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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SECURITIES
      AND EXCHANGE COMMISSION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WASHINGTON,
      D.C. 20549</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FORM
      8-K</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
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      Report</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">of
      the
      Securities Exchange Act of 1934</font></div>
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      2006 (March 10, 2006)</font></div>
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      INC.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Exact
      Name of registrant as specified in its charter)</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Delaware</font></div>
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                or other jurisdiction of incorporation)</font></div>
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                File Number)</font></div>
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            <td valign="top" width="33%">
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                Employer </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Identification
                No.)</font></div>
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">One
                Blue Hill Plaza, Pearl River, New York</font></div>
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                of principal </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">executive
                offices)</font></div>
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            <td valign="top" width="34%">&#160;</td>
            <td valign="top" width="33%">
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              <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(Zip
                Code)</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Registrant's
      telephone number, including area code: (845) 620-1212</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font>
      Written communications
      pursuant to Rule 425 under the Securities Act (17 CFR 230.425)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font>&#160;Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font>
      Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-FAMILY: Wingdings">o</font>
      Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center">
        </div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
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      <div id="HDR">
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>TRAFFIX,
      INC.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>INDEX
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>FILED
      WITH THE SECURITIES AND EXCHANGE COMMISSION</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>MARCH
      14, 2006</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>ITEMS
      IN FORM 8-K</u></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
      <div align="left">
        <table border="0" cellpadding="0" cellspacing="0" width="100%">

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              <td align="left" valign="top" width="20%" style="border-bottom: #ccffcc solid;">&#160;</td>
              <td align="left" valign="top" width="73%" style="border-bottom: #ccffcc solid;">&#160;</td>
              <td align="left" valign="bottom" width="7%" style="border-bottom: black thin solid;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Page</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="20%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="top" width="73%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="top" width="7%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="20%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Facing
                  Page</font></div>
              </td>
              <td align="left" valign="top" width="73%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="top" width="7%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="20%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="top" width="73%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="top" width="7%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="20%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                  1.01</font></div>
              </td>
              <td align="left" valign="top" width="73%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Entry
                  into a Material Definitive Agreement</font></div>
              </td>
              <td align="left" valign="top" width="7%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="20%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="top" width="73%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="top" width="7%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="20%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Item
                  9.01</font></div>
              </td>
              <td align="left" valign="top" width="73%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Financial
                  Statements and Exhibits</font></div>
              </td>
              <td align="left" valign="top" width="7%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="20%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="top" width="73%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="top" width="7%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="20%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Signatures</font></div>
              </td>
              <td align="left" valign="top" width="73%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="top" width="7%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5</font></div>
              </td>
            </tr>
            <tr bgcolor="white">
              <td align="left" valign="top" width="20%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="top" width="73%" style="border-bottom: white;">&#160;</td>
              <td align="left" valign="top" width="7%" style="border-bottom: white;">&#160;</td>
            </tr>
            <tr bgcolor="#ccffcc">
              <td align="left" valign="top" width="20%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
                  Index</font></div>
              </td>
              <td align="left" valign="top" width="73%" style="border-bottom: #ccffcc;">&#160;</td>
              <td align="left" valign="top" width="7%" style="border-bottom: #ccffcc;">
                <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6</font></div>
              </td>
            </tr>

        </table>
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    </div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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        </div>
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">2</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
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    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
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      into a Material Definitive Agreement.</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">We
      entered into an employment agreement on March 10, 2006, effective as of
      December&#160;1, 2005, with Jeffrey L. Schwartz (the &#8220;Agreement&#8221;). The Agreement
      expires on November&#160;30, 2007; provided, however, that if our Pre-Tax Income
      (as defined in the Agreement) for the 21 months ending August 31, 2007 is at
      least $4.2 million, Mr. Schwartz has the right to extend the term to November
      30, 2008 (provided he exercises that option no later than November 1, 2007).
      </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the Agreement, (i)&#160;Mr.&#160;Schwartz is employed as our Chairman and
      Chief Executive Officer; (ii)&#160;Mr.&#160;Schwartz will be paid a base salary
      of $605,000 per annum; (iii)&#160;Mr.&#160;Schwartz will receive bonuses upon
      our Company&#8217;s achievement of certain pre-tax income milestones, as well as
      discretionary bonuses subject to approval of our Board of Directors;
      (iv)&#160;Mr.&#160;Schwartz was issued on March 10, 2006 a 10&#160;year option
      to acquire 60,000 shares of our Common Stock at an exercise price of $5.44
      per
      share, which option vests as follows:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;(x)
      &#160;&#160; 30,000 shares vested immediately; and</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;(<font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">y</font>)&#160;&#160;
      30,000 shares will vest on December 1, 2006;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(vi)
      we
      will pay for all expenses reasonably incurred by Mr. Schwartz in connection
      with
      the performance of his duties, including paying up to $25,000 per year towards
      the total per annum costs of an automobile; (vii) Mr.&#160;Schwartz agreed not
      to compete or engage in a business competitive with our business during the
      term
      of the Agreement and for a period of one year thereafter; (viii)&#160;if
      Mr.&#160;Schwartz&#8217;s employment is terminated other than as a result of a &#8220;For
      Cause Event&#8221; (as defined in the Agreement) or if he resigns for &#8220;Good Reason&#8221;
(as defined in the Agreement), he will be entitled to receive additional
      compensation and other consideration, all as more fully described in the
      Agreement; and (ix) at any time after September 2, 2006, Mr. Schwartz may
      terminate the Agreement, whereupon he will receive additional compensation
      and
      other consideration, as summarized below (and as more fully described in the
      Agreement).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Agreement provides that, if the Agreement terminates due to the scheduled
      expiration of the term, or if Mr. Schwartz voluntarily terminates his employment
      after September 2, 2006, Mr. Schwartz will (i) in partial consideration for
      agreeing to assume consulting obligations for us (as set forth in clause (iii),
      below), be entitled to receive a one-time, lump-sum payment of $250,000; (ii)
      be
      entitled to receive those bonuses which he was otherwise entitled to receive
      for
      the last bonus period ending before the termination of the Agreement; (iii)
      become a consultant to our Company for a period of three years, for which he
      will be paid a consulting fee of $108,334 per annum; and (iv) be entitled to
      receive additional consideration and compensation, all as more fully described
      in the Agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      foregoing is merely a summary of the material terms of the Agreement. For a
      complete description, a copy of the Agreement is annexed hereto in its entirety
      as an exhibit.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">3</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div>
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
      <div>&#160;</div>
      <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Item
        9.01.</strong></font><font id="TAB2" style="COLOR: black; LETTER-SPACING: 27pt">&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Financial
        Statements and Exhibits.</strong></font></div>
      <div>&#160;</div>
      <div><strong><font size="2">(c)&#160;<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Exhibits</font></strong></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><strong><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Number</u>&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Description</u></font></strong></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 9pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1*<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                1, 2005 Employment Agreement by and between the Registrant and Jeffrey
                L.
                Schwartz</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">---------------------------------</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Filed
      herewith</font></div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">4</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div>&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>SIGNATURES</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table align="center" bgcolor="#ffffff" border="0" cellpadding="0" cellspacing="0" width="100%">

          <tr valign="top" bgcolor="#ffffff">
            <td width="50%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="1%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td width="49%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Dated:
              March 14, 2006</font></td>
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">TRAFFIX,
              INC.</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;<br>&#160;</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td>&#160;</td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">/s/
              Daniel Harvey</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="FONT-FAMILY: " size="1">&#160;</font></td>
            <td align="left">
              <hr style="COLOR: black" align="left" noshade size="2" width="80%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Daniel
              Harvey</font></td>
          </tr>
          <tr valign="top" bgcolor="#ffffff">
            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">&#160;</font></td>
            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">Chief
              Financial Officer</font></td>
          </tr>

      </table>
    </div>
    <div>&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">5</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit
      Index</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 36pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>Exhibit</strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Number</u>&#160;&#160;&#160;&#160;&#160;&#160;
      </strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong><u>Description</u></strong></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div>
      <table align="center" border="0" cellpadding="0" cellspacing="0" id="hangingindent" width="100%">

