Document:

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                                                                    EXHIBIT 10.2

                            MEMBER CONTROL AGREEMENT

                                       OF

                            ACTIVE HAWK MINERALS, LLC

                                 EFFECTIVE AS OF
                                  JUNE 26, 2003

THE LIMITED LIABILITY COMPANY INTERESTS AND UNITS CREATED HEREBY HAVE NOT BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, NOR UNDER ANY STATE
SECURITIES LAWS. CONSEQUENTLY, THE LIMITED LIABILITY COMPANY INTERESTS AND UNITS
MAY NOT BE SOLD OR TRANSFERRED UNLESS SUBSEQUENTLY REGISTERED AND QUALIFIED
UNDER SUCH LAWS OR UNLESS AN EXEMPTION FROM REGISTRATION AND QUALIFICATION IS
THEN AVAILABLE. OTHER RESTRICTIONS ON TRANSFER APPLY, AS HEREINAFTER SET FORTH.

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                                TABLE OF CONTENTS

<TABLE>

<S>     <C>       <C>                                                                                            <C>
ARTICLE 1 FORMATION OF LIMITED LIABILITY COMPANY..................................................................1
         1.1      Formation and Term..............................................................................1
         1.2      Name............................................................................................1
         1.3      Place of Business and Agent for Process.........................................................2
         1.4      Purpose.........................................................................................2
ARTICLE 2 MEMBERS AND NEW MEMBERS.................................................................................2
         2.1      Members.........................................................................................2
         2.2      Terms of Membership Interests...................................................................2
         2.3      Additional Members..............................................................................2
ARTICLE 3 MEMBERS' CAPITAL........................................................................................3
         3.1      Definitions Relating to Capital.................................................................3
         3.2      Original Capital Contributions and Interests of Members.........................................4
         3.3      Active IQ Installments of Original Capital Contribution.........................................4
         3.4      Additional Capital Contributions................................................................4
         3.5      Other Capital Matters...........................................................................5
         3.6      Default by Member...............................................................................5
         3.7      Default in Original Capital Contribution of Active IQ...........................................6
         3.8      Transferee Succeeds to Transferor's Capital Account.............................................6
         3.9      Loans to Company................................................................................6
ARTICLE 4 ALLOCATIONS AND DISTRIBUTIONS...........................................................................6
         4.1      Definitions of Profits and Losses...............................................................6
         4.2      Allocation of Profits...........................................................................7
         4.3      Allocation of Losses............................................................................7
         4.4      Proration of Allocations........................................................................7
         4.5      Distributions of Net Cash From Operations.......................................................7
         4.6      Other Cash Distributions........................................................................8
ARTICLE 5 MANAGEMENT AND OPERATION OF BUSINESS....................................................................8
         5.1      Management and Control of the Company...........................................................8
         5.2      Appointment of Directors........................................................................8
         5.3      Removal, Resignation and Replacement of Directors...............................................8
         5.4      Authority of Board..............................................................................8
         5.5      Restrictions on Board Authority.................................................................8
         5.6      Obligations of the Board........................................................................9
         5.7      Reimbursement of Expenses.......................................................................9
         5.8      Conflicts of Interest...........................................................................9
         5.9      Independent Activities..........................................................................9
         5.10     Indemnification.................................................................................9
         5.11     Liability Under Other Agreements...............................................................10
ARTICLE 6 BOOKS OF ACCOUNT AND RECORDS...........................................................................10
         6.1      Books of Account...............................................................................10
         6.2      Accounting Practices...........................................................................10
         6.3      Bank Accounts..................................................................................10
         6.4      Report to Members..............................................................................10
         6.5      Partnership Tax Status and Information.........................................................10
ARTICLE 7 TRANSFER RESTRICTIONS..................................................................................11
         7.1      General Restriction............................................................................11
         7.2      Permitted Transfers............................................................................11
         7.3      Conditions to Permitted Transfers..............................................................11
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<S>     <C>       <C>                                                                                            <C>
         7.4      Acquit Company.................................................................................12
         7.5      Prohibition of Involuntary Transfers...........................................................12
         7.6      Effect of Attempts to Make Prohibited Transfers................................................12
         7.7      Limited Rights of Unadmitted Transferees.......................................................13
ARTICLE 8 RIGHTS, OPTIONS AND VALUATION..........................................................................13
         8.1      Certain Definitions............................................................................13
         8.2      Events Creating Option To Buy..................................................................13
         8.3      Notice To Company and Members..................................................................14
         8.4      Company's Option to Purchase...................................................................15
         8.5      Members' Option to Purchase....................................................................15
         8.6      Failure of Company and Members to Exercise Option..............................................15
         8.7      Active IQ Buyout Option........................................................................16
         8.8      Purchase Price.................................................................................16
         8.9      Closing Date and Terms of Purchase.............................................................17
ARTICLE 9 AMENDMENT OF AGREEMENT.................................................................................18
ARTICLE 10 DISSOLUTION...........................................................................................18
         10.1     Liquidating Events.............................................................................18
         10.2     Agreement to Avoid Dissolution.................................................................18
         10.3     Distributions on Liquidation...................................................................18
ARTICLE 11 GENERAL PROVISIONS....................................................................................19
         11.1     Notices........................................................................................19
         11.2     Consent and Waiver.............................................................................19
         11.3     Entire Agreement...............................................................................19
         11.4     Governing Law; Jurisdiction....................................................................20
         11.5     Binding Effect.................................................................................20
         11.6     Number and Gender..............................................................................20
         11.7     Interpretation.................................................................................20
         11.8     Severability...................................................................................20
         11.9     Counterparts...................................................................................20
         11.10    Right to Specific Performance..................................................................20
         11.11    Further Assurances.............................................................................20
         11.12    No Third-Party Beneficiary.....................................................................21
         11.13    Incorporation by Reference.....................................................................21
         11.14    Discretion.....................................................................................21
         11.15    Arbitration....................................................................................21
         11.16    Litigation Expense.............................................................................21
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                           MEMBER CONTROL AGREEMENT OF
                            ACTIVE HAWK MINERALS, LLC

         THIS MEMBER CONTROL AGREEMENT is made effective as of June 26, 2003
(the "Effective Date"), by and between Active IQ Technologies, Inc., a Minnesota
corporation ("AIQ"), and Hawk Precious Minerals USA, Inc., a Minnesota
corporation ("Hawk Sub") (collectively with any future undersigned parties to
this Agreement, the "Members") with respect to Active Hawk Minerals, LLC, a
Minnesota limited liability company (the "Company").

                                  INTRODUCTION

         A. The Company has been organized pursuant to Minnesota Statutes,
Chapter 322B (the "LLC Act"), by the filing of the Company's Articles of
Organization (the "Articles"), and the making of capital contributions as set
forth in Exhibit A attached to this Agreement and hereby made a part of this
Agreement.

         B. The Members constitute all of the original members of the Company
and wish to combine their respective business operations into a joint venture to
be conducted in the form of the Company; and to that end the Members have
executed and delivered a Joint Venture and Joint Contribution Agreement dated
June 26, 2003 (the "Joint Venture and Joint Contribution Agreement") describing
the respective capital contributions of the Members to the Company, a copy of
which Joint Contribution Agreement is attached to this Agreement as Exhibit B.

         C. Section 322B.37 of the LLC Act authorizes a member control agreement
for a limited liability company.

         D. Each Member desires to enter into such an agreement with respect to
the Company, in the form of this Agreement which hereby incorporates by
reference the Appendix of General Definitions and Income Tax Appendix attached
hereto.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the foregoing facts which are
hereby made a part of this Agreement, the mutual promises of the Members and the
mutual benefits to be gained by the performance of this Agreement, the Members,
intending to be legally bound, hereby agree as follows:

                                    ARTICLE 1
                     FORMATION OF LIMITED LIABILITY COMPANY

         1.1 Formation and Term. On June 24, 2003 (the "Formation Date"), the
Company was formed as a limited liability company under the provisions of the
LLC Act. The Members hereby adopt and approve the Company's Articles as filed in
the office of the Minnesota Secretary of State on the Formation Date. Except as
otherwise provided in this Agreement, the Articles and the Company's bylaws (the
"Bylaws"), the rights and liabilities of the Members shall be as provided in the
LLC Act. The Company shall exist perpetually unless dissolved upon a Liquidating
Event as provided in Section 10.1.

         1.2 Name. The Company's business shall be conducted under the name of
"Active Hawk Minerals, LLC" or such other name as the Board may designate.

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         1.3 Place of Business and Agent for Process. The Board may from time to
time change the location of the Company's principal office. In addition, the
Board may in its discretion establish additional places of business of the
Company. The name and address of the agent for service of process is as set
forth in the Articles.

         1.4 Purpose. The Company has been formed for the purpose of obtaining
and holding certain rights with respect to certain lands located in the Republic
of South Africa pursuant to those certain Heads of Agreement by and among Hawk
Sub, Kwagga Gold (Proprietary) Limited, and AfriOre International (Barbados)
Limited ("AfriOre"), dated June 4, 2003 (the "Kwagga Agreement"); including the
right to fund and participate in all operations conducted on such lands for the
purpose of exploring for and exploiting base and/or precious metals discovered
therein, if any (such purpose shall be hereinafter referred to as the
"Project"). As of the Effective Date, the Company shall be the sole owner (other
than Kwagga and AfriOre) of all rights in, to and under the Kwagga Agreement.

                                    ARTICLE 2
                             MEMBERS AND NEW MEMBERS

         2.1 Members. The names and addresses of the Members shall be set forth
Exhibit A hereby made a part of this Agreement, as amended from to time pursuant
hereto. For all purposes of this Agreement, the terms "Member" or "Members"
means the Persons initially signing this Agreement as members of the Company
under the LLC Act, in their capacity as members, and each other Person who shall
hereafter be admitted to the Company as a Member pursuant to the terms of this
Agreement.

         2.2 Terms of Membership Interests. Membership Interests in the Company
are denominated "Units." The Company's Units shall have the rights provided by
this Agreement, subject to any limitations in the Articles or the LLC Act. Each
Member's Original Capital Contribution (as defined in Section 3.1(d)) and number
and type of Units held shall be set forth in Exhibit A, as amended from time to
time pursuant hereto.

         A Member's right to vote is a Governance Right. Each Member shall be
entitled to one (1) vote on all Company matters for each Unit owned. Unless a
higher threshold is specified in any provision of this Agreement or in the LLC
Act, all actions to be taken or approved by the Members (either pursuant to this
Agreement or otherwise) shall be taken or approved upon the unanimous vote of
the Members holding issued and outstanding Units entitled to vote. As of the
Effective Date, all Units have voting rights.

         Except as specifically set forth in this Agreement, all Units shall
have equal Financial Rights and Governance Rights. Upon approval of the Members,
the Board may establish one or more additional types, classes or series of Units
having either Governance Rights or Financial Rights (or both) that are
different, limited or preferred, as compared with the original Units authorized
as of the Effective Date. If any such new type, class or series of Units is
issued, this Agreement shall be amended to state the rights of such Units
without further approval of the Members, or the Company's Officers may certify
an addendum to this Agreement setting forth the relative rights, preferences and
privileges of any new type, class or series of Unit.

         2.3 Additional Members. Additional Members may be admitted to the
Company by issuing additional Units of a type, class or series authorized by
this Agreement only upon such terms and conditions as may be established and
approved by the Board and the Members. Upon any such consent and issuance of
additional Units, Exhibit A shall be appropriately amended. Nothing in this
Section 2.3 shall be construed to limit the meaning and effect of Article 7 and
Article 8 with respect to the Transfer of Units by Members and the addition of
Members pursuant to such Transfers.

                                       2

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         Each additional Member admitted to the Company shall execute this
Agreement and, if making a Capital Contribution, shall execute and perform a
Contribution Agreement delivered to and accepted on behalf of the Company by the
Board. Any Person admitted to the Company as a Member or who otherwise has an
interest in any Units shall be subject to and bound by all the provisions of
this Agreement as if originally a party to this Agreement, including
specifically the requirements of Article 3 relating to Capital Contributions.

                                    ARTICLE 3
                                MEMBERS' CAPITAL

         3.1 Definitions Relating to Capital.

                  (a) "Additional Capital Contributions" means, with respect to
         each Member, the Capital Contributions made by such Member pursuant to
         Section 3.4, reduced by the amount of any liabilities of such Member
         either assumed by the Company in connection with such Capital
         Contribution or which are secured by any property contributed by such
         Member as a part of such Capital Contribution.

                  (b) "Capital Account" means, with respect to any Member, the
         Capital Account maintained for such Member in accordance with the
         following provisions:

                           (i) To each Member's Capital Account there shall be
                  credited such Member's Capital Contributions, such Member's
                  distributive share of Profits and any items in the nature of
                  income or gain which are specially allocated pursuant to
                  Section 4 or Section 5 of the Income Tax Appendix, and the
                  amount of any Company liabilities assumed by such Member or
                  which are secured by any Company Property distributed to such
                  Member.

                           (ii) To each Member's Capital Account there shall be
                  debited the amount of cash and the Gross Asset Value of any
                  Company Property distributed to such Member pursuant to any
                  provision of this Agreement, such Member's distributive share
                  of Losses and any items in the nature of deductions or
                  expenses that are specially allocated pursuant to Section 4 or
                  Section 5 of the Income Tax Appendix, and the amount of any
                  liabilities of such Member that are assumed by the Company or
                  secured by any property contributed by such Member to the
                  Company.

