Document:

EX-10.1

                               KEEPSMART.COM, INC.

                             1999 STOCK OPTION PLAN

1.     PURPOSES.  The purposes of the 1999 Stock Option Plan (the "Plan") are to
attract  and  retain   qualified   personnel   for   positions  of   substantial
responsibility,  to provide additional incentive to the Employees of the Company
or its Subsidiaries (as defined below), as well as other individuals who perform
services for the Company or its Subsidiaries,  and to promote the success of the
Company's  business.  The  provisions  of the Plan are  intended  to satisfy the
requirements of Section 16(b) of the Exchange Act (as defined below) and Section
162(m) of the Code (as defined below).

       Options granted  hereunder may be either  "incentive  stock options",  as
defined in Section 422 of the Code, or  "non-qualified  stock  options",  at the
discretion of the Board and as reflected in the terms of the written  instrument
evidencing an Option.

2.     DEFINITIONS. As used herein, the following definitions shall apply:

       (a)    "BOARD" shall mean the Board of Directors of the Company.

       (b)    "CODE" shall mean the Internal Revenue Code of 1986, as amended.

       (c)    "COMMON  STOCK"  shall mean the Common  Stock of the Company  (par
value $.0001 per share.)

       (d)    "COMPANY" shall mean KeepSmart.Com, Inc., a Delaware corporation.

       (e)    "COMMITTEE"  shall mean the  Committee  appointed  by the Board of
Directors in accordance  with  paragraph (a) of Section 4 of the Plan, if one is
appointed.

       (f)    "CONTINUOUS  STATUS AS AN EMPLOYEE"  shall mean the absence of any
interruption or termination of service as an Employee.  Continuous  Status as an
Employee shall not be considered interrupted in the case of sick leave, military
leave, or any other leave of absence approved by the Board.

       (g)    "EMPLOYEE"   shall  mean  any  person,   including   officers  and
directors,  employed by the Company or any Parent or  Subsidiary of the Company.
The  payment of a  director's  fee by the  Company  shall not be  sufficient  to
constitute "employment" by the Company.

       (h)    "EXCHANGE ACT" shall mean the Securities  Exchange Act of 1934, as
amended.

       (i)    "INCENTIVE  STOCK  OPTION"  shall mean a stock option  intended to
qualify as an incentive  stock  option  within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended.

       (j)    "NON-QUALIFIED  STOCK  OPTION"  shall  mean  a  stock  option  not
intended to qualify as an Incentive Stock Option.

       (k)    "OPTION" shall mean a stock option granted pursuant to the Plan.

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       (l)    "OPTIONED STOCK" shall mean the Common Stock subject to an Option.

       (m)    "OPTIONEE"  shall mean an Employee or other person who receives an
Option.

       (n)    "PARENT"  shall  mean  a  "parent  corporation",  whether  now  or
hereafter existing, as defined in Section 425(e) of the Internal Revenue Code of
1986, as amended.

       (o)    "SECURITIES  ACT"  shall  mean  the  Securities  Act of  1933,  as
              amended.

       (p)    "SEC" shall mean the Securities and Exchange Commission.

       (q)    "SHARE"  shall mean a share of the Common  Stock,  as  adjusted in
accordance with Section 11 of the Plan.

       (r)    "SUBSIDIARY" shall mean a "subsidiary corporation", whether now or
hereafter existing, as defined in Section 425(f) of the Internal Revenue Code of
1986, as amended.

3.     STOCK.

       Subject  to the  provisions  of  Section  11 of  the  Plan,  the  maximum
aggregate  number of shares  which may be  optioned  and sold  under the Plan is
1,706,637  shares  of  Common  Stock.  If an  Option  should  expire  or  become
unexercisable  for any  reason  without  having  been  exercised  in  full,  the
unpurchased Shares which were subject thereto shall,  unless the Plan shall have
been terminated, become available for further grant under the Plan.

4.     ADMINISTRATION.

       (a)    PROCEDURE.   The  Company's  Board  of  Directors  may  appoint  a
Committee to administer the Plan.  The Committee  shall consist of not less than
three members of the Board of Directors who shall  administer the Plan on behalf
of the Board of Directors,  subject to such terms and conditions as the Board of
Directors may prescribe.  Once appointed,  the Committee shall continue to serve
until otherwise directed by the Board of Directors.  From time to time the Board
of  Directors  may  increase the size of the  Committee  and appoint  additional
members thereof, remove members (with or without cause), and appoint new members
in substitution  therefor,  fill vacancies however caused, or remove all members
of the Committee and thereafter directly administer the Plan.

       If a majority of the Board of Directors is eligible to be granted Options
or has been eligible at any time within the preceding  year, a Committee must be
appointed to administer  the Plan.  The Committee  must consist of not less than
three  members  of the  Board  of  Directors,  all  of  whom  are  "non-employee
directors"  as  defined  in Rule  16b-3 of the  General  Rules  and  Regulations
promulgated under the Exchange Act and "outside  directors" under Section 162(m)
of the Code.

       (b)    POWERS OF THE BOARD.  Subject to the  provisions of the Plan,  the
Board,  or the Committee  shall have the authority,  in its  discretion:  (i) to
grant Incentive  Stock Options,  in accordance with Section 422A of the Internal
Revenue Code of 1986, as amended, or to grant Non-qualified Stock Options;  (ii)
to determine, upon review of relevant information and in accordance with Section
8(b) of the Plan, the fair market value of the Common Stock;  (iii) to determine
the exercise price per share of Options to be granted which exercise price shall
be determined in accordance with Section 8(a) of the Plan; (iv) to determine the
persons to whom,  and the time or times at which,  Options  shall be granted and
the number of shares to be  represented  by each Option;  (v) to  interpret  the
Plan; (vi) to prescribe, amend and rescind rules and regulations relating to the

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Plan;  (vii) to determine the terms and provisions of each Option granted (which
need not be identical)  and, with the consent of the holder  thereof,  modify or
amend  each  Option;  (viii) to  accelerate  or defer  (with the  consent of the
Optionee)  the  exercise  date of any Option;  (ix) to  authorize  any person to
execute on behalf of the Company any instrument required to effectuate the grant
of an  Option  previously  granted  by the  Board;  and  (x) to make  all  other
determinations deemed necessary or advisable for the administration of the Plan.

