EXHIBIT 10.1


This  agreement is made and entered  into as of the 25th day of August 1999,  by
Isolyser Company, Inc. and Travis W. Honeycutt.

In consideration of the mutual covenants  contained in this agreement,  Isolyser
and Honeycutt agree as follows:

1.   EMPLOYMENT

     (a)  Effective  November 1, 1999 and through October 31, 2002 Mr. Honeycutt
          will serve as the  Consultant  to the  President of Orex  Technologies
          International  (OTI) and as such shall become a consultant  to and not
          an employee of Isolyser.  This  consultancy  can be  terminated by Mr.
          Honeycutt with 90 days notice or may be extended by mutual  agreement.
          During this term Mr.  Honeycutt shall assist  Isolyser  faithfully and
          diligently to achieve its objectives as may be reasonably requested by
          the  President  of OTI and will take no action  which is  contrary  to
          these objectives. As Consultant to the President of OTI, Mr. Honeycutt
          shall have no policy-making  authority on behalf of Isolyser and shall
          have no authority to bind Isolyser to any  obligations.  Mr. Honeycutt
          shall not be required to devote his full working time and attention to
          Isolyser,  and may be engaged in other activities subject to paragraph
          3 of this  agreement.

     (b)  Mr.  Honeycutt  may  continue to serve on the Board of  Directors  and
          maintain  that status as long as he is duly elected to that  position.

 2.  COMPENSATION  AND  BENEFITS.     As full  compensation  for  all  services
     rendered by Mr.  Honeycutt as a consultant to Isolyser under this agreement
     and as full  consideration for the covenants of Mr. Honeycutt  contained in
     this agreement, Mr. Honeycutt shall be entitled to the following so long as
     Mr.  Honeycutt  is not in  breach  of this  agreement  and has not  earlier
     terminated  this  agreement:

     (a)  A  consulting  fee of (i)  $150,000  for the year  beginning  November
          1,1999  and  ending  October  31,  2000,  (ii)  $130,000  for the year
          beginning  November  1, 2000 and ending  October 31,  2001,  and (iii)
          $35,000 for the year beginning November 1, 2001 and ending October 31,
          2002.

     (b)  Isolyser  shall be  responsible  for cobra  payments  for  medical and
          dental for 18 months  beginning  November 1, 1999 and ending April 30,
          2001. It is understood  that Mr.  Honeycutt is only eligible for those
          benefits  which he is currently  enrolled.  At the  expiration  of the
          Cobra benefits  Isolyser will pay Mr. Honeycutt $6,500 toward the cost
          of other health insurance benefits.  Mr. Honeycutt  acknowledges that,
          except as set forth herein, he and his dependents will not participate
          in any benefit plans upon becoming Consultant to the President of OTI.

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     (c)  Mr.  Honeycutt will also be entitled to expenses not to exceed $20,000
          per year for the term of the consulting  agreement.  Included in these
          expenses will be reasonable  expenditures  to establish a home office.
          All  expenses  must be approved by the CEO of Isolyser  and must be in
          relation  to  reasonable  travel and other  related  business  expense
          associated  with the role of  Consultant  to the President of OTI.

     (d)  Subject to Mr.  Honeycutt's  continued  reelection to and service as a
          member  of  Isolyser's  Board of  Directors,  Mr.  Honeycutt  shall be
          entitled  to the  compensation  provided to  "outside"  members of the
          Board  as from  time-to-time  in  effect  per the  policies  as may be
          established  from  time-to-time  in the  discretion  of the  Board  of
          Directors.  Such policy now provides for an annual retainer of $10,000
          and certain  stock  options.

3.  PROTECTIVE  COVENANTS;  REMEDIES

     (a)  Property  Rights.  Mr.  Honeycutt  acknowledges  and  agrees  that all
          records, files and equipment either supplied by Isolyser or any of its
          affiliates or subsidiaries (collectively, the "Isolyser Companies") or
          relating to the  business of the  Isolyser  Companies,  whether or not
          prepared by Mr.  Honeycutt,  are the property of Isolyser and shall be
          returned effective October 31, 1999. These include but are not limited
          to records or books relating to the manner in which Isolyser  conducts
          its business.  It is understood  that such material that is needed for
          Mr.  Honeycutt to perform his role as  Consultant  to the President of
          OTI will be  mutually  agreed to and not subject to return to Isolyser
          until   the   termination   of  Mr.   Honeycutt's   consultancy.

