Document:

Exhibit 10.17

                              MANAGEMENT AGREEMENT

      This MANAGEMENT AGREEMENT ("Agreement") is made as of December 29, 2000
between Adelphia Business Solutions Operations, Inc., a Delaware corporation
(the "Manager") and ACC Operations, Inc., a Delaware corporation (the
"Company").

      Manager has experience and expertise in the construction, design,
engineering, maintenance, operation, management, marketing, regulatory
processing, accounting, financial reporting and network monitoring associated
with competitive local telecommunications networks and local switch networks.

      The Company provides competitive local telecommunications and all switch
related business services and desires to have the Manager manage the provision
of these services for the Company's network and local switch network in the
geographic areas listed on Schedule I attached hereto and made a part hereof
(the "Network") under the direction and control of the Company. The Company, the
Manager and their respective affiliates collectively own all necessary federal,
state or local franchises, licenses, permits or other governmental
authorizations in connection with the ownership and operation of the Network.

      Manager is willing to provide such management services on the terms and
subject to the conditions contained in this Agreement.

      In consideration of the foregoing and intending to be legally bound
hereby, the Manager and the Company agree as follows:

1.    Appointment of Manager.

      Subject to the Company's oversight, review, supervision and control, the
Company hereby appoints the Manager as its sole and exclusive agent to manage
and supervise the development and operation of the Network during the term of
this Agreement with those powers, authority and duties that are specified
herein. The Manager hereby accepts such appointment and agrees to perform its
obligations and responsibilities hereunder. The Manager acknowledges that all
facilities and equipment used or employed in the development, construction and
operation of the Network, other than leased equipment or equipment owned by the
Manager or other contractors, shall remain the property of the Company and the
Company shall have the unfettered use and ownership of all such facilities and
equipment. The Manager further acknowledges that all of the employees of the
Company are employed solely by the Company and the Manager shall not direct any
of such employees to take any action or perform any task that is not for the
direct benefit of the Company. The Manager shall devote such time and resources
as are necessary to ensure proper and efficient operation of the Network and
shall make available to the Network the full range of its expertise and
experience. The Company hereby grants to the Manager complete access or, if
less, as much access as the Company has to all of the fiber optic and other
facilities which are owned or leased by the Company and which constitute the
Network in order to permit Manager to perform its obligations hereunder.
<PAGE>

2.    Services.

      (a) General. Subject to the oversight, review, supervision and control of
the Company and subject to all applicable laws and regulations, the Manager
shall be responsible for the development, planning, management and operation of
the Network. To this end, the Manager shall provide supervision of all (i)
administrative, accounting, billing, credit, collection, insurance, purchasing,
clerical, financial reporting and such other general services as may be
necessary to the administration of the Network; (ii) operational, engineering,
maintenance, repair and such other technical services as may be necessary to the
construction and operation of the Network; (iii) sales, advertising and such
other promotional services as may be necessary to the marketing of the Network;
and (iv) legal and regulatory compliance of the Company and the Network
including the filings of tariffs required by applicable state and federal
regulatory agencies. Consistent with the foregoing and with sound commercial
practice, the Manager shall use its best efforts to render or obtain such
services and perform or cause to be performed such duties as shall be necessary
or appropriate for the construction, management and operation of the Network,
including, without limitation, those duties as are more specifically set forth
on Schedule II annexed hereto and made a part hereof. All of such services shall
be rendered by the Manager subject to the approval of the Company.

      (b) Consolidation of Purchases. In arranging for the provision of goods
and services to the Company, including without limitation the services referred
to in Subsection 2(a) hereof, the Manager may make arrangements to consolidate
the purchase of such goods and services with purchases for other facilities or
systems operated or managed by the Manager; provided that all such purchases are
on terms no less favorable than those that could reasonably be obtained by the
Company on an unconsolidated basis and that the Company shall not reimburse the
Manager for any costs for such goods or services in excess of the Manager's
direct, out-of-pocket costs therefor.

      (c)   Agency. All actions taken by the Manager under the provisions of
Subsection 2(a) hereof shall be taken as agent of the Company.

      (d)   Consent Required.  Notwithstanding any provision to the contrary in
this Agreement or in Schedule II, the Manager shall not, without the prior
written consent of the Company:

            i.    settle or initiate any claim or litigation involving the
Network;

            ii.   enter into any collective bargaining contract or personal
service agreement with any employee or employees of the Company;

            iii.  lend money on behalf of the Company, or assign, transfer, or
pledge any debts due the Company, or release or discharge any debt due or
compromise any claim exceeding $25,000;

            iv.   enter into any joint venture,  arrangement or business
enterprise on behalf of the Company, or obligate the Company to any undertakings
other than those in the ordinary course of business of the Network;
<PAGE>

            v.    enter into any transaction with any affiliate of the Manager
or the Company;

            vi.   knowingly take or fail to take any action that violates (i)
any law, rule or regulation relating to the Network; (ii) any agreement,
arrangement or undertaking to which the Company is a party; (iii) any federal,
state or local franchise, license, permit or other governmental authorization
granted to the Company, the Manager or any of their respective affiliates in
connection with its ownership and operation of the Network; or (iv) any judicial
or administrative order or decree to which the Company is subject or by which
any of the Company's properties or assets are bound;

            vii.  sell, assign, transfer or otherwise dispose of, or
hypothecate or encumber in any way, any assets belonging to the Company other
than in the ordinary course of business or where no longer useful in the
business or operations of the Network;

            viii. take any action to obtain or amend or agree to amend any
federal, state, or local franchise, license, permit, or other governmental
authorization granted to the Company, the Manager or any of their respective
affiliates in connection with its ownership and operation of the Network;

            ix.   borrow money on behalf of the Company or negotiate or enter
into other forms of financing for the Network, including any capital lease,
other than customer credit agreements with persons who supply goods or services
to the Network;

            x.    amend any lease of any fiber optic facilities entered into by
the Company; or

            xi.   cause or permit the Company to exceed its capital or expense
Budget (as such term is defined in Schedule II) by more than fifteen percent
(15%) for any calendar year.

3.    Regulatory Compliance. The Manager is expressly authorized to provide the
services contemplated herein, and recognizes that each of the Company and the
Manager is or may be required to be licensed or otherwise authorized by federal
and state regulatory authorities with respect to its business activities as they
relate to the Network At the Company's request, the Manager shall apply for or
supervise the applications of the Company for any such licenses and shall
prepare and submit or supervise the preparation and submission of all regulatory
filings, including tariffs. Without limiting the generality of the foregoing, if
any regulatory authority or agency determines that any provision of this
Agreement violates any rule, policy or regulation, both parties shall make
good-faith efforts immediately to correct the problem and to bring this
Agreement into compliance.

4.    Company Responsibilities.

      (a) Information and Equipment. The Company shall provide Manager, at the
Network or, to the extent necessary, at the Manager's network monitoring and
control center ("NCC"), with all information, local equipment and software and
connecting facilities necessary to allow the Manager to provide the services for
the Network described in Section 2, including without limitation those set forth
on Schedule II, and cooperate and comply with the procedures
<PAGE>

developed to implement those services. Additional sites to be monitored by the
Manager pursuant to Schedule II may be added on at least five (5) business days'
notice to the NCC. All equipment to be monitored at the Network by the Manager
must be approved by the Manager as compatible with its monitoring system. The
Manager shall purchase the equipment and connecting facilities on behalf of the
Company as part of the construction of the Network.

      (b) Compliance with FCC Licenses, Franchises, and Permits. Notwithstanding
anything in this Agreement to the contrary, the Company, the Manager or any of
their respective affiliates shall, as applicable, continue to be the franchisee,
licensee and permittee of all federal, state, or local franchises, licenses,
permits and other governmental authorizations that are necessary to the conduct
of the business or operations of the Network (collectively, the "Licenses"). The
Company and the Manager shall each retain ultimate responsibility for compliance
with the laws and the rules, regulations and policies of the Federal
Communications Commission and all state and local regulatory authorities for
those Licenses respectively by them. The Company and the Manager agree to remain
in compliance with the rules, regulations and policies of all governmental
authorities from which the Company, the Manager or any of their respective
affiliates has received Licenses. Unless otherwise agreed to by the Company and
the Manager in writing, the Company and the Manager agree that they shall not
take any action that would violate any License or that could reasonably be
expected to cause the cancellation, revocation, or adverse modification of any
License or that could be expected to otherwise impair the good standing or
renewal of any License.

      (c) Maintaining Licenses. The Company and the Manager, as applicable,
shall take or cause to be taken all reasonable and appropriate steps necessary
to keep the Licenses in full force and effect and in good standing. The Company
and the Manager shall prepare and submit to each relevant authority all reports,
applications, renewals, filings or other documents necessary to do so and
respond promptly to all regulatory correspondence or inquiries and any and all
adversarial pleadings of whatever nature filed with the FCC or any State or
local authority and each will immediately notify the other of the receipt
thereof.

5.    Payments.

      (a) Fees. In consideration for the services to be performed herein, the
Company shall pay to the Manager an ongoing fee per month of $60,000, increasing
by four percent per year for the term of this Agreement. The Company shall pay
such fee in equal monthly installments on the first day of each calendar month
during the term of this Agreement. Furthermore, the Manager will be eligible for
a quarterly performance bonus based on the recommendations of the Company. In
accordance with the above terms and conditions a mutually agreed upon bonus plan
will be initiated.

      (b) Expense Reimbursement. Subject to the Budgets (as defined in Schedule
II), the Company shall reimburse the Manager for travel, meals, lodging and
other reasonable out-of-pocket expenses incurred in carrying out the duties and
responsibilities of the Manager in this Agreement upon verification and
provision of appropriate records. Subject to the Budgets, the Company shall also
reimburse the Manager for costs associated with outside accounting, tariff and
legal services that may be required beyond the normal day-to-day management and
operation of the Network.
<PAGE>

6.    Term.

      (a) Renewal. This Agreement shall commence on December 31, 2000 and,
subject to Section 6(b) hereof, the initial term of this Agreement shall end on
the day prior to the third anniversary of the date of commencement. This
Agreement shall automatically renew thereafter for additional periods of three
(3) years, unless either party notifies the other, in writing, at least sixty
(60) days prior to the then current term of its intention that such renewal
shall not occur.

      (b) Automatic Termination. Notwithstanding the foregoing, this Agreement
shall terminate on the earliest to occur of (i) thirty (30) days after the date
that the Company's or the Manager's legal ability to operate the Network
terminates or is materially impaired; provided, however, that if such party can
cure the defect and commence operations within the thirty-day period specified
herein, this Agreement shall not terminate under this subparagraph (i), (ii) the
date this Agreement terminates pursuant to Section 9 hereof, or (iii) the date
in which either the Company or the Manager incur a Change of Control (as defined
below), unless both parties agree prior to such Change of Control that upon the
expiration of the then current term to renew this Agreement for an additional
six (6) years.

