Document:

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                                                                     EXHIBIT 4.1

                                    EXHIBIT F

                          REGISTRATION RIGHTS AGREEMENT

          REGISTRATION RIGHTS AGREEMENT, dated as of _______ __, 2003, between
Cablevision Systems Corporation, a Delaware corporation (the "Company"), on the
one hand, and MGM Networks U.S. Inc., a Delaware corporation (the
"Stockholder"), on the other hand.

          WHEREAS, pursuant to the Note (the "Note"), dated as of June 27, 2003,
by the Company and issued to the Stockholder, the Company may issue shares (the
"Settlement Shares") of the Company's Cablevision NY Group Class A Common Stock,
par value $.01 per share (the "Common Stock") as payment of the principal amount
of the Note on the maturity date therefore;

          WHEREAS, pursuant to the Note, the Company may only issue the
Settlement Shares if such Settlement Shares are Registrable Securities hereunder
for which a Registration Statement (as defined herein) has been declared and
remains effective on the Final Maturity Date (as defined in the Note) and under
which such shares may be resold without restriction under the Securities Act (as
defined herein); and

          WHEREAS, the Stockholder desires to have the Settlement Shares be
subject to the rights described herein.

          NOW, THEREFORE, in consideration of the premises and the mutual
agreements set forth herein, the parties agree as follows:

          1.   Definitions.

          (a)  As used herein, the following terms shall have the following
     meanings:

          "Agreement" shall mean this Registration Rights Agreement, as amended,
     supplemented or otherwise modified from time to time.

          "Business Day" shall mean any day other than a Saturday, Sunday or
     other day that the New York Stock Exchange (or, if different, the principal
     exchange on which shares of the Common Stock are traded) is not open for
     trading.

          "Commission" shall mean the Securities and Exchange Commission.

          "Company" shall have the meaning set forth in the preamble and shall
     also include the Company's successors.

          "Exchange Act" shall mean the Securities Exchange Act of 1934, as
     amended from time to time.

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          "Prospectus" shall mean the prospectus included in the Registration
     Statement, including any preliminary prospectus, and any such prospectus as
     supplemented by any prospectus supplement with respect to the terms of the
     offering of any of the Registrable Securities, and by all other amendments
     and supplements to such prospectus, and in each case including all
     documents incorporated by reference therein.

          "register", "registered" and "registration" refer to a registration of
     Registrable Securities effected by preparing and filing a Registration
     Statement in compliance with the Securities Act and the declaration or
     ordering of the effectiveness of such Registration Statement.

          "Registrable Securities" shall mean the Settlement Shares. As to any
     particular Registrable Securities, such securities shall cease to be
     Registrable Securities when (x) a Registration Statement with respect to
     the sale of such securities shall have become effective under the
     Securities Act and such securities shall have been disposed of in
     accordance with such Registration Statement, (y) they shall have been
     distributed to the public pursuant to Rule 144 or Rule 145 (or any
     successor provision) under the Securities Act or (z) they shall have ceased
     to be outstanding.

          "Registration Expenses" shall mean all expenses incident to the
     performance of or compliance with this Agreement by any party, including,
     without limitation, all registration, filing and National Association of
     Securities Dealers, Inc. fees, all fees and expenses of complying with
     securities or blue sky laws, all word processing, duplicating and printing
     expenses, messenger and delivery expenses, the fees and disbursements of
     counsel for the Company and of its independent public accountants,
     including the expenses of any special audits or "comfort" letters required
     by or incident to such performance and compliance, premiums and other costs
     of policies of insurance obtained by the Company against liabilities
     arising out of the public offering of Registrable Securities being
     registered, all transfer taxes, if any, relating to Registrable Securities
     and any other registration expenses incident to the registration of the
     Registrable Securities issued to the Stockholder, including the fees and
     disbursements of one firm of outside counsel for the Stockholder; provided
     that Registration Expenses shall not include the fees and disbursements of
     underwriters, any underwriting discounts and commissions.

          "Registration Statement" shall mean the registration statement of the
     Company on Form S-3 (or, if the Company is not then eligible for Form S-3,
     such other form for which the Company then qualifies) that is filed by the
     Company with the Commission in accordance with Section 3 below and that
     permits a delayed or continuous offering pursuant to Rule 415 under the
     Securities Act. The term "Registration Statement" shall also include all
     exhibits and financial statements and schedules and documents incorporated
     by reference in such Registration Statement when it becomes effective under
     the Securities Act, and in the case of references to the Registration
     Statement as of a date subsequent to the effective date, as amended or
     supplemented as of such date.

          "Securities Act" shall mean the Securities Act of 1933, as amended
     from time to time.

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          (b)  Capitalized terms used herein but not otherwise defined herein
shall have the same meaning as in the Purchase Agreement. Terms defined in the
singular shall have a comparable meaning when used in the plural, and vice
versa. All matters of an accounting nature in connection with this Agreement and
the transactions contemplated hereby shall be determined in accordance with
generally accepted accounting principles as in effect from time to time. As used
herein, the neuter gender shall also denote the masculine and feminine, and the
masculine gender shall also denote the neuter and feminine, where the context so
permits. The words "hereof", "herein" and "hereunder", and words of similar
import, when used in this Agreement shall refer to this Agreement as a whole and
not to any particular provision of this Agreement, and section, subsection,
paragraph, schedule and exhibit references are to this Agreement unless
otherwise specified.

          2.   Registration Rights.

          (a)  Demand Registration for Underwritten Offering. The Stockholder
shall have the right upon written request, at any time after delivery of the
Settlement Shares, to request that the Company effect one shelf takedown from
the Registration Statement by means of a firm commitment underwritten public
offering for cash (an "Underwritten Offering") and the Company shall have the
right, at any time after delivery of the Settlement Shares, to cause the
completion of a shelf takedown from the Registration Statement by means of an
Underwritten Offering on behalf of the Stockholder.

          (b)  Piggy-Back Registration; Cutback Rights. The Company may include
in the Registration Statement filed pursuant hereto other securities for sale
for its own account or for the account of any other Person. Notwithstanding the
foregoing, if the Company or another Person exercises a right to have other
securities included on the Registration Statement included in the shelf takedown
demanded by the Stockholder pursuant to Section 2(a), if the managing or lead
underwriter or underwriters thereof shall determine in its or their reasonable
good faith judgment that it cannot sell, or that it would not be advisable to
sell, all the securities desired to be sold, then the number of securities that
the Company may have included, if any, shall be reduced first and, if such
reduction of the Company securities is insufficient, the number of securities
which the Stockholder and any other Persons may have included shall be reduced
pro rata in proportion to the total number of securities sought to be included
by each such Person, subject, in all cases, to the Company's contractual
obligations pursuant to the Registration Rights Agreements, each dated as of
January 27, 1986, as amended, between the Company and Cablevision Systems
Company, in the first case, and the Company and CSC Holdings Company, in the
second, until the managing or lead underwriter or underwriters shall believe
that the remaining securities can be sold and it would not be inadvisable to
sell such number of securities.

          If, as a result of the cutback rights set forth in this Section 2(b),
less than all Registrable Securities sought to be registered by the Stockholder
would be included in a shelf takedown under Section 2(a), the Stockholder's
demand for a shelf takedown will not be deemed to have been made.

          (c)  Expenses. The Registration Expenses in connection with the
Registration Statement and any shelf takedown for the Stockholder thereunder
requested under this Section 2

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shall be borne by the Company, except that another holder piggy-backing on the
Stockholder's Registration Statement pursuant to Section 2(b) shall pay (or
shall require the Company to pay) its pro rata share of the Registration
Expenses.

          (d)   Selection of Underwriters. One co-lead managing underwriter for
any Underwritten Offering pursuant to Section 2(a) shall be selected by the
Company and, provided that the Company is not including securities for sale for
its own account in such Underwritten Offering, shall be reasonably acceptable to
the Stockholder, and the other co-lead managing underwriter for such
Underwritten Offering shall be selected by the Stockholder and shall be
reasonably acceptable to the Company. The co-lead managing underwriter selected
by the Company shall establish the pricing of the Common Stock in the
Underwritten Offering.

          3.    Registration Procedures. If the Company is delivering Settlement
Shares to the Stockholder under the Note, the Company will:

          (i)   prepare and file with the Commission the requisite Registration
     Statement to effect the registration thereof and cause such Registration
     Statement to become effective prior to the Final Maturity Date, provided
     that before filing such Registration Statement or any amendments thereto,
     the Company will furnish to the counsel selected by the Stockholder copies
     of all such documents proposed to be filed, and afford such counsel a
     reasonable period of time to review such filing before any such filing is
     made, and the Company will comply with any reasonable and timely request
     made by such counsel to make changes in any information contained in such
     documents relating to the Stockholder;

          (ii)  prepare and file with the Commission such amendments and
     supplements to such Registration Statement and the Prospectus used in
     connection therewith as may be necessary to maintain the effectiveness of
     such registration and to comply with the provisions of the Securities Act
     with respect to the disposition of all securities covered by such
     Registration Statement until the earlier of (A) such time as all of such
     securities have been disposed of and (B) the date which is one year after
     the date of delivery of the Settlement Shares to the Stockholder;

          (iii) furnish to the Stockholder such number of conformed copies of
     such Registration Statement and of each such amendment and supplement
     thereto (in each case including all exhibits), such number of copies of the
     Prospectus contained in such Registration Statement and any supplements
     thereto and any other Prospectus filed under Rule 424 under the Securities
     Act, in conformity with the requirements of the Securities Act, and such
     other documents, including documents incorporated by reference, as the
     Stockholder may reasonably request;

          (iv)  use reasonable best efforts to register or qualify all
     Registrable Securities registered pursuant to such Registration Statement
     under such other securities or blue sky laws of such jurisdictions as the
     Stockholder shall reasonably request, to keep such registration or
     qualification in effect for so long as such Registration Statement remains
     in effect, and take any other action which may be reasonably necessary or
     advisable to enable the Stockholder to consummate the disposition in such
     jurisdictions of the

