Document:

[Logo] DIOMED

                     EVLT MARKETING AND PROMOTION AGREEMENT

         EVLT  Marketing and Promotion  Agreement  entered into as of August 29,
2001 between Diomed,  Inc., a Delaware  corporation having its principal offices
at 1 Dundee Park, Andover, MA 01810 ("Diomed"),  Dr. Steven E. Zimmet of Austin,
Texas  (the  "Doctor"),  and  Endovenous  Associates,   L.P.,  a  Texas  limited
partnership with a principal  office at 1801 N. Lamar Blvd.,  Suite 103, Austin,
Texas 78701 (the "LP").

RECITALS

         WHEREAS,   Diomed  is  in  the  business  of   developing,   marketing,
manufacturing and selling laser systems for medical applications;

         WHEREAS,  Diomed  has filed a patent  application  covering  design and
function  of  optical  fibers,  application  number  85.70.75122  15 June  2001,
entitled  medical  laser  device  (such patent  application,  together  with all
inventions,  discoveries or improvements authored, conceived, developed, reduced
to practice,  or otherwise obtained by the Doctor that are referenced  thereinor
relate thereto are referred to collectively as the "Fiber Patent").

         WHEREAS,  the Doctor is trained and  knowledgeable in the use of lasers
for the  Endovenous  treatment  of  varicose  veins  ("EVLT")  (EVLT is a Diomed
Trademark);

         WHEREAS,  the Doctor has formed a single  member LP for the  purpose of
conducting the activities contemplated by this Agreement;

         WHEREAS,  Diomed desires to market and sell lasers worldwide for use in
EVLT and is in the process of  obtaining  FDA approval for the use of its lasers
to perform EVLT;

         WHEREAS,  the Doctor,  acting through the LP, is willing to train other
physicians  in the use of the Diomed laser for EVLT and is otherwise  willing to
promote the use of the Diomed laser for EVLT all as more  specifically set forth
in this Agreement;

         WHEREAS,  Diomed wishes to engage the Doctor, acting through his LP, to
help maximize Diomed's sales worldwide of lasers for EVLT and the Doctor and the
LP, wish to provide  assistance to Diomed in  connection  with the marketing and
promotion  of the lasers for EVLT,  all on the terms and  conditions  herein set
forth;

         WHEREAS,  For the  purpose  of this  contract  EVLT is  defined  as any
internal Varicose Vein Treatment performed with a laser and a optical fiber;

              NOW, THEREFORE, the parties hereby agree as follows:

     I.       MARKETING OBLIGATIONS OF THE PARTIES

              1.1     COVENANT TO PROMOTE  THE PRODUCT FOR EVLT.  Subject to the
                      terms and conditions of this Agreement, Diomed, the Doctor
                      and the LP shall work  together  and use their  respective
                      best  efforts to promote the use of the Diomed  lasers for
                      EVLT  throughout the world during the Term (as hereinafter
                      defined).

<PAGE>

                                 [Logo] DIOMED

              1.2     EXCLUSIVE PROMOTION. The Doctor and the LP each agrees
                      that, during the Term (and thereafter as provided in
                      Section 5.7), he and it shall not actively promote to
                      third parties any product for EVLT other than Diomed
                      lasers, optical fibers and associated EVLT kits.

              1.3     PROPRIETARY RIGHTS.

                      1.3.1  The Doctor hereby assigns, grants, conveys and
                             transfers to Diomed any and all right, title and
                             interest he has or may have in and to the Fiber
                             Patent. The Doctor will from time to time execute
                             and deliver to Diomed such documentation and take
                             such other reasonable action, at Diomed's expense,
                             which Diomed may request in order to effectively
                             carry out this Section and invest in Diomed the
                             Fiber Patent and title thereto. The Doctor will
                             assist Diomed in every proper way (but at Diomed's
                             expense) to obtain and from time to time enforce
                             rights with respect to the Fiber Patent in any and
                             all countries, and will execute all documents
                             reasonably necessary or appropriate for this
                             purpose. In the event that Diomed is unable for any
                             reason whatsoever to secure the Doctor's consent to
                             any document reasonably necessary or appropriate
                             for any of the foregoing purposes, (including
                             renewals, extensions, continuations, divisions or
                             continuations in part), the Doctor hereby
                             irrevocably designate and appoint Diomed and its
                             duly authorized officers and agents, as his agents
                             and attorneys in fact to act for and on his behalf
                             and instead of him, for the purpose of executing
                             and filing any such document and doing all other
                             lawfully permitted acts to accomplish the foregoing
                             purposes with the same legal force and effect as if
                             executed by him.

