Document:

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                                                                    Exhibit 10.9

                             EMPLOYMENT AGREEMENT

     This AGREEMENT is made this 19th day of October, 2001 and effective as of
the date set forth below between Discount Rx, Inc., a Louisiana corporation (the
"Company"), and Gregory Michael Johns (the "Employee").

     WHEREAS, the Employee and the Company entered into an Employment Agreement
dated August 31, 2000 (the "Prior Agreement") and wish to amend, modify and
replace the Prior Agreement with this Agreement'

     WHEREAS, the Employee possesses skills and expertise which make him
valuable to the Company and which will contribute to the Company's future
success; and

     WHEREAS, the Company desires to employ the Employee and the Employee
desires to serve in the employ of the Company upon the terms and conditions set
forth herein.

     NOW, THEREFORE, in consideration of the mutual covenants and agreements
contained herein and for other good and valuable consideration, the receipt and
sufficiency whereof is hereby acknowledged, the parties hereby agree as follows:

     1.   Employment, Acceptance and Term
          -------------------------------

          1.1  Subject to the terms and conditions of this Agreement, the
Company hereby agrees to employ the Employee, and the Employee hereby agrees to
serve the Company, commencing on the Effective Date (as defined below), as its
Vice President of Sales and Purchasing for the term set forth in Section 1.2
below. The Effective Date shall be the Effective Date of the First Amended Plan
of Reorganization filed by Penner & Welsch, Inc. Until the Effective Date, the
Company shall owe no obligations to the Employee.

          1.2  The term of this Agreement shall be for a three (3) year period
commencing as of the Effective Date and ending on the third anniversary hereof.
This Agreement may be renewable by mutual agreement of the Company and the
Employee for subsequent terms of one (1) year by giving the Employee notice of
such renewal at least sixty (60) days prior to the end of any term hereof.

     2.   Duties and Authority
          --------------------

     During the term of this Agreement, the Employee shall devote his full time
and energies to the business and affairs of the Company. The Employee shall not
accept any other employment during the term of this Agreement, nor shall he
permit such personal business interests as he may have to interfere with the
performance of his duties hereunder. The Employee agrees to use his best
efforts, skill and abilities to promote the Company's interests and to
faithfully and diligently perform, to the best of his abilities, such duties as
may from time to time be assigned to him by the Employee's immediate supervisor.
It is understood that Employee's base of operation will be the New Orleans area,
and he will not be required to move during the term of the contract. All such
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services shall be rendered for and in consideration of the compensation payable
to the Employee under Section 3 hereof.

     3.   Compensation
          ------------

          3.1  Salary. The Employee shall receive an annual base salary during
               ------
the term of this Agreement of $125,000 payable in installments consistent with
the Company's normal payroll schedule. The Company shall review this base salary
at annual intervals, and may increase the Employee's annual base salary from
time to time as the Company deems to be appropriate.

          3.2  Additional Compensation for Execution of Non-Competition
               --------------------------------------------------------
Agreement. As a condition of this Agreement, Employee has agreed to execute that
---------
certain Restrictive Covenants Agreement and Agreement Not to Compete (the "Non-
Competition Agreement"). As consideration for Employee executing the Non-
Competition Agreement, the Employee shall also be entitled to receive such
additional compensation as set forth in Exhibit "A" attached hereto and made a
part hereof.

     4.   Expenses.
          --------

     The Company shall pay or reimburse the Employee for all reasonable and
necessary expenses incurred by the Employee, and authorized by the Company,
during the term of this Agreement in connection with the business of the
Company; provided, however, the Employee shall render to the Company a complete
and accurate accounting of all such expenses in accordance with the
substantiation requirements of Section 274 of the Internal Revenue Code of 1986,
as amended.

     5.   Additional Benefits
          -------------------

     During the term of this Agreement the Employee shall be allowed to
participate (subject to uniformly applicable requirements for participation) at
the Company's expense in any health, medical, dental, disability, insurance or
pension plan made available by the Company for the benefit of its employees
generally, and shall be entitled to an annual vacation of two (2) weeks for the
first year hereof with full pay and allowances and two (2) weeks in subsequent
years to be taken at such time or times as shall be mutually agreed between the
Company and the Employee. The Company shall provide Employee with dental and
health benefits reasonably comparable to that of Employee's previous employment.