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     securities owned by the Stockholder, except that the Company shall not for
     any such purpose be required to qualify generally to do business as a
     foreign corporation in any jurisdiction wherein it would not but for the
     requirements of this clause (iv) be obligated to be so qualified, to be
     subject to taxation or to consent to general service of process in any such
     jurisdiction;

          (v)    use reasonable best efforts to cause all Registrable Securities
     covered by such Registration Statement to be registered with or approved by
     such other governmental agencies or authorities as may be necessary to
     enable the Stockholder to consummate the disposition of such Registrable
     Securities;

          (vi)   in connection with an Underwritten Offering pursuant to Section
     2(a), furnish to the Stockholder a signed counterpart, addressed to the
     Stockholder (and the underwriters), of (x) an opinion of counsel for the
     Company, dated the date of the closing under the underwriting agreement,
     and (y) a "comfort letter" dated the effective date of such Registration
     Statement (and a supplement to such "comfort letter" dated the date of the
     closing under the underwriting agreement), signed by the independent public
     accountants who have certified the Company's financial statements included
     in such Registration Statement, covering substantially the same matters
     with respect to such Registration Statement (and the Prospectus included
     therein) and, in the case of the accountants' letter, with respect to
     events subsequent to the date of such financial statements, as are
     customarily covered in opinions of issuer's counsel and in accountants'
     letters delivered to the underwriters in underwritten public offerings of
     securities and, in the case of the accountants' letter, such other
     financial matters, as the Stockholder (or the underwriters, if any) may
     reasonably request;

          (vii)  promptly notify the Stockholder at any time when the Company
     becomes aware that a Prospectus relating to Registrable Securities is
     required to be delivered under the Securities Act, of the happening of any
     event as a result of which the Prospectus included in such Registration
     Statement, as then in effect, includes an untrue statement of a material
     fact or omits to state any material fact required to be stated therein or
     necessary to make the statements therein not misleading in the light of the
     circumstances under which they were made, and at the request of the
     Stockholder (and subject to Section 4(b)(ii)) promptly prepare and furnish
     to the Stockholder a reasonable number of copies of a supplement to or an
     amendment of such Prospectus as may be necessary so that, as thereafter
     delivered to the purchasers of such securities, such Prospectus shall not
     include an untrue statement of a material fact or omit to state a material
     fact required to be stated therein or necessary to make the statements
     therein not misleading in the light of the circumstances under which they
     were made;

          (viii) otherwise use reasonable best efforts to comply with the
     Securities Act and the Exchange Act and with all applicable rules and
     regulations of the Commission, and make available to its security holders,
     as soon as reasonably practicable, an earnings statement covering the
     period of at least twelve months, but not more than eighteen months,
     beginning with the first full calendar month after the effective date of
     such Registration Statement, which earnings statement shall satisfy the
     provisions of Section 11(a) of the Securities Act, and not file any
     amendment or supplement to such

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     Registration Statement or Prospectus to which the Stockholder shall have
     reasonably objected on the grounds that such amendment or supplement does
     not comply in all material respects with the requirements of the Securities
     Act;

          (ix)   provide a transfer agent and registrar for all Registrable
     Securities covered by such Registration Statement not later than the
     effective date of such Registration Statement;

          (x)    use reasonable best efforts to list all Common Stock covered by
     such Registration Statement on any securities exchange on which any shares
     of the Common Stock are then listed; and

          (xi)   upon the reasonable request of the Stockholder, otherwise use
     reasonable best efforts to effect the registration of Registrable
     Securities under the Securities Act as provided in Section 2.

          In the case of any Underwritten Offering, the Company shall
participate in customary "roadshow" presentations and customary analysts'
meetings as reasonably requested by the co-lead managing underwriters.

          If requested by the underwriters for any Underwritten Offering, the
Company will enter into its customary underwriting agreement with such
underwriters for such offering, to contain such representations and warranties
by the Company and such other terms as are customarily contained in agreements
of this type, including, without limitation, indemnities to the effect and to
the extent provided in Section 6. The Stockholder shall be a party to such
underwriting agreement and may, at its option, require that any or all of the
representations and warranties by, and the other agreements on the part of, the
Company to and for the benefit of such underwriters shall also be made to and
for the benefit of the Stockholder and that any or all of the conditions
precedent to the obligations of such underwriters under such underwriting
agreement be conditions precedent to the obligations of the Stockholder as well.

          4.     Stockholder's Obligations. (a) Furnishing Information. The
Stockholder shall furnish to the Company such information regarding itself and
the distribution proposed by it as the Company may reasonably request,
including, without limitation, providing the Company with questionnaires as are
customary for similar transactions, and which the Company may reasonably request
or as may be required by applicable securities laws and regulations, and as
shall be required in connection with any registration, qualification or
compliance referred to in this Agreement. The Stockholder agrees to notify the
Company as promptly as practicable of any inaccuracy or change in information
previously furnished to the Company or of the happening of any event, in either
case as a result of which any Prospectus relating to such registration contains
an untrue statement of a material fact regarding the Stockholder or the
distribution of such Registrable Securities or omits to state any material fact
regarding the Stockholder or the distribution of such Registrable Securities
required to be stated therein or necessary to make the statements therein, in
the light of the circumstances under which they were made, not misleading, and
to furnish to the Company promptly any additional information required to
correct and update any previously furnished information or required such that
such Prospectus shall not contain, with respect to the Stockholder or the
distribution of such

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Registrable Securities, an untrue statement of a material fact or omit to state
a material fact required to be stated therein or necessary to make the
statements therein, in the light of the circumstances under which they were
made, not misleading.

          (b)   Holdback Agreement; Postponement. (i) The Stockholder agrees by
acquisition of the Registrable Securities not to engage in transactions
involving the Company's equity securities, including by commencing any public
offering of the Company's equity securities, by entering into transactions that
result in another party selling the Company's equity securities or by causing a
demand registration, during the seven days prior to and the 90 days after any
Registration Statement relating to the Company's equity securities (other than
under Form S-4 or Form S-8) (either for its own account or for the benefit of
the holders of any securities of the Company) has become effective; provided,
that the Company shall give the Stockholder notice as soon as reasonably
practicable of the date upon which a Registration Statement relating to the
Company's equity securities is expected to become effective and, in any event
the Stockholder's holdback restriction for the seven day period prior to
effectiveness shall not commence until the seventh calendar day after such
notice is given.

          (ii)  The Company may, by written notice to the Stockholder, postpone
any registration which is requested pursuant to Section 2 or delivery of a
Prospectus pursuant to Section 3(vii) if the Company's outside counsel has
advised it in writing under applicable securities laws that the use of such
Registration Statement would require disclosure of a material corporate
development not otherwise required to be disclosed that the Company has a valid
business purpose for not disclosing. In the event the Company makes any such
election, the Stockholder agrees to keep confidential the fact of such election
and any information provided by the Company in connection therewith.

          (iii) Notwithstanding the black-out rights and the lock-up periods set
forth above in Sections 4(b)(i) and 4(b)(ii), in the calendar year after its
receipt of the Settlement Shares, the Stockholder shall not be subject to
black-out rights or lock-up periods for more than ninety (90) days in the
aggregate.

          5.    Registration Statement. In connection with the preparation and
filing of the Registration Statement under the Securities Act, the Company will
give the Stockholder, its underwriters, if any, and their respective counsel,
the opportunity to participate in the preparation of such Registration
Statement, each Prospectus included therein or filed with the Commission, and
each amendment thereof or supplement thereto. Such opportunity to participate
shall include reasonable access for purposes of due diligence, subject to the
execution and delivery of appropriate confidentiality agreements.

          6.    Indemnification. (a) Indemnification by the Company. In the
event of any registration of any Registrable Securities of the Company under the
Securities Act, the Company will, and hereby does, indemnify and hold harmless
the Stockholder, each other Person who participates as an underwriter in the
offering or sale of such Registrable Securities and each other Person who
controls any such underwriter within the meaning of the Securities Act, against
any losses, claims, damages or liabilities, joint or several, to which the
Stockholder or any such underwriter or controlling person may become subject
under the Securities Act or otherwise, insofar as such losses, claims, damages
or liabilities (or actions or proceedings, whether

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commenced or threatened, in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained in
the Registration Statement under which such Registrable Securities were
registered under the Securities Act, any Prospectus contained therein, or any
amendment or supplement thereto, or any omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the
statements therein not misleading, and the Company will reimburse the
Stockholder and each such underwriter and controlling person for any legal or
any other expenses reasonably incurred by them in connection with investigating
or defending any such loss, claim, liability, action or proceedings; provided
that the Company shall not be liable in any such case to the extent that any
such loss, claim, damage, liability (or action or proceeding in respect thereof)
or expense arises out of or is based upon (i) an untrue statement or alleged
untrue statement or omission or alleged omission made in such Registration
Statement, any such Prospectus or amendment or supplement thereto in reliance
upon and in conformity with written information furnished to the Company by the
Stockholder for use in the preparation thereof, (ii) the use of any Prospectus
after such time as the obligation of the Company to keep the same effective and
current has expired, or (iii) the use of any Prospectus after such time as the
Company has advised the Stockholder that the filing of a post-effective
amendment or supplement thereto is required, except such Prospectus as so
amended or supplemented, and provided further that the Company shall not be
liable to any Person who participates as an underwriter in the offering or sale
of Registrable Securities or any other Person, if any, who controls such
underwriter within the meaning of the Securities Act in any such case to the
extent that any such loss, claim, damage, liability (or action or proceeding in
respect thereof) or expense arises out of the matters described in (i), (ii) or
(iii) above or such Person's failure to send or give a copy of the final
Prospectus or supplement to the Persons asserting an untrue statement or alleged
untrue statement or omission or alleged omission at or prior to the written
confirmation of the sale of Registrable Securities to such Person if such
statement or omission was corrected in such final Prospectus or supplement. Such
indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of the Stockholder or any such underwriter or controlling
person and shall survive the transfer of such securities by the Stockholder. The
Company's indemnity hereunder shall relate only to Settlement Shares, and the
Company shall otherwise have no indemnity obligations with respect to other
securities issued by the Stockholder or the registration thereof.