          <tr valign="top" style="line-height: 1.25;">
            <td align="left" style="width: 9pt;"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">99.1*<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font></td>
            <td align="left">
              <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">December
                1, 2005 Employment Agreement by and between the Registrant and Jeffrey
                L.
                Schwartz</font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify">
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">---------------------------------</font></div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="justify"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">*<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;Filed
        herewith</font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: -9pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
    </div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">6</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Exhibit
      99.1</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="right"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EMPLOYMENT
      AGREEMENT</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">EMPLOYMENT
      AGREEMENT dated as of December 1, 2005 by and between TRAFFIX, INC., a Delaware
      corporation (the "Company"), and JEFFREY L. SCHWARTZ ("Executive").</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="center"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">W
      I T N E
      S S E T H:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">WHEREAS,
      the Company desires to employ Executive on the terms and subject to the
      conditions hereinafter set forth, and Executive desires so to be
      employed;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">NOW,
      THEREFORE, in consideration of the premises and the mutual covenants hereinafter
      set forth, the parties agree as follows:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">1.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Offices
      and Duties</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      Company hereby employs Executive as a full-time employee during the Term (as
      hereinafter defined) to serve as the Company's Chief Executive Officer and
      to
      perform such executive and supervisory duties on behalf of the Company as the
      Company's Board of Directors </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(or
      the
      appropriate Committee thereof)</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      may from
      time to time reasonably direct. By its approval of this Agreement, the Company's
      Board of Directors (or the appropriate Committee thereof) shall also agree
      to
      elect Executive to serve as the Company's Chairman. Executive hereby accepts
      such employment and agrees that throughout the Term he shall faithfully,
      diligently and to the best of his ability, in furtherance of the business of
      the
      Company, perform the duties assigned to him and shall devote substantially
      all
      of his business time and attention to the business and affairs of the Company.
      Executive shall at all times be subject to the direction and control of the
      Company's Board of Directors, and observe and comply with such rules,
      regulations, policies and practices as the Company's Board of Directors may
      from
      time to time establish.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">2.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Term
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      employment of Executive as a full-time employee hereunder shall commence on
      the
      date hereof and continue for a term of two (2) years ending on November 30,
      2007, unless there has been an Exercise of the Extension Option, whereupon
      it
      shall continue to November 30, 2008, subject in all respects to earlier
      termination upon the terms and conditions provided elsewhere herein (the
      "Term"). As used herein, &#8220;Termination Date" means the last day of the term of
      full-time employment (whether by virtue of the scheduled expiration of this
      Agreement or its accelerated termination in accordance with the provisions
      hereof).</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">An
      &#8220;Exercise of the Extension Option&#8221; shall have occurred if (i) the Company&#8217;s
      Pre-Tax Income (as defined and as calculated in accordance with Section 3(b)
      hereof) for the 21 months ending August 31, 2007 was at least $4.2 million;
      and
      (ii) the Executive has notified the Company in writing no later than November
      1,
      2007 that he elects to extend the Term to November 30, 2008. </font></div>
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    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
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        </div>
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        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">7</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
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        </div>
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    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">3.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Compensation</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">As
      compensation for his services hereunder, the Company shall pay to Executive
      during the Term:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div align="center">
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          <tr bgcolor="white">
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            </td>
            <td width="3%">&#160;</td>
            <td width="93%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a
                base salary at the rate of $605,000 per annum (the "Base Salary"),
                such
                Base Salary to be paid in substantially equal installments no less
                often
                than twice monthly;</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="4%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
            </td>
            <td width="3%">&#160;</td>
            <td width="93%">&#160;</td>
          </tr>
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            </td>
            <td width="3%">&#160;</td>
            <td width="93%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a
                bonus (the "2.5% Bonus") in respect of each Bonus Period (as hereinafter
                defined), payable within ninety (90) days after the end of such Bonus
                Period, in an amount equal to the lesser of (A) $125,000 (or such
                lesser
                pro rata amount if the Bonus Period is less than a full fiscal year)
                or
                (B) two and one-half percent (2.5%) of Pre-Tax Income (as hereinafter
                defined); and</font></div>
            </td>
          </tr>
          <tr bgcolor="white">
            <td width="4%">&#160;</td>
            <td width="3%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
            </td>
            <td width="93%">&#160;</td>
          </tr>
          <tr bgcolor="white">
            <td width="4%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font size="2">(iii)</font></div>
            </td>
            <td width="3%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
            </td>
            <td width="93%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">an
                additional bonus (the "Additional Bonus") in respect of each Bonus
                Period,
                payable within ninety (90) days after the end of such Bonus Period,
                as
                follows: </font></div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.3; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(A)
        </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">$75,000.00
        (or such lesser pro rata amount if the Bonus Period is less than a full fiscal
        year), if Pre-Tax Income for the Bonus Period is between 150% and 200% of
        the
        greater of (x) Pre-Tax Income for the comparable period from the Company&#8217;s prior
        fiscal year, or (y) $3.4 million (or such lesser pro rata amount if the Bonus
        Period is less than a full fiscal year); or </font></div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(B)
      $100,000.00 (or such lesser pro rata amount if the Bonus Period is less than
      a
      full fiscal year), if (x) Pre-Tax Income for the Bonus Period is between 200%
      and 250% of the greater of (x) Pre-Tax Income for the comparable period from
      the
      Company&#8217;s prior fiscal year, or (y) $3.4 million (or such lesser pro rata amount
      if the Bonus Period is less than a full fiscal year); or </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 108pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 90pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(C)
      $200,000.00 (or such lesser pro rata amount if the Bonus Period is less than
      a
      full fiscal year), if (x) Pre-Tax Income for the Bonus Period is two hundred
      fifty (250%) percent or more than the greater of (x) Pre-Tax Income for the
      comparable period from the Company&#8217;s prior fiscal year, or (y) $3.4 million (or
      such lesser pro rata amount if the Bonus Period is less than a full fiscal
      year); </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 63pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">but
      in no
      event shall the Additional Bonus payable to Executive with respect to any Bonus
      Period exceed five (5%) percent of the EBITDA for such Bonus Period;
      and</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="4%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font size="2">(iv)</font></div>
            </td>
            <td width="3%">&#160;</td>
            <td width="93%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">such
                  additional incentive or bonus compensation as the Company's Board
                  of
                  Directors (or the appropriate Committee thereof) may from time
                  to time
                  determine.</font></div>
              </div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">8</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">For
      the
      purposes of paragraph 3(a):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td valign="top" width="4%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font size="2">(i)</font></div>
            </td>
            <td width="3%">&#160;</td>
            <td width="93%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">A
                    "Bonus Period" is either a fiscal year of the Company ending
                    during the
                    Term, or, if the Term ends on a day other than the last day of
                    a fiscal
                    year of the Company (i.e. November 30), the portion of such fiscal
                    year
                    ending on the last day of the Company&#8217;s last completed fiscal quarter
                    (i.e. February 28/29, May 31 or August 31);
                    and</font></div>
                </div>
              </div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br>
      <div>
        <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

            <tr bgcolor="white">
              <td width="4%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font size="2">(ii)</font></div>
              </td>
              <td width="3%">&#160;</td>
              <td width="93%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">"Pre-Tax
                      Income" is the Company's income before provision for income
                      taxes for the
                      applicable Bonus
                      Period.</font></div>
                  </div>
                </div>
              </td>
            </tr>

        </table>
      </div>
    </div>
    <div>&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      determination of Pre-Tax Income, EBITDA and the 2.5% Bonus and Additional Bonus
      for any Bonus Period shall be made by the Company&#8217;s then Chief Financial Officer
      in accordance with the financial information presented in the Company&#8217;s
      applicable Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as
      the
      case may be (and the schedules and internal records supporting such filings);
      provided that in making his determination, the Chief Financial Officer shall
      exclude any and all non-cash charges incurred by the Company that were
      attributable to grants of stock options. Any determination of the Chief
      Financial Officer hereunder shall be conclusive and binding upon the Company
      and
      Executive,</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>&#160;</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">provided,
      that if </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(x)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">a
      &#160;Bonus Period ends prior to the end of a fiscal year of the Company, and
      any year-end adjustment is subsequently made that affects the determination
      of
      Pre-Tax Income, EBITDA, the 2.5% Bonus and/or the Additional Bonus for such
      Bonus Period; or</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 72pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(y)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">if
      the
      Company files with the Securities and Exchange Commission an amendment to any
      of
      its filings which includes a restatement of the financial information for any
      Bonus Period that would have the affect of changing Pre-Tax Income, EBITDA,
      the
      2.5% Bonus and/or the Additional Bonus for such Bonus Period,</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
      Company shall promptly give written notice to Executive of any such change,
      setting forth in reasonable detail therein the amount of and basis for such
      change, and (1) if such change involves an increase to any compensation paid
      hereunder, the Company shall pay such increase to Executive concurrently with
      the delivery of such notice; (2) if such change involves a decrease to any
      compensation paid hereunder and was necessitated as a result of an inquiry
      of
      the Commission or was otherwise required by the Commission, Executive shall
      repay the amount of such decrease to the Company promptly, and in any event
      within 60 days, after receipt of such notice; or (3) if such change involves
      a
      decrease to any compensation paid hereunder and was not necessitated as a result
      of an inquiry of the Commission and was not otherwise required by the Commission
      Executive shall forego his right to receive any further remuneration from the
      Company up to the amount of such decrease.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(c)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company shall procure major medical, hospitalization, dental and disability
      insurance for the benefit of Executive and his wife and children, and the
      Company shall pay all premiums and any other costs or expenses incurred to
      maintain such policies in effect during the term of Executive's employment
      hereunder.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">9</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
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        </div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(d)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition to his Base Salary and other compensation provided herein, Executive
      shall be entitled to participate, to the extent he is eligible under the terms
      and conditions thereof, in any stock, stock option or other equity participation
      plan and any profit-sharing, pension, retirement, insurance, medical service
      or
      other employee benefit plan generally available to the executive officers of
      the
      Company, and to receive any other benefits or perquisites generally available
      to
      the executive officers of the Company pursuant to any employment policy or
      practice, which may be in effect from time to time during the Term. Except
      as
      otherwise expressly provided herein, the Company shall be under no obligation
      hereunder to institute or to continue any such employee benefit plan or
      employment policy or practice.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(e)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Executive
      acknowledges hereunder that any and all compensation, bonuses and other benefits
      due him from the Company (and its subsidiaries) to the date hereof (including,
      without limitation, those arising under his December 1, 2001 Employment
      Agreement with the Company, as amended on September 30, 2004) have been paid
      or
      otherwise satisfied in full.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">4.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Stock
      Options</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      By its
      approval of this Agreement, the Company's Board of Directors (or the appropriate
      Committee thereof) has approved the issuance to Executive of, and upon the
      execution of this Agreement, the Company shall issue to the Executive, a
      non-statutory option to acquire 60,000 shares of the Company's Common Stock,
      under and pursuant to the provisions of the Traffix, Inc. Sixth Amended and
      Restated 1996 Employee Incentive Plan (the &#8220;Plan&#8221;), which option shall be for a
      term of ten (10) years, unless otherwise terminated pursuant to the terms of
      such option, the Plan or this Agreement. The Executive&#8217;s right to exercise 50%
      of such option (30,000 shares) shall immediately vest and the Executive&#8217;s right
      to exercise the remaining 50% of such option (30,000 shares) shall vest on
      December 1, 2006.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">5.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Expense
      Allowance</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company shall pay directly, or advance funds to Executive or reimburse Executive
      for, all expenses reasonably incurred by him in connection with the performance
      of his duties hereunder and the business of the Company, upon the submission
      to
      the Company of itemized expense reports, receipts or vouchers in accordance
      with
      its then customary policies and practices.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company shall provide to Executive a suitable automobile or other vehicle for
      his exclusive use and the Company shall pay up to $25,000 of the per annum
      cost
      thereof, including, without limitation, lease payments, insurance premiums,
      repair charges, and maintenance and operating expenses, or if, in lieu thereof,
      Executive uses his own automobile or other vehicle, the Company shall grant
      him
      a monthly allowance in an amount sufficient to pay up to $25,000 per annum
      for
      all such costs therefor.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Location;
      Office</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Except
      for routine travel and temporary accommodation reasonably required to perform
      his services hereunder, Executive shall not be required to perform his services
      hereunder at any location other than the principal executive office of the
      Company, which office shall be located throughout the Term at its location
      on
      the date hereof, or, if relocated, at a location within a distance of 30 miles
      from its location on the date hereof, or at such other office or site to which
      Executive may, in his sole discretion, consent; nor shall he be required to
      relocate his principal residence to, or otherwise to reside at, any location
      specified by the Company. The Company shall provide Executive with suitable
      office space, furnishings and equipment, secretarial and clerical services
      and
      such other facilities and office support as Executive may reasonably
      request.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">10</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">7.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Vacation</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Executive shall be entitled to six (6) weeks paid vacation during each year
      of
      his employment hereunder, such vacation to be taken at such time or times as
      shall be agreed upon by Executive and the Company. Vacation time shall be
      cumulative from year to year, except that Executive shall not be entitled to
      take more than eight weeks vacation during any consecutive 12-month period
      during the Term.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">8.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Key-Man
      Insurance</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      Company shall continue to maintain in full force and effect the Policy (as
      defined in Section 16(c) hereof). The Company shall further have the right
      from
      time to time to purchase, increase, modify or terminate additional insurance
      policies on the life of Executive for the benefit of the Company in such amounts
      as the Company may determine in its sole discretion. In connection therewith,
      Executive shall, at such time or times and at such place or places as the
      Company may reasonably direct, submit himself to such physical examinations
      and
      execute and deliver such documents as the Company may deem necessary or
      appropriate.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">9.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Trade
      Secrets</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Executive shall hold in a fiduciary capacity for the benefit of the Company
      all
      confidential information relating to or concerned with its operations, business
      and affairs, and he shall not, at any time hereafter, use or disclose any such
      information to any person other than to the Company or its designees or except
      as may otherwise be required in connection with the business and affairs of
      the
      Company. The following shall not be deemed &#8220;confidential information&#8221; for
      purposes of this paragraph: (i) information that is generally available to
      the
      public; (ii) information that was not acquired, directly or indirectly and/or
      in
      any manner, from the Company or in his capacity as an employee of the Company;
      or (iii) information that, hereafter, through no act or omission on Executive&#8217;s
      part, becomes information generally available to the public. In the event that
      Executive becomes legally compelled (by deposition, interrogatory, request
      of
      documents, subpoena, civil investigative demand or similar process) to disclose
      any confidential information, the Executive shall provide the Company, with
      prompt prior written notice of such requirement so that the Company may seek
      a
      protective order or other appropriate remedy and/or waive compliance with the
      terms of this paragraph. In the event that such protective order or other remedy
      is not obtained, or the Company waives compliance with the provisions hereof,
      the Executive shall furnish only such portion of the confidential information
      which is legally required to be furnished.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">10.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Intellectual
      Property</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Any
      idea, invention, design, process, system, procedure, improvement, development
      or
      discovery conceived, developed, created or made by Executive, alone or with
      others, during the Term and applicable to the business of the Company, whether
      or not patentable or registrable, shall become the sole and exclusive property
      of the Company. Executive shall disclose the same promptly and completely to
      the
      Company and shall, during the Term or thereafter, (i) execute all documents
      requested by the Company for vesting in the Company the entire right, title
      and
      interest in and to the same, (ii) execute all documents requested by the Company
      for filing and procuring such applications for patents, trademarks, service
      marks or copyrights as the Company, in its sole discretion, may desire to
      prosecute, and (iii) give the Company all assistance it may reasonably require,
      including the giving of testimony in any Proceeding (as hereinafter defined
      in
      Section 32), in order to obtain, maintain and protect the Company's right
      therein and thereto.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">11</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">11.&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Non
      Competition</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(a)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">During
      the Term, and, if his employment terminates for any reason other than by him
      pursuant to Section 14 or by the Company other than as a result of a "For Cause
      Event" pursuant to Section 13, for a further period of one year thereafter,
      Executive shall not, directly or indirectly:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="4%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font size="2">(i)</font></div>
            </td>
            <td width="3%">&#160;</td>
            <td width="93%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">own,
                      control, manage, operate, participate or invest in, or otherwise
                      be
                      connected with, in any manner, any business activity, venture
                      or
                      enterprise which is engaged in any business in the United States
                      and/or
                      Canada in which the Company (or any subsidiary thereof) is
                      currently
                      engaged or is engaged at the time of termination of Executive's
                      employment
                      hereunder, or</font></div>
                  </div>
                </div>
              </div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;

