Document:

EMPLOYMENT AGREEMENT

      Employment Agreement, dated October 15, 1999 and effective as of June 1,
1999, (the "Effective Date"), by and between AVAX Technologies, Inc., a Delaware
corporation (the "Corporation"), and Dr. Jeffrey M. Jonas, M.D., an individual
(the "Executive").

                                   WITNESSETH:

      WHEREAS, the Corporation has employed the Executive pursuant to a letter
agreement dated June 1, 1996 and a supplement thereto dated April 7, 1997
(collectively, the "Employment Letter Agreements"), setting forth certain terms
of the Executive's employment; and

      WHEREAS, the Corporation and the Executive wish to amend and restate the
Employment Letter Agreements hereby in their entirety:

      NOW, THEREFORE, in consideration of the foregoing and the mutual promises
and covenants herein contained, it is agreed as follows:

1. EMPLOYMENT; DUTIES, POWERS AND AUTHORITY

      (a) The Corporation engages and employs the Executive, and the Executive
hereby accepts engagement and employment as President and Chief Executive
Officer of the Corporation.

      (b) The Executive shall perform his duties with all such powers and
authority as appertain to such office in accordance with the Corporation's
by-laws, subject to overall direction consistent with the legal authority of the
Board of Directors of the Corporation (the "Board"), and such duties, powers and
authority shall not be limited or materially changed by the Corporation during
the Employment Period. The Executive shall perform his duties hereunder from the
Corporation's offices and at such other places as shall be necessary according
to the needs, business or opportunities of the Corporation; provided, that the
Executive acknowledges and agrees that the performance by the Executive of his
duties hereunder may require significant domestic and international travel by
the Executive.

      (c) As President and Chief Executive Officer, the Executive shall
supervise, control and be responsible for the general management and operations
of the Corporation and have such other executive powers and duties as may from
time to time be prescribed by the Board. The Executive shall report solely to
the Board and there shall be no employee of the Corporation who shall have
authority equal or superior the authority of the Executive.

      (d) The Corporation shall cause the Executive to be elected to the Board
at all times during the Employment Period, and the Executive shall serve as a
member of the Board at all times during the Employment Period.

      (e) The Executive shall devote such of his time and efforts as shall be
necessary to the proper discharge of his duties and responsibilities under this
Agreement. The Executive may engage in other business ventures and activities,
provided that the Executive first obtains

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permission by the Board and that (i) such other ventures and activities will not
unreasonably interfere with the performance of his duties and responsibilities
hereunder, (ii) such other ventures and activities could not reasonably be
anticipated to require more than eight hours of the Executive's professional
time per month and (iii) such other ventures and activities will not result in
violation of the provisions of Sections 5 or 6 hereof.

2. TERM

      The Executive's employment hereunder shall, unless earlier terminated, be
for a term of three (3) years (the "Initial Period") commencing on the Effective
Date of this Employment Agreement. The Initial Period and any Renewal Periods
(as defined below) are collectively referred to herein as the "Employment
Period." On a date not less than nine (9) months before the end of the
Employment Period, the Company and the Employee shall negotiate in good faith
whether to extend the Term of this Agreement for a further three year period
(the "Renewal Periods") which term(s) are subject to earlier termination as
hereinafter provided.

3. COMPENSATION

      (a) As compensation for the performance of his duties on behalf of the
Corporation, the Executive shall be compensated during the Employment Period as
follows:

            (i)   A base salary of not less than $300,000 per annum (the "Base
                  Salary"), subject to annual review commencing 12 months from
                  the Effective Date;

            (ii)  At the sole and absolute discretion of the Board, the
                  Executive may be eligible to receive an annual incentive bonus
                  beginning with the first anniversary of the Effective Date
                  during the Employment Period. The Board shall meet with the
                  Executive to establish such goals and performance standards as
                  the Board determines are to be taken into account in
                  determining the Executive's discretionary bonus awards
                  provided for herein. In consideration of such bonus, the Board
                  may use some or all of the criteria listed in Exhibit I to
                  make its determination.

            (iii) The Corporation shall withhold all applicable federal, state
                  and local taxes, social security and workers' compensation
                  contributions and such other amounts as may be required by law
                  or agreed upon by the parties with respect to the compensation
                  payable to the Executive pursuant to this section 3(a) or
                  otherwise in connection with his employment by the
                  Corporation.

      (b) The Executive has received options to purchase 588,872 shares of
Common Stock, par value $.004, according to the Schedule in Exhibit II. These
options shall vest and be exercisable (subject to any resale restrictions of an
underwriter of the Corporation's securities), in accordance with the provisions
and terms of the letter Agreement dated June 1, 1996, attached as Exhibit III,
and in accordance with the terms and conditions contained in the Corporation's
Incentive Stock Option Plan adopted in 1992. In addition, from time to time, at
the discretion of

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the Board of Directors, the Executive may be entitled to additional stock
options pursuant to the Corporation's Stock Option Plan.

      (c) The Corporation shall reimburse the Executive for all normal, usual
and necessary expenses incurred by the Executive in furtherance of the business
and affairs of the Corporation, including reasonable travel and entertainment,
against receipt by the Corporation of appropriate vouchers or other proof of the
Executive's expenditures and otherwise in accordance with such Expense
Reimbursement Policy as may from time to time be adopted by the Board of
Directors of the Corporation.

      (d) The Executive shall be entitled, during the Employment Period, to not
less than four weeks per year of paid vacation time. The days selected for the
Executive's vacation must be mutually agreeable to the Corporation and the
Executive.

      (e) During the Employment Period, the Executive shall be entitled to
participate in any group insurance, hospitalization, medical, dental, health and
accident, disability or similar plan or program of Corporation now existing or
established hereafter to the extent that he is eligible under the general
provisions thereof. The Corporation shall at all times during the term of this
Agreement maintain at its expense life insurance on the life of the Executive
with death benefits of at least Nine Hundred Thousand Dollars ($900,000) in the
form of a policy owned by the Executive, the beneficiaries of which are the
Executive's estate or other beneficiaries designated by the Executive. Upon
termination of this Agreement, the Corporation shall transfer the policy and all
accrued benefits thereunder to the Executive at no cost to the Executive such
that thereafter the Executive may maintain the full benefits of the policy by
paying premiums that become due for periods after termination at levels not
greater than those being paid by the Corporation during the term of this
Agreement.

