Document:

<PAGE>
                                                                EXHIBIT 4(f)(38)

                                 FIRST AMENDMENT
                                       TO
                      AMENDED AND RESTATED CREDIT AGREEMENT

         This FIRST AMENDMENT TO AMENDED AND RESTATED CREDIT AGREEMENT ("First
Amendment") is made as of this 8th day of March, 2002 by and among Credit
Acceptance Corporation, a Michigan corporation ("Company"), the Permitted
Borrowers signatory hereto (each, a "Permitted Borrower" and collectively, the
"Permitted Borrowers"), Comerica Bank and the other banks signatory hereto
(individually, a "Bank" and collectively, the "Banks") and Comerica Bank, as
agent for the Banks (in such capacity, "Agent").

                                    RECITALS

         A. Company, Permitted Borrowers, Agent and the Banks entered into that
certain Amended and Restated Credit Acceptance Corporation Credit Agreement
dated as of June 11, 2001 (the "Credit Agreement") under which the Banks renewed
and extended (or committed to extend) credit to the Company and the Permitted
Borrowers, as set forth therein.

         B. The Company and the Permitted Borrowers have requested that Agent
and the Banks agree to certain amendments to the Credit Agreement and Agent and
the Banks are willing to do so, but only on the terms and conditions set forth
in this First Amendment.

         NOW, THEREFORE, Company, Permitted Borrowers, Agent and the Banks
agree:

1.       (a) Section 1 of the Credit Agreement is hereby amended by amending and
         restating, or adding (as applicable), the following definitions:

         "Permitted Securitization(s)" shall mean each transfer or encumbrance
         (each a "disposition") of specific Advances to Dealers or Leased
         Vehicles funded under Back-End Dealer Agreements (and any interest in
         or lien on the Installment Contracts, Leases, motor vehicles or other
         rights relating thereto) or of specific Installment Contracts or Leases
         (and any interest in or lien on motor vehicles or other rights relating
         thereto) arising under Outright Dealer Agreements or (subject to the
         terms hereof) of Pools of such financial assets and each transfer or
         encumbrance (also, a "disposition") of a Specified Interest (and the
         reallocation of Leased Vehicles, Leases and related financial assets
         from the Non-Specified Interest to such Specified Interest in
         connection therewith), in each case by the Company or one or more of
         its Subsidiaries to a Special Purpose Subsidiary conducted in
         accordance with the following requirements:

         (a)      Each disposition shall identify with reasonable certainty the
                  specific Advances to Dealers, Leased Vehicles, Installment
                  Contracts or Leases covered by such disposition; and (x) such
                  Advances to Dealers or Leased Vehicles, and the

<PAGE>
                  Installment Contracts, Leases, motor vehicles or other rights
                  relating thereto shall have performance and other
                  characteristics so that the quality of such Advances to
                  Dealers, Leases Vehicles, Installment Contracts or Leases, as
                  the case may be, is comparable to, but not materially better
                  than, the overall quality of the Company's Advances to
                  Dealers, Leased Vehicles, Installment Contracts or Leases, as
                  applicable, as determined in good faith by the Company in its
                  reasonable discretion or (y) with respect to any such assets
                  assigned to an uncapped Pool subsequent to such Pool becoming
                  a Securitized Pool in conformity with the standards set forth
                  in clause (x) of this subparagraph (a), the assets covered by
                  such dispositions were assigned to such Pool in the order such
                  assets were originated and without the exercise of any
                  discretion by the Company;

         (b)      Both before and after giving effect to such disposition (and
                  taking into account any reduction in the Indebtedness with the
                  proceeds of such disposition as required hereunder), the
                  Company shall be in compliance with the Borrowing Base
                  Limitation;

         (c)      Each such Securitization Transaction shall be structured on
                  the basis of the issuance of Debt or other similar securities
                  by the Special Purpose Subsidiary which shall be without
                  recourse, except to the extent of normal and customary
                  representations and warranties given as of the date of each
                  such disposition, and not as continuing representations and
                  warranties, and otherwise on normal and customary terms and
                  conditions for comparable asset-based securitization
                  transactions, which may include Cleanup Call provisions (it
                  being understood that, for purposes of this subparagraph (c),
                  the terms and conditions governing Securitization Transactions
                  made by the Company prior to January 1, 2002 shall be deemed
                  to have been made on normal and customary terms and
                  conditions);

         (d)      Concurrently with each such disposition (except for
                  dispositions to an uncapped Securitized Pool pursuant to a
                  revolving, expansion or relending feature included in a Prior
                  Securitization (for purposes of this definition, a "Revolving
                  Feature") after the expiration in the ordinary course, and not
                  as a result of any failure of a covenant or condition, early
                  termination, default or similar event, of the period during
                  which additional loans or advances are available under such
                  Revolving Feature (for purposes of this definition, a
                  "Post-Revolving Period Disposition"), to the extent that no
                  disposition proceeds are available as a result of such
                  dispositions for application hereunder), the net proceeds of
                  such disposition:

                           shall be applied to reduce the principal balance
                           outstanding under the Revolving Credit (to the extent
                           then outstanding, and including the aggregate amount
                           of drawings made under any Letter of Credit for which
                           the Agent has not received full payment) by the
                           amount of such net proceeds, subject to the right to
                           reborrow in accordance with this Agreement;

                           provided, however, that to the extent that, on the
                           date any reduction of the

                                       2

<PAGE>
                           principal balance outstanding under the Revolving
                           Credit shall be required under this clause (d), the
                           Indebtedness under the Revolving Credit is being
                           carried, in whole or in part, at the Euro
                           Currency-based Rate and no Default or Event of
                           Default has occurred and is continuing, the Company
                           may, after prepaying that portion of the Indebtedness
                           then carried at the Prime-based Rate, deposit the
                           amount of such required principal reductions in a
                           cash collateral account to be held by the Agent, for
                           and on behalf of the Banks (which shall be an
                           interest-bearing account), on such terms and
                           conditions as are reasonably acceptable to Agent and
                           the Majority Banks and, subject to the terms and
                           conditions of such cash collateral account, sums on
                           deposit therein shall be applied (until exhausted) to
                           reduce the principal balance of the revolving credit
                           on the last day of each Interest Period attributable
                           to the applicable Eurocurrency-based Advances of the
                           Revolving Credit; and

         (e)      Both immediately before and after such disposition, no Default
                  or Event of Default (whether or not related to such
                  disposition) has occurred and is continuing.

         In connection with each Permitted Securitization to be conducted
         hereunder, the Company shall provide the following:

         (i)      to the Agent, (x) not less than three (3) Business Days prior
                  to the date of consummation thereof (or such lesser period as
                  approved by Agent) or (y) solely in the case of dispositions
                  to uncapped Securitized Pools pursuant to a Revolving Feature,
                  not less than three (3) Business Days prior to the date of the
                  release of the financial assets covered by such disposition
                  (or such lesser period as approved by Agent), (I) a
                  certification that, after giving effect to such disposition,
                  it will be in compliance with the Borrowing Base Limitation
                  and that none of the assets covered by such disposition were
                  included in the most recent quarterly Borrowing Base
                  Certificate delivered to Agent under Section 7.3(d) hereof
                  prior to such disposition or (II) a new Borrowing Base
                  Certificate (and any supporting information reasonably
                  required by the Agent) dated as of the proposed date of the
                  applicable disposition or release and, based on projected
                  information, giving effect to such disposition and confirming
                  compliance with the Borrowing Base Limitation;

         (ii)     to the Agent and the Banks (x) not less than five (5) Business
                  Days prior to the date of consummation thereof (or such lesser
                  period as approved by Agent), proposed drafts of the material
                  Securitization Documents covering the applicable
                  Securitization Transaction (and the term sheet or commitment
                  relating thereto) and (y) within ten (10) Business Days
                  following the consummation thereof, executed copies of such
                  Securitization Documents, including, if applicable, a summary
                  of any material changes from the draft documents delivered to
                  Agent and the Banks prior thereto, except that if such
                  Securitization Transaction consists solely of dispositions
                  pursuant to a Revolving Feature, the Company shall only be

                                       3
<PAGE>
                  required (I) under clause (x) of this subparagraph (ii), to
                  deliver to Agent, not less than three (3) Business Days prior
                  to the consummation thereof (or such lesser period as approved
                  by Agent), a certification that the applicable Securitization
                  Documents remain in effect substantially in the form
                  previously furnished to Agent and the Banks (or identifying
                  any material changes, and attaching any proposed amendment,
                  supplement or other document delivered under such prior
                  Securitization Documents to effect such dispositions) and (II)
                  under clause (y) of this subparagraph (ii), to deliver to
                  Agent executed copies of any such amendment, supplement or
                  other document; and

