Document:

EXHIBIT 10.9

                              EMPLOYMENT AGREEMENT

         This Employment Agreement ("Agreement") is made and entered into as of
March 6, 2000 by and between SmartDisk Personal Storage Systems Corporation, a
Delaware corporation formerly known as "VST Acquisition, Inc." (the "Company"),
and James M. Giarrusso (the "Executive").

                                    RECITALS

         A. The Board of Directors of the Company (the "Board") desires to
ensure the Executive's employment with the Company and to compensate him
therefor.

         B. The Executive's execution and delivery of this Agreement is a
condition to the closing obligations of SmartDisk Corporation, a Delaware
corporation ("SmartDisk"), pursuant to an Agreement and Plan of Merger, dated as
of February 23, 2000, (the "Merger Agreement") among the Company, SmartDisk, VST
Technologies, Inc., a Delaware corporation, and certain "Shareholders" party
thereto.

         C. The execution of this Agreement is a material inducement for Company
and SmartDisk to enter into the Merger Agreement.

         D. The Board has determined that this Agreement will reinforce and
encourage the Executive's attention and dedication to the Company.

         E. The Executive is willing to make his services available to the
Company on the terms and conditions hereinafter set forth.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the premises and mutual covenants
set forth herein, the parties agree as follows:

         1. EMPLOYMENT.

                  1.1 GENERAL. The Company hereby agrees to employ the
Executive, and the Executive hereby agrees to serve the Company on the terms and
conditions set forth herein.

                  1.2 DUTIES OF EXECUTIVE. During the term of this Agreement,
the Executive shall serve as the Senior Vice President and General Manager of
the Company, shall diligently perform all services as may be assigned to him by
or under the direction of the President of the Company and shall exercise such
power and authority as may from time to time be delegated to him by the
Company's Board of Directors. The Executive shall devote substantially all of
his business time and attention to the business and affairs of the Company,
render such services to the best of his ability, and use his best efforts to
promote the interests of the Company.

                  1.3 PLACE OF PERFORMANCE. In connection with his employment by
the Company hereunder, the Executive shall perform his duties and obligations
hereunder primarily from the Company's offices located in Acton, Massachusetts,
except for required travel on the Company's business.

         2. TERM.

                  2.1 INITIAL TERM. The initial term of this Agreement, and the
employment of the Executive hereunder, shall be for the two-year period
commencing on the date hereof (the "Initial Term").

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                  2.2 RENEWAL TERMS. The Initial Term of this Agreement, and the
employment of the Executive hereunder shall automatically be renewed for
successive one year periods, unless the Company or the Executive provides
written notice to the other at least 30 days prior to the expiration of the
applicable term. The terms and conditions of any renewal term shall be the same
as those contained herein unless otherwise mutually agreed upon by the Company
and the Executive in a written supplement to this Agreement signed by the
Executive and the Company's President (the "Written Supplement"). In the event
that the Company delivers a notice of non-renewal, the Executive shall be
entitled to the compensation and benefits as if terminated pursuant to Section
5.4 and shall be subject to Section 6.1 as if terminated pursuant to Section
5.4.

         3. COMPENSATION.

                  3.1 BASE SALARY. The Executive shall receive a base salary at
the annual rate of $200,000 (the "Base Salary") during the Initial Term of this
Agreement, with such Base Salary payable in installments consistent with the
Company's normal payroll schedule, subject to applicable withholding and other
taxes. The Base Salary may, by action and in the sole discretion of the Board,
be increased at any time or from time to time. After the first anniversary of
this Agreement, the Board shall consider the performance of the Executive for a
possible merit increase in the Base Salary; provided that any such increase
shall be in the sole discretion of the Board.

                  3.2 BONUS COMPENSATION. In addition to the Base Salary, the
Executive shall be entitled to receive bonus compensation (the "Bonus
Compensation") during the Initial Term. The Board shall establish a performance
bonus formula with respect to Bonus Compensation pursuant to which the Executive
will be able to receive a target bonus of $60,000 per annum if the Company
achieves the specified level of financial results.

                  3.3 STOCK OPTIONS. Contemporaneously herewith, SmartDisk is
granting the Executive a non-qualified stock option to purchase 60,000 shares of
SmartDisk's common stock, the exercise price of which shall be established in
accordance with the SmartDisk option pricing policy in effect on the date
hereof. The option will be granted pursuant to the Company's 1999 Incentive
Compensation Plan (the "Incentive Plan") and be in customary form; provided that
the option will vest (ie, become exercisable) with respect to twenty-five
percent (25%) of the shares issuable upon exercise of such option on the first
anniversary date of this Agreement and thereafter vest as to six and one-quarter
percent (6.25%) of the subject shares on each subsequent quarter. For example,
such option will be exercisable with respect to 37.5% of the subject shares on
the 18-month anniversary of this Agreement. In the event of a "Change in
Control" (as defined in the Incentive Plan), fifty percent of the unvested
shares underlying the option shall vest on the effective date of a Change in
Control.

         4. EXPENSE REIMBURSEMENT AND OTHER BENEFITS.

                  4.1 REIMBURSABLE EXPENSES. During the term of the Executive's
employment hereunder, the Company, upon the submission of proper substantiation
by the Executive, shall reimburse the Executive for all reasonable expenses
actually and necessarily paid or incurred by the Executive in the course of and
pursuant to the business of the Company.

                  4.2 OTHER BENEFITS. The Executive shall be entitled to
participate in all medical, dental and hospitalization, group life insurance,
and any and all other plans as are presently and hereinafter provided by
SmartDisk to its executives on substantially the same terms as the other
executives and prior to December 31, 2000 in accordance with Section 7.5 of the
Merger Agreement. The Executive shall be entitled to vacations in accordance
with the Company's prevailing policy for its executives.

                  4.3 WORKING FACILITIES. The Company shall furnish the
Executive with an office, secretarial help and such other facilities and
services suitable to his position and adequate for the performance of his duties
hereunder.

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         5. TERMINATION.