      (f) The Executive shall continue to be entitled to receive his salary and
benefits hereunder during any period (up to a maximum of 10 business days (or
such greater number of days as are consistent with the Corporation's sick leave
policies) per year) during which he is unable to perform his duties hereunder
because of ill health or Disability (as defined below).

      (g) Subject to paragraphs (d) through (f) of Section 10 below, the
Executive must be an employee of the Corporation at the time that any
compensation is due in order to receive such compensation.

4. REPRESENTATIONS AND WARRANTIES BY EXECUTIVE AND CORPORATION

      The Executive hereby represents and warrants to the Corporation as
follows:

      (a) Neither the execution and delivery of this Agreement nor the
performance by the Executive of his duties and other obligations hereunder
violate or will violate any statute, law, determination or award, or conflict
with or constitute a default under (whether immediately, upon the giving of
notice or lapse of time or both) any prior employment agreement, contract, or
other instrument to which the Executive is a party or by which he is bound.

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      (b) The Executive has the full right, power and legal capacity to execute
and deliver this Agreement and to perform his duties and other obligations
hereunder. This Agreement constitutes the legal, valid and binding obligation of
the Executive enforceable against him in accordance with its terms. No approvals
or consents of any persons or entities are required for the Executive to execute
and deliver this Agreement or perform his duties and other obligations
hereunder.

      The Corporation hereby represents and warrants to the Executive as
follows:

      (a) The Corporation is a corporation duly organized, validly existing and
in good standing under the laws of the State of Delaware, which has all
requisite corporate power and authority to own its properties and conduct its
business in the manner presently contemplated.

      (b) The Corporation has full power and authority to enter into this
Agreement and to incur and perform its obligations hereunder. This Agreement
constitutes the legal, valid and binding obligation of the Corporation
enforceable against the Corporation in accordance with its terms.

      (c) The execution, delivery and performance by the Corporation of this
Agreement does not conflict with or result in a breach or violation of or
constitute a default under (whether immediately, upon the giving of notice or
lapse of time or both) the certificate of incorporation or by-laws of the
Corporation, or any agreement or instrument to which the Corporation is a party
or by which the Corporation or any of its properties may be found or affected.

5. NON-COMPETITION

      (a) The Executive understands and recognizes that his services to the
Corporation are special and unique and agrees that, during the Employment Period
and for a period of two years from the date of termination of his employment
hereunder, he shall not in any manner, directly or indirectly, on behalf of
himself or any person, firm, partnership, joint venture, corporation or other
business entity ("Person"), enter into or engage in any business directly
competitive with the Corporation's business or relating to chemotherapies or
immunotherapies for the treatment of cancer, or other therapies, treatments or
matters within the scope of, or research and development relating to, the
Corporation's business, either as an individual for his own account, or as a
partner, joint venturer, executive, agent, consultant, salesperson, officer,
director or shareholder of a Person operating or intending to operate within the
area that the Corporation is, at the date of termination, conducting its
business (collectively, "Restricted Business"); provided, however, that nothing
herein will preclude the Executive from holding one percent (1%) or less of the
stock of any publicly traded company or from holding a position with a Person
which does engage in a Restricted Business so long as (i) the Executive works in
a division of such Person which is not primarily engaged in a Restricted
Business and (ii) the Executive has no responsibilities for the direct
supervision of, and will not in the ordinary course of discharging his
responsibilities become involved in the analysis of proprietary data or
marketing strategies relating to, any Restricted Business that is engaged in by
such division. This paragraph 5(a) shall be null and void if the Executive
terminated his employment for just cause pursuant to section 11(a)(iv) below or
if this Agreement is terminated prior to the end of the Initial Term or any

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Additional Term then in effect by the Corporation other than pursuant to Section
11(a)(ii) or (iii) below.

      (b) In the event that the Executive breaches any provisions of this
Section 6 or there is a threatened breach, then, in addition to any other rights
which the Corporation may have, the Corporation shall be entitled, without the
posting of a bond or other security, to injunctive relief to enforce the
restrictions contained herein. In the event that an actual proceeding is brought
in equity to enforce the provisions of this Section 6, the Executive shall not
urge as a defense that there is an adequate remedy at law nor shall the
Corporation be prevented from seeking any other remedies which may be available.

6. CONFIDENTIAL INFORMATION

      (a) The Executive agrees that during the course of his employment and for
a period of three years after termination, he will not disclose or make
accessible to any other person, the Corporation's products, services and
technology, both current and under development, promotion and marketing
programs, lists, trade secrets and other confidential and proprietary business
information of the Corporation or any of its clients except to the extent the
same have become generally known to the public other than through a breach of
this Section 6. The Executive agrees: (i) not to use any such information for
himself or others during such three-year period; and (ii) not to take any such
material or reproductions thereof from the Corporation's facilities at any time
during his employment by the Corporation, except as required in the Executive's
duties to the Corporation. The Executive agrees immediately to return all such
material and reproductions thereof in his possession to the Corporation upon
request and in any event upon termination of employment.

      (b) Except with prior written authorization by the Corporation, the
Executive agrees not to disclose or publish any of the confidential, technical
or business information or material of the Corporation, its clients or any other
party to whom the Corporation owes an obligation of confidence, at any time
during or for a period of three (3) years after his employment with the
Corporation.

7. OWNERSHIP OF PROPRIETARY INFORMATION

      (a) The Executive agrees that all information that has been created,
discovered or developed by the Corporation, its subsidiaries, affiliates,
successors or assigns (collectively, the "Affiliates") (including, without
limitation, information relating to the development of the Corporation's
business created by, discovered by, developed by or made known to the
Corporation or the Affiliates by Executive during the Employment Period and
information relating to Corporation's customers, suppliers, consultants, and
licensees)and/or in which property rights have been assigned or otherwise
conveyed to the Corporation or the Affiliates, shall be the sole property of the
Corporation or the Affiliates, as applicable, and the Corporation or the
Affiliates, as the case may be, shall be the sole owner of all patents,
copyrights and other rights in connection therewith, including but no limited to
the right to make application for statutory protection. All of the
aforementioned information is hereinafter called "Proprietary Information." By
way of illustration but without limitation, Proprietary Information shall
include all discoveries, structures, inventions, designs, ideas, works of
authorship, copyrightable

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works, trademarks, copyrights, formulas, data, know-how, show-how, improvements,
inventions, product concepts, techniques, information or statistics contained
in, or relating to, marketing plans, strategies, forecasts, blueprints,
sketches, records, notes, devices, drawings, customer lists, patent
applications, continuation applications, continuation-in-part applications, file
wrapper continuation applications and divisional applications and information
about the Corporation's or the Affiliates' employees and/or consultants
(including, without limitation, the compensation, job responsibility and job
performance of such employees and/or consultants).

