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                                                                   EXHIBIT 10.11


                                 ENDOCARE, INC.

                              CONSULTING AGREEMENT

        This Consulting Agreement is entered into as of January 6, 1999 between
Alan Kaganov ("Consultant") and ENDOCARE, INC., a Delaware corporation
("Corporation"). In consideration of the mutual covenants set forth in this
Agreement, the parties agree as follows:

1.      TERM OF RETENTION AS CONSULTANT

        Upon the terms and conditions set forth in this Agreement, Corporation
hereby agrees to retain Consultant, and Consultant agrees to act, as a
consultant to Corporation. During the term of this Agreement, Consultant agrees
to perform the duties set forth in Exhibit A to this Agreement.

2.      COMPENSATION

        For his/her services to Corporation under Section 1 during the term of
this Agreement, Consultant shall receive from Corporation Endocare Stock
Options, in accordance with the 1995 Stock Plan, and compensation as outlined on
Exhibit A of this Agreement.

3.      EXPENSES

        Corporation shall reimburse Consultant for reasonable out-f-pocket
expenses incurred by Consultant in connection with Corporation's business, but
only if the incurring of any such expenses is approved in writing by an
executive officer of Corporation and Consultant provides Corporation with such
substantiating receipts or other documentation as Corporation may reasonably
require.

4.      TERM

        The term of this Agreement shall begin on the date set forth in the
first paragraph and, unless modified in writing by mutual agreement of the
parties or terminated earlier pursuant to the terms of this Agreement, shall
continue until the earlier of (1) the satisfactory completion of project as
outline in Exhibit A and attached hereto or; (2) December 31, 1999. Either party
may terminate this Agreement, at such party's discretion with or without cause,
by giving at least seven (7) days prior written notice of the termination to the
other party. Upon termination of this Agreement for any reason, Consultant shall
promptly return to Endocare all copies of Endocare's data, records or materials
of whatever nature or kind, including all materials incorporating proprietary
information of Endocare. Consultant shall also furnish to Endocare, all work in
progress, or portions thereof, including all incomplete work. The termination of
this Agreement pursuant to this Section shall not release either party from any
accrued obligation to pay any sum to the other party (whether then or thereafter
payable) or operate to discharge any liability incurred prior to the termination
date. In addition, the obligations under the following sections shall survive
the termination of this Agreement.

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5.      CONFIDENTIAL INFORMATION

        (a) As used in this Agreement, the term "Confidential Information"
refers to any and all valuable information of a confidential, proprietary or
secret nature related to the present or future business of Corporation, the
research and development activities of Corporation or the business of any
customer of or supplier or contractor to Corporation. Confidential Information
is to be broadly construed and includes, without limitation: (i) information
disclosed by Corporation or its customers, suppliers or contractors ("together,
"Contractors") to Consultant in the course of his retention by Corporation as
well as information developed or learned by Consultant during the course of his
retention; (ii) information that has or could have commercial value or other
utility in the business in which Corporation or its Contractors are engaged or
contemplate being engaged; (iii) information of which the unauthorized
disclosure could be detrimental to the interests of Corporation or its
Contractors, whether or not such information is identified as Confidential
Information by Corporation or its Contractors; and (iv) trade secrets,
operations, services, physician practices, surgical operation procedures,
computer programs, design, technology, ideas, compositions, processes, formulas,
data, source code, know-how, improvements, inventions (whether patentable or
not), works of authorship, business and product development plans, techniques,
test results, specifications, costs and pricing data, employee information,
terms of Corporation's agreements, production and marketing plans and
strategies, customers, and other information concerning Endocare or the
Company's actual or anticipated business, research or development, or which is
received in confidence by Endocare or the Company or for Endocare or the Company
from any other person, and information concerning Corporation's Contractors.

