Document:

Exhibit 4.9

                          REGISTRATION RIGHTS AGREEMENT

         REGISTRATION RIGHTS AGREEMENT (this "Agreement"), dated as of September
20, 2002, by and among SeaView Video Technology, Inc., a Nevada corporation,
with its headquarters located at 200 Madonna Boulevard, Tierra Verde, Florida
33715 (the "Company"), and each of the undersigned (together with their
respective affiliates and any assignee or transferee of all of their respective
rights hereunder, the "Initial Investors").

         WHEREAS:

A.       In connection with the Securities Purchase Agreement by and among the
parties hereto of even date herewith (the "Securities Purchase Agreement"), the
Company has agreed, upon the terms and subject to the conditions contained
therein, to issue and sell to the Initial Investors (i) convertible debentures
in the aggregate principal amount of up to One Million Dollars ($1,000,000) (the
"Debentures") that are convertible into shares of the Company's common stock
(the "Common Stock"), upon the terms and subject to the limitations and
conditions set forth in such Debentures and (ii) warrants (the "Warrants" to
acquire an aggregate of 3,000,000 shares of Common Stock, upon the terms and
conditions and subject to the limitations and conditions set forth in the
Warrants dated September 20, 2002; and

B.       To induce the Initial Investors to execute and deliver the Securities
Purchase Agreement, the Company has agreed to provide certain registration
rights under the Securities Act of 1933, as amended, and the rules and
regulations thereunder, or any similar successor statute (collectively, the
"1933 Act"), and applicable state securities laws;

         NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and each of
the Initial Investors hereby agree as follows:

1.       DEFINITIONS.

     a.   As used in this Agreement, the following terms shall have the following
meanings:

        (i)   "Investors" means the Initial Investors and any transferee or
assignee who agrees to become bound by the provisions of this Agreement in
accordance with Section 9 hereof.

       (ii)   "register," "registered," and "registration" refer to a
registration effected by preparing and filing a Registration Statement or
Statements in compliance with the 1933 Act and pursuant to Rule 415 under the
1933 Act or any successor rule providing for offering securities on a continuous
basis ("Rule 415"), and the declaration or ordering of effectiveness of such
Registration Statement by the United States Securities and Exchange Commission
(the "SEC").

      (iii)    "Registrable Securities" means the Conversion Shares issued or
issuable upon conversion or otherwise pursuant to the Debentures and Additional
Debentures (as defined in the Securities Purchase Agreement) including, without
limitation, Damages Shares (as defined in the Debentures) issued or issuable
pursuant to the Debentures, shares of Common Stock issued or issuable in payment
of the Standard Liquidated Damages Amount (as defined in the Securities Purchase
Agreement), shares issued or issuable in respect of interest or in redemption of
the Debentures in accordance with the terms thereof) and Warrant Shares
issuable, upon exercise or otherwise pursuant to the Warrants and Additional
Warrants (as defined in the Securities Purchase Agreement), and any shares of
capital stock issued or issuable as a dividend on or in exchange for or
otherwise with respect to any of the foregoing.

        (iv)   "Registration Statement" means a registration statement of the
Company under the 1933 Act.

     b.   Capitalized terms used herein and not otherwise defined herein shall
have the respective meanings set forth in the Securities Purchase Agreement or
the Convertible Debenture.

2.       REGISTRATION.

    a.    Mandatory Registration.  The Company shall prepare, and, on or prior
to thirty (30) days from the date of Closing (as defined in the Securities
Purchase Agreement) (the "Filing Date"), file with the SEC a Registration
Statement on Form S-3 (or, if Form S-3 is not then available, on such form of
Registration Statement as is then available to effect a registration of the
Registrable Securities, subject to the consent of the Initial Investors, which
consent will not be unreasonably withheld) covering the resale of the
Registrable Securities underlying the Debentures and Warrants issued or issuable
pursuant to the Securities Purchase Agreement, which Registration Statement, to
the extent allowable under the 1933 Act and the rules and regulations
promulgated thereunder (including Rule 416), shall state that such Registration
Statement also covers such indeterminate number of additional shares of Common
Stock as may become issuable upon conversion of or otherwise pursuant to the
Debentures and exercise of the Warrants to prevent dilution resulting from stock
splits, stock dividends or similar transactions. The number of shares of Common
Stock initially included in such Registration Statement shall be no less than an
amount equal to two (2) times the sum of the number of Conversion Shares that
are then issuable upon conversion of the Debentures and Additional Debentures
(based on the Variable Conversion Price as would then be in effect and assuming
the Variable Conversion Price is the Conversion Price at such time), and the
number of Warrant Shares that are then issuable upon exercise of the Warrants,
without regard to any limitation on the Investor's ability to convert the
Debentures or exercise the Warrants. The Company acknowledges that the number of
shares initially included in the Registration Statement represents a good faith
estimate of the maximum number of shares issuable upon conversion of the
Debentures and upon exercise of the Warrants.