                           (iii) In the event all or any portion of an Interest
                  is Transferred in accordance with the terms of this Agreement,
                  the transferee shall succeed to the Capital Account of the
                  transferor to the extent it relates to the Transferred
                  Interest.

                           (iv) In determining the amount of any liability for
                  purposes of Sections 3.1(a), 3.1(b)(i), 3.1(b)(ii), and
                  3.1(d), there shall be taken into account Code ss. 752(c) and
                  any other applicable provisions of the Code and Regulations.

                  (c) "Capital Contribution" means, with respect to any Member,
         the amount of money and the initial Gross Asset Value of any Property
         (other than money) contributed to the Company with respect to the
         Interest held by such Member, and includes an Original Capital
         Contribution under Section 3.1(d) and any Additional Capital
         Contribution under Section 3.1(a). The principal amount of a promissory
         note that is not readily traded on an established securities market and
         is contributed to the Company by the maker of the note (or a Member
         related to the maker of the note within the meaning of Regulations ss.

                                       3

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         1.704-1(b)(2)(ii)(c)) shall not be included in the Capital Account of
         any Member until the Company makes a taxable disposition of the note or
         until (and to the extent) principal payments are made on the note, all
         in accordance with Regulationsss. 1.704-1(b)(2)(iv)(d)(2).

                  (d) "Original Capital Contribution" means, with respect to
         each Member, the Capital Contribution made by such Member pursuant to
         Section 4.2, reduced by the amount of any liabilities of such Member
         that are (i) assumed by the Company in connection with such Capital
         Contribution or (ii) secured by any property contributed by such Member
         to the Company as a part of such Capital Contribution.

         3.2 Original Capital Contributions and Interests of Members. The
capital of the Company shall be contributed by the Members and accepted by the
Board at the respective values set forth on Exhibit A attached hereto. Upon
executing this Agreement, each Member shall contribute to the capital of the
Company the amount specified following his, her or its name on Exhibit A hereto
as his, her or its Original Capital Contribution, and shall be credited with the
number and type of Units set forth therein. Exhibit A shall be amended from time
to time upon the occurrence of any event changing the information set forth
therein. Any such amendment shall not be considered an "amendment" to this
Agreement subject to the provisions of Article 9.

         The Members acknowledge and understand that, in accordance with the
Joint Venture and Joint Contribution Agreement, the Original Capital
Contribution of Active IQ shall be paid in three separate installments of cash
in the following amounts on or prior to the following dates, in order that the
Company meet its obligations to fund exploratory and, if necessary, mining
operations under the Kwagga Agreement:

Date                                  Amount
----                                  ------
Effective Date                        $500,000
September 27, 2003                    $1,000,000
November 11, 2003                     $600,000

         3.3 Active IQ Installments of Original Capital Contribution. The
installment of Active IQ's Original Capital Contribution due and payable on
September 27, 2003 (the "First Funding Date") shall hereinafter be referred to
as the "First Funding" and the installment of Active IQ's Original Capital
Contribution due and payable on November 11, 2003 (the "Second Funding Date")
shall hereinafter be referred to as the "Second Funding." All of Active IQ's
installments of its Original Capital Contribution, including the installment
made on the Effective Date, shall be made by wire transfer of immediately
available funds to either the Company or to Kwagga, on the Company's behalf, in
order for the Company to meet its funding obligations under the Kwagga
Agreement, as the Members shall mutually determine a reasonable amount of time
in advance of the Effective Date, the First Funding Date and the Second Funding
Date.

         3.4 Additional Capital Contributions. Each Member may contribute from
time to time as an Additional Capital Contribution such additional money or
other property as agreed upon by all the Members; provided, however, that any
Additional Capital Contribution of property other than money made pursuant to
this Section 3.4 shall be subject to the terms and provisions of a Contribution
Agreement to be executed by the contributing Member and the Company prior to
delivery of such property. The Company shall not demand that Members make
Additional Capital Contributions.

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         If Additional Capital Contributions are not made equally by all
Members, the Board shall equitably adjust the Capital Accounts, and Units if
necessary, of each Member to account for any non-pro-rata Additional Capital
Contributions on terms that shall be set forth in a Contribution Agreement
signed as provided in the preceding paragraph. Upon any such adjustment, Exhibit
A shall be appropriately amended. Additional Units may be issued only as
permitted by Sections 2.2 and 2.3. If additional Units are issued, Exhibit A
shall be appropriately amended.

         3.5 Other Capital Matters.

                  (a) Except as otherwise provided in this Agreement, no Member
         shall demand or receive a return of the Member's Capital Contributions
         or withdraw them from the Company without the approval of the Members.
         Under circumstances allowing or requiring a return of any Capital
         Contributions, no Member shall have the right to receive Company
         Property other than cash except as may be specifically provided herein.

                  (b) No Member shall receive any interest, salary or draw with
         respect to the Member's Capital Contributions or the Member's Capital
         Account.

                  (c) Except as otherwise provided by any other agreements among
         the Members or mandatory provisions of applicable state law, a Member
         shall be liable only to make the Member's Capital Contributions and
         shall not be required to lend any funds to the Company or, after the
         Member's Original Capital Contribution has been made, to make any
         Additional Capital Contributions to the Company.

                  (d) A Member with a deficit balance in his, her or its Capital
         Account after the distribution of liquidation proceeds under Article 10
         shall not be required to contribute the amount of such deficit to the
         Company.

         3.6 Default by Member. Except with respect to an Original Capital
Contribution by a Member or any installment thereof (which case is governed by
Section 3.7 below), in the event that a Member fails to make any payment, or any
installment thereof, when due, of any Capital Contribution or other obligation
hereunder or under a Contribution Agreement, the Board may enforce such
obligation in such manner as may be permitted by law. Without limiting the
generality of the foregoing, the Board may, in its discretion:

                  (a) bring an action at law or in equity to enforce such
         obligation;

                  (b) assess interest on the unpaid amount at the highest rate
         of interest then being charged to the Company by any lender or allowed
         by state law; and/or

                  (c) if the unpaid obligation is a required Capital
         Contribution, require the defaulting Member to unconditionally and
         irrevocably assign to the remaining Members that portion of the
         defaulting Member's Units which bears the same ratio to all of such
         defaulting Member's Units of the class of Units to which such Capital
         Contribution relates as the remaining amount of such defaulting
         Member's unpaid contributions, whether due or not yet due, bears to the
         total amount of contributions, both paid and unpaid, required to be
         made by such defaulting Member; provided, however, that such default
         shall not theretofore have been cured.

         If the Board requires assignment of all or a portion of a defaulting
Member's Units pursuant to clause (c) above, then each remaining Member of the
class of Units such Capital Contribution relates to shall have the right to
acquire the defaulting Member's Units, determined as aforesaid, in the
proportion that the number of each remaining Member's Units of the class of

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Units such Capital Contribution relates to bears to the aggregate number of
Units of the class of Units such Capital Contribution relates to of the
remaining Members who desire to participate in such purchase, by paying the
Company a cash amount equal to such proportion of the unpaid Capital
Contributions.

         3.7 Default in Original Capital Contribution of Active IQ. The parties
acknowledge that Active IQ is making its Original Capital Contribution in cash
installments occurring on the Effective Date, the Second Funding Date and the
Third Funding Date in order that the Company may fund the operations of the
Project pursuant to the timelines set forth in the Kwagga Agreement.
Accordingly, if Active IQ defaults in any planned installment of the Original
Capital Contribution described in Section 3.3, then (as the Company's sole and
exclusive remedy), upon the expiration of the seventh (7th) day following Active
IQ's receipt of a written notice from Kwagga or Hawk indicating that the due
date for any "Advance" (as such term is defined in the Kwagga Agreement) not yet
made has passed and that Active IQ has seven (7) days to make such Advance,
Active IQ shall, if it has not theretofore provided the funds described in the
Second Funding or Third Funding to the Company or to Kwagga (as the Members may
mutually determine a reasonable amount of time prior to the Second Funding Date
and/or Third Funding Date, as applicable), immediately forfeit all of its Units
to Hawk and such Units shall be deemed automatically assigned to Hawk for an
aggregate purchase price of One Dollar and No/100 ($1.00).

         3.8 Transferee Succeeds to Transferor's Capital Account. If any Member
Transfers all or a part of his, her or its Financial Rights in the Company,
whether or not such Transfer is permitted under Article 8, any transferee from
the Member shall succeed to the Capital Account (including any remaining Capital
Contributions) of the transferor Member to the extent of the Interest
Transferred, in accordance with Regulations ss. 1.704-1(b)(2)(iv)(1).

         3.9 Loans to Company. If authorized by the Board, a Member may lend
money to the Company from time to time, in excess of the Member's Capital
Contributions; provided, however, that no such loan may be treated as a Capital
Contribution for any purpose or entitle such Member to any increase in the
Member's Units or share of the Profits, Losses, deductions, credits or
Distributions of the Company. The Company shall be obligated to such Member for
the amount of any such loan, with interest thereon at such rate as may have been
agreed upon by such Member and the Board.

                                    ARTICLE 4
                          ALLOCATIONS AND DISTRIBUTIONS

         4.1 Definitions of Profits and Losses. "Profits" and "Losses,"
respectively, shall mean, for each Fiscal Year, an amount equal to the Company's
taxable income or loss (as the case may be) for such Fiscal Year, determined in
accordance with Code ss. 703(a) (for this purpose, all items of income, gain,
loss or deduction required to be stated separately pursuant to Code ss.
703(a)(1) shall be included in taxable income or loss) with the following
adjustments:

                  (a) any income of the Company that is exempt from federal
         income tax and not otherwise taken into account in computing Profits or
         Losses pursuant to this Section 0 shall be added to such taxable income
         or loss;

                  (b) any nondeductible expenditures of the Company described in
         Code ss. 705(a)(2)(B) or treated as Code ss. 705(a)(2)(B) expenditures
         pursuant to Regulations ss. 1.704-1(b)(2)(iv)(i), and not otherwise
         taken into account in computing Profits or Losses pursuant to this
         Section 4.1, shall be subtracted from such taxable income or loss;

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                  (c) in the event the Gross Asset Value of any Company asset is
         adjusted pursuant to Section 3(b) or Section 3(c) of the Income Tax
         Appendix, the amount of such adjustment shall be taken into account as
         gain or loss from the disposition of such asset for purposes of
         computing Profits or Losses;

                  (d) gain or loss resulting from any disposition of Company
         Property with respect to which gain or loss is recognized for federal
         income tax purposes shall be computed by reference to the Gross Asset
         Value of the Company Property disposed of, notwithstanding that the
         adjusted tax basis of such Company Property differs from its Gross
         Asset Value;

                  (e) in lieu of the depreciation, amortization and other
         cost-recovery deductions taken into account when computing such taxable
         income or loss, there shall be taken into account Depreciation for such
         Fiscal Year, computed in accordance with Section 2 of the Income Tax
         Appendix;

                  (f) to the extent an adjustment to the adjusted tax basis of
         any Company Property pursuant to Code ss. 734(b) or Code ss. 743(b) is
         required pursuant to Regulations ss. 1.704-1(b)(2)(iv)(m)(4) to be
         taken into account in determining Capital Accounts as a result of a
         Distribution other than in liquidation of a Member's Interest, the
         amount of such adjustment shall be treated as an item of gain (if the
         adjustment increases the basis of the asset) or loss (if the adjustment
         decreases the basis of the asset) from the disposition of the asset and
         shall be taken into account for purposes of computing Profits or
         Losses; and

                  (g) notwithstanding any other provisions of this Section 4.1,
         any items that are specially allocated pursuant to Section 4 or Section
         5 of the Income Tax Appendix shall not be taken into account in
         computing Profits or Losses.

         The amounts of the items of Company income, gain, loss or deduction
available to be specially allocated pursuant to Sections 4 and 5 of the Income
Tax Appendix shall be determined by applying rules analogous to those set forth
in Sections 4.1(a) through 4.1(f) above.

         4.2 Allocation of Profits. After giving effect to the special
allocations set forth in Sections 4 and 5 of the Income Tax Appendix, Company
Profits for each Fiscal Year for book purposes, whether taxable or nontaxable,
shall be allocated to the Members and their Capital Accounts shall be
appropriately increased ratably in proportion to their respective Units.

         4.3 Allocation of Losses. After giving effect to the special
allocations set forth in Sections 4 and 5 of the Income Tax Appendix, Company
Losses, deductions and credits for each Fiscal Year for book purposes, whether
taxable or nontaxable, shall be allocated to the Members and their Capital
Accounts shall be appropriately decreased ratably in proportion to their
respective Units.

         4.4 Proration of Allocations. All Profits, Losses, deductions and
credits for a Fiscal Year allocable with respect to any Member whose Interest
may have been Transferred, forfeited, reduced or changed during such year shall
be allocated based upon the varying Interests of the Members throughout the
year. The precise manner in which such allocation shall be made shall be
determined by the Board and shall be a manner of allocation permitted to be used
for federal income tax purposes under the Code.

         4.5 Distributions of Net Cash From Operations. Except for a cash
reserve determined by the Board in its sole discretion, Distributions of Net
Cash from Operations for each Fiscal Year shall be made from time to time, but

                                       7

<PAGE>

no less frequently than annually, first to the Members in an amount equal to the
Estimated Member Tax Liability for each such Member; and thereafter, to the
Members in proportion to their respective Units.

         4.6 Other Cash Distributions. Distribution of any net proceeds upon the
sale, exchange or other disposition of all or substantially all Company Property
shall be made in accordance with Section 10.3.

