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                              EMPLOYMENT AGREEMENT
                              --------------------

     This  AGREEMENT  made as of the 1st day of  July,  1996  (hereinafter,  the
"Effective  Date"),  by  and  between  Bigmar,   Inc.,  a  Delaware  corporation
(hereinafter, "the Employer" or "Employer"), and Peter P. Stoelzle (hereinafter,
"the Executive" or "Executive").

     1.  Commencing  on the Effective  Date of this  Agreement,  Employer  shall
employ  Executive as  Executive  Vice  President to perform the duties  normally
incident to such positions.

     2. Executive  agrees to devote all of Executive's  business time,  efforts,
skills  and  attention  to  fulfill  Executive's  duties  and   responsibilities
hereunder faithfully, diligently and competently.

     3. The term of this  Agreement  shall  commence upon the Effective Date and
shall terminate two years  thereafter,  unless sooner  terminated as hereinafter
provided,  and shall be subject to automatic annual renewal thereafter unless at
least  sixty days prior to the end of the term of this  Agreement  or any annual
renewal period Executive or Employer shall give written notice to the other that
this Agreement shall not be renewed.

     4.  Employer will pay to Executive as  compensation  for all services to be
rendered  by  Executive  hereunder  a salary  at the rate of One  Hundred  Forty
Thousand and 00/000 ($140,000.00)  Dollars ("Base Salary") for the twelve-month
period  commencing  on the  Effective  Date  and for  each  twelve-month  period
thereafter  (each a  "Twelve-Month  Period")  subject to annual  cost of living
increases as may be approved by and in the  discretion of the Board of Directors
of Employer. The Base Salary shall be payable once weekly.

     5. Employer may pay to Executive  bonuses (in cash or stock options) as may
be approved by and in the discretion of the Board of Directors of Employer.  The
performance  of  Executive  shall be reviewed by the  President on or about each
anniversary of the Effective Date.

     6. Employer will reimburse Executive for all reasonable travel and business
expenses  incurred by Executive in connection  with  performance  of Executive's
services  hereunder  in  accordance  with the usual  practices  and  policies of
Employer in effect from time to time, upon presentation of vouchers.

     7.  Executive  will be eligible for and will be afforded an  opportunity to
participate  in all benefit plans and programs  which are currently  afforded or
which may be  afforded  during  the term of this  Agreement  to other  executive
officers of Employer,  including, without limitation,  group insurance, health,
hospital,  dental, major medical, life and disability insurance and stock option
plans or other similar fringe benefits.

     8.  Executive  will  be  entitled  to  four  weeks  vacation   during  each
Twelve-Month Period.

     9. Employer  will provide  either  directly to Executive or on  Executive's
behalf,  an automobile  allowance in the amount of $3,000 for each  Twelve-Month
Period.



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     10.  Executive  represents  and warrants  that, to the best of  Executive's
knowledge, Executive is in good health.

     11. In the event of  Executive's  death during the term of this  Agreement,
this Agreement shall terminate immediately,  provided, however, that Executive's
legal  representatives  shall be entitled to receive the Base Salary which would
otherwise  have been due Executive had Executive  worked  through the end of the
month of Executive's death plus two additional months of the Base Salary for the
Twelve-Month Period in which Executive died.

     12. If during the term of this  Agreement,  Executive  is unable to perform
Executive's duties hereunder on account of illness or other incapacity, and such
illness  or other  incapacity  shall  continue  for a period of more than  three
consecutive  months  during any Twelve  Month  Period,  Employer  shall have the
right, on thirty days' notice to Executive, given after such three month period,
to terminate this Agreement. In the event of any such termination Employer shall
be obligated to pay to  Executive  the Base Salary which would  otherwise be due
Executive until the end of the month during which the termination  occurred plus
four additional  months of the Base Salary for the Twelve-Month  Period in which
such  termination  occurred.  If,  prior to the date  specified  on such notice,
Executive's  illness or incapacity  shall have ceased and  Executive  shall have
resumed the  performance of Executive's  duties  hereunder,  Executive  shall be
entitled to resume  Executive's  employment  hereunder as though such notice had
not been given.  Employer's  Board of Directors  shall  determine in good faith,
upon consideration of medical evidence  satisfactory to it, whether Executive by
reason of physical or mental  disability shall be unable to perform the services
required of Executive hereunder.