          (b)   Indemnification by the Stockholder. The Stockholder will, and
hereby does, indemnify and hold harmless (in the same manner and to the same
extent as set forth in subdivision (a) of this Section 6) the Company, each
director and officer of the Company, and each other Person, if any, who controls
the Company, within the meaning of the Securities Act, with respect to any
untrue statement or alleged untrue statement of a material fact in or omission
or alleged omission to state a material fact from such Registration Statement,
any Prospectus contained therein, or any amendment or supplement thereto, if
such untrue statement or alleged untrue statement or omission or alleged
omission was made in reliance upon and in conformity with written information
furnished to the Company by the Stockholder for use in the preparation of such
Registration Statement, Prospectus, or amendment or supplement thereto;
provided, however, that the Stockholder shall not be liable to the extent that
the losses, liabilities or expenses arise out of or are based upon (i) the use
by the Company of any Prospectus after such time as the obligation of the
Company to keep the same effective and current has expired or (ii) the use by
the Company of any Prospectus after such time as the Stockholder has advised the
Company that the filing of a post-effective amendment or supplement thereto is
required with

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respect to any information contained in such Prospectus concerning the
Stockholder, except such Prospectus as so amended or supplemented. Such
indemnity shall remain in full force and effect regardless of any investigation
made by or on behalf of the Company, or any such director, officer or
controlling person and shall survive the transfer of such securities by the
Stockholder.

          (c)   Notices of Claims, etc. Promptly after receipt by an indemnified
party of a notice of the commencement of any action or proceeding involving a
claim referred to in the preceding subdivisions of this Section 6, such
indemnified party will, if a claim in respect thereof is to be made against an
indemnifying party, give written notice to the latter of the commencement of
such action; provided that the failure of any indemnified party to give notice
as provided herein shall not relieve the indemnifying party of its obligations
under the preceding subdivisions of this Section 6, except to the extent that
the indemnifying party is actually prejudiced by such failure to give notice. In
case any such action is brought against an indemnified party, unless in such
indemnified party's reasonable judgment a conflict of interest between such
indemnified and indemnifying parties may exist in respect of such claim, the
indemnifying party shall be entitled to participate in and to assume the defense
thereof, jointly with any other indemnifying party similarly notified to the
extent that it may wish, with counsel reasonably satisfactory to such
indemnified party, and after notice from the indemnifying party to such
indemnified party of its election so to assume the defense thereof, the
indemnifying party shall not be liable to the indemnified party for any legal or
other expenses subsequently incurred by the latter in connection with the
defense thereof other than reasonable costs of investigation.

          (d)   Contribution. If for any reason the foregoing indemnity is
unavailable, or is insufficient to hold harmless an indemnified party, then the
indemnifying party shall contribute to the amount paid or payable by the
indemnified party as a result of the expense, loss, damage or liability, (i) in
such proportion as is appropriate to reflect the relative fault of the
indemnifying party on the one hand and the indemnified party on the other
(determined by reference to, among other things, whether the untrue or alleged
untrue statement of a material fact or omission relates to information supplied
by the indemnifying party or the indemnified party and the parties' relative
intent, knowledge, access to information and opportunity to correct or prevent
such untrue statement or omission) or (ii) if the allocation provided by clause
(i) above is not permitted by applicable law or provides a lesser sum to the
indemnified party than the amount hereinafter calculated, in the proportion as
is appropriate to reflect not only the relative fault of the indemnifying party
and the indemnified party, but also the relative benefits received by the
indemnifying party on the one hand and the indemnified party on the other, as
well as any other relevant equitable considerations. No indemnified party guilty
of fraudulent misrepresentation (within the meaning of Section 11(f) of the
Securities Act) shall be entitled to contribution from any indemnifying party
who was not guilty of such fraudulent misrepresentation.

          7.    Covenants Relating to Rule 144/145. The Company will prepare and
file in a timely manner, information, documents and reports in compliance with
the Exchange Act so as to comply with the requirements of such Act and the rules
and regulations thereunder and will, at its expense, forthwith upon the request
of the Stockholder, deliver to the Stockholder a certificate, signed by the
Company's principal financial officer, stating (a) the Company's name, address
and telephone number (including area code), (b) the Company's Internal Revenue
Service identification number, (c) the Company's Commission file number, (d) the
number of shares of Common Stock outstanding as shown by the most recent report
or statement published

                                       -9-

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by the Company, and (e) whether the Company has filed the reports required to be
filed under the Exchange Act for a period of at least 90 days prior to the date
of such certificate and in addition has filed the most recent annual report
required to be filed thereunder. If at any time the Company is not required to
file reports in compliance with either Section 13 or Section 15(d) of the
Exchange Act, the Company at its expense will forthwith, upon the written
request of the Stockholder, make available adequate current public information
with respect to the Company within the meaning of paragraph (c)(2) of Rule 144
of the General Rules and Regulations promulgated under the Securities Act.

          8. Notices, etc. All notices, requests, demands or other
communications required by or otherwise with respect to this Agreement shall be
in writing and shall be deemed to have been duly given to any party when
delivered personally (by courier service or otherwise), when delivered by
telecopy if receipt is confirmed by return telecopy, or five days after being
mailed by registered or certified mail, return receipt requested, in each case
to the applicable addresses set forth below:

          If to the Company;

                Cablevision Systems Corporation
                1111 Stewart Avenue
                Bethpage, New York 11714
                Telephone: (516) 803-2300
                Facsimile: (516) 803-2577
                Attention: General Counsel

          with a copy to:

                Sullivan & Cromwell LLP
                125 Broad Street
                New York, New York 10004
                Telephone: (212) 558-4000
                Facsimile: (212) 558-3588
                Attention: Robert W. Downes, Esq.

          If to the Stockholder:

                Metro-Goldwyn-Mayer Inc.
                2500 Broadway Street
                Santa Monica, California 90404
                Telephone: (310) 449-3000
                Facsimile: (310) 586-8193
                Attention: General Counsel

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              with a copy to:

              Kirkland & Ellis
              Citigroup Center
              153 East 53rd Street
              New York, New York 10022
              Telephone: (212) 446-4800
              Facsimile: (212) 446-4900
              Attention: Thomas W. Christopher

or to such other address as such party shall have designated by notice so given
to each other party.

          9.  Amendments, Waivers, etc. This Agreement may not be amended,
changed, supplemented, waived or otherwise modified or terminated except by an
instrument in writing signed by the party against whom enforcement is sought.
The failure of any party to exercise any right, power or remedy provided under
this Agreement or otherwise available in respect hereof at law or in equity, or
to insist upon compliance by any other party with its obligations hereunder, and
any custom or practice of the parties at variance with the terms hereof, shall
not constitute a waiver by such party of its right to exercise any such or other
right, power or remedy or to demand such compliance.

          10. Entire Agreement. This Agreement and the Purchase Agreement embody
the entire agreement and understanding between the parties relating to the
subject matter hereof and supersede all prior agreements and understandings
relating to such subject matter.

          11. Severability. If any term of this Agreement or the application
thereof to any party or circumstance shall be held invalid or unenforceable to
any extent, the remainder of this Agreement and the application of such term to
the other parties or circumstances shall not be affected thereby and shall be
enforced to the greatest extent permitted by applicable law.

          12. Successors and Assigns. This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their successors and assigns;
provided that without the prior written consent of the Company, the registration
rights granted to the Stockholder pursuant to this Agreement may be transferred
in whole or in part, except to a subsidiary of Metro-Goldwyn-Mayer Inc. to which
the Note has been transferred.

          13. Governing Law. This Agreement SHALL BE GOVERNED BY AND CONSTRUED
IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. All actions and
proceedings arising out of or relating to this Agreement shall be heard and
determined exclusively in any New York state or federal court sitting in the
Borough of Manhattan of The City of New York. The parties hereto hereby (i)
submit to the exclusive jurisdiction of any state or federal court sitting in
the Borough of Manhattan of The City of New York for the purpose of any action
or proceeding arising out of or relating to this Agreement brought by any party
hereto, and (ii) irrevocably waive, and agree not to assert by way of motion,
defense, or otherwise, in any such action or proceeding, any claim that it is
not subject personally to the jurisdiction of the above-named courts, that its
property is exempt or

                                      -11-

<PAGE>

immune from attachment or execution, that the action or proceeding is brought in
an inconvenient forum, that the venue of the action or proceeding is improper,
or that this Agreement or the transactions contemplated hereby may not be
enforced in or by any of the above-named courts. No party hereby waives any
right to remove or seek to remove any action brought in any state court sitting
in the Borough of Manhattan of The City of New York to any federal court sitting
in the Borough of Manhattan of The City of New York. Each of the parties hereto
hereby waives to the fullest extent permitted by applicable law any right it may
have to a trial by jury with respect to any litigation directly or indirectly
arising out of, under or in connection with this Agreement or the transactions
contemplated hereby. Each of the parties hereto (i) certifies that no
representative, agent or attorney of any other party has represented, expressly
or otherwise, that such other party would not, in the event of litigation, seek
to enforce that foregoing waiver and (ii) acknowledges that it and the other
parties hereto have been induced to enter into this Agreement and the
transactions contemplated hereby by, among other things, the mutual waivers and
certifications in this Section 13.

          14. Name, Captions. The name assigned this Agreement and the section
captions used herein are for convenience of reference only and shall not affect
the interpretation or construction hereof.

          15. Counterparts. This Agreement may be executed in any number of
counterparts, each of which shall be deemed to be an original, but all of which
together shall constitute one instrument. Each counterpart may consist of a
number of copies each signed by less than all, but together signed by all, the
parties hereto.

                                      -12-

<PAGE>

     IN WITNESS WHEREOF, the parties have duly executed this Agreement as of the
date first above written.

                                         CABLEVISION SYSTEMS CORPORATION

                                         By: ____________________________
                                             Name:
                                             Title:

                                         MGM NETWORKS U.S. INC.