                                    ARTICLE 5
                      MANAGEMENT AND OPERATION OF BUSINESS

         5.1 Management and Control of the Company. The Members shall appoint
the Board and Directors, and individual Directors shall be removed or replaced,
pursuant to this Article 5. Except as otherwise provided in this Agreement, the
Board shall have the sole and exclusive control of the conduct, operations and
management of the Company's business. The Board shall manage the Company's
affairs in a prudent and businesslike fashion and shall use its best efforts to
carry out the purposes and the business of the Company. The Board shall carry
out its duties through Officers. The Officers shall be elected and removed by
the Board, and their duties shall be established by the Board, all as provided
in the Bylaws. The Board and the Officers shall devote such of their time as the
Board deems necessary to the management of the business of the Company. The
Board shall initially consist of two (2) Directors, and the number of Directors
may be increased or decreased pursuant to a unanimous resolution or written
action of the Members.

         5.2 Appointment of Directors. The initial Members (i.e., Hawk Sub and
Active IQ) shall each be entitled to appoint members of the Board as follows:
Hawk Sub shall be entitled to appoint one (1) Director to serve on the Board,
and Active IQ shall be entitled to appoint one (1) Director to serve on the
Board. The right of the initial Members to appoint Directors to serve on the
Board is a Governance Right and is transferable only to the extent permitted
under Article 7.

         5.3 Removal, Resignation and Replacement of Directors. The initial
Members shall each have the power to remove and replace the Directors they
appoint pursuant to Section 5.2. Furthermore, any Director may resign at any
time by giving written notice to the Board and the Member who appointed such
resigning Director. Vacancies on the Board shall be filled by appointment made
by the Member whose Director resigned, was removed, or whose directorship
otherwise terminated. The right of the initial Members to remove and replace
Directors from the Board is a Governance Right and is transferable only to the
extent permitted under Article 7.

         5.4 Authority of Board. The Board shall have all necessary powers to
carry out the Company's purposes and business, as set forth in Section 1.4,
including without limitation the power to delegate appropriate authority to the
Company's Officers; provided, however, that the Officers shall at all times
remain subject to the Board's supervision.

         5.5 Restrictions on Board Authority. In addition to other acts
expressly prohibited or restricted by this Agreement or by law, the Board shall
have no authority to act on behalf of the Company and is expressly prohibited
from the following: (a) doing any act in contravention of this Agreement; (b)
doing any act that would make it impossible to carry on the ordinary business of
the Company, other than as permitted in this Agreement; (c) seizing Company
Property or assigning the rights of the Company and specific Company Property
for other than a Company purpose; (d) admitting any Person as a Member except as
provided in this Agreement; (e) performing any act (other than an act required
by this Agreement or an act taken in good faith or in reliance upon counsel's
opinion) that would, at the time such act occurred, subject any Member to
liability as a general partner or otherwise in any jurisdiction; (f) selling,
exchanging or otherwise disposing any of the Company's assets (other than cash);

                                       8

<PAGE>

(g) allowing a merger or reorganization of the Company with any other entity; or
(h) taking any action that, in the prudent exercise of business discretion,
could reasonably be expected to have a material adverse effect on the Company or
the assets or operations thereof.

         All actions described in this Section 5.5 shall require the unanimous
approval of the Members.

         5.6 Obligations of the Board. In addition to the obligations expressly
provided by law or this Agreement, the Board, to the extent of Company assets,
shall: (a) cause to be filed and published all certificates, statements and
other instruments required by law for the Company's formation, qualification and
operation and for the conduct of its business in all appropriate jurisdictions;
(b) cause the Company to prepare or have prepared all financial and tax
statements and reports required under Article 6; and (c) cause the Company to
keep the Required Records at its principal office.

         5.7 Reimbursement of Expenses. The Directors, Officers and their
respective Affiliates shall be reimbursed for all expenses incurred on behalf of
the Company.

         5.8 Conflicts of Interest. The Members, Officers, Directors and their
respective Affiliates may deal with, perform other services for and sell goods
or services to the Company without limitation; provided, however, that any
compensation for such services or goods shall be limited to amounts and rates
customary in the industry. The fact that a Member, Director, Officer or any of
their respective Affiliates is employed by, or is directly or indirectly
interested in or connected with any Person from whom or which the Company may
buy services, merchandise or other property shall not prohibit the Directors or
Officers from employing such Person or from otherwise dealing with such Person.

         5.9 Independent Activities. Except for business opportunities (i)
arising solely by virtue of a Member's, Director's, Officer's respective role(s)
with the Company and (ii) within the purposes of the Company as set forth in
Section 1.4, any Member, Director, Officer or their respective Affiliates may,
during the term of this Agreement, engage in, possess and acquire interests for
their own accounts in other business ventures of every nature and description,
independently or with others; and neither the Company nor any Member, by virtue
of this Agreement shall have any right in and to such independent venture or any
income or profit derived therefrom, nor shall any such independent venture be
considered a Company opportunity under this Agreement. Furthermore, the Members
hereby agree to execute and deliver reasonably requested waivers, consents or
ratifications to any of the foregoing Persons upon the undertaking of any
activity not constituting a Company opportunity as described above.

         5.10 Indemnification. The Company shall indemnify the Members,
Directors and Officers against any loss, claim or liability incurred by any of
them in connection with the business of the Company; provided, however, that the
Person to be indemnified acted in good faith and was not grossly negligent or
guilty of willful misconduct. Any amount paid to indemnify a Person, however,
shall be paid out of Company assets only, and Members shall not be liable for
such amount to be paid to indemnify a Person except to the extent of any amount
of the Capital Contribution of a Member that is due and owing to the Company and
remains unpaid. Neither the Company nor any Member shall have any claim against
the Directors or Officers based upon or arising out of any act or omission of
the Directors or Officers; provided, however, that such Officer or Director
acted in good faith and was not grossly negligent or guilty of willful
misconduct.

                                       9

<PAGE>

         Notwithstanding anything to the contrary in this Section 5.10, nothing
herein shall be deemed to conflict with the provisions of Article 7 of the Joint
Venture and Joint Contribution Agreement. In any case where Article 7 of the
Joint Venture and Joint Contribution Agreement conflicts with any provisions set
forth herein or in any other agreement related to the conduct of the Company's
business or operations, specifically including the Bylaws, the provisions of
Article 7 of the Joint Venture and Joint Contribution Agreement shall control.

         5.11 Liability Under Other Agreements. Except to the extent
specifically provided herein, the obligations of the Members, Officers, and
Directors or their Affiliates, pursuant to any agreement or contract entered
into in their personal capacity with the Company (whether or not such agreements
are referred to herein) shall be separate and distinct from their obligations
hereunder and any default or failure of performance with respect to such
separate agreements or contracts, unless otherwise specified in this Agreement,
shall have the consequences provided for in such separate agreements or
contracts or by applicable law and shall not constitute a breach hereunder.

                                    ARTICLE 6
                          BOOKS OF ACCOUNT AND RECORDS

         6.1 Books of Account. The Board shall cause to be kept complete and
accurate accounts of all Company transactions in proper books of account and
shall enter or cause to be entered therein a full and accurate account of each
and every Company transaction in accordance with accounting principles as set
forth in Section 6.2. The Company's books and records shall be closed and
balanced as of the end of each Fiscal Year. The books of account and other
records of the Company shall at all times be kept at the Company's place of
business. Each of Member and Director shall have access to and may inspect and
copy any of such books and records at all reasonable times.

         6.2 Accounting Practices. The Company's books of account shall be kept
on the cash or accrual basis as determined by the Board, according to United
States generally accepted accounting principles consistently applied. Such
principles shall be applied by the Board upon the advice of the Company's
accountants. The Board shall have the authority to designate and retain a firm
of independent certified public accountants to assist in the maintenance and
preparation of such books, records and reports as the Board deems desirable.

         6.3 Bank Accounts. The Company shall maintain bank accounts in such
bank or banks as the Board may determine. All withdrawals from such bank
accounts shall be made by check or other instrument, signed by such Person or
Persons as the Board may designate.

         6.4 Report to Members. Not later than ninety (90) days after the end of
each Fiscal Year of the Company, the Chief Executive Officer shall caused to be
delivered to each Member a report of the Company's business and operations
during such Fiscal Year, which report shall constitute the accounting of the
Board for such Fiscal Year. The report shall contain financial statements,
including statements of assets and liabilities, of income and expenses, of
Members' equity and changes in financial position, of cash flow and of the
amount and nature of any compensation paid to the Members, Directors, Officers
or their Affiliates during the period, including a description of the services
performed in relation thereto, and shall otherwise be in such form and have such
content as the Board deems proper. Such report shall state income from every
source, including net gains from disposition or sale of Company assets.

         6.5 Partnership Tax Status and Information. The Members acknowledge
that the Company will be treated as a "partnership" for income tax purposes. Not
later than ninety (90) days after the end of each Fiscal Year of the Company,
the Officer acting as Treasurer shall cause to be delivered to each Person who
was a Member at any time during such Fiscal Year, a Form K-1 and such other

                                       10

<PAGE>

information, if any, with respect to the Company as may be necessary for the
preparation of such Person's federal, state and local income tax (or
informational) returns, including a statement showing such Person's share of
income, gain or loss and credits for such Fiscal Year, as determined for
federal, state and local income tax purposes. In addition, the Chief Executive
Officer shall from time to time cause to be delivered to each Member adequate
information relating to the Company's operations to enable each Member to
complete and file all federal, state and local estimated tax returns for which
the Member may be liable.

                                    ARTICLE 7
                              TRANSFER RESTRICTIONS

         7.1 General Restriction. Except to the limited extent permitted under
this Article 7, no part of a Member's Interest and no Units may be Transferred,
whether voluntarily or involuntarily (by operation of law or otherwise), and
whether with or without consideration; nor may a Member enter into a binding
agreement with respect to any of the foregoing. The Required Records and other
appropriate records of the Company shall be noted to prevent the Transfer of
Units except in accordance with this Article 7 and Article 8.

         7.2 Permitted Transfers. The following Transfers are permitted (each a
"Permitted Transfer"); provided, however, that any such Transfer and the parties
thereto comply with all of the applicable conditions pertaining to Permitted
Transfers under this Article 7 and under Article 8:

                  (a) Any Member may Transfer his, her or its Units upon the
         exercise of any right of first refusal described in Sections 8.4 or
         8.5;

                  (b) Any Member may Transfer its Units with the unanimous
         written consent of the Members, which consent may be withheld or
         conditioned in the sole discretion of such Members;

                  (c) Hawk may Transfer its Units pursuant to the exercise of
         the Active IQ Buyout Option described in Section 8.7; or

                  (d) All of Active IQ's Units may be forfeited and Transferred
         to Hawk upon default in the making of the Original Capital Contribution
         or any installment thereof, pursuant to the provisions of Sections 3.7.

         7.3 Conditions to Permitted Transfers. Any Permitted Transfer of Units
pursuant to Section 7.2(a) shall be effective only if each of the following
conditions is satisfied:

                  (a) Governance Rights. If the Transfer will include any
         Governance Rights, the transferring Member shall Transfer all such
         Governance Rights coupled with a simultaneous Transfer to the same
         transferee of all of the Member's Financial Rights relating to such
         Units.

                  (b) Investment Representations. In the case of any Transfer
         for value, then either the transferor or the proposed transferee shall
         provide the following documentation to the Board: (i) an opinion of
         counsel (whose fees and expenses shall be borne by such Member or
         transferee), satisfactory in form and substance to the Board, to the
         effect that either (A) the Transfer constitutes an exempt transaction
         and does not require registration under applicable securities laws, or
         (B) the Units to be Transferred are duly and properly registered under
         all applicable securities laws; (ii) evidence satisfactory to the Board
         of the transferee's agreement to comply with and be bound by the terms
         of this Agreement and to execute any and all documents that the Board
         may deem necessary or appropriate in connection with his, her or its
         becoming a Member; (iii) evidence satisfactory to the Board that the

                                       11

<PAGE>

         Transfer will not impair the ability of the Company to be taxed as a
         partnership for federal income tax purposes under the Code or to take
         advantage of accelerated depreciation under the Code; (iv)
         representations in form and substance satisfactory to the Board that
         the transferee is acquiring the Units for his, her or its own account
         for investment and not with a view to the distribution thereof; and (v)
         a written agreement signed by the transferee that the Units being
         acquired will in no event be resold unless properly registered under
         all applicable securities laws or exempt therefrom.

                  (c) Other Documents and Expenses. As a condition to admission
         as a Member, any transferee of all or part of the Units of any Member,
         or the legatee or distributee of all or any part of the Units of any
         Member, shall execute and acknowledge such instruments, in form and
         substance satisfactory to the Board, as the Board shall deem necessary
         or advisable to effect such admission and to confirm the agreement of
         the person being admitted to be bound by all the terms and provisions
         of this Agreement. Such transferee, legatee or distributee shall also
         pay all reasonable expenses in connection with such admission as a
         Member, including but not limited to legal fees and costs of the
         preparation of any amendment to this Member Control Agreement, if
         necessary or desirable in connection therewith.

                  (d) Effective Date of Transfer. All Transfers of Units
         occurring during any month shall be deemed effected on the first day of
         the month next following the month in which the Transfer occurs.

         7.4 Acquit Company. In the absence of written notice to the Company of
any Transfer of Units, any payment by the Company to the transferring Member or
his or its executors, administrators or representatives shall acquit the Company
of liability, to the extent of such payment, to any other Person who may have an
interest in such payment by reason of a Transfer by the Member or by reason of
such Member's death or otherwise.