         (iii)    to the Agent, (x) not less than three (3) Business Days prior
                  to the date of consummation thereof (or such lesser period as
                  approved by Agent) or (y) solely in the case of dispositions
                  to uncapped Securitized Pools pursuant to a Revolving Feature,
                  not less than three (3) Business Days prior to the date of the
                  requested release of the financial assets covered by such
                  dispositions (or such lesser period as approved by Agent), (I)
                  a schedule in the form attached hereto as Exhibit [Q]
                  identifying the specific Advances to Dealers or Leased
                  Vehicles and the related Installment Contracts or Leases
                  proposed to be covered by such transaction, accompanied by
                  (II) a request that the Agent release such assets from the
                  Lien of the Security Agreement and a certification that the
                  proposed Securitization Transaction (and related dispositions)
                  constitutes a Permitted Securitization hereunder, whereupon
                  the financial assets covered by such dispositions which have
                  been originated prior to the date of such release shall be
                  promptly released by Agent, provided that in the case of a
                  Post-Revolving Period Disposition, all remaining financial
                  assets assigned thereafter to the applicable uncapped
                  Securitized Pool in the ordinary course, whether originated
                  before or after the date of release, shall be so released and
                  the Lien of the Security Agreement shall not attach to any
                  such assets when the Company or any of its Subsidiaries
                  subsequently acquires rights in, to or under such assets; and

         (iv)     only if the applicable Securitization Transaction is not
                  related to a Prior Securitization or involves the disposition
                  or release of any assets which were covered by the most recent
                  quarterly Borrowing Base Certificate delivered to Agent under
                  Section 7.3(d) hereof and the aggregate net book value of the
                  Advances to Dealers or Leased Vehicles covered by such
                  dispositions (or related series of dispositions) in any
                  calendar month exceeds or would exceed (after giving effect to
                  any proposed disposition) Seven Million Five Hundred Thousand
                  Dollars ($7,500,000), collection information regarding the
                  related Installment Contracts or Leases proposed to be covered
                  by such transaction (with evidence supporting its
                  determination under clause (x) of subparagraph (a) of this
                  definition, if applicable, including without limitation a
                  "static pool analysis" comparable to the static pool analysis
                  required to be delivered under Section 7.3(c) hereof with
                  respect to such Installment Contracts or Leases).

                                       4

<PAGE>
         "Pools" shall mean a grouping on the books and records of the Company
         or any of its Subsidiaries of Advances to Dealers, Leased Vehicles,
         Installment Contracts or Leases originated or to be originated with the
         Company or any of its Subsidiaries by a Dealer and bearing the same
         pool identification number assigned by the Company's computer system,
         with (x) an "uncapped" Pool being a Pool which is not reflected on such
         books and records as capped and to which additional Advances to
         Dealers, Leases and related financial assets may be added and (y) a
         Pool being capped when the number of the applicable financial assets in
         such Pool has reached the limit established from time to time by
         written agreement between the relevant Dealer and the Company or
         Subsidiary, as applicable, in the ordinary course of business, such
         that no further financial assets may be added to such Pool.

         "Prior Securitization" shall mean a Permitted Securitization (and the
         related Securitization Documents) consummated under the Credit
         Agreement prior to the particular disposition, release or other
         transaction then being considered.

         "Revolving Credit Maximum Amount" shall mean One Hundred Thirty Five
         Million Dollars ($135,000,000), subject to any increases in the
         Revolving Credit Maximum Amount pursuant to Section 2.18 of this
         Agreement, by an amount not to exceed the Revolving Credit Optional
         Increase, and subject to any reductions or termination of the Revolving
         Credit Maximum Amount under Sections 2.15 or 9.2 of this Agreement.

         "Revolving Credit Optional Increase" shall mean an amount up to Forty
         Million Dollars ($40,000,000), minus the portions thereof applied from
         time to time under Section 2.18 hereof to increase the Revolving Credit
         Maximum Amount.

         "Securitized Pool(s)" shall mean a Pool, whether capped or uncapped,
         which has been transferred to a Permitted Securitization, including a
         Prior Securitization.

         (b) Section 1 of the Credit Agreement is further amended by amending
         the following definitions in the manner set forth below:

         "Advances to Dealers" is amended by adding to the sixth line thereof
         (following the words "provided that"), the words ", for purposes of the
         definition of Collateral determining the Borrowing Base and compliance
         with the covenants under Section 7.4 through 7.7 and 7.17 hereof," and
         by adding to the end of the seventh line thereof (after the words
         "Permitted Securitization"), the words "or assigned to a Securitized
         Pool".

         "Leased Vehicle" is amended by adding to the seventh line thereof
         (following the words "provided that"), the words "for purposes of the
         definition of Collateral determining the Borrowing Base and compliance
         with the covenants under Section 7.4 through 7.7 and 7.17 hereof," and
         by adding to the tenth line thereof (following the words "Permitted
         Securitization") the words "or assigned to a Securitized Pool".

2.       Section 8 of the Credit Agreement is amended as follows:

                                       5

<PAGE>

(a)      Section 8.5(h) is amended and restated in its entirety, as follows:

                  (h) non-recourse Debt incurred by a Special Purpose Subsidiary
         and secured by assets transferred pursuant to a Permitted
         Securitization, whether or not attributable to the Company under GAAP;

(b)      Section 8.16 is amended and restated in its entirety, as follows:

                  8.16 Securitization Transaction; Amendments to Securitization
         Documents. Engage in a Securitization Transaction, other than a
         Permitted Securitization and, except in connection with a Permitted
         Securitization, assign and transfer any financial assets to a
         Securitized Pool or allocate or reallocate Leases, Leased Vehicles or
         other financial assets to a Specified Interest, and once executed and
         delivered pursuant to a Permitted Securitization, amend, modify or
         otherwise alter any of the material terms and conditions of any
         Securitization Documents or waive (or permit to be waived) any such
         provision thereof in any material respect, adverse to the Company or
         any Subsidiary, without the prior written approval of Agent and the
         Majority Banks. For purposes of the Securitization Documents, the
         "material terms and conditions" thereof shall be deemed solely those
         terms or conditions with respect to servicer fees, servicer expenses,
         defaults, events of default, recourse to the Company or any Subsidiary
         (other than a Special Purpose Subsidiary), Cleanup Calls or conditions
         contained therein which are required under or necessary for compliance
         with this Agreement.

3.       Replacement Exhibit Q (Form of Schedule of Financial Assets for
         Release) to the Credit Agreement set forth on Attachment 1 hereto shall
         replace, in its entirety, existing Exhibit Q to the Credit Agreement.

4.       This First Amendment shall become effective, according to the terms and
         as of the date hereof, upon satisfaction by the Company and the
         Permitted Borrowers of the following conditions:

         (a)      Agent shall have received counterpart originals of this First
                  Amendment, in each case duly executed and delivered by
                  Company, the Permitted Borrowers and the requisite Banks, in
                  form satisfactory to Agent and the Banks; and

         (b)      Agent shall have received from the Company and each of the
                  Permitted Borrowers a certification (i) that all necessary
                  actions have been taken by such parties to authorize execution
                  and delivery of this First Amendment, supported by such
                  resolutions or other evidence of corporate authority or action
                  as reasonably required by Agent and the Majority Banks and
                  that no consents or other authorizations of any third parties
                  are required in connection therewith; and (ii) that, after
                  giving effect to this First Amendment, no Default or Event of
                  Default

                                       6

<PAGE>
                  has occurred and is continuing on the proposed effective date
                  of the First Amendment.

                  If the foregoing conditions have not been satisfied or waived
                  on or before March 8, 2002, this First Amendment shall lapse
                  and be of no further force and effect.

5.       Each of the Company and the Permitted Borrowers ratifies and confirms,
         as of the date hereof and after giving effect to the amendments
         contained herein, each of the representations and warranties set forth
         in Sections 6.1 through 6.21, inclusive, of the Credit Agreement and
         acknowledges that such representations and warranties are and shall
         remain continuing representations and warranties during the entire life
         of the Credit Agreement.

6.       Except as specifically set forth above, this First Amendment shall not
         be deemed to amend or alter in any respect the terms and conditions of
         the Credit Agreement, any of the Notes issued thereunder or any of the
         other Loan Documents, or to constitute a waiver by the Banks or Agent
         of any right or remedy under or a consent to any transaction not
         meeting the terms and conditions of the Credit Agreement, any of the
         Notes issued thereunder or any of the other Loan Documents.

7.       Unless otherwise defined to the contrary herein, all capitalized terms
         used in this First Amendment shall have the meaning set forth in the
         Credit Agreement.

8.       This First Amendment may be executed in counterpart in accordance with
         Section 13.10 of the Credit Agreement.

9.       Comerica Bank - Canada having been designated by Comerica Bank, in its
         capacity as Swing Line Bank (and as a Bank) under the Credit Agreement
         to fund Comerica Bank's advances in $C pursuant to Section 11.12 of the
         Credit Agreement, has executed this First Amendment to evidence its
         approval of the terms and conditions thereof.

10.      This First Amendment shall be construed in accordance with and governed
         by the laws of the State of Michigan.

                    [SIGNATURES FOLLOW ON SUCCEEDING PAGES]

                                       7

<PAGE>

         WITNESS the due execution hereof as of the day and year first above
written.