       (c)    EFFECT OF THE BOARD'S DECISION. All decisions,  determinations and
interpretations of the Board shall be final and binding on all Optionees and any
other holders of any Options granted under the Plan.

5.     ELIGIBILITY

       (a)    GENERAL. Incentive Stock Options may be granted only to Employees.
Non-qualified  Stock  Options may be granted to  employees  as well as directors
(subject to the limitations set forth in Section 4), independent contractors and
agents,  as determined  by the Board.  Any person who has been granted an Option
may, if he is otherwise  eligible,  be granted an additional  Option or Options.
The  Plan  shall  not  confer  upon any  Optionee  any  right  with  respect  to
continuation  of  employment  by the Company,  nor shall it interfere in any way
with his right or the Company's right to terminate his employment at any time.

       (b)    LIMITATION ON INCENTIVE  STOCK OPTIONS.  No Incentive Stock Option
may be granted to an  Employee  if, as the result of such grant,  the  aggregate
fair market value (determined at the time each option was granted) of the Shares
with respect to which such Incentive Stock Options are exercisable for the first
time by such  Employee  during any  calendar  year  (under all such plans of the
Company and any Parent and Subsidiary) shall exceed One Hundred Thousand Dollars
($100,000).

6.     TERM OF THE PLAN.  The Plan shall  become  effective  upon the earlier to
occur of (i) its  adoption by the Board of  Directors,  or (ii) its  approval by
vote of the  holders  of a majority  of the  outstanding  shares of the  Company
entitled to vote on the adoption of the Plan.  The Plan shall continue in effect
until September 30, 2009 unless sooner terminated under Section 13 of the Plan.

7.     TERM OF OPTION.  The term of each Option shall be ten (10) years from the
date of grant hereof or such  shorter term as may be provided in the  instrument
evidencing the Option. However, in the case of an Incentive Stock Option granted
to an Employee who,  immediately  before the Incentive  Stock Option is granted,
owns stock  representing  more than ten percent (10%) of the voting power of all
classes of stock of the  Company or any  Parent or  Subsidiary,  the term of the
Incentive  Stock Option shall be five (5) years from the day of grant thereof or
such shorter time as may be provided in the instrument evidencing the Option.

8.     EXERCISE PRICE AND CONSIDERATION.

       (a)    The per Share exercise price for the Shares to be issued  pursuant
to the exercise of an Option shall be such price as is  determined by the Board,
but shall be subject to the following:

              (i)    In the case of an Incentive Stock Option:

                     (A)    granted to an Employee who,  immediately  before the
grant of such  Incentive  Stock Option,  owns stock  representing  more than ten
percent  (10%) of the voting power of all classes of stock of the Company or any
Parent or Subsidiary, the per Share exercise price shall be no less than 110% of
the fair market value per Share on the date of grant, as the case may be;

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                     (B)    granted to an Employee not subject to the provisions
of Section  8(a)(i)(A),  the per Share  exercise price shall be no less than one
hundred percent (100%) of the fair market value per Share on the date of grant.

              (ii)   In the case of a Non-qualified  Stock Option, the per Share
exercise  price  shall be no less than one  hundred  percent  (100%) of the fair
market value per Share on the date of grant.

       (b)    The fair  market  value  shall be  determined  by the Board in its
discretion;  provided,  however,  that  where  there is a public  market for the
Common  Stock,  the fair market value per Share shall be the mean of the bid and
asked  prices or, if  applicable,  the closing  price of the Common Stock on the
date of grant,  as reported by the National  Association  of Securities  Dealers
Automated  Quotation (NASDAQ) System or, in the event the Common Stock is listed
on a stock exchange,  the fair market value per Share shall be the closing price
on such  exchange  on the date of grant of the  Option,  as reported in the Wall
Street Journal.

       (c)    The  consideration  to be paid for the  Shares to be  issued  upon
exercise of an Option or in payment of any withholding taxes thereon,  including
the method of payment, shall be determined by the Board and may consist entirely
of (i) cash,  check or promissory  note; (ii) other Shares of Common Stock owned
by the Employee having a fair market value on the date of surrender equal to the
aggregate  exercise  price  of the  Shares  as to  which  said  Option  shall be
exercised;  (iii)  other  Options  owned by the  Employee  having  an  aggregate
in-the-money  value equal to the aggregate  exercise  price of the Options being
exercised  (Options are  in-the-money if the fair market value of the underlying
Shares  exceeds the exercise  price of the  Options),(iv)  an  assignment by the
Employee of the net proceeds to be received  from a  registered  broker upon the
sale of the Shares or the proceeds of a loan from such broker in such amount; or
(v) any combination of such methods of payment,  or such other consideration and
method of  payment  for the  issuance  of Shares to the extent  permitted  under
Delaware Law and meeting rules and  regulations  of the SEC to plans meeting the
requirements of Section 16(b)(3) of the Exchange Act.

9.     PROCEDURES AND LIMITATIONS ON EXERCISE OF OPTIONS.

       (a)    PROCEDURE  FOR  EXERCISE;  RIGHTS  AS A  STOCKHOLDER.  Any  Option
granted  hereunder  shall be  exercisable  at such  times  and  subject  to such
conditions  as may be determined by the Board,  including  performance  criteria
with respect to the Company  and/or the  Optionee,  and as shall be  permissable
under the terms of the Plan.