                  5.1 TERMINATION FOR CAUSE. The Company shall at all times have
the right, upon written notice to the Executive, to terminate the Executive's
employment hereunder for "Cause" (as hereinafter defined). For purposes of this
Agreement, the term "Cause" shall mean (i) the failure or refusal of the
Executive to perform the duties or render the services reasonably assigned to
him from time to time by or under direction of the President of the Company
(except during reasonable vacation periods or sick leave), which failure or
refusal is not cured within 15 days of written notice by the Company; (ii) gross
negligence or willful misconduct by the Executive in the performance of his
duties as an employee of the Company, (iii) the conviction of the Executive of a
felony; (iv) the material breach by the Executive of any of the provisions of
Section 6.1, 6.2, 6.3 or 6.4 hereof; (v) the breach by the Executive of his
fiduciary duty or duty of trust to the Company, including the commission by the
Executive of an act of fraud or embezzlement against the Company, (vi) substance
abuse, or (vii) any other material breach by the Executive of any of the
material terms or provisions of this Agreement or any other agreement between
the Company and the Executive related to the Executive's employment, which other
material breach is not cured within ten (10) business days of written notice by
the Company. Upon any termination pursuant to this Section 5.1, the Executive
shall be entitled to receive any salary (other than Bonus Compensation) and
employment benefits which shall have accrued prior to the date of termination,
but shall not be entitled to any bonus or severance payments, salary or
employment benefits relating to periods subsequent to the date of termination,
subject to Executive's rights to continue medical and dental coverage under the
Company's group policy, at Executive's expense, as may be provided by law.

                  5.2 DISABILITY. The Company shall at all times have the right,
upon written notice to the Executive, to terminate the Executive's employment
hereunder, if the Executive shall, as the result of mental or physical
incapacity, illness or disability, become unable to perform his duties hereunder
for in excess of ninety (90) days in any 12-month period. Upon any termination
pursuant to this Section 5.2, the Company shall pay to the Executive (i) the
balance of Executive's salary and other benefits for the remainder of the month
in which disability occurs, and (ii) a pro rata portion of any Bonus
Compensation to which Executive would be otherwise entitled under Section 3.2
based upon the ratio the number of months employed (calculated through the end
of the then current month) bears to the bonus period of twelve (12) months and
the Company shall have no further liability hereunder (other than for
reimbursement for reasonable business expenses incurred prior to the date of
termination, subject, however to the provisions of Section 4.1).

                  5.3 DEATH. In the event of the death of the Executive during
the term of his employment hereunder, the Company shall pay to the estate of the
deceased Executive (i) the balance of Executive's salary and other benefits for
the remainder of the month in which death occurs, and (ii) a pro rata portion of
any Bonus Compensation to which Executive would be otherwise entitled under
Section 3.2 based upon the ratio the number of months employed (calculated
through the end of the then current month) bears to the bonus period of twelve
(12) months and the Company shall have no further liability hereunder (other
than for reimbursement for reasonable business expenses incurred prior to the
date of the Executive's death, subject, however to the provisions of Section
4.1).

                  5.4 TERMINATION BY THE COMPANY WITHOUT CAUSE. At any time, the
Company shall have the right to terminate this Agreement and Executive's
employment with the Company by providing at least 30 days prior written notice
to the Executive; provided, however, that, the Company shall (i) pay to the
Executive any unpaid Base Salary accrued through the effective date of
termination specified in such notice, (ii) pay Executive's Base Salary in the
manner set forth in Section 3.1 hereof until the date which is three months
following such effective date (the "Severance Date") and (iii) pay a pro rata
portion of any Bonus Compensation to which the Executive would be otherwise
entitled under Section 3.2 based upon the ratio the number of months employed
bears to the bonus period of twelve (12) months. Following the effective date of
such termination, the Company shall continue to pay for or provide to the
Executive such benefits as may have been provided to the Executive in accordance
with Section 4.2 immediately prior to such termination (subject to changes in
the terms of such coverage by the provider as may be applicable

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to the Company as a whole) for a period ending on the earliest of (A) the date
of the Executive's employment by a third party on a substantially full-time
basis, (B) the death of the Executive and (C) the Severance Date. Except as
expressly provided herein, the Company shall have no further liability hereunder
(other than for reimbursement for reasonable business expenses incurred prior to
the date of termination, subject, however to the provisions of Section 4.1).

                  5.5 TERMINATION BY EMPLOYEE. At any time, the Executive may
terminate this Agreement and Executive's employment with the Company by
providing at least 30 days prior written notice to the Company. Upon termination
of this Agreement pursuant to this Section 5.5., the Executive shall be entitled
to receive any salary (other than Bonus Compensation) and employment benefits
which shall have accrued prior to the date of termination, but shall not be
entitled to any bonus or severance payments, salary or employment benefits
relating to periods subsequent to the date of termination, subject to
Executive's rights to continue medical and dental coverage under the Company's
group policy at Executive's expense, as may be provided by law.

         6. RESTRICTIVE COVENANTS.

                  6.1 NON-COMPETITION. While employed by the Company and for a
period of two years following the later of the date his employment is terminated
hereunder or, if applicable, the Severance Date (the "Restricted Period"), the
Executive shall not, directly or indirectly (whether as owner, principal, agent,
shareholder, employee, partner, lender, venturer with or consultant to any
person, firm, partnership, corporation, limited liability company or other
entity), whether or not compensation is received, engage or participate in any
activity for any business or entity which is or plans to engage in the marketing
and sale of any products or services which are under active development or are
marketed or sold by the Company, SmartDisk, and/or their respective subsidiaries
and affiliates during the term of this Agreement anywhere in the United States;
provided, however, that nothing herein shall be deemed to prevent the Executive
from acquiring through market purchases and owning, solely as an investment,
less than three percent in the aggregate of the equity securities of any class
of any issuer whose shares are registered under ss.12(b) or 12(g) of the
Securities Exchange Act of 1934, as amended, and are listed or admitted for
trading on any United States national securities exchange or are quoted on the
National Association of Securities Dealers Automated Quotations System, or any
similar system of automated dissemination of quotations of securities prices in
common use, so long as the Executive is neither involved in the management or
conduct of the business affairs of such issuer nor a member of any "control
group" (within the meaning of the rules and regulations of the United States
Securities and Exchange Commission) of any such issuer. Notwithstanding the
foregoing, in the event that the Executive's employment hereunder is terminated
pursuant to Section 5.4 or Section 5.5, the Restricted Period shall terminate on
the later of (a) one year after the date Executive's employment is terminated or
(b) two years from the date of execution of this Agreement. The Executive
acknowledges and agrees that the covenants provided for in this Section 6.1 are
reasonable and necessary in terms of time, area and line of business to protect
the Company's and SmartDisk's "Trade Secrets" (as hereinafter defined). The
Executive further acknowledges and agrees that such covenants are reasonable and
necessary in terms of time, area and line of business to protect the Company's
and SmartDisk's legitimate business interests, which include their interests in
protecting the Company's and SmartDisk's (i) valuable confidential business
information, (ii) substantial relationships with customers throughout the United
States, and (iii) customer goodwill associated with the ongoing business of the
Company and SmartDisk. The Executive expressly authorizes the enforcement of the
covenants provided for in this Section 6.1 by (A) SmartDisk and its
subsidiaries, (B) SmartDisk's and the Company's permitted assigns, and (C) any
successors to SmartDisk's and the Company's business. To the extent that the
covenant provided for in this Section 6.1 may later be deemed by a court to be
too broad to be enforced with respect to its duration or with respect to any
particular activity or geographic area, the court making such determination
shall have the power to reduce the duration or scope of the provision, and to
add or delete specific words or phrases to or from the provision. The provision
as modified shall then be enforced.