COMERICA BANK,                    CREDIT ACCEPTANCE
  as Agent                        CORPORATION

By: /S/ Caryn Dorfman             By: /S/ Douglas W. Busk
    ----------------------------     --------------------

Its: Assistant Vice President     Its:  CFO and Treasurer
     ---------------------------        -----------------
One Detroit Center
500 Woodward Avenue
Detroit, Michigan 48226
Attention: Caryn Dorfman

COMERICA BANK - CANADA            CREDIT ACCEPTANCE
                                  CORPORATION UK LIMITED

By: /S/ Robert Rosen              By: /S/ Brett A. Roberts  /S/ Douglas W. Busk
    ----------------------------     ---------------------- -------------------

Its:  Vice President              Its: CFO & Director       Treasurer & Director
      --------------------------       --------------       --------------------

                                  CAC OF CANADA LIMITED

                                  By: /S/ Douglas W. Busk
                                      -------------------
                                  Its: CFO and Treasurer
                                       ------------------

                                  CREDIT ACCEPTANCE
                                  CORPORATION IRELAND LIMITED

                                  By: /S/ Brett A. Roberts  /S/ Douglas W. Busk
                                      --------------------  -------------------
                                  Its: CFO & Director       Treasurer & Director
                                       --------------       --------------------
<PAGE>

BANKS:

COMERICA BANK                     M&I MARSHALL & ILSLEY BANK,
                                  formerly known as National City Bank of
                                  Minneapolis

By: /S/ Caryn Dorfman             By: /S/ Steve Berglund
    ----------------------------      ------------------

Its: Assistant Vice President     Its:  Vice President

LASALLE BANK NATIONAL             BANK OF AMERICA, N.A.
ASSOCIATION

By: /S/ Daniel Garcas             By: /S/ Sherry K. Harper
    ----------------------------      --------------------

                                  Its:  Principal
Its: Assistant Vice President

                                  NATIONAL CITY BANK OF
HARRIS TRUST AND SAVINGS BANK     MICHIGAN/ILLINOIS

By: /S/ Michael Cameli            By: /S/ Kenneth R. Ehrhardt
    ----------------------------      -----------------------

Its:  Vice President              Its:  Senior Vice President
      --------------------------        ---------------------

FIFTH THIRD BANK (EASTERN MICHIGAN)

By:  /S/ Mike Dolson
     -------------------------------------

Its: Vice President
     -------------------------------------<PAGE>
                                                                   EXHIBIT 10.0

                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT, made and entered into as of May 1, 2002 (the "Effective
Date"), by and between Ronald Sharp Elder (the "Executive") and Omega Worldwide,
Inc. (the "Company");

                                WITNESSETH THAT:

         WHEREAS, beginning January 2, 2002, the Executive provided services to
the Company as a consultant, and the parties have agreed that the Executive's
relationship and responsibilities shall be modified as of the Employment
Commencement Date, as reflected in this Agreement, pertaining to the employment
of the Executive by the Company;

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
set forth below, it is hereby covenanted and agreed by the Executive and the
Company as follows:

         1. Performance of Services. The Executive's employment with the Company
shall be subject to the following:

(a)      Subject to the terms of this Agreement, the Company hereby agrees to
         employ the Executive as its Chief Executive Officer during the
         Agreement Term (as defined below), and the Executive hereby agrees to
         remain in the employ of the Company during the Agreement Term. This
         Agreement does not constitute a guarantee of continued employment but
         instead provides for certain rights and benefits for the Executive
         during his employment, and in the event his employment with the Company
         terminates under the circumstances described herein.

(b)      During the Agreement Term, while he is employed by the Company, the
         Executive shall be a member of the Board of Directors of the Company
         (the "Board") and of such Affiliates as the Board may require from time
         to time. The Executive shall resign without claim for compensation from
         office as a director of any such Affiliates (excluding the Company
         prior to the Executive's Date of Termination) at any time on request by
         the Company, which resignation shall not effect the continuance in any
         way of this Agreement unless such request constitutes Constructive
         Discharge pursuant to paragraph 3(d).

(c)      During the Agreement Term, while the Executive is employed by the
         Company, the Executive shall devote his full time, energies and talents
         to serving as its Chief Executive Officer and use his reasonable
         endeavors to promote and protect the interests of the Company and its
         Affiliates. The Executive's principal place of work shall be the
         offices of the Company in the London, England metropolitan area. The
         Executive may be required to travel both inside and outside the UK on
         the business of the Company or the Affiliates.

(d)      The Executive agrees that he shall perform his duties faithfully and
         efficiently and in accordance with the directions of the Board. The
         Executive's duties may include providing services for both the Company
         and the Affiliates (as defined below), as

                                       1

<PAGE>

         determined by the Board; provided that the Executive shall not, without
         his consent, be assigned tasks that would be inconsistent with those of
         Chief Executive Officer. The Executive shall report to the Board and
         shall have such authority, power, responsibilities and duties as are
         assigned to him by the Board or are inherent in his positions (and the
         undertakings applicable to his positions) and necessary to carry out
         his responsibilities and the duties required of him hereunder.

(e)      Notwithstanding the foregoing provisions of this paragraph 1, during
         the Agreement Term, the Executive may devote reasonable time to
         activities other than those required under this Agreement, including
         the supervision of his personal investments, and activities involving
         professional, charitable, community, educational, religious and similar
         types of organizations, speaking engagements, membership on the boards
         of directors of other organizations, and similar types of activities,
         to the extent that such other activities do not, in the judgment of the
         Board, inhibit or prohibit the performance of the Executive's duties
         under this Agreement, or conflict in any material way with the business
         of the Company or any Affiliate; provided, however, that the Executive
         shall not serve on the board of any business, hold any other position
         with any business, or otherwise engage in any business activity,
         without the prior written consent of the Board.

(f)      Subject to the terms of this Agreement, the Executive shall not be
         required to perform services under this Agreement during any period
         that he is Incapacitated. The Executive shall be considered
         "Incapacitated" during any period in which he is prevented by ill
         health or accident, after reasonable accommodation, from performing his
         duties under this Agreement. In the event of a dispute as to whether
         the Executive is Incapacitated or Permanently Incapacitated, the
         Company may refer the same to a licensed practicing physician of the
         Company's choice, and the Executive agrees to submit to such tests and
         examinations as such physician shall deem appropriate. During the
         period in which the Executive is Incapacitated, the Company may appoint
         a temporary replacement to assume the Executive's responsibilities.

(g)      The "Agreement Term" shall be the period beginning on February 10, 2002
         (the "Employment Commencement Date") and ending on December 31, 2003.
         Thereafter, as of the date the Agreement Term (as it may be extended
         from time to time under this paragraph) would otherwise end, the
         Agreement Term will be automatically extended for 12 months, unless one
         party to this Agreement provides notice of non-renewal to the other at
         least 90 days before the day that would be the last day of the
         Agreement Term in the absence of such renewal.

(h)      For purposes of this Agreement, the term "Affiliate" means a company
         which is the Company's subsidiary, subsidiary undertaking or holding
         company, or a company which is a subsidiary or subsidiary undertaking
         of that holding company. In this Agreement, where the context admits,
         words and phrases, the definitions of which are contained or referred
         to in Part XXVI of the Companies Act 1985, shall be construed as having
         the meanings so attributed to them.

                                       2

<PAGE>

         2. Compensation. Subject to the terms of this Agreement, during the
Agreement Term, while the Executive is employed by the Company, the Company
shall compensate him for his services as follows:

(a)      Salary. The Executive shall receive, for the period beginning on the
         Employment Commencement Date and ending on December 31, 2002, and for
         each calendar year thereafter, in substantially equal monthly or more
         frequent installments, a base salary at an annual rate of not less than
         (pound) 300,000 (the "Salary") (less such deductions as the Company may
         be obliged to deduct in respect of tax and national insurance
         contributions) which shall be deemed to accrue from day to day. Such
         salary shall include any director's fees payable to the Executive. The
         Executive's Salary rate shall be reviewed upwards only by the Board in
         December of each year during the Agreement Term and thereafter if the
         Agreement Term is extended, while the Executive is employed by the
         Company, to determine whether an increase in the amount of Salary is
         appropriate. In no event shall the Salary of the Executive be reduced
         to an amount that is less than the amount specified in this paragraph
         (a), or to an amount that is less than the amount that he was
         previously receiving, except to the extent that in exceptional
         circumstances reductions of the same percentage are being made at the
         same time to the salaries of all other Company officers in the
         corporate office at or above the vice-president level, and such Salary
         shall be restored to its prior level when, and to the same extent, as
         the restoration that applies to the other officers.