              An Option may not be exercised for a fraction of a Share.

              An Option shall be deemed to be exercised  when written  notice of
       such exercise has been given to the Company in accordance  with the terms
       of the  instrument  evidencing  the  Option  by the  person  entitled  to
       exercise the Option and full payment for the Shares with respect to which
       the Option is exercised  has been  received by the Company.  Full payment
       may, as authorized by the Board,  consist of any consideration and method
       of payment  allowable under Section 8(c) of the Plan; it being understood
       that the Company shall take such action as may be reasonably  required to
       permit use of an approved payment method. Until the issuance, which in no
       event will be  delayed  more than  thirty  (30) days from the date of the
       exercise of the Option,  (as  evidenced by the  appropriate  entry on the
       books  of the  Company  or of a duly  authorized  transfer  agent  of the
       Company) of the stock  certificate  evidencing  such Shares,  no right to
       vote or receive  dividends  or any other  rights as a  stockholder  shall
       exist with respect to the Optioned Stock, notwithstanding the exercise of
       the Option.  No adjustment will be made for a dividend or other right for
       which  the  record  date is prior to the date the  stock  certificate  is
       issued, except as provided in the Plan.

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              Exercise of an Option in any manner  shall result in a decrease in
       the number of Shares which thereafter may be available, both for purposes
       of the Plan and for sale under the Option,  by the number of Shares as to
       which the Option is exercised.

       (b)    PROVISIONS FOR ALL INCENTIVE STOCK OPTIONS.

              The  following  provisions  shall  apply  to all  Incentive  Stock
       Options:

              (i)    TERMINATION  OF  STATUS  AS AN  EMPLOYEE.  If any  Employee
ceases to serve as an  Employee,  he may,  but only within  thirty (30) days (or
such other period of time not exceeding ninety (90) days as is determined by the
Board) after the date he ceases to be an Employee of the  Company,  exercise his
Option to the extent that he was  entitled to exercise it as of the date of such
termination.  To the extent that he was not  entitled to exercise  the Option at
the date of such  termination,  or if he does not exercise such Option (which he
was entitled to exercise)  within the time  specified  herein,  the Option shall
terminate.

              (ii)   DISABILITY OF AN EMPLOYEE.  Notwithstanding  the provisions
of Section  9(b)  above,  in the event an  Employee  is unable to  continue  his
employment  with the Company as a result of his total and  permanent  disability
(as  defined in Section  105(d)(4)  of the  Internal  Revenue  Code of 1986,  as
amended), he may, but only within three (3) months (or such other period of time
not exceeding twelve (12) months as is determined by the Board) from the date of
disability,  exercise his Option to the extent he was entitled to exercise it at
the date of such disability.  To the extent that he was not entitled to exercise
the Option at the date of  disability,  or if he does not  exercise  such Option
(which he was entitled to exercise) within the time specified herein, the Option
shall terminate.

              (iii)  DEATH  OF  OPTIONEE.  In  the  event  of  the  death  of an
Optionee:

                     (A)    during  the term of the Option who is at the time of
his death an  Employee  of the  Company  and who shall  have been in  Continuous
Status as an Employee  since the date of grant of the Option,  the Option may be
exercised, at any time within twelve (12) months following the date of death, by
the  Optionee's  estate or by a person who  acquired  the right to exercise  the
Option  by  bequest  or  inheritance,  but only to the  extent  of the  right to
exercise that would have accrued had the Optionee continued living one (1) month
after the date of death; or

                     (B)    within  thirty  (30) days (or such  other  period of
time not  exceeding  three (3) months as is  determined  by the Board) after the
termination of Continuous Status as an Employee, the Option may be exercised, at
any time within three (3) months  following the date of death, by the Optionee's
estate or by a person who  acquired  the right to exercise the Option by bequest
or inheritance, but only to the extent of the right to exercise that had accrued
at the date of termination.

10.    NON-TRANSFERABILITY  OF  OPTIONS.  An  Option  may not be sold,  pledged,
assigned, hypothecated,  transferred, or disposed of in any manner other than by
will or by the laws of descent or distribution and may be exercised,  during the
lifetime of the Optionee, only by the Optionee.

11.    ADJUSTMENTS  UPON  CHANGES IN  CAPITALIZATION  OR MERGER.  Subject to any
required  action by the  stockholders  of the  Company,  the number of shares of
Common Stock  covered by each  outstanding  Option,  and the number of shares of
Common Stock which have been  authorized  for issuance  under the Plan but as to
which no Options have yet been  granted or which have been  returned to the Plan
upon  cancellation or expiration of an Option, as well as the price per share of
Common Stock covered by each such outstanding  Option,  shall be proportionately
adjusted for any  increase or decrease in the number of issued  shares of Common
Stock resulting from a stock

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split or the payment of a stock dividend with respect to the Common Stock or any
other  increase  or  decrease  in the  number of issued  shares of Common  Stock
effected  without receipt of consideration  by the Company;  provided,  however,
that conversion of any convertible securities of the Company shall not be deemed
to have been "effected without receipt of consideration".  Such adjustment shall
be made by the  Board,  whose  determination  in that  respect  shall be  final,
binding and conclusive.  Except as expressly provided herein, no issuance by the
Company of shares of stock of any class, or securities  convertible  into shares
of stock of any class,  shall affect,  and no adjustment by reason thereof shall
be made with respect to, the number or price of shares of Common  Stock  subject
to an Option.