      (b) The Executive further agrees that at all times, both during the
Employment Period and after the termination of this Agreement, he will keep in
confidence and trust all Proprietary Information, and he will not use or
disclose any Proprietary Information or anything directly relating to it without
the written consent of the Corporation or the Affiliates, as appropriate, except
as may be necessary in the ordinary course of performing his duties hereunder
and except for academic, non-commercial research purposes with the prior written
approval of the Board of Directors. The Executive acknowledges that the
Proprietary Information constitutes a unique and valuable asset of the
Corporation and each Affiliate acquired at great time and expense, which is
secret and confidential and which will be communicated to the Executive, if at
all, in confidence in the course of his performance of his duties hereunder, and
that any disclosure or other use of the Proprietary Information other than for
the sole benefit of the Corporation or the Affiliates would be wrongful and
could cause irreparable harm to the Corporation or the Affiliates, as the case
may be.

            Notwithstanding the foregoing, the parties agree that, at all such
times, the Executive is free to use (i) information in the public domain not as
a result of a breach of this Agreement, (ii) information lawfully received from
a third party and (iii) the Executive' own skill, knowledge, know-how and
experience to whatever extent and in whatever way he wishes, in each case
consistent with his obligations as the Executive and that, at all times, the
Executive is free to conduct any non-commercial research not relating to the
Corporation's business.

8. DISCLOSURE AND OWNERSHIP OF INVENTIONS

      (a) During the Employment Period, the Executive agrees that he will
promptly disclose to the Corporation, or any persons designated by the
Corporation, all improvements, inventions, designs, ideas, works of authorship,
copyrightable works, discoveries, trademarks, copyrights, trade secrets,
formulas, processes, structures, product concepts, marketing plans, strategies,
customer lists, information about the Corporation's or the Affiliates' employees
and/or consultants (including, without limitation, job performance of such
employees and/or consultants), techniques, blueprints, sketches, records, notes,
devices, drawings, know-how, data, whether or not patentable, patent
applications, continuation applications, continuation-in-part applications, file
wrapper continuation applications and divisional applications, made or conceived
or reduced to practice or learned by him, either alone or jointly with others,
during the Employment Period (all said improvements, inventions, designs, ideas,
works of authorship, copyrightable works, discoveries, trademarks, copyrights,
trade secrets, formulas, processes, structures, product concepts, marketing
plans, manufacturing or other strategies, customer lists, information about the
Corporation's or the Affiliates' employees and/or consultants, techniques,
blueprints, sketches, records, notes, devices, drawings, know-how, data, patent
applications,

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continuation applications, continuation-in-part applications, file wrapper
continuation applications and divisional applications shall be collectively
hereinafter called "Inventions").

      (b) The Executive agrees that all Inventions shall be the sole property of
the Corporation to the maximum extent permitted by applicable law and to the
extent permitted by law shall be "works made for hire" as that term is defined
in the United States Copyright act (17 USCA, Section 101). The Corporation shall
be the sole owner of all patents, copyrights, trade secret rights, and other
intellectual property or other rights in connection therewith. The Executive
hereby assigns to the Corporation all right, title and interest he may have or
acquire in all Inventions. The Executive further agrees to assist the
Corporation in every possible way (but at the Corporation's expense) to obtain
and from time to time, enforce patents, copyrights or other rights on said
Inventions in any and all countries, and to that end the Executive will execute
all documents necessary:

            (i)   to apply for, obtain and vest in the name of the Corporation
                  alone (unless the Corporation otherwise directs) letters
                  patent, copyrights or other analogous protection in any
                  country throughout the world and when so obtained or vested to
                  renew and restore the same; and

            (ii)  to defend any opposition proceedings in respect of such
                  applications and any opposition proceedings or petitions or
                  applications for revocation of such letters, patent, copyright
                  or other analogous protection.

      (c) The Executive's obligation to assist the Corporation in obtaining and
enforcing patents and copyrights for the Inventions in any and all countries
shall continue beyond the Employment Period, but the Corporation agrees to
compensate the Executive a reasonable rate after the expiration of the
Employment Period for time actually spent by the Executive at the Corporation's
request on such assistance.

9. NON-SOLICITATION

      (a) During the Employment Period, and for 18 months thereafter, Executive
shall not, directly or indirectly, without the prior written consent of the
Corporation (i) solicit or induce any employee of the Corporation or any
Affiliate to leave the employ of the Corporation or any Affiliate or (ii) hire
for any purpose any present or former employee of the Corporation or any
Affiliate.

10. TERMINATION

      (a) The Executive's Employment Period hereunder shall begin on the
Effective Date and shall continue for the period set forth in Section 2 hereof
unless sooner terminated upon the first to occur of the following events:

            (i)   The death of the Executive;

            (ii)  The Disability (as defined below in Section 10(b)) of the
                  Executive;

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            (iii) Termination by the Board of Directors of the Corporation for
                  "Just Cause", provided that the Corporation shall have given
                  proper notice thereof, and the Executive shall have had at
                  least a thirty (30) day period to cure such "Just Cause." For
                  the Purposes of this Agreement, any of the following actions
                  by the Executive shall constitute "Just Cause":

                  (A)   Material breach by the Executive of Sections 5, 6, 7, 8,
                        or 9 of this Agreement;

                  (B)   Material breach by the Executive of any provision of
                        this Agreement other than Sections 5, 6, 7, 8, or 9
                        which is not cured by the Executive within 30 days of
                        written notice thereof from the Corporation;

                  (C)   Negligent performance by the Executive of his duties as
                        Chief Executive Officer and President of the
                        Corporation, as determined by the Board after notice to
                        the Executive and an opportunity for the Executive to be
                        heard by the Board;

                  (D)   Any misconduct or omission on the part of the Executive
                        intended to cause harm to the Corporation; or

                  (E)   The conviction of the Executive of (i) any felony or
                        (ii) any other crime involving moral turpitude;

            (iv)  Termination by the Executive for "Good Reason." Any of the
                  following actions or omissions by the Corporation shall
                  constitute "Good Reason", provided that the Executive shall
                  have given proper notice thereof, and the Corporation shall
                  have had at least a thirty (30) day period to cure such "Good
                  Reason":

                  (A)   Material breach by the Corporation of any provision of
                        this Agreement which is not cured by the Corporation
                        within 30 days of written notice thereof from the
                        Executive to the Corporation, specifying in reasonable
                        detail the basis for such claimed breach;

                  (B)   The failure of the Corporation to provide the Executive
                        with a position, authority or duties at least equivalent
                        to the most significant position, authority or duties
                        (other than those relating to the Board of Directors or
                        any committee thereof) previously held by the Executive
                        during the Employment Period, or any reduction of the
                        Compensation paid by the Corporation to the Executive or
                        any material reduction of the benefits given by the
                        Corporation to the Executive, unless such reduction is
                        deemed necessary by the Board with the consent of the
                        Executive and is applicable to all Officers of the
                        Corporation, if such circumstance is not remedied

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                        within (5) business days after written notice from the
                        Executive to the Corporation.