     (b)  Non-Disclosure of Confidential Information. Mr. Honeycutt acknowledges
          that through his formal and informal  association with Isolyser he has
          and will become familiar with among other things the following:

                    Any scientific or technical  information,  design,  process,
                    procedure,  formula  or  improvement  that is  secret  or of
                    value,  and  information  including,  but  not  limited  to,
                    technical   or   nontechnical   data,   formula,   patterns,
                    compilations,   programs,   devices,  methods,   techniques,
                    drawings,  process and financial data,  which Isolyser takes
                    reasonable  efforts to  protect  from  disclosure,  and from
                    which Isolyser  derives  actual or potential  economic value
                    due to its  confidential  nature (the foregoing  hereinafter
                    collectively referred to as the "Confidential Information").

          Mr. Honeycutt  acknowledges that use of such Confidential  Information
          will give him an unfair  competitive  advantage  over  Isolyser in the
          event that he should go into competition with Isolyser and agrees that
          during  the  course  of  this  agreement  and  for a two  year  period
          following  termination of his consultancy  under this  agreement,  Mr.
          Honeycutt will not disclose to any person, or utilize for his benefit,
          any of the Confidential  Information.  Mr. Honeycutt acknowledges that
          such  Confidential  Information is of special and particular  value to
          Isolyser;  is the  property  of  Isolyser,  the  product  of  years of
          experience and trial and error;  is not generally  known to Isolyser's
          competitors;  and is regularly  used in the  operation  of  Isolyser's
          business.  Mr.  Honeycutt  acknowledges and recognizes that applicable
          law prohibits disclosure of confidential information and trade secrets
          indefinitely (i.e., without regard to the two year period described in
          this  paragraph),  and Isolyser has the right to require Mr. Honeycutt
          to comply with such law in addition to  Isolyser's  rights  under this
          paragraph.

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          (c)  Non-Interference  with  Employees.  Mr.  Honeycutt  agrees not to
               directly  or  indirectly  solicit  Isolyser  employees  to  leave
               Isolyser for a period of two years  following the  termination of
               his  consultancy   under  this  agreement  unless  agreed  to  by
               Isolyser.

          (d)  Inventions.  Mr. Honeycutt agrees to fully inform and disclose to
               Isolyser all inventions,  designs,  improvements  and discoveries
               relating  directly  or  indirectly  to the  Business  (as defined
               below) which Mr.  Honeycutt now has or may have at any time while
               Mr.  Honeycutt  is either  employed  by  Isolyser or engaged as a
               consultant   to   Isolyser.   All   such   inventions,   designs,
               improvements and discoveries  shall be the exclusive  property of
               Isolyser.  Mr.  Honeycutt  shall  assist  Isolyser to obtain such
               legal  protection of all inventions,  designs,  improvements  and
               discoveries  as may be deemed  desirable by Isolyser from time to
               time.

          (e)  Non-Solicitation  of Customers.  Until the second  anniversary of
               the date of termination of Mr. Honeycutt's consultancy under this
               agreement Mr. Honeycutt agrees that he will not, within the world
               (the "Territory")  which the parties agree has been the territory
               in which Mr. Honeycutt has rendered services, for Mr. Honeycutt's
               own  benefit  or on  behalf  of any  other  person,  partnership,
               company  or  corporation,  contact  any  customers  or vendors of
               Isolyser  who  Mr.   Honeycutt  called  upon  while  employed  by
               Isolyser, for the purpose of developing, manufacturing or selling
               degradable or infection  control products for use in the medical,
               industrial  or  commercial  markets as  described  in  Isolyser's
               Annual  Report on Form 10-K for the year ended  December 31, 1998
               (collectively,  the "Business").

          (f)  Non-Competition.  Until  the  second  anniversary  of the date of
               termination of Mr. Honeycutt's  consultancy under this agreement,
               Mr.  Honeycutt  agrees that he will not directly or indirectly on
               his behalf or on the behalf of others engage in the "Business" in
               the Territory in any capacity that involves duties similar to the
               duties Mr.  Honeycutt  undertakes or has undertaken for Isolyser.

