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                                                                   EXHIBIT 10.59

      THIS EMPLOYMENT AGREEMENT (the "Agreement"), made this 7th day of October,
2002, is entered into by PolyMedica Corporation, a Massachusetts corporation
with its principal place of business at 11 State Street, Woburn, Massachusetts
01801 (the "Company"), and Samuel L. Shanaman, residing at Five Millstone
Circle, Andover, Massachusetts 01810 (the "Employee").

                                  INTRODUCTION

      The Employee is a member of the Board of Directors of the Company (the
"Board"). At the request of the other members of the Board, in light of the
recent retirement of the Chief Executive Officer of the Company, the Employee
has been serving as Interim Chief Executive Officer of the Company and has
agreed to continue to do so while the Board conducts a search for a new Chief
Executive Officer. The Company and the Employee have each acknowledged that the
Employee will not provide his services on a full-time basis. Both parties
currently contemplate that the time commitment of the Employee will be
approximately 70% of a full-time commitment, or three to four days a week. This
acknowledgement shall not, however, be interpreted as a limit on the time that
the Employee may work. In consideration of the mutual covenants and promises
contained herein and other good and valuable consideration, the receipt and
sufficiency of which is hereby acknowledged by the parties hereto, the parties
agree as follows:

1. Services. The Employee agrees to perform such management, advisory and
related services to and for the Company as may be reasonably requested from time
to time by the Board of Directors of the Company or its designees (the "Board"),
including, but not limited to, acting as Interim Chief Executive Officer of the
Company. During the Employment Period (as defined below), the Employee shall not
engage in any activity that has a conflict of interest with the Company,
including any competitive employment, business, or other activity, and he shall
not assist any other person or organization that competes, or intends to
compete, with the Company.

2. Term. This Agreement shall commence on the date hereof and shall continue
until terminated by vote of the Board (such period, as it may be extended, being
referred to as the "Employment Period").

3. Compensation.

      3.1. Restricted Stock and Salary. The Employee's sole compensation for the
services provided hereunder shall be (a) to enter into a Restricted Stock
Agreement with the Company on the date hereof in the form attached hereto as
Exhibit A and (b) to be paid $600 for each of the Company's bi-weekly pay
periods that occurs during the Employment Period.

      3.2. Reimbursement of Expenses. The Company shall reimburse the Employee
for all reasonable and necessary expenses incurred or paid by the Employee in
connection with, or related to, the performance of his services under this
Agreement. The Employee shall submit to the Company itemized monthly statements,
in a form satisfactory to the Company, of such expenses incurred in the previous
month. The Company shall pay to the Employee amounts shown on each such
statement within 30 days after receipt thereof.
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      3.3. Benefits. Notwithstanding his employment by the Company, the Employee
acknowledges and agrees that he shall not be entitled to any benefits, coverages
or privileges, including, without limitation, social security, unemployment,
medical or pension payments, made available to employees of the Company.

4. Cooperation. The Employee shall use his best efforts in the performance of
his obligations under this Agreement. The Company shall provide such access to
its information and property as may be reasonably required in order to permit
the Employee to perform his obligations hereunder. The Employee shall cooperate
with the Company's personnel, shall not interfere with the conduct of the
Company's business and shall observe all rules, regulations and security
requirements of the Company concerning the safety of persons and property.

5. Proprietary Information.

      5.1. The Employee acknowledges that his relationship with the Company is
one of high trust and confidence and that in the course of his service to the
Company he will have access to and contact with Proprietary Information. The
Employee agrees that he will not, during the Employment Period or at any time
thereafter, disclose to others, or use for his benefit or the benefit of others,
any Proprietary Information or Invention.

      5.2. For purposes of this Agreement, Proprietary Information shall mean,
by way of illustration and not limitation, all information (whether or not
patentable and whether or not copyrightable) owned, possessed or used by the
Company, including, without limitation, any Invention, formula, vendor
information, customer information, apparatus, equipment, trade secret, process,
research, report, technical data, know-how, computer program, software, software
documentation, hardware design, technology, marketing or business plan,
forecast, unpublished financial statement, budget, license, price, cost and
employee list that is communicated to, learned of, developed or otherwise
acquired by the Employee in the course of his service as a Employee to the
Company.

