June 6, 1997

Arvind Patel
525 Alvarado
San Francisco, California

         Re:      Separation Agreement and General Release

Dear Arvind :

         This letter summarizes the agreement ("Agreement") that we have reached
with respect to your employment  with Oryx  Technology  Corp., a publicly traded
Delaware  corporation ("the Company").  Upon execution of this letter Agreement,
you  and  the  Company  agree  that  the  following   sets  forth  the  complete
understanding  regarding  the cessation of your  employment  with the Company as
President and Chief  Executive  Officer of the Company and in any other capacity
with the  Company or any of its  subsidiaries,  excluding  your  remaining  as a
member of the Board of Directors and Chairman of the Board.

         In return for your  execution of this  Agreement,  you have resigned as
President  and  CEO of the  Company  and as an  employee  of any  and all of its
subsidiaries.  You will remain as a member of the Company's  Board of Directors,
assuming the position as Chairman. In that capacity, you will be responsible for
assisting  the  Company  by helping it to raise  money and  providing  strategic
direction. You will report to and work with Phil Micciche, the new President and
CEO of the Company.  In consideration of the release of all your claims and your
other obligations as set forth in this Agreement,  the Company agrees to provide
you with 12 months severance  payments payable through April 24, 1998 equivalent
to your monthly  salary as of April 25, 1997,  regardless  of whether you obtain
other  employment.  The Company will continue your health care coverage  through
the  earlier  of (i)  April 25,  1998 or (ii) you have  found  full  time  other
employment.  All  severance  payments  will  be  made on the  same  schedule  as
compensation  is paid to the  Company's  employees.  You cease being a full time
employee at April 25, 1997.

         Your 1996 stock  option for  200,000  shares is hereby  accelerated  to
become fully vested. In addition,  you hold one additional separate fully vested
non-statutory  stock option for 100,000 shares of Company stock with an exercise
price of $1.94, representing the closing bid price on the NASDAQ system on April
24, 1997.  All of your  options are hereby  modified to have a term of ten years
for their  exercise  from their  grant  date.  You  understand  that  failure to
exercise the options within a limited period of time after you have ceased being
an employee will cause them to be treated as non-statutory  options. All of your
options are set forth as Exhibit 1 attached  hereto.  You agree that you have no
other options than those in such Exhibit 1, and that as of the date hereof, 341,
659 of your options have vested, including the 100,000 recently granted options.
You  agree to vote all  shares or equity  securities  which you own or  control,
directly or  indirectly,  of the Company,  including any  successor  corporation
which acquires the Company or into which the Company may be merged and where the
Company is not the surviving  entity,  held by you or any person who succeeds to
your  ownership  of the shares in any and all matters as to which the shares are
to be voted or a stockholder  consent is solicited as recommended or directed by
the Board of Directors of the Company  (determined  on the majority  vote of the
Board).

         You agree that you shall not solicit, or attempt to influence, directly
or indirectly,  the vote of any stockholder contrary to or inconsistent with any
decision or position taken by the Board of Directors,  including but not limited
to the  Board's  decision  to change the  Company's  plans to fund or manage the
Company's SurgX operations.  You agree to support any such decision of the Board
and to support  fully the slate of  nominees of the Board of  Directors  for the
1997  annual  meeting  and  thereafter.   You  understand  that  satisfying  the
obligations  set  forth  in  this  paragraph  is a  condition  precedent  to the
Company's  obligation to make the severance payments described above and that if
you  fail to honor  such  obligations,  the  Company  will be  under no  further
obligation  and have no further  liability  to  continue  to make the  severance
payments.

         You may keep your voice mail at the Company  until the earlier of April
25, 1998 or you obtain employment at another company. Subject to Phil Micciche's
prior aproval in each instance, secretarial assistance may be available for your
use on Company  business by the Company.  You may retain the fax machine in your
possession.

         You understand  and agree that you are otherwise  ineligible to receive
any severance,  continued  health care coverage,  stock, or stock options in the
Company and that the  aforementioned  amounts represent more than the Company is
obligated to provide you. You further agree that this offer is made as a part of
a settlement specific to you. You agree that you have returned all Company owned
property in your actual or constructive possession to the Company.