      (c) Definitions. For purposes of this Agreement, a "Change of Control"
shall be deemed to have occurred with respect to the Company if, after the date
hereof, members of the John Rigas family fail to collectively (i) own directly
or indirectly at least 50.1% of the outstanding voting stock of Adelphia
Communications Corporation, a Delaware corporation ("Adelphia"), or (ii) have
the ability, directly or indirectly, to select a majority of the members of the
Board of Directors of Adelphia. A "Change of Control" shall be deemed to have
occurred with respect to the Manager if, after the date hereof, Adelphia fails
to (i) own directly or indirectly at least 50.1% of the outstanding voting stock
of Adelphia Business Solutions, Inc., a Delaware corporation ("ABS"), or (ii)
have the ability, directly or indirectly, to select a majority of the members of
the Board of Directors of ABS.

7.    Proprietary Information. Each party acknowledges that, in the course of
the performance of this Agreement, it may have access to privileged and
proprietary information claimed to be unique, secret and confidential, and which
constitutes the exclusive property or trade secret of the other, and the parties
acknowledge that they are in a confidential relationship with each other. To the
extent that (a) any information is marked with a restrictive notice or otherwise
tangibly designated as proprietary or (b) the disclosing party advises the
receiving party orally or in writing that information is proprietary, the
receiving party agrees to maintain the confidentiality of the proprietary
information and to use the same degree of care as it uses with regard to its own
proprietary information to prevent the disclosure, publication or unauthorized
use of the proprietary information. Neither party may duplicate or copy
proprietary information of the other party other than to the extent necessary
for legitimate business uses in connection with this Agreement. The receiving
party shall be excused from these nondisclosure provisions if (a) the receiving
party can demonstrate the proprietary information has been, or is subsequently,
made public by the disclosing party or is independently developed by the
receiving party, (b) the disclosing party gives its written consent to the
disclosure of the proprietary information, or (c) the disclosure is required by
law. The provisions of this Section shall survive the termination or expiration
of the term of this Agreement.
<PAGE>

8.    Representations and Warranties.

      (a)   The Company hereby represents and warrants to the Manager as
follows:

            i.    the Company is duly organized and validly existing in the
State of Delaware and is duly qualified as a foreign corporation in any state
where such qualification is necessary;

            ii.   the Company has full power and authority to enter into this
Agreement and perform its obligations hereunder;.

            iii.  the execution, delivery and performance of this Agreement and
all other agreements and transactions contemplated hereby have been duly
authorized by the Company and do not violate the organization documents or any
other agreement to which the Company is a party or by which it or the Network is
bound; and

            iv.   this Agreement constitutes a legal, valid and binding
obligation of the Company, enforceable against it in accordance with its terms
(except as enforcement may be limited by bankruptcy or insolvency laws).

      (b)   The Manager hereby represents and warrants to the Company as
follows:

            i.    the Manager is duly organized, validly existing and in good
standing under the laws of the State of Delaware and is duly qualified to
conduct business in any state where such qualification is necessary;

            ii.   the Manager has full power and authority to enter into this
Agreement and perform its obligations hereunder;

            iii.  the execution, delivery and performance of this Agreement and
all other agreements and transactions contemplated hereby have been duly
authorized by the Manager, and do not violate the Certificate of Incorporation
or the Bylaws of the Manager or any other agreement to which the Manager is a
party or by which it or its assets are bound; and

            iv.   this Agreement constitutes a legal, valid and binding
obligation of the Manager, enforceable against it in accordance with its terms
(except as enforcement may be limited by bankruptcy or insolvency laws).

9.    Events of Default and Remedies.

      (a)   Events of Default.

            i.    By the Company. The Company shall be in default under this
Agreement if it fails to make any payment pursuant to Subsection 5(a) or 5(b)
hereof within thirty days after the date on which such payment was due unless,
in the case of a payment pursuant to Subsection 5(b) hereof, the same shall be
contested in good faith.
<PAGE>

            ii.   By Either Party. A party shall also be in default under this
Agreement upon the occurrence of any of the following events (regardless whether
any such event is voluntary or involuntary or occurs by operation of law or
pursuant to any judgment, decree, order, rule or regulation of any court or
administrative or governmental body):

                  a.     the failure of such party to perform or observe in any
material respect any covenant or agreement to be performed or observed by it
hereunder, including, without limitation, those referred to on Schedule II
annexed hereto and made a part hereof, and the continuation of such failure for
a period of thirty days after such party receives written notice thereof;
provided, however, that no such notice shall be required if, in the reasonable
business judgment of the other party, such failure is willful or could
jeopardize the economic viability of the other party;

                  b.     the entering by a court or governmental authority of
competent jurisdiction of an order appointing a custodian, receiver, trustee,
intervenor or other officer with similar powers with respect to such party or
with respect to any substantial part of its property, or constituting an order
for relief or approving a petition in bankruptcy or insolvency under the law of
any jurisdiction, or ordering the dissolution, winding up or liquidation of such
party, provided that any such petition that is filed involuntarily against such
party is not dismissed within sixty (60) days thereafter, or an order shall have
been issued granting such party a suspension of payments under applicable law
and any such order is not dismissed within sixty (60) days thereafter;

                  c.     such party or any of its affiliates ceasing to have any
one or more of the material franchises, licenses, agreements, certificates,
concessions, permits, rights or privileges material to the conduct of the
business and operations of the Network or the Manager, as the case may be, if
(1) the loss is not remedied by the obtaining of a replacement franchise,
license, agreement, certificate, concession, permit, right, or privilege within
sixty (60) days of the loss thereof and (2) the loss has a material adverse
effect upon the ability of either party to perform its obligations hereunder; or

                  d.     any of the representations or warranties of such party
contained herein shall cease to be true in any material respect.

            iii.  By the Manager.  The Manager shall be in default under this
Agreement upon the occurrence of any of the following events:

                  a.     Failure to meet the reasonably defined telephony
standards as defined by Belcore and the continuation of such failure for a
period of thirty (30) days after the Manager receives written notice thereof
from the Company,

                  b.     Exceeding the capital or expense Budgets by more than
fifteen percent (15%) for any calendar year without the prior written
authorization of the Company; or

                  c.     Failure to implement any system or provide any services
described in Section 2, including without limitation those set forth on Schedule
II, in accordance with the time table for such systems and services set forth in
the Initial Business Plan of the Network, as amended from time to time by the
Company, without the prior written consent of the Company and the
continuation of such failure for a period of thirty (30) days after the
Manager receives written notice thereof from the Company.
<PAGE>

      (b)   Remedies. Upon the occurrence and during the continuance of any
event of default and expiration of any related cure period, the non-defaulting
party may, at its option, terminate this Agreement by written notice, which
shall be effective immediately. This remedy is not intended to be exclusive, and
all remedies shall be cumulative and may be exercised concurrently with any
other remedy available to Manager or the Company at law or in equity. IN NO
EVENT SHALL EITHER PARTY BE LIABLE FOR SPECIAL, CONSEQUENTIAL, EXEMPLARY OR
PUNITIVE DAMAGES AS A RESULT OF THE PERFORMANCE OR NON-PERFORMANCE OF ITS
OBLIGATIONS UNDER THIS AGREEMENT; PROVIDED, THAT NOTWITHSTANDING ANYTHING TO THE
CONTRARY THE PARTIES HERETO SHALL BE LIABLE FOR SPECIAL OR CONSEQUENTIAL DAMAGES
WHICH RESULT FROM AN INTENTIONAL BREACH BY A PARTY OF ITS MATERIAL OBLIGATIONS
UNDER THIS AGREEMENT WHICH BREACH CONTINUES AFTER NOTICE AND A REASONABLE
OPPORTUNITY TO CURE. ANY NOTICE DELIVERED PURSUANT TO THE PRECEDING SENTENCE
MUST BE IN WRITING AND MUST CLEARLY SPECIFY THAT THE BREACH IS INTENTIONAL AND
SUBJECT TO SPECIAL AND CONSEQUENTIAL DAMAGES UNDER SECTION 9(b) OF THE
MANAGEMENT AGREEMENT.

      (c)   Other Termination Right. If the Network is not constructed, or does
not operate, in accordance with any one or more of the Budgets, the Company may,
in addition to such other remedies as it may have, terminate this Agreement by
sixty (60) days written notice to the Manager, which shall be effective on the
date specified in the notice.

      (d)   Performance After Termination. After receipt of written notice of
termination, but prior to the effective date of such termination, the Manager
shall continue to perform under this Agreement unless specifically instructed to
discontinue such performance.

      (e)   Termination Transition. On the effective date of any termination, or
before such date if so instructed, the Manager shall relinquish to the Company,
or its designee, possession of all property of the Network and the Company,
including but not limited to, all documents, data and records pertaining to the
Network. The Manager and Company shall use their best efforts to ensure a smooth
transition in the event of termination.

10.   Indemnification.

      (a)   General. The Manager shall not be liable for, and the Company shall
indemnify and save and hold the Manager and its officers, members, directors,
employees and agents harmless from and against, any and all damages,
liabilities, costs and expenses (including, but not limited to, reasonable
attorneys' fees and other costs and expenses incident to any suit, proceeding or
investigation or defense of any claim and the time devoted thereto by personnel
of the Manager, whether or not as the result of judicial compulsion)
(collectively, "Claims") resulting from or arising out of this Agreement or the
acceptance or performance of duties or rendering of services by the Manager
under this Agreement, except that the Company shall have no liability hereunder
in respect of any claim relating to any act or omission of the Manager or any of
its affiliates, officers, directors, employees or
<PAGE>

agents (i) not taken or made in good faith in the reasonable belief that such
act or omission was in the best interest of the Company or (ii) that constitutes
negligence, gross negligence, recklessness, or willful misconduct. The Manager
shall indemnify and save and hold the Company and its officers, stockholders,
directors, employees and agents harmless from and against any and all Claims
resulting from or arising out of the Manager's negligence, gross negligence,
recklessness or willful misconduct under this Agreement. The indemnifying party
shall advance all costs and expenses incurred by the indemnified party in
defending any claim in advance of the final disposition thereof; provided,
however, that if it is ultimately determined by a court of competent
jurisdiction (from whose decision no appeals may by taken or the time for appeal
has lapsed) that the indemnified party was not entitled to indemnity therefor
hereunder, the indemnified party shall repay all amounts so advanced. The
indemnified party shall deliver to the indemnifying party statements of the
costs and expenses so incurred not more frequently than monthly; and the
indemnifying party shall pay to the indemnified party the amounts shown on such
statements to be due within fifteen (15) days after receipt of such statements.