       In the event of the proposed  dissolution  or liquidation of the Company,
or in the event of a proposed sale of all or substantially  all of the assets of
the Company, or the merger of the Company with or into another corporation,  the
Board of Directors of the Company shall, as to outstanding  Options,  either (i)
make appropriate provision for the protection of any such outstanding Options by
the  substitution on an equitable basis of appropriate  stock of (a) the Company
(b) the merged,  consolidated  or otherwise  reorganized  corporation or (c) the
ultimate  parent entity of such merged,  consolidated  or otherwise  reorganized
corporation,  in each case  which  will be  issuable  in respect to one share of
Common Stock of the  Company;  provided,  only that the excess of the  aggregate
fair market value of the shares  subject to the Options  immediately  after such
substitution  over the purchase price thereof is not more than the excess of the
aggregate  fair market value of the shares  subject to such Options  immediately
before such substitution  over the purchase price thereof,  or (ii) upon written
notice to an Optionee,  provide that all  unexercised  Options must be exercised
within a  specified  number  of days of the date of such  notice or they will be
terminated.  In any such case,  the Board of Directors  may, in its  discretion,
advance the lapse of any waiting or installment periods and exercise dates.

12.    TIME FOR GRANTING OPTIONS.  The date of grant of an Option shall, for all
purposes,  be the date on which the Board makes the determination  granting such
Option.  Notice of the  determination  shall be given to each  person to whom an
Option is so granted within a reasonable time after the date of such grant.

13.    ASSUMPTION OF OPTIONS.

       In connection  with the acquisition by the Company of any other business,
whether by merger,  purchase of assets or otherwise  the Company may,  under the
Plan,  assume options  granted to employees of such acquired  businesses who are
thereafter  employed by the Company ("Acquired  Employees") on such terms as may
be provided in such  options;  provided  however,  that if any of such terms are
inconsistent  with the provisions of the Plan,  then upon such  assumption  such
inconsistent  provisions  must be amended to comply with the  provisions  of the
Plan.  In addition in assuming  such  options,  the Company may amend any of the
provisions of such options as the Board in its sole discretion shall determine.

14.    AMENDMENT AND TERMINATION OF THE PLAN.

       (a)    GENERAL.  The Board may amend or  terminate  the Plan from time to
time in such respects as the Board may deem advisable;  provided,  however, that
the following revisions or amendments shall require approval of the holders of a
majority of the outstanding shares of the Company entitled to vote:

       (i)    any  increase in the number of Shares  subject to the Plan,  other
than in connection with an adjustment under Section 11 of the Plan;

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       (ii)   any change in the designation of the class of persons  eligible to
be granted options; or

       (iii)  any  material  increase in the benefits  accruing to  participants
under the Plan.

       (b)    STOCKHOLDER  APPROVAL.  If  any  amendment  requiring  stockholder
approval  under Section  13(a) of the Plan is made,  such  stockholder  approval
shall be solicited as described in Section 17(a) of the Plan.

       (c)    EFFECT  OF  AMENDMENT  OR  TERMINATION.   Any  such  amendment  or
termination  of the Plan  shall not  affect  Options  already  granted  and such
Options  shall  remain  in full  force  and  effect as if this Plan had not been
amended or terminated, unless mutually agreed otherwise between the Optionee and
the Board, which agreement must be in writing and signed by the Optionee and the
Company.

15.    CONDITIONS  UPON ISSUANCE OF SHARES.  Shares shall not be issued pursuant
to the exercise of an Option unless the exercise of such Option and the issuance
and  delivery of such Shares  pursuant  thereto  shall  comply with all relevant
provisions of law, including, without limitation, the Securities Act of 1933, as
amended, the Exchange Act, the rules and regulations promulgated thereunder, and
the requirements of any stock exchange upon which the Shares may then be listed,
and shall be further  subject to the  approval of counsel  for the Company  with
respect to such compliance.

       As a condition to the exercise of an Option,  the Company may require the
person  exercising  such Option to represent and warrant at the time of any such
exercise that the Shares are being purchased only for investment and without any
present  intention  to sell or  distribute  such  Shares  if, in the  opinion of
counsel for the Company,  such a  representation  is required by, or appropriate
under, any of the aforementioned relevant provisions of law.

16.    RESERVATION OF SHARES. The Company, during the term of this Plan, will at
all  times  reserve  and  keep  available  such  number  of  Shares  as shall be
sufficient to satisfy the requirements of the Plan.

       Inability of the Company to obtain  authority  from any  regulatory  body
having  jurisdiction,  which authority is deemed by the Company's  counsel to be
necessary to the lawful issuance and sale of any Shares hereunder, shall relieve
the  Company of any  liability  in respect of the  failure to issue or sell such
Shares as to which such requisite authority shall not have been obtained.

17.    OPTION AGREEMENT. Options shall be evidenced by written option agreements
in such form as the Board shall approve.

18.    STOCKHOLDER  APPROVAL.  Continuation  of the  Plan  shall be  subject  to
approval by the  stockholders of the Company within twelve (12) months after the
date the Plan is adopted by the Board. If such stockholder  approval is obtained
at a duly held stockholders' meeting, it may be obtained by the affirmative vote
of the holders of a majority of the outstanding shares of the Company present or
represented and entitled to vote thereon.  The approval of such  stockholders of
the Company shall be (1)  solicited  substantially  in  accordance  with Section
14(a) of the Exchange Act and the rules and regulations  promulgated thereunder,
or (2)  solicited  after the  Company  has  furnished  in writing to the holders
entitled to vote substantially the same information  concerning the Plan as that
which would be required by the rules and  regulations  in effect  under  Section
14(a) of the Exchange Act at the time such information is furnished.