            (v)   A Change of Control which shall be deemed to occur upon either
                  of the following:

                  (A)   The sale by the Corporation of all or substantially all
                        of its assets to any person (as such term is used in
                        Sections 13(d) and 14(d) of the Securities and Exchange
                        Act of 1934), the consolidation of the Corporation with
                        any person, or the merger of the Corporation with any
                        person as a result of which merger the Corporation is no
                        longer the surviving entity, or if the Survivor, the
                        Corporation is owned by a parent company, unless,
                        following such consolidation at least a majority of the
                        members of the Board of Directors of the surviving
                        entity or transferee are members of the Board of
                        Directors of the Corporation at the time of the initial
                        action of the Board of Directors providing for such
                        consolidation, or

                  (B)   The sale or transfer by one or more of the Corporation's
                        shareholders, in one or more transactions, related or
                        unrelated to one or more persons under circumstances
                        whereby any person and its affiliates (as hereafter
                        defined) shall own as a result of such sale or transfer
                        and thereafter, at least one-half of the outstanding
                        shares of the Corporation.

                  Nothing contained in the definition of Change of Control shall
                  limit or restrict the right of the Executive, in his capacity
                  as a member of the Board, from participating in any
                  discussions or voting on any matter referred to in said
                  definition at any meeting of the Board. An "Affiliate" shall
                  mean any person that directly or indirectly through one or
                  more intermediaries, controls, or is controlled by, or under
                  common control with, any other person.

      (b) For purposes hereof, a "Disability" of the Executive shall be deemed
to have occurred in the event (i) the Executive is absent from work or otherwise
substantially unable to assume his normal duties for a period of 30 successive
days or an aggregate of 60 days during any 12-month period because of physical
or mental disability, accident, illness or other cause other than approved
vacation or leave of absence or (ii) the Executive is deemed by a licensed
physician designated by the Corporation and reasonably acceptable to the
Executive to have a permanent disability such that Executive will be unable to
perform his duties under this agreement. The Corporation shall have the right to
have the Executive examined by a competent physician for purposes of determining
his physical or mental incapacity.

      (c) Upon termination by Corporation pursuant to either subparagraphs (i),
(ii), (iii) and (iv) of paragraph (a) above or by Executive other than pursuant
to subparagraph (iv) of paragraph (a) above, the Executive (or his estate in the
event of termination pursuant to

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subparagraph (ii)), shall be entitled to receive the Base Salary accrued but
unpaid as of the date of termination.

      (d) Upon termination by the Corporation (other than following a Change of
Control) for any reason other than as set forth in subparagraphs (i), (ii) or
(iii) of paragraph (a) above or by the Executive for any reason set forth in
subparagraphs (iv) of paragraph (a) above, then the Corporation shall continue
to pay the Executive, as the Executive's sole damages for such termination, for
the remainder of the Employment Period but no less than one year following such
termination, the Base Salary (at the rate in effect at the date of termination)
which the Executive would have received during the one year period following the
termination of this Agreement had his employment not been so terminated;
provided that on the date of such termination, the Executive shall be paid a
lump sum amount equal to one times the annual Base Salary without set-off for
any salary earned from alternative employment, and that any remaining amounts
payable to the Executive pursuant to this paragraph shall be payable to the
Executive in a lump-sum payment on the first anniversary of the date of such
termination, offset only by any payments that the Executive is then entitled to
earn as salary from alternative employment during the remainder of the
Employment Period after such one year anniversary. In addition, any stock
options granted to the Executive, including, but not limited to Section 3(b),
shall continue to vest according to the provisions of Section 3(b) during such
one year severance period.

      (e) Upon termination, following a Change of Control, by the Corporation
(other than as set forth in subparagraph (i), (ii) or (iii) of paragraph (a)
above) or by the Executive for any reason set forth in subparagraphs (iv) of
paragraph (a) above, then the Corporation shall pay the Executive, as the
Executive's sole damages for such termination, a lump sum payment equal to two
times the Base Salary at the higher of the rate in effect at the date of
termination or the rate in effect on the date of the Change of Control. Such
amount(s) shall not be set-off against amount earned from alternative
employment. In addition, any stock options granted to the Executive, including,
but not limited to Section 3 (b), shall thereupon become immediately vested.

      (f) It shall be condition to the Executive's right to receive the benefits
provided for in paragraphs (d) through (f) of Section 3 above that the Executive
shall have delivered to the Corporation a general release dated as of the date
of termination of the Executive's employment hereunder.

11. INDEMNIFICATION

      The Corporation shall indemnify and hold the Executive harmless to the
fullest extent permitted by the General Corporation Law of the State of
Delaware, as amended from time to time, for all amounts, (including without
limitation, judgements, fines, settlement payments, expenses and attorney's
fees) incurred or paid by the Executive in connection with any action, suit,
investigation or proceeding arising out of or relating to the performance by the
Executive of services for, or acting by the Executive as a director, officer or
employee of, the Corporation or any other person or enterprise at the
Corporation's request, and shall to the fullest extent permitted by the General
Corporation Law of the State of Delaware, as amended from time to time, advance
all expenses incurred or paid by the Executive in connection with, and until
disposition of, any action, suit, investigation or proceeding arising out of or
relating to the

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performance by the Executive of services for, or acting by the Executive as a
director, officer or employee of, the Corporation or any other person or
enterprise at the Corporation's request.

12. INSURANCE

      If requested by the Corporation, the Executive agrees to cooperate with
the Corporation in obtaining for the Corporation's benefit, at the Corporation's
expense, life insurance on his life. Such cooperation shall include completing
and signing such forms or applications, undergoing physical examinations, and
such other acts as may be required in order to obtain such insurance.