                                         By: ____________________________
                                             Name:
                                             Title:

                                      -13-<PAGE>
                                                                   EXHIBIT 10.31

                              EMPLOYMENT AGREEMENT

         Except as otherwise specifically provided herein, this Employment
Agreement (this "Agreement") by and between Engle Homes, Inc., a Florida
corporation (the "Company"), and Mark Upton (the "Executive") is made effective
for all purposes immediately prior to the consummation of the Offer (as defined
in the Agreement and Plan of Merger dated as of October 12, 2000 among Technical
Olympic USA, Inc., a Delaware corporation (the "Parent"), Helios Acquisition
Corp., a Florida corporation, and Engle Homes, Inc., a Florida corporation (the
"Merger Agreement") (the "Effective Time").

                                    RECITALS:

         The Company, its divisions, subsidiaries, and other affiliated entities
are primarily engaged in the business of developing land for, and the
construction of, detached, single family residences (the "Business"). The
Company and the Executive previously entered into a Change in Control Severance
Agreement dated May 15, 2000 (the "Severance Agreement"), the intent and purpose
of which was to specify the terms and conditions of the Executive's employment
with the Company, and the Company and the Executive now desire to cancel and
terminate the Severance Agreement and to enter into this Agreement. all
effective as of the Effective Time.

                                    AGREEMENT

         1.       Employment Period. The Company hereby agrees to continue to
employ the Executive, and the Executive hereby agrees to remain in the employ of
the Company, for the period commencing on the Effective Time and ending on
December 31, 2003, unless terminated earlier in accordance with the provisions
of Section 3 hereof. However, the Company and the Executive may extend the term
of this Agreement by execution of a written amendment hereto, setting forth the
terms of such extension. If the parties fail to execute such written amendment,
but the employment relationship continues after December 31, 2003, the term of
this Agreement automatically shall continue during such period of continued
employment, which shall be on a month-to-month basis. Notwithstanding the
foregoing, if a Change of Control occurs prior to the termination of this
Agreement pursuant to Section 3, the term shall not end prior to the second
anniversary of such Change of Control, unless terminated earlier in accordance
with the provisions of Section 3 herein. The term of the Executive's employment
under this Agreement is sometimes referred to as the "Employment Period".

        2.       Terms of Employment

                (a)      Position and Duties.

                           (i)      During the Employment Period, (1) the
         Executive shall serve as the President-Engle Homes/Arizona, Inc. for
         the Company, (2) the Executive's status, and reporting requirements,
         authority, duties and responsibilities shall be at least commensurate
         in all material respects with the most significant of those held.
         exercised and assigned at any time during the 180 day period
         immediately preceding the Effective Time, and (3) the Executive's
         services shall be performed at the location where the

<PAGE>

         Executive was employed immediately preceding the Effective Time or any
         office or location less than sixty (60) miles from such location.

                           (ii)     During the Employment Period, and excluding
         any periods of vacation and sick leave to which the Executive is
         entitled, the Executive agrees to devote full attention and time during
         normal business hours to the business and affairs of the Company and,
         to the extent necessary to discharge the responsibilities assigned to
         the Executive hereunder, to perform faithfully such responsibilities in
         a manner consistent with prior performance. During the Employment
         Period it shall not be a violation of this Agreement for the Executive
         to (1) serve on corporate, civic or charitable boards or committees,
         (2) deliver lectures, fulfill speaking engagements or teach at
         educational institutions, and (3) manage personal investments
         (including without limitation land banking for the Company and others),
         so long as such activities do not significantly interfere with the
         performance of the Executive's responsibilities as an Executive of the
         Company in accordance with this Agreement. It is expressly understood
         and agreed that to the extent that any such activities have been
         conducted by the Executive prior to the Effective Time, the continued
         conduct of such activities (or the conduct of activities similar in
         nature and scope thereto) subsequent to the Effective Time shall not
         thereafter be deemed to interfere with the performance of the
         Executive's responsibilities to the Company. The Company also may, from
         time to time, assign additional or other duties to the Executive in
         conjunction with the restructuring of the Parent and its subsidiaries,
         which additional or other duties shall be reasonably consistent with
         the Executive's experience and position with the Company; provided,
         however, that no such assignment shall be made without the Executive's
         prior written consent. If the Executive is appointed or elected an
         officer or director of any of the Company's affiliates, and the
         Executive consents in writing to such appointment, the Executive will
         fulfill his duties as such officer or director without additional
         compensation. Upon his termination of employment with the Company, the
         Executive automatically shall cease to be an employee, officer or
         director of any affiliate of the Company, unless the board of directors
         of the Company provides otherwise.

                (b)      Compensation.

                           (i)      Base Salary. During the Employment Period,
         the Executive will be paid an annual salary of $225,000 ("Base
         Salary"), which will be payable in equal periodic installments
         according to the Company's customary payroll practices for its
         executives. During the Employment Period the Base Salary shall be
         reviewed at least annually and shall be increased at any time and from
         time to time as shall be substantially consistent with increases in the
         base salary awarded in the ordinary course of business to other key
         executives of the Company and its subsidiaries. Any increase in Base
         Salary shall not serve to limit or reduce any other obligations of the
         Executive under this Agreement. Base Salary shall not be reduced after
         any such increase.

                           (ii)     Quarterly Bonus. In addition to Base Salary,
         the Executive shall be awarded, for each fiscal quarter of the Company
         during the Employment Period, a quarterly cash bonus (the "Quarterly
         Bonus") determined in accordance with the formula attached as Exhibit
         A hereto and made a part hereof, payable within 15 days of the end of
         each fiscal quarter; provided, however, that in no event shall the
         aggregate Quarterly Bonuses payable during the Employment Period be
         less than the highest bonus payable

                                       2
<PAGE>

         to the Executive from the Company and its subsidiaries in respect of
         any of the three fiscal years immediately preceding the fiscal year in
         which the Effective Time occurs.

                           (iii)    Incentive, Savings and Retirement Plans. In
         addition to Base Salary and Quarterly Bonus payable as hereinabove
         provided, the Executive shall be entitled to participate during the
         Employment Period in all incentive, savings and retirement plans,
         practices, policies and programs applicable to other executives of the
         Company and its affiliates, in each case comparable to those in effect
         at the Effective Time or as subsequently amended. Such plans,
         practices, policies and programs, in the aggregate, shall provide the
         Executive with compensation. benefits and reward opportunities that in
         the aggregate are substantially the same as, and equivalent in value
         to, the most favorable of such compensation, benefits and reward
         opportunities provided by the Company for the Executive under such
         plans, practices, policies and programs as in effect at any time during
         the 180 day period immediately preceding the Effective Time or, if more
         favorable to the Executive, as provided at any time thereafter with
         respect to other executives of the Company and its subsidiaries.

                           (iv)     Welfare Benefit Plans. During the Employment
         Period, the Executive and/or the Executive's family, as the case may
         be, shall be eligible for participation in and shall receive all
         benefits under welfare benefit plans. practices, policies and programs
         provided by the Company and its subsidiaries (including, without
         limitation, medical, prescription, dental, disability, salary
         continuance, life, group life, accidental death and travel accident
         insurance plans and programs), that in the aggregate are substantially
         the same as, and equivalent in value to the most favorable of such
         plans, practices, policies and programs in effect at any time during
         the 180-day period immediately preceding the Effective Time or, if more
         favorable to the Executive and/or the Executive's family as in effect
         at any time thereafter with respect to other executives of the Company
         and its subsidiaries.

                           (v)      Expenses. During the Employment Period, the
         Executive shall be entitled to receive prompt reimbursement for all
         reasonable expenses incurred by the Executive in accordance with the
         most favorable policies, practices and procedures of the Company and
         its subsidiaries in effect at any time during the 180 day period
         immediately preceding the Effective Time or, if more favorable to the
         Executive, as in effect at any time thereafter with respect to other
         executives of the Company and its subsidiaries.

                           (vi)     Fringe Benefits. During the Employment
         Period, the Executive shall be entitled to fringe benefits, in
         accordance with the plans, practices, programs and policies of the
         Company and its subsidiaries that, in the aggregate, are substantially
         the same as those in effect at any time during the 180-day period
         immediately preceding the Effective Time or, if more favorable to the
         Executive, as in effect at any time thereafter with respect to other
         executives of the Company and its subsidiaries.

                           (vii)    Office and Support Staff. During the
         Employment Period, the Executive shall be entitled to an office or
         offices of a size and with furnishings and other appointments, and to
         secretarial and other assistance, at least equal to the most favorable

                                       3
<PAGE>

         of the foregoing provided to the Executive by the Company and its
         subsidiaries at any time during the 180 day period immediately
         preceding the Effective Time or, if more favorable to the Executive,
         as provided at any time thereafter with respect to other executives of
         the Company and its subsidiaries.

                           (viii)   Vacation. During the Employment Period, the
         Executive shall be entitled to paid vacation in accordance with the
         most favorable plans, policies, programs and practices of the Company
         and its subsidiaries as in effect at any time during the 180-day period
         immediately preceding the Effective Time or, if more favorable to the
         Executive, as in effect at any time thereafter with respect to other
         executives of the Company and its subsidiaries.

        3.       Termination

                  (a)      Death or Disability. This Agreement shall terminate
automatically upon the Executive's death. If the Company determines in good
faith that the Disability of the Executive has occurred (pursuant to the
definition of "Disability" set forth below), it may give to the Executive
written notice of its intention to terminate the Executive's employment. In such
event, the Executive's employment with the Company shall terminate effective on
the 30th day after receipt of such notice by the Executive (the "Disability
Effective Date"), provided that, within the 30 days after such receipt, the
Executive shall not have returned to full-time performance of the Executive's
duties. For purposes of this Agreement, "Disability" means a mental or physical
incapacity, illness or disability which renders the Executive unable to perform
his duties and responsibilities for the Company and which, at least 26 weeks
after its commencement, is determined to be total and permanent by a physician
selected by the Company or its insurers and acceptable to the Executive or the
Executive's legal representative (such agreement as to acceptability not to be
withheld unreasonably).

                  (b)      The Company may terminate the Executive's employment
for "Cause." For purposes of this Agreement, "Cause" means (i) an act or acts of
fraud, embezzlement or misappropriation of funds, taken by the Executive and
intended to result in substantial personal enrichment of the Executive at the
expense of the Company, (ii) repeated violations by the Executive of the
Executive's obligations under Section 2(a) of this Agreement which are
demonstrably willful and deliberate on the Executive's part and which are nor
remedied in a reasonable period of time after receipt of written notice from the
Company, or (iii) the conviction of the Executive of a felony.