(b)      Initial Bonus. For the period ending June 30, 2002, the Executive may
         be granted a bonus in such amount, if any, determined by the Board in
         its absolute discretion, not to exceed (pound) 200,000, based on
         accomplishment, with respect to the Company, of strategic initiatives,
         development and employment of capital and resources, market valuation,
         public image and recognition, as well as financial results and
         projections in the following categories: earnings, revenue, operating
         costs, and growth, and such other factors as the Board determines to be
         pertinent. The Executive's rights in accordance with the foregoing
         provisions of this paragraph (b) shall be subject to the following:

         (i) The Executive shall be entitled to a bonus under the foregoing
         provisions of this paragraph (b) of (pound) 100,000 if, while the
         Executive is employed by the Company and prior to June 30, 2002, the
         Company enters into a legally binding contract which provides for the
         sale of substantially all of the stock of the Company or substantially
         all of the assets of the Company to a party that is not an Affiliate.
         To the extent this portion of the bonus has been earned in accordance
         with the preceding sentence, it shall be paid not later than five
         business days after the Company enters into a legally binding contract
         that has been approved by the Board.

         (ii) The Executive shall be entitled to the remaining (pound) 100,000
         portion of the bonus under this paragraph (b) if the transaction
         contemplated by the contract described in paragraph (i) above is
         ultimately consummated either while the Executive is employed by the
         Company or thereafter. Payment of this portion of the bonus shall be
         made not later than five business days after the ultimate consummation
         of the said contract.

                                       3

<PAGE>

         In no event, however, shall the Executive be entitled to an amount that
         is greater than (pound) 200,000 under this paragraph (b).

(c)      Annual Bonus. In addition to eligibility for the bonus described in
         paragraph (b) above, the Executive shall participate in an annual bonus
         program. The bonus program shall provide for a maximum bonus amount of
         50% of the Executive's annual salary if the maximum goals for the
         performance period are achieved, and shall provide for an annual bonus
         amount of not less than 30% of the Executive's annual salary if the
         target goals for the performance period are achieved. The amount of
         bonus (if any) shall be determined by the Board in its absolute
         discretion. The performance goals shall be established by the Board
         after consultation with the Executive. The first performance period for
         which the Executive shall be eligible for a bonus under this paragraph
         (c) shall be calendar year 2002.

(d)      Options. As soon as practicable after the full execution of this
         Agreement, the Executive shall be granted a stock option covering
         75,000 shares of Company stock, with an option exercise price equal to
         the fair market value of the Company's stock on the grant date. It is
         understood by the parties that shares of Company stock reserved under
         the 1997 Stock Option and Restricted Stock Plan may not be sufficient
         to permit the Company to fulfill the Company's obligation under the
         foregoing provisions of this paragraph (d). If the Company is unable,
         within a reasonable time, to make the grant required under the
         foregoing provisions of this paragraph (d), the Company shall grant an
         award (a stock appreciation right) to the Executive which shall provide
         the value to the Executive that is equivalent to the value that would
         otherwise be provided to the Executive by the Options required under
         the foregoing provisions of this paragraph (d). If an equivalent award
         is made in accordance with the preceding sentence, such award shall
         provide the value that would have been provided under the Options if
         the Options had been granted as of April 15, 2002. For years after
         2002, the Executive shall be granted stock options at such times as
         options are granted to the Company's other senior executives in the
         corporate office at or above the vice-president level. Stock option
         grants shall be subject to such terms, and shall cover a number of
         shares, as are comparable to the terms of, and number of shares covered
         by options granted to the Company's other senior executives in the
         corporate office at or above the vice-president level from time to
         time, with the number of shares to be adjusted in a manner that
         reflects the Executive's position compared with others receiving option
         grants.

(e)      Expenses. The Executive is authorized to incur reasonable expenses for
         entertainment, traveling, meals, lodging and similar items in promoting
         the Company's business. The Company will reimburse the Executive for
         all reasonable expenses so incurred, provided that such expenses are
         incurred and accounted for in accordance with the reasonable policies
         and procedures established by the Company.

(f)      Automobile. The Company shall pay the Executive a car allowance
         of (pound) 22,000 per year (less such deductions as the Company is
         obliged to make in respect of tax and national insurance
         contributions). The Executive shall be responsible for payment of all
         insurance, maintenance, repair, fuel for personal use, and other costs
         associated with the

                                       4

<PAGE>

         ownership and use of the automobile for both personal and business
         purposes, without further reimbursement by the Company. The allowance
         under this paragraph (f) shall be paid monthly in the same manner on
         the salary referred to in paragraph 2(a). Notwithstanding the foregoing
         provisions of this paragraph (e), the Executive shall also be
         reimbursed for his actual automobile fuel costs incurred for business
         purposes.

(g)      Vacation. The Executive shall be eligible for 25 days paid vacation per
         calendar year (in addition to public and bank holidays). In the absence
         of the Board's agreement, holiday must be taken in the calendar year in
         which it accrues. Upon the termination of the Executive's employment
         under this Agreement, the Company shall be entitled to deduct from any
         sum owed by the Company to the Executive a sum representing over
         payment of salary in respect of holiday which the Executive has taken
         in excess of his accrued holiday entitlement as at the date of the
         termination of his employment and the Executive hereby authorises the
         Company pursuant to the Employment Rights Act 1996 to make such
         deduction. Upon the termination of this Agreement, the Executive shall
         be entitled to a payment in lieu of any untaken outstanding holiday
         entitlement in the calendar year during which his employment
         terminates. For the purposes of calculation of holiday entitlement
         under this paragraph (g), holiday entitlement shall be taken to accrue
         at the rate of 2 days per completed month in a calendar year and
         payments in lieu of or deductions in respect of holidays shall be
         calculated as 1/365th of the Executive's salary for each day's holiday.

(h)      Indemnification. If the Executive incurs liability by reason of actions
         taken by him in good faith on behalf of the Company while he was
         employed by the Company, or while acting as a director, he shall be
         indemnified by the Company to the full extent of any liability to the
         extent permitted by law.

(i)      Other Fringe Benefits. Except as otherwise specifically provided to the
         contrary in this Agreement, the Executive shall be provided with the
         welfare benefits and other fringe benefits, including private medical
         insurance, life assurance and permanent health insurance, to the same
         extent and on the same terms as those benefits are provided by the
         Company from time to time to the Company's other senior management
         employees. The Executives' entitlement to such benefits shall be
         subject to the rules of the relevant scheme(s) from time to time.
         However, the Company shall not be required to provide a benefit under
         this paragraph (i) if such benefit would duplicate (or otherwise be of
         the same type as) a benefit specifically required to be provided under
         another provision of this Agreement. The Executive shall complete all
         forms and physical examinations, and otherwise take all other similar
         actions to secure coverage and benefits described in this paragraph 2,
         to the extent determined to be necessary or appropriate by the Company.

(j)      Currency. Except as otherwise indicated in this Agreement, all
         references in this Agreement to pounds (pound) refer to British pounds
         sterling.

(k)      Consulting Period. The parties to this Agreement agree that the
         Executive has been fully compensated for the consulting services
         rendered during the period beginning on January 2, 2002, and ending
         immediately prior to the Employment Commencement Date, and the

                                       5

<PAGE>

         Executive is entitled to no further compensation for such period, save
         that work carried out during this period will be considered by the
         Board in determining the amount of bonus (if any) to be paid under
         paragraph 2(c).

(l)      Sick Pay. Subject to paragraph 2(m), when the Executive is absent from
         work and unable to perform his duties under this Agreement
         satisfactorily by reason of any injury, illness or other reason
         satisfactory to the Company, he shall be entitled to receive his salary
         and other benefits for up to 60 working days during any such absence in
         any period of 12 consecutive months.

(m)      Sick Pay Conditions. Once the Executive has been absent for a total of
         60 working days in any period of 12 consecutive months, the Executive
         shall have no entitlement to salary or any other benefits provided
         under this Agreement until after the Executive has returned to work and
         remained at work for 1 month. Once the Executive has exhausted his
         entitlement to salary and other benefits under paragraph 2(l), the
         Executive shall receive such benefits (if any) as are available to the
         Executive under the provisions from time to time in force of any
         permanent health insurance scheme of the Company or, if no such
         benefits are available, he shall receive such sum or sums as the Board
         may, in its absolute discretion, decide. Any salary payable pursuant to
         paragraph 2(l) shall be adjusted by the amount of any benefit or
         statutory sick pay to which the Executive may be entitled during the
         period of such inability under any national insurance scheme or
         statutory sick pay scheme for the time being in force.

(n)      The Company will reimburse the Executive for the reasonable attorney
         fees incurred in connection with the negotiation of this Agreement, not
         to exceed (pound) 9,500 (plus VAT).

         3. Termination. The Executive's employment with the Company during the
Agreement Term may be terminated by the Company or the Executive without any
breach of this Agreement only under the circumstances described in paragraphs
3(a) through 3(f):

(a)      Death. The Executive's employment hereunder will terminate upon his
         death.

(b)      Permanent Disability. The Executive shall be considered "Permanently
         Incapacitated" during any period in which he is considered to have a
         "disability" under the long-term disability plan, policy, or
         arrangement maintained by the Company for the Executive. The Company
         may terminate the Executive's employment with immediate effect when the
         Executive becomes entitled to receive payments pursuant to the
         permanent health insurance policy referred to under paragraph 2(i) (or
         other comparable plan or arrangement maintained for the benefit of the
         Executive).