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                  6.2 NONDISCLOSURE. Executive shall not divulge, communicate,
use to the detriment of the Company, SmartDisk or for the benefit of any other
person or persons, or misuse in any way, any "Confidential Information"
pertaining to the Company or SmartDisk. Any confidential information or data now
known or hereafter acquired by the Executive with respect to the Company or
SmartDisk shall be deemed a valuable, special and unique asset of the Company or
SmartDisk that is received by the Executive in confidence and as a fiduciary,
and Executive shall remain a fiduciary to the Company and SmartDisk with respect
to all of such information. For purposes of this Agreement, the following terms
when used in this Agreement have the meanings set forth below:

                       "CONFIDENTIAL INFORMATION" means confidential data and
confidential information relating to the business of the Company or SmartDisk
(which does not rise to the status of a Trade Secret under applicable law) which
is or has been disclosed to the Executive or of which the Executive became aware
as a consequence of or through his employment with the Company and which has
value to the Company or SmartDisk and is not generally known to the competitors
of the Company or SmartDisk. Confidential Information does not include (a)
information that is or becomes generally available to the public other than as a
result of the Executive's disclosure of such information, (b) information that
was within the Executive's possession prior to it being furnished to the
Executive by or on behalf of SmartDisk or its affiliates, including the Company,
provided that the source of such information was not known to the Executive to
be bound by a confidentiality agreement with or other contractual, legal or
fiduciary obligation of confidentiality to SmartDisk or its affiliates,
including the Company, or any other party with respect to such information, (c)
information that becomes available to the Executive on a non-confidential basis
from a source other than SmartDisk or any of its affiliates, including the
Company, provided that such source is not known to the Executive to be bound by
a confidentiality agreement with or other contractual, legal or fiduciary
obligation of confidentiality to the SmartDisk or its affiliates, including the
Company, or any other party with respect to such information, (d) information
the disclosure of which is required by applicable law or judicial process, or
(e) general technical skills or general experience gained by the Executive
during the Executive's employment with the Company.

                       "TRADE SECRETS" means information of the Company or
SmartDisk including, but not limited to, technical or nontechnical data,
formulas, patterns, compilations, programs, financial data, financial plans,
product or service plans or lists of actual or potential customers or suppliers
which (i) derives economic value, actual or potential, from not being generally
known to, and not being readily ascertainable by proper means by, other persons
who can obtain economic value from its disclosure or use, and (ii) is the
subject of efforts that are reasonable under the circumstances to maintain its
secrecy.

         In addition, during the Initial Term and during the periods described
in the last sentence of this Section 6.2, the Executive (a) will receive and
hold all Confidential Information and Trade Secrets (collectively "Company
Information") in trust and in strictest confidence, (b) will take reasonable
steps to protect the Company Information from disclosure and will in no event
take any action causing, or fail to take any action reasonably necessary to
prevent, any Company Information to lose its character as Company Information,
and (c) except as required by the Executive's duties in the course of his
employment by the Company, will not, directly or indirectly, use, disseminate or
otherwise disclose any Company Information to any third party without the prior
written consent of SmartDisk, which may be withheld in SmartDisk's absolute
discretion. The provisions of this Section 6.2 shall survive the termination of
the Executive's employment (i) for a period of five years with respect to
Confidential Information, and (ii) with respect to Trade Secrets, for so long as
any such information qualifies as a Trade Secret under applicable law.

                  6.3 NONSOLICITATION OF EMPLOYEES AND CUSTOMERS. While employed
by the Company and for a period of two years following the later of the date his
employment is terminated hereunder by either the Company or the Executive, or,
if applicable, the Severance Date, the Executive shall not, directly or
indirectly, for himself or for any other person, firm, corporation, partnership,
association or other entity, (i) attempt to employ or enter into any contractual
arrangement with any employee or former employee of the Company or SmartDisk,
unless such employee or former employee has not been

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employed by the Company or SmartDisk for a period in excess of three months,
and/or (ii) divert or take away, or attempt to divert or take away, the business
or prospects of any of the actual or targeted prospective customers or clients
of the Company or SmartDisk, nor shall the Executive make known the names and
addresses of such customers or any information relating in any manner to the
Company's or SmartDisk's trade or business relationships with such customers.

                  6.4 ASSIGNMENT OF INVENTIONS.

                      (a) ORIGINAL DEVELOPMENT. The Executive represents and
         warrants to the Company that all work that the Executive performs for
         or on behalf of the Company and its clients, and all work product that
         the Executive produces in such capacity, including but not limited to
         software, documentation, memoranda, ideas, designs, inventions,
         processes, algorithms, etc. ("Work Product"), will not knowingly
         infringe upon or violate any patent, copyright, trade secret, or other
         property right of any of his former employers or of any other third
         party. The Executive will not disclose to the Company, or use in any of
         his Work Product, any confidential or proprietary information belonging
         to others, unless both the owner thereof and the Company have consented
         in writing.

                      (b) DISCLOSURE. The Executive will promptly disclose to
         the Company all Work Product developed by him within the scope of his
         employment with the Company or which relates directly to, or involve
         the use of, any Company Information, including but not limited to all
         software, concepts, ideas and designs, and all documentation, manuals,
         letters, pamphlets, drafts, memoranda and other writings or tangible
         things of any kind. The Executive will not disclose them to anyone
         other than authorized Company personnel.

                      (c) COPYRIGHT OWNERSHIP. The Executive acknowledges and
         agrees that all Work Product which is made by him (solely or jointly
         with others) within the scope of his employment and which is
         protectable by copyright is being created at the instance of the
         Company and is "work made for hire," as that term is defined in the
         United States Copyright Act (17 USCA, Section 101).

                      (d) ASSIGNMENT. The Executive hereby assigns to the
         Company all of his other rights, title and interest (including but not
         limited to all patent, copyright and trade secret rights) in and to all
         Work Products prepared by him, whether patentable or not, made or
         conceived in whole or in part by him within the scope of his employment
         hereunder, or that relates directly to, or involves the use of Company
         Information.

                      (e) DOCUMENTS. The Executive agrees to execute all
         documents reasonably requested by the Company to further evidence the
         foregoing assignment and to provide all reasonable assistance to the
         Company (at the Company's expense) in perfecting or protecting any or
         all of the Company's rights in his Work Product.