                      1.3.2  The Doctor and LP hereby acknowledge that "EVLT" is
                             a trademark of Diomed, and that neither the Doctor
                             nor the LP has any rights therein. The Doctor and
                             the LP understand that Diomed intends to register
                             such trademark with the U.S. Patent and Trademark
                             Office, and agree to reasonably cooperate with
                             Diomed so as to permit Diomed to obtain such
                             registration.

              DUTIES OF THE DOCTOR

              Subject to the terms and conditions of this  Agreement, during the
              Term:

              2.1     EVLT  TRAINING OF OTHER  PHYSICIANS.  The  Doctor,  acting
                      through  the  LP,  agrees  to  use  his  best  efforts  to
                      personally train other qualified physicians,  as set forth
                      in EXHIBIT B, and identified and approved by the President
                      or the  Director  of  Marketing  of  Diomed  in the use of
                      Diomed  lasers for EVLT.  The Doctor will  provide  Diomed
                      with  a  certification  in the  form  attached  hereto  as
                      EXHIBIT A when each physician's training is complete.

              2.2     PROMOTIONAL ACTIVITIES. The Doctor, acting through his LP,
                      will use his  best  efforts  to  perform  the  promotional
                      activities  set forth in  EXHIBIT  B, as  EXHIBIT B may be
                      amended from time to time by written consent of Diomed and
                      the Doctor.

<PAGE>

                                 [Logo] DIOMED

     2.3     CONFIDENTIALITY.  The  Doctor  and  the LP  each  acknowledge  that
             information  about  Product  sales to be  provided by Diomed to the
             Doctor and the LP hereunder and any other  information  provided to
             the Doctor or the LP and  designated as  confidential  by Diomed at
             the time of  disclosure  constitute  confidential  and  proprietary
             information  of Diomed and the Doctor and the LP each agree that he
             and it will not use such  information  except in furtherance of the
             purposes of this Agreement and will hold such information in strict
             confidence.  The  obligations  of the  Doctor and the LP under this
             Section  2.3 shall be limited  to a period of three  years from the
             date of  expiration  or  earlier  termination  of  this  Agreement.
             Neither  the  Doctor  nor  the LP  shall  have  any  obligation  of
             confidentiality  with respect to any  information (a) in the public
             domain,  other  than by a breach of this  Section  2.3 by either of
             them,  (b)  rightfully  received  from a third  party  without  any
             obligation of  confidentiality,  or (c) generally made available to
             third parties by Diomed without restriction on disclosure.

     2.4     PERSONAL OBLIGATION.  Notwithstanding the Doctor's use of the LP to
             provide  services  under this  Agreement,  all  obligations  of the
             Doctor and the LP under this  Agreement  shall be joint and several
             and such obligations may be fully enforced by Diomed against either
             the Doctor or the LP should the other party breach this  Agreement.
             Notwithstanding   anything  to  the  contrary   contained  in  this
             Agreement,  in no event  shall the total  liability  of the  Doctor
             and/or the LP for damages arising out of this Agreement  exceed the
             aggregate amount of consideration received by the Doctor and/or the
             LP  (whether  in cash,  or  exercised  options or shares of capital
             stock)  under  this  Agreement  (it  being   understood  that  such
             limitation  on  liability  for  damages  shall not  limit  Diomed's
             ability to seek injunctive or other equitable relief against either
             the  Doctor  or  the  LP in  the  event  the  Doctor  breaches  his
             obligations under Sections 1.2, 1.3, or 2.3).

     OBLIGATIONS OF DIOMED

     Subject  to the terms and  conditions  of this  Agreement,  during the Term
     Diomed agrees as follows:

3.1  INITIAL  PAYMENT.  With in 60 days of execution of this  Agreement,  Diomed
     will pay the LP the sum of **CONFIDENTIAL TREATMENT REQUESTED**.

3.2  PAYMENT FOR TRAINING.  Within thirty (30) days of receipt of  certification
     in the form of  EXHIBIT  A from the  Doctor  that  training  of  physicians
     pursuant  to  Section  2.1  has  been  completed,  Diomed  will  pay the LP
     **CONFIDENTIAL  TREATMENT  REQUESTED**  for  each  such  approved  training
     session per licensed  physician.  Within  thirty (30) days of submission of
     receipts,  Diomed will reimburse up to **CONFIDENTIAL TREATMENT REQUESTED**
     for foreign travel and  **CONFIDENTIAL  TREATMENT  REQUESTED** for domestic
     travel for pre-approved lectures/workshops where discussion or presentation
     on EVLT is on the agenda .