         7.5 Prohibition of Involuntary Transfers. Except as otherwise required
by the LLC Act, a Member's Governance Rights shall not be subject to Involuntary
Transfer (as that term is defined in Article 8), and any attempted Involuntary
Transfer shall be void and of no effect except for a Transfer to a deceased
Member's personal representative or trustee to whom such Interest is Transferred
by operation of law or a testamentary instrument at the death of the transferor.
If such a Transfer is attempted, whether or not permitted by applicable law, the
affected portion of the Member's Interest shall thereupon be an "Affected
Interest" under this Agreement and be subject to the options and rights of first
refusal set forth in Article 8.

         If all or any portion of a Member's Financial Rights are the subject of
a Foreclosure of a Pledge or Involuntary Transfer (as those terms are defined in
Article 8), or if the Member becomes Insolvent (as that term is defined in
Article 8), the affected portion of the Member's Financial Rights, together with
the associated Governance Rights, if any, shall thereupon be an "Affected
Interest" under this Agreement and be subject to the options and rights of first
refusal set forth in Article 8.

         7.6 Effect of Attempts to Make Prohibited Transfers. Any purported
Transfer (of all or any portion of an Interest) that is not permitted under this
Article 7 shall be null and void and of no force or effect; provided, however,
that, if the Company is required by applicable law to recognize a Transfer that
is not so permitted (or if the Members in their sole discretion elect to
recognize a Transfer that is not so permitted), then the Transferred Interest
shall be strictly limited to the transferor's Financial Rights as provided by
this Agreement with respect to the Transferred Interest, which may be applied
(without limiting any other legal or equitable rights of the Company) to satisfy
any debts, obligations or liabilities for damages that the transferor or
transferee of such Interest may have to the Company.

                                       12

<PAGE>

         In the case of a Transfer or attempted Transfer of an Interest that is
not permitted hereunder, the parties engaging or attempting to engage in such
Transfer shall be liable to indemnify and hold harmless the Company and the
other Members from all cost, liability and damage that any of such indemnified
Persons may incur (including without limitation tax liabilities, lawyers' fees
and expenses) as a result of such Transfer or attempted Transfer and efforts to
enforce the indemnity required hereby.

         7.7 Limited Rights of Unadmitted Transferees. A Person who holds merely
Financial Rights or acquires any part of an Interest other than pursuant to a
Permitted Transfer: (a) shall be subject to the restrictions of Section 7.1; (b)
shall be entitled only to allocations and Distributions with respect to such
Interest in accordance with this Agreement; (c) shall have no right to any
information or accounting of the affairs of the Company; (d) shall not be
entitled to inspect the books or records of the Company; (e) shall not be
entitled to exercise any Governance Rights; and (f) shall not have any of the
other rights of a Member under the LLC Act or this Agreement.

                                    ARTICLE 8
                          RIGHTS, OPTIONS AND VALUATION

         8.1 Certain Definitions. For all purposes of this Agreement, the
following terms shall have the meanings set forth below:

                  (a) "Affected Interest" shall mean any of the following: (i) a
         Person's entire Membership Interest in the event of a Transfer (or
         attempted Transfers) of all or any portion of a Member's Governance
         Rights or Financial Rights in violation of this Agreement; or (ii) a
         Person's entire Membership Interest in the event such Interest becomes
         subject to the right or obligation of the Company or a Member to
         purchase such Interest under this Article 8 for any other reason.

                  (b) "Transferring Holder" shall mean any of the following
         Persons, as applicable: (i) a Member who holds an Affected Interest or
         whose Affected Interest is being terminated or is the subject of any
         other event that caused such Interest to become an Affected Interest;
         (ii) any non-Member transferee holding an Affected Interest as a result
         of a Transfer or attempted Transfer that made it an Affected Interest;
         or (iii) any legal representative of either.

         8.2 Events Creating Option To Buy. Except for the Permitted Transfers
allowed under Section 7.2, if any of the following events occurs or is
attempted, the Company and the Members shall have the options and the rights to
buy the Affected Interest of a Transferring Holder, and that Transferring Holder
shall be obligated to sell the Affected Interest, pursuant to the terms and
conditions of this Article 8:

                  (a) Voluntary Transfer. A "Voluntary Transfer" shall occur if
         (i) any Membership Interest or Units are sold, exchanged, pledged,
         encumbered, given, gifted or otherwise voluntarily Transferred, with or
         without full consideration, or (ii) an agreement is entered into to do
         any of the foregoing.

                  (b) Foreclosure of a Pledge. A "Foreclosure of a Pledge" shall
         occur if (i) any Person attempts to gain absolute rights to a
         Membership Interest or Units as a result of a default under a security
         interest, whether pursuant to the Uniform Commercial Code or otherwise,
         regardless of whether the security interest is termed as a pledge,
         collateral, a conditional assignment, an outright assignment, or in any
         equivalent manner (and regardless of whether the security interest is
         perfected), and regardless of whether the foreclosure is termed a
         repossession, cancellation, enforcement, foreclosure or similar term,
         or (ii) an agreement is entered into to do any of the foregoing in
         clause (i).

                                       13

<PAGE>

                  (c) Involuntary Transfer. An "Involuntary Transfer" shall
         occur if a Person attempts to gain absolute rights to any part of a
         Membership Interest or Units by (i) sale pursuant to a levy of
         execution, (ii) garnishment, (iii) attachment, (iv) property division
         or settlement in a marriage dissolution proceeding, (v) the dissolution
         of a Member that is a corporation, partnership, limited liability
         company, trust or other business entity, or (vi) other legal process,
         including without limitation Bankruptcy or receivership proceedings
         intended to Transfer a Membership Interest or Units. The term
         "Involuntary Transfer" specifically includes any Transfer by operation
         of law, including any Transfer pursuant to any testamentary instrument
         or the laws of descent and distribution.

                  (d) Insolvency. A Transferring Holder shall be considered
         "Insolvent" upon filing a petition for Voluntary Bankruptcy or being
         the subject of a petition for Involuntary Bankruptcy (which involuntary
         petition is not dismissed within forty-five (45) days of filing), or if
         a receiver, whether permanent or temporary, of a Transferring Holder's
         property or any part thereof, shall be appointed by a court of
         competent authority, or if a Transferring Holder shall make a general
         assignment for the benefit of creditors, or if any material judgment
         against a Transferring Holder remains unsatisfied or unbonded of record
         for thirty (30) days or longer.

                  (e) Dissolution. For any Member who is not an individual, if
         such Member should dissolve, voluntarily or involuntarily.

         8.3 Notice To Company and Members. Each Transferring Holder shall give
written notice to the Company within thirty (30) days of the occurrence of any
event described in Section 8.2. Such notice shall be sent, return-receipt
requested, to an Officer of the Company other than the Transferring Holder at
the Company's principal administrative office. Upon the Company's receipt, the
Company's Secretary shall send the notice to each Member at the most recent
address reflected on the Company's Required Records or such other residential
address as the party giving notice has reason to know is more current. If the
Transferring Holder fails or refuses to give such notice, the Company or any
Member may do so as soon as it has the information required to be given in such
notice. Each such notice shall contain the following information:

                  (a) Notice of Voluntary Transfer. Any notice of Voluntary
         Transfer shall identify the transferee to whom the Transferring Holder
         desires to sell, exchange, pledge or give a Membership Interest or
         Units, a description of the Membership Interest and Unit and the
         consideration, if any, for the Transfer. The notice shall also identify
         all pertinent terms of the Transfer. A copy of all agreements and
         documents pertinent to the Transfer shall be attached to the notice.

                  (b) Notice of Foreclosure of a Pledge. The notice of
         Foreclosure of a Pledge of a Membership Interest or Units shall
         identify to whom the Member pledged the Membership Interest and Unit, a
         description of the Membership Interest and Units, the reason for the
         foreclosure, and shall identify all material terms of the pledge
         agreement and the foreclosure. A copy of all agreements and documents
         relating to the pledge shall be attached to the notice.

                  (c) Notice of Involuntary Transfer. Any notice of Involuntary
         Transfer shall identify: the order, decree or directive, if any,
         requiring the involuntary Transfer of an a Membership Interest or
         Units, a description of the Membership Interest and Units, the reason

                                       14

<PAGE>

         for the Involuntary Transfer, and the pertinent terms of the
         Involuntary Transfer. A copy of the relevant order, decree or
         directive, if any, shall be attached to the notice.

                  (d) Notice of Insolvency. Any notice of insolvency shall
         identify the manner in which the Transferring Holder is deemed
         Insolvent (as defined in paragraph (d) of Section 8.2) and shall
         identify any trustee or fiduciary appointed with regard to the
         Transferring Holder. A copy of any petition for Bankruptcy, petition
         for Involuntary Bankruptcy, order appointing a receiver, whether
         permanent or temporary, order creating an assignment for the benefit of
         the Transferring Holder's creditors, and/or any judgment against the
         Transferring Holder that has remained unsatisfied or unbonded for a
         period of thirty (30) days or longer shall be attached to the notice.

                  (e) Notice of Dissolution. A notice of dissolution shall
         specify the date in which such event took place or is proposed to take
         place.

         8.4 Company's Option to Purchase. For the period commencing upon the
occurrence of an event giving rise to an option to buy, as specified in Section
8.2, and continuing thereafter until thirty (30) days after the Company's
receipt of notice of the event giving rise to the option, which notice is in
substantial compliance with the provisions of Section 8.3, the Company shall
have the option to purchase all, but not less than all, of the Affected Interest
of a Transferring Holder, which option and right to purchase are at the price
and according to the terms and conditions provided in this Article 8. The
Company may exercise its right and option to purchase by giving notice to the
Transferring Holder and a copy to the other Members of its intention to exercise
its right and option before the expiration of said thirty (30) day period. In no
event shall the Transferring Holder vote, either as a Director or as a Member,
on the question of whether the Company will elect to exercise its option.
Notwithstanding any other provisions of this Agreement, the Company shall not
elect to purchase any Units if the payment of the purchase price would render
the Company unable to pay its debts in the ordinary course of business.

         8.5 Members' Option to Purchase. If the Company does not exercise its
option to purchase as provided for in Section 8.4, then the Members (other than
the Transferring Holder, if a Member) shall have, for a period of thirty (30)
days thereafter, the option and right to collectively purchase all, but not less
than all, of the Affected Interest, which option and right to purchase are at
the price and according to the terms and conditions provided in this Article 8.
Each Member (other than the Transferring Holder) shall have the option and right
to purchase that fraction of the Affected Interest which the respective Units
owned by each bears to the total number of Units owned by all such other Members
(excluding any Units held by the Transferring Holder).

         Members shall exercise their right and option to purchase under this
Section 8.5 by giving notice to the Transferring Holder, the other Members and
the Company of their intention to exercise their right and option within the
applicable thirty (30) day period. In the event that more than one Member elects
to purchase his, her or its proportionate part of the Affected Interest, the
electing Members shall be required to purchase that fraction of the Affected
Interest not purchased by the non-electing Members, which the respective Units
owned by each electing Member bears to the total number of Units of all such
Members electing to exercise their option.

         8.6 Failure of Company and Members to Exercise Option.

                  (a) In the case of a "Voluntary Transfer" (as defined in
         Section 8.2) that is not a Permitted Transfer, if neither the Company
         nor the Members exercise their options pursuant to Sections 8.4 or 8.5,
         respectively, in the time periods provided therein, then the

                                       15

<PAGE>

         Transferring Holder shall not be allowed to Transfer his, her or its
         Units, and such Units shall remain subject to the restrictions on
         Transfer set forth in Article 7 and this Article 8.

                  (b) In the case of all Transfers described in Section 8.2
         (other than a "Voluntary Transfer" as defined in Section 8.2) which are
         not Permitted Transfers, if neither the Company nor the Members
         exercise their options pursuant to Sections 8.4 or 8.5, respectively,
         in the time periods provided therein, then: (a) the Transferring Holder
         shall be free to retain or dispose of the Financial Rights included in
         the Affected Interest; but (b) any attempted or purported Transfer of
         any Governance Rights in violation of this Agreement shall be
         disregarded as provided in the LLC Act and Sections 7.5 and 7.6, and
         the transferee will be an unadmitted transferee as provided in Section
         7.7, unless the Members consent to such Transfer and admit the
         transferee as a new Member pursuant to Section 2.3, in which case such
         transferee must execute this Agreement.

         8.7 Active IQ Buyout Option. Active IQ shall have the right at any time
on or prior to October 6, 2003, to purchase all, but not less than all, of the
Units held by Hawk by delivering written notice to Hawk of such intention on or
prior to October 6, 2003 (the "Active IQ Buyout Option"). Upon exercise of the
Active IQ Buyout Option, all of Hawk's Financial Rights and Governance Rights
shall expire and Hawk shall promptly deliver an assignment instrument assigning
the Units to Active IQ. The purchase price for the purchase and sale of Hawk's
Units pursuant to the Active IQ Buyout Option shall be the issuance of 2,500,000
shares (as appropriately adjusted for any stock splits, combinations, or similar
events with regard to the equity securities of Active IQ) of original-issue
common stock, $0.01 par value, of Active IQ. Active IQ shall have fourteen (14)
days to deliver a certificate representing such shares of common stock to Hawk,
or to have such certificate delivered by Active IQ's transfer agent.