                      (f) PRE-EXISTING INVENTIONS NOT ASSIGNED. The Executive
         represents that the Executive has indicated on Annex III to this
         Agreement all inventions, expression of ideas or other Work Product
         related to the Company's or SmartDisk's business and created prior to
         his employment by the Company in which the Executive has any right,
         title or interest that the Executive does not assign to the Company. If
         the Executive does not have any such inventions, expressions of ideas,
         or work product to indicate, the Executive will write "none" on Annex
         III. The Executive will not assert any rights under any inventions as
         having been made or acquired by him prior to his being employed by the
         Company, unless such inventions are identified on Annex I.

                  6.5 BOOKS AND RECORDS. All books, records, reports, writings,
notes, notebooks, computer programs, sketches, drawings, blueprints, prototypes,
formulas, photographs, negatives, models, equipment, chemicals, reproductions,
proposals, flow sheets, supply contracts, customer lists and

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other documents and/or things belonging to the Company or embodying or relating
to any Confidential Information or Trade Secrets, whether prepared by the
Executive or otherwise coming into the Executive's possession shall not be
copied, duplicated, replicated, transformed, modified or removed from the
premises of the Company except pursuant to the business of the Company and shall
be returned immediately to the Company on termination of the Executive's
employment hereunder or on the Company's request at any time.

                  6.6 NO CONFLICT. The Executive represents to the Company that
his execution and performance of this Agreement does not violate the provisions
of any employment, non-competition, confidentiality or other material agreement
to which he is a party or by which he is bound. The Executive also agrees to
indemnify and hold harmless the Company from any and all damages and other
obligations or liabilities incurred by the Company in connection with any breach
of the foregoing representation.

         7. INJUNCTION. It is recognized and hereby acknowledged by the parties
hereto that a breach by the Executive of any of the covenants contained in
Section 6 of this Agreement will cause irreparable harm and damage to SmartDisk
and the Company, the monetary amount of which may be virtually impossible to
ascertain. As a result, the Executive recognizes and hereby acknowledges that
Smart Disk or the Company shall be entitled to seek an injunction from any court
of competent jurisdiction (without posting a bond or other security) enjoining
and restraining any violation of any or all of the covenants contained in
Section 6 of this Agreement by the Executive or any of his affiliates,
associates, partners or agents, either directly or indirectly, and that such
right to injunction shall be cumulative and in addition to whatever other
remedies the Company or the Company may possess.

         8. GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of Florida without regard to conflicts of
laws principles thereof and all questions concerning the validity and
construction hereof shall be determined in accordance with the laws of said
state.

         9. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement
between the parties hereto with respect to the subject matter hereof and, upon
its effectiveness, shall supersede all prior agreements, understandings and
arrangements, both oral and written, between the Executive and SmartDisk (or any
of its affiliates, including the Company) with respect to such subject matter.
Except for the obligation to pay all accrued but unpaid salary due the
Executive, all such prior agreements, understandings and arrangements for the
provision of services by the Executive to the Company and the compensation of
the Executive in any form are hereby terminated, and the Executive hereby
releases and forever discharges SmartDisk (as well as the Company and its other
affiliates) from any and all liabilities and obligations of any nature arising
out of or in connection with any and all such prior agreements, understandings
or arrangements. This Agreement may not be modified in any way unless by a
written instrument signed by both the Company and the Executive.

         10. NOTICES. Any notice required or permitted to be given hereunder
shall be deemed given when delivered by hand or when deposited in the United
States mail, by registered or certified mail, return receipt requested, postage
prepaid, (i) if to the Company, c/o SmartDisk Corporation, 3506 Mercantile
Avenue, Naples, Florida 34104, Attention: Daniel E. Reed, Vice President, and
(ii) if to the Executive, to his address as reflected on the payroll records of
the Company, or to such other address as either party hereto may from time to
time give notice of to the other.

         11. BENEFITS; BINDING EFFECT. This Agreement shall be for the benefit
of and binding upon the parties hereto and their respective heirs, personal
representative, legal representatives, successors and, where applicable,
assigns, including, without limitation, any successor to the Company, whether by
merger, consolidation, sale of stock, sale of assets or otherwise; provided,
however that the Executive shall not delegate his employment obligations
hereunder, or any portion thereof, to any other person.

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         12. SEVERABILITY. The invalidity of any one or more of the words,
phrases, sentences, clauses or sections contained in this Agreement shall not
affect the enforceability of the remaining portions of this Agreement or any
part thereof, all of which are inserted conditionally on their being valid in
law, and, in the event that any one or more of the words, phrases, sentences,
clauses or sections contained in this Agreement shall be declared invalid, this
Agreement shall be construed as if such invalid word or words, phrase or
phrases, sentence or sentences, clause or clauses, or section or sections had
not been inserted. If such invalidity is caused by length of time or size of
area, or both, the otherwise invalid provision will be considered to be reduced
to a period or area which would cure such invalidity.

         13. WAIVERS. The waiver by either party hereto of a breach or violation
of any term or provision of this Agreement shall not operate nor be construed as
a waiver of any subsequent breach or violation.

         14. DAMAGES. Nothing contained herein shall be construed to prevent the
Company or the Executive from seeking and recovering from the other damages
sustained by either or both of them as a result of its or his breach of any term
or provision of this Agreement. In the event that either party hereto brings
suit for the collection of any damages resulting from, or for the injunction of
any action constituting, a breach of any of the terms or provisions of this
Agreement, then the party found to be at fault shall pay all reasonable court
costs and attorneys' fees of the other.

         15. SECTION HEADINGS. The section headings contained in this Agreement
are for reference purposes only and shall not affect in any way the meaning or
interpretation of this Agreement.

         16. NO THIRD PARTY BENEFICIARY. Nothing expressed or implied in this
Agreement is intended, or shall be construed, to confer upon or give any person
other than the Company, the parties hereto and their respective heirs, personal
representatives, legal representatives, successors and assigns, any rights or
remedies under or by reason of this Agreement.

         IN WITNESS WHEREOF, the undersigned have executed this Agreement as of
the date first above written.