      (b)   Procedure. Any party asserting a right to indemnification under this
Section shall so notify the other in writing. If the facts giving rise to such
indemnification involve any actual or threatened claim or demand by or against a
third party, the indemnifying party shall be entitled to control the defense or
prosecution of such claim or demand in the name of the indemnified party, if the
indemnifying party notifies the indemnified party in writing of its intention to
do so within twenty days after its receipt of notice from the indemnified party.
The indemnified party shall have the right, however, at its own expense, to
participate in such proceeding through counsel of its own choosing. Each
indemnified party shall, to the extent requested by the indemnifying party and
at the indemnifying party's expense, cooperate in the prosecution or defense of
any claim and shall furnish any records, information, and testimony and attend
any conferences, discovery proceedings, hearings, trials and appeals that the
indemnifying party reasonably requests in connection therewith.

      (c)   Survival.  The provisions of this Section shall survive the
termination or expiration of the term of this Agreement.

11.   Assignment of Rights.

      (a)   Consent Required. Except as otherwise provided in this Agreement,
neither the Manager nor the Company shall assign its rights under this
Agreement, or the privileges hereby granted, without the consent of the other
party, except that either party may, without the consent of the other party,
assign its rights under this Agreement, or the privileges hereby granted, to a
controlled subsidiary; provided, however, that the assignor shall remain
secondarily liable for payment and performance by its subsidiary hereunder.

      (b)   Assignments in Writing. Any permitted assignment by the Manager or
the Company shall be in writing and shall state the terms and conditions of the
assignment. The assignee shall agree in writing at the time of the assignment to
keep and abide by all the terms and conditions of this Agreement.
<PAGE>

12.   Force Majeure. Neither party shall be liable to the other for any failure
of performance under this Agreement due to causes beyond its control, including
fire, flood or other catastrophes; any law, order, regulation, direction,
action, or request of the United States Government, or of any other government,
including state and local governments having or claiming jurisdiction over such
party, or of any department, agency, commission, bureau, corporation or other
instrumentality of any one or more of these federal, state or local governments,
or of any civil or military authority; national emergencies; unavailability of
materials or rights-of-way; insurrections; riots; wars; or strikes, lock-outs,
significant work stoppages or other significant labor difficulties. In the event
of any delay resulting from such causes, upon notice to the other party promptly
following the occurrence of the event giving rise to the delay, the time for
performance hereunder shall be extended for a period of time reasonably
necessary to overcome the effects of such delay.

13.   Miscellaneous.

      (a)   Counterparts. This Agreement may be executed in counterparts each of
which shall be deemed an original and all of which together shall constitute one
and the same instrument; and, in pleading or proving any provision of this
Agreement, it shall not be necessary to produce more than one counterpart.

      (b)   Captions; Gender. Section headings contained in this Agreement are
for reference purposes only and shall not in any way affect the meaning or
interpretation of this Agreement. Whenever used herein the singular number shall
include the plural, the plural shall include the singular, and the use of any
gender shall include all genders.

      (c)   Governing Law and Binding Effect. This Agreement shall be governed
by and construed and enforced in accordance with the internal laws of the
Commonwealth of Pennsylvania applicable to contracts made and to be performed
entirely therein without giving effect to the conflicts of laws principles
thereof. This Agreement shall also be governed by and construed and enforced in
accordance with applicable federal law. This Agreement shall bind and inure to
the benefit of each of the parties and their permitted successors and assigns.

      (d)   Waivers and Amendments. This Agreement may not be amended nor shall
any waiver, change, modification, consent or discharge be effected, except by an
instrument in writing adopted, in the case of an amendment, by each party and,
in the case of a waiver, consent or discharge, by the party against whom
enforcement of such instrument is sought. Any consent by either party to, or
waiver of, a breach by the other party shall not constitute a waiver or consent
to any subsequent or different breach. If either party fails to enforce a breach
of this Agreement by the other party, such failure to enforce shall not be
considered a consent to or a waiver of that breach or of any subsequent breach
for any purpose whatsoever.

      (e)   Relationship Not a Company. The Manager shall serve as an
independent contractor in rendering the services set forth herein and its
employees shall not be employees of the Company. The Manager, shall take no
action, nor omit to take any action, that would lead a reasonable person to
believe that the Manager has any relationship to the Company other than that of
an agent to its principal.
<PAGE>

      (f)   Notices. All notices and other communications hereunder shall be in
writing and deemed to have been duly given if: (a) mailed via first class,
registered or certified mail, return receipt requested, postage prepaid; (b)
delivered by courier or overnight courier providing written evidence of receipt
for hand delivery; or (c) transmitted via telecopy:

      To Manager:

      Adelphia Business Solutions Operations, Inc.
      1 North Main Street
      Coudersport, Pennsylvania 16915
      Attention:  John Glicksman, Esq.
      Telecopy:   814-274-8243

                  With a copy to:

                  Adelphia Business Solutions Operations, Inc.
                  1 North Main Street
                  Coudersport, Pennsylvania 16915
                  Attention:  Ed Babcock
                  Telecopy:   814-274-9863

      To Company:

      ACC Operations, Inc.
      One North Main Street
      Coudersport, PA 16915
      Attention:  Timothy Rigas
      Telecopy:   814-274-0413

                  With a copy to:

                  Adelphia Communications Corporation
                  1 North Main Street
                  Coudersport, Pennsylvania 16915
                  Attention:  Colin Higgin, Esq.
                  Telecopy:   814-274-6586

Either party hereto may change its mailing address by giving notice to the other
pursuant to the provisions of this Subsection.

      (g)   Disclaimers. THERE ARE NO AGREEMENTS, WARRANTIES OR REPRESENTATIONS,
EXPRESS OR IMPLIED EITHER IN FACT OR BY OPERATION OF LAW, STATUTORY OR
OTHERWISE, INCLUDING WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR
PURPOSE OR USE, EXCEPT THOSE EXPRESSLY SET FORTH HEREIN.

      (h)   Entire Agreement. This Agreement constitutes the entire agreement
between the Manager and the Company with respect to the subject matter hereof
and supersedes all prior agreements and understandings between them as to such
subject matter; and there are no restrictions, agreements, arrangements, or
undertakings, oral or written, between the Manager and the Company relating to
the transactions contemplated hereby which are not fully expressed or referred
to herein.
<PAGE>

      (i)   Severability. If any term or other provision of this Agreement is
invalid, illegal or incapable of being enforced by any rule of law or public
policy, all other conditions and provisions of this Agreement shall nevertheless
remain in full force and effect so long as the economic or legal substance of
the transactions contemplated hereby is not affected in any manner adverse to
either party. Upon such determination that any term or other provision is
invalid, illegal or incapable of being enforced, the parties hereto shall
negotiate in good faith to modify this Agreement so as to effect the original
intent of the parties as closely as possible in an acceptable manner to the end
that transactions contemplated hereby are fulfilled to the greatest extent
possible.

      (j)   Further Assurances. Each party agrees to execute all such further
instruments and documents and to take all such further actions as the other
party may reasonably request in order to effectuate the terms and purposes of
this Agreement.

      (k)   Regulatory Approval. The effectiveness of this Agreement, and the
obligations of each party herein, are expressly subject to receipt of all
regulatory approvals necessary to conduct the business of the Company as it
relates to the Network.

                 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
<PAGE>

      IN WITNESS WHEREOF, the parties have caused this Agreement to be executed
and delivered as of the date first above written.

                                  ADELPHIA BUSINESS SOLUTIONS OPERATIONS, INC.

                                     By:    /s/ James P. Rigas
                                            ------------------
                                     Name:  James P. Rigas
                                     Title: President

                                  ACC OPERATIONS, INC.

                                     By:    /s/ Timothy J. Rigas
                                            --------------------
                                     Name:  Timothy J. Rigas
                                     Title: Chief Financial Officer

<PAGE>

                                   SCHEDULE I

                                 Municipalities

Boulder, Colorado
Colorado Springs, Colorado
Denver, Colorado
Fort Collins, Colorado
Pueblo, Colorado

<PAGE>

                                   SCHEDULE II

                                    Services

1.    Scope of Services.  The Manager shall provide the services, technical
assistance, personnel, and expertise for:

      1.1.  the management, sales and marketing, regulatory processing,
accounting, and financial reporting for the Network, as more particularly
described in 3;

      1.2.  the engineering, design, planning, construction, maintenance, and
operation of the Network, as more particularly described in 4;

      1.3.  processing orders for service, billing for services provided by
the Network and collection of receivables for the Network, as more
particularly described in 5; and

      1.4.  monitoring and controlling the Network, as more particularly
described in 6.

2.    Types of Services Generally.  The Manager shall:

      2.1.  design and supervise the implementation of systems, facilities
and procedures for the implementation of the services described in this
Schedule;

      2.2.  train the personnel responsible for providing these services;

      2.3.  provide continuing oversight of the operations and management of
the Network; and

      2.4.  provide periodic recommendations to the Company regarding the
operations and management of the Network.

3.    Management Services.  The Manager shall provide the following services
with respect to the management, marketing, regulatory processing, accounting
and financial reporting for the Network:

      3.1.  Sales & Marketing. The Manager shall provide to the Company
continuing recommendations, advice and assistance regarding sales and marketing
plans and strategy for the Network. The Manager shall provide sales and
marketing supervisory personnel and develop appropriate marketing and sales
materials and presentations. The Manager shall negotiate agreements on behalf of
the Company with the major interexchange carriers and shall use its best efforts
to maintain relations between the Company and these carriers.

      3.2.  Regulatory Support. The Manager shall prepare and file, or cause to
be prepared and filed, all appropriate regulatory filings, certificates, tariffs
and reports that are required by local, state and federal governmental
regulatory bodies in connection with the operation of the Network for review and
execution by the Company. The Manager shall monitor the tariff filings including
pricing of competitive services and regulatory activities of the dominant local
telephone company in the Network's service area and recommend appropriate
changes to the Company's regulatory documents, as well as make recommendations
for other action by the Company.
<PAGE>

      3.3.  Management. The Manager shall assist the Company in hiring, training
and developing appropriate management and administrative personnel. The Manager
shall provide all human resources functions for these employees including
payroll and benefit administration. The Manager shall provide advice concerning
appropriate management strategies to assist the Company in achieving its
financial and strategic objectives. The Manager shall consult with and advise
the Company and its personnel with regard to the administration, supervision and
control of the day-to-day operation of the Network.