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       If such  stockholder  approval  is  obtained  by  written  consent in the
absence of a Stockholders'  Meeting,  it must be obtained by the written consent
of  stockholders of the Company who would have been entitled to cast the minimum
number of votes which would be necessary  to authorize  such action at a meeting
at which all stockholders entitled to vote thereon were present and voting.

19.    OTHER  PROVISIONS.  The Stock Option Agreement  authorized under the Plan
shall contain such other provisions, including, without limitation, restrictions
upon the  exercise of the Option,  as the Board of  Directors  of the  Company's
shall deem advisable.  Any Incentive  Stock Option  Agreement shall contain such
limitations and restrictions  upon the exercise of the Incentive Stock Option as
shall be necessary  in order that such option will be an Incentive  Stock Option
as defined in Section 422 of the Internal Revenue Code of 1986, as amended.

20.    INDEMNIFICATION   OF  BOARD.   In  addition  to  such  other   rights  of
indemnification  as they may have as directors  or as members of the Board,  the
members of the Board shall be indemnified by the Company  against the reasonable
expenses,  including  attorneys'  fees  actually  and  necessarily  incurred  in
connection  with the defense of any action suit or proceeding,  or in connection
with any appeal  therein,  to which they or any of them may be a party by reason
of any action  taken or failure to act under or in  connection  with the Plan or
any  Option  granted  thereunder,  and  against  all  amounts  paid  by  them in
settlement  thereof  (provided such settlement is approved by independent  legal
counsel  selected by the Company) or paid by them in  satisfaction of a judgment
in any such  action,  suit or  proceeding,  except in  relation to matters as to
which it shall be adjudged in such action,  suit or  proceeding  that such Board
member is liable for negligence or misconduct in the  performance of his duties,
provided that within sixty (60) days after institution of any such action,  suit
or  proceeding  a  Board  member  shall,  in  writing,  offer  the  Company  the
opportunity, as its own expense, to handle and defend the same.

21.    OTHER  COMPENSATION  PLANS. The adoption of the Plan shall not affect any
other stock option or incentive  or other  compensation  plans in effect for the
Company  or any  Subsidiary,  nor  shall  the Plan  preclude  the  Company  from
establishing  any other forms of incentive or other  compensation  for employees
and directors of the Company or any Subsidiary.

22.    COMPLIANCE  WITH EXCHANGE ACT RULE 16B-3 AND SECTION  162(M) OF THE CODE.
Transactions  under  the  Plan  are  intended  to  comply  with  all  applicable
conditions  of Rule 16b-3 under the  Exchange  Act and Section  162(m) under the
Code. To the extent any provision of the Plan or action by the Board fails to so
comply,  it shall be deemed null and void,  to the extent  permitted  by law and
deemed advisable by the Board.

23.    SINGULAR,  PLURAL;  GENDER.  Whenever used herein,  nouns in the singular
shall include the plural,  and the masculine  pronoun shall include the feminine
gender.

24.    HEADINGS, ETC., NO PART OF PLAN. Headings of Articles and Sections hereof
are inserted for convenience and reference; they constitute no part of the Plan.

                                       8EX-10.2

                   THIRD AMENDED EMPLOYMENT AGREEMENT BETWEEN
                                 SMARTPROS LTD.
                                       AND
                                 ALLEN S. GREENE

This  amended  employment  agreement  dated as of May 1, 2004 is by and  between
SmartPros Ltd., a Delaware corporation (the "Company"),  and Allen S. Greene, an
individual  residing at 100 Minnisink Road,  Short Hills,  New Jersey 07078 (the
"Executive").

1.     EMPLOYMENT.  The Company  shall employ the  Executive,  and the Executive
       agrees  to serve the  Company,  on the  terms  and  conditions  set forth
       herein.  The  Executive  shall serve as Vice  Chairman & Chief  Executive
       Officer of the Company and shall be based at the  Company's  headquarters
       in Hawthorne, New York, but Executive may work up to 2 days per week from
       his home. The Executive hereby accepts such employment hereunder,  except
       for absences occasioned by illness and reasonable  vacation periods,  and
       agrees to  undertake  the duties and  responsibilities  inherent  in such
       position and such other duties and  responsibilities as the Company shall
       from time to time reasonably assign to him. The Executive shall report to
       and be supervised by the Board of Directors of the Company (the "Board").
       The Executive shall use his best efforts, including the highest standards
       of  professional  competence  and  integrity,  and shall  devote his full
       business time and effort to the performance of his duties hereunder.  The
       Executive shall not engage in any other business activity except that the
       Executive  may  engage  from  time to time  in such  personal  investment
       activities as do not interfere  with his day to day  responsibilities  to
       the Company.  The Executive  shall be allowed to serve as an  independent
       member  of the  boards of  directors  of other  companies  with the prior
       approval of the Board.

2.     COMPENSATION AND BENEFITS.

       2.1    SALARY. During the Term (as defined below) of this Agreement,  the
              Executive shall be paid a salary at the rate of $236,250 per annum
              (the "Base Salary"),  payable as customarily  paid by the Company.
              Such  salary  shall  increase  to  $250,000  per  annum  upon  the
              completion  of  a  public  offering.   During  the  Term  of  this
              Agreement,  executive's  base  salary  shall be  reviewed at least
              annually by the Board. The first such review will be made no later
              than  April  30,  2005 and  thereafter  the Base  Salary  shall be
              reviewed  on or before  April 30th of each  succeeding  year.  The
              Board, in its sole discretion,  may increase, but not decrease the
              Base Salary.

       2.2    BONUS.  In  addition  to his Base  Salary,  the  Executive  may be
              entitled  to  bonuses  at  times  and  amounts  determined  in the
              discretion of the Board. The

<PAGE>

              target  bonus shall equal 50 % of Base  Salary.  The bonus will be
              based  50%  on   Company   performance   and  50%  on   individual
              performance.