                  (c)      Good Reason. The Executive's employment may be
terminated by the Executive for "Good Reason". For purposes of this Agreement,
"Good Reason" means:

                           (i)      the assignment to the Executive of any
         duties inconsistent in any respect with the Executive's position
         (including status, offices, titles and reporting requirements),
         authority, duties or responsibilities as contemplated by Section 2(a)
         of this Agreement, or any other action by the Company which results in
         a diminution in such position, authority, duties or responsibilities,
         excluding for this purpose an isolated. insubstantial and inadvertent
         action not taken in bad faith and which is remedied by the Company
         promptly after receipt of notice thereof given by the Executive;

                                       4
<PAGE>

                           (ii)     any failure by the Company to comply with
         any of the provisions of Section 2(b) of this Agreement, other than an
         isolated, insubstantial and inadvertent failure not occurring in bad
         faith and which is remedied by the Company promptly after receipt of
         notice thereof given by the Executive;

                           (iii)    the Company's requiring the Executive to be
         based at any office or location other than that described in Section
         2(a)(i)(3) hereof, except for travel reasonably required in the
         performance of the Executive's responsibilities;

                           (iv)     any purported termination by the Company of
         the Executive's employment otherwise than as expressly permitted by
         this Agreement; or

                           (v)      any failure by the Company to comply with
         and satisfy Section 9(h) of this Agreement.

                  (d)      Notice of Termination. Any termination by the Company
for Cause or by the Executive for Good Reason shall be communicated by Notice of
Termination to the other party hereto given in accordance with Section 5(c) of
this Agreement. For purposes of this Agreement, a "Notice of Termination" means
a written notice which (i) indicates the specific termination provision in this
Agreement relied upon, (ii) sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive's
employment under the provision so indicated, and (iii) if the Date of
Termination (as defined below) is other than the date of receipt of such notice,
specifies the termination date (which date shall be not more than fifteen (15)
days after the giving of such notice). The failure by the Executive to set forth
in the Notice of Termination any fact or circumstance which contributes to a
showing of Good Reason shall not waive any right of the Executive hereunder or
preclude the Executive from asserting such fact or circumstances in enforcing
his rights hereunder.

                  (e)      Date of Termination. "Date of Termination" means the
date of receipt of the Notice of Termination or any later date specified
therein, as the case may be; provided, however, that (i) if the Executive's
employment is terminated by the Company other than for Cause or Disability, the
Date of Termination shall be the date on which the Company notifies the
Executive of such termination, and (ii) if the Executive's employment is
terminated by reason of death or Disability, the Date of Termination shall be
the date of death of the Executive or the Disability Effective Date, as the case
may be.

        4.       Obligations of the Company upon Termination.

                  (a)      Death. If the Executive's employment is terminated by
reason of the Executive's death, this Agreement shall terminate without further
obligations to the Executive's legal representatives under this Agreement, other
than those obligations accrued or earned and vested (if applicable) by the
Executive as of the Date of Termination, including, for this purpose (i) the
Executive's full Base Salary through the Date of Termination at the rate in
effect on the the Date or Termination or, if higher, at the highest rate in
effect at any time from the 180-day period preceding the Effective Time through
the Date of Termination (the "Highest Base Salary"), (ii) the earned but unpaid
Quarterly Bonuses for any fiscal quarter ending on or before the Date of
Termination, (iii) the product of the sum of Quarterly Bonuses payable to the

                                       5
<PAGE>

Executive for the last four fiscal quarters ending prior to the Date of
Termination and a fraction. the numerator of which is the number of days from
the first day of the fiscal quarter in which the Date of Termination occurs
through and including the Date of Termination, and the denominator of which is
the number of days in the fiscal quarter which the Date of Termination occurs,
and (iv) any compensation previously deferred by the Executive (together with
any accrued interest thereon) and not yet paid by the Company and any accrued
vacation pay not yet paid by the Company (such amounts specified in clauses (i),
(ii) and (iii) are hereinafter refused to as "Accrued Obligations"). All such
Accrued Obligations shall be paid to the Executive's estate or beneficiary, as
applicable, in a lump sum in cash within 30 days of the Date of Termination.
Anything in this Agreement to the contrary notwithstanding, the Executive's
family shall be entitled to receive benefits at least equal to the most
favorable benefits provided by the Company and any of its subsidiaries to
surviving families of executives of the Company and such subsidiaries under such
plans, programs, practices and policies relating to family death benefits, if
any, in accordance with the plans, programs, practices and policies of the
Company and its subsidiaries in effect at any time during the 180 day period
immediately preceding the Effective Time or, if more favorable to the Executive
and/or the Executive's family, as in effect on the date of the Executive's death
with respect to other executives of the Company and its subsidiaries and their
families.

                  (b)      Disability. If the Executive's employment is
terminated by reason of the Executive's Disability, this Agreement shall
terminate without further obligations to the Executive, other than those
obligations accrued or earned and vested (if applicable) by the Executive as of
the Date of Termination, including for this purpose, all Accrued Obligations.
All such Accrued Obligations shall be paid to the Executive in a lump sum in
cash within 30 days of the Date of Termination. Anything in this Agreement to
the contrary notwithstanding, the Executive shall be entitled after the
Disability Effective Date to receive disability and other benefits at least
equal to the most favorable of those provided by the Company and its
subsidiaries to disabled Executives and/or their families in accordance with
such plans, programs, practices and policies relating to disability, if any, in
accordance with the plans, programs, practices and policies of the Company and
its subsidiaries in effect at any time during the 180 day period immediately
preceding the Effective Date or, if favorable to the Executive and/or the
Executive's family, as in effect at any time thereafter on the Disability
Effective Date with respect to other executives and their families.

        (c)      Cause; Other than for Good Reason. If the Executive's
employment shall be terminated for Cause, this Agreement shall terminate
without further obligations to the Executive other than the obligation to pay
to the Executive the Highest Base Salary through the Date of Termination plus
the amount of any compensation previously deferred by the Executive (together
with accrued interest thereon). If the Executive terminates employment other
than for Good Reason, this Agreement shall terminate without further
obligations to the Executive, other than those obligations accrued or earned
and vested (if applicable) by the Executive through the Date of Termination,
including for this purpose, all Accrued Obligations. All such Accrued
Obligations shall be paid to the Executive pay the Executive in a lump sum in
cash within 30 days of the Date of Termination. The Executive shall not be
released from the covenants contained in Sections 6 and 7 hereof and on the
first day of the month following the Date of Termination the Company shall pay
the Executive a lump sum cash payment  equal to 1/12th of the Executive's
Highest Base Salary, multiplied by the lesser  of (i) 12, or (ii) the number of
months (and fractions thereof) from the Date  of Termination through December
31, 2003; provided, however, that in the event  that the Company terminates the
Executive's employment for Cause, then the Company  may eject, by written
notice to the Executive prior to

                                       6
<PAGE>

the first day of the calendar month following the Date of Termination, to
release the Executive from the covenants contained in Section 6(b)(1) and (2)
hereof, in which case the Company shall be released from its obligations to make
the payment specified in this sentence.

                  (d)      Good Reason; Other Than for Cause, Disability or
Death. If, during the Employment Period, the Company shall terminate the
Executive's employment other than for Cause, Disability or death, or if the
Executive shall terminate his employment for Good Reason:

                           (i)  the Company shall pay to the Executive in a
         lump sum in cash within 30 days after the Date of Termination the
         aggregate of the following amounts:

                                    (1)      the Accrued Obligations, and

                                    (2)      the Executive's Highest Base Salary
                  for the period from the Date of Termination until the last day
                  of the Employment Period under Section 1 hereof, determined
                  for this purpose without regard to any early termination under
                  Section 3 hereof or otherwise, and provided, however, that if
                  the Date of Termination is within the first two years of the
                  Employment Period, the foregoing period shall not be less than
                  2 years (such period being defined as the "Remaining Period");
                  and

                                    (3)      an amount equal to the product of
                  (i) the Quarterly Bonuses payable to the Executive for the
                  last four fiscal quarters ending on or before the Date of
                  Termination, or if higher, the Quarterly Bonuses payable to
                  the Executive for the last four fiscal quarters ending on or
                  before the Effective Time (the "Recent Bonuses"), multiplied
                  by (ii) a fraction. the numerator of which is the number of
                  days in the Remaining Period, and the denominator of which is
                  365; and

                                    (4)      in the case of compensation
                  previously deferred by the Executive, all amounts previously
                  deferred (together with any accrued interest thereon) and not
                  yet paid by the Company; and

                                    (5)      all other amounts accrued or earned
                  by the Executive through the Date of Termination and amounts
                  otherwise owing under the then existing plans and policies at
                  the Company; and

                           (ii)     for the Remaining Period, or such longer
         period as any plan, program, practice or policy may provide, the
         Company shall continue benefits to the Executive and/or the Executive's
         family at least equal to those which would have been provided to them
         in accordance with the plans, programs, practices and policies
         described in Section 2(b)(iv) and (vi) of this Agreement if the
         Executive's employment had not been terminated, including health,
         dental, disability insurance and life insurance, and, for purposes of
         eligibility for retiree benefits pursuant to such plans, practices,
         programs and policies, the Executive shall be considered to have
         remained employed until the end of the Employment Period and to have
         retired on the last day of such period.

                                       7
<PAGE>

                (e)      Change in Control.