         Upon the purchase and sale of all of Hawk's Units pursuant to this
Section 8.7, all provisions regarding Hawk contained in this Agreement shall be
disregarded.

         8.8 Purchase Price. Except for cases covered by Section 8.7, In the
event of a purchase and sale of an Affected Interest pursuant to the provisions
of this Agreement (including but not limited to a Voluntary Transfer), it is
agreed that, for the purpose of determining the purchase price, the value of the
Affected Interest shall be determined as follows:

                  (a) Agreement. The parties to any purchase and sale hereunder
         shall attempt to agree upon the Affected Interest's fair market value
         (according to the principles set forth in Section 8.8(c) below) within
         15 days of the date of notice of exercise of the applicable purchase
         option

                  (b) Appraisal. If the parties are unable to agree upon a
         valuation within the 15-day period, the Affected Interest's value shall
         be determined by appraisal as follows. The parties shall attempt to
         agree upon a qualified independent business appraiser with at least
         five years of experience appraising entities whose business and purpose
         are similar to the Company. If they are unable to do so within 15 days,
         then the purchasing party shall, within 15 days, name one such
         appraiser, and the selling party shall, within the same time period,
         name another such appraiser. The two appraisers so selected shall,
         within ten (10) days, agree upon the appointment of a third and
         independent so qualified appraiser who shall make a final determination
         of the Affected Interest's fair market value. The costs of any
         appraisals hereunder shall be borne equally between the selling party
         on the one hand, and purchasing party or parties on the other.

                  (c) Valuation Standard. For purposes of this Agreement, the
         fair market value of an Affected Interest shall be the cash price that
         would be payable to a reasonable seller by an unrelated reasonable

                                       16

<PAGE>

         buyer for said Interest, with due consideration given to the terms and
         conditions of this Agreement and all other facts and circumstances.

         8.9 Closing Date and Terms of Purchase.

                  (a) Closing Date. In the event of a sale or Transfer of an
         Affected Interest, the following provisions of this Section 8.9 shall
         apply and the sale and purchase shall close on a reasonable date, at a
         reasonable place and at a reasonable time to be selected by the
         purchasing party, which shall be no later than ninety (90) days after a
         final determination of value pursuant to Section 8.8:

                  (b) Offset of Purchase Price. The Company (or any purchasing
         Members) may offset the purchase price of an Affected Interest by the
         amounts of any debts or damages described in this Agreement, and such
         offset may be used first to reduce amounts due at closing under
         paragraph (c) below, and then the first payments due on any promissory
         note delivered under paragraph (c) below.

                  (c) Payments. Subject to paragraph (b) above, on the date of
         closing the purchasing party (i.e., the Company or one or more Members,
         in which case they shall be collectively referred to as the "purchasing
         party") shall pay to the Transferring Holder at least ten (10%) of the
         purchase price in cash at closing. The purchasing party shall execute a
         promissory note for the remaining balance of the purchase price (i.e.,
         90% or less). Any such promissory note shall be substantially in the
         form attached hereto as Exhibit E and shall require the purchasing
         party to make five (5) equal annual installments of the remaining
         amount of purchase price. All promissory notes executed and delivered
         pursuant hereto shall bear interest at a rate equal to the prime
         lending rate as published in the Wall Street Journal on the date of
         closing. In the event of a purchase by more than one purchasing party,
         the purchasing parties shall execute separate notes for their
         proportionate shares of the unpaid purchase price, which notes shall be
         pursuant to the terms of and in the form of the note attached hereto as
         Exhibit E.

                  (d) Transfer and Pledge of Affected Interest. Upon delivery of
         the cash payment at closing and delivery of the installment note or
         notes specified in the preceding paragraph, the Affected Interest shall
         be assigned to the purchasing party or parties with all necessary
         instruments required to complete the Transfer of the Affected Interest
         on the Company's Required Records. Once the Affected Interest has been
         Transferred, the Affected Interest shall be pledged by the purchasing
         party or parties to the Transferring Holder, to be held as collateral
         security for the payment of said notes pursuant to the provisions of
         the Pledge Agreement (attached hereto as Exhibit F), which each
         purchasing party shall execute on the date of closing. The purchasing
         party or parties shall have the right, while said pledge is effective,
         to vote any pledged Governance Rights and to receive Distributions
         (other than liquidating Distributions under Section 10.3).

                  (e) Guaranty Contribution Agreement. If a Member's Interest is
         purchased under this Article 8 and the former Member is required to pay
         a Company debt because of his guaranty of the debt, each remaining
         Member who also guaranteed the debt shall contribute toward that
         payment his respective share of such payment. The share of such payment
         due from each such remaining Member shall be that fraction of the
         payment which the number of Units held by each such remaining Member
         bears to the total number of Units owned by all such remaining Members.

                                       17
<PAGE>

                                    ARTICLE 9
                             AMENDMENT OF AGREEMENT

         At any time, the Members holding ten percent (10%) or more of the
aggregate Units entitled to vote may propose an amendment to this Agreement, and
in such event the Chief Executive Officer shall call a special meeting of all
Members for the purpose of considering such proposed amendment. At least thirty
(30) days prior to such meeting, the Board shall deliver to each Member written
notice of the meeting and a statement of the purposes of the amendment and such
other matters as the Board deems material to consideration of the amendment. The
amendment so proposed shall be adopted if unanimously approved by Members
holding Units entitled to vote; alternatively, this Agreement may be amended by
a written action signed by Members holding all of the Units entitled to vote.

                                   ARTICLE 10
                                   DISSOLUTION

         10.1 Liquidating Events.

                  (a) The Company shall be dissolved upon the occurrence of any
         of the following events (a "Liquidating Event"): (i) by the unanimous
         written agreement of the Members; or (ii) upon the vote of a majority
         of the Members entitled to vote in favor of a proposal to dissolve the
         Company, at a meeting held pursuant to Section 322B.806 of the LLC Act.

                  (b) As soon as possible following the occurrence of any
         Liquidating Event that causes the dissolution of the Company, the
         appropriate Company representative shall give all of the Members a
         written notice of such Liquidating Event and execute a notice of
         dissolution in such form as shall be prescribed by the Minnesota
         Secretary of State, setting forth the information required under
         Subdivision 1 of Section 322B.81 of the LLC Act, and shall file that
         notice with the Secretary of State's office.

                  (c) If the Company is dissolved, the Company shall cease to
         carry on its business upon filing a notice of dissolution with the
         Minnesota Secretary of State, except insofar as may be necessary for
         the winding up of the Company's business and any Distributions under
         Section 10.3, but its separate existence shall continue until a
         certificate of termination has been issued by such Secretary of State
         or until a decree dissolving the Company has been entered by a court of
         competent jurisdiction.

         10.2 Agreement to Avoid Dissolution. Each Member specifically
acknowledges and agrees that the Company shall not be dissolved upon the
withdrawal or resignation of any Member or other termination of any Member's
Interest in the Company. The events set forth in Section 322B.80, Subdivision 1,
clause (5), of the LLC Act, or a similar provision of subsequent law, shall not
be an event of dissolution for the Company and the Members hereby agree that the
business of the Company shall be continued upon the occurrence of any such event
without any additional action or any additional required consent of any Member
or Director.

         10.3 Distributions on Liquidation. Upon liquidation of the Company, its
business shall be wound up, the Board shall take full account of the Company's
assets and liabilities, and all assets, whether tangible or intangible, shall be
distributed to the Members or liquidated as promptly as is consistent with
obtaining the fair value thereof, as determined by the Board. If any assets are
not sold, gain or loss shall be allocated to the Members in accordance with
Article 4 as if such assets had been sold at their fair market value at the time
of the liquidation. If any assets are distributed to a Member, rather than sold,
the Distribution shall be treated as a distribution equal to the fair market

                                       18
<PAGE>

value of the assets at the time of the liquidation. The assets of the Company
shall be applied and distributed in the following order of priority:

                  (a) to the payment of all debts and liabilities of the
         Company, including all fees due the Members, Directors, Officers and
         their Affiliates, and including any loans that may have been made by
         the Members of the Company, in the order of priority as provided by
         law;

                  (b) to the establishment of any reserves deemed necessary by
         the Board or other Person winding up the Company's affairs for any
         contingent liabilities or obligations of the Company;

                  (c) to the Members, ratably in proportion to the credit
         balances (taking into account the Distributions previously made under
         this Section 10.3) in their respective Capital Accounts, in an amount
         equal to the aggregate credit balances in the Capital Accounts after
         and including all allocations to the Members under Article 4, including
         the allocation of any Profit or Loss from the sale, exchange or other
         disposition (including a deemed sale pursuant to this Section 10.3) of
         the Company's assets; and

                  (d) finally, to the Members ratably in accordance with their
         Units.

         The Company may offset any amount due a Member under this Section 10.3
by the amounts of (i) any debts owed the Company by the Member, and (ii) any
damages suffered by the Company as a result of that Member's breach, if any, of
this Agreement.

                                   ARTICLE 11
                               GENERAL PROVISIONS

         11.1 Notices. All notices required to be given by this Agreement shall
be made in writing either: (a) by personal or commercial courier delivery to the
party requiring notice and securing a written receipt, or (b) by mailing the
notice in the U.S. mails to the last known address of the party requiring
notice, by registered mail, return receipt requested. Notice shall be treated as
given when personally received or, if sent as provided above, the effective date
of the notice shall be the date of the written receipt received upon delivery in
clause (a) above or (except in the event of a mail strike) the date the notice
is sent pursuant to clause (b) above. Such notices will be given to a Member at
the address specified in Exhibit A. Any Member or the Company may, at any time
by giving five (5) days' prior written notice to the other Members and the
Company, designate any other address in substitution of the foregoing address to
which such notice will be given. All notices, offers, demands, certificates or
other communications required or permitted under this Agreement shall be in
writing, signed by the Person giving the same.

         11.2 Consent and Waiver. No consent under and no waiver of any
provision of this Agreement on any one occasion shall constitute a consent under
or waiver of any other provision on said occasion or on any other occasion, nor
shall it constitute a consent under or waiver of the consented-to or waived
provision on any other occasion. No consent or waiver shall be enforceable
unless it is in writing and signed by the party against whom such consent or
waiver is sought to be enforced.

         11.3 Entire Agreement. Except for the Articles, the Bylaws, the Joint
Venture and Joint Contribution Agreement, and the Ancillary Documents (as such
term is defined in the Joint Venture and Joint Contribution Agreement), this
Agreement constitutes the entire agreement among the parties with respect to the
Company. It supersedes any prior agreement or understanding among them, and it
may not be modified or amended in any manner other than as set forth herein.

                                       19

<PAGE>

         11.4 Governing Law; Jurisdiction. This Agreement and the rights of the
parties hereunder shall be governed by, interpreted and enforced in accordance
with the laws of the State of Minnesota without regard to the principles of
conflicts-of-law. Each of the parties hereto consents to the exclusive
jurisdiction of the federal courts whose districts encompass any part of the
City of Minneapolis or the state courts of the State of Minnesota sitting in the
City of Minneapolis in connection with any dispute arising in connection with
the Contemplated Transactions. Each party hereto hereby irrevocably and
unconditionally waives, to the fullest extent it may effectively do so, any
defense of an inconvenient forum or improper venue to the maintenance of such
action or proceeding in any such court and any right of jurisdiction on account
of its place of residence or domicile. Each party hereto irrevocably and
unconditionally consents to the service of any and all process in any such
action or proceeding in such courts by the mailing of copies of such process by
certified or registered airmail at its address specified in Section 11.1. Each
party hereto agrees that a final judgment in any such action or proceeding shall
be conclusive and may be enforced in other jurisdictions by suit on the judgment
or in any other manner provided by law.

         11.5 Binding Effect. Except as herein otherwise specifically provided,
this Agreement shall be binding upon and inure to the benefit of the Members and
their legal representatives, heirs, administrators, executors, successors and
permitted assigns.

         11.6 Number and Gender. Wherever from the context it appears
appropriate, each term stated in either the singular or the plural shall include
the singular and the plural and pronouns stated in either the masculine, the
feminine, or the neuter gender shall include the masculine, feminine and neuter.

         11.7 Interpretation. All references herein to Articles, Sections and
paragraphs refer to Articles, Sections and paragraphs of this Agreement. All
Article, Section and paragraph headings are for reference purposes only and
shall not affect the interpretation of this Agreement.

         11.8 Severability. If any provision of this Agreement or the
application of such provision to any Person or circumstances, shall be held
invalid, the remainder of the Agreement, or the application of such provision to
Persons or circumstances other than those to which it is held invalid, shall not
be affected thereby.

         11.9 Counterparts. This Agreement may be executed in any number of
counterparts, all of which taken together shall constitute one agreement binding
on all Members. Facsimile and electronically transmitted signatures shall be
valid and binding to the same extent as original signatures. Each Member shall
become bound by this Agreement immediately upon signing and delivering any
counterpart, independently of the signature of any other Member. However, in
making proof of this Agreement, it will be necessary to produce only one copy
signed by the party to be charged.

         11.10 Right to Specific Performance. In view of the fact that the
Membership Interests subject to this Agreement are of a closely held limited
liability company, and in view of the purposes of this Agreement, it is agreed
that the remedy at law for failure of any party to perform would be inadequate
and that the injured party or parties, at his, her or their option, shall have
the right to compel the specific performance of this Agreement in a court of
competent jurisdiction, to the extent permitted by the LLC Act and other
applicable law, and not expressly prohibited by this Agreement.