3.3  PAYMENTS BASED ON PRODUCT SALES.

     3.3.1   From the Effective  Date until  termination  of this  Agreement (by
             expiration  or  earlier   termination)   or  until  total  payments
             hereunder  reach  **CONFIDENTIAL  TREATMENT  REQUESTED**  whichever
             first  occurs,  and except as  described  in Section  3.3.2  below,
             Diomed

<PAGE>

                                 [Logo] DIOMED

             will  pay the LP  **CONFIDENTIAL  TREATMENT  REQUESTED**  for  each
             Product (as hereinafter  defined, and other than OEM Sales) sold in
             North  America  (defined  as  Canada  and the  United  States)  and
             **CONFIDENTIAL  TREATMENT  REQUESTED** for each Product (other than
             OEM  Sales)  sold in the rest of the world.  Payment  shall be made
             within  thirty  (30)  days  of the  end of  each  calendar  quarter
             following the Effective  Date. In the case of OEM Sales (as defined
             below),  Diomed  will  pay  to  the  LP  **CONFIDENTIAL   TREATMENT
             REQUESTED**   for  each   Product   sold  in  North   America   and
             **CONFIDENTIAL  TREATMENT  REQUESTED** for each Product sold in the
             rest of the world.  An "OEM Sale"  shall mean any sale of a Product
             to a purchaser  under an  agreement  where the Product is delivered
             without  a  Diomed  logo  and  the  purchaser  has  the  rights  to
             separately  brand the  Product.  Reductions  shall be  allowed  for
             returned  Products and uncollected  accounts.  Each payment will be
             accompanied by a report as set forth in Section 3.8.
3.3.2

             Notwithstanding  the payments  provided  under Section 3.3.1 above,
             the parties  agree that Diomed may reduce such  specified  payments
             should Diomed earn an overall **CONFIDENTIAL  TREATMENT REQUESTED**
             on the Products of less that **CONFIDENTIAL  TREATMENT REQUESTED**.
             Should on a  quarterly  basis,  Diomed's  **CONFIDENTIAL  TREATMENT
             REQUESTED** fall below  **CONFIDENTIAL  TREATMENT  REQUESTED** then
             the payments  specified in

                      **CONFIDENTIAL TREATMENT REQUESTED**

             Section 3.3.1 above shall be adjusted as follows:

             In no case  shall the  reduction  exceed  **CONFIDENTIAL  TREATMENT
             REQUESTED**. For purposes of this Section, **CONFIDENTIAL TREATMENT
             REQUESTED** shall be determined  quarterly under generally accepted
             accounting principles in the United States, with the payments under
             this Agreement included in cost of sales.  **CONFIDENTIAL TREATMENT
             REQUESTED**.  Should a reduction  under this  Section  apply in any
             quarter,  Diomed will provide  documentation  for the reduction and
             the LP may request that Diomed's  independent auditors (at Diomed's
             expense) and as part of the annual audit, certify such computation.
             Such a request must be made in writing within 45 days of year end.

     3.3.3   In addition to payments for Products as provided for above,  Diomed
             shall  pay the LP  **CONFIDENTIAL  TREATMENT  REQUESTED**  for each
             optical fiber  manufactured and sold by Diomed utilizing the unique
             fiber design components of the Fiber Patent (a "Qualified  Fiber").
             Where a  Qualified  Fiber is  included  in a  disposable  Kit which
             contains other  components the amount paid shall be  **CONFIDENTIAL
             TREATMENT  REQUESTED**  for each kit  which  includes  a  Qualified
             Fiber.

3.4  CERTAIN  DEFINITIONS.   For  purposes  of  this  Agreement,   "Product"  or
     "Products" means the Diomed D15 plus and D30 plus lasers (and  equivalents)
     that  are  sold  with an EVLT  application  box and  excludes  all  fibers,
     disposables and related services.

<PAGE>

                                 [Logo] DIOMED

3.5  INITIAL OPTION GRANT. In  consideration  of the  undertakings by the Doctor
     and the LP herein,  Diomed  hereby grants to the LP an option (the "Initial
     Option") to purchase  30,000  shares of Diomed  Common  Stock at a purchase
     price of $2.25 per share under the 2001 Stock Option Plan adopted by Diomed
     (the  "Plan").  The Initial  Option  shall be fully  vested on issuance and
     exercisable  for a period  of two (2)  years  from the date of  grant.  The
     Initial  Option will be non  transferable  and may only be exercised on the
     condition  that the Doctor  executes  the  Stockholder  Agreement  attached
     herewith as Exhibit C (as it may be amended from time to time). The Initial
     Option (and shares issued on exercise thereof) shall also be subject to all
     provisions of the  Certificate of  Incorporation  and Bylaws of Diomed,  or
     successor  entity,  as from time to time revised or amended or terms of any
     conversion of the options in connection  with a merger or acquisition  with
     another company so long as the holder is treated on a pari parsu basis.