13. NOTICES

      Any notice or other communication under this Agreement shall be in writing
and shall be deemed to have been given: when delivered personally against
receipt therefor; one (1) day after being sent by Federal Express or similar
overnight delivery; or three (3) days after being mailed registered or certified
mail, postage prepaid, return receipt requested, to either party at the address
set forth below, or to such other address as such party shall give by notice
hereunder to the other party.

            If to Corporation:                    If to Executive:

            AVAX Technologies, Inc.               Dr. Jeffrey M. Jonas
            4520 Main Street, Suite 930           5353 Sunset Drive
            Kansas City, MO 64111                 Kansas City, MO  64112

14. SEVERABILITY OF PROVISIONS

            If any provision of this Agreement shall be declared by a court of
competent jurisdiction to be invalid, illegal or incapable of being enforced in
whole or in part, the remaining conditions and provisions or portions thereof
shall nevertheless remain in full force and effect and enforceable to the extent
they are valid, legal and enforceable, and no provision shall be deemed
dependent upon any other covenant or provision unless so expressed herein.

15. ENTIRE AGREEMENT; MODIFICATION

      (a) This Agreement and the agreements and instruments referenced in
Section 3(b) hereof contain the entire agreement of the parties relating to the
subject matter hereof and supersede in their entirety the Employment Letter
Agreements, and the parties hereto have made no agreements, representations or
warranties relating to the subject matter of this Agreement which are not set
forth herein or in the agreements and instruments referenced in said Section
3(b). No modification of this Agreement shall be valid unless made in writing
and signed by the parties hereto.

      (b) The Executive acknowledges that any cash and non-cash compensation
received by him prior to the execution of this Agreement shall be applied to the
obligations of the Corporation hereunder and that the execution of this
Agreement after the Effective Date is not

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intended to entitle the Executive to any greater compensation than was
originally set forth in the Employment Letter Agreements.

16. BINDING EFFECT

      The rights, benefits, duties and obligations under this Agreement shall
inure to, and be binding upon, the Corporation, its successors and assigns, and
upon the Executive and his legal representatives. This Agreement constitutes a
personal service agreement, and the performance of the Executive's obligations
hereunder may not be transferred or assigned by the Executive.

17. NON-WAIVER

      The failure of either party to insist upon the strict performance of any
of the terms, conditions and provisions of this Agreement shall not be construed
as a waiver or relinquishment of future compliance therewith, and said terms,
conditions and provisions shall remain in full force and effect. No waiver of
any term or condition of this Agreement on the part of either party shall be
effective for any purpose whatsoever unless such waiver is in writing and signed
by such party.

18. REMEDIES FOR BREACH

      The Executive understands and agrees that any breach of Sections 5, 6, 7,
8 and 9 of this Agreement by the Executive could cause irreparable damage to the
Corporation and to the Affiliates, and that monetary damages alone would not be
adequate and, in the event of such breach, the Corporation shall have, in
addition to any and all remedies of law, the right to an injunction, specific
performance or other equitable relief to prevent or redress the violation of the
Executive's obligations under such Sections.

19. GOVERNING LAW

      This Agreement shall be governed by, and construed and interpreted in
accordance with, the laws of the State of Delaware without regard to principles
of conflict of laws.

20. HEADINGS

      The headings of paragraphs are inserted for convenience and shall not
affect any interpretation of this Agreement.

                                       12
<PAGE>

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

                                       /s/ Jeffrey M. Jonas
                                       -----------------------------------------
                                       Jeffrey M. Jonas

                                       AVAX TECHNOLOGIES, INC.

                                       By: /s/ John K. A. Prendergast, Ph.D.
                                           -------------------------------------
                                           Name:  John K. A. Prendergast, Ph.D.
                                           Title: Director

                                       13
<PAGE>

                                    Exhibit I

    Some Criteria for Assessment of Chief Executive Officer Performance Bonus

            Coverage of the Company by Analysts

            National Market Listing

            Corporate Alliances

            Revenues

            Global Business Strategy in place

            Regulatory Approval of Product

            Significant fund-raising with institutional investors

                                       14
<PAGE>

                                   Exhibit II

                          Jonas Incentive Stock Options

Shares            Issue             Price                     Expiration

318,872           6/1/96            1.000                     06/01/03

150,000           7/10/97           4.500                     07/10/04

120,000           10/07/98          1.250                     10/07/05

                                       15<PAGE>

                                                                    EXHIBIT 10.1

                            SONIC INNOVATIONS, INC.

                           INDEMNIFICATION AGREEMENT

     This Indemnification Agreement ("Agreement") is made as of this __ day of
__________, _____, by and between Sonic Innovations, Inc., a Delaware
corporation (the "Company"), and _________________________ ("Indemnitee").

     WHEREAS, the Company and Indemnitee recognize the increasing difficulty in
obtaining directors' and officers' liability insurance, the significant
increases in the cost of such insurance and the general reductions in the
coverage of such insurance;

     WHEREAS, the Company and Indemnitee further recognize the substantial
increase in corporate litigation in general, subjecting officers and directors
to expensive litigation risks at the same time as the availability and coverage
of liability insurance has been severely limited; and

     WHEREAS, the Company desires to attract and retain the services of highly
qualified individuals, such as Indemnitee, to serve as officers and directors of
the Company and to indemnify its officers and directors so as to provide them
with the maximum protection permitted by law.

     NOW, THEREFORE, in consideration for Indemnitee's services as an officer or
director of the Company, the Company and Indemnitee hereby agree as follows:

     1.   Indemnification.

          (a)  Third Party Proceedings. The Company shall indemnify Indemnitee
if Indemnitee is or was a party or is threatened to be made a party to any
threatened, pending or completed action, suit, proceeding or any alternative
dispute resolution mechanism, whether civil, criminal, administrative or
investigative (other than an action by or in the right of the Company) by reason
of the fact that Indemnitee is or was a director, officer, employee or agent of
the Company, or any subsidiary of the Company, or by reason of the fact that
Indemnitee is or was serving at the request of the Company as a director,
officer, employee or agent of another corporation, partnership, joint venture,
trust or other enterprise, against expenses (including attorneys' fees),
judgments, fines and amounts paid in settlement (if such settlement is approved
in advance by the Company, which approval shall not be unreasonably withheld)
actually and reasonably incurred by Indemnitee in connection with such action,
suit or proceeding if Indemnitee acted in good faith and in a manner Indemnitee
reasonably believed to be in or not opposed to the best interests of the
Company, and, with respect to any criminal action or proceeding, had no
reasonable cause to believe Indemnitee's conduct was unlawful. The termination
of any action, suit or proceeding by judgment, order, settlement, conviction, or
upon a plea of nolo contendere or its equivalent, shall not, of itself, create a
presumption that Indemnitee did not act in good faith and in a manner which
Indemnitee reasonably believed to be in or not opposed to the best interests of
the Company, and, with respect to any
<PAGE>

criminal action or proceeding, had reasonable cause to believe that Indemnitee's
conduct was unlawful.