         11.11 Further Assurances. Each Member agrees to execute and deliver
such additional documents and instruments and to perform such additional acts as
may be necessary or appropriate to effectuate, carry out and perform all of the
terms, provisions and conditions of this Agreement and the transactions
contemplated hereby.

                                       20

<PAGE>

         11.12 No Third-Party Beneficiary. This Agreement is made solely and
specifically among and for the benefit of the parties hereto and their
respective successors and assigns, and no other Person will have any rights,
interest or claims hereunder or be entitled to any benefits under or on account
of this Agreement as a third-party beneficiary or otherwise.

         11.13 Incorporation by Reference. Each of the exhibits, schedules and
other appendices attached to this Agreement and referred to herein is hereby
incorporated into this Agreement by reference, unless this Agreement expressly
otherwise provides.

         11.14 Discretion. Whenever a Person may take action under this
Agreement is his, her or its "sole discretion," "sole and absolute discretion"
or "discretion," or under a grant of similar authority or latitude, such Person
shall be entitled to consider any factors and interests as it desires, including
its own interests.

         11.15 Arbitration. The parties will, to the greatest extent possible,
endeavor to resolve any disputes relating to the Agreement through amicable
negotiations with escalation to the top executives of each party. Failing an
amicable settlement, any controversy, claim or dispute arising under or relating
to this Agreement, including the existence, validity, interpretation,
performance, termination or breach of this Agreement, will finally be settled by
binding arbitration before a single arbitrator (the "Arbitration Tribunal")
which will be jointly appointed by the parties. The Arbitration Tribunal shall
self-administer the arbitration proceedings utilizing the Commercial Rules of
the American Arbitration Association ("AAA"); provided, however, the AAA shall
not be involved in administration of the arbitration. The arbitrator must be a
retired judge of a state or federal court of the United States or a licensed
lawyer with at least ten (10) years of corporate or commercial law experience
from a law firm with at least 10 attorneys and at least an AV rating by
Martindale Hubbell. If the parties cannot agree on an arbitrator, either party
may request the AAA to appoint an arbitrator which appointment will be final.

         The arbitration will be held in Minneapolis, Minnesota. Each party will
have discovery rights as provided by the Federal Rules of Civil Procedure within
the limits imposed by the arbitrator; provided, however, that all such discovery
will be commenced and concluded within sixty (60) days of the selection of the
arbitrator. It is the intent of the parties that any arbitration will be
concluded as quickly as reasonably practicable. Once commenced, the hearing on
the disputed matters will be held four days a week until concluded, with each
hearing date to begin at 9:00 a.m. and to conclude at 5:00 p.m. The arbitrator
will use all reasonable efforts to issue the final written report containing
award or awards within a period of five (5) business days after closure of the
proceedings. Failure of the arbitrator to meet the time limits of this Section
will not be a basis for challenging the award. The Arbitration Tribunal will not
have the authority to award punitive damages to either party. Each party will
bear its own expenses, but the parties will share equally the expenses of the
Arbitration Tribunal. The Arbitration Tribunal shall award attorneys' fees and
other related costs payable by the losing party to the successful party as it
deems equitable. This Agreement will be enforceable, and any arbitration award
will be final and non-appealable, and judgment thereon may be entered in any
court of competent jurisdiction. Notwithstanding the foregoing, claims for
injunctive relief may be brought in a state or federal court in Minneapolis,
Minnesota.

         11.16 Litigation Expense. If any disputant (as defined in Section
11.15, and including all disputants opposing one or more other disputants as one
party) is made or shall become a party to any litigation (including arbitration)
commenced by or against another disputant involving the enforcement of any of
the rights or remedies of such disputant, or arising on account of a default of
the other disputant in its performance of any of the other disputant's
obligations hereunder, then the prevailing disputant in such litigation shall
receive from the other disputant all costs incurred by the prevailing disputant
in such litigation, plus reasonable attorneys' fees to be fixed by the court or

                                       21

<PAGE>

arbitrator (as applicable), with interest thereon from the date of judgment or
arbitrator's decision at the rate of ten percent (10%) or, if less, the maximum
rate permitted by law.

                             Signature Page Follows

                                       22

<PAGE>

         IN WITNESS WHEREOF, the undersigned Members have duly executed this
Member Control Agreement to be effective as of the Effective Date.

                                     MEMBERS:

                                     Active IQ Technologies, Inc.
                                     a Minnesota corporation

                                     /s/ Kenneth W. Brimmer
                                     ------------------------------------------
                                     KENNETH W. BRIMMER, Chief Executive Officer

                                     Hawk Precious Minerals USA, Inc.
                                     a Minnesota corporation

                                     /s/ H. Vance White
                                     -------------------------------------------
                                     H. VANCE WHITE, President

                   Signature Page - Member Control Agreement

<PAGE>

                                   APPENDIX OF
                               GENERAL DEFINITIONS

         Wherever used in this Agreement, unless another meaning is explicitly
indicated by the context, the following terms shall have the meanings set forth
below:

         "Active IQ" means Active IQ Technologies, Inc., a Minnesota corporation
and initial Member of this Company.

         "Active IQ Buyout Option" shall have the meaning set forth in Section
8.7.

         "Affected Interest" shall have the meaning set forth in Section 8.1(a).

         "Affiliate" means, with respect to a specific Person, any of the
following other Persons: (a) any Person directly or indirectly controlling,
controlled by, or under common control with such Person; (b) any Person owning
or controlling ten percent (10%) or more of the outstanding voting interest of
such Person; (c) any officer, director, or general partner of such Person; or
(d) any Person who is an officer, director, general partner, trustee, or holder
of ten percent (10%) or more of the voting interest of any Person described in
clauses (a) through (c) of this sentence. For purposes of this definition, the
terms "control," "is controlled by," or "is under common control with" shall
mean the direct or indirect possession of the power to direct or cause the
direction of the management and policies of a Person, whether through the
ownership of voting securities, by contract or otherwise.

         "AfriOre" shall mean AfriOre International (Barbados) Limited, as set
forth in Section 1.4.

         "Agreement" or "Member Control Agreement" means this Member Control
Agreement (including all of its Exhibits and Schedules, if any), as the same may
be amended from time to time.

         "Appraiser" shall have the meaning set forth in Section 8.8(b).

         "Articles" shall mean the Articles of Organization filed on behalf of
the Company with the Minnesota Secretary of State on the Formation Date and
attached hereto as Exhibit C, as they may be amended from time to time by the
Members pursuant to this Agreement, the LLC Act and the Bylaws.

         "Bankruptcy" means, with respect to any Person, a "Voluntary
Bankruptcy" or an "Involuntary Bankruptcy."

                  (a) "Voluntary Bankruptcy" means, with respect to any Person,
         the inability of such Person generally to pay his, her or its debts as
         such debts become due or an admission in writing by such Person of his,
         her or its inability to pay such debts generally or a general
         assignment by such Person for the benefit of creditors; the filing of
         any petition or answer by such Person seeking to adjudicate it a
         bankrupt or insolvent or seeking for such Person any liquidation,
         winding up, reorganization, arrangement, adjustment, protection, relief
         or composition of such Person or the debts of such Person under any law
         relating to bankruptcy, insolvency or reorganization or relief of
         debtors, or seeking, consenting to or acquiescing in the entry of an
         order for relief or the appointment of a receiver, trustee, custodian
         or other similar official for such Person or for any substantial part
         of such Person's property; or corporate action taken by such Person to
         authorize any of the actions set forth above.

                  (b) "Involuntary Bankruptcy" means, with respect to any Person
         and without the consent or acquiescence of such Person, the entry of an
         order for relief or approval of a petition for relief or reorganization

<PAGE>

         or any other petition seeking any reorganization, arrangement,
         composition, readjustment, liquidation, dissolution or other similar
         relief under any present or future bankruptcy, insolvency or similar
         statute, law or regulation; or the filing of any such petition against
         such Person which petition shall not be dismissed within ninety (90)
         days; or, without the consent or acquiescence of such Person, the entry
         of any order appointing a trustee, custodian, receiver or liquidator of
         such Person or of all or any substantial part of the property of such
         Person, which order shall not be dismissed within sixty (60) days.

         "Board" means the Company's Board of Directors, appointed by the
Members pursuant to Sections 5.1 and 5.2 and the Bylaws.

         "Bylaws" means the Company's Bylaws as adopted under the LLC Act, and
hereafter amended from time to time by the Board or the unanimous vote of the
Members entitled to vote. The initial Bylaws are attached hereto as Exhibit D.

         "Additional Capital Contributions" means, with respect to each Member,
the Capital Contributions made by such Member pursuant to Section 3.4, reduced
by the amount of any liabilities of such Member either assumed by the Company in
connection with such Capital Contribution or which are secured by any property
contributed by such Member as a part of such Capital Contribution.

         "Capital Account" shall have the meaning set forth in Section 3.1.

         "Capital Contribution" shall have the meaning set forth in Section
3.1(c).

         "Hawk Sub" means Hawk Precious Minerals USA, Inc., a Minnesota
corporation and initial Member of this Company.

         "Code" means the Internal Revenue Code of 1986, as amended from time to
time (and any corresponding provisions of succeeding law).

         "Company" means Active Hawk Minerals, LLC, the Minnesota limited
liability company formed on the Formation Date.

         "Company Property" means all real and personal property acquired and
held from time to time by the Company, and any improvements thereto, and shall
include both tangible and intangible property.

         "Contribution Agreement" means an agreement in writing, executed by the
Company and one or more Person(s) desiring to become a Member after the
Effective Date, setting forth the terms of such Person's admission as a Member,
including but not limited to the agreed upon value of the Capital Contribution
that shall be made by such Person to the Company and the number and type of
Company Units to be issued to such Person in exchange.

         "Depreciation" shall have the meaning set forth in Section 2 of the
Income Tax Appendix.

         "Director" shall mean any individual natural person appointed under
Section 5.2 to serve on the Board. The term "director" as used in this Agreement
and in the Bylaws has replaced the term "governor" as used in the LLC Act, and
shall have the same meaning and legal significance as the term "governor" under
the LLC Act.

         "Distribution" means any distribution to the Members of cash or other
Company assets made from time to time pursuant to the provisions of this
Agreement.

<PAGE>

         "Effective Date" is defined in the introductory paragraph of this
Agreement.

         "Estimated Member Tax Liability" for a Member means the highest actual
combined marginal federal and state tax rate percentage of any of the Members
multiplied by the Company's taxable income and gains, as reported on the
Company's federal income tax informational return for the Fiscal Year, allocated
to such Member pursuant to this Agreement, excluding any guaranteed payments to
any Members in consideration for services rendered to the Company. It shall be
the obligation of each Member to submit satisfactory evidence of such Member's
marginal tax rates pursuant to a policy determined by the Board from time to
time.

         "Financial Rights" means a Member's rights to: (a) a Capital Account;
(b) a share of the Company Profits, Losses and Distributions as set forth in
this Agreement; (c) Distributions on liquidation pursuant to Article 10; and (d)
a Member's limited right, if any, to Transfer such rights according to the
provisions of Article 8.

         "First Funding" and "First Funding Date" shall have the meanings
ascribed to them, respectively, in Section 3.3.

         "Fiscal Year" means (a) the period commencing on the Formation Date and
ending on December 31 of the year of this Agreement, (b) any subsequent calendar
year, or (c) any portion of either of the periods described in clauses (a) and
(b) for which the Company is required to close its books and allocate Profits,
Losses and other Company items pursuant to Article 4.

         "Force Majeure" shall mean an event which (i) is not within the
reasonable control of the party claiming Force Majeure (the "claiming party"),
(ii) was not caused by the acts, omissions, negligence, fault or delays of the
claiming party or any Person over whom the claiming party has control, and (iii)
by the prompt exercise of due diligence, the claiming party is unable to
overcome or avoid or cause to be avoided. Force Majeure shall include but is not
limited to: acts of God; acts of the public enemy, war, hostilities, invasion,
insurrection, riot, civil disturbance, terrorism or internet hacking; explosion
or fire; strikes or lockouts; malicious acts, vandalism or sabotage.

         "Foreclosure of a Pledge" shall have the meaning set forth in Section
8.2(b).

         "Formation Date" shall have the meaning set forth in Section 1.1.

         "Governance Rights" means all of a Member's rights as a Member, other
than the such Member's Financial Rights.

         "Gross Asset Value" shall have the meaning set forth in Section 3 of
the Income Tax Appendix.

         "Income Tax Appendix" means the Income Tax Appendix attached hereto and
hereby made a part of this Agreement, which Income Tax Appendix includes certain
definitions and other provisions intended primarily for income tax purposes.

         "Insolvent" shall have the meanings set forth in Section 8.2(d).

         "Interest" shall have the same meaning as Membership Interest (defined
below).

         "Involuntary Transfer" shall have the meaning set forth in Section
8.2(c).

<PAGE>

         "Joint Venture and Joint Contribution Agreement" shall have the meaning
set forth in the Introduction to this Agreement. A copy of the Joint Venture and
Joint Contribution Agreement is attached hereto as Exhibit B.

         "LLC Act" means the Minnesota Limited Liability Company Act, as set
forth in Minnesota Statutes, Chapter 322B, as amended from time to time (or any
corresponding provisions of succeeding law).

         "Liquidating Event" shall have the meaning set forth in Section 10.1.

         "Loss" and "Losses" shall have the meanings set forth in Section 4.1.

         "Member" or "Members" shall have the meaning set forth in Section 2.1.