3.6  PRODUCT OPTIONS. For each Product sold by Diomed beginning on the Effective
     Date and ending  November 15,  2005,  Diomed will grant to the LP under the
     Plan an option (a "Product  Option") to purchase  five (5) shares of Common
     Stock of Diomed up to an aggregate  maximum of 45,000  shares (which number
     is inclusive of shares  subject to options  granted under Section 3.5). The
     Product Options shall be granted as of the end of each calendar  quarter in
     which  Product  sales were sold  (subject  to  adjustment  for  returns and
     uncollected  accounts)  and shall be fully  vested on  grant.  The  Product
     Options issued  hereunder shall be subject to the same terms as the Initial
     Options  issued under  Section 3.5 except that the  exercise  price of each
     quarterly  grant shall be based on fair market value of Diomed common stock
     at the time of grant as determined  at the sole  discretion of the Board of
     Director and consistent with other Employee options (if any) granted during
     the quarter.

3.7  QUARTERLY  REPORT.  Diomed  shall  provide the Doctor with a report  within
     thirty (35) days of the end of each calendar quarter  specifying the number
     of Products sold for EVLT during the  immediately  prior  calendar  quarter
     (and specifying sales in North America and sales in the rest of the world),
     the number of stock options earned as a result of such sales,  the exercise
     price of the stock  options,  and the  aggregate  number  of stock  options
     awarded  the LP to the date of the  report.  For  purposes  of the  Product
     Options,  the number of Products  sold in any given quarter shall equal the
     number of Products for which  Diomed is  obligated to make a payment  under
     Section 3.3.

3.8  ANNUAL VERIFICATION.  Within ninety (90) days of the close of each calendar
     year, Diomed will provide the Doctor with an annual report of the number of
     Products  sold in the  immediately  preceding  calendar  year,  verified by
     Diomed's  auditors.  The Doctor and/or the LP shall have the right to audit
     Diomed's books and records related to the transactions  contemplated  under
     this  Agreement.  In  addition  to any other  sums that may be owing to the
     Doctor and/or the LP as a result of such audit, Diomed shall be responsible
     for the cost of such audit in the event a discrepancy  of five percent (5%)
     of more is documented by the Doctor's and/or LP's auditor.

     INVESTMENT REPRESENTATIONS

4.1  OPTION GRANTS SUBJECT TO PLAN. The Doctor and the LP each acknowledges that
     the options granted and to be granted to the LP hereunder are being granted
     under and are subject to the Plan.  All  references to numbers of shares or
     price per share under this

<PAGE>

                                 [Logo] DIOMED

     Agreement shall be subject to adjustment in a number of circumstances  such
     as     merger,     consolidation,     reorganization,     recapitalization,
     reclassification,  stock  dividend,  stock  split,  combination  of shares,
     exchange of shares,  change in corporate structure or the like, as provided
     in the Plan.

4.2  INVESTMENT  INTENT.  The  Doctor  and the LP  each  agrees  that  the LP is
     acquiring  and will  acquire  the  Options  and the shares of Common  Stock
     issuable thereunder for its own account and not with a view to, or for sale
     in connection  with, any  "distribution"  thereof within the meaning of the
     Securities Act of 1933, as amended (the "Securities Act").

4.3  ADEQUATE INVESTIGATION. The Doctor and the LP each acknowledges that Diomed
     has granted him and it the opportunity to make a thorough  investigation of
     the business affairs of Diomed and he and it has availed himself and itself
     of such  opportunity,  either  directly  or through  his or its  authorized
     representatives. In particular, Diomed has made available to the Doctor and
     the LP and their respective  representative,  access to Diomed officers and
     employees  for the  purpose  of  discussing  and  responding  to  questions
     concerning  Diomed and its business and Diomed has  furnished to the Doctor
     and  the  LP all  agreements,  financial  statements  and  other  documents
     pertaining  to Diomed and its  business  requested by him or it. The Doctor
     and  the LP  each  acknowledges  that  he and it has  made  an  independent
     investigation  of Diomed  and an  independent  evaluation  of the risks and
     merits of acquiring  the Options and entering  into this  Agreement and has
     received all the information that he or it has requested in connection with
     deciding whether to accept the Options.