      3.4.  Accounting.  The Manager shall develop, implement and maintain
systems and procedures for purchasing, accounting, tax application,
bookkeeping, cash management and treasury functions.

      3.5.  Budgets. The Manager shall prepare and, on or prior to December 1 of
each calendar year, submit to the Company for approval, operating and capital
budgets relating to the operation of the Network (the "Budgets") for the next
succeeding calendar year except that the Budgets for 2001 shall be prepared and
delivered concurrently with the execution of the Management Agreement. The
Budgets shall include adequate provision for the construction of the Network.
The Company shall review such Budgets and, after consultation with the Manager,
shall make such changes therein, consistent with the construction and operation
of the Network, as it shall deem necessary or appropriate. Notwithstanding
anything to the contrary contained elsewhere herein, the Manager shall use its
best efforts to cause the Network to be operated in accordance with the Budgets
as so approved by the Company and shall not make, or commit the Company to make,
expenditures on behalf of the Company or the Network that exceed the
expenditures established in the Budgets without the prior written consent of the
Company.

4.    Engineering Support Services. The Manager shall provide the following
services with respect to the engineering, design, planning, construction,
maintenance and operation of the Network. This Network is to include but not be
limited to: generic switch updates (Retrofits), software updates BWM's, hot
slides, switch equipment upgrades, datebase translation, AIN switched date
services, STP management, switch balance, and switch loading:

      4.1.  Engineering and Design. The Manager shall advise and make
recommendations to the Company regarding system engineering, system design and
overall technical guidance with regard to the Network deployment, growth, RSM
rehome, power, powering redundancies, call route diversity, evaluation including
powering of the Network, selection and purchase of appropriate electronic
equipment and other supporting infrastructure for the Network. The Manager shall
maintain databases and records of all installed circuits and fiber plant.

      4.2.  Central Office Equipment.  The Manager shall oversee the
development of systems for the Company that will facilitate the installation
of one or more central offices for the provision of Company services,
including the planning and implementation for future growth.
<PAGE>

      4.3.  Customer Premises Equipment. The Manager shall oversee the
development of systems for the Company that will facilitate the installation of
customer premises equipment and coordinate the relationship between end users
and interexchange telecommunications companies to facilitate the use of the
Network, including the planning and implementation for future growth.

      4.4.  Network Development. The Manager shall provide recommendations and
advice to the Company concerning the overall development of the Network,
including Network operating procedures, Network expansion and rights-of-way
acquisition and systems for the continuing care and maintenance of the fiber
optic cable, telecommunications and business switch equipment and appurtenances
of the Network.

      4.5.  Network Personnel.  The Manager shall recruit and train all
technical personnel necessary to operate and maintain the Network and ensure
that these personnel are capable of operating and maintaining the fiber
equipment and infrastructure used in the Network.

5.    Service Order, Billing and Collection Support Services.  The Manager
shall provide the following services with respect to processing orders for
service, billing for services provided by the Network and collection of
receivables for the Network:

      5.1.  Service Order System.  The Manager shall develop, implement and
maintain a service ordering system and associated procedures capable of
processing service requests from both interexchange carders and end user
customers for the Network.

      5.2.  Billing System. The Manager shall assist in the development and
implementation of a billing system and associated procedures capable of
processing service requests from both interexchange carriers and end user
customers for the Network, which billing system and procedures shall comply with
applicable regulations, if any.

      5.3.  Collection System. The Manager shall develop, implement and maintain
procedures for the collection of outstanding accounts receivable, in accordance
with all applicable federal and state laws, rules and regulations, from both
interexchange carriers and end user customers for the Network. The Manager shall
perform credit checks to determine the credit worthiness of new customers.

      5.4.  Record Keeping.  The Manager shall prepare and maintain
appropriate records associated with providing the services described above.

6.    Network Monitoring Services.  The Manager shall provide network
monitoring services from its NCC in Coudersport, Pennsylvania, which shall be
staffed at all times by employees of the Manager.

The Manager shall provide the following services with respect to monitoring and
controlling the Network:

      6.1.  Monitoring.  The Manager shall provide ongoing monitoring of the
Company's central offices, buildings, switches and circuits that are
operational on the Network to ensure that the Network and its components are
functioning properly.
<PAGE>

      6.2.  Maintenance.  The Manager shall provide routine maintenance and
diagnostic tests to identify potential problems and areas for improvement.

      6.3.  Trouble Calls.  The Manager shall receive, track and coordinate
trouble calls from customers, interexchange carriers and the Company's
employees.

      6.4.  Remote Repairs.  The Manager shall correct and repair any trouble
situations that may be corrected or repaired from a remote location.

      6.5.  Dispatch.  The Manager shall coordinate the dispatch of local
employees or contractors of the Company or the Manager to correct trouble and
maintenance situations that require local, on-site support.

      6.6.  New Services.  The Manager shall assist in the provision of new
services in coordination with local employees of the Company.

7.    Accounts.  The Manager and the Company shall use good faith efforts to
agree on methods of cash management functions, including, but not limited to,
collection of revenues and disbursements for regular recurring operating
expenses of the Network, as well as extraordinary expenses.

<PAGE>

Schedule of Similar Agreements

In accordance with Instruction 2 to Regulation SK 601(a), following is a list of
similar agreements to Exhibit 10.17:

Management Agreement between Adelphia Business Solutions Operations, Inc. and
ACC Operations, Inc. for the management of a telecommunications network in
California.

Management Agreement between Adelphia Business Solutions Operations, Inc. and
ACC Operations, Inc. for the management of a telecommunications network in
Ohio.

Management Agreement between Adelphia Business Solutions of Virginia, LLC and
ACC Operations, Inc. for the management of a telecommunications network in
California.New Page 1

	
      EMPLOYMENT AGREEMENT

	
             This Employment Agreement
      (the "Agreement") is made this 22nd day of December, 2000 by and
      between Steiner Leisure Limited, a Bahamas international business company
      (the "Company"), and Leonard Fluxman ("Employee").

	
      W I T N E S S E T H:

	
             WHEREAS, the Company and
      Employee desire to provide for the terms of the services to be performed
      by Employee for the Company.

	
       

             NOW THEREFORE, in
      consideration of the premises and mutual agreements hereinafter contained,
      the parties hereto agree as follows:

	
             1.
             Employment, Duties.
      Effective on the Effective Date (as defined in Section 2, below), the
      Company hereby employs Employee as President and Chief Executive Officer
      of the Company and Employee hereby accepts such employment. Employee shall
      be the officer of the Company principally responsible for the Company's
      day to day executive decision-making and strategic planning and shall have
      such duties and responsibilities consistent with the foregoing and
      otherwise consistent with Employee's position as may be determined from
      time to time by the Board of Directors of the Company (the "Board"),
      including duties with respect to affiliates (as defined in Rule 405 under
      the Securities Act of 1933, as amended) of the Company (each, an "Affiliate").
      It is the intention of the parties hereto that, during the term of this
      Agreement, Employee shall be elected and serve as a member of the Board,
      and as a member of the executive committee of the Board if such a
      committee should be established. During the term of this Agreement,
      Employee shall devote all his business time and effort to the conduct of
      his duties hereunder, provided that Employee may (i) serve on corporate,
      civic and charitable boards or committees, (ii) provide services on a pro
      bono basis to civic and charitable organizations and (iii) attend to his
      personal investments, so long as such activities do not interfere with the
      performance of Employee's responsibilities as an employee of the Company
      in accordance with this Agreement and are consistent with the Company's
      policies. The Company agrees that, to the extent that any such activities
      have been conducted by Employee prior to the date of this Agreement, the
      continued conduct of such activities (or the conduct of activities similar
      in nature and scope thereto) subsequent to such date shall not thereafter
      be deemed to interfere with the performance of Employee's responsibilities
      to the Company or to be inconsistent with the Company's policies. The
      Company also agrees that Employee may receive compensation in connection
      with his service on corporate boards, without set-off, adjustment or
      diminution of his salary, bonus or any other rights hereunder.

	
       
	
       

	
             2.
             Effective Date; Term.
      This Agreement is for a term commencing January 1, 2001 (the
      "Effective Date") and terminating on December 31, 2005, unless
      terminated sooner in accordance with the terms and conditions in Section
      5, below.

	
             3.
             Compensation.
	
       

	
                 (a)   Salary
      and Bonus. Except as otherwise provided herein, the Company (or any
      Affiliate) shall pay to Employee during the term hereof compensation as
      described in this Section 3(a), all of which shall be subject to such
      deductions as may be required by applicable law or regulation:

	
      (i)
	
      Base Salary. (A) a base salary at the rate of not less than Three
      Hundred Ninety Thousand Dollars (U.S. $390,000.00) per year for the
      balance of the year 2000 and (B) a base salary at the rate of not less
      than Three Hundred Ninety Thousand Dollars (U.S. $390,000.00) per year for
      each calendar year ("Year") thereafter during the term of
      this Agreement, subject to review annually and possible increase in the
      sole discretion of the Board by the Board, payable in bi-weekly
      installments (the "Base Salary").