         "Membership Interest" or "Interest" means the entire interest of a
Member in the Company and the appurtenant rights, powers and privileges,
including both the Financial Rights and Governance Rights, if any, of such
Member with respect to the Company. The quantity of a Member's Membership
Interest is determined by the number of Units held by the Member relative to the
number of Units held by all other Members. The quality of a Member's Membership
Interest is determined by the type, class and series of Units held by the Member
and the relative rights and preferences appurtenant to that type, class and
series of Units.

         "Net Cash From Operations" means the gross cash proceeds from Company
operations, less the portion thereof used to pay or establish reserves for all
Company expenses, debt payments, capital improvements, replacements and
contingencies, all as determined by the Board. "Net Cash From Operations" shall
not be reduced by depreciation, amortization, cost-recovery deductions or
similar allowances, but shall be increased by any reduction of reserves
previously established pursuant to the preceding sentence.

         "Officer" means the Chief Executive Officer, the Chief Financial
Officer/Treasurer, and Secretary elected by the Board and each other individual
who shall hereafter be elected, appointed or otherwise designated as an officer
by the Board pursuant to Section 5.1 and the Bylaws, and any other person
elected as deemed to be an officer pursuant to the LLC Act. The term "officer"
as used in this Agreement and in the Bylaws has replaced the term "manager" as
used in the LLC Act, and shall have the same meaning and legal significance as
the term "manager" under the LLC Act.

         "Permitted Transfer" shall have the meaning set forth in Section 7.2.

         "Person" means any individual, partnership, limited liability company,
corporation, trust or other entity.

         "Profits" shall have the meaning set forth in Section 4.1.

         "Regulations" means the Income Tax Regulations, including Temporary
Regulations, promulgated under the Code, as such regulations may be amended from
time to time (including corresponding provisions of succeeding regulations).

         "Required Records" are the financial records and other records required
to be kept at the Company's principal executive office under Section 322B.373 of
the LLC Act.

<PAGE>

         "Second Funding" and "Second Funding Date" shall have the meanings
ascribed to them, respectively, in Section 3.3.

         "Transfer" means, as a noun, any voluntary or involuntary transfer (by
operation of law, Bankruptcy, court order or otherwise), sale, exchange,
assignment, pledge or other encumbrance, foreclosure of a security interest
upon, or other disposition of an item; or, as a verb, to voluntarily or
involuntarily cause a Transfer of an item. "Transferred" means, as a past
participle or participial adjective, that an item has been the subject of a
Transfer.

         "Transferring Holder" shall have the meaning set forth in Section
8.1(b).

         "Unit" means a quantitative measurement of an entire Membership
Interest or portion thereof. Except as may be otherwise specifically provided
herein with respect to different types, classes and series of Units, each Unit
of the Company shall have equal rights and preferences. The number of Units to
which a Member is entitled shall not be affected by either (a) any issuance of
new Units to new or existing Members or (b) any change in the Capital Account of
the Member (other than the effect of an Additional Capital Contribution made by
the Member in exchange for new Units). The number and type of Units allocated to
each of the Members is set forth in Exhibit A, as amended from time to time. A
Member's relative voting power as a Member shall be based on the number of Units
to which the Member is entitled.

         "Voluntary Transfer" shall have the meaning set forth in Section
8.2(a).

<PAGE>

Pursuant to Item 601(b)(2) of Regulation S-K, certain Schedules and Exhibits
have been omitted from this Agreement. The Registrant will furnish a copy of any
omitted Schedule or Exhibit to the Commission upon request.

         The following Exhibits have been omitted:

         Exhibit A

         Exhibit C

         Exhibit D

         Exhibit E

         Exhibit F

         Income Tax Appendix

         Exhibit B is filed as Exhibit 10.1 to this Form 8-K.<PAGE>
                                                                    Exhibit 10.1

                                 SCANSOFT, INC.

                              EMPLOYMENT AGREEMENT

      This Agreement is entered into as of April 23, 2003, by and between
ScanSoft, Inc. (along with its successors and assigns, the "Company") and Stuart
R. Patterson (the "Executive").

      1. Duties and Scope of Employment.

            (a) Positions and Duties. Executive will serve as President of the
Company. Executive will render such business and professional services in the
performance of Executive's duties consistent with Executive's position within
the Company and as reasonably assigned to Executive by the Chief Executive
Officer of the Company. The period of Executive's employment under this
Agreement is referred to herein as the "Employment Term." The Employment Term
shall commence upon the Effective Date (as defined in Section 15 below).

            (b) Board Membership. During the Employment Term, Executive will
serve as a member of the Board of Directors of the Company (the "Board"),
subject to any required stockholder approval.

            (c) Obligations. During the Employment Term, Executive will devote
Executive's full business efforts and time to the Company. For the duration of
the Employment Term, Executive agrees not to actively engage in any other
employment, occupation or consulting activity for any direct or indirect
remuneration without the prior approval of the Board of Directors of the
Company, which approval will not be unreasonably withheld; provided, however,
that Executive may, without the approval of the Board, serve in any capacity
with any civic, educational or charitable organization, subject to Section 5
herein.

      2. At-Will Employment. Executive and the Board acknowledge that this
employment relationship may be terminated at any time, upon ninety (90) days
written notice to the other party, with or without good cause or for any or no
cause, at the option either of the Board or Executive. Executive understands and
agrees that neither Executive's job performance nor promotions, commendations,
bonuses or the like from the Company give rise to or in any way serve as the
basis for modification, amendment, or extension, by implication or otherwise, of
Executive's employment with the Company. However, as described in this
Agreement, Executive may be entitled to severance benefits depending upon the
circumstances of Executive's termination of employment.

      3. Compensation.

            (a) Base Salary. The Company will pay Executive as compensation for
Executive's services a base salary at the annualized rate of $275,000 through
the first year of the Employment Term, $300,000 through the second year of the
Employment Term, and $325,000 through the third year of the Employment Term
(respectively, the "Base Salary"). Upon the third anniversary of the

                                                                             -1-
<PAGE>
Employment Term, if no explicit terms to the contrary have been discussed and
agreed upon by Executive and the Company, the Base Salary shall increase by
$25,000 each year of the Employment Term, commencing on the third anniversary of
the Effective Date. The Base Salary will be paid through payroll periods that
are consistent with the Company's normal payroll practices and will be subject
to the usual, required withholding.

            (b) Performance Bonus. For each fiscal year of the Company,
Executive will be eligible to receive a target bonus of up to fifty percent
(50%) of Executive's then Base Salary based upon the achievement of performance
criteria established within four (4) months of the start of the applicable bonus
period by the Compensation Committee of the Board, after consultation with
Executive (for the fiscal year ending on December 31, 2003, the bonus shall be
prorated based on the number of months actually worked). The performance
standards will be based on the Company's achievement of revenue, diluted
earnings per share ("EPS") and time to market ("TTM") goals. The actual
percentage of Base Salary payable as a bonus for any year will depend upon the
extent to which the applicable performance criteria have been achieved. Any
bonus that actually is earned will be paid as soon as practicable (but no later
than 2-1/2 months) after the end of the fiscal year for which the bonus is
earned, but only if Executive was employed with the Company through the end of
such fiscal year.

            (c) Success Bonus. If, on the first (1st) anniversary of the
Effective Date, the Company has achieved the performance goals established,
within four (4) months of the Effective Date, by the Compensation Committee of
the Board, after consultation with Executive, then Executive will fully vest in
fifty percent (50%) of Executive's then unvested shares of restricted Company
common stock that were assumed in the Merger (the "Restricted Stock"), but only
if Executive was employed with the Company through the first (1st) anniversary
of the Effective Date. The performance goals to be established will be based
upon factors and criteria, to be agreed upon by the Compensation Committee of
the Board after consultation with Executive, relating to the successful
integration of the Company's business after the Merger.

            (d) Stock Options. On the Effective Date, Executive will be granted
a stock option to purchase one million (1,000,000) shares of the Company's
Common Stock at an exercise price equal to the fair market value of the
Company's Common Stock on the date of grant (the "Option"). Subject to the
accelerated vesting provisions set forth herein, the Option will vest as to 1/16
of the shares subject to the Option on the date that is three (3) months from
the Effective Date, and 1/16 of the original number of shares subject to the
Option will vest on the date that falls at the end of every three (3) month
period thereafter, subject to Executive's continued employment with the Company
on the relevant vesting date(s). In no event will the Option be exercisable
beyond the eighth (8th) anniversary of the Effective Date. The Option will be
subject to the terms, definitions and provisions of the stock option plan, which
is intended to be the SpeechWorks International, Inc. 2000 Employee, Director
and Consultant Stock Plan (the "Option Plan"), and the stock option agreement
(the "Option Agreement") under which it is granted, both which documents are
incorporated herein by reference.

            (e) Employee Benefits. During the Employment Term, Executive will be
entitled to participate in the employee benefit plans currently and hereafter
maintained by the Company of general applicability to other senior executives of
the Company, including, without limitation, the

                                                                             -2-
<PAGE>
Company's group medical, dental, vision, disability, life insurance, and
flexible-spending account plans. The Company reserves the right to cancel or
change the benefit plans and programs it offers to its employees at any time.

      4. Severance. Upon termination of employment for any reason, Executive
shall receive payment of (a) his Base Salary, as then in effect, through the
date of termination of employment, and (b) all accrued vacation, expense
reimbursements and any other benefits (other than severance benefits, except as
provided below) due to Executive through the date of termination of employment
in accordance with established Company plans and policies or applicable law (the
"Accrued Obligations"). In addition, the following shall apply:

            (a) Involuntary Termination other than for Cause, Death or
Disability. If Executive's employment with the Company is terminated for a
reason other than (i) Cause, (ii) Executive becoming Disabled or (iii)
Executive's death, or if the Executive terminates his employment with the
Company for Good Reason, then, subject to Executive's compliance with the
provisions in Section 4(e), Executive will be entitled to: (i) continuing
payments of Executive's Base Salary, as then in effect, during the Severance
Period, to be paid periodically in accordance with the Company's normal payroll
policies and subject to the usual, required withholding; (ii) continued payment
by the Company of the group medical, dental and vision continuation coverage
premiums for Executive and Executive's eligible dependents under Title X of the
Consolidated Budget Reconciliation Act of 1985, as amended ("COBRA") during the
Severance Period under the Company's group health plans, as then in effect;
(iii) immediately fully vest on the termination date in that portion of
Executive's stock options and unvested Restricted Stock that would have vested
during the Severance Period; and (iv) exercise the vested portion of the
Executive's outstanding options until the earlier of (A) one year from the date
of termination, or (B) the end of the term of the applicable option.

            (b) Change of Control Benefits. If, within six (6) months following
a Change of Control, Executive's employment with the Company is terminated for a
reason other than (i) Cause, (ii) Executive becoming Disabled or (iii)
Executive's death, or if the Executive terminates his employment with the
Company for Good Reason, then, subject to Executive's compliance with the
provisions in Section 4(e), Executive also will be entitled to automatic
acceleration of Executive's outstanding stock options and unvested Restricted
Stock so as to make the stock options and unvested Restricted Stock one-hundred
percent (100%) vested.

            (c) Resignation After One (1) Year. If, after the one (1) year
anniversary of the Effective Date, the Executive terminates his employment with
the Company for any or no reason, then, subject to Executive's compliance with
the provisions in Section 4(e), Executive will be entitled to: (i) continuing
payments of Executive's Base Salary, as then in effect, during the Severance
Period, to be paid periodically in accordance with the Company's normal payroll
policies and subject to the usual, required withholding; (ii) continued payment
by the Company of the group medical, dental and vision continuation coverage
premiums for Executive and Executive's eligible dependents under COBRA during
the Severance Period under the Company's group health plans, as then in effect;
(iii) immediately fully vest on the termination date in that portion of
Executive's stock options and unvested Restricted Stock that would have vested
during the Severance Period;

                                                                             -3-
<PAGE>
and (iv) exercise the vested portion of the Executive's outstanding options
until the earlier of (A) one year from the date of termination, or (B) the end
of the term of the applicable option.

            (d) Other Termination. If the Executive terminates Executive's
employment with the Company other than for Good Reason and on or prior to the
one (1) year anniversary of the Effective Date, or if Executive's employment
with the Company is terminated for Cause, due to Executive's death or due to
Executive becoming Disabled then Executive will receive payment of the Accrued
Obligations but he shall not be entitled to any other compensation or benefits
(including, without limitation, accelerated vesting of stock options) from the
Company, except to the extent provided under the applicable stock option
agreement(s), Company benefit plans or as may be required by law (for example,
under COBRA).

            (e) Conditions to Receive Severance Package. Except for the Accrued
Obligations, the applicable provisions of the Option Plan and Option Agreement,
and other payments to which Executive may be entitled by law, the severance
payments, continued benefits, continued vesting, vesting acceleration and the
ability to exercise stock options described in this Section 4 will be provided
to Executive if the following conditions are satisfied: (i) Executive complies
with all surviving provisions of the Confidential Information Agreement and any
confidentiality or proprietary rights agreement signed by Executive; and (ii)
Executive executes and delivers to the Company, and does not revoke, a full
general release, in a form acceptable to the Company, releasing all claims,
known or unknown, that Executive may have against the Company, and any
subsidiary or related entity, their officers, directors, employees and agents,
arising out of or any way related to Executive's employment or termination of
employment with the Company.