     6.   Discharge for Cause
          -------------------

     The Company shall have the right to terminate this Agreement and to
discharge the Employee at any time for "cause". As used herein, termination for
"cause" shall mean termination by action of the Company's Board of Directors
based upon the occurrence of any of the following:

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          (i)   Employee commits, is arrested, or otherwise officially charged
                with a felony or any crime involving moral turpitude, or any
                other criminal activity or unethical conduct which, in the good
                faith opinion of the Company, would impair Employee's ability to
                perform his duties hereunder or would impair the business
                reputation of the Company.
          (ii)  Employee commits an act, or omits to take action in bad faith.
          (iii) Employee commits a proven intentional act which destroys
                property belonging to the Company, or it is proven that employee
                has stolen funds or property of the Company or any affiliate of
                the Company.
          (iv)  Employee fails or refuses to comply with the policies or
                regulations of the Company as set forth in the DrugMax and
                Affiliates, (including Employer) Employee Handbook, a copy of
                which, Employee hereby acknowledges that he has received.
          (v)   Employee uses illegal drugs or alcohol to an extent which
                materially impairs the Employee's performance of his duties
                hereunder.
          (vi)  Employee knowingly and continually violates a material term of
                this Agreement.

     7.   Termination of Agreement
          ------------------------

     Notwithstanding the provisions of Section 1 hereof, this Agreement shall
terminate upon the happening of any one of the following events and the Company
shall have no obligations to the Employee hereunder for any period after the
effective date of such termination:

                (i)   automatically and without notice, if the Employee shall
die during the term hereof;

                (ii)  by resolution of the Company's Board of Directors and upon
not less than sixty (60) days' prior written notice to the Employee if the
Employee shall become "disabled" as defined in any group disability policy
maintained by the Company for the benefit of its employees; provided that in the
event of such termination, the Employee shall be entitled to receive all
compensation and benefits payable to him pursuant to this Agreement until the
date set forth in such notice;

                (iii) automatically and without notice if the Employee
voluntarily terminates his employment with the Company without the Company's
consent;

                (iv)  upon termination of the Employee's employment with the
Company by mutual agreement between the Company and the Employee;

                                       3
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                (v)   upon written notice to the Employee of action taken by the
Board of Directors of the Company to discharge the Employee for "cause" pursuant
to Section 6 of this Agreement, which notice shall specify the reason for such
discharge; provided, however, that if the Board notifies the Employee of action
taken to discharge the Employee for any of the reasons set forth in either
subsection (iv), (v) or (vii) of Section 6, the Employee shall have 30 days from
receipt of such written notice to cure the specified deficiencies. If the Board,
in its sole discretion, is not satisfied that such deficiencies have been cured,
it shall so notify the Employee and the Employee shall be terminated effective
on the date of such notification.

     8.   Non-Competition
          ---------------

     Employee agrees that he and the Company shall execute and be bound by the
terms of the Restrictive Covenants Agreement and Agreement Not to Compete
executed contemporaneously herewith and incorporated herein by reference.

     9.   Employment Policies
          -------------------

     Employee hereby acknowledges the receipt of the DrugMax Employee Handbook.

     10.  Notices
          -------

     All notices hereunder and other communications required or permitted to be
given to either party hereto shall be in writing and delivered by hand or sent
by overnight or by certified mail, return receipt requested, postage prepaid,
addressed to such party at its address referred to above, or at such other
address as such party may from time to time designate by written notice to the
other party hereto, given in accordance with the provisions of this Section 9.
Any such notice or other communication shall be deemed to have been given on the
date delivered by hand or the date actually received.

     11.  Waivers
          -------

     No waiver by either party hereto of any breach of any provision of this
Agreement shall be deemed to constitute a waiver of any other breach of such
provision or a waiver of any breach of any other provision of this Agreement.

     12.  Agreement Complete; Amendments
          ------------------------------

     This Agreement embodies the entire agreement and understanding of the
parties hereto in respect of the subject matter contained herein. There are no
restrictions, promises, representations, warranties, covenants or undertakings
other than those expressly set forth or referred to herein. This Agreement
supersedes all prior agreements and understandings between the parties with
respect to such subject matter, including without limitation the Prior
Agreement. This Agreement may not be amended, supplemented, cancelled or
discharged except by a written instrument executed by the party to be charged.