                                       SMARTDISK PERSONAL STORAGE SYSTEMS
                                       CORPORATION

                                       By: /s/ MICHAEL S. BATTAGLIA
                                          --------------------------------------
                                           Michael S. Battaglia,
                                           President and Chief Executive Officer

                                       /s/  JAMES M. GIARRUSSO
                                       -----------------------------------------
                                       James M. Giarrusso

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                                     ANNEX I

                             PRE-EXISTING INVENTIONS

                                      NoneEXHIBIT 10.16

                                   MANAGEMENT
                          REGISTRATION RIGHTS AGREEMENT

         THIS REGISTRATION RIGHTS AGREEMENT ("Agreement") is made and entered
into this 6th day of March, 2000, between SmartDisk Corporation, a Delaware
corporation (the "Company") and each of Vincent Fedele, James M. Giarrusso and
Francis P. Reardon (each a "Holder" and collectively, the "Holders").

                                    RECITALS

         A. The Company is contemporaneously issuing and delivering to Holders
an aggregate of approximately 1,067,481 shares (the "Restricted Shares") of the
Company's common stock, par value $0.001 per share (the "Common Stock"),
pursuant to that certain Agreement and Plan of Merger, dated as of February 23,
2000 (the "Merger Agreement"), among the Company, VST Acquisition, Inc., a
Delaware corporation and wholly owned subsidiary of the Company, VST
Technologies, Inc., a Delaware corporation, and the "Shareholders" named
therein. Capitalized terms used in this Agreement and which are not defined
herein shall have the same meanings ascribed thereto in the Merger Agreement.

         B. As contemplated by the Merger Agreement, the Company has agreed
herein to provide to Holders certain registration rights with respect to the
Restricted Shares.

                                    AGREEMENT

         NOW, THEREFORE, in consideration of the premises and covenants set
forth in the Merger Agreement, the parties agree as follows:

         1. REGISTRATION RIGHTS.

                  (a) INCIDENTAL (PIGGYBACK) REGISTRATION. Subject to the
limitations set forth in this Agreement, if the Company at any time within one
(1) year of the date hereof proposes to file on its behalf and/or on behalf of
any of its security holders ("the demanding security holders") a Registration
Statement under the Securities Act of 1933, as amended (the "Securities Act"),
on any form (other than a Registration Statement on Form S-4 or S-8 or any
successor form for securities to be offered in a transaction of the type
referred to in Rule 145 under the Securities Act or to employees of the Company
pursuant to any employee benefit plan, respectively) for the general
registration of securities to be sold for cash with respect to its Common Stock
or any other class of equity security (as defined in Section 3(a)(11) of the
Securities Exchange Act of 1934) of the Company, it will give written notice to
the Holders at least 15 days before the initial filing with the Commission of
such Registration Statement, which notice shall set forth the intended method of
disposition of the securities proposed to be registered by the Company. The
notice shall offer to include in such filing the aggregate number of shares of
Restricted Shares as the Holders may request, subject, however, to the
provisions of this Section 1(a) below.

         If the Holders desire to have Restricted Shares registered under this
Section 1, they shall advise the Company in writing within 10 days after the
date of receipt of such offer from the Company, setting forth the amount of such
Restricted Shares for which registration is requested, not to exceed 25% of the
Restricted Securities received by such Holder in the Merger (subject to
adjustment for stock splits, stock dividends and similar reclassifications
affecting the Common Stock). The Company shall thereupon include in such filing
the number of shares of Restricted Shares of each Holder for which registration
is so requested, subject to the following provisions of this paragraph. In the
event that the proposed registration by the Company is, in whole or in part, an
underwritten public offering of securities of the Company, the Company shall not
be required to include any of the Restricted Shares in such underwriting unless

<PAGE>

Holders agree to accept the offering on the same terms and conditions as the
shares of Common Stock, if any, otherwise being sold through the underwriters
under such registration and provided further, that: (i) if the managing
underwriter determines and advises the Company that the inclusion of all
Restricted Shares proposed to be included by the Holders in the underwritten
public offering and other issued and outstanding shares of Common Stock proposed
to be included therein by the persons other than the Holders, the Company and
any holder who has exercised demand registration rights with respect to such
registration (the "Other Shares") would jeopardize the success of the Company's
offering, then (x) the Company shall be required to include in the offering (in
addition to the number of shares to be sold by the Company and any demanding
security holder) only that number of Restricted Shares that the managing
underwriter believes will not jeopardize the success of the Company's offering
and (y) the number of Restricted Shares and Other Shares included in such
underwritten public offering shall be reduced pro rata based upon the number of
shares of Restricted Shares and Other Shares requested by the holders thereof to
be registered in such underwritten public offering subject to the provisions of
that certain Investors' Rights Agreement between the Company and Phoenix House
Investments, LLC, Toshiba Corporation and Fischer International Systems
Corporation (collectively, the "Prior Holders"), requiring that such reduction
in the number of Other Shares included in such offering not reduce the number of
Other Shares owned by the Prior Holders included in the Offering, below 30% of
the total amount of securities included in the offering; and (ii) in each case
all Restricted Shares owned by the Holders which are not included in the
underwritten public offering shall be subject to customary underwriter "lock-up"
arrangements and not sold or otherwise transferred by the Holders for a period,
not to exceed one hundred eighty (180) calendar days, which the managing
underwriter reasonably determines as necessary in order to effect the
underwritten public offering. In the event the Company chooses a registration
form which limits the size of the offering, either in terms of the number of
shares or dollar amount, the Company shall not be required to include in the
offering (in addition to the number of shares to be sold by the Company and any
demanding security holder) Restricted Shares which would exceed such limits and
the number of Restricted Shares and Other Shares included in such underwritten
public offering shall be reduced pro rata based upon the number of shares of
Restricted Shares and Other Shares requested by the holders thereof to be
registered in such underwritten public offering.

                  (b) REGISTRATION AT THE REQUEST OF HOLDERS.

                           (i) Subject to the limitations set forth in this
Agreement, the Company agrees that upon receipt by the Company of a Registration
Demand (as hereinafter defined) satisfying the conditions of paragraph (iii) of
this Section 1(b), the Company will (A) give prompt written notice of such
proposed registration to all Holders, who shall have the right (by providing the
Company a written election within ten (10) days of receipt of such notice) to
have their Restricted Shares included in such registration, and (B) file a
registration statement under the Securities Act, with reasonable promptness, and
in any case not later than sixty (60) days after the Company's receipt of the
Registration Demand (thirty (30) days if the Company is then eligible to file a
registration statement on Form S-3) for an offering of such number of Restricted
Shares as to which registration is requested in the Registration Demand. The
Company shall use its best efforts to cause such registration statement to
promptly become effective under the Securities Act. No Registration Demand shall
be effective or impose any obligation upon the Company unless the Registration
Demand shall request the registration of Restricted Shares with an aggregate
offering value of at least $5 million ($1 million if the Company is then
eligible to file a registration statement on Form S-3). The Company shall be
entitled to postpone (upon written notice to the Holders) for up to sixty (60)
days the filing or requested effectiveness of a registration statement in
respect of a Registration Demand (but no more than once in any nine-month
period) if the Company's Board of Directors determines in good faith and in its
reasonable judgment that effecting the registration in respect of such
Registration Demand would have a material adverse affect on any proposal or plan
by the Company to engage in any material acquisition or disposition of assets
(other than in the ordinary course of business) or any material merger,
consolidation, tender offer or other similar transaction.