         In consideration  for the benefits  described above,  you, on behalf of
yourself,   your   agents,   assignees,   attorneys,   heirs,   executors,   and
administrators, hereby release the Company and its successors, assigns, parents,
subsidiaries,   divisions,   affiliates,   officers,  directors,   shareholders,
employees, agents, and representatives from:

         (a) any and all claims, liens, demands, causes of action,  obligations,
damages and liabilities,  known or unknown,  of any nature whatsoever,  that you
may  have  now or may  hereafter  claim  to  have  against  the  Company  or its
successors,  assigns, parents, subsidiaries,  divisions,  affiliates,  officers,
directors,  shareholders,   employees,  agents,  and  representatives,   arising
directly or indirectly  out of, or in any way  connected  with or based upon, or
related  in any  way  to,  any  and  all  claims  under  any  state  or  federal
discrimination  statute  including,  but not limited to, age, physical or mental
disability, medical condition, and any other claims covered under the California
Fair  Employment and Housing Act, the federal Age  Discrimination  in Employment
Act (as amended by the Older Workers' Benefit Protection Act), and any claims of
wrongful  termination under state or federal law,  including claims for expenses
and attorneys' fees in connection with such claims; and

         (b) any and all claims, liens, demands, causes of action,  obligations,
damages and liabilities,  known or unknown,  of any nature whatsoever,  that you
may  have  now or may  hereafter  claim  to  have  against  the  Company  or its
successors,  assigns, parents, subsidiaries,  divisions,  affiliates,  officers,
directors,  shareholders,   employees,  agents,  and  representatives,   arising
directly or indirectly  out of, or in any way  connected  with or based upon, or
related in any way to your employment with the Company,  the termination of your
employment,  or to any physical or mental harm or distress from such  employment
or termination of such employment,  including,  without limitation,  any and all
claims under  California or federal  statutory or decisional  law  pertaining to
wrongful discharge, discrimination, or breach of public policy.

         You waive all rights and remedies  under Section 1542 of the California
Civil Code, which provides as follows:

                  A general release does not extend to claims which the creditor
                  does not know or  suspect to exist in its favor at the time of
                  executing  the  release,  which  if  known  by  it  must  have
                  materially affected its settlement with the debtor.

         Notwithstanding the foregoing or any other provision of this Agreement,
nothing  herein  changes the Company's  obligations to indemnify you as required
under  California  Labor Code Section 2802 or any applicable  Company  insurance
policy affecting its officers,  directors,  and/or employees.  You agree that if
the facts with respect to which this  Agreement is executed are found  hereafter
to be different  from the facts which you now believe to be true,  you expressly
accept and assume the risk of such possible  differences in facts and agree that
this Agreement shall be and remain effective notwithstanding such differences in
facts.

         You understand and agree that during the course of your employment, you
had access to proprietary or confidential  information belonging to the Company.
You  understand  and agree  that you will not  disclose,  transfer,  publish  or
otherwise use, either directly or indirectly, any of such information.

         You and the Company  agree that  confidentiality  of the  existence and
terms of this Agreement is of the essence.  You shall not disclose the terms and
this  Agreement,  including  without  limitation,  the  nature  and  payment  of
consideration referred to in this Agreement,  to any third party other than your
legal counsel, tax advisor, and/or members of your immediate family. You further
agree to make no voluntary  statements regarding this Agreement except as may be
necessary  for the  purposes  of audit,  taxation  returns or other  disclosures
required by law or as may be reasonably  necessary to conduct personal financial
business,  and to take no other  action  whatsoever  which might  reasonably  be
expected to result in any disclosure whatsoever  concerning this Agreement.  You
also agree not to advise, assist or influence in any manner whatsoever any other
past,  present or future  employee of the Company in asserting any claim against
the Company or in filing, preparing to file or prosecuting any lawsuit, charges,
complaints, petitions or other accusatory pleadings against the Company with any
governmental agency or in any court, provided, however, that providing testimony
or documents  pursuant to a valid  subpoena  shall not be considered a breach of
this provision.