	
      (ii)
	
      Incentive Bonus. (A) With respect to each Period (as defined below)
      and Year during the term hereof, additional cash compensation as described
      in this Section 3 (a) (ii) (the "Incentive Bonus") based
      on a budget for each Year hereunder, including budgets for each Period (as
      defined below) within such Year, which budget includes an estimate of the
      Net Earnings (as defined below) for each such Period and for such Year and
      which budget shall have been approved for the purpose of the compensation
      payable hereunder by the Compensation Committee of the Board (the "Budget").
      At the end of the first Period, if the Company shall have met or exceeded
      the Net Earnings set forth in the Budget ("Budgeted Net Earnings")
      for such date, Employee shall be entitled to receive an amount equal to
      0.25 times the Base Salary then in effect for the Year in question; provided,
      however, that the amount described in this sentence shall not exceed
      five percent (5.0%) of the Budgeted Net Earnings for such Period. At the
      end of the second Period, if the Company shall have met or exceeded the
      Budgeted Net Earnings for such date (cumulatively for the Year to date,
      and not solely for the second Period - "cumulatively" in this
      sentence), Employee shall be entitled to receive an amount equal to 0.50
      times the Base Salary then in effect for the Year in question, less the
      amount paid pursuant to the prior sentence; provided, however, that
      the amount described in this sentence, together with such amount for the
      first Period, shall not exceed five percent (5.0%) of the Budgeted Net
      Earnings for the second Period (cumulatively). At the end of the third
      Period, if the Company shall have met or exceeded the Budgeted Net
      Earnings for such date (cumulatively for the Year to date, and not solely
      for the third Period - "cumulatively" in this sentence),
      Employee shall be entitled to receive an amount equal to 0.75 times the
      Base Salary then in effect for the Year in question, less the amounts paid
      pursuant to each of the prior two sentences; provided, however,
      that the amount described in this sentence, together with such amounts for
      the first and second Periods, shall not exceed five percent (5.0%) of the
      Budgeted Net Earnings for the third Period (cumulatively). Any amount
      which the Employee is entitled to receive pursuant to the preceding three
      sentences shall be payable one-half within sixty (60) days after the end
      of the Period in question and one-half within sixty (60) days after the
      end of the Year in question. At the end of the fourth Period, if the
      Company shall have met or exceeded the Budgeted Net Earnings for such date
      (cumulatively for the Year to date, and not solely for the fourth Period
      -"cumulatively" in this sentence), Employee shall be entitled to
      receive, within sixty (60) days after the end of such Period, an amount
      equal to the Base Salary then in effect for the Year in question, less the
      amounts paid pursuant to the second, third and fourth sentences of this
      Section 3(a)(ii); provided, however, that the amount described in this
      sentence, together with such amounts for, the first, second and third
      Periods, shall not exceed five percent (5.0%) of the Budgeted Net Earnings
      for the fourth Period (cumulatively). Notwithstanding the foregoing, (1)
      if the amount that would be payable (without reference to the 5.0% limit
      for each Period described above) to Employee based on the formula set
      forth in this Section 3 (a) (ii) with respect to any Period is in excess
      of five percent (5%) of the Budgeted Net Earnings for such Period
      (cumulatively for the Year to date and not solely for the Period in
      question), Employee shall not be entitled to receive any amount pursuant
      to this Section 3 (a)(ii) for such Period and (2) except as provided in
      Section 5, below, Employee shall only be entitled to receive an Incentive
      Bonus payment with respect to a Period if he is employed hereunder on the
      last day of such Period. For purposes of this Section 3(a)(ii),
      "Period" shall mean each of the four fiscal quarters of the
      Company during each Year hereunder. For purposes of this Section 3(a)(ii),
      "Net Earnings" shall mean earnings of the Company before
      taxes, interest, depreciation and amortization, as determined in
      accordance with generally accepted accounting principles consistently
      applied. In determining whether the Budgeted Net Earnings have been met or
      exceeded for any Period or Year, reference shall be made to the Company's
      Net Earnings for such Period or Year as set forth in Company's Quarterly
      Report on Form 10-Q for such Period or the Company's Annual Report on Form
      10-K for such Year, as the case may be. For purposes of calculating the
      Incentive Bonus, the Base Salary shall be the Base Salary then in effect
      during the Period in question. For any Period during which there is more
      than one Base Salary in effect, the amount of any Incentive Bonus payable
      for that quarter shall be calculated so as to reflect the time that each
      of such multiple Base Salaries was in effect.

	
                 (b)   Disability
      Insurance. During each Year during the term hereof, Employee shall be
      paid an amount to be used toward the payment of the premium on a
      disability insurance policy (a "Policy") covering
      Employee, upon delivery to the Company of evidence reasonably satisfactory
      to the Company of the purchase by Employee of a Policy with an annual
      premium due during such Year in an amount at least equal to the amount
      requested by Employee under this Section 3(a)(iii) (the "Disability
      Payment Amount"). The Disability Payment Amount shall be amount that
      is proportionate (based on the relative amounts of the respective Base
      Salaries) to the amount received by Employee in that regard for 2000. The
      Disability Payment Amount shall be increased proportionately to the
      extent, and at the time of any increase in the Base Salary during the term
      hereof.

	
                 (c)   Deferred
      Compensation. Employee may elect, in accordance with the provisions of
      any deferred compensation plan agreement that may be entered into between,
      Employee and the Company (a "Deferred Plan"), to defer
      all or a portion of the amount of the Incentive Bonus payable to Employee.
      Any and all amounts that Employee elects to defer shall be held and
      administered in accordance with the terms and provisions of any such
      Deferred Plan.

	
                 (d)   Share
      Options.   Upon the date hereof in connection herewith, and
      in addition to any share options that may be granted to Employee as part
      of the Company's annual grant of options to officers and employees,
      Employee shall be granted share options (the "Options")
      to purchase three hundred seven thousand eight hundred sixty (387,860) of
      the Company's common shares. The Options shall expire on the tenth
      anniversary of the date of grant, shall vest cumulatively at the rate of
      one-third thereof on each of the first three anniversaries of the date of
      grant, and shall be exercisable at an exercise price per share equal to
      the fair market value of a share of the Company's common stock on the date
      of grant; provided, however, that, subject to the one year post-grant
      employment requirement of Section 6.3 of the Company's Amended and
      Restated 1996 Share Option and Incentive Plan (the "Plan"), any
      unvested portion of the Option shall vest immediately in the event of (i)
      Employee's death or Disability (as hereinafter defined), (ii) Employee's
      retirement or early retirement in accordance with the policies of the
      Company, (iii) Employee's termination by the Company without Cause (as
      hereinafter defined), (iv) Employee's termination of his employment for
      Good Reason (as hereinafter defined), or (v) a Change in Control (as
      hereinafter defined). Such Options shall be granted under the Plan and
      shall be "incentive stock options" within the meaning of Section
      422 of the Internal Revenue Code of 1986, as amended (the
      "Code") to the extent that the Options satisfy the requirements
      of Section 422 without any revision in the terms of the s as set forth
      above. Upon the exercise of the Options and of any other share options
      granted by the Company to Employee on or after the date hereof, payment of
      the purchase price for the shares of the Company to be purchased pursuant
      to such exercise and all applicable withholding taxes may be made in cash
      of at least the par value per share, with the remainder of the purchase
      price and all applicable withholding taxes being borrowed from the
      Company, such borrowing to be evidenced by the delivery to the Company of
      a promissory note which shall provide that (A) the loan shall be a full
      recourse loan, (B) interest shall be payable annually at the applicable
      federal rate, as determined under Section 1274(d) of the Code, and (C) the
      principal amount of the loan shall be paid on the fifth anniversary of the
      date on which such loan is made. In the event that Rule 144 limits the
      number of shares that may be sold in any three-month period, Employee
      shall have the right to require the Company to file and keep effective a
      resale registration statement covering any shares of common stock
      purchased pursuant to the Options (or pursuant to any other share option
      granted by the Company). In addition to the foregoing, if Employee's
      employment with the Company terminates for any reason and at the time of
      such termination the common stock of Steiner Education Group, Inc.
      ("Steiner Education") is not registered under Section 12 of the
      Securities Exchange Act of 1934, as amended, and is not publicly traded,
      then Employee (or Employee's estate in the case of Employee's death) shall
      have the right to require the Company to purchase, or to cause Steiner
      Education to repurchase, any shares of stock of Steiner Education held by
      Employee at the time of such termination, for a purchase price equal to
      the then value of such stock. The value of such stock shall be as agreed
      upon between Employee (or his estate) and Steiner Education, determined in
      accordance with customary investment banking methodology, or, if the
      parties cannot reach an agreement as to such value, then as determined by
      an independent investment banking firm selected by Employee (or his
      estate), and reasonably acceptable to the Company, with the costs in
      connection with such valuation being borne by the Company.

	
                 (e)   Life
      Insurance. During each year during the term hereof, the Company shall
      provide Employee with term life insurance with a death benefit equal to
      two times the then current Base Salary. The Company shall pay all premiums
      with respect to such life insurance. Such life insurance may be provided
      either through the Company's group life insurance programs, by an
      individual policy, or by a combination of both group and individual
      policies.

	
                 (f)   Other
      Benefits. During the term hereof, the Company shall provide to
      Employee all other benefits currently provided to the executive officers
      (as defined for purposes of the Securities Exchange Act of 1934, as
      amended) of the Company, as well as those which the Company may, in the
      future, provide to its executive officers, including, without limitation,
      life insurance, medical coverage, benefits under any 401(k) plan of the
      Company or any Affiliate and the right to participate in share option or
      similar plans. The Company also shall provide Employee with a private
      office and an annual allowance for the use by Employee in purchasing or
      leasing an automobile and for the payment of insurance, maintenance and
      other expenses in connection with such automobile as reflected in the
      Budget.

	
                 (g)   Expense
      Reimbursement; Relocation. The Company shall reimburse Employee for
      all ordinary and necessary business expenditures made by Employee in
      connection with, or in furtherance of, his employment hereunder upon
      presentation by Employee of expense statements, receipts, vouchers or such
      other supporting information as may from time to time be reasonably
      requested by the Board. When traveling for business of the Company,
      Employee at his sole discretion and at the Company's expense, shall travel
      via first class accommodations. The Company shall not, without Employee's
      prior written consent, relocate Employee more than 50 miles from the
      Company's principal place of business in Miami, Dade County, Florida.

	
             (4)       Vacation.
      Employee shall be entitled to (i) four (4) weeks paid vacation per Year
      (the "Vacation Days") and (ii) additional Vacation Days
      on each day that is a United States federal holiday. Employee shall use
      reasonable efforts to take at least two (2) weeks of vacation per year.
      The vacation provided for in this Section 4 shall be coextensive with, and
      not cumulative with, vacations allowed pursuant to any employment
      agreements or other arrangements with any Affiliates of the Company. The
      Company shall pay to Employee on or before January 30th of the following
      Year, an amount representing the Base Salary (at the rate in effect for
      the Year during which the Vacation Days were to have been taken) with
      respect to the Vacation Days not taken by Employee during a Year;
      provided, however, that no payment shall be made with respect to more than
      ten (10) Vacation Days for any one Year. In the event that Employee's
      employment hereunder is terminated other than pursuant to Section 5(c)
      below, then the Company shall pay to Employee within fifteen (15) days
      after the date of such termination an amount representing the Base Salary
      (at the rate in effect for the Year during which such termination occurs)
      with respect to the Vacation Days not taken by Employee during that Year,
      pro rated, if appropriate, to reflect the Year in question through the
      termination date being less than a full year.

	
             (5)       Termination
      and Non-Renewal.