                           (i)      Notwithstanding the foregoing provisions of
         Section 4(d) hereof, in the event that after the Change in Control
         Effective Date, as defined below, either the Company shall terminate
         the Executive's employment other than for Cause. Disability or death,
         or the Executive shall terminate his employment for Good Reason, then
         the lump sum payable to the Executive under Section 4(d)(i) hereof (in
         addition to the continuation of benefits under Section 4(d)(ii) hereof)
         shall be the greater of the amount specified in Section 4(d)(i) hereof
         or the aggregate of the following amounts:

                                    (1)      The Accrued Obligations; and

                                    (2)      the product of (x) two times (y)
                  the sum of (i) the Highest Base Salary and (ii) the Recent
                  Bonuses; and

                                    (3)      in the case of compensation
                  previously deferred by the Executive, all amounts previously
                  deferred (together with any accrued interest thereon) and not
                  yet paid by the Company, and any accrued vacation pay not yet
                  paid by the Company; and

                                    (4)      all other amounts accrued or earned
                  by the Executive through the Date of Termination and amounts
                  otherwise owing under the then existing plans and policies at
                  the Company; and

                           (ii)     For purposes of this Agreement:

                                    (1)      the "Change in Control Effective
                  Date" shall be the date on which a Change of Control occurs.
                  Anything in this Agreement to the contrary notwithstanding, if
                  the Executive's employment with the Company is terminated
                  prior to the date on which a Change of Control occurs, and it
                  is reasonably demonstrated that such termination (x) was at
                  the request of a third party who has taken steps reasonably
                  calculated to effect a Change of Control, or (y) otherwise
                  arose in connection with or anticipation of a Change of
                  Control, then for all purposes of this Agreement the "Change
                  in Control Effective Date" shall mean the date immediately
                  prior to the date of such termination; and

                                    (2)      "Change of Control" shall mean the
                  occurrence of any of the following events with respect to
                  either the Company or the Parent, or any other entity that
                  owns, directly or indirectly, a Controlling Interest, as
                  defined below, in the Company or the Parent (each an
                  "Applicable Entity"):

                                                (i)      consummation by the
         Applicable Entity of (x) a reorganization, merger, consolidation or
         other of corporate transaction or series of transactions, in each case,
         with respect to which persons who were the shareholders of the
         Applicable Entity immediately prior to such reorganization, merger or
         consolidation or other transaction do not, immediately thereafter, own
         more than 50% of the combined voting power entitled to vote generally
         in the election of directors of the reorganized, merged or consolidated
         company's then outstanding voting securities in substantially the

                                       8
<PAGE>

         same proportions as their ownership immediately prior to such
         reorganization, or (y) a liquidation or dissolution of the Applicable
         Entity, or (z) the sale of all or substantially all of the assets of
         the Applicable Entity;

                                                (ii)     Individuals who, as of
         the date immediately following the consummation of the Merger (as
         provided in the Merger Agreement), constitute the board of directors of
         the Applicable Entity (the "Incumbent Board") cease for any reason to
         constitute a majority of the board of directors of the Applicable
         Entity, provided that any person becoming a director subsequent to the
         date of this Agreement whose election, or nomination for election by
         the Applicable Entity's shareholders, was approved by a vote of at
         least a majority of the directors then comprising the Incumbent Board
         (other than an election or nomination of an individual whose initial
         assumption of office is in connection with an actual or threatened
         election contest relating to the election of the Directors) shall be,
         for purposes of this Agreement, considered as though such person were a
         member of the Incumbent Board; or

                                                (iii)    the acquisition (other
         than from the Applicable Entity, the Parent or its subsidiaries) by any
         person, entity or "group", within the meaning of Section 13(d)(3) or
         14(d)(2) of the Securities Exchange Act, of more than 50% of either the
         then outstanding shares of the Applicable Entity's Common Stock or the
         combined voting power of the Applicable Entity's then outstanding
         voting securities entitled to vote generally in the election of
         directors (hereinafter referred to as the ownership of a "Controlling
         Interest"') excluding, for this purpose, any acquisitions by (1) the
         Applicable Entity, the Parent or its subsidiaries, (2) any person,
         entity or "group" that as of the date of this Agreement owns beneficial
         ownership (within the meaning of Rule 13d-3 promulgated under the
         Securities Exchange Act of 1934) of a Controlling Interest, or (3) any
         employee benefit plan of the Applicable Entity. the Parent or its
         subsidiaries.

Notwithstanding the foregoing or anything in this Agreement to the contrary, (x)
the consummation of any or all of the transactions contemplated in the Merger
Agreement shall not constitute a Change of Control and (y) no public offering by
the Applicable Entity of its shares of Common Stock (a "Public Offering") shall
constitute a Change in Control unless the stockholders of the Applicable Entity
immediately prior to the Public Offering own, immediately following the Public
Offering, less than 40% of the outstanding shares of the Applicable Entity or
less than 40% of the combined voting power of the Applicable Entity's then
outstanding voting securities entitled to vote in the election of directors, and
(z) no Change in Control shall be deemed to occur solely by reason of any
transaction among Applicable Entities.

                  (f)      Non-exclusivity of Rights. Nothing in this Agreement
shall prevent or limit the Executive's continuing or future participation in any
benefit, bonus, incentive or other plans, programs, policies or practices
provided by the Company or any of its subsidiaries and for which the Executive
may qualify, nor shall anything herein limit or otherwise affect such rights as
the Executive may have under any stock option or other agreements with the
Company or any of its subsidiaries. Amounts which are vested benefits or which
the Executive is otherwise entitled to receive under any plan, policy, practice
or program of the Company or any of its subsidiaries at or subsequent to the
Date of Termination shall be payable in accordance with such plan, policy,
practice or program.

                                       9
<PAGE>

                  (g)      Full Settlement. The Company's obligation to make the
payments provided for in this Agreement and otherwise to perform its obligation
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which the Company may have against the
Executive or others. In no event shall the Executive be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable
to the Executive under any of the provisions of this Agreement. The Company
agrees to pay, to the full extent permitted by law, all legal fees and expenses
which the Executive may reasonably incur as a result of any contest (regardless
of the outcome thereof) commenced after the Change in Control Effective Date by
the Company or others of the validity or enforceability of, or liability under,
any provision of this Agreement or any guarantee of performance thereof
(including as a result of any contest by the Executive about the amount of any
payment pursuant to Section 5 of this Agreement), plus in each case interest at
the applicable Federal rate provided for in Section 7872(f)(2) of the Code.

        5.       Certain Reduction of Payments by the Company.

                  (a)      Anything in this Agreement to the contrary
notwithstanding, in the event it shall be determined that any payment or
distribution by the Company to or for the benefit of the Executive, whether paid
or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise (a "Payment"), would be nondeductible by the Company for
Federal income tax purposes because of Section 280G of the Code, then the
aggregate present value of amounts payable or distributable to or for the
benefit of the Executive pursuant to this Agreement (such payments or
distributions pursuant to this Agreement are hereinafter referred to as
"Agreement Payments") shall be reduced to the Reduced Amount. The "Reduced
Amount" shall be an amount expressed in present value which maximizes the
aggregate present value of Agreement Payments without causing any Payment to be
nondeductible by the Company because of Section 280G of the Code. Anything to
the contrary notwithstanding, if the Reduced Amount is zero and it is determined
further that any Payment which is not an Agreement Payment would nevertheless be
nondeductible by the Company for Federal income tax purposes because of Section
280G of the Code, then the aggregate present value of Payments which are not
Agreement Payments shall also be reduced (but not below zero) to an amount
expressed in present value which maximizes the aggregate present value of
Payments without causing any Payment to be nondeductible by the Company because
of Section 280G of the Code. For purposes of this Section 5, present value shall
be determined in accordance with Section 280G(d)(4) of the Code.

                  (b)      All determinations required to be made under this
Section 5 shall be made by BDO Siedman, LLP (the" Accounting Firm"), which shall
provide detailed supporting calculations both to the Company and the Executive
within twenty (20) business days of the Date of Termination or such earlier time
as is requested by the Company and an opinion to the Executive that he has
substantial authority not to report any excise tax on his Federal income tax
return with respect to any Payments. In the event that the Accounting Firm is
serving as accountant or auditor for the individual, entity or group effecting
the Change of Control, the Executive shall appoint another nationally recognized
accounting firm to make the determinations required hereunder (which accounting
firm shall then be referred to as the Accounting Firm hereunder). Any such
determination by the Accounting Firm shall be binding upon the Company and the
Executive. The Executive shall determine which and how much of

                                       10
<PAGE>

the Payments shall be eliminated or reduced consistent with the requirements of
this Section 5, provided that, if the Executive does not make such determination
within ten business days of the receipt of the calculations made by the
Accounting Firm, the Company shall elect which and how much of the Payments
shall be eliminated or reduced consistent with the requirements of this Section
5 and shall notify the Executive promptly of such election. Within five business
days thereafter, the Company shall pay to or distribute to or for the benefit of
the Executive such amounts as are then due to the Executive under this
Agreement. All fees and expenses of the Accounting Firm incurred in connection
with the determinations contemplated by this Section 5 shall be borne by the
Company.

                  (c)      As a result of the uncertainty in the application of
Section 280G of the Code at the time of the initial determination by the
Accounting Firm hereunder, it is possible that Payments will have been made by
the Company which should not have been made ("Overpayment") or that additional
Payments which will not have been made by the Company could have been made
("Underpayment"), in each case, consistent with the calculations required to be
made hereunder. In the event that the Accounting Firm, based upon the assertion
of a deficiency by the Internal Revenue Service against the Executive which the
Accounting Firm believes has a high probability of success, determines that an
Overpayment has been made, any such Overpayment paid or distributed by the
Company to or for the benefit of the Executive shall be treated for all purposes
as a loan ab initio to the Executive which the Executive shall repay to the
Company together with interest at the applicable federal rate provided for in
Section 7872(f)(2) of the Code; provided, however, that no such loan shall be
deemed to have been made and no amount shall be payable by the Employee to the
Company if and to the extent such deemed loan and payment would not either
reduce the amount on which the Executive is subject to tax under Section 1 and
Section 4999 of the Code or generate a refund of such taxes. In the event that
the Accounting Firm, based upon controlling precedent or other substantial
authority, determines that an Underpayment has occurred, any such Underpayment
shall be promptly paid by the Company to or for the benefit of the Executive
together with interest at the applicable federal rate provided for in Section
7872(f)(2) of the Code.