     13. If Employer shall terminate Executive's employment hereunder for Cause,
as hereinafter  defined,  or if Executive shall  voluntarily  leave  Executive's
employment  hereunder,  Employer will pay to Executive within ten days after the
termination  of such  Agreement an amount  equal to the amount  which  Executive
would  have  earned as the Base  Salary  hereunder  through  the end of the then
current month in which such termination or departure occurred.  Cause shall mean
any gross malfeasance  directly and materially  affecting Employer or conviction
of a felony directly and materially  affecting  Employer,  each of determined in
the sole discretion of Employer.

     14. If Executive's employment is terminated by Employer without Cause, this
Agreement shall terminate immediately, provided, however, that Employer shall be
obligated to pay Executive the Base Salary had Executive worked through the last
day of the month in which  Executive was terminated and three months of the Base
Salary for the Twelve-Month Period in which Executive was terminated.

     15. Executive covenants and agrees that any work or research, or the result
thereof, including without limitation,  inventions,  processes or formulae made,
conceived or developed by Executive,  alone or in connection with others, during
Executive's employment

                                       -2-



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with Employer,  whether  within or without the usual hours of employment,  which
are related to the business, research, development work or field of operation of
Employer,  or any of its  subsidiaries  or  affiliates,  shall to the  extent of
Executive's  interest  therein be the sole and  exclusive  property of Employer.
Executive further agrees to disclose all such inventions, processes and formulae
completely  and in writing to the Board of Directors of Employer and to no other
persons unless so directed in writing by the Board of Directors of Employer.  To
the extent of  Executive's  interest  therein,  all papers and  records of every
kind,  relating  to any  invention,  process,  formula,  improvement  or  patent
included  within  the  terms  of this  Agreement,  which  shall at any time come
into  the  possession of Executive shall be the sole and  exclusive  property of
Employer  and  shall be  surrendered to Employer upon termination of Executive's
employment  by  Employer  or  upon  Employer's  request at any other time either
during or after the termination of such employment.

     16.  Executive  covenants and agrees with Employer that  Executive has not,
and will not,  during  Executive's  employment  with  Employer  and  thereafter,
directly or  indirectly,  use,  communicate,  disclose or disseminate to anyone
(except to the extent  reasonably  necessary for Executive to perform his duties
hereunder,  except as required by law or except if  generally  available  to the
public otherwise than through use, communication, disclosure or dissemination by
the  Executive)  any  materials,  documents or records  containing  confidential
information  concerning  the  businesses or affairs of Employer or of any of its
affiliates or subsidiaries which Executive may have acquired in the course of or
as incident to  Executive's  employment or prior  dealings with Employer or with
any of its affiliates or subsidiaries,  including, without limitation,  customer
lists,  business or trade secrets of, or methods or techniques  used by Employer
of  any  of  its  affiliates  or  subsidiaries  in  or  about  their  respective
businesses,  or any information whatsoever concerning the customers or suppliers
of any of them.

     17. Executive  acknowledges that Executive's  services and responsibilities
are of particular  significance to Employer and that  Executive's  position with
Employer has given and will give Executive a close knowledge of its policies and
trade  secrets.  Since the Employer is in a creative and  competitive  business,
Executive's  continued and exclusive service to Employer under this Agreement is
of a high degree of importance.

     Executive  convenants  and agrees with Employer that Executive has not, and
will not during  Executive's  employment  with  Employer and for a period of two
years after the  termination of  Executive's  employment  with Employer,  in any
manner,  directly or indirectly,  (i) induce or attempt to influence any present
or future officer,  employee,  lessor,  lessee,  licensor,  licensee or agent of
Employers or its  subsidiaries or its affiliates to leave its respective  employ
or solicit or divert or service  any  customers  or clients of  Employer  or its
subsidiaries or its affiliates or (ii) alone or as a partner, officer, director,
employee,  consultant or stockholder (except for ownership of no more than 5% of
the  capital  stock)  of  any  corporation,   partnership  or  other  entity  be
competitive with the business of Employer or its subsidiaries or affiliates. For
purposes of subdivision (ii) above of this

                                       -3-



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paragraph 17, (a) a business  shall be presumed to be competitive if it conducts
in whole or in part  anywhere  in  Switzerland,  Italy,  Germany  and the United
States any  business in which  Employer,  its  subsidiaries  or  affiliates  has
engaged in or engages in during the term of Executive's employment with Employer
or which Employer,  its subsidiaries or affiliates  contemplated or contemplates
engaging in, and the burden of proving otherwise shall be on Executive,  and (b)
the  business  activities  of  a  subsidiary  or  division  of a  publicly  held
corporation  shall not be deemed to include  the  business  activities  of other
subsidiaries or divisions of such publicly held corporation.