          (b)  Proceedings By or in the Right of the Company. The Company shall
indemnify Indemnitee if Indemnitee was or is a party or is threatened to be made
a party to any threatened, pending or completed action or suit by or in the
right of the Company or any subsidiary of the Company to procure a judgment in
its favor by reason of the fact that Indemnitee is or was a director, officer,
employee or agent of the Company, or any subsidiary of the Company, or by reason
of the fact that Indemnitee is or was serving at the request of the Company as a
director, officer, employee or agent of another corporation, partnership, joint
venture, trust or other enterprise, against expenses (including attorneys' fees)
and, to the fullest extent permitted by law, amounts paid in settlement actually
and reasonably incurred by Indemnitee in connection with the defense or
settlement of such action or suit if Indemnitee acted in good faith and in a
manner Indemnitee reasonably believed to be in or not opposed to the best
interests of the Company, except that no indemnification shall be made in
respect of any claim, issue or matter as to which Indemnitee shall have been
adjudged to be liable to the Company unless and only to the extent that the
Court of Chancery of the State of Delaware or the court in which such action or
suit was brought shall determine upon application that, despite the adjudication
of liability but in view of all the circumstances of the case, Indemnitee is
fairly and reasonably entitled to indemnity for such expenses which the Court of
Chancery of the State of Delaware or such other court shall deem proper.

          (c)  Mandatory Payment of Expenses. To the extent that Indemnitee has
been successful on the merits or otherwise in defense of any action, suit or
proceeding referred to in Subsections (a) and (b) of this Section 1, or in
defense of any claim, issue or matter therein, Indemnitee shall be indemnified
against expenses (including attorneys' fees) actually and reasonably incurred by
Indemnitee in connection therewith.

     2.   Agreement to Serve. In consideration of the protection afforded by
this Agreement, if Indemnitee is a director of the Company he agrees to serve at
least for the 90 days after the effective date of this Agreement as a director
and not to resign voluntarily during such period without the written consent of
a majority of the Board of Directors. If Indemnitee is an officer of the Company
not serving under an employment contract, he agrees to serve in such capacity at
least for 90 days and not to resign voluntarily during such period without the
written consent of a majority of the Board of Directors. Following the
applicable period set forth above, Indemnitee agrees to continue to serve in
such capacity at the will of the Company (or under separate agreement, if such
agreement exists) so long as he is duly appointed or elected and qualified in
accordance with the applicable provisions of the Bylaws of the Company or any
subsidiary of the Company or until such time as he tenders his resignation in
writing. Nothing contained in this Agreement is intended to create in Indemnitee
any right to continued employment.

     3.   Expenses; Indemnification Procedure.

          (a)  Advancement of Expenses. The Company shall advance all expenses
incurred by Indemnitee in connection with the investigation, defense, settlement
or appeal of any civil or criminal action, suit or proceeding referenced in
Section 1(a) or (b) hereof (but not amounts actually

                                      -2-
<PAGE>

paid in settlement of any such action, suit or proceeding). Indemnitee hereby
undertakes to repay such amounts advanced only if, and to the extent that, it
shall ultimately be determined that Indemnitee is not entitled to be indemnified
by the Company as authorized hereby. The advances to be made hereunder shall be
paid by the Company to Indemnitee within thirty (30) days following delivery of
a written request therefor by Indemnitee to the Company.

          (b)  Notice/Cooperation by Indemnitee. Indemnitee shall, as a
condition precedent to his right to be indemnified under this Agreement, give
the Company notice in writing as soon as practicable of any claim made against
Indemnitee for which indemnification will or could be sought under this
Agreement. Notice to the Company shall be directed to the President of the
Company at the address shown on the signature page of this Agreement (or such
other address as the Company shall designate in writing to Indemnitee). Notice
shall be deemed received three business days after the date postmarked if sent
by domestic certified or registered mail, properly addressed, five business days
if sent by airmail to a country outside of North America; otherwise notice shall
be deemed received when such notice shall actually be received by the Company.
In addition, Indemnitee shall give the Company such information and cooperation
as it may reasonably require and as shall be within Indemnitee's power.

          (c)  Procedure. Any indemnification and advances provided for in
Section 1 and this Section 3 shall be made no later than thirty (30) days after
receipt of the written request of Indemnitee. If a claim under this Agreement,
under any statute, or under any provision of the Company's Certificate of
Incorporation or Bylaws providing for indemnification, is not paid in full by
the Company within thirty (30) days after a written request for payment thereof
has first been received by the Company, Indemnitee may, but need not, at any
time thereafter bring an action against the Company to recover the unpaid amount
of the claim and, subject to Section 14 of this Agreement, Indemnitee shall also
be entitled to be paid for the expenses (including attorneys' fees) of bringing
such action. It shall be a defense to any such action (other than an action
brought to enforce a claim for expenses incurred in connection with any action,
suit or proceeding in advance of its final disposition) that Indemnitee has not
met the standards of conduct which make it permissible under applicable law for
the Company to indemnify Indemnitee for the amount claimed. However, Indemnitee
shall be entitled to receive interim payments of expenses pursuant to Subsection
3(a) unless and until such defense may be finally adjudicated by court order or
judgment from which no further right of appeal exists. It is the parties'
intention that if the Company contests Indemnitee's right to indemnification,
the question of Indemnitee's right to indemnification shall be for the court to
decide, and neither the failure of the Company (including its Board of
Directors, any committee or subgroup of the Board of Directors, independent
legal counsel, or its stockholders) to have made a determination that
indemnification of Indemnitee is proper in the circumstances because Indemnitee
has met the applicable standard of conduct required by applicable law, nor an
actual determination by the Company (including it Board of Directors, any
committee or subgroup of the Board of Directors, independent legal counsel, or
its stockholders) that Indemnitee has not met such applicable standard of
conduct, shall create a presumption that Indemnitee has or has not met the
applicable standard of conduct.