       2.3    BENEFITS.  The Executive  shall be entitled to  participate in all
              employee  benefit programs or plans maintained by the Company from
              time  to  time on the  same  basis  as  other  similarly  situated
              executive employees of the Company. If the Executive elects not to
              participate  in the  Company's  health,  dental or life  insurance
              plans the Company will pay or reimburse  (based on the cost to the
              Company for a family plan) the  Executive  for the direct  premium
              cost of Executive's  participation in the Fleet Bancorp health and
              life insurance plan. (Any increase in the Company's cost for their
              plan will increase the amount of reimbursement.)  The Company will
              pay or reimburse the lease cost of the automobile currently leased
              by the Executive and upon  expiration or  termination of the lease
              will  continue to provide the  Executive  with a similar  suitable
              automobile for his business  and/or personal use. The Company will
              pay or reimburse all  maintenance,  insurance,  tolls,  fuel,  and
              other  operating  expenses of the automobile  currently  leased by
              Executive  or any  replacement  provided by the Company  hereunder
              including  any  excess  mileage  charges.  The  Executive  will be
              entitled to 4 weeks paid vacation per year.

       2.4    REIMBURSEMENT  OF  EXPENSES.   The  Company  shall  reimburse  the
              Executive in accordance  with its general  reimbursement  policies
              for all ordinary and necessary  expenses incurred by the Executive
              on behalf of the  Company  upon the  presentation  of  appropriate
              supporting documentation.

       2.5    STOCK  OPTIONS.  Pursuant to Stock Option  Agreements in customary
              form, the Company has previously granted to the Executive pursuant
              and subject to its Stock Option Plan, stock options to purchase up
              to 250,000 shares of the Company's common stock ("Common  Stock").
              The  options  have a term of 10 years,  and are fully  vested.  In
              addition, the options provide that upon termination of employment,
              the executive may exercise all options  vested at the time of such
              termination  until  the  later  of (a)  the  90th  day  after  the
              termination  of such  employment or (b) the 90th day after the day
              on which  both of the  following  events  have  occurred:  (i) the
              Common  Stock is traded  on the NY Stock  Exchange,  the  American
              Stock  Exchange,  the NASDAQ,  National Market or the NASDAQ Small
              Cap Market and (ii) the  Executive  may sell the shares  which are
              the subject of such option,  free of any  contractual  restriction
              imposed by the Company or any underwriter of the Company's  Common
              Stock or any restrictions imposed by the Securities Act of 1933 as
              amended.  All the options and their terms remain in full force and
              effect.

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<PAGE>

3.     TERM; TERMINATION; RIGHTS UPON TERMINATION.

       3.1    TERM.  The  Company  agrees  to  employ  the  Executive,  and  the
              Executive agrees to serve the Company for a period  commencing May
              1, 2004 and  continuing for three years  thereafter  (such period,
              including all extensions thereto,  to be collectively  referred to
              as the "EMPLOYMENT PERIOD"),  unless otherwise terminated pursuant
              to the terms hereof.  The  Employment  Period shall  automatically
              renew annually for a new  three-year  term unless prior to the end
              of the first year of each three-year  term,  either the Company or
              the Executive provides notice to the other party to this Agreement
              of its  intention not to extend the  Employment  Period beyond the
              then current  three-year  term.  Any notice given pursuant to this
              Section shall be provided in accordance  with the terms of Section
              8.1 hereof and shall be  provided  not later than 30 days prior to
              the end of such one-year period.

       3.2    TERMINATION. The Company may at any time, terminate the employment
              of the  Executive  under  this  Agreement  for Cause  (as  defined
              below), or without cause,  immediately and without any requirement
              of notice.  The rights and  obligations  of the  parties  upon any
              termination of the Executive's employment shall be as set forth in
              Section 3.3. For purposes of this Agreement the term "Cause" shall
              mean (i) any act of  dishonesty  or gross and  willful  misconduct
              with respect to the Company,  including without limitation,  fraud
              or theft,  on the part of the  Executive,  (ii)  conviction of the
              Executive of a felony, or (iii) the Executive's failure to perform
              his assigned  duties  hereunder  after written notice and a 30 day
              opportunity to cure.

       3.3    RIGHTS UPON TERMINATION. In the event that:

              (a)           The employment of the Executive is terminated by the
                     Company  without Cause or by the Executive  upon any change
                     by  the   Company  in   Executives   function,   duties  or
                     responsibilities,  which  change  would  cause  Executive's
                     position   with  the   Company  to  become  one  of  lesser
                     responsibility,  importance  or  scope  from  the  position
                     described in Section 1, then, for the remainder of the then
                     current term of employment hereunder, (i) the Company shall
                     pay to the  Executive,  at the  time  otherwise  due  under
                     Section  2, all Base  Salary  at the rate in  effect at the
                     time of  termination,  (ii) a bonus  equal  to the  highest
                     annual  bonus  received by the  Executive  in the last five
                     years  multiplied  by the amount of whole and partial years
                     remaining  on the  contract  and  (iii) the  Company  shall
                     provide to the Executive all benefits  described in Section
                     2.3. In addition the vesting of stock options  described in
                     Section 2.5, and those granted previously, shall accelerate
                     such that 100% of such options shall  automatically vest on
                     the  date  of  such  termination.  The  obligations  of the
                     Company pursuant to this Section 3.3(a) shall be in lieu of
                     any

                                       3
<PAGE>

                     other rights of the Executive  hereunder to compensation or
                     benefits in respect of any period  before or after the date
                     of such termination.