4.4  INVESTMENT SOPHISTICATION.  The Doctor and the LP each acknowledges that he
     and it (a) is  knowledgeable  and experienced in business  matters,  (b) is
     capable of  independently  evaluating the risks and merits of accepting and
     exercising the Options granted hereunder,  (c) has independently determined
     that  the  investment  is a  suitable  investment  for the LP,  and (d) has
     sufficient  financial  resources to bear the loss of the LP's investment in
     the Options.

4.5  RESTRICTED  SECURITIES.  The  Doctor  and  the  LP  each  acknowledges  and
     understands  that,  because  neither the Options nor the Common Stock to be
     received  upon  exercise  of the  Options  will  be  registered  under  the
     Securities  Act or  applicable  state  securities  laws (even after  Diomed
     becomes a public company), the LP will not be able to dispose of the Common
     Stock  received upon exercise of the Options  unless the sale of the shares
     of Common  Stock  received  by it is  registered  or  exemptions  from such
     registration are available. The Doctor and the LP each further acknowledges
     and  understands  that neither he nor it has any right to require Diomed to
     register  the Common  Stock the LP  receives  upon  exercise of any Options
     granted  hereunder under the Securities Act or applicable  state securities
     laws and that the Company  may, as a  condition  to the  transfer of Common
     Stock received upon exercise of the Options, require an opinion of counsel,
     in form and substance reasonably  satisfactory to Diomed to the effect that
     the proposed transfer does not result in violation of the Securities Act or
     applicable  state  securities  laws,  unless such transfer is covered by an
     effective   registration   statement  under  the  Securities  Act  and  all
     applicable  state  securities  laws.  In  furtherance  of the  above,  each
     certificate  representing  shares of Common Stock received upon exercise of
     Options will bear a legend to that effect as well as any legend required by
     the Stockholder Agreement signed by the LP.

<PAGE>

                                 [Logo] DIOMED

4.6  DOMICILE. The legal domicile of each of the Doctor and the LP is Texas.

4.7  ACCREDITED  INVESTOR.  The LP and the Doctor are an  "accredited  investor"
     within  the  meaning  of Rule 501 of  Regulation  D  promulgated  under the
     Securities  Act of 1933, as amended,  and was not formed for the purpose of
     acquiring the Options.

TERM AND TERMINATION

5.1  TERM.  The  Agreement  shall  be  effective  as of  August  29,  2001  (the
     "Effective Date") and, unless earlier terminated as provided herein,  shall
     automatically terminate on November 16, 2010 (the period from the Effective
     Date  until  expiration  or earlier  termination  of this  Agreement  being
     referred to herein as the "Term").

5.2  TERMINATION BY DIOMED.  This Agreement may be terminated in its entirety by
     Diomed  effective upon the giving of notice of termination to the Doctor no
     later than January 31 following the end of any calendar year beginning with
     calendar year 2001 in which at least **CONFIDENTIAL  TREATMENT  REQUESTED**
     Products are not sold worldwide for EVLT.

5.3  TERMINATION  BY THE DOCTOR AND THE LP. This  Agreement may be terminated by
     the Doctor (on behalf of himself and the LP)  effective  upon the giving of
     notice of  termination to Diomed no later than January 31 following the end
     of any calendar  year  beginning  with calendar year 2001 in which at least
     **CONFIDENTIAL  TREATMENT  REQUESTED**  Products are not sold worldwide for
     EVLT.  Also,  this  Agreement may be terminated by the Doctor (on behalf of
     himself  and  the  LP) at  any  time  after  the  **CONFIDENTIAL  TREATMENT
     REQUESTED**  anniversary of the Effective Date effective upon the giving of
     six (6) months prior written notice of termination.

5.4  TERMINATION FOR BREACH.  Diomed, on the one hand, and the Doctor (on behalf
     of himself and the LP), on the other,  may terminate  this Agreement if the
     other defaults in the  performance of any agreement,  condition or covenant
     in this  Agreement and this default is not remedied  within sixty (60) days
     after written  demand to remedy the same has been given to the other party.
     For  purposes  of this  Section  5.4,  failure by the Doctor to perform his
     agreed upon duties as set forth in EXHIBIT B shall  constitute  a breach of
     this Agreement.  Upon  termination for default,  the  non-defaulting  party
     shall be free to pursue  any and all  remedies  available  to him or it. No
     remedy is intended to be exclusive and each remedy shall be cumulative.

5.5  TERMINATION  UPON  DEATH OR  DISCONTINUATION  OF  MEDICAL  PRACTICE  OF THE
     DOCTOR. This Agreement shall terminate upon the death of the Doctor.  Also,
     Diomed,  on the one hand, and the Doctor (on behalf of himself and the LP),
     on the other,  may  terminate  this  Agreement  if the practice of medicine
     ceases to be the Doctor's primary professional activity.