	
                 (a)   Death.
      In the event of Employee's death during the term hereof, the Company shall
      have no further obligations to make payments or otherwise under this
      Agreement, except that the Company shall pay to Employee's estate (i)
      within ten (10) days after the date of Employee's death (A) any unpaid
      accrued Base Salary pursuant to Section 3(a)(i), above, and any Incentive
      Bonus pursuant to Section 3(a)(ii), above, in each case to which Employee
      was entitled on the date of death pursuant to the terms of those Sections,
      and (ii) within sixty (60) days after the end of the year in which
      Employee died, if the Budgeted Net Earnings are met for the year in
      question, an amount equal to the Incentive Bonus pursuant to Section
      3(a)(ii), above, which would have been payable to Employee for the quarter
      during which Employee died had Employee been employed by the Company on
      the last day of that quarter (including the amount that would have been
      payable after the end of the year in question). In addition, the Company
      shall pay to Employee's surviving spouse, or to Employee's estate if there
      is no surviving spouse, an amount equal to the sum of (i) 100% of Base
      Salary, at the annual rate in effect on the date of Employee's death, and
      (ii) the "Average Bonus" (as defined below), such sum to be
      payable in bi-weekly installments for a period of one year following
      Employee's death. Employee's estate shall be entitled to immediate vesting
      of the Options and any share options held by Employee on the date of his
      death which were granted on or after the date hereof, all of which shall
      remain exercisable until the earlier of one year following the Employee's
      death or the date (or dates) the Option (and other options) would
      otherwise expire in the absence of Employee's death. For purposes of this
      Agreement, the term "Average Bonus," when calculated with
      reference to any date, shall mean, if such date is on or prior to June 30
      of the Year in which such date occurs, the arithmetic average of
      Employee's annual Incentive Bonus for the three preceding Years; or, if
      such date is after June 30 of such Year, the arithmetic average of
      Employee's Incentive Bonus for such Year (calculated on an annualized
      basis based on the Period in which such date occurs and the preceding
      Periods of such Year) and for the two preceding Years.

      In any case under this Section 5 where Average Bonus is
      a component of a payment due hereunder before the time that such Average
      Bonus shall have been determined in accordance with this Agreement (the
      "Determination Time"), the Company may include in such payment,
      on account of such component, its good faith estimate of the amount of
      such component (but not less than 90% of the amount which would have been
      due had such Incentive Bonus been the same as Employee's Incentive Bonus
      for the preceding Year). Promptly after Determination Time, the Company
      shall pay Employee (or his surviving spouse or estate, as the case may be)
      any balance due, and Employee (or such person) shall refund to the Company
      any excess payment.

	
                 (b)   Disability.
      If Employee becomes physically or mentally disabled during the term hereof
      so that he is unable to perform the services required of Employee pursuant
      to this Agreement for a period of 180 consecutive days (a "Disability"),
      the Company, at its option, may terminate Employee's employment hereunder
      (the date of such termination, the "Disability Date"),
      and, thereafter, Employee shall not be deemed to be employed hereunder
      (except that Employee's obligations under Section 6, below, shall remain
      in full force and effect) and the Company shall have no further
      obligations to make payments or otherwise under this Agreement, except as
      provided in this Section 5(b). In determining Disability under this
      Section 5(b) the Company shall rely upon the written opinion of the
      physician regularly attending Employee in determining whether a Disability
      is deemed to exist. If the Company disagrees with the opinion of such
      physician, the Company may choose a second physician, the two (2)
      physicians shall choose a third physician, and the written opinion of a
      majority of the three (3) physicians shall be conclusive as to Employee's
      Disability. The expenses associated with the utilization of any physician
      other than the physician regularly attending Employee shall be borne
      solely by the Company. Employee hereby consents to any required medical
      examination and agrees to furnish any medical information requested by the
      Company and to waive any applicable physician/patient privilege that may
      arise because of such determination. In the event of a Disability, the
      Company shall pay to Employee (i) within ten (10) days after the
      Disability Date (A) any unpaid accrued Base Salary pursuant to Section
      3(a)(i), above, and (B) any Incentive Bonus payable pursuant to Section
      3(a)(ii) above (including the amount that would have been payable at the
      end of the Year in question), in each case to which Employee was entitled
      on the Disability Date pursuant to the terms of those Sections, and (C)
      any amount due to Employee as of the Disability Date as reimbursement of
      expenses under Section 3(f) above, and (ii) within sixty (60) days after
      the end of the Year in which the Disability Date occurs, if the Budgeted
      Net Earnings are met for the Year in question, an amount equal to the
      Incentive Bonus pursuant to Section 3(a)(ii), above, which Employee would
      have been entitled to receive during the Period in which the Disability
      Date occurs had Employee been employed by the Company on the last day of
      that Period (including the amount that would have been payable after the
      end of the Year in question). In addition, the Company shall pay Employee
      an amount equal to the sum of (i) 100% of Base Salary, at the annual rate
      in effect on Employee's Disability Date, and (ii) the Average Bonus, such
      sum to be payable in bi-weekly installments for a period of one year
      following Employee's Disability Date. Employee shall also be entitled to
      immediate vesting of the Options and any other share options held by
      Employee on the Disability Date and which were granted on or after the
      date hereof, all of which shall remain exercisable until the earlier of
      one year following Employee's Disability Date and the date (or dates) the
      Options (and such other options) would otherwise expire in the absence of
      Employee's Disability. Nothing in this Agreement is intended to cause the
      Company to be in violation of the Americans with Disabilities Act.

       

	
                 (c)   For
      Cause by Company. The Company may at any time during the term hereof,
      terminate Employee's employment hereunder for Cause. For purposes of this
      Agreement, "Cause" shall mean the occurrence of any of
      the following events: (i) Employee's continued failure to substantially
      perform Employee's duties with the Company (other than any such failure
      resulting from Employee's incapacity due to physical or mental illness or
      injury); (ii) a violation by Employee of any written policy or directive
      of the Company applicable to Employee specifically, or to officers or
      employees generally, the violation of which policy or directive is
      materially and demonstrably injurious to the Company; (iii) Employee's
      excessive alcoholism or drug abuse that substantially impairs the ability
      of Employee to perform Employee's duties hereunder; (iv) continued gross
      negligence by Employee in the performance of his duties under this
      Agreement that results in material and demonstrable damage to the Company
      or any Affiliate; (v) violation by Employee of any lawful direction from
      the Board provided such direction is not inconsistent with Employee's
      duties and responsibilities to the Company hereunder; (vi) fraud,
      embezzlement or other criminal conduct by Employee that results in
      material and demonstrable damage to the Company; (vii) intentional or
      reckless conduct that results in material and demonstrable damage to the
      Company; or (viii) the committing by Employee of an act involving moral
      turpitude that results in material and demonstrable damage to the Company;
      provided, however, that in the case of any of the events described in
      clauses (i), (ii) (iv) (v) or (vii) above, such event shall not constitute
      Cause hereunder unless and until there is given to Employee by the Company
      a written notice which sets forth the specific respects in which it
      believes that Employee's conduct constitutes Cause hereunder, which
      conduct is not cured within ten (10) days of written notice thereof. If
      the Company terminates Employee's employment under this Agreement pursuant
      to this Section 5(c), the Company shall have no further obligations to
      make payments or otherwise under this Agreement, except that Employee
      shall be entitled to receive any (i) unpaid accrued Base Salary pursuant
      to Section 3(a)(i), above, through the date that is thirty (30) days after
      the date that the Company gives written notice of such termination to
      Employee (the "Termination Notice Date"), (ii) Incentive
      Bonus that is accrued and unpaid as of the date of such termination and
      (iii) any other amounts due to Employee under this Agreement as of the
      date of termination, including, but not limited to, reimbursement of
      expenses under Section 3(f), above, in each case within sixty (60) days
      after the Termination Notice Date. Notwithstanding the foregoing, Employee
      shall, for all purposes, cease to be deemed to be employed by the Company
      as of the date of any termination of Employee pursuant to this Section
      5(c), irrespective of whether written notice of termination is given on
      such date.

	
                 (d)   For
      Good Reason by Employee. Employee may at any time during the term
      hereof, without any prior notice, terminate this Agreement for Good
      Reason. For purposes of this Agreement, "Good Reason"
      shall mean the occurrence of any of the following events: (i) a material
      breach by the Company of this Agreement (including, without limitation;
      the Company's relocation of Employee in breach of Section 3(f) above; and
      the Company's failure to pay any compensation to Employee more than ten
      (10) days after the date such payment is due); (ii) a reduction in
      Employee's Base Salary or any other compensation or benefits (other than a
      reduction in the Incentive Bonus which is solely attributable to lower Net
      Earnings); (iii) a material reduction in or interference with Employee's
      position, duties, responsibilities or support with respect to his
      employment by the Company under this Agreement without Employee's prior
      written consent; or (iv) a "Change in Control" of the
      Company (as defined below).

      For purposes of this Section 5(d), a "Change in
      Control" of the Company shall be deemed to occur if (i) all or
      substantially all of the assets of the Company are sold or otherwise
      disposed of or the Company is liquidated or dissolved or adopts a plan of
      liquidation, (ii) during any period of twenty (24) consecutive months,
      Present Directors and/or New Directors cease for any reason to constitute
      at least half of the Board (for purposes of the preceding clause, "Present
      Directors" shall mean individuals who, at the beginning of such
      consecutive 24 month period, were members of the Board and "New
      Directors" shall mean any director whose election by the Board or
      whose nomination for election by the Company's shareholders was approved
      by a vote of at least two-thirds of the directors then still in office who
      were Present Directors or New Directors); or (iii) any of the following
      circumstances has occurred: (A) any transaction as a result of which a
      change in control of the Company would be required to be reported in
      response to Item 1 (a) of the Current Report on Form 8-K as in effect on
      the date hereof, pursuant to Sections 13 or 15(d) of the Securities
      Exchange Act of 1934, as amended (the "Exchange Act"),
      whether or not the Company is then subject to such reporting requirement,
      (B) any "person" or "group" within the meaning of
      Sections 13(d) and 14(d)(2) of the Exchange Act; (x) becomes the
      "beneficial owner," (as defined in Rule 13d-3 under the Exchange
      Act of twenty percent (20%) or more of the combined voting power of then
      outstanding securities of the Company, or (y) acquires by proxy or
      otherwise the right to vote for the election of directors, for any merger
      or consolidation of the Company or for any other matter or question, more
      than 20% of the then outstanding voting securities of the Company, except
      that a person or group shall be deemed to be a beneficial owner of all
      securities that such person or group has the right to acquire regardless
      of whether such right is immediately exercisable or only exercisable after
      the passage of time or (C) any "person" or "group"
      within the meaning of Sections 13 (d) and 14 (d) (2) of the Exchange Act)
      that is the ("beneficial owner" as defined in Rule 13d-3 under
      the Exchange Act of 20% or more of the then outstanding voting securities
      of the Company commences soliciting proxies.