      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="4%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font size="2">(ii)</font></div>
            </td>
            <td width="3%">&#160;</td>
            <td width="93%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">for
                        himself or on behalf of any other person, induce any employee
                        of the
                        Company (or any subsidiary thereof) to leave the employ of
                        the Company (or
                        such subsidiary) or induce any supplier or customer of the
                        Company (or any
                        subsidiary thereof) to either cease doing business or reduce
                        the level of
                        business then being done with the Company (or such
                        subsidiary).</font></div>
                    </div>
                  </div>
                </div>
              </div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;(b)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      provisions of Section 11(a) notwithstanding, Executive may invest his funds
      in
      securities of an issuer if the securities of such issuer are listed for trading
      on a registered securities exchange or actively traded in an over-the-counter
      market and Executive's holdings therein represent less than 1% of the total
      number of shares or principal amount of the securities of such issuer
      outstanding.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;(c)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Executive
      acknowledges that the provisions of this Section, and the period of time,
      geographic area and scope and type of restrictions on his activities set forth
      herein, are reasonable and necessary for the protection of the
      Company.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;12.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Termination
      Upon Disability</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      In the
      event that the Board of Directors determines that the Executive is unable to
      perform his duties hereunder by reason of any disability or incapacity (due
      to
      any physical or mental injury, illness or defect) for an aggregate of 180 days
      in any consecutive 12-month period, the Company shall have the right to
      terminate Executive's employment hereunder within 60 days after the
      180</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><sup>th</sup></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      day of
      his disability or incapacity by giving Executive notice to such effect at least
      30 days prior to the date of termination set forth in such notice, and on such
      date such employment shall terminate. The Board of Directors&#8217; determination
      shall be made after due inquiry, on the basis of convincing evidence presented
      in at least two medical opinions rendered by reputable physicians with
      experience in diagnosing and treating the condition described in the
      opinion.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">12</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;13.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Termination
      for Cause</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;(a)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">In
      addition to any other rights or remedies provided by law or in this Agreement,
      the Company may terminate Executive's employment under this Agreement if (each,
      a &#8220;For Cause Event&#8221;):</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="4%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font size="2">(i)</font></div>
            </td>
            <td width="3%">&#160;</td>
            <td width="93%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
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                        is convicted of, or enters a plea of guilty or nolo contendere
                        (which plea
                        is not withdrawn prior to its approval by the court) to,
                        a felony offense
                        and either Executive fails to perfect an appeal of such conviction
                        prior
                        to the expiration of the maximum period of time within which,
                        under
                        applicable law or rules of court, such appeal may be perfected
                        or, if
                        Executive does perfect such an appeal, his conviction of
                        a felony offense
                        is sustained on appeal;
                        or</font></div>
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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

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            <td width="3%">&#160;</td>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">the
                        Company's Board of Directors determines, after due inquiry,
                        based on
                        convincing evidence, that Executive
                        has:</font></div>
                    </div>
                  </div>
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            </td>
          </tr>

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    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