(c)      Cause. The Company may terminate the Executive's employment hereunder
         at any time for Cause. For purposes of this Agreement, the term "Cause"
         shall mean:

         (i) the continued failure by the Executive to substantially perform his
         duties with the Company (other than any such failure resulting from the
         Executive's being Incapacitated), within a reasonable period of time
         after a written demand for substantial

                                       6
<PAGE>

         performance is delivered to the Executive by the Board, which demand
         specifically identifies the manner in which the Board believes that the
         Executive has not substantially performed his duties;

         (ii) the commission by the Executive of any serious or repeated or
         continual breach of any of his obligations under this Agreement;

         (iii) the engaging by the Executive in conduct which is materially
         prejudicial to the Company or the Affiliates, monetarily or otherwise;
         or

         (iv) the engaging by the Executive in serious misconduct or the
         conviction of the Executive of any criminal offence to the extent that,
         in the reasonable judgment of the Company's Board, the Executive's
         credibility and reputation no longer conform to the standard of the
         Company's executives;

         (v) the making of a bankruptcy order against the Executive or if he
         makes any arrangement or composition with his creditors or has an
         interim order made against him pursuant to section 252 of the
         Insolvency Act 1986;

         (vi) the Executive becoming of unsound mind or a patient for the
         purpose of any statute relating to mental health;

         (vii) the conviction of the Executive of any offence under any present
         or future statutory enactment or regulation relating to insider
         dealings; or

         (viii) the Executive becoming prohibited by law from being a director.

(d)      Constructive Discharge. Prior to the Executive making a claim for
         constructive discharge against the Company, he shall give the Company
         such reasonable time as is in the circumstances appropriate by way of
         written notice to remedy any complaint he may have. Should the Company
         fail to address his complaints or address them inadequately, then the
         Executive may in such circumstances resign without notice. Events
         giving rise to a claim for constructive discharge shall be the
         occurrence of any of the following circumstances.

         (i) the failure of the Board to re-elect the Executive to the position
         of Chief Executive Officer or a failure to re-elect the Executive to
         the Board (provided that a failure to be reelected to the Board shall
         not be a basis for Constructive Discharge if, as soon as reasonably
         practicable, but in no event more than 30 days, after the failure of
         such reelection, the Executive is reelected or appointed to the Board);

         (ii) the assignment to the Executive of duties or work responsibilities
         which are inconsistent with his title, position, authority or
         responsibility;

         (iii) a change in the Executive's reporting relationship so that he no
         longer reports directly to the Board;

                                       7

<PAGE>
         (iv) the relocation of the Company's headquarters or the primary place
         at which the Executive is to perform his duties to a location more than
         fifty (50) miles from the location at which the Executive previously
         performed his duties;

         (v) the occurrence of a complete liquidation or dissolution of the
         Company; or

         (vi) any other material breach of this Agreement by the Company

(e)      Termination by Executive. The Executive may terminate his employment
         hereunder at any time for any reason by giving the Company prior
         written Notice of Termination (as defined in paragraph 3(g)), which
         Notice of Termination shall be effective not less than 60 days after it
         is given to the Company, provided that nothing in this Agreement shall
         require the Executive to specify a reason for any such termination.
         However, to the extent that the procedures specified in paragraph 3(d)
         are required, the procedures of this paragraph 3(e) may not be used in
         lieu of the procedures required under paragraph 3(d).

(f)      Termination by Company. The Company may terminate the Executive's
         employment hereunder at any time for any reason, by giving the
         Executive prior written Notice of Termination, which Notice of
         Termination shall be effective immediately, or such later time as is
         specified in such notice. The Company shall not be required to specify
         a reason for the termination under this paragraph 3(f), provided that
         termination of the Executive's employment by the Company shall be
         deemed to have occurred under this paragraph (f) only if it is not for
         reasons described in paragraph 3(b), 3(c), 3(d), or 3(e).
         Notwithstanding the foregoing provisions of this paragraph (f), if the
         Executive's employment is terminated by the Company in accordance with
         this paragraph (f), and within a reasonable time period thereafter, it
         is determined by the Board that circumstances existed which would have
         constituted a basis for termination of the Executive's employment for
         Cause in accordance with paragraph 3(c) (disregarding circumstances
         which could have been remedied if notice had been given in accordance
         with paragraph 3(c)(i)), the Executive's employment will be deemed to
         have been terminated for Cause in accordance with paragraph 3(c).

(g)      Notice of Termination. Any termination of the Executive's employment by
         the Company or the Executive (other than a termination pursuant to
         paragraph 3(a)) must be communicated by a written Notice of Termination
         to the other party hereto. For purposes of this Agreement, a "Notice of
         Termination" means a dated notice which indicates the Date of
         Termination (not earlier than the date on which the notice is
         provided), and which indicates the specific termination provision in
         this Agreement relied on and which sets forth in reasonable detail the
         facts and circumstances, if any, claimed to provide a basis for
         termination of the Executive's employment under the provision so
         indicated.

(h)      Date of Termination. "Date of Termination" means the last day the
         Executive is employed by the Company (including any successor to the
         Company as determined in accordance with paragraph 18). If the
         Executive becomes employed by the entity into which the Company is
         merged, or the purchaser of substantially all of the assets of the
         Company, or a successor to such entity or purchaser, the Executive
         shall not be treated as

                                       8

<PAGE>

         having terminated employment for purposes of this Agreement until such
         time as the Executive terminates employment with the successor
         (including, without limitation, the merged entity or purchaser). If the
         Executive is transferred to employment with the Company (including a
         successor to the Company) or an Affiliate, such transfer shall not
         constitute a termination of employment for purposes of this Agreement.

(i)      Effect of Termination. If, on the Date of Termination, the Executive is
         a member of the Board of Directors of the Company or any of the
         Affiliates, or holds any other position with the Company and the
         Affiliates, the Executive shall resign from all such positions as of
         the Date of Termination. Should the Executive fail to resign from the
         office as a director or from any other office in accordance with this
         paragraph (i), the Company is hereby irrevocably authorised to appoint
         a person in his name and on his behalf to execute any documents and to
         do all things required to give effect to such resignation.

(j)      Intervening Termination Event. If, prior to the scheduled date of the
         Executive's termination of employment pursuant to the originally filed
         Notice of Termination (the "Original Notice of Termination"), the
         Executive's termination of employment occurs under circumstances
         described in another provision of paragraph 3, then, for purposes of
         this Agreement, the Date of Termination shall not be deemed to have
         occurred by reason of Original Notice of Termination, but by reason of
         the subsequent event resulting in employment termination.

         4. Rights Upon Termination. The Executive's right to payment and
benefits under this Agreement for periods after his Date of Termination shall be
determined in accordance with the following provisions of this paragraph 4:

(a)      General. If the Executive's Date of Termination occurs during the
         Agreement Term for any reason, the Company shall pay to the Executive:

         (i) The Executive's Salary for the period ending on the Date of
         Termination.

         (ii) Payment for unused vacation days, as determined in accordance with
         Company policy as in effect from time to time.

         (iii) If the Date of Termination occurs after the end of a performance
         period and prior to payment of the bonus or bonuses (as described in
         paragraph 2(b) and 2(c)) for the period, the Executive shall be paid
         such bonus amount, if any, at the regularly scheduled time.

         (iv) Any other payments or benefits to be provided to the Executive by
         the Company pursuant to any employee benefit plans or arrangements
         established or adopted by the Company (including, without limitation,
         any rights to indemnification from the Company (or from a third-party
         insurer for directors and officers liability coverage) with respect to
         any costs, losses, claims, suits, proceedings, damages or liabilities
         to which the Executive may become subject which arise out of, are based
         upon or relate to the Executive's employment by the Company or the
         Executive's service as an officer or member of the Board of Directors
         of the Company), to the extent such amounts are due from the

                                       9

<PAGE>

         Company in accordance with the terms of such plans or arrangements and
         accrued as at the Date of the Termination.

         Except as may otherwise be expressly provided to the contrary in this
         Agreement, the Company shall be under no obligation to continue this
         Agreement and the Executive's employment hereunder so as not to
         disentitle him from receiving any benefits under this Agreement and
         nothing in this Agreement shall be construed as requiring the Executive
         to be treated as employed by the Company for purposes of any employee
         benefit plan or arrangement following the Executive's Date of
         Termination.

(b)      Resignation and Termination for Cause. If the Executive's Date of
         Termination occurs during the Agreement Term under circumstances
         described in paragraph 3(c) (relating to the Executive's termination
         for Cause), then, except as otherwise expressly provided in this
         Agreement or otherwise agreed in writing between the Executive and the
         Company, the following paragraphs (I) and (II) shall apply in addition
         to the amounts payable in accordance with paragraph 4(a):

         (I) To the extent that a bonus amount is payable in accordance with
         paragraph 2(b)(i) or 2(b)(ii), such payment shall be in the amounts and
         at the times set forth in those paragraphs. Except to the extent that a
         bonus is payable in accordance with paragraph 2(b)(i) or 2(b)(ii), no
         bonus shall be paid in accordance with paragraph 2(b).