          (d)  Notice to Insurers. If, at the time of the receipt of a notice of
a claim pursuant to Section 3(b) hereof, the Company has director and officer
liability insurance in effect, the Company

                                      -3-
<PAGE>

shall give prompt notice of the commencement of such proceeding to the insurers
in accordance with the procedures set forth in the respective policies. The
Company shall thereafter take all necessary or desirable action to cause such
insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of
such proceeding in accordance with the terms of such policies.

          (e)  Selection of Counsel. In the event the Company shall be obligated
under Section 3(a) hereof to pay the expenses of any proceeding against
Indemnitee, the Company, if appropriate, shall be entitled to assume the defense
of such proceeding, with counsel approved by Indemnitee, upon the delivery to
Indemnitee of written notice of its election to do so. After delivery of such
notice, approval of such counsel by Indemnitee and the retention of such counsel
by the Company, the Company will not be liable to Indemnitee under this
Agreement for any fees of counsel subsequently incurred by Indemnitee with
respect to the same proceeding, provided that (i) Indemnitee shall have the
right to employ his counsel in any such proceeding at Indemnitee's expense; and
(ii) if (A) the employment of counsel by Indemnitee has been previously
authorized by the Company, (B) Indemnitee shall have reasonably concluded that
there may be a conflict of interest between the Company and Indemnitee in the
conduct of any such defense, or (C) the Company shall not, in fact, have
employed counsel to assume the defense of such proceeding, then the fees and
expenses of Indemnitee's counsel shall be at the expense of the Company.

     4.   Additional Indemnification Rights; Nonexclusivity.

          (a)  Scope.  Notwithstanding any other provision of this Agreement,
the Company hereby agrees to indemnify the Indemnitee to the fullest extent
permitted by law, notwithstanding that such indemnification is not specifically
authorized by the other provisions of this Agreement, the Company's Certificate
of Incorporation, the Company's Bylaws or by statute. In the event of any
change, after the date of this Agreement, in any applicable law, statute, or
rule which expands the right of a Delaware corporation to indemnify a member of
its board of directors or an officer, such changes shall be, ipso facto, within
the purview of Indemnitee's rights and Company's obligations, under this
Agreement. In the event of any change in any applicable law, statute or rule
which narrows the right of a Delaware corporation to indemnify a member of its
board of directors or an officer, such changes, to the extent not otherwise
required by such law, statute or rule to be applied to this Agreement shall have
no effect on this Agreement or the parties' rights and obligations hereunder.

          (b)  Nonexclusivity.  The indemnification provided by this Agreement
shall not be deemed exclusive of any rights to which Indemnitee may be entitled
under the Company's Certificate of Incorporation, its Bylaws, any agreement, any
vote of stockholders or disinterested Directors, the General Corporation Law of
the State of Delaware, or otherwise, both as to action in Indemnitee's official
capacity and as to action in another capacity while holding such office. The
indemnification provided under this Agreement shall continue as to Indemnitee
for any action taken or not taken while serving in an indemnified capacity even
though he may have ceased to serve in such capacity at the time of any action,
suit or other covered proceeding.

     5.   Partial Indemnification.  If Indemnitee is entitled under any
provision of this Agreement to indemnification by the Company for some or a
portion of the expenses, judgments, fines or penalties actually or reasonably
incurred by him in the investigation, defense, appeal or

                                      -4-
<PAGE>

settlement of any civil or criminal action, suit or proceeding, but not,
however, for the total amount thereof, the Company shall nevertheless indemnify
Indemnitee for the portion of such expenses, judgments, fines or penalties to
which Indemnitee is entitled.

     6.   Mutual Acknowledgement.  Both the Company and Indemnitee acknowledge
that in certain instances, Federal law or applicable public policy may prohibit
the Company from indemnifying its directors and officers under this Agreement or
otherwise. Indemnitee understands and acknowledges that the Company has
undertaken or may be required in the future to undertake with the Securities and
Exchange Commission to submit the question of indemnification to a court in
certain circumstances for a determination of the Company's right under public
policy to indemnify Indemnitee.

     7.   Officer and Director Liability Insurance. The Company shall, from time
to time, make the good faith determination whether or not it is practicable for
the Company to obtain and maintain a policy or policies of insurance with
reputable insurance companies providing the officers and directors of the
Company with coverage for losses from wrongful acts, or to ensure the Company's
performance of its indemnification obligations under this Agreement. Among other
considerations, the Company will weigh the costs of obtaining such insurance
coverage against the protection afforded by such coverage. In all policies of
director and officer liability insurance, Indemnitee shall be named as an
insured in such a manner as to provide Indemnitee the same rights and benefits
as are accorded to the most favorably insured of the Company's directors, if
Indemnitee is a director; or of the Company's officers, if Indemnitee is not a
director of the Company but is an officer. Notwithstanding the foregoing, the
Company shall have no obligation to obtain or maintain such insurance if the
Company determines in good faith that such insurance is not reasonably
available, if the premium costs for such insurance are disproportionate to the
amount of coverage provided, if the coverage provided by such insurance is
limited by exclusions so as to provide an insufficient benefit, or if Indemnitee
is covered by similar insurance maintained by a subsidiary or parent of the
Company.

     8.   Severability. Nothing in this Agreement is intended to require or
shall be construed as requiring the Company to do or fail to do any act in
violation of applicable law. The Company's inability, pursuant to court order,
to perform its obligations under this Agreement shall not constitute a breach of
this Agreement. The provisions of this Agreement shall be severable as provided
in this Section 8. If this Agreement or any portion hereof shall be invalidated
on any ground by any court of competent jurisdiction, then the Company shall
nevertheless indemnify Indemnitee to the full extent permitted by any applicable
portion of this Agreement that shall not have been invalidated, and the balance
of this Agreement not so invalidated shall be enforceable in accordance with its
terms.