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            <td width="8%">
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            </td>
            <td width="3%">&#160;</td>
            <td width="89%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">com</font>mitted
                          fraud against, or embezzled or misappropriated funds or
                          other assets of,
                          the Company (or any subsidiary
                          thereof);</font></div>
                      </div>
                    </div>
                  </div>
                </div>
              </div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="8%">
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            </td>
            <td width="3%">&#160;</td>
            <td width="89%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">violated,
                          or knowingly caused the Company (or any subsidiary thereof)
                          or any
                          officer, employee or other agent thereof, to violate, any
                          material law,
                          regulation or ordinance or any material rule, regulation,
                          policy or
                          practice established by the Company's Board of
                          Directors;</font></div>
                      </div>
                    </div>
                  </div>
                </div>
              </div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="8%">
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            </td>
            <td width="3%">&#160;</td>
            <td width="89%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">willfully,
                          or because of gross or persistent negligence, (A) failed
                          properly to
                          perform his duties hereunder or (B) acted in a manner detrimental
                          to, or
                          adverse to the interests of, the Company;
                          or</font></div>
                      </div>
                    </div>
                  </div>
                </div>
              </div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="8%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right"><font size="2">(D)</font></div>
            </td>
            <td width="3%">&#160;</td>
            <td width="89%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">violated,
                          or failed to perform or satisfy any material covenant,
                          condition or
                          obligation required to be performed or satisfied by Executive
                          hereunder;</font></div>
                      </div>
                    </div>
                  </div>
                </div>
              </div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">and
      that,
      in the case of any violation or failure referred to in clause (B), (C) or (D)
      of
      this paragraph (ii) of Section 13(a), such violation or failure has caused,
      or
      is reasonably likely to cause, the Company to suffer or incur a substantial
      casualty, loss, penalty, expense or other liability or cost.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 63pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">(b)&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;&#160;
      </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company may effect such termination for cause by giving Executive notice to
      such
      effect, setting forth in reasonable detail the factual basis for such
      termination, at least fourteen (14) days prior to the date of termination set
      forth therein; provided however that Executive may avoid such termination if
      Executive, prior to the date of termination set forth in such notice, cures
      or
      explains to the reasonable satisfaction of the Company's Board of Directors
      the
      factual basis for termination set forth therein.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">14.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Termination
      by Executive for Good Reason</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      In
      addition to any other rights or remedies provided by law or in this Agreement,
      Executive may terminate his employment hereunder if (i) the Company violates,
      or
      fails to perform or satisfy any material covenant, condition or obligation
      required to be performed or satisfied by it hereunder, or (ii) as a result
      of
      any action or failure to act by the Company, there is a material change in
      the
      nature or scope of the duties, obligations, rights or powers of Executive's
      employment, by giving the Company notice to such effect, setting forth in
      reasonable detail the factual basis for such termination, at least ten (10)
      days
      prior to the date of termination set forth therein; </font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><em>provided
      however</em></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">
      that the
      Company may avoid such termination if it, prior to the date of termination
      set
      forth in such notice, cures or explains to the reasonable satisfaction of
      Executive the factual basis for termination set forth therein.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">13</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 36pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">15.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Voluntary
      Termination by Executive</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      In
      addition to any other rights or remedies provided by law or in this Agreement,
      at any time after September 2, 2006, Executive may terminate his employment
      hereunder by giving the Company written notice to such effect, which termination
      shall not take effect until the earlier to occur of (i) ninety (90) days after
      the date of such written notice, or (ii) either November 30, 2008 (if there
      has
      occurred an Exercise of the Extension Option) or November 30, 2007 (if there
      has
      not occurred an Exercise of the Extension Option). The termination by Executive
      of his employment for Good Reason pursuant to Section 14 of this Agreement
      shall
      not constitute or be deemed to constitute for any purpose a "voluntary
      termination" of his employment.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 27pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">16.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Compensation
      and Benefits upon Termination</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;(a)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Upon
      termination of Executive's employment hereunder, he shall be entitled to
      receive, in any case, any Base Salary due to him pursuant to Section 3 in
      respect of his employment prior to the Termination Date.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;(b)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      Executive is discharged as a result of a "For Cause Event" pursuant to Section
      13, except for the payment of any amount required to be made by Section 16(a),
      from and after the Termination Date, the Company shall have no further
      obligation to Executive hereunder, including without limitation, any obligation
      pursuant to Section 18.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;(c)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      the
      Executive's employment is terminated by him pursuant to Section 14 or by the
      Company other than as a result of a "For Cause Event" pursuant to Section 13
      (other than termination for disability pursuant to Section 12), he shall be
      entitled to (i) receive an amount equal to the sum of (A) any unpaid Base Salary
      due the Executive through either November 30, 2008 (if there has occurred an
      Exercise of the Extension Option) or November 30, 2007 (if there has not
      occurred an Exercise of the Extension Option); plus (B) a one-time, lump-sum
      payment of $575,000; plus (C) his 2.5% Bonus and his Additional Bonus for the
      last Bonus Period ending before the Termination Date; and (ii) cause the Company
      to transfer the ownership of the Policy (as defined below) to Executive or
      to
      his designee (with all premiums thereon and other costs thereof paid to the
      Termination Date), whereupon Executive shall have the right to change the
      beneficiary of the Policy and shall become obligated to then pay all premiums
      thereon and other costs thereof. For purposes of this Section 16, the &#8220;Policy&#8221;
shall mean that certain $1 million key-man life insurance policy maintained
      by
      the Company as of the date hereof on the life of the Executive. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
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      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">14</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;(d)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      the
      Executive's employment is terminated by the Company for disability pursuant
      to
      Section 12, in addition to any rights granted the Executive under any disability
      policy maintained by the Company for the Executive&#8217;s benefit, Executive shall be
      entitled to (i) receive a one-time, lump-sum payment of $575,000, plus his
      2.5%
      Bonus and his Additional Bonus for the last Bonus Period ending before the
      Termination Date; and (ii) cause the Company to transfer the ownership of the
      Policy to the Executive or to his designee (with all premiums thereon and other
      costs thereof paid to the Termination Date), whereupon Executive shall have
      the
      right to change the beneficiary of the Policy and shall become obligated to
      then
      pay all premiums thereon and other costs thereof. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;(e)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[Intentionally
      Omitted] </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;(f)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      the
      Executive&#8217;s employment terminates due to the scheduled expiration of the Term
      (i.e. either November 30, 2008 (if there has occurred an Exercise of the
      Extension Option) or November 30, 2007 (if there has not occurred an Exercise
      of
      the Extension Option)), or if the Executive voluntarily terminates his
      employment pursuant to Section 15 and if at the time Executive gives the Company
      the notice of termination referred to therein the Company has not given to
      Executive a notice of termination upon his disability pursuant to Section 12
      or
      as a result of a "For Cause Event" pursuant to Section 13, the Executive shall
      (i) in partial consideration for agreeing to assume consulting obligations
      for
      the Company (as set forth in clause (iii), below), be entitled to receive a
      one-time, lump-sum payment of $250,000; and (ii) be entitled to receive his
      2.5%
      Bonus and his Additional Bonus for the last Bonus Period ending before the
      Termination Date; and (iii) become a consultant to the Company for a period
      of
      three (3) years pursuant to which he shall make himself reasonably available
      to
      assist the then Chief Executive Officer of the Company</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><strong>&#160;</strong></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">by
      telephone or in person up to 1 day per week (subject to the Executive&#8217;s
      availability, as may be limited by his other business and personal interests),
      and for which he shall be paid a consulting fee of $108,334 per annum (to be
      paid in substantially equal installments no less often than once per month);
      (iv) for the term of his consultancy, be entitled to maintain an office either
      at the Company's offices and receive secretarial and clerical services, all
      at
      the Company's expense, or, at Executive's option, if the Company is not
      maintaining such offices at its place of business at which Executive performed
      his services at the Termination Date, then the Company shall reimburse the
      Executive up to $25,000 per annum for the cost of his maintaining a comparable
      office, secretarial and clerical services at such other location selected by
      Executive; (v) for the term of his consultancy, be entitled to receive from
      the
      Company major medical, hospitalization, dental and disability insurance for
      the
      benefit of Executive and his wife and children, and the Company shall pay all
      premiums and any other costs or expenses incurred to maintain such policies
      in
      effect for such period of consultancy; and (vi) shall have the right to cause
      the Company to transfer the ownership of the Policy to the Executive (with
      all
      premiums thereon and other costs thereof paid to the Termination Date),
      whereupon Executive shall have the right to change the beneficiary of the Policy
      and shall become obligated to then pay all premiums thereon and other costs
      thereof . </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;(g)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">If
      the
      Executive dies during the Term, and if at the time of death the Company has
      not
      given to Executive a notice of termination upon his disability pursuant to
      Section 12 or as a result of a "For Cause Event" pursuant to Section 13, the
      Company shall deliver to the Executive&#8217;s estate a one-time, lump sum payment of
      $500,000, payable from the proceeds of the Policy. The Company hereby undertakes
      that upon the Executive&#8217;s death it shall make an immediate and diligent effort
      to collect any proceeds payable under the Policy.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">15</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
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      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;(h)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Any
      amount payable to Executive (or his estate) upon termination of his employment
      hereunder shall be paid promptly, and in any event within thirty (30) days,
      after the Termination Date, or, if indeterminable at such time, within thirty
      (30) days after the amount of same is able to be determined; provided, however,
      that any amounts due under clause (g) of this Section 16 shall be paid to the
      Executive&#8217;s estate no later than thirty (30) days after the date the Company has
      received the proceeds payable under the Policy. </font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;(i)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Executive
      shall have no obligation hereunder to seek or to accept any other employment
      after the Termination Date or otherwise to mitigate the damages sustained by
      reason of his wrongful termination. No compensation or other amount received
      or
      receivable by Executive on account of any employment or engagement after the
      Termination Date shall be offset against or deducted from any payment required
      to be made by this Section 16 .</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">&#160;</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;(j)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Executive
      shall be entitled to receive from the Company as a result of the termination
      of
      his employment hereunder only those payments and other consideration set forth
      herein. If the Executive&#8217;s employment is deemed to have been wrongfully
      terminated hereunder, the Executive&#8217;s sole remedy shall be to receive the
      payments and other consideration provided for in this Agreement as liquidated
      damages, it being agreed that the Executive&#8217;s damages in case of the Company&#8217;s
      default hereunder might be impossible to ascertain and that such payments and
      other consideration constitute a fair and reasonable amount of damages under
      the
      circumstances and are not a penalty.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;17.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">[Intentionally
      Omitted]</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;18.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Other
      Termination Provisions</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;(a)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Following
      the Termination Date, the Company shall continue to indemnify Executive, and
      hold him harmless from, any loss, damages, liability, obligation or expense
      (including, without limitation, legal fees) that he may suffer or incur in
      connection with any judgment, claim made or Proceeding relating to his service
      as a director, officer, employee or agent of the Company (or any subsidiary
      thereof) to the same extent and in same manner as the Company shall be obligated
      so to indemnify Executive immediately prior to the Termination
      Date.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><br></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;(b)<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">The
      Company shall continue to maintain for the benefit of Executive directors'
      and
      officers' liability insurance providing coverage at least as favorable to
      Executive (including with respect to limits of liability, exclusions, and
      deductible and retention amounts) as that in effect on the Termination
      Date.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">16</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;</font></font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;19.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Notices</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Any
      notice or demand required or permitted to be given or made hereunder to or
      upon
      either party hereto shall be deemed to have been duly given or made for all
      purposes if (a) in writing and sent by (i) messenger or an overnight courier
      service against receipt, or (ii) certified or registered mail, postage paid,
      return receipt requested, or (b) sent by telegram, telecopy, telex or similar
      electronic means, provided that a written copy thereof is sent on the same
      day
      by postage-paid first-class mail, to such party at the following
      address:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;to
      the
      Company at:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="4%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
            </td>
            <td width="3%">&#160;</td>
            <td width="93%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">One
                          Blue Hill
                          Plaza</font></font></div>
                      </div>
                    </div>
                  </div>
                </div>
              </div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="4%">
            </td>
            <td width="3%">
            </td>
            <td width="93%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pearl
                          River, New York
                          10965</font></div>
                      </div>
                    </div>
                  </div>
                </div>
              </div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="4%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
            </td>
            <td width="3%">&#160;</td>
            <td width="93%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Attn:
                          President</font></font></div>
                      </div>
                    </div>
                  </div>
                </div>
              </div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

          <tr bgcolor="white">
            <td width="4%">
            </td>
            <td width="3%">&#160;</td>
            <td width="93%">
              <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fax:
                          (845)
                          820-1717</font></font></div>
                      </div>
                    </div>
                  </div>
                </div>
              </div>
            </td>
          </tr>

      </table>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;with
      a copy
      to:</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
      <div>
        <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

            <tr bgcolor="white">
              <td width="4%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td width="3%">&#160;</td>
              <td width="93%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Feder,
                            Kaszovitz, Isaacson,
                            Weber,</font></font></font></div>
                        </div>
                      </div>
                    </div>
                  </div>
                </div>
              </td>
            </tr>

        </table>
      </div>
      <div align="left">
        <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

            <tr bgcolor="white">
              <td width="4%">
              </td>
              <td width="3%">
              </td>
              <td width="93%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
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                            Bass &amp; Rhine
                            LLP</font></font></div>
                        </div>
                      </div>
                    </div>
                  </div>
                </div>
              </td>
            </tr>

        </table>
      </div>
      <div align="left">
        <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

            <tr bgcolor="white">
              <td width="4%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td width="3%">&#160;</td>
              <td width="93%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">23rd
                            Floor</font></font></font></div>
                        </div>
                      </div>
                    </div>
                  </div>
                </div>
              </td>
            </tr>

        </table>
      </div>
      <div align="left">
        <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

            <tr bgcolor="white">
              <td width="4%">
              </td>
              <td width="3%">&#160;</td>
              <td width="93%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">750
                            Lexington
                            Avenue</font></font></font></div>
                        </div>
                      </div>
                    </div>
                  </div>
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              <td width="3%">&#160;</td>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">New
                            York, New York
                            10022-1200</font></font></font></div>
                        </div>
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                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Attn:
                            Saul Kaszovitz,
                            Esq.</font></font></div>
                        </div>
                      </div>
                    </div>
                  </div>
                </div>
              </td>
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                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fax:
                            (212)
                            888-7776</font></font></font></div>
                        </div>
                      </div>
                    </div>
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      <div align="left">&#160;</div>
      <div align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;to
        Executive
        at:</font></div>
      <div align="left">&#160;</div>
    </div>
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      <div>
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              </td>
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                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">6
                            Glen Eagles
                            Court</font></font></font></div>
                        </div>
                      </div>
                    </div>
                  </div>
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      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

            <tr bgcolor="white">
              <td width="4%">
              </td>
              <td width="3%">
              </td>
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                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Pearl
                            River, New York
                            10965</font></div>
                        </div>
                      </div>
                    </div>
                  </div>
                </div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">
        <table bgcolor="white" cellpadding="0" cellspacing="0" width="100%">

            <tr bgcolor="white">
              <td width="4%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="right">&#160;</div>
              </td>
              <td width="3%">&#160;</td>
              <td width="93%">
                <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                  <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                    <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                      <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                        <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left">
                          <div style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Fax:
                            __________________</font></font></div>
                        </div>
                      </div>
                    </div>
                  </div>
                </div>
              </td>
            </tr>