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     13.  Non-Assignability
          -----------------

     The respective rights and obligations hereunder of the parties hereto are
personal to such parties and shall not be transferred or assigned by them, in
whole or in part, to any other person, firm or corporation; provided that the
Company may assign this Agreement and the benefits hereunder without the consent
of the Employee, without being relieved from any liability hereunder, to any of
its direct or indirect "affiliates" or "associates" (as such terms are defined
in Rule 405 of the Rules and Regulations promulgated under the Securities Act of
1933). Furthermore, it is understood that the rights and obligations of the
Company will inure to the benefit of and will be binding upon the successors and
assigns of Company.

     14.  Governing Law
          -------------

     This Agreement shall be governed by and construed in accordance with the
laws of the State of Louisiana applicable to agreements made and to be performed
entirely within such State.

     15.  Waiver of Jury Trial; Binding Arbitration.
          -----------------------------------------

     Employer and Employee, on behalf of themselves and their respective
officers, directors, employees, agents, successors and assigns, agree that if
they cannot resolve any dispute or claim between themselves, including but not
limited to any dispute as to whether a particular matter must be arbitrated or
any claim that a party was fraudulently induced into entering this Agreement or
any part of this Agreement, the dispute or claim shall be decided solely and
exclusively by final and binding arbitration. The location of the arbitration
shall be in New Orleans, Louisiana. The arbitration shall be in lieu of
litigation in State or Federal Court and in lieu of trial by judge or by jury,
and shall instead be conducted American Arbitration Association ("AAA") in
accordance with its applicable arbitration rules and procedures then in effect,
except as modified by this paragraph. The parties agree that there shall only be
one arbitrator and that such arbitrator shall be a former or retired judge. The
parties agree that such arbitrator shall be selected by the parties in
accordance with the then existing arbitration rules and procedures of AAA. The
parties hereby agree to commence any arbitration within ninety (90) days
following a demand therefor made by either of the parties and to conclude such
arbitration proceeding within thirty (30) days following its inception. The
arbitration may award any extensions of time deadlines to the prevailing party
as may be appropriate. Judgment upon the award rendered by the arbitrator(s) may
be entered in any court having jurisdiction, and the parties shall be entitled
to utilize the courts to enforce the award. The parties hereby knowingly,
voluntarily, and irrevocably waive their right to a trial by jury and agree that
if the foregoing binding arbitration provision is determined for any reason to
be unenforceable or inapplicable to a particular dispute, then such dispute
shall be decided solely by a judge (without the use of a jury) sitting in a
court of competent jurisdiction. This binding arbitration and jury trial waiver
provision shall survive termination of this Agreement.

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     16.  Captions
          --------

     All captions and headings herein contained are inserted for convenience of
reference only and shall not affect the meaning or interpretation of this
Agreement.

     IN WITNESS WHEREOF, the parties have executed this Employment Agreement as
of the day and year first above written.

                                       Discount Rx, Inc., Employer

                                       By: /s/ Jugal K. Taneja
                                           ------------------------------------
                                                Name:  Jugal K. Taneja
                                                Title: Chief Executive Officer

                                       EMPLOYEE:

                                       /s/ Gregory Michael Johns
                                       ----------------------------------------
                                       Gregory Michael Johns

                                       6
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                                    JOINDER
                                    -------

     DrugMax.com, Inc., a Nevada corporation, hereby joins in the Employment
Agreement for purpose of guaranteeing the obligations of the Company set forth
in Sections 3 of the Agreement and agreeing to the issuance of its shares as
contemplated in Exhibit A; provided, however, that Parent shall be entitled to
all of the defenses and rights of the Company as set forth in this Agreement.

                                    DRUGMAX.COM, INC.

                                    Guarantor

                                    By: /s/ Jugal K. Taneja
                                        ---------------------------------
                                             Jugal K. Taneja

                                             Chief Executive Officer

                                       7
<PAGE>

                                   EXHIBIT A
                                   ---------

     Whereas, Discount Rx, Inc., a Louisiana corporation (the "Company"),
desires to encourage Gregory Michael Johns' (the "Employee") sense of
proprietorship in the Company and its affiliates and to provide an incentive to
the Employee for remaining with and enhancing the value of the Company and its
affiliates, the Company hereby agrees to cause its parent company, DrugMax,
Inc., a Nevada corporation ("Parent") to pay to Employee the following
additional compensation:

1.   Company hereby grants to Employee non-qualified stock options (the
     "Options") to purchase up to a total of 100,000 shares of Common Stock of
     the Company at a price per share of $8.00 (the "Option Price") pursuant to
     the following provisions: Employee shall receive an option to purchase up
     to 33,333 shares of Common Stock within 60 days of the first anniversary of
     this Agreement if the Company attains at least $100,000.00 in gross profits
     during such year; Employee shall receive an option to purchase up to 33,333
     shares of Common Stock within 60 days of the second anniversary of this
     Agreement if the Company attains at least $100,000.00 in gross profits
     during such year; and Employee shall receive an option to purchase up to
     33,333 shares of Common Stock within 60 days of the third anniversary of
     this Agreement if the Company attains at least $100,000.00 in gross profits
     during such year. If gross profits do not exceed $100,000.00 for any given
     year during the term of the Employment Agreement, Employee shall not be
     entitled to any options during such year; provided that such event shall
     not prohibit Employee from being eligible to receive options upon the
     attainment of the above referenced performance goals in the remaining years
     of this Employment Agreement. Notwithstanding the foregoing, if Employee is
     terminated by the Company for any reason without Cause, as defined in the
     Employment Agreement, then Employee shall immediately be granted options to
     purchase the entire 100,000 shares of stock contemplated above. In the
     event the Employee is terminated for Cause or terminates the Employment
     Agreement, all options which have not been exercised shall automatically
     and immediately be canceled.

2.   During the term of this Employment Agreement, the Company will pay Employee
     a $500.00 per month allowance for car and car related expenses payable on
     the 15/th/ day of each month in accordance with the payroll practices of
     Employer in effect from time to time.

3.   Employee is hereby granted an option (the "Option") to purchase up to a
     total of 40,000 shares of the common stock, $.001 par value per share, of
     the DrugMax, Inc. (the "Common Stock"). The exercise price of the Option is
     $5.75, the closing price of the stock on October 18, 2001. This option
     shall terminate on the fifth anniversary of this Agreement; provided,
     however, that if Employee shall terminate the Agreement for any reason or
     the Company should terminate this Agreement for cause (as defined in this
     Agreement), the Employee shall have 30
<PAGE>

     days from the date of termination to exercise this Option, after which
     period this Option shall immediately terminate. The Option is not intended
     to qualify as an incentive stock option within the meaning of Section 422
     of the Internal Revenue Code of 1986, as amended. When Employee elects to
     exercise the Option, he shall give written notice of such exercise to the
     Corporate Secretary of the Company. The notice of exercise shall state the
     number of shares of Common Stock as to which the Option is being exercised
     and shall be accompanied by the exercise price in cash. Employee may
     exercise the Option to purchase all or any whole number portion of the
     number of shares of Common Stock which Employee is then permitted to
     purchase hereunder (but not for any fractional shares). Employee's rights
     under the Options may not be assigned or transferred. Upon the death of
     Employee, this Option shall immediately terminate. The Company may from
     time to time impose any conditions on the exercise of the Option as it
     deems necessary or advisable to ensure that the Option granted hereunder,
     and each exercise thereof, satisfies the applicable requirements of federal
     and state securities laws. Such conditions to satisfy applicable federal
     and state securities laws may include, without limitation, the partial or
     complete suspension of the right to exercise the Option until the offering
     of the shares covered by the Option have been registered under the
     Securities Act of 1933, or the printing of legends on all stock
     certificates issued to Employee referring to the restrictions on the
     transferability of such shares.

4.   In consideration of the non-competition covenant made by Employee pursuant
     to this Agreement, DrugMax, Inc. shall promptly issue to Employee 25,000
     shares of Common Stock (the "Shares").  In connection with such issuance,
     Employee hereby represents and warrants to the Company as follows:

          a.   Employee understands that the Shares will not be registered under
               the Securities Act of 1933, as amended (the "Securities Act"), or
               any state securities laws on the grounds that the issuance of the
               Shares is exempt from registration pursuant to Section 4(2) of
               the Securities Act under the Securities Act and applicable state
               securities laws, and that the reliance of the Company on such
               exemptions is predicated in part on Employee's representations,
               warranties, covenants and acknowledgments set forth herein.

          b.   Employee represents and warrants that Employee has not taken the
               Shares with a view to resale or other distribution within the
               meaning of the Securities Act and the rules and regulations
               thereunder and Employee agrees that Employee shall not distribute
               any of the Shares in violation of the Securities Act and the
               rules and regulations thereunder and any applicable Blue Sky
               regulations.

          c.   Employee acknowledges that the Common Stock shall bear a
               restrictive legend in substantially the following form:
<PAGE>

THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933.
THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE
OF AN EFFECTIVE REGISTRATION STATEMENT AS TO THE SECURITIES UNDER SAID ACT OR AN
OPINION OF COUNSEL SATISFACTORY TO THE CORPORATION THAT SUCH REGISTRATION IS NOT
REQUIRED.