5.6  SURVIVAL.   Notwithstanding   termination  of  this   Agreement,   Diomed's
     obligations  under  Sections 3.2, 3.3 and 3.6 shall survive with respect to
     Product  sales  for  EVLT  prior  to  the  date  of  termination,  and  the
     obligations  of the Doctor and the LP under Section 1.2 shall survive until
     November 16, 2010.  Article IV,  Section 6.2 and Sections 7.7 and 7.8 shall
     survive termination of this Agreement.

<PAGE>

                                 [Logo] DIOMED

6    REPRESENTATIONS, WARRANTS AND INDEMNIFICATION

     6.1     AUTHORITY AND  ENFORCEMENT.  Each party to this Agreement  warrants
             that he or it has full  right,  power and  authority  to enter into
             this   Agreement  and  to  perform  the  covenants  and  agreements
             contemplated hereby, that this Agreement has been duly executed and
             delivered  by him or it  and  that  the  Agreement  is  enforceable
             against  him  or  it  in  accordance  with  its  terms,  except  as
             enforceability  may be limited by  bankruptcy,  insolvency or other
             creditors'  rights  generally  and the  availability  of  equitable
             remedies, including specific performance.

     6.2     LIMITATION ON LIABILITY. EXCEPT AS SPECIFICALLY PROVIDED HEREIN AND
             IN ANY  WARRANTY  DELIVERED  WITH  THE  PRODUCT,  DIOMED  GIVES  NO
             WARRANTIES  WHATSOEVER WITH RESPECT TO THE PRODUCT  INCLUDING,  BUT
             NOT LIMITED TO, ANY IMPLIED WARRANTY OF  MERCHANTABILITY OR FITNESS
             FOR A PARTICULAR  PURPOSE. IN NO EVENT SHALL DIOMED ON THE ONE HAND
             OR THE DOCTOR AND/OR THE LP ON THE OTHER BE LIABLE TO THE OTHER FOR
             ANY INCIDENTAL, CONSEQUENTIAL OR SPECIAL DAMAGES THAT THE OTHER MAY
             SUFFER  DIRECTLY  OR  INDIRECTLY  AS A  RESULT  OF THE  SALE OF THE
             PRODUCT  FOR  EVLT.   NOTWITHSTANDING   ANYTHING  TO  THE  CONTRARY
             CONTAINED IN THIS AGREEMENT,  IN NO EVENT SHALL THE TOTAL LIABILITY
             OF THE  DOCTOR  AND/OR  THE  LP FOR  DAMAGES  ARISING  OUT OF  THIS
             AGREEMENT EXCEED THE AGGREGATE AMOUNT OF CONSIDERATION  RECEIVED BY
             THE DOCTOR AND/OR THE LP (WHETHER IN CASH, OR EXERCISED  OPTIONS OR
             SHARES OF CAPITAL STOCK) UNDER THIS AGREEMENT

 7   MISCELLANEOUS

     7.1     ASSIGNMENT.  This Agreement  shall be binding upon and inure to the
             benefit of the parties and to their respective successors, personal
             representatives,  executors or assigns.  Neither this Agreement nor
             any part of it shall be  assignable  by the Doctor or the LP to any
             third  party.  Diomed  may  assign  this  Agreement  to  a  parent,
             subsidiary  or other  affiliate  and to any party that acquires the
             EVLT business from Diomed,  provided that such assignee assumes the
             obligations of Diomed hereunder in a written  instrument  delivered
             to the Doctor and the LP.

     7.2     NOTICES. Unless otherwise agreed in writing, all notices,  requests
             and other  communications  pursuant to this  Agreement  shall be in
             writing and addressed as follows:

                           If to Diomed:

                           Diomed, Inc. 1 Dundee Park
                           Andover, MA 01810 Attn: Peter
                           Klein

<PAGE>

                                 [Logo] DIOMED

                      If to the Doctor or the LP:

                               Endovenous Associates, L.P.
                               1801 N. Lamar Blvd.
                               Austin, TX 78701
                               Attn: Steven E. Zimmet, M.D.

             Any notice or other  communication  under this  Agreement  shall be
             deemed to be  sufficiently  given if made in writing  addressed  as
             above and delivered (a) by hand or by recognized overnight delivery
             service,  (b) by first class  registered or certified mail,  return
             receipt  requested,  or (c) by facsimile or electronic mail (with a
             confirmation  copy  dispatched as provided in subsection (a) or (b)
             above).  Notice shall be deemed to have been given upon delivery if
             delivered under subsection (a) or (c) and at the expiration of five
             (5) business  days after the date on which a notice is posted under
             subsection (b).