        </table>
      </div>
      <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">or
      such
      other address as either party hereto may at any time, or from time to time,
      direct by notice given to the other party in accordance with this Section.
      The
      date of giving or making of any such notice or demand shall be, in the case
      of
      clause (a)(i), the date of the receipt; in the case of clause (a)(ii), five
      business days after such notice or demand is sent; and, in the case of clause
      (b), the business day next following the date such notice or demand is
      sent.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;20.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Amendment</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Except
      as otherwise provided herein, no amendment of this Agreement shall be valid
      or
      effective, unless in writing and signed by or on behalf of the parties
      hereto.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;21.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Waiver</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      No
      course of dealing or omission or delay on the part of either party hereto in
      asserting or exercising any right hereunder shall constitute or operate as
      a
      waiver of any such right. No waiver of any provision hereof shall be effective,
      unless in writing and signed by or on behalf of the party to be charged
      therewith. No waiver shall be deemed a continuing waiver or waiver in respect
      of
      any other or subsequent breach or default, unless expressly so stated in
      writing.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;22.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Governing
      Law</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      This
      Agreement shall be governed by, and interpreted and enforced in accordance
      with,
      the laws of the State of New York without regard to principles of choice of
      law
      or conflict of laws.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
        <div id="GLFTR" style="WIDTH: 100%" align="left">
        </div>
      </div>
      <div id="PN" style="PAGE-BREAK-AFTER: always">
        <div style="WIDTH: 100%; TEXT-ALIGN: center"><font style="DISPLAY: inline; FONT-SIZE: 8pt; FONT-FAMILY: Times New Roman">17</font></div>
        <div style="WIDTH: 100%; TEXT-ALIGN: center">
          <hr style="COLOR: black" noshade size="2">
        </div>
      </div>
      <div id="HDR">
        <div id="GLHDR" style="WIDTH: 100%" align="right">
        </div>
      </div>
    </div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;23.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Dispute
      Resolution</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Any and
      all disputes which arise out of this Agreement, including, but not limited
      to,
      disputes concerning the performance, enforcement, and/or interpretation of
      this
      Agreement, shall be resolved in New York City pursuant to arbitration conducted
      in accordance with the rules of the Arbitration Association of America.
</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;24.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Remedies</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      In the
      event of any actual or prospective breach or default by either party hereto,
      the
      other party shall be entitled to equitable relief, including remedies in the
      nature of rescission, injunction and specific performance. All remedies
      hereunder are cumulative and not exclusive, and nothing herein shall be deemed
      to prohibit or limit either party from pursuing any other remedy or relief
      available at law or in equity for such actual or prospective breach or default,
      including the recovery of damages.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;25.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Severability</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      provisions hereof are severable and in the event that any provision of this
      Agreement shall be determined to be invalid or unenforceable in any respect,
      the
      remaining provisions hereof shall not be affected, but shall remain in full
      force and effect, and any invalid or unenforceable provision shall be deemed,
      without further action on the part of the parties hereto, amended and limited
      to
      the extent necessary to render the same valid and enforceable.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;26.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Counterparts</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original and which together shall constitute one and the same
      agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;27.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Binding
      Effect</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors and permitted assigns. This Agreement is not
      intended, and shall not be deemed, to create or confer any right or interest
      for
      the benefit of any person not a party hereto.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;28.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Titles
      and Captions</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      titles and captions of the Articles and Sections of this Agreement are for
      convenience of reference only and do not in any way define or interpret the
      intent of the parties or modify or otherwise affect any of the provisions
      hereof.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;29.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>Grammatical
      Conventions</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Whenever the context so requires, each pronoun or verb used herein shall be
      construed in the singular or the plural sense and each capitalized term defined
      herein and each pronoun used herein shall be construed in the masculine,
      feminine or neuter sense.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;30.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>References</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      The
      terms "herein," "hereto," "hereof," "hereby," and "hereunder," and other terms
      of similar import, refer to this Agreement as a whole, and not to any Article,
      Section or other part hereof.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;31.<font id="TAB2" style="LETTER-SPACING: 9pt">&#160;&#160;&#160;</font>&#160;</font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman"><u>No
      Presumptions</u></font><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">.
      Each
      party hereto acknowledges that it has had an opportunity to consult with counsel
      and has participated in the preparation of this Agreement. No party hereto
      is
      entitled to any presumption with respect to the interpretation of any provision
      hereof or the resolution of any alleged ambiguity herein based on any claim
      that
      the other party hereto drafted or controlled the drafting of this
      Agreement.</font></div>
    <div style="DISPLAY: block; MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; LINE-HEIGHT: 1.25; MARGIN-RIGHT: 0pt" align="left">&#160;</div>
    <div id="PGBRK" style="MARGIN-LEFT: 0pt; TEXT-INDENT: 0pt; MARGIN-RIGHT: 0pt">
      <div id="FTR">
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      to
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      arrangement relating thereto, written or oral, if any, which shall terminate
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      WITNESS
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      year first above written.</font></div>
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            <td colspan="2"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">TRAFFIX,
              INC.</font></td>
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            <td><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: ">By:&#160;&#160;</font></td>
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              <div><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">Name:
                Andrew Stollman</font></div>
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              <hr style="COLOR: black" align="left" noshade size="2" width="80%"><font style="DISPLAY: inline; FONT-SIZE: 10pt; FONT-FAMILY: Times New Roman">JEFFREY
              L. SCHWARTZ</font></td>
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{"company-data": {"conformed-name": "TRAFFIX INC", "cik": "0001000297", "assigned-sic": "7389", "irs-number": "223322277", "state-of-incorporation": "DE", "fiscal-year-end": "1130"}, "filing-values": {"form-type": "8-K", "act": "34", "file-number": "000-27046", "film-number": "06684256"}, "business-address": {"street1": "ONE BLUE HILL PLAZA", "street2": "PO BOX 1665", "city": "PEARL RIVER", "state": "NY", "zip": "10965", "phone": "9146201212"}, "mail-address": {"street1": "ONE BLUE HILL PLZ", "street2": "PO BOX 1665", "city": "PEARL RIVER", "state": "NY", "zip": "10965"}, "former-company": [{"former-conformed-name": "QUINTEL COMMUNICATIONS INC", "date-changed": "19981015"}, {"former-conformed-name": "QUINTEL ENTERTAINMENT INC", "date-changed": "19950911"}]}
SECURITIES
      AND EXCHANGE COMMISSION
WASHINGTON,
      D.C. 20549
_____
FORM
      8-K
Current
      Report
Pursuant
      to Section 13 or 15(d)
of
      the
      Securities Exchange Act of 1934
Date
      of
      Report (Date of earliest event reported):
March
      14,
      2006 (March 10, 2006)
TRAFFIX,
      INC.
(Exact
      Name of registrant as specified in its charter)
Delaware
(State
                or other jurisdiction of incorporation)
0-27046
(Commission
                File Number)
22-3322277
(I.R.S.
                Employer
Identification
                No.)
One
                Blue Hill Plaza, Pearl River, New York
(Address
                of principal
executive
                offices)
10965
(Zip
                Code)
Registrant's
      telephone number, including area code: (845) 620-1212
Check
      the
      appropriate box below if the Form 8-K filing is intended to simultaneously
      satisfy the filing obligation of the registrant under any of the following
      provisions (see General Instruction A.2. below):
o
Written communications
      pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
o
Soliciting
      material pursuant to Rule 14a-12 under the Exchange Act (17 CFR
      240.14a-12)
o
Pre-commencement
      communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR
      240.14d-2(b))
o
Pre-commencement
      communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR
      240.13e-4(c))
TRAFFIX,
      INC.
INDEX
      TO FORM 8-K
FILED
      WITH THE SECURITIES AND EXCHANGE COMMISSION
MARCH
      14, 2006
ITEMS
      IN FORM 8-K
Page
Facing
                  Page
1
Item
                  1.01
Entry
                  into a Material Definitive Agreement
3
Item
                  9.01
Financial
                  Statements and Exhibits
4
Signatures
5
Exhibit
                  Index
6
2
Item
      1.01.
Entry
      into a Material Definitive Agreement.
(a)
We
      entered into an employment agreement on March 10, 2006, effective as of
      December 1, 2005, with Jeffrey L. Schwartz (the "Agreement"). The Agreement
      expires on November 30, 2007; provided, however, that if our Pre-Tax Income
      (as defined in the Agreement) for the 21 months ending August 31, 2007 is at
      least $4.2 million, Mr. Schwartz has the right to extend the term to November
      30, 2008 (provided he exercises that option no later than November 1, 2007).
(b)
Pursuant
      to the Agreement, (i) Mr. Schwartz is employed as our Chairman and
      Chief Executive Officer; (ii) Mr. Schwartz will be paid a base salary
      of $605,000 per annum; (iii) Mr. Schwartz will receive bonuses upon
      our Company's achievement of certain pre-tax income milestones, as well as
      discretionary bonuses subject to approval of our Board of Directors;
      (iv) Mr. Schwartz was issued on March 10, 2006 a 10 year option
      to acquire 60,000 shares of our Common Stock at an exercise price of $5.44
      per
      share, which option vests as follows:
(x)
         30,000 shares vested immediately; and
(
y
)  
      30,000 shares will vest on December 1, 2006;
(vi)
      we
      will pay for all expenses reasonably incurred by Mr. Schwartz in connection
      with
      the performance of his duties, including paying up to $25,000 per year towards
      the total per annum costs of an automobile; (vii) Mr. Schwartz agreed not
      to compete or engage in a business competitive with our business during the
      term
      of the Agreement and for a period of one year thereafter; (viii) if
      Mr. Schwartz's employment is terminated other than as a result of a "For
      Cause Event" (as defined in the Agreement) or if he resigns for "Good Reason"
(as defined in the Agreement), he will be entitled to receive additional
      compensation and other consideration, all as more fully described in the
      Agreement; and (ix) at any time after September 2, 2006, Mr. Schwartz may
      terminate the Agreement, whereupon he will receive additional compensation
      and
      other consideration, as summarized below (and as more fully described in the
      Agreement).
(c)
The
      Agreement provides that, if the Agreement terminates due to the scheduled
      expiration of the term, or if Mr. Schwartz voluntarily terminates his employment
      after September 2, 2006, Mr. Schwartz will (i) in partial consideration for
      agreeing to assume consulting obligations for us (as set forth in clause (iii),
      below), be entitled to receive a one-time, lump-sum payment of $250,000; (ii)
      be
      entitled to receive those bonuses which he was otherwise entitled to receive
      for
      the last bonus period ending before the termination of the Agreement; (iii)
      become a consultant to our Company for a period of three years, for which he
      will be paid a consulting fee of $108,334 per annum; and (iv) be entitled to
      receive additional consideration and compensation, all as more fully described
      in the Agreement.
The
      foregoing is merely a summary of the material terms of the Agreement. For a
      complete description, a copy of the Agreement is annexed hereto in its entirety
      as an exhibit.
3
Item
        9.01.
Financial
        Statements and Exhibits.
(c)
Exhibits
Exhibit
Number