In addition, the Shares may bear any legend required by applicable securities or
Blue Sky laws.

         d.    The principal residence of Employee is in the State of Louisiana.

         e.    Employee (i) acknowledges that the Shares must be held
               indefinitely unless subsequently registered under the Securities
               Act or an exemption from registration is available, (ii) is aware
               that any routine sales of Shares made pursuant to Rule 144 under
               the Securities Act may be made only in limited amounts and in
               accordance with the terms and conditions of that rule and that in
               such cases where Rule 144 is not applicable, compliance with some
               other registration exemption will be required, and (iii) is aware
               that Rule 144 is not currently available for use for resale of
               any of the Shares.

         f.    Employee represents and warrants to the Company that Employee,
               either alone or together with the assistance of professional
               advisors, has such knowledge and experience in financial and
               business matters such that Employee is capable of evaluating the
               merits and risks an investment in the Shares.

         g.    Employee confirms that he has had the opportunity to ask
               questions of and receive answers from the Company concerning the
               terms and conditions of its investment in the Shares, and has
               received to his satisfaction, such additional information, in
               addition to that set forth herein, about the Company's operations
               and the terms and conditions of the offering as they have
               requested.

         h.    Employee agrees that he will not sell or otherwise transfer or
               dispose of the Shares or any interest therein without first
               complying with Section 3 of this Agreement and either of the
                              ---------
               following conditions, the expenses and costs of satisfaction of
               which shall be fully borne and paid for by Employee:

                    (i)  the Company shall have received a written legal opinion
from Employee's legal counsel, which opinion and counsel shall be satisfactory
to the Company in the exercise of its reasonable judgment, or a copy of a "no-
action" or interpretive letter of the SEC, specifying the nature and
circumstances of the proposed transfer and indicating that the proposed transfer
will not be in violation of any applicable bankruptcy laws or the registration
provisions of the Securities Act and the rules and regulations promulgated
thereunder; or
<PAGE>

                    (ii) the Company shall have received an opinion from its own
counsel to the effect that the proposed transfer will not be in violation of any
applicable bankruptcy laws or the registration provisions of the Securities Act
and the rules and regulations promulgated thereunder.<PAGE>

                                                                   Exhibit 10.10

                        RESTRICTIVE COVENANTS AGREEMENT
                         AND AGREEMENT NOT TO COMPETE

     This AGREEMENT (the "Agreement") is made this 19/th/ day of October, 2001,
and is effective as of the date indicated on the signature page hereof, by and
between Discount Rx, Inc., ("Employer") and Gregory Michael Johns, ("Employee"),
the employee of Employer identified on the signature page hereof, and the entity
formerly known as Penner & Welsch, Inc., by and through its President, Gregory
Michael Johns ("P&W").

                                   RECITALS

     Employer is engaged in the business of wholesale distribution of
pharmaceuticals including sales and distribution in the territory described
elsewhere in this Agreement. Employee is employed by Employer, pursuant to an
Employment Agreement executed by Employer and Employee contemporaneously
herewith.

     Employer has entered into that certain Agreement for Purchase and Sale of
Assets of Penner & Welsch, Inc., and had closed the transactions contemplated
therein contemporaneously herewith. As such, Employer has acquired the Operating
Assets of P&W, including, but not limited to the name "Penner & Welsch, Inc.,"
business records, the goodwill associated with P&W's business, and all
proprietary information or property relating to P&W's business or business
prospects.

     Employer has developed, and continues to develop, certain proprietary
information regarding its business operations and customers (the "Proprietary
Company Information") that is very valuable to Employer and the continued
confidentiality of which is essential to Employer's continued success.  In the
course of his employment, Employee will or has gained knowledge of the
Employer's Proprietary Company Information including but not limited to the
business, affairs, clients and methods of Employer. In the course of his
employment, Employee will have or has access to lists of Employer's clients, and
their needs and will or has become personally known to and acquainted with
clients serviced by Employer, establishing a personal relationship with such
clients for the benefit of Employer. In the course of his employment, Employee
will have or has access to lists of Employer's employees and employee candidates
recruited, hired and placed through Employer and will or has become personally
known to and acquainted with such employees thereby establishing a personal
relationship with such employees for the benefit of Employer. Employee will be
or has been trained at the expense of Employer in the sale of Employer's
services through the use of techniques, systems, forms and methods used and
devised by Employer.