              (b)           The Executive's  employment  terminates by reason of
                     death or disability, then the Company shall pay and provide
                     to the Executive or Executive's  estate or other  successor
                     in interest at the time  otherwise  due under Section 2 all
                     Base Salary and benefits due to the Executive under Section
                     2  through  the end of the sixth  month  after the month in
                     which the  termination  occurs,  but reduced in the case of
                     disability by any payments  received  under any  disability
                     plan,  program  or  policy  paid  for by the  Company.  The
                     obligations of the Company  pursuant to this Section 3.3(b)
                     shall be and in lieu of any other  rights of the  Executive
                     hereunder  to  compensation  or  benefits in respect of any
                     period before or after the date of such  termination and in
                     lieu of any severance payment, and no other compensation of
                     any kind or any other amounts shall be due to the Executive
                     by the Company under this  Agreement.  For purposes of this
                     Agreement, the term "disability" shall mean the Executive's
                     failure  to  perform  the  services  contemplated  by  this
                     Agreement as a result of his physical or mental  illness or
                     incapacity for a period of 6 consecutive months, or a total
                     of 240 days in any 365 day period.

              (c)           The employment of the Executive is terminated by the
                     Company  for Cause,  or by the  Executive  other than under
                     circumstances described in Section 3.3(a) or (b) above, the
                     Executive shall not be entitled to compensation or benefits
                     granted hereunder beyond the date of the termination of the
                     Executive's employment.

              (d)           If,  the  Company  fails to offer  to  continue  the
                     employment  of the  Executive  in the  capacity of its Vice
                     Chairman and Chief Executive  Officer for a period of three
                     years  after  the End  Date at a Base  Salary  equal to the
                     higher (i)  $280,000.00  or (ii) 105% of the Base Salary in
                     effect  on  April  30,  2007  (the  "Final  Base  Salary"),
                     pursuant to a written  Agreement (the "Renewal  Agreement")
                     on terms and  conditions  substantially  identical  to this
                     Agreement then, in such event, the Company shall pay to the
                     Executive  in one  lump sum an  amount  equal to 50% of the
                     Final  Base  Salary.  Such  payment  shall  be  made to the
                     Executive within 10 days after April 30 2007.

              (e)           If a Change in  Control,  as  defined  in Section 7,
                     shall  occur at any time after March 31, 2004 then upon the
                     occurrence  of such Change in Control the End Date shall be
                     amended  to the date  which is two years  after the date of
                     such occurrence.

                                       4
<PAGE>

4.     PROPRIETARY INFORMATION.

       4.1    The Executive agrees that all information and know how, whether or
              not in  writing,  of a  private,  secret  or  confidential  nature
              concerning  the business or  financial  affairs of the Company and
              its  subsidiaries  (collectively,  for purposes of this Section 4,
              the "Company") and not within Executive's  possession or knowledge
              prior  to  his   employment   with  the   Company   (collectively,
              "Proprietary Information"), is and shall be the exclusive property
              of the  Company.  By  way of  illustration,  but  not  limitation,
              Proprietary   Information   may  include   inventions,   products,
              processes,  methods, techniques,  projects,  developments,  plans,
              research data,  financial data, personnel data. The Executive will
              not disclose any  Proprietary  Information  to others  outside the
              Company  or use the same  for any  unauthorized  purposes  without
              written  approval  by the  Company,  either  during  or after  his
              employment,  unless and until  such  Proprietary  Information  has
              become public knowledge without fault of the Executive.

       4.2    The Executive agrees that all files, letters, memoranda,  reports,
              records, data, sketches, drawings, or other written, photographic,
              or other tangible  material  containing  Proprietary  Information,
              whether created by the Executive or others,  which shall come into
              his custody or possession, shall be and are the exclusive property
              of the Company to be used by the Executive only in the performance
              of his duties for the Company.

       4.3    The Executive  agrees that his  obligation  not to disclose or use
              Proprietary  Information  and records of the type set forth herein
              also extends to such types of Proprietary Information, records and
              tangible property of other third parties who may have disclosed or
              entrusted  the  same to the  Company  or to the  Executive  in the
              course of the Company's' business.

5.     OTHER AGREEMENTS. The Executive hereby represents that his performance of
       all the terms of this  Agreement  and as an employee of the Company  does
       not and will not breach any agreement to keep in  confidence  proprietary
       information,  knowledge or data acquired by him in confidence or in trust
       prior to his employment with the Company.

6.     NON-COMPETITION, NON- SOLICITATION.

       6.1    Non-solicitation of Employees and Customers.  The Executive agrees
              that  during  the  term of the  Executive's  employment  with  the
              Company  and for a period of one year  thereafter,  the  Executive
              shall not directly or indirectly (i) recruit, solicit or otherwise
              induce or attempt to induce any employees of the Company or any of
              its  subsidiaries  to leave  their  employment  or (ii) call upon,

                                       5
<PAGE>

              solicit,  divert or take away,  or attempt to divert or take away,
              the  business or  patronage  of any,  customer  licensee,  vendor,
              collaborator  or  corporate  partner of the  Company or any of its
              subsidiaries that had a business  relationship with the Company or
              any of its  subsidiaries at the time of termination of Executive's
              employment  with the  Company  and that did not have a business or
              personal  relationship  or was  known  to  Executive  prior to his
              employment with the Company.