         (II) The Executive shall not be entitled to the bonus amounts described
         in paragraph 2(c) for the performance period in which the Date of
         Termination occurs, or for subsequent performance periods.

         If the Executive's Date of Termination occurs during the Agreement Term
         under circumstances described in paragraph 3(e) (relating to the
         Executive's resignation), then the following paragraphs (i) and (ii)
         shall apply in addition to the amounts payable in accordance with
         paragraph 4(a):

         (i) The Executive shall be eligible to receive payment of a bonus under
         paragraph 2(b) in accordance with such paragraph. To the extent that
         such bonus amount is payable in accordance with paragraph 2(b)(i) or
         2(b)(ii), such payment shall be in the amounts and at the times set
         forth in those paragraphs. To the extent that such bonus is payable
         under paragraph 2(b) other than in accordance with paragraph 2(b)(i) or
         2(b)(ii), any such bonus shall be subject to a pro-rata reduction for
         the portion of the performance period (January 1, 2002 through June 30,
         2002) following the Date of Termination.

         (ii) If the Executive's Date of Termination occurs after June 30, 2002,
         the Executive shall be eligible to receive payment of the bonus under
         paragraph 2(c) for the performance period in which his Date of
         Termination occurs, based on actual performance for the entire period,
         and payable at the same time as it is payable for other participants in
         the bonus plan, subject to a pro-rata reduction for the portion of the
         performance period following the Date of Termination. If the
         Executive's Date of

                                       10
<PAGE>

         Termination occurs on or before June 30, 2002, the Executive shall not
         be entitled to any bonus payments under paragraph 2(c).

         If the Executive's Date of Termination occurs during the Agreement Term
         under circumstances described in paragraph 3(c) (relating to the
         Executive's termination for Cause), or paragraph 3(e) (relating to the
         Executive's resignation), the Company shall have no other obligation to
         make payments under the Agreement for periods after the Executive's
         Date of Termination.

(c)      Death or Incapacity. If the Executive's Date of Termination occurs
         during the Agreement Term under circumstances described in paragraph
         3(a) (relating to Executive's death), or paragraph 3(b) (relating to
         Executive's being Permanently Incapacitated), then, in addition to the
         amounts payable in accordance with paragraph 4(a):

         (i) The Executive shall be eligible to receive payment of a bonus under
         paragraph 2(b) in accordance with such paragraph. To the extent that
         such amount is payable in accordance with paragraph 2(b)(i) or
         2(b)(ii), such payment shall be in the amounts and at the times set
         forth in those paragraphs. To the extent that such bonus is payable
         under paragraph 2(b) other than in accordance with paragraph 2(b)(i) or
         2(b)(ii), any such bonus shall be subject to a pro-rata reduction for
         the portion of the performance period (January 1, 2002 through June 30,
         2002) following the Date of Termination.

         (ii) The Executive shall be eligible to receive payment of the bonus
         under paragraph 2(c) for the performance period in which his Date of
         Termination occurs, based on actual performance for the entire period,
         and payable at the same time as it is payable for other participants in
         the bonus plan and, if the Date of Termination occurs prior to June 30,
         2002, the Executive shall be entitled to receive payment of the bonus
         under paragraph 2(c), subject to a pro-rata reduction for the portion
         of the performance period following the Date of Termination.

(d)      Termination without Cause and Constructive Discharge.  If:

         (I) the Executive's Date of Termination occurs at any time during the
         Agreement Term (whether before, on or after December 31, 2003) under
         circumstances described in paragraph 3(d) (relating to Constructive
         Discharge) or paragraph 3(f) (relating to termination by the Company
         without Cause), or if;

         (II) the Agreement Term is not extended by reason of the Company
         providing notice to the Executive of non-renewal in accordance with
         paragraph 1(g), at any time (whether before or after 31 December 2003)
         and provided that the Executive is still employed by the Company as of
         December 31, in the year in which the Company provides notice to the
         Executive of non-renewal in accordance with paragraph 1(g);

         then, in addition to the amounts payable in accordance with paragraph
         4(a):

         (i) The Executive shall receive from the Company for the period (the
         "Severance Period") continuing through the first anniversary of the
         Date of Termination, the Salary

                                       11

<PAGE>

         amount described in paragraph 2(a), as in effect on his Date of
         Termination, in monthly or more frequent installments as is required
         under that paragraph. The Severance Period, and the Company's
         obligation to make payments under this paragraph (i) shall cease with
         respect to periods after the earlier to occur of the date of the
         Executive's death, or a date, if any, of a breach by the Executive of
         the provisions of paragraph 7, paragraph 8, or paragraph 9. If the
         Executive dies or becomes totally disabled during the Severance Period,
         the Executive or his estate, as the case may be, will be entitled to
         the severance benefits provided for in this Agreement.

         (ii) The Executive shall be eligible to receive payment of a bonus
         under paragraph 2(b) in accordance with such paragraph. To the extent
         that such amount is payable in accordance with paragraph 2(b)(i) or
         2(b)(ii), such payment shall be in the amounts and at the times set
         forth in those paragraphs. To the extent that such bonus is payable
         under paragraph 2(b) other than in accordance with paragraph 2(b)(i) or
         2(b)(ii), any such bonus shall be subject to a pro-rata reduction for
         the portion of the performance period (January 1, 2002 through June 30,
         2002) following the Date of Termination.

         (iii) The Executive shall be eligible to receive payment of the bonus
         under paragraph 2(c) for the performance period in which his Date of
         Termination occurs, based on actual performance for the entire period,
         and payable at the same time as it is payable for other participants in
         the bonus plan and, if the Date of Termination occurs prior to June 30,
         2002, subject to a pro-rata reduction for the portion of the
         performance period following the Date of Termination.

         (iv) The exercise restrictions with respect to stock options granted to
         the Executive by the Company shall lapse, and the options shall become
         vested and exercisable as of the Date of Termination. The portion of
         any stock option granted to the Executive that is exercisable
         immediately prior to the Date of Termination, as well as the portion of
         any stock option that becomes exercisable by reason of this paragraph
         (iv), shall remain exercisable for 90 days after the Date of
         Termination, but in no event later than the date fixed for expiration
         of the option (determined without regard to Executive's termination of
         employment).

         In no event, however, shall the Executive be entitled to receive any
         amounts, rights, or benefits under paragraph (d)(i) or (d)(iv) above
         unless he executes a release of claims against the Company in a form
         prepared by the Company.

(e)      Other Severance. Except as may be otherwise specifically provided in an
         amendment of this paragraph (e) adopted in accordance with paragraph
         14, the Executive's rights under this paragraph 4 shall be in lieu of
         any benefits that may be otherwise payable to or on behalf of the
         Executive pursuant to the terms of any severance pay arrangement of the
         Company or any Affiliate or any other, similar arrangement of the
         Company or any Affiliate providing benefits upon involuntary
         termination of employment.

         5. Duties on Termination. Subject to the terms and conditions of this
Agreement, during the period beginning on the date of delivery of a Notice of
Termination, and ending on the Date

                                       12

<PAGE>

of Termination, the Executive shall continue to perform his duties as set forth
in this Agreement, and shall also perform such services for the Company as are
necessary and appropriate for a smooth transition to the Executive's successor,
if any. Notwithstanding the foregoing provisions of this paragraph 5, the
Company may suspend the Executive from performing his duties under this
Agreement following the delivery of a Notice of Termination providing for the
Executive's resignation, or delivery by the Company of a Notice of Termination
providing for the Executive's termination of employment for any reason;
provided, however, that during the period of suspension (which shall end on the
Date of Termination), the Executive shall continue to be treated as employed by
the Company for other purposes, and his rights to compensation or benefits shall
not be reduced by reason of the suspension and the Executive shall continue to
be bound by his obligations under this Agreement and his duty of fidelity to the
Company. Following the Date of Termination, the Executive agrees to return to
the Company any keys, credit cards, passes, confidential documents or material,
or other property belonging to the Company, and to return all writings, files,
records, correspondence, notebooks, notes and other documents and things
(including any copies thereof) containing any confidential information or trade
secrets relating to the Company or the Affiliates. The Executive agrees to
represent in writing to the Company upon termination of employment that he has
complied with the foregoing provisions of this paragraph 5 and that he will
comply with paragraphs 7, paragraph 8, and paragraph 9.