     Employee and P&W acknowledge that Employer would suffer irreparable harm if
Employee were to use such knowledge, relationships and information (including
Proprietary Company Information) for any purpose other than the benefit of
Employer.
<PAGE>

     Employer and Employee acknowledge that Employee has executed
contemporaneously herewith an Employment Agreement and that Employee has been
granted certain rights to an Option, as defined therein, as well as 25,000
shares of Common Stock of DrugMax, Inc. ("Common Stock"), all of which is more
completely set forth therein.  Employee acknowledges that the covenants,
agreements, and obligations he makes herein are made in partial consideration of
the grant by Discount Rx, Inc. of the Option and the Common Stock.

                 EMPLOYER, EMPLOYEE, AND P&W AGREE AS FOLLOWS:

1.   Proprietary Company Information.  Employee and P&W acknowledge and agree
     that Proprietary Company Information means the information described above
     and any and all data and information relating to the business of Employer
     (i) of which the Employee becomes aware as a consequence of his employment
     by Employer, (ii) which has actual or potential economic value to Employer
     from not being generally known to other persons who could obtain economic
     value from its disclosure or use, and (iii) which is the subject of
     reasonable efforts by Employer to maintain its secrecy or confidentiality.
     Proprietary information may include, but is not limited to, client lists,
     sales and marketing information, identity and location of Employer's
     clients and suppliers, fee schedules, pricing information, client account
     records, training and operations material and memoranda, personnel records,
     employee lists, code books, pricing information, details of client or
     supplier contracts, operational methods, product or service development
     techniques or plans, new personnel acquisition plans, financial information
     concerning or relating to the business, accounts, clients, employees and
     affairs of Employer, and all physical embodiments of the foregoing, if such
     information is given to, developed by or acquired by Employee during
     Employee's employment with Employer.  Employee acknowledges that the
     relationships Employee establishes with Employer's clients are a result of
     the employment relationship and any beneficial interest derived from such
     relationship is proprietary to Employer.

     Employee and P&W acknowledge and agree that all Proprietary Company
     Information, and all physical embodiments thereof, are confidential to, and
     shall be and remain the sole and exclusive property of, Employer. Upon
     request by Employer, and in any event upon termination of his employment
     with Employer for any reason, as a prior condition to receiving any final
     wage or salary check, Employee shall promptly deliver to Employer all
     property belonging to Employer including, without limitation, all
     Proprietary Company Information (and embodiments thereof) then in
     Employee's custody, control or possession.

2.   Restrictions on Disclosure of Proprietary Company Information. In
     consideration of Employee's employment and/or continued employment,
     Employee covenants and agrees that Employee shall not at any time, whether
     or not employed by the Employer (i) divulge to any person (other than
     Employer) any Proprietary Company Information but shall keep secret and
     retain in strictest confidence any and all such Proprietary Company
     Information, (ii) use any such Proprietary Company Information for his own
     benefit or for the benefit of any other person (other than Employer) or
     (iii) permit any person (other than Employer) to examine any documents or
     records which contain or are derived from or in any way disclose any such
     information or data; provided, however, that Employee

                                       2
<PAGE>

     shall be free to disclose any such information or data to the extent, but
     only to the extent, such information or data has intentionally and
     explicitly been made public by Employer or is or becomes otherwise
     generally available to the public other than as a result of an unauthorized
     disclosure by anyone, or Employee is required by applicable law or the
     order of any court to disclose such information or data. Further P&W
     covenants and agrees that P&W shall not at any time (i) divulge to any
     person (other than Employer) any Proprietary Company Information but shall
     keep secret and retain in strictest confidence any and all such Proprietary
     Company Information, (ii) use any such Proprietary Company Information for
     its own benefit or for the benefit of any other person (other than
     Employer) or (iii) permit any person (other than Employer) to examine any
     documents or records which contain or are derived from or in any way
     disclose any such information or data; provided, however, that P&W shall be
     free to disclose any such information or data to the extent, but only to
     the extent, such information or data has intentionally and explicitly been
     made public by Employer or is or becomes otherwise generally available to
     the public other than as a result of an unauthorized disclosure by anyone,
     or Employee is required by applicable law or the order of any court to
     disclose such information or data.

3.   Territory.  Employer, Employee, and P&W agree that the Territory subject to
     the covenants of this Agreement shall extend to each and every parish or
     county specified on the attached Schedule A because Employer, Employee and
     P&W agree and acknowledge that Employer currently conducts its business of
     wholesale distribution of pharmaceuticals in each and every parish or
     county listed on Schedule A.