Description
99.1*
December
                1, 2005 Employment Agreement by and between the Registrant and Jeffrey
                L.
                Schwartz
---------------------------------
*
Filed
      herewith
4
SIGNATURES
Pursuant
      to the requirements of the Securities Exchange Act of 1934, the Registrant
      has
      duly caused this report to be signed on its behalf by the undersigned hereunto
      duly authorized.
Dated:
              March 14, 2006
TRAFFIX,
              INC.
By:
/s/
              Daniel Harvey
Daniel
              Harvey
Chief
              Financial Officer
5
Exhibit
      Index
Exhibit
Number
Description
99.1*
December
                1, 2005 Employment Agreement by and between the Registrant and Jeffrey
                L.
                Schwartz
---------------------------------
*
Filed
        herewith
6
Exhibit
      99.1
EMPLOYMENT
      AGREEMENT
EMPLOYMENT
      AGREEMENT dated as of December 1, 2005 by and between TRAFFIX, INC., a Delaware
      corporation (the "Company"), and JEFFREY L. SCHWARTZ ("Executive").
W
      I T N E
      S S E T H:
WHEREAS,
      the Company desires to employ Executive on the terms and subject to the
      conditions hereinafter set forth, and Executive desires so to be
      employed;
NOW,
      THEREFORE, in consideration of the premises and the mutual covenants hereinafter
      set forth, the parties agree as follows:
1.
Offices
      and Duties
.
      The
      Company hereby employs Executive as a full-time employee during the Term (as
      hereinafter defined) to serve as the Company's Chief Executive Officer and
      to
      perform such executive and supervisory duties on behalf of the Company as the
      Company's Board of Directors
(or
      the
      appropriate Committee thereof)
may from
      time to time reasonably direct. By its approval of this Agreement, the Company's
      Board of Directors (or the appropriate Committee thereof) shall also agree
      to
      elect Executive to serve as the Company's Chairman. Executive hereby accepts
      such employment and agrees that throughout the Term he shall faithfully,
      diligently and to the best of his ability, in furtherance of the business of
      the
      Company, perform the duties assigned to him and shall devote substantially
      all
      of his business time and attention to the business and affairs of the Company.
      Executive shall at all times be subject to the direction and control of the
      Company's Board of Directors, and observe and comply with such rules,
      regulations, policies and practices as the Company's Board of Directors may
      from
      time to time establish.
2.
Term
      of Full-Time Employment
.
(a)
The
      employment of Executive as a full-time employee hereunder shall commence on
      the
      date hereof and continue for a term of two (2) years ending on November 30,
      2007, unless there has been an Exercise of the Extension Option, whereupon
      it
      shall continue to November 30, 2008, subject in all respects to earlier
      termination upon the terms and conditions provided elsewhere herein (the
      "Term"). As used herein, "Termination Date" means the last day of the term of
      full-time employment (whether by virtue of the scheduled expiration of this
      Agreement or its accelerated termination in accordance with the provisions
      hereof).
(b)
An
      "Exercise of the Extension Option" shall have occurred if (i) the Company's
      Pre-Tax Income (as defined and as calculated in accordance with Section 3(b)
      hereof) for the 21 months ending August 31, 2007 was at least $4.2 million;
      and
      (ii) the Executive has notified the Company in writing no later than November
      1,
      2007 that he elects to extend the Term to November 30, 2008.
7
3.
Compensation
.
(a)
As
      compensation for his services hereunder, the Company shall pay to Executive
      during the Term:
(i)
a
                base salary at the rate of $605,000 per annum (the "Base Salary"),
                such
                Base Salary to be paid in substantially equal installments no less
                often
                than twice monthly;
(ii)
a
                bonus (the "2.5% Bonus") in respect of each Bonus Period (as hereinafter
                defined), payable within ninety (90) days after the end of such Bonus
                Period, in an amount equal to the lesser of (A) $125,000 (or such
                lesser
                pro rata amount if the Bonus Period is less than a full fiscal year)
                or
                (B) two and one-half percent (2.5%) of Pre-Tax Income (as hereinafter
                defined); and
(iii)
an
                additional bonus (the "Additional Bonus") in respect of each Bonus
                Period,
                payable within ninety (90) days after the end of such Bonus Period,
                as
                follows:
(A)
$75,000.00
        (or such lesser pro rata amount if the Bonus Period is less than a full fiscal
        year), if Pre-Tax Income for the Bonus Period is between 150% and 200% of
        the
        greater of (x) Pre-Tax Income for the comparable period from the Company's prior
        fiscal year, or (y) $3.4 million (or such lesser pro rata amount if the Bonus
        Period is less than a full fiscal year); or
(B)
      $100,000.00 (or such lesser pro rata amount if the Bonus Period is less than
      a
      full fiscal year), if (x) Pre-Tax Income for the Bonus Period is between 200%
      and 250% of the greater of (x) Pre-Tax Income for the comparable period from
      the
      Company's prior fiscal year, or (y) $3.4 million (or such lesser pro rata amount
      if the Bonus Period is less than a full fiscal year); or
(C)
      $200,000.00 (or such lesser pro rata amount if the Bonus Period is less than
      a
      full fiscal year), if (x) Pre-Tax Income for the Bonus Period is two hundred
      fifty (250%) percent or more than the greater of (x) Pre-Tax Income for the
      comparable period from the Company's prior fiscal year, or (y) $3.4 million (or
      such lesser pro rata amount if the Bonus Period is less than a full fiscal
      year);
but
      in no
      event shall the Additional Bonus payable to Executive with respect to any Bonus
      Period exceed five (5%) percent of the EBITDA for such Bonus Period;
      and
(iv)
such
                  additional incentive or bonus compensation as the Company's Board
                  of
                  Directors (or the appropriate Committee thereof) may from time
                  to time
                  determine.
8
(b)
For
      the
      purposes of paragraph 3(a):
(i)
A
                    "Bonus Period" is either a fiscal year of the Company ending
                    during the
                    Term, or, if the Term ends on a day other than the last day of
                    a fiscal
                    year of the Company (i.e. November 30), the portion of such fiscal
                    year
                    ending on the last day of the Company's last completed fiscal quarter
                    (i.e. February 28/29, May 31 or August 31);
                    and
(ii)
"Pre-Tax
                      Income" is the Company's income before provision for income
                      taxes for the
                      applicable Bonus
                      Period.
The
      determination of Pre-Tax Income, EBITDA and the 2.5% Bonus and Additional Bonus
      for any Bonus Period shall be made by the Company's then Chief Financial Officer
      in accordance with the financial information presented in the Company's
      applicable Annual Report on Form 10-K or Quarterly Report on Form 10-Q, as
      the
      case may be (and the schedules and internal records supporting such filings);
      provided that in making his determination, the Chief Financial Officer shall
      exclude any and all non-cash charges incurred by the Company that were
      attributable to grants of stock options. Any determination of the Chief
      Financial Officer hereunder shall be conclusive and binding upon the Company
      and
      Executive,
provided,
      that if
(x)
a
       Bonus Period ends prior to the end of a fiscal year of the Company, and
      any year-end adjustment is subsequently made that affects the determination
      of
      Pre-Tax Income, EBITDA, the 2.5% Bonus and/or the Additional Bonus for such
      Bonus Period; or
(y)
if
      the
      Company files with the Securities and Exchange Commission an amendment to any
      of
      its filings which includes a restatement of the financial information for any
      Bonus Period that would have the affect of changing Pre-Tax Income, EBITDA,
      the
      2.5% Bonus and/or the Additional Bonus for such Bonus Period,
the
      Company shall promptly give written notice to Executive of any such change,
      setting forth in reasonable detail therein the amount of and basis for such
      change, and (1) if such change involves an increase to any compensation paid
      hereunder, the Company shall pay such increase to Executive concurrently with
      the delivery of such notice; (2) if such change involves a decrease to any
      compensation paid hereunder and was necessitated as a result of an inquiry
      of
      the Commission or was otherwise required by the Commission, Executive shall
      repay the amount of such decrease to the Company promptly, and in any event
      within 60 days, after receipt of such notice; or (3) if such change involves
      a
      decrease to any compensation paid hereunder and was not necessitated as a result
      of an inquiry of the Commission and was not otherwise required by the Commission
      Executive shall forego his right to receive any further remuneration from the
      Company up to the amount of such decrease.
(c)
The
      Company shall procure major medical, hospitalization, dental and disability
      insurance for the benefit of Executive and his wife and children, and the
      Company shall pay all premiums and any other costs or expenses incurred to
      maintain such policies in effect during the term of Executive's employment
      hereunder.
9
(d)
In
      addition to his Base Salary and other compensation provided herein, Executive
      shall be entitled to participate, to the extent he is eligible under the terms
      and conditions thereof, in any stock, stock option or other equity participation
      plan and any profit-sharing, pension, retirement, insurance, medical service
      or
      other employee benefit plan generally available to the executive officers of
      the
      Company, and to receive any other benefits or perquisites generally available
      to
      the executive officers of the Company pursuant to any employment policy or
      practice, which may be in effect from time to time during the Term. Except
      as
      otherwise expressly provided herein, the Company shall be under no obligation
      hereunder to institute or to continue any such employee benefit plan or
      employment policy or practice.
(e)
Executive
      acknowledges hereunder that any and all compensation, bonuses and other benefits
      due him from the Company (and its subsidiaries) to the date hereof (including,
      without limitation, those arising under his December 1, 2001 Employment
      Agreement with the Company, as amended on September 30, 2004) have been paid
      or
      otherwise satisfied in full.
4.
Stock
      Options
.
      By its
      approval of this Agreement, the Company's Board of Directors (or the appropriate
      Committee thereof) has approved the issuance to Executive of, and upon the
      execution of this Agreement, the Company shall issue to the Executive, a
      non-statutory option to acquire 60,000 shares of the Company's Common Stock,
      under and pursuant to the provisions of the Traffix, Inc. Sixth Amended and
      Restated 1996 Employee Incentive Plan (the "Plan"), which option shall be for a
      term of ten (10) years, unless otherwise terminated pursuant to the terms of
      such option, the Plan or this Agreement. The Executive's right to exercise 50%
      of such option (30,000 shares) shall immediately vest and the Executive's right
      to exercise the remaining 50% of such option (30,000 shares) shall vest on
      December 1, 2006.
5.
Expense
      Allowance
.
(a)
The
      Company shall pay directly, or advance funds to Executive or reimburse Executive
      for, all expenses reasonably incurred by him in connection with the performance
      of his duties hereunder and the business of the Company, upon the submission
      to
      the Company of itemized expense reports, receipts or vouchers in accordance
      with
      its then customary policies and practices.
(b)
The
      Company shall provide to Executive a suitable automobile or other vehicle for
      his exclusive use and the Company shall pay up to $25,000 of the per annum
      cost
      thereof, including, without limitation, lease payments, insurance premiums,
      repair charges, and maintenance and operating expenses, or if, in lieu thereof,
      Executive uses his own automobile or other vehicle, the Company shall grant
      him
      a monthly allowance in an amount sufficient to pay up to $25,000 per annum
      for
      all such costs therefor.
6.
Location;
      Office
.
      Except
      for routine travel and temporary accommodation reasonably required to perform
      his services hereunder, Executive shall not be required to perform his services
      hereunder at any location other than the principal executive office of the
      Company, which office shall be located throughout the Term at its location
      on
      the date hereof, or, if relocated, at a location within a distance of 30 miles
      from its location on the date hereof, or at such other office or site to which
      Executive may, in his sole discretion, consent; nor shall he be required to
      relocate his principal residence to, or otherwise to reside at, any location
      specified by the Company. The Company shall provide Executive with suitable
      office space, furnishings and equipment, secretarial and clerical services
      and
      such other facilities and office support as Executive may reasonably
      request.
10
7.
Vacation
.
      Executive shall be entitled to six (6) weeks paid vacation during each year
      of
      his employment hereunder, such vacation to be taken at such time or times as
      shall be agreed upon by Executive and the Company. Vacation time shall be
      cumulative from year to year, except that Executive shall not be entitled to