                           (ii) The Company shall be entitled to include in any
public offering of Common Stock pursuant to a registration statement filed
pursuant to this Section 1(b), securities of the

                                       2
<PAGE>

Company entitled generally to vote in the election of directors (or any
securities convertible into or exchangeable for or exercisable for the purchase
of securities so entitled generally to vote in the election of directors) to be
sold by other shareholders of the Company or by the Company for its own account,
except as and to the extent that in the opinion of the managing underwriter (if
any), such inclusion would adversely affect the marketing of the Restricted
Shares to be sold by the Holders in such offering, provided that if the managing
underwriter believes that the inclusion of all shares requested to be included
in the proposed underwritten public offering would adversely affect the
marketing of the Restricted Shares, then the aggregate number of shares to be
offered by the Company and the other shareholders of the Company having similar
registration rights shall be reduced so as to permit the offering of all
Restricted Shares requested by the Holders without such adverse effects.

                           (iii) A "Registration Demand" shall be a written
notice from the Holders to the Company in accordance with the requirements of
this Agreement which states that the Holders of a majority of the Restricted
Shares desire that the Company effect the registration of Restricted Shares
pursuant to a registration statement under the Securities Act and requesting
that the Company effect registration with respect to a specified number of each
Holder's Restricted Shares within the limits of this Agreement. No more than
four Registration Demands may be made under this Agreement, no more than one
Registration Demand may be made in any six month period and no Registration
Demand may be made after the second anniversary of the Effective Time of the
Merger. The first Registration Demand shall not be made prior to the four month
anniversary of the Effective Time of the Merger, the second Registration Demand
shall not be made prior to the eleventh month anniversary of the Effective Time,
the third Registration Demand shall not be made prior to the seventeenth month
anniversary of the Effective Time, and the fourth Registration Demand shall not
be made prior to the twenty-third month anniversary of the Effective Time. In
addition, no Holder shall at any time request the registration of the sale of
more than 25% of the Restricted Shares (in the case of the first Registration
Demand hereunder, net of any Restricted Shares registered pursuant to Section
1(a) above) received by such Holder pursuant to the Merger. The Company's
obligation to register any Holder's Restricted Shares is further subject to the
requirements of paragraph (c) of this Section 1.

                  (c) UNDERWRITING DOCUMENTS; OTHER LIMITATIONS.

                           (i) Notwithstanding any provision of this Agreement
to the contrary, a Holder may not include any Restricted Shares in any
underwritten offering required or contemplated under this Agreement unless the
Holder timely executes and delivers the form of underwriting agreement, custody
agreement, power of attorney and other agreements and instruments reasonably
required by the underwriters of such offering in connection with the preparation
and consummation of such offering.

                           (ii) Notwithstanding any provision of this Agreement
to the contrary, in no event shall the Company be required to register the sale
of any Restricted Shares held by the Escrow Agent.

         2. CERTAIN REGISTRATION PROCEDURES. If the Company is required by the
provisions of Section 1 to use its best efforts to effect the registration of
any Restricted Shares under the Securities Act, the Company will:

                  (a) prepare and file with the Securities and Exchange
Commission (the "Commission") a registration statement with respect to such
Restricted Shares and such amendments and supplements to such registration
statement and the prospectus used in connection therewith as may be necessary to
keep such registration statement effective until the earliest of (i) the
completion of the distribution of the registered securities, and (ii) the three
(3)-month anniversary of the effective date of the registration statement and to
comply with the provisions of the Securities Act with respect to the sale or
other disposition of all securities covered by such registration statement;

                                       3
<PAGE>

                  (b) furnish to any selling security holders such number of
copies of a summary prospectus or other prospectus, including a preliminary
prospectus, in conformity with the requirements of the Securities Act, and such
other documents, as such selling security holders may reasonably request;

                  (c) use its best efforts to register or qualify the securities
covered by such registration statement under such other securities or "blue sky"
laws of such jurisdictions within the United States and Puerto Rico as each
Holder of securities shall reasonably request (provided, however, that the
Company shall not be obligated to qualify as a foreign corporation to do
business under the laws of any jurisdiction in which it is not then qualified or
to file any general consent to service or process or to qualify as a broker or
dealer in securities), and do such other reasonable acts and things as may be
required of it to enable the Holders to consummate the disposition in such
jurisdiction of the securities covered by such registration statement;

                  (d) take such other actions as are reasonably required in
order to expedite or facilitate the disposition of such Common Stock; and

                  (e) promptly notify in writing the Holders and each
underwriter (if any) of the happening of any event, during the period of
distribution, as a result of which the registration statement includes an untrue
statement of a material fact or omits to state any material fact required to be
stated therein or necessary to make the statements therein not misleading in
light of the circumstances then existing (in which case, the Company shall
promptly provide the Holders and/or underwriters, as appropriate, with revised
or supplemental prospectuses and if so requested by the Company in writing, the
Holders shall promptly take action to cease making any offers of the Restricted
Shares until receipt and distribution of such revised or supplemental
prospectuses).

         3. EXPENSES. All expenses incurred in complying with this Agreement,
including, without limitation, all registration and filing fees (including all
expenses incident to filing with the NASD), printing expenses, fees and
disbursements of counsel for the Company, expenses of any special audits
incident to or required by any such registration and expenses (including
attorneys' fees) of complying with the securities or blue sky laws of any
jurisdictions pursuant to Section 2(c), except to the extent required to be paid
by participating selling security holders by state securities or blue sky laws,
shall be paid by the Company, except that the Company shall not be liable for
any fees, discounts or commissions to any underwriter or any fees or
disbursements of counsel for Holders in respect of the securities sold by
Holders, which amounts shall be paid by the Holders.