     9.   Exceptions. Any other provision herein to the contrary
notwithstanding, the Company shall not be obligated pursuant to the terms of
this Agreement:

          (a)  Claims Initiated by Indemnitee. To indemnify or advance expenses
to Indemnitee with respect to proceedings or claims initiated or brought
voluntarily by Indemnitee and not by way of defense, except with respect to
proceedings brought to establish or enforce a right to indemnification under
this Agreement or any other statute or law or otherwise as required under

                                      -5-
<PAGE>

Section 145 of the Delaware General Corporation Law, but such indemnification or
advancement of expenses may be provided by the Company in specific cases if the
Board of Directors has approved the initiation or bringing of such suit; or

          (b)  Lack of Good Faith.  To indemnify Indemnitee for any expenses
incurred by the Indemnitee with respect to any proceeding instituted by
Indemnitee to enforce or interpret this Agreement, if a court of competent
jurisdiction determines that each of the material assertions made by the
Indemnitee in such proceeding was not made in good faith or was frivolous; or

          (c)  Insured Claims.  To indemnify Indemnitee for expenses or
liabilities of any type whatsoever (including, but not limited to, judgments,
fines, ERISA excise taxes or penalties, and amounts paid in settlement) which
have been paid directly to Indemnitee by an insurance carrier under a policy of
officers' and directors' liability insurance maintained by the Company.

          (d)  Claims Under Section 16(b). To indemnify Indemnitee for expenses
and the payment of profits arising from the purchase and sale by Indemnitee of
securities in violation of Section 16(b) of the Securities Exchange Act of 1934,
as amended, or any similar successor statute.

     10.  Construction of Certain Phrases.

          (a)  For purposes of this Agreement, references to the "Company" shall
include, in addition to the resulting corporation, any constituent corporation
(including any constituent of a constituent) absorbed in a consolidation or
merger which, if its separate existence had continued, would have had power and
authority to indemnify its directors, officers, and employees or agents, so that
if Indemnitee is or was a director, officer, employee or agent of such
constituent corporation, or is or was serving at the request of such constituent
corporation as a director, officer, employee or agent of another corporation,
partnership, joint venture, trust or other enterprise, Indemnitee shall stand in
the same position under the provisions of this Agreement with respect to the
resulting or surviving corporation as Indemnitee would have with respect to such
constituent corporation if its separate existence had continued.

          (b)  For purposes of this Agreement, references to "other enterprises"
shall include employee benefit plans; references to "fines" shall include any
excise taxes assessed on Indemnitee with respect to an employee benefit plan;
and references to "serving at the request of the Company" shall include any
service as a director, officer, employee or agent of the Company which imposes
duties on, or involves services by, such director, officer, employee or agent
with respect to an employee benefit plan, its participants, or beneficiaries;
and if Indemnitee acted in good faith and in a manner Indemnitee reasonably
believed to be in the interest of the participants and beneficiaries of an
employee benefit plan, Indemnitee shall be deemed to have acted in a manner "not
opposed to the best interests of the Company" as referred to in this Agreement.

     11.  Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall constitute an original.

                                      -6-
<PAGE>

     12.  Successors and Assigns.  This Agreement shall be binding upon the
Company and its successors and assigns, and shall inure to the benefit of
Indemnitee and Indemnitee's estate, heirs, legal representatives and assigns.

     13.  Attorneys' Fees.  In the event that any action is instituted by
Indemnitee under this Agreement to enforce or interpret any of the terms hereof,
Indemnitee shall be entitled to be paid all court costs and expenses, including
reasonable attorneys' fees, incurred by Indemnitee with respect to such action,
unless as a part of such action, the court of competent jurisdiction determines
that each of the material assertions made by Indemnitee as a basis for such
action were not made in good faith or were frivolous. In the event of an action
instituted by or in the name of the Company under this Agreement or to enforce
or interpret any of the terms of this Agreement, Indemnitee shall be entitled to
be paid all court costs and expenses, including attorneys' fees, incurred by
Indemnitee in defense of such action (including with respect to Indemnitee's
counterclaims and cross-claims made in such action), unless as a part of such
action the court determines that each of Indemnitee's material defenses to such
action were made in bad faith or were frivolous.

     14.  Notice.  All notices, requests, demands and other communications under
this Agreement shall be in writing and shall be deemed duly given (i) if
delivered by hand and receipted for by the party addressee, on the date of such
receipt, or (ii) if mailed by domestic certified or registered mail with postage
prepaid, on the third business day after the date postmarked. Addresses for
notice to either party are as shown on the signature page of this Agreement, or
as subsequently modified by written notice.

     15.  Consent to Jurisdiction.  The Company and Indemnitee each hereby
irrevocably consent to the jurisdiction of the courts of the State of Delaware
for all purposes in connection with any action or proceeding which arises out of
or relates to this Agreement and agree that any action instituted under this
Agreement shall be brought only in the state courts of the State of Delaware.

     16.  Choice of Law.  This Agreement shall be governed by and its provisions
construed in accordance with the laws of the State of Delaware, as applied to
contracts between Delaware residents entered into and to be performed entirely
within Delaware without regard to the conflict of law principles thereof.

     17.  Period of Limitations.  No legal action shall be brought and no cause
of action shall be asserted by or in the right of the Company against
Indemnitee, Indemnitee's estate, spouse, heirs, executors or personal or legal
representatives after the expiration of two years from the date of accrual of
such cause of action, and any claim or cause of action of the Company shall be
extinguished and deemed released unless asserted by the timely filing of a legal
action within such two-year period; provided, however, that if any shorter
                                    --------  -------
period of limitations is otherwise applicable to any such cause of action, such
shorter period shall govern.

     18.  Subrogation.  In the event of payment under this Agreement, the
Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee, who shall execute all documents required and shall do
all acts that may be necessary to secure such rights and to enable the Company
effectively to bring suit to enforce such rights.

                                      -7-
<PAGE>

     19.  Amendment and Termination.  No amendment, modification, termination or
cancellation of this Agreement shall be effective unless it is in writing signed
by both the parties hereto. No waiver of any of the provisions of this Agreement
shall be deemed or shall constitute a waiver of any other provisions hereof
(whether or not similar) nor shall such waiver constitute a continuing waiver.

     20.  Integration and Entire Agreement.  This Agreement sets forth the
entire understanding between the parties hereto and supersedes and merges all
previous written and oral negotiations, commitments, understandings and
agreements relating to the subject matter hereof between the parties hereto.

                                      -8-
<PAGE>

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

                              SONIC INNOVATIONS, INC.

                              __________________________________________________
                              Signature of Authorized Signatory

                              __________________________________________________
                              Print Name and Title

                              Address: 2795 East Cottonwood Parkway, Suite 660
                                       Salt Lake City, UT  84121-7036

AGREED TO AND ACCEPTED:

INDEMNITEE:

______________________________
Signature

______________________________
Print Name and Title

Address:  ____________________
          ____________________
          ____________________

                                      -9-

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