     Nothing  herein shall restrict or otherwise  limit  Executive from managing
Executive's private investments which are not competitive with the businesses of
Employer. Executive shall be permitted to serve as a director of companies which
are not competitive with the businesses of Employer, so long as such services do
not interfere with the performance of Executive's duties under this Agreement.

     18.  Executive  ackcnowledges  that the  remedy  at law for any  breach  or
threatened breach by Executive of the covenants  contained in paragraphs 15, 16,
and 17 would be wholly inadequate, and therefore Employer or its subsidiaries or
its affiliates shall be entitled to preliminary and permanent  injunctive relief
and  specific  performance  thereof.   Paragraphs  15,  16,  and  17  constitute
independent  and separable  covenants that shall be enforceable  notwithstanding
rights or remedies that Employer or its  subsidiaries or its affiliates may have
under any other provision of this Agreement,  or otherwise. If any or all of the
foregoing  provisions of paragraphs 15, 16, and 17 are held to be  unenforceable
for any  reason  whatsoever,  it shall not in any way  invalidate  or affect the
remainder of this Agreement which shall remain in full force and effect.  If the
period of time or geographical  areas specified in paragraphs 15, 16, and 17 are
determined to be unreasonable in any judicial proceeding,  the period of time or
areas of restriction  shall be reduced so that this Agreement may be enforced in
such  areas  and  during  such  period  of time as  shall  be  determined  to be
reasonable.

     19. Executive  represents and warrants to Employer that since  commencement
of Executive's  employment with Employer,  Executive was not, is not now and, in
the future will not without the  approval of the Board of Directors of Employer,
become,  under any  obligation of a  contractual  or other nature to any person,
firm or corporation which is inconsistent or in conflict with this Agreement, or
which would prevent,  limit or impair in any way the execution of this Agreement
or the  performance  by  Executive  of  Executive's  obligations  hereunder  and
Executive will indemnify and hold harmless Employer, its Directors, officers and
employees  against and in respect of all  liability,  loss,  damage,  expense or
deficiency  resulting from any  misrepresentation,  or breach of any warranty or
agreement made by Executive in connection with Executive's  employment hereunder
or under Executive's Original Employer Agreement.

     20.  The  waiver  by  either  party of a breach  of any  provision  of this
Agreement  shall not operate as or be  construed  as a waiver of any  subsequent
breach thereof.

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     21. Any and all notices referred to herein shall be sufficient if furnished
in  writing  and  sent by  certified  mail,  return  receipt  requested,  to the
respective  parties at the addresses  set forth below,  or such other address as
either party may from time to time designate in writing.

To Executive:                              To Employer:

Peter P. Stoelzle                          Bigmar, Inc.
9336 Wellington Park Circle                6660 Doubletree Avenue
Tampa, FL 33647-2537                       Columbus, OH 43229

     22. This  Agreement  shall be binding upon,  and shall inure to the benefit
of, Employer and its successors and assigns, and Executive and Executive's legal
representatives,  heirs,  legatees and  distributees, but neither this Agreement
nor  any  rights  hereunder  shall  be  assignable,  encumbered  or  pledged  by
Executive.

     23. This Agreement  constitutes  the entire  agreement  between the parties
hereto with  respect to the subject  matter  hereof and  supersedes  any and all
prior written or oral agreements  between Employer and Executive with respect to
the subject matter hereof.  No  modification,  amendment or waiver of any of the
provisions of this Agreement shall be effective  unless in writing and signed by
both parties hereto.

     24. This Agreement  shall be construed and enforced in accordance  with the
laws and decisions of the State of Delaware.

     25. This Agreement may be executed in any number of  counterparts,  each of
which shall be an original,  but all of which together shall  constitute one and
the same Agreement.  Delivery of an executed  counterpart of a signature page to
this  Agreement  by  telecopier  shall be  effective  as  delivery of a manually
executed counterpart of this Agreement.

     26. If any  provisions or part of any  provision of this  Agreement is held
for any  reason to be  unenforceable,  the  remainder  of this  Agreement  shall
nevertheless remain in full force and effect.

     IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as
of the 1st day of July, 1996.

                                     BIGMAR, INC.

                                     By: /s/ John G. Tramontana
                                        -------------------------------
                                         Name:  John G. Tramontana
                                         Title: President


                                         /s/ Peter P. Stoelzle
                                        -------------------------------
                                         Peter P. Stoelzle

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