        (b) Consultant acknowledges that the Confidential Information is a
valuable and unique asset of Corporation, and Consultant agrees at all times
during the period of his retention by Corporation and thereafter to keep in
confidence and trust all Confidential Information. Consultant agrees that during
the period of his retention by Corporation and thereafter he will not directly
or indirectly use or exploit the Confidential Information other than in the
course of performing duties as a consultant of or other contractor to
Corporation, nor will Consultant directly or indirectly disclose any
Confidential Information to any person or entity, except in the course of
performing his duties to Corporation with the consent of Corporation's executive
officers. Consultant will abide by Corporation's policies and regulations, as
established from time to time, for the protection of its Confidential
Information. Consultant agrees to use his best efforts to ensure that
Corporation's confidential information, and any records or documents containing
such information, will not be exposed to theft, embezzlement or unauthorized
reproduction or disclosure.

6.      COMPANY OWNERSHIP OF INNOVATIONS

        (a) As used in the Agreement, "Developments" means all inventions,
discoveries, written or printed materials, trade secrets, designs, techniques,
know-how, data or other technical developments which Consultant makes,
conceives, reduces to practice or learns of, either individually or jointly with
others, during the term of this Agreement, and which are related to or



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useful in the business of Corporation or result from Consultant's retention by
Corporation or from the use of premises owned, leased or otherwise use or
acquired by Corporation.

        (b) Subject to the terms of this Agreement, Consultant agrees that any
and all Developments are and will be the exclusive property of Corporation.
Consultant hereby assigns to Corporation all right, title and interest
Consultant may have or may acquire in and to all Developments. Consultant shall
execute any assignments to Corporation or other documents requested by
Corporation to evidence such assignment or Corporation's ownership of all such
Developments and otherwise agrees to cooperate fully with and aid Corporation in
establishing, enforcing and disposing of Corporation's patent and other
proprietary rights with respect to all Developments. In the event Corporation is
unable to secure Consultant's signature on any document necessary to apply for,
prosecute, obtain or enforce any patent, copyright or other right or protection
relating to any Development, whether due to mental or physical incapacity or any
other cause, Consultant hereby irrevocably designates and appoints Corporation
and each of its duly authorized officers as his agent and attorney-in-fact, to
act for and in his behalf and stead to execute and file such document and to do
all other lawfully permitted acts to further the prosecution, issuance and
enforcement of such patents, copyrights or other rights or protections with the
same force and effect as if executed and delivered by Consultant.

        (c) Except with respect to inventions which are to be assigned to or
owned by the United States under contracts between Corporation and departments
or agencies of the United States, the foregoing assignment to Corporation of
Developments will not apply to any invention that Consultant develops entirely
on his own time without using Corporation's equipment, supplies, facilities or
trade secret information, except for those inventions that either: (i) relate at
the time of conception or reduction to practice of the invention to
Corporation's business or to its actual or demonstrably anticipated research or
development; or (ii) result from any work performed by Consultant for
Corporation.

        (d) Consultant will make full and prompt disclosure to Corporation of
all Developments made, conceived, reduced to practice or learned by Consultant,
either individually or jointly with others, during the term of this Agreement.
Consultant shall attach to this Agreement a schedule containing a complete
listing of any Developments relevant to his retention by Corporation that were
made, conceived or first reduced to practice by Consultant alone or jointly with
others prior to his retention by Corporation, or which are covered by the
exclusion set forth in (c) above, and that Consultant desires to remove from the
operation of this Agreement. Corporation agrees to hold any disclosure in such
schedule in confidence.

7.      RETURN OF COMPANY MATERIALS

        Upon the termination of this Agreement for any reason, Consultant agrees
promptly and without request to deliver to Corporation all originals and copies
of notebooks, documents, reports, files, samples, mailing lists, computer
programs and other records and data which are then in Consultant's possession or
under his control and which pertain to his retention by Corporation or include
Confidential Information or Developments, and to return to Corporation any other
tangible personal property owned by Corporation, unless such return is waived in



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writing by Corporation. Provided such retention is disclosed to Corporation and
subject to the Consultant's confidentiality obligations, Consultant may retain
copies of any such records required to be retained by Consultant to satisfy tax
reporting or other legal requirements. Consultant recognizes that the
unauthorized taking of any of Corporation's trade secrets is a crime and could
also result in civil liability to Corporation.