         In  the  event   that  any   dispute   arises   with   respect  to  the
interpretation,  enforcement  or alleged breach of this  Agreement,  you and the
Company agree to resolve such dispute  through  arbitration  conducted  before a
single arbitrator according to the arbitration rules of the American Arbitration
Association.  The  arbitration  will be held in Palo Alto,  California,  and the
prevailing  party  shall  be  entitled  to  recover  its  reasonable  costs  and
attorneys' fees incurred in connection with such arbitration.

         This  Agreement  shall inure to the benefit of and be binding upon each
of the parties hereto and upon their successors, heirs and assigns.

         This  Agreement  is  entered  into by each  party  hereto  without  any
admission  of  liability  to each other,  but solely for the purpose of avoiding
further  uncertainty,  controversy  and  legal  expense.  Without  limiting  the
foregoing,  neither this  Agreement nor any  consideration  paid by either party
therefor, nor anything contained in this Agreement,  shall be taken or construed
to be an  inference  of admission by the Company with respect to any claims that
could be alleged.

         You  and the  Company  both  warrant  that no  promise,  inducement  or
agreement not expressed  herein has been made in connection with this Agreement;
that this Agreement  constitutes the entire agreement  between them, and cancels
and  supersedes all prior  communications  or  understandings  between them with
respect to the subject  matter of this  Agreement.  This  Agreement  may only be
varied or modified by a written document executed by you and the Company.

         You  acknowledge  that you are aware  that  under  the  Older  Workers'
Benefit Protection Act, you have twenty-one (21) calendar days to decide whether
to enter  into this  Agreement.  You  acknowledge  and agree  that you have been
allowed  twenty-one-(21)  calendar  days to consider  this  Agreement or, if you
execute it prior to the  expiration  of that  twenty-one  (21) day  period,  you
voluntarily  waived any time  remaining.  You further  acknowledge  that you are
aware that under the Older Workers'  Benefit  Protection Act you may revoke this
Agreement  within seven (7) calendar days after it is signed.  You further agree
that this Agreement shall not be effective  until after this  revocation  period
has  expired and that you are aware that in the event you timely  exercise  your
right of rescission, you will have no rights under this Agreement.

         You  acknowledge  and agree  that you have had had the  opportunity  to
consult  with the advisor of your choice with  respect to the matters  which are
the subject of this Agreement. You further agree that you have entered into this
Agreement freely and voluntarily.

         This  Agreement  shall in all  respects be  interpreted,  enforced  and
governed under the laws of the State of California.

         In the event that any  provision  of this  Agreement  be declared or be
determined  in a court of  competent  jurisdiction  to be  illegal,  invalid  or
unenforceable, the legality, validity and enforceability of the remaining parts,
terms  or  provisions  shall  not  be  affected   thereby,   and  said  illegal,
unenforceable  or invalid  part,  term or provision  shall be deemed not to be a
part of this Agreement.

         Please indicate your acceptance of this Agreement by executing below on
the signature  line. A fully executed copy of this Agreement will be returned to
you for your records.


                                    ORYX TECHNOLOGY CORP.



Dated: June  ___, 1997              By __________________________
                                       Phil Micciche
                                       President and Chief Executive Officer



Dated: June ___, 1997               By __________________________
                                       Arvind Patel

Exhibit 1 Schedule  and Copy of Options



6/6/97    Patel Employment Severance 62375





                        ARVIND PATEL STOCK OPTION STATUS
                                     4/25/97
<TABLE>

<S>                       <C>                  <C>               <C>                   <C>                <C>
Award #                  Award Date          # Options        Exercise Price   # Vested @ 4/26/97     # With Full
-------                  ----------          ---------        --------------   ------------------     -----------
                                                                                                     Acceleration

000021                    4/26/93               39,000           $1.00                 37,172              39,000
000053                    2/28/95                2,569           $1.36                  2,569               2,569
000101                    4/1/96               200,000           $1.97                 87,500             200,000
                          4/25/97              100,000           $1.94                      0             100,000
                                               -------                                      -             -------

                          4/25/97              341,569                                127,241             341,569
                                               =======                                =======             =======

</TABLE>