         4. INDEMNIFICATION. In the event of any registration of any Restricted
Shares under the Securities Act pursuant to this Agreement, the Company shall
indemnify and hold harmless the seller of such shares, each underwriter of such
shares, if any, each such broker or any other person, if any, who controls any
of the foregoing persons, within the meaning of the Securities Act, against any
losses, claims, damages or liabilities, joint or several, to which any of the
foregoing persons may become subject under the Securities Act or otherwise,
insofar as such losses, claims, damages or liabilities (or actions in respect
thereof) arise out of or are based upon an untrue statement of a material fact
contained in any registration statement under which such Restricted Shares were
registered under the Securities Act, any final prospectus contained therein, or
any amendment or supplement thereto, or any document prepared and/or furnished
by the Company incident to the registration or qualification of any Restricted
Shares, or arise out of or are based upon the omission to state therein a
material fact required to be stated therein or necessary to make the statements
therein not misleading or, with respect to any final prospectus, necessary to
make the statements therein in light of the circumstances under which they were
made, not misleading, or any violations by the Company of the Securities Act or
state securities or "blue sky" laws applicable to the Company relating to action
or inaction required of the Company in connection with such registration or
qualification under such state securities or blue sky laws; and shall reimburse
such seller, such underwriter, broker or other person acting on behalf of such
seller and each such controlling person for any legal or any other expenses
reasonably incurred by any of them in connection with investigating or defending
any such loss, claim, damage, liability or action; provided, however, that the
Company shall not

                                       4
<PAGE>

be so obligated to indemnify and reimburse any such Holder for any such loss,
claim, damage or liability that arises out of or is based upon an untrue
statement or alleged untrue statement or omission or alleged omission made in
said registration statement, said final prospectus or said amendment or
supplement or any document incident to the registration or qualification of any
Restricted Shares in reliance upon and in conformity with information furnished
by such Holder to the Company for use in preparation thereof. Before Restricted
Shares held by the Holders shall be included in any registration pursuant to
this Agreement, the Holders shall have agreed to indemnify and hold harmless (in
the same manner and to the same extent as set forth in this Section 4 for the
indemnification of such prospective seller and underwriter by the Company) the
Company, each director of the Company, each officer of the Company who shall
sign such registration statement and any person who controls the Company within
the meaning of the Securities Act, with respect to any untrue statement or
omission from such registration statement or final prospectus contained therein
or any amendment or supplement thereto, if such untrue statement or omission was
(i) made in reliance upon and in conformity with information furnished to the
Company by any Holder for use in the preparation of such registration statement,
final prospectus or amendment or supplement or (ii) contained in any
registration statement or prospectus which was utilized by any Holder or any
controlling person or affiliate of any Holder either (A) on any date which is in
excess of 90 days after the date of the Prospectus included in the registration
statement, or (B) after the Holders were notified, in accordance with Section
2(e) hereof, that such registration statement contained an untrue statement of a
material fact or omitted to state any material fact. Promptly after receipt by
an indemnified party of notice of the commencement of any action involving a
claim referred to in this Section 4, such indemnified party will, if a claim in
respect thereof is made against any indemnifying party, give written notice to
the latter of such claim and/or the commencement of such action. In case any
such action is brought against an indemnified party, the indemnifying party will
be entitled to participate in and assume the defense thereof, jointly with any
other indemnifying party similarly notified to the extent that it may wish, with
counsel reasonably satisfactory to such indemnified party, and after notice from
the indemnifying party to such indemnified party of its election to assume the
defense thereof, the indemnifying party shall be responsible for any legal or
other expenses subsequently incurred by the latter in connection with the
defense thereof, provided that if any indemnified party shall have reasonably
concluded that there may be one or more legal defenses available to such
indemnified party which conflict in any material respect with those available to
the indemnifying party, or that such claim or litigation involves or could have
an effect upon matters beyond the scope of the indemnity agreement provided in
this Section 4, such indemnifying party shall reimburse such indemnified party
and shall not have the right to assume the defense of such action on behalf of
such indemnified party and such indemnifying party shall reimburse such
indemnified party and any person controlling such indemnified party for that
portion of the fees and expenses of any counsel retained by the indemnified
party which are reasonably related to the matters covered by the indemnity
agreement provided in this Section 4. The indemnifying party shall not make any
settlement of any claims indemnified against hereunder without the written
consent of the indemnified party or parties, which consent shall not be
unreasonably withheld.

         In order to provide for just and equitable contribution in
circumstances in which the indemnification provided for in this Section 4 is due
in accordance with its terms but for any reason is held to be unavailable to an
indemnified party in respect to any losses, claims, damages and liabilities
referred to herein, then the indemnifying party shall, in lieu of indemnifying
such indemnified party, contribute to the amount paid or payable by such
indemnified party as a result of such losses, claims, damages or liabilities to
which such party may be subject in such proportion as is appropriate to reflect
the relative fault of the Company on the one hand and the Holders on the other
in connection with the statements or omissions which resulted in such losses,
claims, damages or liabilities, as well as any other relevant equitable
considerations. The relative fault of the Company and the Holders shall be
determined by reference to, among other things, whether the untrue or alleged
untrue statement of material fact related to information supplied by the Company
or the Holders and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.
The Company and the Holders agree that it would not be just and equitable if
contribution pursuant to this Section 4 were determined by pro rata allocation
or by any other method of allocation which does not take account of the
equitable considerations referred to above. Notwithstanding the provisions of
this paragraph of Section 4, (a) in no

                                       5
<PAGE>

case shall any one Holder be liable or responsible for any amount in excess of
the net proceeds received by such selling Holder from the offering of Restricted
Shares and (b) the Company shall be liable and responsible for any amount in
excess of such proceeds; provided, however, that no person guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the Securities Act)
shall be entitled to contribution from any person who was not guilty of such
fraudulent misrepresentation. Any party entitled to contribution will, promptly
after receipt of notice of commencement of any action, suit or proceeding
against such party in respect to which a claim for contribution may be made
against another party or parties under this Section, notify such party or
parties from whom contribution may be sought, but the omission so to notify such
party or parties from whom contribution may be sought shall not relieve such
party from any other obligation it or they may have thereunder or otherwise
under this Section. No party shall be liable for contribution with respect to
any action, suit, proceeding or claim settled without its prior written consent,
which consent shall not be unreasonably withheld.

         5. CERTAIN LIMITATIONS ON REGISTRATION RIGHTS. Notwithstanding the
other provisions of this Agreement, the Company shall not be obligated to
register the Restricted Shares of Holders if, in the opinion of counsel to the
Company, the sale or other disposition of Holders' Restricted Shares may be
effected without registering such Restricted Shares under the Securities Act.
The Company's obligations under Section 1 with respect to each Holder are also
expressly conditioned upon such Holder furnishing to the Company in writing such
information concerning such Holder and such Holder's controlling persons and the
terms of such Holder's proposed offering of Restricted Shares as the Company or
the managing underwriter (if any) shall reasonably request for inclusion in the
applicable registration statement.