7.3  ENTIRE  AGREEMENT.  This  Agreement,  together  with the Exhibits  attached
     hereto, represents the entire agreement between the parties with respect to
     the  subject  matter  hereof  and   supersedes   any  other   agreement  or
     understanding,  written or oral,  that the parties  heretofore may have had
     with respect  thereto,  including,  without  limitation,  that certain Term
     Sheet dated as of December 18, 2000.

7.4  AMENDMENT.  No  amendment  or other  variation  of this  Agreement  will be
     binding  unless duly  executed by an  instrument  in writing  signed by the
     parties hereto.

7.5  NO WAIVER.  Failure by any party to enforce the  performance  of any of the
     provisions of this Agreement against another party shall neither constitute
     a  waiver  by it or  him of its or his  rights  hereunder  nor  affect  the
     validity of this  Agreement  in any way.  Any waiver by a party hereto of a
     breach of this  Agreement on the part of another party shall not constitute
     a precedent as to any subsequent breach on the part of such other party.

7.6  INVALIDITY.  In the event that any one or more of the provisions  contained
     in this  Agreement  should be  invalid,  illegal  or  unenforceable  in any
     respect,  the  validity,  legality  and  enforceability  of  the  remaining
     provisions  contained  herein  shall not in any way be affected or impaired
     thereby.

7.7  APPLICABLE  LAW.  This  Agreement  shall  be  governed  by the  laws of the
     Commonwealth of Massachusetts without application of Massachusetts law with
     respect to conflicts of law.

7.8  DISPUTE  RESOLUTION.  Any  dispute  that may arise  between  the parties in
     connection with or arising out of this Agreement must first be addressed by
     the  President  of Diomed and the Doctor who shall make a good faith effort
     to resolve the dispute.  If, within thirty (30) days of written notice that
     a dispute  exists there has been no  resolution  of the dispute,  then such
     dispute shall be resolved exclusively by arbitration in accordance with the
     Commercial  Arbitration Rules of the American Arbitration  Association then
     in force. The arbitration shall take place in Boston, Massachusetts, or New
     York, New York, and shall be final and binding on the parties, shall not be
     subject  to  any  appeal  and  shall  address  the  question  of  costs  of
     arbitration and the matters relating thereto. Judgment upon the

<PAGE>

                                 [Logo] DIOMED

     award  rendered  may  be  entered  in any  court  having  jurisdiction,  or
     application  may be made to such  court for a judicial  recognition  of the
     award or any order of enforcement thereof, as the case may be.

7.9  COUNTERPARTS.  This Agreement may be executed in one or more  counterparts,
     each of which shall be deemed to be an original,  but all of which shall be
     considered one and the same instrument.

7.10 HEADINGS.  The headings in this Agreement are inserted for convenience only
     and shall not be used to interpret this Agreement or for any other purpose.

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

 DIOMED, INC.                                 /s/ DR. STEVEN E. ZIMMET
                                             ------------------------
                                             DR. STEVEN E. ZIMMET

   PETER KLEIN                               ENDOVENOUS ASSOCIATES, L.P.

Title: CEO

                                             By:_________________ Print Name:

                                             Title: Manager

                                       10

<PAGE>

                                 [Logo] DIOMED

                                                                       EXHIBIT A

                         CERTIFICATION OF COMPLETION OF
                                 EVLT TRAINING

                            EVLT TRAINING CERTIFICATE

                          This document certifies that Dr.

                                 Street:
                                 City:
                                 ZIP: State:
                                 Phone:
                                 e-mail:

has  successfully  completed a one day training  session on  performing  an EVLT
procedure.

                  The Training was performed by Dr.   at the following location:

                                 Street:
                                 City:
                                 ZIP: State:
                                 Phone:
                                 e-mail:

                       We thank you for your participation

 This certificate merely certifies that the above named physician has completed
      the training session described above, and does not certify that such
        physician possesses any particular level of skill, competency or
                  experience with respect to an EVLT procedure.

                                       11<PAGE>

                                                                    EXHIBIT 10.7

                                                     December 21, 2001

John F. Antioco
10592 North 106th Place
Scottsdale, Arizona  85258

Dear Mr. Antioco:

     Reference is made to your employment agreement dated July 15, 1999 (your
"Employment Agreement"), with Blockbuster Inc. ("Blockbuster"). All defined
terms used without definitions shall have the meanings provided in your
Employment Agreement.

     This letter, when fully executed below, shall amend your Employment
Agreement as follows:

     1. Term. Paragraph 1 shall be amended to change the date representing the
end of the Employment Term in the first and second sentences from "June 15,
2002" to "December 31, 2006".