      In the event that Employee elects to terminate this
      Agreement upon or following a Change in Control of the Company, then
      Employee shall provide notice thereof no more than one (1) year after the
      effective date of the Change in Control.

      In the event that Employee terminates this Agreement
      pursuant to the first paragraph of this Section 5(d), or if the Company
      terminates Employee's employment under this Agreement (other than for
      Cause or due to death or Disability), then the Company shall pay to
      Employee within ten (10) days after the date of such termination an amount
      equal to (i) any unpaid accrued Base Salary pursuant to Section 3(a)(i),
      above; (ii) a lump sum amount equal to the aggregate Base Salary (based on
      the Base Salary in effect on the date of the termination of Employee's
      employment) with respect to a period equal to the longer of twelve (12)
      months or the remainder of the term of this Agreement which would have
      occurred in the absence of such termination; (iii) any Incentive Bonus
      then payable, but unpaid pursuant to Section 3(a)(ii), above, and (iv) an
      amount equal to the Average Bonus for each full Year during the remainder
      of the term of this Agreement which would have occurred in the absence of
      such termination and a ratable portion thereof for any partial Year;
      provided, however, that if such termination occurs upon or following a
      Change in Control, then the Company shall pay to Employee the greater of
      (A) the sum of the amounts determined under clauses (i) through (iv) above
      in this sentence or (B) an amount equal to 2.99 times Employee's
      "Base Amount" within the meaning of Section 280G of the Code.
      The Company shall also pay to Employee within ten (10) days after the date
      of such termination any other amounts due to Employee as of the date of
      termination including, but not limited to, reimbursement of expenses under
      Section 3(d) above. In addition to Employee's rights under share option
      agreements outstanding prior to the date hereof, Employee shall also be
      entitled to immediate vesting of the Options and any other share options
      held by Employee on the date of such termination which were granted on or
      after before the date hereof, all of which shall remain exercisable until
      the earlier of one year following the date of such termination or the date
      the Option (and other options), would otherwise expire in the absence of
      such termination.

      To provide Employee with adequate protection in
      connection with Employee's ongoing employment with the Company, the
      Company provides Employee with various benefits, pursuant to this
      Agreement and otherwise. On or following a "Change in Control,"
      within the meaning of Section 280G of the Code, it is possible that a
      portion of those benefits might be characterized as "excess parachute
      payments," within the meaning of Section 280G of the Code. The
      parties hereto acknowledge that the protections set forth in this Section
      5(d) are important, and it is agreed that Employee should not have to bear
      the burden of any excise tax that might be levied under Section 4999 of
      the Code in the event that a portion of the benefits payable to Employee
      pursuant to this Agreement or otherwise are treated as excess parachute
      payments. The Company and Employee, therefore, have agreed as follows:

	
      (i)
	
      Notwithstanding any other provision of this Agreement
      to the contrary, if it shall be determined that any payment or benefit
      provided by the Company and any other person to or for the benefit of
      Employee (whether paid or payable or provided or providable pursuant to
      the terms of this Agreement or otherwise, but determined without regard to
      any additional payments required under this clause (i) (a
      "Payment") would be subject to the excise tax imposed by Section
      4999 of the Code or any interest or penalties are incurred by Employee
      with respect to such excise tax (such excise tax, together with any such
      interest and penalties, being hereinafter collectively referred to as the
      "Excise Tax"), then the Company shall pay to or on behalf of
      Employee an additional payment (a "Gross-Up Payment") in an
      amount such that after payment by Employee of all taxes (including any
      interest or penalties imposed with respect to such taxes), including,
      without limitation, any income taxes (and any interest or penalties
      imposed with respect thereto) and Excise Tax imposed upon the Gross-Up
      Payment, Employee retains an amount of the Gross-Up Payment equal to the
      Excise Tax imposed upon the Payments.

	
      (ii)
	
      All determinations regarding whether and when a
      Gross-Up Payment is required and the amount of such Gross-Up Payment and
      the assumptions to be utilized in arriving at such determination shall be
      made by an independent public accounting firm with a national reputation
      in the United States that is selected by Employee (the "Accounting
      Firm") which shall provide detailed support and calculations both to
      the Company and to Employee within fifteen (15) business days after the
      receipt of notice from Employee that there has been a Payment, or such
      earlier time as is requested by the Company. The amount of any Gross-Up
      Payment shall be paid in a lump sum within seven (7) days following such
      determination by the Accounting Firm. In the event that the Accounting
      Firm's determination is not finally accepted by the Internal Revenue
      Service upon any audit, then an appropriate adjustment shall be computed
      (with an additional Gross-Up Payment, if applicable) by the Accounting
      Firm based upon the final amount of the Excise Tax so determined. Such
      adjustment shall be paid by the appropriate party in a lump sum within
      seven (7) days following the computation of such adjustment by the
      Accounting Firm. All fees and expenses of the Accounting Firm shall be
      borne solely by the Company.

      The provisions of this Section 5(d) regarding the
      Company's obligation to make a Gross-Up Payment shall survive termination
      of Employee's employment for any reason.

       

	
       
	
      By Employee for Illness. In the event that during
      the term hereof Employee becomes ill such that, in the written opinion of
      a physician reasonably acceptable to the Company, it would not be
      advisable for Employee to continue his employment with the Company
      hereunder, Employee may terminate his employment hereunder upon reasonable
      notice to the Company and, in such event, Employee shall not be deemed to
      have breached this Agreement as a result of such termination. In the event
      of such termination by Employee, the Company shall have no further
      obligations to make payments or otherwise under this Agreement, except
      that the Company shall pay to Employee (i) within ten (10) days after the
      date of such termination (A) any unpaid accrued Base Salary pursuant to
      Section 3(a)(i), above and (B) any Incentive Bonus payable pursuant to
      Section 3(a)(ii), above, in each case to which Employee is entitled on the
      date of such termination pursuant to the terms of those Sections, (ii) any
      amounts due to Employee as of the date of termination as reimbursement of
      expenses under Section 3(f), above, and (iii) within sixty (60) days after
      the end of the year in which Employee died, if the Budgeted Net Earnings
      are met for the year in question, an amount equal to the Incentive Bonus
      pursuant to Section 3(a)(ii), above, which Employee would have been
      entitled to receive during the quarter in which Employee terminated
      employment pursuant to this Section 5(e) had Employee been employed by the
      Company on the last day of that quarter (including the amount that would
      have been payable after the end of the year in question).

	
                 (f)   No
      Offset - No Mitigation. Employee shall not be required to mitigate any
      damages under this Agreement by seeking other comparable employment. The
      amount of any payment or benefit provided for in this Agreement shall not
      be reduced by any compensation or benefits earned by or provided to
      Employee as a result of his employment by another employer.

       

	
                 (g)   Non-Renewal.
      In the event that the employment of Employee hereunder continues for the
      full term of this Agreement and Employee's employment with the Company is
      not renewed as of the date of termination of this Agreement on terms no
      less favorable to Employee than the terms of this Agreement, then Employee
      shall be entitled to receive from the Company, within fifteen (15) days
      after the date of such termination, an amount equal to (i) two times the
      Base Salary in effect as of the date of termination of this Agreement;
      (ii) any Incentive Bonus pursuant to Section 3(a)(ii), above (including
      the amount that would have been payable after the end of the Year in
      question), to which Employee was entitled on the date of termination
      pursuant to the terms of those Sections and (iii) any amount due to
      Employee as of the date of termination as reimbursement under Section
      3(f), above.

	
             (6)       Non-Competition;
      Confidentiality; etc. All references to the "Company" in
      this Section 6 shall include all Affiliates where the context permits.

	
                 (a)   Acknowledgment.
      Employee acknowledges and agrees that (i) in the course of Employee's
      employment by the Company, it will be necessary for Employee to acquire
      information which could include, in whole or in part, information
      concerning the sales, products, services, customers and prospective
      customers, sources of supply, computer programs, system documentation,
      software development, manuals, formulae, processes, methods, machines,
      compositions, ideas, improvements, inventions or other confidential or
      proprietary information belonging to the Company or relating to the
      affairs of the Company (collectively, the "Confidential
      Information"), (ii) the restrictive covenants set forth in this
      Section 6 are reasonable and necessary in order to protect and maintain
      such proprietary interests and the other legitimate business interests of
      the Company and that such restrictive covenants in this Section 6 shall
      survive the termination of this Agreement for any reason and (iii) the
      Company would not have entered into this Agreement unless such covenants
      were included herein.

	
                 (b)   Non-Competition.
      Employee covenants and agrees that during the term hereof and for a period
      of one (1) year following the termination of Employee's employment
      hereunder for any reason (or two (2) years following such termination if
      the Company elects to pay to Employee, in addition to all other amounts
      payable under this Agreement, an amount equal to the sum of (i) one
      additional year's Base Salary at the rate then in effect and (ii) the
      Average Bonus (calculated with reference to the date of termination of
      Employee's employment hereunder), such sum to be payable in bi-weekly
      installments during such second year), Employee shall not, on any vessel
      or within one hundred (100) miles of any non-vessel venue where, or from
      which, the Company is then offering its services or products, or had in
      the then preceding two (2) years offered its services or products, engage,
      directly or indirectly, whether as an individual, sole proprietor, or as a
      principal, agent, officer, director, employer, employee, consultant,
      independent contractor, partner or shareholder of any firm, corporation or
      other entity or group or otherwise in any Competing Business. For purposes
      of this Agreement, the term "Competing Business" shall
      mean any individual, sole proprietorship, partnership, firm, corporation
      or other entity or group which offers or sells or attempts to offer or
      sell (i) spa services, skin or hair care products, or degree or non-degree
      educational programs in massage therapy, skin care or related courses or
      (ii) any other services or products offered or sold by the Company.
      Notwithstanding the foregoing, Employee is not precluded from (i)
      maintaining a passive investment in publicly held entities provided that
      employee does not have more than a five percent (5%) beneficial ownership
      in any such entity; or (ii) serving as an officer or director of any
      entity, the majority of the voting securities of which is owned, directly
      or indirectly, by the Company (collectively, a "Permitted Activity").

	
                 (c)   Non-Solicitation
      of Customers and Suppliers. Employee agrees that during his employment
      hereunder, he shall not, whether as an individual or sole proprietor, or
      as a principal, agent, officer, director, employer, employee, consultant,
      independent contractor, partner or shareholder of any firm, corporation or
      other entity or group or otherwise, directly or indirectly, solicit the
      trade or business of, or trade, or conduct business with, any customer,
      prospective customer, supplier, or prospective supplier of the Company for
      any purpose other than for the benefit of the Company. Employee further
      agrees that for one year following termination of his employment hereunder
      for any reason, Employee shall not, directly or indirectly, solicit the
      trade or business of, or trade, or conduct business with any customers or
      suppliers, or prospective customers or suppliers, of the Company.
      Notwithstanding the foregoing, Employee is not precluded from a Permitted
      Activity.