         6. Mitigation, Alienation, and Set-Off. The Executive shall not be
required to mitigate the amount of any payment provided for in this Agreement by
seeking other employment or otherwise. The Company shall be entitled to set off
against amounts payable to the Executive any amounts owed to the Company by the
Executive (and the Executive agrees to such set off for the purposes of the
Employment Rights Act 1996), but the Company shall not be entitled to set off
against the amounts payable to the Executive under this Agreement any amounts
earned by the Executive in other employment after termination of his employment
with the Company, or any amounts which might have been earned by the Executive
in other employment had he sought such other employment. Except as otherwise
provided in this paragraph, the interests of the Executive under this Agreement
are not subject in any manner to anticipation, alienation, sale, transfer,
assignment, pledge, encumbrance, attachment, or garnishment by creditors of the
Executive or the Executive's beneficiary. However, to the extent that rights or
benefits under this Agreement otherwise survive the Executive's death, the
Executive's heirs and estate shall succeed to such rights and benefits pursuant
to the Executive's will or the laws of descent and distribution; provided that
the Executive shall have the right at any time and from time to time, by notice
delivered to the Company, to designate or to change the beneficiary or
beneficiaries with respect to such benefits.

         7. Confidential Information. The Executive agrees that, during the
Agreement Term, and at all times thereafter:

(a)      Except as may be required by the lawful order of a court or agency of
         competent jurisdiction, except as necessary to carry out his duties to
         the Company and its Affiliates, or except to the extent that the
         Executive has express authorization from the Company, the Executive
         agrees to keep secret and confidential indefinitely, all Confidential
         Information, and not to disclose the same, either directly or
         indirectly, to any other

                                       13

<PAGE>

         person, firm, or business entity, or to use it in any way. The
         Executive shall, during the continuance of the Executive's employment,
         use the Executive's best endeavors to prevent the unauthorized
         publication or misuse of any Confidential Information.

(b)      To the extent that any court or agency seeks to have the Executive
         disclose Confidential Information, he shall promptly inform the
         Company, and he shall take reasonable steps to prevent disclosure of
         Confidential Information until the Company has been informed of such
         requested disclosure, and the Company has an opportunity to respond to
         such court or agency. To the extent that the Executive obtains
         information on behalf of the Company or any of the Affiliates that may
         be subject to attorney-client privilege as to the Company's attorneys,
         the Executive shall take reasonable steps to maintain the
         confidentiality of such information and to preserve such privilege.

(c)      Nothing in the foregoing provisions of this paragraph 7 shall be
         construed so as to prevent the Executive from using, in connection with
         his employment for himself or an employer other than the Company or any
         of the Affiliates, knowledge which was acquired by him during the
         course of his employment with the Company and the Affiliates, and which
         is generally known to persons of his experience in other companies in
         the same industry.

(d)      For purposes of this Agreement, the term "Confidential Information"
         shall include all non-public information (including, without
         limitation, information regarding litigation and pending litigation)
         concerning the Company and the Affiliates which was acquired by or
         disclosed to the Executive during the course of his employment with the
         Company, or during the course of his consultation with the Company
         prior to the commencement of his employment and following his Date of
         Termination (regardless of whether consultation is pursuant to
         paragraph 12). For purposes of this Agreement, the term "Confidential
         Information" shall also include all non-public information concerning
         any other company that was shared with the Company or an Affiliate
         subject to an agreement to maintain the confidentiality of such
         information.

(e)      Nothing in this paragraph 7 shall preclude the Executive from making a
         protected disclosure in accordance with the Employment Rights Act 1996.
         This paragraph 7 shall not be construed to unreasonably restrict the
         Executive's ability to disclose confidential information in an
         arbitration proceeding or a court proceeding in connection with the
         assertion of, or defense against any claim of breach of this Agreement.
         If there is a dispute between the Company and the Executive as to
         whether information may be disclosed in accordance with this paragraph
         (e), the matter shall be submitted to the court for decision.

         8. Non-Disparagement. The Executive agrees that, while he is employed
by the Company, and for 12 months after his Date of Termination, he shall not
make any false, defamatory or disparaging statements about the Company, the
Affiliates, or the officers or directors of the Company or the Affiliates that
are reasonably likely to cause material damage to the Company, the Affiliates,
or the officers or directors of the Company or the Affiliates. While the
Executive is employed by the Company, and for 12 months after his Date of
Termination, the

                                       14

<PAGE>

Company agrees, on behalf of itself and the Affiliates, that neither the
officers nor the directors of the Company or the Affiliates shall make any
false, defamatory or disparaging statements about the Executive that are
reasonably likely to cause material damage to the Executive.

         9. Noncompetition. The Company considers and the Executive acknowledges
that the following restraints, on which the Executive has had the opportunity to
take independent legal advice, are necessary for the reasonable protection by
the Company of its business or the business of the Affiliates, the clients
thereof or their respective affairs.

(a)      The Executive shall not while he is employed by the Company or during
         the 6 month period after the Date of Termination, except in the event
         of a wrongful termination by the Company, be employed by, serve as a
         consultant to, or otherwise in any capacity assist or directly or
         indirectly provide services to a Competitor (defined below) if the
         trade secrets, confidential information, or proprietary information
         (including, without limitation, confidential or proprietary methods) of
         the Company and the Affiliates to which the Executive had access during
         his employment hereunder could reasonably be expected to benefit the
         Competitor if the Competitor were to obtain access to such secrets or
         information.

(b)      The Executive shall not while he is employed by the Company or during
         the 12 month period after the Date of Termination, except in the event
         of a wrongful termination by the Company, solicit or attempt to solicit
         any person, company, firm or business who during the 12-month period
         prior to such solicitation or attempt by the Executive was a customer
         or supplier of the Company or Affiliate and with whom the Executive had
         business dealings during such 12 month period, provided that the
         restriction in this paragraph (b) shall not apply to any activity on
         behalf of a business that is not a Competitor.

(c)      The Executive shall not while he is employed by the Company or during
         the 12 month period after the date of the termination of his
         employment, except in the event of a wrongful termination by the
         Company, solicit, entice, persuade or induce any individual who is
         employed by the Company or the Affiliates (or was so employed within 90
         days prior to the Executive's action) and with whom the Executive had
         business dealings during the 12 month period prior to the Executive's
         action to terminate or refrain from renewing or extending such
         employment or to become employed by or enter into contractual relations
         with any other individual or entity other than the Company or the
         Affiliates, and the Executive shall not approach any such employee for
         any such purpose or authorize or knowingly cooperate with the taking of
         any such actions by any other individual or entity.

(d)      The Executive shall not directly or indirectly own an equity interest
         in any Competitor (other than ownership of 1% or less of the
         outstanding stock of any corporation listed on a national stock
         exchange).

The term "Competitor" means any enterprise (including a company, person, firm or
business, whether or not incorporated) during any period in which a material
portion of its business is (and during any period in which it intends to enter
into business activities that would be) materially

                                       15

<PAGE>

competitive in any way with any business in which the Company or any of the
Affiliates was engaged and with which the Executive was involved during the
12-month period prior to the Executive's Date of Termination (including, without
limitation, any business if the Company devoted material resources to entering
into such business during such 12-month period). Nothing in this paragraph 9 or
in paragraph 7 or paragraph 8 shall be construed as limiting the Executive's
duty of loyalty to the Company, or any other duty he may otherwise have to the
Company, while he is employed by the Company.

         10. Intellectual Property. In this paragraph 10 the term "Intellectual
Property" means all intellectual and industrial property and all rights therein
including, without limiting the generality of the foregoing, all inventions
(whether patentable or not, and whether or not patent protection has been
applied for or granted), improvements, developments, discoveries, proprietary
information, trade marks, trade mark applications, trade names, websites,
Internet domain names, logos, art work, slogans, know-how, technical
information, trade secrets, processes, designs (whether or not registrable and
whether or not design rights subsist in them); utility models, works in which
copyright may subsist (including computer software and preparatory and design
materials therefor), topography rights and all works protected by the rights or
forms of protection of a similar nature or having equivalent effect anywhere in
the world. Subject to the provisions of the Patents Act 1977, the Registered
Designs Act 1949 and the Copyright Designs and Patents Act 1988, if at any time
in the course of, or in connection with, his employment under this Agreement the
Executive makes or discovered or participates in the making or discovery of any
Intellectual Property directly or indirectly relating to or capable of being
used in the business carried on by the Company or by any Affiliate, full details
of the Intellectual Property shall immediately be disclosed in writing by him to
the Company and the Intellectual Property shall be the absolute property of and
vest in the Company. At the request and expense of the Company, the Executive
shall give and supply all such information, data, drawings and assistance as may
be necessary or in the opinion of the Company desirable to enable the Company to
exploit the Intellectual Property to the best advantage (as decided by the
Company), and shall execute all documents and do all things which may be
necessary or in the opinion of the Company desirable for obtaining patent or
other protection for the Intellectual Property in such parts of the world as may
be specified by the Company and for vesting the same in the Company or as it may
direct.

         11. Statement of Particulars of Employment. This Agreement, including
the provisions of schedule 1 hereto, shall constitute the written statement of
particulars who provided pursuant to section 1 of the Employment Rights Act
1996.