          (g)  Acknowledgments  Regarding  Protective  Covenants.  Mr. Honeycutt
               acknowledges and understands  that the covenants  provided for in
               this section are limited to the covenants set forth herein and do
               not preclude Mr. Honeycutt upon the termination of this agreement
               from  obtaining  gainful  employment  or  utilizing  his  general
               business skills,  and that numerous  opportunities  exist for Mr.
               Honeycutt to utilize such skills.  Although Mr.  Honeycutt agrees
               that  the  time  and  area   restraints   set  forth  herein  are
               reasonable,  nevertheless,  if for any reason now  unforeseen,  a
               court of competent  jurisdiction  finds that the time and/or area
               restraints  agreed to by the  parties are  unreasonable  then the
               time and/or area restraints  agreed to herein shall be reduced to
               an area and/or  duration  deemed  reasonable  by such court.  Mr.
               Honeycutt acknowledges that he has read and understands the terms


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               of this agreement, that the same was specifically negotiated, and
               that the  protective  covenants  agreed upon herein are necessary
               for the  protection  of  Isolyser's  business  as a result of the
               business secrets  disclosed during the employment and consultancy
               of  Mr.  Honeycutt.  Further,  Mr.  Honeycutt  acknowledges  that
               Isolyser  would  not  enter  into  this  Agreement   without  the
               specifically  negotiated  protective covenants herein stated.

          (h)  Remedies.  In addition to any other rights and remedies which are
               available to Isolyser  with respect to any breach or violation of
               the protective  covenants set forth herein,  it is recognized and
               agreed  that  Isolyser  shall be  entitled  to obtain  injunctive
               relief which would  prohibit Mr.  Honeycutt  from  continuing any
               breach or violation of such protective covenants.

     4.   Resignation.  Effective November 1, 1999, Mr. Honeycutt hereby resigns
          as Executive  Vice  President  and  Secretary of Isolyser and from all
          offices of Mr.  Honeycutt  with any other of the  Isolyser  Companies,
          including  any  position  of  Mr.  Honeycutt  as  a  director  of  any
          subsidiary of Isolyser. 5. Disclosure.  Mr. Honeycutt should carefully
          read  and  understand  the  terms,  conditions  and  effects  of  this
          agreement. This is a legal document, and Mr. Honeycutt is advised that
          he should consult with an attorney before signing this agreement.

     6.   Litigation and Regulatory  Cooperation.  Mr. Honeycutt shall cooperate
          fully with  Isolyser  in the defense or  prosecution  of any claims or
          actions now in existence or which may be brought in the future against
          or on behalf of Isolyser  which relate to events or  occurrences  that
          transpired  while  Mr.  Honeycutt  was  employed  by  or  served  as a
          consultant to Isolyser. Mr. Honeycutt's full cooperation in connection
          to such claims or actions shall include,  but not be limited to, being
          available to meet with  counsel to prepare for  discovery or trial and
          to act as a witness  on  behalf of  Isolyser  at  mutually  convenient
          times.  Mr.  Honeycutt  shall also  cooperate  fully with  Isolyser in
          connection  with any  examination  or review of any  federal  or state
          regulatory  authority as such  examination or review relates to events
          or occurrences that transpired while Isolyser  employed Mr. Honeycutt.
          The obligations  under this paragraph  shall  continue,  to the extent
          required,  following the expiration of this  agreement.  To the extent
          that  Mr.  Honeycutt  is  required  to  provide  services  under  this
          paragraph  subsequent to the  expiration of this  agreement,  Isolyser
          will  reimburse Mr.  Honeycutt for  reasonable  expenses in connection
          with the  performance  of his duties  under this  paragraph  and pay a
          consulting fee of $50 per hour.

     7.   Miscellaneous.

          (a)  All the  payments  made and  benefits  provided to Mr.  Honeycutt
               under  this  agreement  shall  be net of any tax  required  to be
               withheld by Isolyser under applicable law.

          (b)  This agreement  shall be governed in accordance  with the laws of
               the State of Georgia.

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          (c)  This agreement contains the full and entire agreement between the
               parties.  Nothing contained herein shall restrict, alter or amend
               that  certain  Indemnity  Agreement  effective  as of October 20,
               1994,  between  Isolyser  and Mr.  Honeycutt.

          (d)  The salary and other benefits set forth in this  agreement  shall
               no longer accrue or be payable after Mr.  Honeycutt's  death.  As
               this agreement is for the personal services of Mr. Honeycutt,  it
               is not assignable by him. The terms of this agreement are binding
               upon and for the  benefit  of  Isolyser  and its  successors  and
               assigns.

         IN WITNESS  WHEREOF,  the  parties  have caused  this  Agreement  to be
executed and delivered as of the date stated above.

                                             ISOLYSER COMPANY, INC.



                                             By: /s/ Migirdic Nalbantyan
                                                 -----------------------
                                             Its: President



                                                  /s/ Travis W. Honeycutt
                                                  ----------------------
                                                  Travis W. Honeycutt