      take more than eight weeks vacation during any consecutive 12-month period
      during the Term.
8.
Key-Man
      Insurance
.
      The
      Company shall continue to maintain in full force and effect the Policy (as
      defined in Section 16(c) hereof). The Company shall further have the right
      from
      time to time to purchase, increase, modify or terminate additional insurance
      policies on the life of Executive for the benefit of the Company in such amounts
      as the Company may determine in its sole discretion. In connection therewith,
      Executive shall, at such time or times and at such place or places as the
      Company may reasonably direct, submit himself to such physical examinations
      and
      execute and deliver such documents as the Company may deem necessary or
      appropriate.
9.
Trade
      Secrets
.
      Executive shall hold in a fiduciary capacity for the benefit of the Company
      all
      confidential information relating to or concerned with its operations, business
      and affairs, and he shall not, at any time hereafter, use or disclose any such
      information to any person other than to the Company or its designees or except
      as may otherwise be required in connection with the business and affairs of
      the
      Company. The following shall not be deemed "confidential information" for
      purposes of this paragraph: (i) information that is generally available to
      the
      public; (ii) information that was not acquired, directly or indirectly and/or
      in
      any manner, from the Company or in his capacity as an employee of the Company;
      or (iii) information that, hereafter, through no act or omission on Executive's
      part, becomes information generally available to the public. In the event that
      Executive becomes legally compelled (by deposition, interrogatory, request
      of
      documents, subpoena, civil investigative demand or similar process) to disclose
      any confidential information, the Executive shall provide the Company, with
      prompt prior written notice of such requirement so that the Company may seek
      a
      protective order or other appropriate remedy and/or waive compliance with the
      terms of this paragraph. In the event that such protective order or other remedy
      is not obtained, or the Company waives compliance with the provisions hereof,
      the Executive shall furnish only such portion of the confidential information
      which is legally required to be furnished.
10.
Intellectual
      Property
.
      Any
      idea, invention, design, process, system, procedure, improvement, development
      or
      discovery conceived, developed, created or made by Executive, alone or with
      others, during the Term and applicable to the business of the Company, whether
      or not patentable or registrable, shall become the sole and exclusive property
      of the Company. Executive shall disclose the same promptly and completely to
      the
      Company and shall, during the Term or thereafter, (i) execute all documents
      requested by the Company for vesting in the Company the entire right, title
      and
      interest in and to the same, (ii) execute all documents requested by the Company
      for filing and procuring such applications for patents, trademarks, service
      marks or copyrights as the Company, in its sole discretion, may desire to
      prosecute, and (iii) give the Company all assistance it may reasonably require,
      including the giving of testimony in any Proceeding (as hereinafter defined
      in
      Section 32), in order to obtain, maintain and protect the Company's right
      therein and thereto.
11
11.
Non
      Competition
.
(a)
During
      the Term, and, if his employment terminates for any reason other than by him
      pursuant to Section 14 or by the Company other than as a result of a "For Cause
      Event" pursuant to Section 13, for a further period of one year thereafter,
      Executive shall not, directly or indirectly:
(i)
own,
                      control, manage, operate, participate or invest in, or otherwise
                      be
                      connected with, in any manner, any business activity, venture
                      or
                      enterprise which is engaged in any business in the United States
                      and/or
                      Canada in which the Company (or any subsidiary thereof) is
                      currently
                      engaged or is engaged at the time of termination of Executive's
                      employment
                      hereunder, or
(ii)
for
                        himself or on behalf of any other person, induce any employee
                        of the
                        Company (or any subsidiary thereof) to leave the employ of
                        the Company (or
                        such subsidiary) or induce any supplier or customer of the
                        Company (or any
                        subsidiary thereof) to either cease doing business or reduce
                        the level of
                        business then being done with the Company (or such
                        subsidiary).
(b)
The
      provisions of Section 11(a) notwithstanding, Executive may invest his funds
      in
      securities of an issuer if the securities of such issuer are listed for trading
      on a registered securities exchange or actively traded in an over-the-counter
      market and Executive's holdings therein represent less than 1% of the total
      number of shares or principal amount of the securities of such issuer
      outstanding.
(c)
Executive
      acknowledges that the provisions of this Section, and the period of time,
      geographic area and scope and type of restrictions on his activities set forth
      herein, are reasonable and necessary for the protection of the
      Company.
12.
Termination
      Upon Disability
.
      In the
      event that the Board of Directors determines that the Executive is unable to
      perform his duties hereunder by reason of any disability or incapacity (due
      to
      any physical or mental injury, illness or defect) for an aggregate of 180 days
      in any consecutive 12-month period, the Company shall have the right to
      terminate Executive's employment hereunder within 60 days after the
      180
th
day of
      his disability or incapacity by giving Executive notice to such effect at least
      30 days prior to the date of termination set forth in such notice, and on such
      date such employment shall terminate. The Board of Directors' determination
      shall be made after due inquiry, on the basis of convincing evidence presented
      in at least two medical opinions rendered by reputable physicians with
      experience in diagnosing and treating the condition described in the
      opinion.
12
13.
Termination
      for Cause
.
(a)
In
      addition to any other rights or remedies provided by law or in this Agreement,
      the Company may terminate Executive's employment under this Agreement if (each,
      a "For Cause Event"):
(i)
Executive
                        is convicted of, or enters a plea of guilty or nolo contendere
                        (which plea
                        is not withdrawn prior to its approval by the court) to,
                        a felony offense
                        and either Executive fails to perfect an appeal of such conviction
                        prior
                        to the expiration of the maximum period of time within which,
                        under
                        applicable law or rules of court, such appeal may be perfected
                        or, if
                        Executive does perfect such an appeal, his conviction of
                        a felony offense
                        is sustained on appeal;
                        or
(ii)
the
                        Company's Board of Directors determines, after due inquiry,
                        based on
                        convincing evidence, that Executive
                        has:
(A)
com
mitted
                          fraud against, or embezzled or misappropriated funds or
                          other assets of,
                          the Company (or any subsidiary
                          thereof);
(B)
violated,
                          or knowingly caused the Company (or any subsidiary thereof)
                          or any
                          officer, employee or other agent thereof, to violate, any
                          material law,
                          regulation or ordinance or any material rule, regulation,
                          policy or
                          practice established by the Company's Board of
                          Directors;
(C)
willfully,
                          or because of gross or persistent negligence, (A) failed
                          properly to
                          perform his duties hereunder or (B) acted in a manner detrimental
                          to, or
                          adverse to the interests of, the Company;
                          or
(D)
violated,
                          or failed to perform or satisfy any material covenant,
                          condition or
                          obligation required to be performed or satisfied by Executive
                          hereunder;
and
      that,
      in the case of any violation or failure referred to in clause (B), (C) or (D)
      of
      this paragraph (ii) of Section 13(a), such violation or failure has caused,
      or
      is reasonably likely to cause, the Company to suffer or incur a substantial
      casualty, loss, penalty, expense or other liability or cost.
(b)
The
      Company may effect such termination for cause by giving Executive notice to
      such
      effect, setting forth in reasonable detail the factual basis for such
      termination, at least fourteen (14) days prior to the date of termination set
      forth therein; provided however that Executive may avoid such termination if
      Executive, prior to the date of termination set forth in such notice, cures
      or
      explains to the reasonable satisfaction of the Company's Board of Directors
      the
      factual basis for termination set forth therein.
14.
Termination
      by Executive for Good Reason
.
      In
      addition to any other rights or remedies provided by law or in this Agreement,
      Executive may terminate his employment hereunder if (i) the Company violates,
      or
      fails to perform or satisfy any material covenant, condition or obligation
      required to be performed or satisfied by it hereunder, or (ii) as a result
      of
      any action or failure to act by the Company, there is a material change in
      the
      nature or scope of the duties, obligations, rights or powers of Executive's
      employment, by giving the Company notice to such effect, setting forth in
      reasonable detail the factual basis for such termination, at least ten (10)
      days
      prior to the date of termination set forth therein;
provided
      however
that the
      Company may avoid such termination if it, prior to the date of termination
      set
      forth in such notice, cures or explains to the reasonable satisfaction of
      Executive the factual basis for termination set forth therein.
13
15.
Voluntary
      Termination by Executive
.
      In
      addition to any other rights or remedies provided by law or in this Agreement,
      at any time after September 2, 2006, Executive may terminate his employment
      hereunder by giving the Company written notice to such effect, which termination
      shall not take effect until the earlier to occur of (i) ninety (90) days after
      the date of such written notice, or (ii) either November 30, 2008 (if there
      has
      occurred an Exercise of the Extension Option) or November 30, 2007 (if there
      has
      not occurred an Exercise of the Extension Option). The termination by Executive
      of his employment for Good Reason pursuant to Section 14 of this Agreement
      shall
      not constitute or be deemed to constitute for any purpose a "voluntary
      termination" of his employment.
16.
Compensation
      and Benefits upon Termination
.
(a)
Upon
      termination of Executive's employment hereunder, he shall be entitled to
      receive, in any case, any Base Salary due to him pursuant to Section 3 in
      respect of his employment prior to the Termination Date.
(b)
If
      Executive is discharged as a result of a "For Cause Event" pursuant to Section
      13, except for the payment of any amount required to be made by Section 16(a),
      from and after the Termination Date, the Company shall have no further
      obligation to Executive hereunder, including without limitation, any obligation
      pursuant to Section 18.
(c)
If
      the
      Executive's employment is terminated by him pursuant to Section 14 or by the
      Company other than as a result of a "For Cause Event" pursuant to Section 13
      (other than termination for disability pursuant to Section 12), he shall be
      entitled to (i) receive an amount equal to the sum of (A) any unpaid Base Salary
      due the Executive through either November 30, 2008 (if there has occurred an
      Exercise of the Extension Option) or November 30, 2007 (if there has not
      occurred an Exercise of the Extension Option); plus (B) a one-time, lump-sum
      payment of $575,000; plus (C) his 2.5% Bonus and his Additional Bonus for the
      last Bonus Period ending before the Termination Date; and (ii) cause the Company
      to transfer the ownership of the Policy (as defined below) to Executive or
      to
      his designee (with all premiums thereon and other costs thereof paid to the
      Termination Date), whereupon Executive shall have the right to change the
      beneficiary of the Policy and shall become obligated to then pay all premiums
      thereon and other costs thereof. For purposes of this Section 16, the "Policy"
shall mean that certain $1 million key-man life insurance policy maintained
      by
      the Company as of the date hereof on the life of the Executive.
14
(d)
If
      the
      Executive's employment is terminated by the Company for disability pursuant
      to
      Section 12, in addition to any rights granted the Executive under any disability
      policy maintained by the Company for the Executive's benefit, Executive shall be
      entitled to (i) receive a one-time, lump-sum payment of $575,000, plus his