            (f) Cause. For purposes of this Agreement, "Cause" means Executive's
employment with the Company is terminated after a majority of the Board has
found any of the following to exist: (i) Executive's theft, dishonesty that
materially harms the Company or falsification of any Company records; (ii)
disclosure of the Company's confidential or proprietary information which
violates the terms of the Confidential Information Agreement; (iii) Executive's
continued substantial willful nonperformance (except by reason of Disability) of
his employment duties after Executive has received a written demand for
performance by the Board and has failed to cure such nonperformance within 15
business days of receiving such notice; or (iv) Executive's conviction of, or
plea of nolo contendere to, a felony which such conviction or plea materially
harms the business or reputation of the Company.

            (g) Change of Control. For the purposes of this Agreement, a "Change
of Control" means: (i) any "person" (as such term is used in Sections 13(d) and
14(d) of the Securities Exchange Act of 1934, as amended) becomes the
"beneficial owner" (as defined in Rule 13d-3 under said Act), directly or
indirectly, of securities of the Company representing 50% or more of the total
voting power represented by the Company's then outstanding voting securities; or
(ii) a change in the composition of the Board occurring within a two-year
period, as a result of which fewer than a majority of the directors are
Incumbent Directors. "Incumbent Directors" will mean directors who either (A)
are members of the Board as of the Effective Date, or (B) are elected, or
nominated for election, to the Board with the affirmative votes of at least a
majority of the Board at the time of such election or nomination (but will not
include an individual whose election or nomination is in connection with an
actual or threatened proxy contest relating to the election of directors to the

                                                                             -4-
<PAGE>
Company); or (iii) the date of the consummation of a merger or consolidation of
the Company with any other corporation that has been approved by the
stockholders of the Company, other than a merger or consolidation which would
result in the voting securities of the Company outstanding immediately prior
thereto continuing to represent (either by remaining outstanding or by being
converted into voting securities of the surviving entity) more than fifty
percent (50%) of the total voting power represented by the voting securities of
the Company or such surviving entity outstanding immediately after such merger
or consolidation; or (iv) the date of the consummation of the sale or
disposition by the Company of all or substantially all the Company's assets.
Notwithstanding the foregoing, the Merger will not constitute a Change of
Control for purposes of this Agreement.

            (h) Disabled. For purposes of this Agreement, "Disabled" means
Executive being unable to perform the principal functions of his duties due to a
physical or mental impairment, but only if such inability has lasted or is
reasonably expected to last for at least six months. Whether Executive is
Disabled will be determined by the Board based on evidence provided by one or
more physicians selected by the Board.

            (i) Good Reason. For purposes of this Agreement, "Good Reason" means
(i) without the Executive's consent, a significant reduction of the Executive's
duties, position, reporting status, or responsibilities relative to the
Executive's duties, position, reporting status, or responsibilities in effect
immediately prior to such reduction, or the removal of the Executive from such
position, duties and responsibilities or change in reporting status, unless the
Executive is provided with comparable duties, position and responsibilities or
reporting status; provided, however, that a reduction in duties, position,
reporting status or responsibilities solely by virtue of the Company being
acquired and made part of a larger entity will not constitute "Good Reason" to
the extent Executive remains the President of a division or subsidiary of the
acquiror, which division or subsidiary conducts substantially the same core
operations, business and activities as were conducted by the Company prior to
any such acquisition or similar corporate transaction; (ii) without the
Executive's consent, a substantial reduction, by the Board of the Executive's
Base Salary as in effect immediately prior to such reduction (unless such
reduction is part of an overall Company effort that effects similarly situated
senior executives of the Company); (iii) without the Executive's consent, the
requirement that Executive relocate his principal place of employment more than
fifty (50) miles from the current location of the Company's principal executive
offices; (iv) a material breach by the Company of this Agreement; (iv) failure
of Executive to be nominated as a Board member; and (v) failure of the Board to
maintain (for any reason, and for the period, if any, specified by Section 5.17
of the Reorganization Agreement) the requisite number of Company Designated
Directors as contemplated by Section 5.17 of the Reorganization Agreement.
Notwithstanding the foregoing, changes to Executive's position, duties and
responsibilities resulting from the Merger and specified in this Agreement will
not constitute Good Reason for purposes of this Agreement.

            (j) Severance Period. For purposes of this Agreement, "Severance
Period" means the period beginning on the date of Executive's termination of
employment with the Company and ending on the date (i) eighteen (18) months
later, if Executive's employment with the Company is terminated pursuant to
Section 4(a) before the date six (6) months following the Effective Date, (ii)
fifteen (15) months later, if Executive's employment with the Company is
terminated pursuant to Section 4(a) on or after the date six (6) months
following the Effective Date and before the one (1)

                                                                             -5-
<PAGE>
year anniversary of the Effective Date, and (iii) twelve (12) months later, if
Executive's employment with the Company is terminated pursuant to Section 4(a)
or 4(c) on or after the one (1) year anniversary of the Effective Date.

      5. Confidential Information. Upon commencement of employment hereunder,
Executive agrees to enter into the Company's standard Confidential Information
and Invention Assignment Agreement, which will include non-competition,
non-solicitation, and non-disparagement clauses that will last for twelve (12)
months following Executive's termination of employment with the Company (the
"Confidential Information Agreement").

      6. Assignment. This Agreement will be binding upon and inure to the
benefit of (a) the heirs, executors and legal representatives of Executive upon
Executive's death and (b) any successor of the Company. Any such successor of
the Company will be deemed substituted for the Company under the terms of this
Agreement for all purposes. For this purpose, "successor" means any person,
firm, corporation or other business entity which at any time, whether by
purchase, merger or otherwise, directly or indirectly acquires all or
substantially all of the assets or business of the Company. None of the rights
of Executive to receive any form of compensation payable pursuant to this
Agreement may be assigned or transferred except by will or the laws of descent
and distribution. Any other attempted assignment, transfer, conveyance or other
disposition of Executive's right to compensation or other benefits will be null
and void.

      7. Notices. All notices, requests, demands and other communications called
for hereunder will be in writing and will be deemed given (i) on the date of
delivery if delivered personally, (ii) one (1) day after being sent by a well
established commercial overnight service, or (iii) four (4) days after being
mailed by registered or certified mail, return receipt requested, prepaid and
addressed to the parties or their successors at the following addresses, or at
such other addresses as the parties may later designate in writing:

         If to the Company:

         ScanSoft, Inc.
         9 Centennial Drive
         Peabody, MA 01960

         Attn: Chief Financial Officer

         If to Executive:

         at the last residential address known by the Company

         With a Copy To:
         Peter J. Marathas, Jr.
         Mintz, Levin, Cohn, Ferris, Glovsky and Popeo, P.C.
         One Financial Center
         Boston, MA  02111

                                                                             -6-
<PAGE>
      8. Severability. In the event that any provision hereof becomes or is
declared by a court of competent jurisdiction to be illegal, unenforceable or
void, this Agreement will continue in full force and effect without said
provision.

      9. Entire Agreement. This Agreement, together with the Option Plan, Option
Agreement, Confidentiality Agreement, and any SpeechWorks confidentiality or
proprietary rights agreement signed by Executive, represents the entire
agreement and understanding between the Company and Executive concerning the
subject matter herein and Executive's employment relationship with the Company,
and supersedes and replaces any and all prior or contemporaneous agreements and
understandings whether written or oral between the Executive and the Company and
the Executive and SpeechWorks.

      10. Arbitration and Equitable Relief.

            (a) Except as provided in Section 10(d) below, Executive and the
Company agree that to the extent permitted by law, any dispute or controversy
arising out of, relating to, or in connection with this Agreement, or the
interpretation, validity, construction, performance, breach, or termination
thereof will be settled by arbitration to be held at a location within 30 miles
of the Company's principal executive offices in Massachusetts, in accordance
with the National Rules for the Resolution of Employment Disputes then in effect
of the American Arbitration Association (the "Rules"). The arbitrator may grant
injunctions or other relief in such dispute or controversy. The decision of the
arbitrator will be final, conclusive and binding on the parties to the
arbitration. Judgment may be entered on the arbitrator's decision in any court
having jurisdiction.

            (b) The arbitrator will apply Massachusetts law to the merits of any
dispute or claim, without reference to rules of conflict of law. Executive
hereby expressly consents to the personal jurisdiction of the state and federal
courts located in Massachusetts for any action or proceeding arising from or
relating to this Agreement and/or relating to any arbitration in which the
parties are participants.

            (c) The Company will pay the direct costs and expenses of the
arbitration. The Company and Executive each will separately pay its counsel fees
and expenses; provided, however, the Company shall reimburse Executive for his
reasonable costs (including without limitation attorneys' fees) incurred if
Executive succeeds on the merits with respect to a material breach of this
Agreement at any such arbitration, including enforcing any judgment entered on
an arbitrator's decision.

            (d) The Company may apply to any court of competent jurisdiction for
a temporary restraining order, preliminary injunction, or other interim or
conservatory relief, as necessary to enforce the provisions of the confidential
information and trade secrets agreement between Executive and the Company,
without breach of this arbitration agreement and without abridgement of the
powers of the arbitrator.

            (e) EMPLOYEE HAS READ AND UNDERSTANDS SECTION 10, WHICH DISCUSSES
ARBITRATION. EMPLOYEE UNDERSTANDS THAT BY SIGNING THIS AGREEMENT, EMPLOYEE
AGREES TO THE EXTENT PERMITTED BY LAW, TO SUBMIT ANY FUTURE CLAIMS ARISING OUT
OF, RELATING TO, OR IN CONNECTION WITH

                                                                             -7-
<PAGE>
THIS AGREEMENT, OR THE INTERPRETATION, VALIDITY, CONSTRUCTION, PERFORMANCE,
BREACH, OR TERMINATION THEREOF TO BINDING ARBITRATION, AND THAT THIS ARBITRATION
CLAUSE CONSTITUTES A WAIVER OF EMPLOYEE'S RIGHT TO A JURY TRIAL AND RELATES TO
THE RESOLUTION OF ALL DISPUTES RELATING TO ALL ASPECTS OF THE EMPLOYER/EMPLOYEE
RELATIONSHIP, INCLUDING BUT NOT LIMITED TO, THE FOLLOWING CLAIMS:

            (i) ANY AND ALL CLAIMS FOR WRONGFUL DISCHARGE OF EMPLOYMENT; BREACH
OF CONTRACT, BOTH EXPRESS AND IMPLIED; BREACH OF THE COVENANT OF GOOD FAITH AND
FAIR DEALING, BOTH EXPRESS AND IMPLIED; NEGLIGENT OR INTENTIONAL INFLICTION OF
EMOTIONAL DISTRESS; NEGLIGENT OR INTENTIONAL MISREPRESENTATION; NEGLIGENT OR
INTENTIONAL INTERFERENCE WITH CONTRACT OR PROSPECTIVE ECONOMIC ADVANTAGE; AND
DEFAMATION;

            (ii) ANY AND ALL CLAIMS FOR VIOLATION OF ANY FEDERAL STATE OR
MUNICIPAL STATUTE, INCLUDING, BUT NOT LIMITED TO, THE AMERICANS WITH
DISABILITIES ACT OF 1990, THE FAIR LABOR STANDARDS ACT, AND ANY LAW OF THE STATE
OF CALIFORNIA; AND

            (iii) ANY AND ALL CLAIMS ARISING OUT OF ANY OTHER LAWS AND
REGULATIONS RELATING TO EMPLOYMENT OR EMPLOYMENT DISCRIMINATION.

      11. No Oral Modification, Cancellation or Discharge. This Agreement may be
changed or terminated only in writing (signed by Executive and the Company).

      12. Withholding. The Company is authorized to withhold, or cause to be
withheld, from any payment or benefit under this Agreement the full amount of
any applicable withholding taxes.

      13. Governing Law. This Agreement will be governed by the laws of the
Commonwealth of Massachusetts (with the exception of its conflict of laws
provisions).

      14. Merger. At the same time as the execution of this Agreement, the
Company, Spiderman Acquisition Corp., a Delaware corporation and wholly-owned
subsidiary of Company ("Acquiring"), and SpeechWorks International, Inc.
("SpeechWorks"), have entered into an Agreement and Plan of Reorganization dated
as of the date hereof (the "Reorganization Agreement") pursuant to which
SpeechWorks will merge with and into Acquiring with the result that SpeechWorks
will be the surviving corporation and will become a wholly-owned subsidiary of
Company (the "Merger").

      15. Effective Date. The Closing Date (as defined in the Reorganization
Agreement) will be the "Effective Date" of this Agreement and this Agreement
will be null and void and have no effect unless the Merger contemplated by the
Reorganization Agreement is consummated.

      16. Acknowledgment. Executive acknowledges that he has had the opportunity
to discuss this matter with and obtain advice from his private attorney, has had
sufficient time to, and has carefully read and fully understands all the
provisions of this Agreement, and is knowingly and voluntarily entering into
this Agreement.

                                                                             -8-
<PAGE>
      17. Attorneys' Fees. Executive shall be reimbursed his reasonable
attorneys' fees incurred with respect to the negotiation of this Agreement.

                           {Signature Pages to Follow}

                                                                             -9-
<PAGE>
      IN WITNESS WHEREOF, the undersigned have executed this Agreement on the
respective dates set forth below:

      EXECUTIVE

      /s/ Stuart R. Patterson                       Date: As of  April 23, 2003
      -----------------------                                  ----------------

      Stuart R. Patterson

      COMPANY

      /s/ Paul A. Ricci                             Date: As of  April 23, 2003
      --------------------                                      ---------------
      Paul A. Ricci
      Chairman and Chief Executive Officer

                                      -10-

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