     Employer and Employee agree that upon termination of the employment
     relationship, Schedule A shall be considered and treated as expanded to
     include any additional counties or parishes where Employee may after
     execution of this Agreement provide or have provided services for Employer,
     even if Employer and Employee do not actually update Schedule A to reflect
     such expansion.

4.   Non-Solicitation of Employer's Clients.   In consideration of Employee's
     employment and/or continued employment, and Employer's providing Employee
     with Proprietary Company Information and training, Employee covenants and
     agrees that for a period of one (1) year following termination of
     employment for any reason, Employee will not solicit, contact, or
     communicate with, directly or by assisting others, for his own competing
     business or the competing business of another, for the wholesale
     distribution of pharmaceuticals to clients of Employer's business. The
     restrictions in this Paragraph are valid only in the Territory specifically
     described in Paragraph 3.

5.   Non-Recruitment of Employer's Employees.   In consideration of Employee's
     employment and/or continued employment and training, and Employer's
     providing Employee with Proprietary Company Information, Employee covenants
     and agrees that for a period of one (1) year following termination of
     employment for any reason, Employee will not recruit or hire, or attempt to
     recruit or hire, directly or by assisting others, any other employee of
     Employer who works or worked within such Territory specifically described
     in Paragraph 3 prior to Employee's termination from employment.

                                       3
<PAGE>

6.   Non-Compete Covenant. Employee covenants and agrees that for a period of
     one (1) year following Employee's termination, for any reason, from
     Employer, Employee shall not carry on or engage in the business of
     wholesale distribution of pharmaceuticals to its clients, either as a
     partner, principal, stockholder, or otherwise, in the area or Territory
     described in Paragraph 3. Employee further agrees that for a period of one
     (1) year following termination for any reason from Employer, Employee will
     refrain from employment involving work, duties, or responsibilities that
     would violate the covenants set out in Paragraphs 2, 4, and 5. Further, P&W
     covenants and agrees that for a period of one (1) year from the Effective
     Date of this Agreement, it shall not carry on or engage in the business of
     wholesale distribution of pharmaceuticals to Employer's clients, in the
     area or Territory described in Paragraph 3.

7.   Covenant Not to Accept Employment with Customers or Suppliers. In further
     consideration of Employee's continued employment and in recognition of the
     substantial cost of training Employee, Employee will refrain from seeking
     or accepting employment with any current or former customer or supplier of
     the Employer without written consent by the Employer so long Employee is
     employed by the Employer and for a period of six months following
     termination of employment from the Employer.

8.   Remedies. Employer, Employee, and P&W agree that because the rights of
     Employer hereunder are unique, any failure of Employee or P&W to perform
     and comply with Employee's or P&W's respective obligations under this
     Agreement may cause irreparable harm and injury to Employer for which any
     remedies at law may be inadequate. Accordingly, Employee, Employer and P&W
     agree that Employee's or P&W's actual, threatened or attempted breach of
     Employee's or P&W's respective obligations or covenants set forth in this
     Agreement, shall entitle Employer to recover damages for any loss sustained
     and the profit of which Employer has been deprived. Additionally, upon such
     breach, Employer is entitled, without bond, to temporary and permanent
     injunctions enjoining and restraining such breach, without Employer being
     required to show actual damages or irreparable injury.

9.   Severability. Employer, Employee, and P&W desire that this Agreement be
     enforced to the fullest extent permissible under the laws and public
     policies of each state to which this Agreement is applicable. Accordingly,
     if any provision of this Agreement or the application thereof to any person
     or circumstance is invalid or unenforceable to any extent, the remainder of
     this Agreement and the application of such provision to other persons or
     circumstances shall not be affected thereby and shall be enforced to the
     greatest extent permitted by law.

10.  Waiver of Breach. The waiver by a party of a breach of any provision of
     this Agreement shall not operate or be construed as a waiver of any
     subsequent breach. Further, Employer will not be deemed as a consequence of
     any act, delay, failure, omission, forbearance or other indulgence granted
     by it from time to time or for any other reason: (i) to have waived, or to
     be estopped from exercising, any of its rights or remedies under this
     Agreement or (ii) to have modified, changed, amended, terminated,

                                       4
<PAGE>

     rescinded, or superseded any of the terms of this Agreement unless such
     waiver, modification, amendment, change, termination, rescission, or
     supercession is express, in writing and signed by Employer's authorized
     officer. A waiver expressly made in writing on one occasion will be
     effective only in that specific instance and only for the precise purpose
     for which given, and will not be construed as a consent to or a waiver of
     any right or remedy on any future occasion. No notice to or demand on
     Employee will entitle Employee to any other or future notice or demand in
     similar or other circumstances.

