to ten (10) years
from the earlier of the date of the adoption of the Plan by such Board of
Directors or the date the Plan is approved by the stockholders, terminate the
Plan or from time to time make such modifications or amendments of the Plan as
it may deem advisable; provided, however, that the Board of Directors shall not,
without approval by the affirmative vote of the holders of a majority of the
outstanding shares of capital stock of the Company entitled to vote thereon,
increase (except as provided by Paragraph 8) the maximum number of shares of
Common Stock as to which Options or shares may be granted under the Plan, or
materially change the standards of eligibility under the Plan. Any amendment to
the Plan which, in the opinion of counsel to the Company, will be deemed to
result in the adoption of a new Plan, will not be effective until approved by
the affirmative vote of the holders of a majority of the outstanding shares of
capital stock of the Company entitled to vote thereon. 

     (d)
No termination, modification or amendment of the Plan may adversely affect the
rights under any outstanding Option without the consent of the individual to
whom such Option shall have been previously granted. 

	11. 		Effective
Date of the Plan.

	

     The
Plan shall become effective upon adoption by the Board of Directors of the
Company. The Plan shall be subject to approval by the affirmative vote of the
holders of a majority of the outstanding shares of capital stock of the Company
present in person or by proxy at an Annual or Special Meeting of the
Stockholders and voting thereon within one year after adoption of the Plan by
the Board of Directors. 

	12. 		Not
a Contract of Employment or for Services.

	

     Nothing
contained in the Plan or in any option agreement executed pursuant hereto shall
be deemed to confer upon any individual to whom an Option is or may be granted
hereunder any right to remain in the employ of or be engaged by the Company or
of a subsidiary or parent of the Company or in any way limit the right of the
Company, or of any parent or subsidiary thereof, to terminate the employment of
any employee or engagement of any consultant. 

	13. 		Other
Compensation Plans.

	

     The
adoption of the Plan shall not affect any other stock option plan, incentive
plan or any other compensation plan in effect for the Company, nor shall the
Plan preclude the Company from establishing any other form of stock option plan,
incentive plan or any other compensation plan.

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