        6.       Non-Competition and Non-Interference.

                  (a)      Acknowledgments by the Executive. The Company
promises to and shall provide the Executive with Confidential Information, as
defined in Section 7(b)(iii)(1) hereof, in order for the Executive to perform
his duties under this Agreement. The Executive acknowledges that: (i) the
services to be performed by him under this Agreement are of a special, unique,
unusual, extraordinary, and intellectual character, and (b) the provisions of
this Section 6 are reasonable and necessary to protect the Confidential
Information, goodwill and other business interests of the Company.

                  (b)      Covenants of the Executive. In consideration of the
acknowledgments by the Executive, and in consideration of (i) the compensation
and benefits to be paid or provided to the Executive by the Company, (ii) the
Executive's continued employment with the Company and (iii) the provision of
Confidential Information to the Executive, the Executive covenants that he will
not, directly or indirectly:

                                       11
<PAGE>

                           (1)      during the Non-compete Period, without the
                  express prior written consent of the board of directors of the
                  Company, as owner, officer, director, employee, stockholder,
                  principal, consultant, agent, lender, guarantor, cosigner,
                  investor or trustee of any corporation, partnership,
                  proprietorship, joint venture, association or any other entity
                  of any nature, engage, directly or indirectly, in the Business
                  in any county in the United States in which the Company is
                  conducting Business activities; provided, however, that the
                  Executive may purchase or otherwise acquire up to (but not
                  more than) 1% of any class of securities of any such
                  enterprise (but without otherwise participating in the
                  activities of such Enterprise) if such securities are listed
                  on any national or regional securities exchange or have been
                  registered under Section 12(g) of the Securities Exchange Act
                  of 1934:

                           (2)      during the Non-Compete Period, whether for
                  the Executive's own account or for the account of any other
                  person, (except for the account of the Company and its
                  affiliates), (x) solicit business of the same or similar type
                  being carried on by the Company, from any person known by the
                  Executive to be a customer of the Company, whether or not the
                  Executive had, personal contact with such person during and by
                  reason of the Executive's employment with the Company, or (y)
                  interfere with the Company's relationship with any person who
                  at any time during the period of his employment with the
                  Company, was a contractor, supplier, or customer of the
                  Company; or

                           (3)      whether for the Executive's own account or
                  the account of any other person, at any time during his
                  employment with the Company or its affiliates and the Post-
                  Employment Period, solicit, employ, or otherwise engage as an
                  employee, independent contractor, or otherwise. any person who
                  is an employee of the Company, or in any manner induce, or
                  attempt to induce, any employee of the Company to terminate
                  his employment with the Company; provided, however, that
                  nothing in this Section 6(b)(3) shall preclude the Executive
                  from soliciting or employing any person who was employed by
                  the Company after six months have lapsed from the last date of
                  the former employee's employment with the Company.

                  (c)      For purposes of this Agreement:

                           (i)      the "Noncompete Period" shall mean the
         period beginning on the date of this Agreement is executed and ending
         on the earlier of (1) December 31, 2003 or (ii) the first anniversary
         of the Executive's termination of employment.

                           (ii)     the "Post-Employment Period" shall mean the
         eighteen (18) month period beginning on the Date of Termination.

                  (d)      If any covenant in Section 6(b) is held to be
unreasonable, arbitrary, or against public policy, such covenant will be
considered to be divisible with respect to scope, time, and geographic area, and
such lesser scope, time, or geographic area, or all of them, as a court of
competent jurisdiction may determine to be reasonable, not arbitrary, and not
against

                                       12
<PAGE>

public policy will be effective, binding, and enforceable against the
Executive. The Executive hereby agrees that this covenant is a material and
substantial part of this Agreement and that (i) the geographic limitations are
reasonable; (ii) the term of the covenant is reasonable; and (iii) the covenant
is not made for the purpose of limiting competition per se and is reasonably
related to a protectable business interest of the Company.

        7.       Non-Disclosure Covenant; Executive Inventions.

                  (a)      Acknowledgments by the Executive. The Executive
acknowledges that (i) during the Employment Period and as a part of his
employment, the Executive will be afforded access to Confidential Information:
(ii) public disclosure of such Confidential Information could have an adverse
effect on the Company and its business; (iii) because the Executive possesses
substantial technical expertise and skill with respect to the Company's
business, the Company desires to obtain exclusive ownership of each Executive
Invention, and the Company will be at a substantial competitive disadvantage if
it fails to acquire exclusive ownership of each Executive Invention; and (d) the
provisions of this Section 7 are reasonable and necessary to prevent the
improper use or disclosure of Confidential Information and to provide the
Company with exclusive ownership of all Executive Inventions.

                  (b)      Agreements of the Executive. In consideration of the
compensation and benefits to be paid or provided to the Executive by the Company
under this Agreement, and the provision of Confidential Information, the
Executive covenants as follows:

                (i)        Confidentiality.

                           (1)      During his employment with the Company and
         its affiliates and during the Post-Employment Period, the Executive
         will hold in confidence the Confidential Information and will not
         disclose it to any person other than in connection with the performance
         of his duties and obligations hereunder, except with the specific prior
         written consent of the board of directors of the Company or except as
         otherwise expressly permitted by the terms of this Agreement or as
         required by law.

                           (2)      Any trade secrets of the Company will be
         entitled to all of the protections and benefits under the federal and
         state trade secret and intellectual property laws and any other
         applicable law. The Executive hereby waives any requirement that the
         Company submit proof of the economic value of any trade secret or post
         a bond or other security.

                           (3)      None of the foregoing obligations and
         restrictions applies to any part of the Confidential Information that
         the Executive demonstrates was or became generally available to the
         public other than as a result of an improper disclosure by the
         Executive.

                           (4)      The Executive will not remove from the
         Company's premises (except to the extent such removal is for purposes
         of the performance of the Executive's duties at home or while
         traveling, or except as otherwise specifically authorized by the
         Company) any document, record, notebook, plan,

                                       13
<PAGE>

         model, component, device, or computer software or code, whether
         embodied in a disk or in any other form belonging to the Company or
         used in Company's business (collectively, the "Proprietary Items"). The
         Executive recognizes that, as between the Company and the Executive,
         all of the Proprietary Items, whether or not developed by the
         Executive, are the exclusive property of the Company. Upon termination
         of his employment, or upon the request of the Company during the
         Post-Employment Period, the Executive will return to the Company all of
         the Proprietary Items and Confidential Information in the Executive's
         possession or subject to the Executive's control, and the Executive
         shall not retain any copies, abstracts, sketches, or other physical
         embodiment, including electronic or otherwise, of any of the
         Proprietary Items or Confidential Information.

                  (ii)     Executive Inventions. Each Executive Invention will
belong exclusively to the Company. The Executive acknowledges that all of the
Executive's writing, works of authorship and other Executive Inventions are
works made for hire and the property of the Company, including any copyrights,
patents, or other intellectual property rights pertaining thereto. If it is
determined that any such Executive Inventions are not works made for hire, the
Executive hereby assigns to the Company all of the Executive's right, title and
interest, including all rights of copyright, patent, and other Intellectual
property rights, to or in such Executive Inventions. The Executive covenants
that he will promptly:

                           (1)      disclose to the Company in writing any
         Executive Invention;

                           (2)      assign to the Company or to a party
         designated by the Company. at the Company's request and without
         additional compensation, all of the Executive's right to the Executive
         Invention for the United Stares and all foreign jurisdictions;

                           (3)      execute and deliver to the Company such
         applications, assignments, and other documents as the Company may
         request in order to apply for and obtain patents or other registrations
         with respect to any Executive Invention in the United States and any
         foreign jurisdictions;

                           (4)      sign all other papers necessary to carry out
         the above obligations; and

                           (5)      give testimony and render any other
         assistance but without expense to the Executive in support of the
         Company's rights to any Executive Invention.

                  (iii)    Definitions. For purposes of this Agreement:

                           (1)      The term "Confidential Information" means
         any and all intellectual property of the Company (or any of its
         affiliates), including but not limited to:

                                       14
<PAGE>

                                    (i)      trade secrets concerning the
         business and affairs of the Company (or any of its affiliates), product
         specifications, data, know-how, formulae, compositions, processes,
         designs, sketches, photographs, graphs, drawings, samples, inventions
         and ideas, past, current, and planned research and development, current
         and planned manufacturing or distribution methods and processes,
         customer lists, current and anticipated customer requirements, price
         lists, market studies, business plans, computer software and programs
         (including object code and source code), computer software and database
         technologies, systems, structures, and architectures (and related
         formulae, compositions, processes, improvements, devices, know-how,
         inventions, discoveries, concepts, ideas, designs, methods and
         information), and any other information, however documented, that is a
         trade secret under federal, state or other applicable law; and

                                    (ii)     information concerning the business
         and affairs of the Company (or any of its affiliates) (which includes
         historical financial statements, financial projections and budgets,
         historical and projected sales, capital spending budgets and plans, the
         names and backgrounds of key, personnel, personnel training and
         techniques and materials), however documented; and

                                    (iii)    notes, analysis, compilations,
         studies, summaries, and other material prepared by or for the Company
         (or any of its affiliates) containing or based, in whole or in part, on
         any information included in the foregoing.

                           (2)      The term "Executive Invention" mean any
                  idea, invention, technique, modification, process, or
                  improvement (whether patentable or not), any industrial design
                  (whether registerable or not), any mask work, however fixed or
                  encoded, that is suitable to be fixed, embedded or programmed
                  in a semiconductor product (whether recordable or not), and
                  any work of authorship (whether or not copyright protection
                  may be obtained for it) created, conceived, or developed by
                  the Executive, either solely or in conjunction with others,
                  during the Employment Period or at any time prior to the
                  Employment Period that Executive was an employee of the
                  Company, or a period that includes a portion of the Employment
                  Period, that relates in any way to, or is useful in any manner
                  in, the business then being conducted or proposed to be
                  conducted by the Company; and any such item created by the
                  Executive, either solely or in conjunction with others,
                  following termination of the Executive's employment with the
                  Company, that is based upon or uses Confidential Information.