         12. Assistance with Claims. The Executive agrees that, for the period
beginning on the Employment Commencement Date, and continuing for a reasonable
period after the Executive's Date of Termination, the Executive will assist the
Company and the Affiliates in defense of any claims that may be made against the
Company and the Affiliates, and will assist the Company and the Affiliates in
the prosecution of any claims that may be made by the Company or the Affiliates,
to the extent that such claims may relate to services performed by the Executive
for the Company and the Affiliates. The Executive agrees to promptly inform the
Company if he becomes aware of any lawsuits involving such claims that may be
filed against the Company or any Affiliate. The Company agrees to provide legal
counsel to the Executive in connection with

                                       16

<PAGE>

such assistance (to the extent legally permitted), and to reimburse the
Executive for all of the Executive's reasonable out-of-pocket expenses
associated with such assistance, including travel expenses. For periods after
the Executive's employment with the Company terminates, the Company agrees to
provide reasonable compensation to the Executive for such assistance. The
Executive also agrees to promptly inform the Company if he is asked to assist in
any investigation of the Company or the Affiliates (or their actions) that may
relate to services performed by the Executive for the Company or the Affiliates,
regardless of whether a lawsuit has then been filed against the Company or the
Affiliates with respect to such investigation.

         13. Equitable Remedies. The Executive acknowledges that the Company
would be irreparably injured by a violation of paragraph 7, paragraph 8, or
paragraph 9, and he agrees that the Company, in addition to any other remedies
available to it for such breach or threatened breach, shall be entitled to a
preliminary injunction, temporary restraining order, or other equivalent relief,
restraining the Executive from any actual or threatened breach of paragraph 7,
paragraph 8, or paragraph 9. If a bond is required to be posted in order for the
Company to secure an injunction or other equitable remedy, the parties agree
that said bond need not be more than a nominal sum.

         14. Amendment. This Agreement may be amended or cancelled only by
mutual agreement of the parties in writing without the consent of any other
person. So long as the Executive lives, no person, other than the parties
hereto, shall have any rights under or interest in this Agreement or the subject
matter hereof.

         15. Applicable Law. This Agreement shall be governed by, and construed
in accordance with, English law. In relation to any legal action or proceedings
arising out of or in connection with this Agreement ("Proceedings"), each of the
parties irrevocably submits to the exclusive jurisdiction of the English courts
(and the Employment Tribunals).

         16. Severability. The invalidity or unenforceability of any provision
of this Agreement will not affect the validity or enforceability of any other
provision of this Agreement, and this Agreement will be construed as if such
invalid or unenforceable provision were omitted (but only to the extent that
such provision cannot be appropriately reformed or modified).

         17. Waiver of Breach. No waiver by any party hereto of a breach of any
provision of this Agreement by any other party, or of compliance with any
condition or provision of this Agreement to be performed by such other party,
will operate or be construed as a waiver of any subsequent breach by such other
party of any similar or dissimilar provisions and conditions at the same or any
prior or subsequent time. The failure of any party hereto to take any action by
reason of such breach will not deprive such party of the right to take action at
any time while such breach continues.

         18. Successors, Assumption of Contract. This Agreement shall be binding
upon and inure to the benefit of the Company and any successor of the Company,
subject to the following:

(a)      The Company may assign its rights and obligations under this Agreement
         to any Affiliate. The Company will require that any assignee (pursuant
         to the preceding

                                       17

<PAGE>
         sentence), and will require that any successor (whether direct or
         indirect, by purchase, merger, consolidation or otherwise) to all or
         substantially all of the business or assets of the Company, to
         expressly assume and agree to perform this Agreement in the same manner
         and to the same extent that the Company would be required to perform it
         if no such assignment or succession had taken place.

(b)      After an assignee or a successor assumes this Agreement in accordance
         with this paragraph 18, only such assignee or successor shall be liable
         for amounts payable after such assumption, and no other companies shall
         have liability for amounts payable after such assumption.

(c)      Notwithstanding the foregoing provisions of this paragraph 18, if an
         assignee or the successor is required to assume the obligations of this
         Agreement under paragraph 18(a), and fails to execute and deliver to
         the Executive a written acknowledgment of the assumption at that time
         or, if later, promptly following demand by the Executive for execution
         and deliver of such an acknowledgment, then the successor shall not be
         substituted as the Company, the Executive shall be entitled to payments
         and benefits as provided under paragraph 4(d), and if the Executive is
         then employed by the Company (or successor), the Executive's employment
         shall be deemed to have been terminated by the Company under
         circumstances described in paragraph 3(d), and the Executive shall not
         be required to perform services under this Agreement after such deemed
         termination.

(d)      The Company's rights and obligations under this Agreement may not be
         assigned to an entity that is not an Affiliate without the Executive's
         consent.

         19. Notices. Notices and all other communications provided for in this
Agreement shall be in writing and shall be deemed to have been duly received
when delivered in person or on the second business day following deposit in the
mail, sent by registered or certified mail or similar mailing method, return
receipt requested, postage prepaid and addressed, in the case of the Company, to
the following address:

         Omega (UK) Worldwide, Inc.
         145 Cannon Street
         London EC4N 5BP
         United Kingdom

or to the Executive:

         Ronald Sharp Elder
         Chestnuts
         8 Courtney Place
         Cobham
         Surrey KT11 2BE

provided, however, that in no event shall any such communication be deemed to be
given later than the date it is actually received. All notices to the Company
shall be directed to the attention

                                       18

<PAGE>

of the Chairman of the Board, with a copy to the Secretary of the Company. Each
party, by written notice furnished to the other party, may modify the applicable
delivery address, except that notice of change of address shall be effective
only upon receipt.

         20. Survival of Agreement. Except as otherwise expressly provided in
this Agreement, the rights and obligations of the parties to this Agreement
shall survive the termination of the Executive's employment with the Company.

         21. Entire Agreement. Except as otherwise noted herein, this Agreement
constitutes the entire agreement between the parties concerning the subject
matter hereof and supersedes all prior and contemporaneous agreements, if any,
between the parties relating to the subject matter hereof; provided, however,
that nothing in this Agreement shall be construed to limit the Company's ability
to establish and maintain policies (or require the employee to enter into an
agreement) relating to confidentiality, rights to inventions, copyrightable
material, business and/or technical information, trade secrets, solicitation of
employees, interference with relationships with other businesses, competition,
and other similar policies or agreement for the protection of the business and
operations of the Company and the Affiliates.

         22. Acknowledgment by Executive. The Executive represents and warrants
that (i) he is not, and will not become a party to any agreement, contract,
arrangement or understanding, whether of employment or otherwise, that would in
any way restrict to prohibit him from undertaking or performing his duties in
accordance with this Agreement or that restricts his ability to be employed by
the Company in accordance with this Agreement; (ii) his employment by the
Company will not violate the terms of any policy of any prior employer of the
Executive regarding competition; and (iii) his position with the Company, as
described in this Agreement, will not require him to improperly use any trade
secrets or confidential information of any prior employer, or any other person
or entity for whom he has performed services.

                                       19

<PAGE>

         IN WITNESS THEREOF, the Executive has executed this Agreement as a
deed, and the Company has caused these presents to be executed in its name and
on its behalf, all as of the Effective Date.

SIGNED AS A DEED           )
and DELIVERED by           )
the Executive              )
in the presence of:        )

Name:             Ronald Sharp Elder
Signature:        /s/ Ronald Sharp Elder
Address:          Chestnuts, 8 Courtney Place  Cobham Surrey  KT11 2BE
Occupation:       CEO

Signed for and on behalf of Omega Worldwide, Inc.

By:   /s/ James Eden
     ------------------------------

Its:    Chairman of the Board
     ------------------------------

                                       20
<PAGE>
                                   SCHEDULE 1

         1. The Executive's period of continuous employment with the Company
commenced on 10 February 2002.

         2. The Executive shall work normal business hours which are Monday to
Friday inclusive and such additional hours as may be necessary for the
performance of his duties and powers under this Agreement. No overtime will be
paid with respect to any hours worked by the Executive outside normal business
hours.

         3. Each year the Company will contribute to a personal pension plan
approved under Chapter IV Part XIV of the Income and Corporation Taxes Act 1988
or to a Stakeholder Pension nominated by the Executive an annual amount equal to
the lesser of (a) 12% of the Executive's annual base salary under clause 2(a)
above and (b) the amount which (together with the contributions (if any) paid by
the Executive himself) equal the maximum amount which may be contributed to such
a plan in that year (without prejudicing its tax approved status). If the amount
in (b) is the amount to be contributed by the Company to such personal pension
plan, the Company shall pay an additional annual amount equal to the difference
between (a) and (b) directly to the Executive, which amount shall be subject to
deductions in respect of tax and national insurance contributions. Any payments
to be made under this paragraph shall be made monthly at the same time as base
salary payments.

         4. There are no disciplinary rules applicable to the Executive. Any
disciplinary matter shall be dealt with by the Board or a person nominated by
the Board. If the Executive is dissatisfied with any disciplinary decision or
has a grievance relating to his employment, he should notify the Board in
writing.

         5. There are no collective agreements currently in force which affect
directly or indirectly the terms and conditions of the Executive's employment.

                                       21

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00039-of-00352.parquet"}]]