8.      COMPETITION

        Consultant agrees that, during the term of this Agreement, he will not,
except for Corporation or with the written consent of an executive officer of
Corporation, engage or have an interest, directly or indirectly, in any other
business or venture which would interfere with the performance of his
obligations to Corporation or which competes with any material part of
Corporation's business. However, this restriction shall not prevent Consultant
from passively owning or investing in (a) any shares or other assets which he
owns on the date of this Agreement and are listed on a schedule attached to this
Agreement or (1%) less than one percent (1%) of the outstanding shares of a
corporation which are publicly traded.

9.      REMEDIES

        Consultant acknowledges that his services under this Agreement and his
agreements in Sections 5-8 are of a special, unique, unusual, extraordinary
and/or intellectual character, which give them particular value, that his
violation of this Agreement will constitute a material breach of trust and
confidence and may be an invasion of privacy, that the breach by him of his
agreements set forth in this Agreement could not reasonably or adequately be
compensated in damages in an action at law, and that Corporation shall be
entitled to injunctive relief for such a breach. Such relief may include, but
shall not be limited to, an injunction restraining Consultant from rendering any
service or engaging in any activity which breaches or would violate this
Agreement. However, no remedy conferred by any of the specific provisions of
this Agreement is intended to be exclusive of any other remedy, and each and
every remedy shall be cumulative and shall be in addition to every other remedy
existing at law or in equity. The election of any one or more remedies by
Corporation shall not constitute a waiver of its rights to pursue other
available remedies.

10.     CONFLICTING AGREEMENTS

        Consultant represents that his retention by Corporation under this
Agreement and related actions have not breached, and will not breach, any
covenant to keep in confidence proprietary information or any other agreement
with a third party. Consultant has not entered into, and agrees that he will not
enter into, any agreement either written or oral in conflict with this
Agreement.



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11.     MISCELLANEOUS

        (a)     GOVERNING LAW

                All questions with respect to the construction of this Agreement
and the rights and liabilities of the parties shall i)c governed by the laws of
the State of California, excluding its conflict of laws rules.

        (b)     SUCCESSORS AND ASSIGNS

                This Agreement shall inure to the benefit of and be binding upon
the parties and their respective successors and assigns. Consultant may not
assign or otherwise transfer any of his rights or obligations under this
Agreement without Corporation's prior written consent and any such transfer in
violation of this paragraph shall be void.

        (c)     ENTIRE AGREEMENT

                This Agreement contains all of the terms and conditions agreed
upon by the parties, and supersedes any prior agreements or understandings, with
respect to the subject matter of this Agreement.

        (d)     AMENDMENT OR MODIFICATION OF AGREEMENT

                This Agreement may be modified, altered or amended only by the
written agreement of both the parties.

        (e)     ATTORNEYS' FEES AND COSTS

                In any legal proceeding to enforce or interpret the terms of
this Agreement, the prevailing party shall be entitled to reasonable attorney's
fees and costs and necessary disbursements in addition to any other relief to
which it or he may be entitled.

        (f)     COUNTERPARTS

                This Agreement may be executed in one or more counterparts, each
of which shall be a valid original agreement.

        (g)     SEVERABILITY

                If any provision of this Agreement or its application to any
person or circumstance is held invalid or unenforceable to any extent, the
remainder of this Agreement and its other application shall not be affected and
shall be enforceable to the fullest extent permitted by law.



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        (h)     FURTHER ACTIONS

                Each party agrees to execute and deliver any further documents
and to do any additional acts reasonably required to carry out the terms of this
Agreement.

        (i)     WAIVERS

                Any provision of this Agreement may be waived at any time by the
party entitled to the benefit thereof by a written instrument executed by the
party or by a duly authorized officer of the party. No waiver of any of the
provisions of this Agreement will be deemed, or will constitute, a waiver of any
other provision, whether or not similar, nor will any waiver constitute a
continuing waiver.