         6. MISCELLANEOUS.

                  (a) Notices. Any notice, request, instruction, correspondence
or other document to be given hereunder by any party hereto to another (herein
collectively called "Notice") shall be in writing and delivered personally or
mailed by registered or certified mail, postage prepaid and return receipt
requested, or by telecopier, as follows:

                IF TO COMPANY:       SmartDisk Corporation
                                     3506 Mercantile Avenue
                                     Naples, Florida 34104
                                     Attention:  Daniel E. Reed
                                     Telecopy No.  (941) 436-2509

                                     WITH A COPY TO:

                                     Greenberg Traurig, LLP
                                     One East Camelback Road, Suite 1100
                                     Phoenix, Arizona 85012
                                     Attention: Bruce E. Macdonough
                                     Telecopy No.  (602) 263-2566

                IF TO THE HOLDERS:   To the address set opposite each Holder's
                                     name on the signature page attached hereto

                                     WITH COPIES TO:

                                     Hale and Dorr LLP
                                     60 State Street
                                     Boston, Massachusetts 02109
                                     Attention:  Stuart M. Falber
                                     Telecopy No.  (617) 526-5000

                                       6
<PAGE>

Each of the above addresses for notice purposes may be changed by providing
appropriate notice hereunder. Notice given by personal delivery or registered
mail shall be effective upon actual receipt. Notice given by telecopier shall be
effective upon actual receipt if received during the recipient's normal business
hours, or at the beginning of the recipient's next normal business day after
receipt if not received during the recipient's normal business hours. All
Notices by telecopier shall be confirmed by the sender thereof promptly after
transmission in writing by registered mail or personal delivery. Anything to the
contrary contained herein notwithstanding, notices to any party hereto shall not
be deemed effective with respect to such party until such Notice would, but for
this sentence, be effective both as to such party and as to all other persons to
whom copies are provided above to be given.

                  (b) SUCCESSORS AND ASSIGNS. This Agreement shall inure to the
benefit of and be binding upon the successors and assigns of the Company. The
rights granted to each Holder pursuant to the terms of this Agreement may be
transferred by such Holder to (i) another Holder, (ii) any affiliate of such
Holder, (iii) any person or entity acquiring at least 50,000 Restricted Shares
(such number being subject to adjustment for any stock dividend, stock split,
subdivision, combination or other recapitalization of the Common Stock of the
Company) or such lesser number as the Board of Directors of the Company may
agree in writing, or (iv) any person or entity acquiring 100% of such Holder's
Restricted Shares if the number of such Restricted Shares is less than the
amount contemplated by the preceding clause (iii); provided, however, that in
each such case (x) the Company is given written notice by the transferee at the
time of such transfer, stating the name and address of the transferee and
identifying the securities with respect to which such rights are being assigned,
and (y) any transferee (other than a Holder) to whom rights hereunder are
transferred shall, as a condition to such transfer, deliver to the Company a
written instrument by which such transferee agrees to be bound by the
obligations imposed upon Holders under this Agreement to the same extent as if
such transferee were a party hereto. Until the Company receives such notice and
written instrument, the transfer shall not be valid and shall not be reflected
on the books and records of the Company. A transferee to whom rights are
transferred pursuant to this subsection (b) may not again transfer such rights
to any other person or entity, other than as provided in this subsection.

                  (c) GOVERNING LAW. The provisions of this Agreement shall be
governed by and construed in accordance with the laws of the State of Delaware
(excluding any conflict of law rule or principle that would refer to the laws of
another jurisdiction). EACH PARTY HERETO HEREBY IRREVOCABLY AND UNCONDITIONALLY
WAIVES, TO THE FULLEST EXTENT IT MAY LEGALLY AND EFFECTIVELY DO SO, TRIAL BY
JURY IN ANY SUIT, ACTION OR PROCEEDING ARISING HEREUNDER.

                  (d) ENTIRE AGREEMENT; AMENDMENTS; WAIVERS. This Agreement,
together with the Merger Agreement, constitutes the entire agreement between and
among the parties hereto pertaining to the subject matter hereof and supersedes
all prior agreements, understandings, negotiations and discussions, whether oral
or written, of the parties, and there are no warranties, representations or
other agreements between the parties in connection with the subject matter
hereof except as set forth specifically herein or contemplated hereby. No
supplement, modification or waiver of this Agreement shall be binding unless
executed in writing by the Company and the Holders of at least 50% of the
Restricted Shares. No waiver of any of the provisions of this Agreement shall be
deemed or shall constitute a waiver of any other provision hereof (regardless of
whether similar), nor shall any such waiver constitute a continuing waiver
unless otherwise expressly provided.

                  (e) MULTIPLE COUNTERPARTS. This Agreement may be executed in
one or more counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument.

                  (f) SEVERABILITY. Wherever possible, each provision of this
Agreement shall be interpreted in such manner as to be effective and valid under
applicable law, but if any provision of this Agreement shall be prohibited by or
invalid under applicable law, such provisions shall be ineffective to the

                                       7
<PAGE>

extent of such prohibition or invalidity, without invalidating the remainder of
such provision or the remaining provisions of this Agreement.

                  (g) RULE 144 MATTERS. The Company agrees, during the one-year
period commencing on the first anniversary of the Effective Time, to:

                           (i) use its best efforts to make and keep current
public information about the Company available, as those terms are understood
and defined in Rule 144;

                           (ii) use its best efforts to file with the Commission
in a timely manner all reports and other documents required of the Company under
the Securities Act and the Exchange Act; and

                           (iii) furnish to any holder of Restricted Shares upon
request (i) a written statement by the Company as to its compliance with the
reporting requirements of Rule 144 and of the Securities Act and the Exchange
Act, (ii) a copy of the most recent annual or quarterly report of the Company,
and (ii) such other reports and documents of the Company as such holder may
reasonably request to avail itself of any similar rule or regulation of the
Commission allowing it to sell any such securities without registration.

                                       8
<PAGE>

         IN WITNESS WHEREOF, the Company and Holders have executed this
Registration Rights Agreement as of the date first above written.

SMARTDISK CORPORATION:

By: /s/ MICHAEL S. BATTAGLIA
   -------------------------------
Name: Michael S. Battaglia
Title: President and Chief
       Executive Officer

HOLDERS:                                   ADDRESS:

/s/ VINCENT FEDELE                         P.O. Box 061
----------------------------------         Harvard, Massachusetts 01451
Vincent Fedele

/s/ JAMES M. GIARRUSSO                     14 Pheasant Lane
----------------------------------         Bedford, Massachusetts 01730
James M. Giarrusso

/s/ FRANCIS P. REARDON                     12 Tanglewood Drive
----------------------------------         Shrewsbury, Massachusetts 01451
Francis P. Reardon

                                       9

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