      
                 (d)   Non-Solicitation
      of Employees, Etc. Employee agrees that during the term of his
      employment hereunder and thereafter for a period of two (2) years, he
      shall not, directly or indirectly, as an individual or sole proprietor or
      as a principal, agent, employee, employer, consultant, independent
      contractor, officer, director, shareholder or partner of any person, firm,
      corporation or other entity or group or otherwise without the prior
      express written consent of the Company approach, counsel or attempt to
      induce any person who is then in the employ of, or then serving as
      independent contractor with, the Company to leave the employ of, or
      terminate such independent contractor relationship with, the Company or
      employ or attempt to employ any such person or persons who at any time
      during the preceding six (6) months was in the employ of, the Company.
      Notwithstanding the foregoing, Employee is not precluded from a Permitted
      Activity.

       

	
                 (e)   Non-Disclosure
      of Confidential Information. Employee agrees to hold and safeguard the
      Confidential Information in trust for the Company, its successors and
      assigns and only use the Confidential Information for purposes of
      performing his duties hereunder and agrees that he shall not, without the
      prior written consent of the Board, misappropriate or disclose or make
      available to anyone for use outside the Company's organization at any
      time, either during his employment hereunder or subsequent to the
      termination of his employment hereunder for any reason, any of the
      Confidential Information, whether or not developed by Employee, except as
      required in the performance of Employee's duties to the Company or as
      required by applicable law. In the event that Employee is requested or
      required by, or under applicable law or court, or administrative order to
      disclose any of the Confidential Information, Employee shall provide the
      Company with prompt written notice of any such request or requirement so
      that the Company may seek a protective order or other appropriate remedy.
      If Employee is legally compelled to disclose Confidential Information,
      Employee shall disclose only that portion of the Confidential Information
      which Employee is legally required to disclose.

	
                 (f)   Disclosure
      of Works and Inventions/Assignment of Patents. Employee shall disclose
      promptly to the Company any and all works, publications, inventions,
      discoveries and improvements authored, conceived or made by Employee
      during the period of his employment hereunder and related to the business
      or activities of the Company, and hereby assigns and agrees to assign all
      his interest therein to the Company or its nominee. Whenever requested to
      do so by the Company, Employee shall execute any and all applications,
      assignments or other instruments which the Company shall deem necessary to
      apply for and obtain Letters of Patent or Copyrights, or similar documents
      or rights, of the United States or any foreign country or to otherwise
      protect the Company's interest therein. Such obligations shall continue
      beyond the termination of Employee's employment hereunder for any reason
      with respect to works, inventions, discoveries and improvements authored,
      conceived or made by Employee during the period of Employee's employment
      under this Agreement.

	
                 (g)   Return
      of Materials. Upon the termination of Employee's employment with the
      Company for any reason, Employee shall promptly deliver to the Board all
      correspondence, drawings, blueprints, manuals, letters, notes, notebooks,
      financial records, reports, flowcharts, programs, proposals and any other
      documents concerning the Company's business, including, without
      limitation, its customers or suppliers or concerning its products,
      services or processes and all other documents or materials containing or
      constituting Confidential Information; provided, however, that nothing in
      this Section 6(g) shall require Employee to deliver to the Board any
      property that is owned by Employee and that contains no Confidential
      Information.

	
                 (h)   Limitation
      on Restrictions. Notwithstanding anything to the contrary in this
      Section 6, the restrictions set forth in Sections 6(a) through 6(g),
      above, shall not apply if Employee terminates this Agreement under
      Section 5(d), above, unless Employee receives as a result of such
      termination the amount required to be paid to Employee pursuant to the
      fourth paragraph in Section 5(d), above, within thirty (30) days
      after the date of such termination above, in which case the restrictions
      in this Section 6 shall apply until the last date that this Agreement
      would have been in effect had it not been terminated as aforesaid and (ii)
      Section 6(b) shall not apply if Employee's employment is terminated after
      a Change in Control that is not approved by the Board.

	
       

      
             (7)       Non-Assignment;
      Successors; etc. The Company may not assign any of its rights, but
      not its obligations under this Agreement, without the prior written
      consent of Employee, which shall not be unreasonably withheld. The
      successors of the Company shall be bound by the terms hereof, and where
      the context permits, references to "Company" herein shall be
      deemed to apply to any such successors. Employee may assign his rights,
      but not his obligations, hereunder and the obligations of Employee
      hereunder, other than the obligations set forth in Section 1, above, shall
      continue after the termination of his employment hereunder for any reason
      and shall be binding upon his estate, personal representatives, designees
      or other legal representatives, as the case may be ("Heirs"),
      and all of Employee's rights hereunder shall inure to the benefit of his
      Heirs. All of the rights of the Company hereunder shall inure to the
      benefit of, and be enforceable by the successors of the Company.

	
       

      
             (8)       Notices.
      Except as set forth in Section 5(c), above, any notices or demands given
      in connection herewith shall be in writing and deemed given when (i)
      personally delivered, (ii) sent by facsimile transmission to a number
      provided in writing by the addressee and a confirmation of the
      transmission is received by the sender or (iii) three (3) days after being
      deposited for delivery with a recognized overnight courier, such as FedEx,
      and addressed or sent, as the case may be, to the address or facsimile
      number set forth below or to such other address or facsimile number as
      such party may in writing designate:

	
       
	
      If to Employee:

	
       
	
      341 Costa Brava Ct.

      Coral Gables, FL 33143

      Facsimile Number: (305) 662-2065

	
       
	
      If to the Company:

	
       
	
      Carl S. St. Philip, Jr.

      c/o Steiner Management Services

      770 South Dixie Highway, Suite #200

      Coral Gables, FL 33146

      Facsimile Number: (305) 372-9310

	
             (9)       Entire
      Agreement; Certain Terms. This Agreement constitutes and contains
      the entire agreement of the parties with respect to the matters addressed
      herein and supersedes any and all prior negotiations, correspondence,
      understandings and agreements between the parties respecting the subject
      matter hereof, including, but not limited to all other agreements and
      arrangements relating to the payment of any compensation to Employee with
      respect to any services performed, or to be performed on behalf of the
      Company or any Affiliate. No waiver of any rights under this Agreement,
      nor any modification or amendment of this Agreement shall be effective or
      enforceable unless in writing and signed by the party to be charged
      therewith. When used in this Agreement, the terms "hereof,"
      "herein" and "hereunder" refer to this
      Agreement in its entirety, including any exhibits or schedules attached to
      this Agreement and not to any particular provisions of this Agreement,
      unless otherwise indicated.

	
             (10)       Counterparts.
      This Agreement may be executed in any number of counterparts, each of
      which shall be deemed an original, but all of which together shall
      constitute one and the same instrument.

	
             (11)       Governing
      Law, etc. This Agreement shall be governed by and construed in
      accordance with the laws of Florida without regard to choice of law
      provisions and the venue for all actions or proceedings brought by
      Employee arising out of or relating to this Agreement shall be in the
      state or federal courts, as the case may be, located in Miami-Dade County,
      Florida (collectively, the "Courts"). Employee hereby
      irrevocably waives any objection which he now or hereafter may have to the
      laying of venue of any action or proceeding arising out of or relating to
      this Agreement brought in any of the Courts and any objection on the
      ground that any such action or proceeding in any of the Courts has been
      brought in an inconvenient forum. Nothing in this Section 11 shall affect
      the right of the Company or an Affiliate to bring any action or proceeding
      against Employee or his property in the courts of other jurisdictions. In
      the event of any litigation between the parties hereto with respect to
      this Agreement, each party shall bear his or its own costs and expenses
      ("Legal Costs and Expenses") in connection with such
      litigation, including, but not limited, to reasonable attorneys' fees at
      the trial and appellate court levels; provided, however, that with respect
      to any litigation concerning whether a termination by Employee was for
      Good Reason, the Company shall pay Employee's Legal Costs and Expenses
      (regardless of whether Employee is the prevailing party), and provided,
      further, that with respect to any litigation concerning whether a
      termination by the Company was for Cause, Employee shall be entitled to
      recover his Legal Costs and Expenses from the Company unless the Company
      is the prevailing party in any such litigation as determined by a final
      and nonappealable decision or order.

	
             (12)       Severability.
      It is the intention of the parties hereto that any provision of this
      Agreement found to be invalid or unenforceable be reformed rather than
      eliminated. If any of the provisions of this Agreement, or any part
      thereof, is hereinafter construed to be invalid or unenforceable, the same
      shall not affect the remainder of such provision or the other provisions
      of this Agreement, which shall be given full effect, without regard to the
      invalid portions. If any of the provisions of Section 6, above, or any
      portion thereof, is held to be unenforceable because of the duration of
      such provision or portions thereof, the area covered thereby or the type
      of conduct restricted therein, the parties hereto agree that the court
      making such determination shall have the power to modify the duration,
      geographic area and/or, as the case may be, other terms of such provisions
      or portions thereof, and, as so modified, said provisions or portions
      thereof shall then be enforceable. In the event that the courts of any one
      or more jurisdictions shall hold such provisions wholly or partially
      unenforceable by reason of the scope thereof or otherwise, it is the
      intention of the parties hereto that such determination not bar or in any
      way affect the Company's rights provided for herein in the courts of any
      other jurisdictions as to breaches or threatened breaches of such
      provisions in such other jurisdictions, the above provisions as they
      relate to each jurisdiction being, for this purpose, severable into
      diverse and independent covenants.

	
             (13)       Non-Waiver.
      Failure by either the Company or Employee to enforce any of the provisions
      of this Agreement or any rights with respect hereto, or the failure to
      exercise any option provided hereunder, shall in no way be considered to
      be waiver of such provisions, rights or options, or to in any way affect
      the validity of this Agreement.

	
             (14)       Headings.
      The headings preceding the text of the paragraphs of this Agreement have
      been inserted solely for convenience of reference and neither constitute a
      part of this Agreement nor affect its meaning, interpretation, or effect.

	
      

    	
      [SIGNATURE LINES ARE ON NEXT PAGE]

 

	
             IN WITNESS
      WHEREOF, the parties have executed these presents as of the day and year
      first above written.

	
       
	
      STEINER LEISURE LIMITED
	
       

	
       

       

      
       

      
      Leonard I. Fluxman
	
       

       

      By:
	
       

       

       

      Clive E. Warshaw,

      Chairman of the Board

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