       6.2    Non-competition.  The Executive agrees that during the term of the
              Executive's  employment with the Company,  the Executive shall not
              directly or indirectly,  engage in competition with the Company or
              any  subsidiaries,  or own or control any  interest  in, or act as
              director,  officer or  employee  of, or  consultant  to, any firm,
              corporation or institution  directly  engaged in competition  with
              the Company or any of its  subsidiaries:  provided  the Company or
              one of its  subsidiaries  are actively engaged in such business at
              the time the Executive's  employment by the Company is terminated:
              and provided  that the  foregoing  shall not prevent the Executive
              from  holding  shares as a passive  investor  in a  publicly  held
              company which do not  constitute  more than 5% of the  outstanding
              shares of such company. In the event the Executive (i) voluntarily
              terminates his employment,  (including at any time on or after the
              End Date) other than  provided for in this  agreement,  or (ii) is
              terminated by the Company for Cause,  the Executive  agrees to not
              compete in the E-Learning  marketplace  until the earlier of April
              30, 2007 or one year from the date of such termination.

7.     CHANGE IN CONTROL PROTECTION.  For purposes of this Agreement,  a "Change
       in  Control"  of the  Company  shall mean a change in control of a nature
       that  would be  required  to be  reported  in  response  to Item  6(e) of
       Schedule 14A of Regulation 14A promulgated under the Securities  Exchange
       Act of 1934, as amended,  or any similar item,  schedule or form, whether
       or not the Company is then subject to such reporting requirement.

8.     MISCELLANEOUS.

       8.1    NOTICES.  All notices  required or permitted  under this Agreement
       shall be in writing and shall be deemed effective upon personal  delivery
       or upon  deposit in the United  States  Post  Office,  by  registered  or
       certified mail,  postage prepaid,  addressed if to the Executive,  at the
       address  shown  above and if to the  Company  at its  principal  place of
       business  at 12  Skyline  Drive,  Hawthorne,  New York,  or at such other
       address or  addresses  as either  party shall  designate  to the other in
       accordance with this Section 8.1.

       8.2    PRONOUNS.  Wherever the context may require,  any pronouns used in
       this Agreement  shall include the  corresponding  masculine,  feminine or
       neuter forms,

                                       6
<PAGE>

       and the singular  forms of nouns and pronouns  shall  include the plural,
       and vice versa.

       8.3    ENTIRE AGREEMENTS. This Agreement constitutes the entire agreement
       between  the   parties   and   supercedes   all  prior   agreements   and
       understandings,  whether written or oral,  relating to the subject matter
       of this Agreement.

       8.4    AMENDMENT.  This  Agreement  may be amended or modified  only by a
       written instrument executed by both the Company and the Executive.

       8.5    GOVERNING LAW. This Agreement shall be construed,  interpreted and
       enforced in accordance with the laws of the State of New York.

       8.6    SUCCESSORS AND ASSIGNS.  This Agreement  shall be binding upon and
       inure to the benefit of both parties and their respective  successors and
       assigns,  including any corporation  with which or into which the Company
       may be merged or which may succeed to its assets or  business,  provided,
       however, that the obligations of the Executive are personal and shall not
       be assigned by him.

       8.7    WAIVERS.  No delay or omission by the  Company in  exercising  any
       right under this Agreement shall operate as a waiver of that or any other
       right. A waiver or consent given by the Company on any one occasion shall
       be effective only in this instance and shall not be construed as a bar or
       waiver of any right on any other occasion.

       8.8    CAPTIONS.  The captions of the sections of this  Agreement are for
       convenience of reference  only and in no way define,  limit or affect the
       scope or substance of any section of this Agreement.

       8.9    SEVERABILITY.  In case any  provision of this  Agreement  shall be
       invalid, illegal or otherwise unenforceable,  the validity,  legality and
       enforceability of the remaining provisions shall in no way be affected or
       impaired thereby.

       8.10   SPECIFIC ENFORCEMENT. The parties acknowledge that the Executive's
       breach of the  provisions of Section 4 and 6 of this Agreement will cause
       irreparable harm to the Company.  It is agreed and acknowledged  that the
       remedy  of  damages  will not be  adequate  for the  enforcement  of such
       provisions and that such provisions may be enforced by equitable  relief,
       including  injunctive  relief,  which relief shall be  cumulative  and in
       addition to any other relief to which the Company may be entitled.

9.     ARBITRATION. Any claims, controversies,  demands, disputes or differences
between or among the parties  hereto or any persons bound hereby arising out of,
or by virtue of, or in connection with, or otherwise  relating to this Agreement
shall be

                                       7
<PAGE>

submitted to and settled by  arbitration  conducted in New York, New York before
one or three arbitrators each of which shall be knowledgeable in employment law.
Such arbitration  shall otherwise be conducted in accordance with the rules then
obtaining of the American Arbitration  Association.  The parties hereto agree to
share equally the responsibility  for all fees of the arbitrators,  abide by any
decision  rendered  as final and  binding,  and  waive  the right to appeal  the
decision  or  otherwise  submit  the  dispute  to a  court  of law for a jury or
non-jury  trial.  The parties hereto  specifically  agree that neither party may
appeal or subject the award or decision of any such  arbitrator(s)  to appeal or
review in any court of law or in  equity or by any other  tribunal,  arbitration
system or otherwise.  Judgment  upon any award granted by such an  arbitrator(s)
may be enforced in any court having  jurisdiction  thereof.  If the  arbitration
decision  holds that the Company is at fault the Executive  shall be entitled to
reimbursement  of fees and expenses  from the Company in an amount not to exceed
$50,000. If the arbitration decision holds that the Company is not at fault, the
Company  shall  be  entitled  to  reimbursement  of fees and  expenses  from the
Executive in an amount not to exceed $25,000.

IN WITNESS  WHEREOF,  the parties  hereto have executed this Agreement as of the
day and year set forth above

                                            SmartPros Ltd.

                                            By:     /s/ JOHN GAMBA
                                               ---------------------------------
                                                 Name:  JOHN GAMBA
                                                 Title: CHAIRMAN OF THE BOARD

                                                   /s/ ALLEN S. GREENE
                                               ---------------------------------
                                                       ALLEN S. GREENE

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