      2.5%
      Bonus and his Additional Bonus for the last Bonus Period ending before the
      Termination Date; and (ii) cause the Company to transfer the ownership of the
      Policy to the Executive or to his designee (with all premiums thereon and other
      costs thereof paid to the Termination Date), whereupon Executive shall have
      the
      right to change the beneficiary of the Policy and shall become obligated to
      then
      pay all premiums thereon and other costs thereof.
(e)
[Intentionally
      Omitted]
(f)
If
      the
      Executive's employment terminates due to the scheduled expiration of the Term
      (i.e. either November 30, 2008 (if there has occurred an Exercise of the
      Extension Option) or November 30, 2007 (if there has not occurred an Exercise
      of
      the Extension Option)), or if the Executive voluntarily terminates his
      employment pursuant to Section 15 and if at the time Executive gives the Company
      the notice of termination referred to therein the Company has not given to
      Executive a notice of termination upon his disability pursuant to Section 12
      or
      as a result of a "For Cause Event" pursuant to Section 13, the Executive shall
      (i) in partial consideration for agreeing to assume consulting obligations
      for
      the Company (as set forth in clause (iii), below), be entitled to receive a
      one-time, lump-sum payment of $250,000; and (ii) be entitled to receive his
      2.5%
      Bonus and his Additional Bonus for the last Bonus Period ending before the
      Termination Date; and (iii) become a consultant to the Company for a period
      of
      three (3) years pursuant to which he shall make himself reasonably available
      to
      assist the then Chief Executive Officer of the Company
by
      telephone or in person up to 1 day per week (subject to the Executive's
      availability, as may be limited by his other business and personal interests),
      and for which he shall be paid a consulting fee of $108,334 per annum (to be
      paid in substantially equal installments no less often than once per month);
      (iv) for the term of his consultancy, be entitled to maintain an office either
      at the Company's offices and receive secretarial and clerical services, all
      at
      the Company's expense, or, at Executive's option, if the Company is not
      maintaining such offices at its place of business at which Executive performed
      his services at the Termination Date, then the Company shall reimburse the
      Executive up to $25,000 per annum for the cost of his maintaining a comparable
      office, secretarial and clerical services at such other location selected by
      Executive; (v) for the term of his consultancy, be entitled to receive from
      the
      Company major medical, hospitalization, dental and disability insurance for
      the
      benefit of Executive and his wife and children, and the Company shall pay all
      premiums and any other costs or expenses incurred to maintain such policies
      in
      effect for such period of consultancy; and (vi) shall have the right to cause
      the Company to transfer the ownership of the Policy to the Executive (with
      all
      premiums thereon and other costs thereof paid to the Termination Date),
      whereupon Executive shall have the right to change the beneficiary of the Policy
      and shall become obligated to then pay all premiums thereon and other costs
      thereof .
(g)
If
      the
      Executive dies during the Term, and if at the time of death the Company has
      not
      given to Executive a notice of termination upon his disability pursuant to
      Section 12 or as a result of a "For Cause Event" pursuant to Section 13, the
      Company shall deliver to the Executive's estate a one-time, lump sum payment of
      $500,000, payable from the proceeds of the Policy. The Company hereby undertakes
      that upon the Executive's death it shall make an immediate and diligent effort
      to collect any proceeds payable under the Policy.
15
(h)
Any
      amount payable to Executive (or his estate) upon termination of his employment
      hereunder shall be paid promptly, and in any event within thirty (30) days,
      after the Termination Date, or, if indeterminable at such time, within thirty
      (30) days after the amount of same is able to be determined; provided, however,
      that any amounts due under clause (g) of this Section 16 shall be paid to the
      Executive's estate no later than thirty (30) days after the date the Company has
      received the proceeds payable under the Policy.
(i)
Executive
      shall have no obligation hereunder to seek or to accept any other employment
      after the Termination Date or otherwise to mitigate the damages sustained by
      reason of his wrongful termination. No compensation or other amount received
      or
      receivable by Executive on account of any employment or engagement after the
      Termination Date shall be offset against or deducted from any payment required
      to be made by this Section 16 .
(j)
Executive
      shall be entitled to receive from the Company as a result of the termination
      of
      his employment hereunder only those payments and other consideration set forth
      herein. If the Executive's employment is deemed to have been wrongfully
      terminated hereunder, the Executive's sole remedy shall be to receive the
      payments and other consideration provided for in this Agreement as liquidated
      damages, it being agreed that the Executive's damages in case of the Company's
      default hereunder might be impossible to ascertain and that such payments and
      other consideration constitute a fair and reasonable amount of damages under
      the
      circumstances and are not a penalty.
17.
[Intentionally
      Omitted]
18.
Other
      Termination Provisions
.
(a)
Following
      the Termination Date, the Company shall continue to indemnify Executive, and
      hold him harmless from, any loss, damages, liability, obligation or expense
      (including, without limitation, legal fees) that he may suffer or incur in
      connection with any judgment, claim made or Proceeding relating to his service
      as a director, officer, employee or agent of the Company (or any subsidiary
      thereof) to the same extent and in same manner as the Company shall be obligated
      so to indemnify Executive immediately prior to the Termination
      Date.
(b)
The
      Company shall continue to maintain for the benefit of Executive directors'
      and
      officers' liability insurance providing coverage at least as favorable to
      Executive (including with respect to limits of liability, exclusions, and
      deductible and retention amounts) as that in effect on the Termination
      Date.
16
19.
Notices
.
      Any
      notice or demand required or permitted to be given or made hereunder to or
      upon
      either party hereto shall be deemed to have been duly given or made for all
      purposes if (a) in writing and sent by (i) messenger or an overnight courier
      service against receipt, or (ii) certified or registered mail, postage paid,
      return receipt requested, or (b) sent by telegram, telecopy, telex or similar
      electronic means, provided that a written copy thereof is sent on the same
      day
      by postage-paid first-class mail, to such party at the following
      address:
to
      the
      Company at:
One
                          Blue Hill
                          Plaza
Pearl
                          River, New York
                          10965
Attn:
                          President
Fax:
                          (845)
                          820-1717
with
      a copy
      to:
Feder,
                            Kaszovitz, Isaacson,
                            Weber,
Skala,
                            Bass & Rhine
                            LLP
23rd
                            Floor
750
                            Lexington
                            Avenue
New
                            York, New York
                            10022-1200
Attn:
                            Saul Kaszovitz,
                            Esq.
Fax:
                            (212)
                            888-7776
to
        Executive
        at:
6
                            Glen Eagles
                            Court
Pearl
                            River, New York
                            10965
Fax:
                            __________________
or
      such
      other address as either party hereto may at any time, or from time to time,
      direct by notice given to the other party in accordance with this Section.
      The
      date of giving or making of any such notice or demand shall be, in the case
      of
      clause (a)(i), the date of the receipt; in the case of clause (a)(ii), five
      business days after such notice or demand is sent; and, in the case of clause
      (b), the business day next following the date such notice or demand is
      sent.
20.
Amendment
.
      Except
      as otherwise provided herein, no amendment of this Agreement shall be valid
      or
      effective, unless in writing and signed by or on behalf of the parties
      hereto.
21.
Waiver
.
      No
      course of dealing or omission or delay on the part of either party hereto in
      asserting or exercising any right hereunder shall constitute or operate as
      a
      waiver of any such right. No waiver of any provision hereof shall be effective,
      unless in writing and signed by or on behalf of the party to be charged
      therewith. No waiver shall be deemed a continuing waiver or waiver in respect
      of
      any other or subsequent breach or default, unless expressly so stated in
      writing.
22.
Governing
      Law
.
      This
      Agreement shall be governed by, and interpreted and enforced in accordance
      with,
      the laws of the State of New York without regard to principles of choice of
      law
      or conflict of laws.
17
23.
Dispute
      Resolution
.
      Any and
      all disputes which arise out of this Agreement, including, but not limited
      to,
      disputes concerning the performance, enforcement, and/or interpretation of
      this
      Agreement, shall be resolved in New York City pursuant to arbitration conducted
      in accordance with the rules of the Arbitration Association of America.
24.
Remedies
.
      In the
      event of any actual or prospective breach or default by either party hereto,
      the
      other party shall be entitled to equitable relief, including remedies in the
      nature of rescission, injunction and specific performance. All remedies
      hereunder are cumulative and not exclusive, and nothing herein shall be deemed
      to prohibit or limit either party from pursuing any other remedy or relief
      available at law or in equity for such actual or prospective breach or default,
      including the recovery of damages.
25.
Severability
.
      The
      provisions hereof are severable and in the event that any provision of this
      Agreement shall be determined to be invalid or unenforceable in any respect,
      the
      remaining provisions hereof shall not be affected, but shall remain in full
      force and effect, and any invalid or unenforceable provision shall be deemed,
      without further action on the part of the parties hereto, amended and limited
      to
      the extent necessary to render the same valid and enforceable.
26.
Counterparts
.
      This
      Agreement may be executed in counterparts, each of which shall be deemed an
      original and which together shall constitute one and the same
      agreement.
27.
Binding
      Effect
.
      This
      Agreement shall be binding upon and inure to the benefit of the parties hereto
      and their respective successors and permitted assigns. This Agreement is not
      intended, and shall not be deemed, to create or confer any right or interest
      for
      the benefit of any person not a party hereto.
28.
Titles
      and Captions
.
      The
      titles and captions of the Articles and Sections of this Agreement are for
      convenience of reference only and do not in any way define or interpret the
      intent of the parties or modify or otherwise affect any of the provisions
      hereof.
29.
Grammatical
      Conventions
.
      Whenever the context so requires, each pronoun or verb used herein shall be
      construed in the singular or the plural sense and each capitalized term defined
      herein and each pronoun used herein shall be construed in the masculine,
      feminine or neuter sense.
30.
References
.
      The
      terms "herein," "hereto," "hereof," "hereby," and "hereunder," and other terms
      of similar import, refer to this Agreement as a whole, and not to any Article,
      Section or other part hereof.
31.
No
      Presumptions
.
      Each
      party hereto acknowledges that it has had an opportunity to consult with counsel
      and has participated in the preparation of this Agreement. No party hereto
      is
      entitled to any presumption with respect to the interpretation of any provision
      hereof or the resolution of any alleged ambiguity herein based on any claim
      that
      the other party hereto drafted or controlled the drafting of this
      Agreement.
18
32.
Certain
      Definitions
.
      As used
      herein:
(a)
"Person"
      includes without limitation a natural person, corporation, joint stock company,
      limited liability company, partnership, joint venture, association, trust,
      government or governmental authority, agency or instrumentality, or any group
      of
      the foregoing acting in concert.
(b)
A
      "Proceeding" is any suit, action, arbitration, audit, investigation or other
      proceeding before or by any court, magistrate, arbitration panel or other
      tribunal, or any governmental agency, authority or instrumentality of competent
      jurisdiction.
33.
Entire
      Agreement
.
      This
      Agreement embodies the entire agreement of the parties hereto with respect
      to
      the subject matter hereof and supersedes any prior agreement, commitment or
      arrangement relating thereto, written or oral, if any, which shall terminate
      immediately upon the commencement of the Term.
IN
      WITNESS
      WHEREOF, the undersigned have duly executed this Agreement as of the day and
      year first above written.
TRAFFIX,
              INC.
By:
/s/
Name:
                Andrew Stollman
Title:   President
/s/
JEFFREY
              L. SCHWARTZ
19