                  (c)      Disputes of Controversies. The Executive recognizes
that should a dispute or controversy arising from or relating to this Agreement
be submitted for adjudication to any court, arbitration panel, or other third
party, the preservation of the secrecy of Confidential Information may be
jeopardized. All pleadings, documents, testimony, and records relating to any
such adjudication will be maintained in secrecy and will be available for
inspection by the Company, the Executive, and their respective attorneys and
experts, who will agree, in advance and in writing, to receive and maintain all
such information in secrecy, except as may be limited by them in writing.

                                       15
<PAGE>

        8.        General Provisions.

                  (a)      Injunctive Relief and Additional Remedy. The
Executive acknowledges that the injury that would be suffered by the Company as
a result of a breach of the provisions of Sections 6 or 7 of this Agreement
would be irreparable and that an award of monetary damages to the Company for
such a breach would be an inadequate remedy. Consequently, the Company will have
the right, in addition to any other rights it may have, to obtain a temporary
restraining order and/or injunctive relief to restrain any breach or threatened
breach or otherwise to specifically enforce any provision of this Agreement. The
Executive agrees to waive any requirement for the Company's securing or posting
of any bond in conjunction with any such remedies. The Executive further agrees
to and hereby does submit to in personam jurisdiction before each and every
court in the jurisdiction specified in Section 9.5(b) hereof for that purpose.
Without limiting the Company's rights under this Section 8 or any other remedies
of the Company, if the Executive breaches any of the provisions of Sections 6
and 7 and such breach is proven in a court of competent jurisdiction, the
Company will have the right to cease making any payments otherwise due to the
Executive under this Agreement.

                  (b)      Covenants of Sections 6 and 7 are Essential and
Independent Covenants. The covenants by the Executive in Sections 6 and 7 are
essential elements of this Agreement, and without the Executive's agreement to
comply with such covenants, the Company would not have entered into this
Agreement or continued the employment of the Executive. The Company and the
Executive have independently consulted their respective counsel and have been
advised in all respects concerning the reasonableness and propriety of such
covenants, with specific regard to the nature of the business conducted by the
Company. The Executive's covenants in Sections 6 and 7 are independent covenants
and the existence of any claim by the Executive against the Company under this
Agreement or otherwise will not excuse the Executive's breach of any covenant in
Sections 6 or 7.

                  (c)      Survival. Notwithstanding anything in the Agreement
to the contrary, (i) the covenants and agreements of the Executive in Sections 6
and 7 shall survive the termination of the Agreement, except as provided below,
and (ii) the covenants and agreements in Section 6 and 7 shall be effective as
of the date this Agreement is executed; however, such covenants shall
automatically lapse if the transactions contemplated by the Merger Agreement are
not consummated within 4 months of the execution of this Agreement.

                  (d)      Legal Recourse. The Executive further agrees that the
covenants in Sections 6 and 7 are made to protect the legitimate business
interests of the Company. The Executive understands as a part of these covenants
that the Company intends to exercise whatever legal recourse against him for any
breach of this Agreement and in particular, for any breach of the covenants in
Sections 6 and 7.

        9.        General Provisions.

                  (a)      Waiver. The rights and remedies of the parties to
this Agreement are cumulative and not alternative. Neither the failure nor any
delay by either party in exercising any right, power, or privilege under this
Agreement will operate as a waiver of such right, power, or privilege, and no
single or partial exercise of any such right, power, or privilege will preclude

                                       16
<PAGE>

any other or further exercise of such right, power, or privilege or the exercise
of any other right, power, or privilege. To the maximum extent permitted by
applicable law, (i) no claim or right arising out of this Agreement can be
discharged by one party, in whole or in part, by a waiver or renunciation of the
claim or right unless in writing signed by the other party; (ii) no waiver that
may be given by a party will be applicable except in the specific instance for
which it is given; and (iii) no notice to or demand on one party will be deemed
to be a waiver of any obligation of such party or of the right of the party
giving such notice or demand to take further action without notice or demand as
provided in this Agreement.

                  (b)      Binding Effect; Delegation of Duties Prohibited. This
Agreement shall inure to the benefit of, and shall be binding upon, the parties
hereto and their respective successors, assigns, heirs, and legal
representatives, including any entity with which the Company may merge or
consolidate or to which all or substantially all of its assets may be
transferred. The duties and covenants of the Executive under this Agreement,
being personal, may not be delegated.

                  (c)      Notices. All notices, consents, waivers, and other
communications required under this Agreement must be in writing and will be
deemed to have been duly given when (i) delivered by hand (with written
confirmation of receipt), (ii) sent by facsimile (with written confirmation of
receipt), provided that a copy is mailed by certified mail, return receipt
requested, or (iii) when received by the addressee, if sent by a nationally
recognized overnight delivery service, in each case to the appropriate addresses
and facsimile numbers set forth below (or to such other addresses and facsimile
numbers as a party may designate by notice to the other parties):

                  If to the Company:

                           Engle Homes, Inc.
                           123 Northwest 13th Street, Suite 300
                           Boca Raton, Florida  33432
                           Att:  Chief Financial Officer
                           Facsimile No.:  561-338-5634

                           With a copy to:

                           Mark Kelly
                           Vinson & Elkins
                           1001 Fannin, Suite 2300
                           Houston, Texas  77002
                           Facsimile No.:  713-615-5531

                  If to the Executive:

                           Mark Upton
                           1603 E. Desert Willow Drive
                           Phoenix, Arizona  85048

                                       17
<PAGE>

                  (d)      Entire Agreement: Amendments. This Agreement contains
the entire agreements between the parties with respect to the subject matter
hereof and hereby expressly terminates, rescinds, replaces and supersedes all
prior and contemporaneous agreements and understandings, oral or written,
between the parties hereto with respect to the subject matter hereof, including,
but not limited to, the Severance Agreement. This Agreement may not be amended
orally, but only by an agreement in writing signed by the parties hereto.

                  (e)      Governing Law: Submission to Jurisdiction.

                           (i)      This Agreement will be governed by the laws
         of the state of Florida without regard to conflicts of laws principles.

                           (ii)     Each party hereby irrevocably submits to the
         exclusive jurisdiction of the state and federal courts in Maricopa
         County, Arizona, for the purposes of any proceeding arising out of this
         Agreement.

                  (f)      Severability. If any provision of this Agreement is
held invalid or unenforceable by any court of competent jurisdiction, the other
provisions of this Agreement will remain in full force and effect. Any provision
of this Agreement held invalid or unenforceable only in part or degree will
remain in full force and effect to the extent not held invalid or unenforceable.

                  (g)      Stock Options. The Executive hereby irrevocably
agrees, effective for all purposes as of the date this Agreement is executed, to
surrender to the Company, within five days after the consummation of the tender
offer contemplated in the Merger Agreement, any options of the Executive with
respect to stock of the Company, unexercised, in exchange for payment in cash by
the Company equal to the aggregate spread on such options, (i.e., for each
option, the amount by which $19.10 exceeds the exercise price per share under
the options, multiplied by the number of shares of Common Stock of the Company
subject to the option), less applicable withholding taxes, as provided in the
Merger Agreement.

                  (h)      The Company will require any successor (whether
direct or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to assume
expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place. As used in this Agreement, "Company" shall mean the Company as
hereinbefore defined and any successor to its business and/or assets as
aforesaid which assumes and agrees to perform this Agreement by operation of
law, or otherwise.

        10.       Indemnification.

                  (a)      The Company shall indemnify and hold harmless the
Executive to the fullest extent permitted by law from and against any and all
claims, causes of action, lawsuits, damages, expenses (including reasonable
attorneys' fees and costs), judgments, penalties, fines, amounts paid in
settlements, interest and all other liabilities incurred or paid by the
Executive in connection or in any way associated with the investigation,
defense, prosecution, settlement or appeal of any threatened, pending or
completed action, suit or proceeding, whether civil, criminal, administrative or
investigative and to which the Executive was or is a party or is

                                       18
<PAGE>

threatened to be made a party by reason of the fact that the Executive is or was
an officer, employee or agent of the Company, or any subsidiaries or affiliates,
including any property owner or condominium association that the Executive has
been asked to serve on by the Company, or by reason of anything done or not done
by the Executive in any such capacity or capacities, provided that the Executive
acted in good faith, and in a manner the Executive reasonably believed to be in
or not opposed to the best interests of the Company, and, with respect to and
criminal action or proceeding, had no reasonable cause to believe his conduct
was unlawful. The Company also shall pay any and all expenses (including
attorney's fees) incurred by the Executive as a result of the Executive being
called as a witness in connection with any matter involving the Company and/or
any of its officer or directors.

                  (b)      The Company shall pay any expenses (including
attorneys' fees and costs), judgments, penalties, fines, settlements, interest
and other liabilities incurred by the Executive in investigating, defending,
settling or appealing any action, suit or proceeding described in this Section
10 in advance of the final disposition of such action, suit or proceeding. The
Company shall promptly pay the amount of such expenses to the Executive, but in
no event later than ten (10) days following the Executive's delivery to the
Company of a written request for an advance pursuant to this Section 10,
together with a reasonable accounting of such expenses.

                  (c)      The Executive hereby undertakes and agrees to repay
to the Company any advances made pursuant to this Section 10 if and to the
extent that it shall ultimately be found that the Executive is not entitled to
be indemnified by the Company for such amounts.

                  (d)      The Company shall make the advances contemplated by
this Section 10 regardless of the Executive's financial ability to make
repayment, and regardless whether indemnification of the Indemnitee by the
Company will ultimately be required. Any advances and undertakings to repay
pursuant to this Section 10 shall be unsecured and interest-free.

                  (e)      The provisions of this Section 10 shall survive the
termination of this Agreement.

                                       19
<PAGE>

         IN WITNESS WHEREOF, the parties have executed and delivered this
Agreement effective for all purposes as of the Effective Time, except as
otherwise provided herein.

                                   "COMPANY"

                                   Engle Homes, Inc

                                   By:  /s/ Alec Engelstein
                                      -----------------------------------------
                                   Name:  Alec Engelstein
                                        ---------------------------------------
                                   Title:  President
                                         --------------------------------------

                                   "EXECUTIVE"

                                   /s/ Mark Upton
                                   --------------------------------------------
                                   Mark Upton

                                       20

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