11.  Trade Secrets. This Agreement does not limit rights which Employer has or
     may have under any applicable law with respect to information which
     constitutes a trade secret.

12.  Entire Agreement. This Agreement constitutes the entire understanding
     between Employer and Employee with respect to the matters provided for
     herein, and supersedes all prior discussions, negotiations, commitments,
     writings and undertakings related hereto.

13.  Amendment. The parties may amend, modify, supplement or terminate this
     Agreement in any manner as may be agreed upon in writing by the parties.

14.  Counterparts. This Agreement may be executed by the parties in one (1) or
     more counterparts, each of which shall be deemed an original and shall
     constitute one and the same instrument.

15.  Choice of Law. This Agreement shall be governed by and construed in
     accordance with the internal substantive laws and not the choice of law
     rules of the State of Louisiana.

16.  Waiver of Jury Trial. Employer, Employee, and P&W, hereby knowingly,
     voluntarily, and irrevocably waive their right to a trial by jury and agree
     that in any legal proceeding arising out of or relating to this agreement
     or the transactions contemplated hereby such dispute shall be decided
     solely by a judge (without the use of a jury) sitting in a court of
     competent jurisdiction. This jury trial waiver provision shall survive
     termination of this Agreement.

17.  Attorney Fees. If Employer brings a claim or action alleging a breach of
     this Agreement, Employer shall be entitled to recover its reasonable
     attorney fees in addition to any other damages or costs which are
     recoverable.

18.  Notices. Any notice or other communication required or permitted to be
     given or made by any party to another in connection with this Agreement
     shall be given in writing and served by depositing same in the United
     States mail, postage prepaid and registered or certified with return
     receipt requested, as follows: if to the Company, then to the following
     address: Discount Rx, Inc., 12505 Starkey Road, Suite A, Largo, Florida
     33773; if to the Employee, then to his or her address on record with the
     Company.

19.  Survival. The obligations of the parties shall survive termination of this
     Agreement to the full extent necessary to protect the interests of the
     party in whose favor they run.

                                       5
<PAGE>

20.  Headings. The headings used in this Agreement are used merely for the
     convenience of the parties, and in no way are meant to limit the meaning or
     intent of the language contained therein.

21.  Assignment. The rights and obligations set forth in this Agreement shall
     bind and inure to the benefit of any and all parents, subsidiaries,
     divisions, affiliates of Employer, and/or to any successors or Employer,
     and/or to any assignee of all or substantially all of Employer's business
     or properties with respect to which Employee shall be employed. Employer
     may assign this Agreement, in whole or in part, to any other party.
     Employee may not assign this Agreement.

22.  Acknowledgment. Employee hereby acknowledges that he has read, understands
     and expressly agrees to the terms of this Agreement, including without
     limitation the provisions governing the length of the agreements not to
     solicit or recruit or compete in violation of this Agreement, the waiver of
     the right to a trial by jury, and the choice of forum and governing law.
     Further, P&W, by and through its President, Gregory M. Johns, acknowledges
     that it has read, understands and expressly agrees to the terms of this
     Agreement, including without limitation the provisions governing the length
     of the agreements not to solicit or recruit or compete in violation of this
     Agreement, the waiver of the right to a trial by jury, and the choice of
     forum and governing law.

                                       6
<PAGE>

  IN WITNESS WHEREOF, the parties have executed this Agreement on the 19th day
of October, 2001.

                                         Discount Rx, Inc., Employer

                                     By: /s/ Jugal K. Taneja
                                         ----------------------------
                                         Name:   Jugal K. Taneja
                                         Title:  Chief Financial Officer

                                         /s/ Gregory M. Johns
                                         ----------------------------
                                         Gregory M. Johns, Employee

                                         Penner & Welsch, Inc.

                                     By: /s/ Gregory M. Johns
                                         ----------------------------
                                         Name:   Gregory M. Johns
                                         Title:  President

                                       7
<PAGE>

                                  Schedule A

                        RESTRICTIVE COVENANTS TERRITORY

                              Louisiana Parishes

           Jefferson             St. Charles                 Orleans

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