      5.3. The Employee's obligations under this Section 5 shall not apply to
any information that (i) is or becomes known to the general public under
circumstances involving no breach by the Employee or others of the terms of this
Section 5, (ii) is generally disclosed to third parties by the Company without
restriction on such third parties, or (iii) is approved for release by written
authorization of the Board of Directors of the Company.

      5.4. Upon termination of this Agreement or at any other time upon request
by the Company, the Employee shall promptly deliver to the Company all records,
files, memoranda, notes, designs, data, reports, price lists, customer lists,
drawings, plans, computer programs, software, software documentation, sketches,
laboratory and research notebooks and other documents (and all copies or
reproductions of such materials) relating to the business of the Company.

      5.5. The Employee acknowledges that any breach of the provisions of this
Section 6 shall result in serious and irreparable injury to the Company for
which the Company cannot be adequately compensated by monetary damages alone.
The Employee agrees, therefore, that, in addition to any other remedy it may
have, the Company shall be entitled to enforce the specific performance of this
Agreement by the Employee and to seek both temporary and permanent injunctive
relief (to the extent permitted by law) without the necessity of proving actual
damages.

6. Notices. All notices required or permitted under this Agreement shall be in
writing
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and shall be deemed effective upon personal delivery or upon deposit in the
United States Post Office, by registered or certified mail, postage prepaid,
addressed to the other party at the address shown above, or at such other
address or addresses as either party shall designate to the other in accordance
with this Section 6.

7. Pronouns. Whenever the context may require, any pronouns used in this
Agreement shall include the corresponding masculine, feminine or neuter forms,
and the singular forms of nouns and pronouns shall include the plural, and vice
versa.

8. Entire Agreement. This Agreement constitutes the entire agreement between the
parties and supersedes all prior agreements and understandings, whether written
or oral, relating to the subject matter of this Agreement.

9. Amendment. This Agreement may be amended or modified only by a written
instrument executed by both the Company and the Employee.

10. Governing Law. This Agreement shall be construed, interpreted and enforced
in accordance with the laws of the Commonwealth of Massachusetts.

11. Successors and Assigns. This Agreement shall be binding upon, and inure to
the benefit of, both parties and their respective successors and assigns,
including any corporation with which, or into which, the Company may be merged
or which may succeed to its assets or business, provided, however, that the
obligations of the Employee are personal and shall not be assigned by him.

12. Indemnification. The Employee, as an officer and director of the Company,
shall have the full benefit of all indemnification and similar protections
provided by the Company to its officers and directors, including without
limitation pursuant to the indemnification provisions set forth in the Company's
Articles of Organization and any liability insurance maintained by the Company
for the benefit of its officers, directors, or both, each as in effect from time
to time. Without limitation of the foregoing, the Company acknowledges and
agrees that the Employee, as Interim Chief Executive Officer of the Company, is
an officer for all purposes of any indemnification or insurance protection
provided by the Company to its officers.

13. Miscellaneous.

      13.1. No delay or omission by the Company in exercising any right under
this Agreement shall operate as a waiver of that or any other right. A waiver or
consent given by the Company on any one occasion shall be effective only in that
instance and shall not be construed as a bar or waiver of any right on any other
occasion.

      13.2. The captions of the sections of this Agreement are for convenience
of reference only and in no way define, limit or affect the scope or substance
of any section of this Agreement.

      13.3. In the event that any provision of this Agreement shall be invalid,
illegal or otherwise unenforceable, the validity, legality and enforceability of
the remaining provisions shall in no way be affected or impaired thereby.

      IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the day and year set forth above.
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                               POLYMEDICA CORPORATION:

                               /s/ Stephen C. Farrell
                               ----------------------
                               Stephen C. Farrell
                               Chief Financial Officer


                               EMPLOYEE:

                               /s/ Samuel L. Shanaman
                               ----------------------
                               Samuel L. Shanaman
                               Lead Director and Interim Chief Executive Officer