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                                                                  Exhibit 10.7


                             FIRST AMENDMENT TO THE
                      INTERNATIONAL ALLIANCE SERVICES, INC.
                         1996 EMPLOYEE STOCK OPTION PLAN


  This First Amendment to the International Alliance Services, Inc. 1996
Employee Stock Option Plan (the "Plan") hereby amends the Plan as follows
effective as of December 8, 1997 (the "Effective Date"):

     1. The first sentence of the first paragraph of Section 8 of the Plan shall
be amended to read as follows:

       Except as otherwise specifically provided in any agreement evidencing an
       option granted hereunder (or an amendment thereto), in the event the
       relationship between the Company, or one of its subsidiaries, and an
       Optionee is terminated for any reason other than death, permanent
       disability, voluntary termination or willful misconduct, gross negligence
       or other termination for cause, such Optionee's unvested options shall
       immediately terminate and the Optionee's vested options shall thereafter
       expire and rights to purchase shares pursuant thereto shall terminate in
       three (3) months following the date of termination of the relationship,
       but in no event after the expiration date of the option.

     2. The first paragraph of Section 8 of the Plan shall be amended by the
addition at the end thereof of the following sentence:

       The Committee shall be specifically empowered to extend the term of an
       option (but no beyond ten years from the date of grant thereof) and
       modify the vesting provisions of the option in the event the corporation
       or unit or division for whom the Optionee provided services is sold or
       otherwise transferred such that it is no longer a part of the Company and
       its subsidiaries.