        (j)     NOTICES

                Any notice or other communication to a parry provided for in
this Agreement shall be deemed to have been duly given if delivered personally
in writing to the party or on the date of its delivery, in writing addressed to
the party, at such party's address determined in accordance with this paragraph.
The address of Consultant shall be: _______________________________. The address
of Corporation shall be: 7 Studebaker, Irvine, California 92618. Either party
may change its or his address for purposes of this Agreement by a notice given
to the other party in accordance with this paragraph.

        (k)     INDEPENDENT CONTRACTOR

                Consultant is retained by Corporation only for the purposes and
to the extent set forth in this Agreement, and his relationship to Corporation
shall, during the term of this Agreement, be that of an independent contractor.
Consultant shall not be considered as having employee status or as being
entitled to participate in any plans, arrangements or distributions by
Corporation pertaining to any pension, stock, bonus, profit sharing or similar
benefits for Corporation's employees. Corporation shall not withhold any of
Consultant's compensation payments for income tax purposes and shall not have
any obligations with regard to Social Security payments for Consultant,
insurance or workers' compensation coverage for Consultant, or any similar
items. Nothing contained in this Agreement shall be deemed or construed to
constitute a relationship of partnership, joint venture, principal and agent,
employer and employee, franchisor and franchisee, or any other association
between the parties.

        (1)     JURISDICTION

                Each parry to this Agreement agrees that an action or proceeding
to determine or enforce any rights or obligations under this Agreement may be
brought in the courts of the State of California in and for the Counties of
Orange and Los Angeles. Each parry consents to the jurisdiction of such courts
over such parry for purposes of any such action or proceeding.



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        (m)     GENDER

                Where required by the context, the masculine gender of pronouns
shall be deemed to include the feminine or the neuter.











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EXECUTED at Irvine, California as of the date first written above.

                                       CORPORATION:

                                       ENDOCARE, INC.
                                       a Del war corporation

                                       By:        /s/ PAUL MIKUS
                                           -------------------------------------
                                             CEO & Chairman


                                       By:        /s/ CHRISTINE CONCEPCION
                                           -------------------------------------
                                             Human Resource Manager


                                       CONSULTANT

                                                  /s/ ALAN KAGANOV
                                       -----------------------------------------
                                             Signature

                                             Alan Kaganov
                                       -----------------------------------------
                                             Printed Name






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                                    EXHIBIT A
                                 (Revised 6/99)

To assist Endocare in the tactical implementation of strategic planning and
development of the company's core technology in target markets. Consultant also
agrees to advise and assist Director of International Sales in the strategic and
tactical development of international markets. All stock options are granted in
accordance with the company's 1995 Stock Plan. The price and vesting schedule
are set forth in the Stock Option Agreement. Option issuances and compensation
are as follows:

1.      50,000 Endocare Stock Options, issued as of the date of this Agreement,
        vest in 12 monthly installments on the first of each month commencing
        February 1, 1999.

2.      Upon the evaluation, selection and establishment (as defined by signed
        contract) of distributors in 7 of the following 12 markets, 5,000
        Endocare Stock Options (issued as of the date of this Agreement) will
        immediately vest and $5,000 will be paid to consultant.

<TABLE>
        <S>                         <C>                   <C>
        Brazil                      BeNeLux               Japan
        United Kingdom              Italy                 Germany
        Spain/Portugal              France                Australia
        Canada                      Turkey                TBD (by agreement
                                                          between Endocare and
                                                          consultant)
</TABLE>

3.      Upon the establishment of clinical reference centers in 7 of the above
        10 markets, and upon the completed design of a structured training
        program for distributors, 5,000 Endocare Stock Options (issued as of the
        date of this Agreement) will immediately vest and $5,000 will be paid to
        consultant.

4.      Upon the achievement of $1,000,000 in Horizon Prostatic Stent sales in
        the five quarters following commercial availability of the product and
        not prior to Q1 00, 10,000 Endocare Stock Options (issued as of the date
        of this Agreement) will immediately vest and $7,500 will be paid to
        consultant. For purposes of this Agreement, if "commercial availability"
        occurs more than 30 days into a quarter, the following quarter shall be
        agreed to be the first quarter of "commercial availability".

If this Agreement terminates prior to the Term set forth in Section 4, all
corresponding unvested options shall cancel.




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