     2. Compensation/Salary. Paragraph 3(a) shall be amended to change the
reference to "June 15, 2002" in the second sentence to "December 31, 2006".

     3. Compensation/Bonus. Paragraph 3(b)(iii) shall be amended to read in its
entirety as follows:

     "Your Target Bonus for the calendar years 1999 through 2001 shall be 125%
     of Salary and the annual rate of Deferred Compensation (as defined in
     paragraph 3(c)) for such year. Your Target Bonus for the calendar years
     2002 through 2006 shall be 150% of Salary and the annual rate of Deferred
     Compensation for such year."

<PAGE>

John F. Antioco
December 21, 2001
Page 2

     4. Compensation/Deferred Compensation. Paragraph 3(c) shall be amended to
delete the words "and Two Hundred Thirty Thousand Dollars ($230,000) for the
portion of calendar year 2002 during the Employment Term" that appear at the end
of the second sentence and to insert the following sentence after the second
sentence:

     "The amount of Deferred Compensation shall be Six Hundred Thousand Dollars
     ($600,000) for calendar year 2002, Seven Hundred Fifty Thousand Dollars
     ($750,000) for calendar year 2003, Nine Hundred Thousand Dollars ($900,000)
     for calendar year 2004, One Million Fifty Thousand Dollars ($1,050,000) for
     calendar year 2005 and One Million Two Hundred Thousand Dollars
     ($1,200,000) for calendar year 2006."

     5. Compensation/Blockbuster Stock Options. Paragraph 3(d)(ii) shall be
amended to insert the following paragraph at the end thereof:

     "Blockbuster Special Grants. You shall receive grants (the "Blockbuster
      --------------------------
     Special Grants") under Blockbuster's 1999 Long-Term Management Incentive
     Plan of stock options to purchase an aggregate of Eight Hundred Thousand
     (800,000) shares of Blockbuster A Stock, awarded as follows, with an
     exercise price per share equal to the closing price of a share of
     Blockbuster A Stock on the New York Stock Exchange (the "NYSE") on the date
     of the grant:

                      Number of Shares of
                  Blockbuster A Stock Subject
                  To Blockbuster Special Grant       Date of Grant
                  ----------------------------       -------------
                           200,000                   December 12, 2001
                           200,000                   March 12, 2002
                           200,000                   June 12, 2002
                           200,000                   September 12, 2002

     Each Blockbuster Special Grant shall vest in four equal installments on
     January 1, 2003, January 1, 2004, January 1, 2005 and January 1, 2006."

     6. Compensation/Viacom Stock Options. Paragraph 3 shall be amended to
insert the following paragraph (e) at the end thereof:

     "(e) Viacom Stock Options: You shall receive a special grant (the "Viacom
          --------------------
     Special Grant") under Viacom's 2000 Long-Term Management Incentive Plan of
     stock options to purchase Six Hundred Thousand (600,000) shares of Viacom
     Class B Common Stock on December 13, 2001 (the "Date of the Viacom Special
     Grant"), with an exercise price per share equal to the closing price of a
     share of Viacom Class B Common Stock on the NYSE on the Date of the Viacom
     Special Grant. The Viacom Special Grant shall vest in four equal
     installments on January 1, 2003, January 1, 2004, January 1, 2005 and
     January 1, 2006."

<PAGE>

John F. Antioco
December 21, 2001
Page 3

     7. Termination Payments. Paragraph 8(d) shall be amended to change the
period from "eighteen (18)" months to "twenty-four (24)" months for which
mitigation shall not be required, and no offset for other compensation shall be
made, if your employment terminates for "Good Reason" or not for "cause".

     Except as herein amended, all other terms and conditions of your Employment
Agreement shall remain the same and your Employment Agreement, as herein
amended, shall remain in full force and effect.

     If the foregoing correctly sets forth our understanding, please sign, date
and return all four (4) copies of this letter agreement to the undersigned for
execution on behalf of Blockbuster; after this letter agreement has been
executed by Blockbuster and a fully-executed copy returned to you, it shall
constitute a binding amendment to your Employment Agreement.

                                         Very truly yours,

                                         BLOCKBUSTER INC.

                                         By:          /s/ Larry J. Zine
                                            ------------------------------------
                                            Name:  Larry J. Zine
                                            Title: Executive Vice President,
                                                   Chief Financial Officer and
                                                   Chief Administrative Officer

ACCEPTED AND AGREED:

         /s/John F. Antioco
----------------------------------
           John F. Antioco

Dated: December 28, 2001
       ---------------------------

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00036-of-00352.parquet"}]]