     b.   Underwritten Offering.  If any offering pursuant to a Registration
Statement pursuant to Section 2(a) hereof involves an underwritten offering, the
Investors who hold a majority in interest of the Registrable Securities subject
to such underwritten offering, with the consent of a majority-in-interest of the
Initial Investors, shall have the right to select one legal counsel and an
investment banker or bankers and manager or managers to administer the offering,
which investment banker or bankers or manager or managers shall be reasonably
satisfactory to the Company.

     c.   Payments by the Company.  The Company shall use its best efforts to
obtain effectiveness of the Registration Statement as soon as practicable.  If
(i) the Registration Statement(s) covering the Registrable Securities required
to be filed by the Company pursuant to Section 2(a) hereof is not filed by the
Filing Date or declared effective by the SEC on or prior to one hundred twenty
(120) days from the date of Closing, or (ii) after the Registration Statement
has been declared effective by the SEC, sales of all of the Registrable
Securities cannot be made pursuant to the Registration Statement, or (iii) the
Common Stock is not listed or included for quotation on the Nasdaq National
Market ("Nasdaq"), the Nasdaq SmallCap Market ("Nasdaq SmallCap"), the New York
Stock Exchange (the "NYSE") or the American Stock Exchange (the "AMEX") after
being so listed or included for quotation, or (iv) the Common Stock ceases to be
traded on the Over-the-Counter Bulletin Board (the "OTCBB") or any equivalent
replacement exchange prior to being listed or included for quotation on one of
the aforementioned markets, then the Company will make payments to the Investors
in such amounts and at such times as shall be determined pursuant to this
Section 2(c) as partial relief for the damages to the Investors by reason of any
such delay in or reduction of their ability to sell the Registrable Securities
(which remedy shall not be exclusive of any other remedies available at law or
in equity). The Company shall pay to each holder of the Debentures or
Registrable Securities an amount equal to the then outstanding principal amount
of the Debentures (and, in the case of holders of Registrable Securities, the
principal amount of Debentures from which such Registrable Securities were
converted) ("Outstanding Principal Amount"), multiplied by the Applicable
Percentage (as defined below) times the sum of: (i) the number of months
(prorated for partial months) after the Filing Date or the end of the
aforementioned one hundred twenty (120) day period and prior to the date the
Registration Statement is declared effective by the SEC, provided, however, that
there shall be excluded from such period any delays which are solely
attributable to changes required by the Investors in the Registration Statement
with respect to information relating to the Investors, including, without
limitation, changes to the plan of distribution, or to the failure of the
Investors to conduct their review of the Registration Statement pursuant to
Section 3(h) below in a reasonably prompt manner; (ii) the number of months
(prorated for partial months) that sales of all of the Registrable Securities
cannot be made pursuant to the Registration Statement after the Registration
Statement has been declared effective (including, without limitation, when sales
cannot be made by reason of the Company's failure to properly supplement or
amend the prospectus included therein in accordance with the terms of this
Agreement, but excluding any days during an Allowed Delay (as defined in Section
3(f)); and (iii) the number of months (prorated for partial months) that the
Common Stock is not listed or included for quotation on the OTCBB, Nasdaq,
Nasdaq SmallCap, NYSE or AMEX or that trading thereon is halted after the
Registration Statement has been declared effective. The term "Applicable
Percentage" means two hundredths (.02). (For example, if the Registration
Statement becomes effective one (1) month after the end of such one hundred
twenty (120) day period, the Company would pay $5,000 for each $250,000 of
Outstanding Principal Amount. If thereafter, sales could not be made pursuant to
the Registration Statement for an additional period of one (1) month, the
Company would pay an additional $5,000 for each $250,000 of Outstanding
Principal Amount.) Such amounts shall be paid in cash or, at each Investor's
option, in shares of Common Stock priced at the Conversion Price (as defined in
the Debentures) on such payment date.

     d.   Piggy-Back Registrations.  Subject to the last sentence of this
Section 2(d), if at any time prior to the expiration of the Registration Period
(as hereinafter defined) the Company shall determine to file with the SEC a
Registration Statement relating to an offering for its own account or the
account of others under the 1933 Act of any of its equity securities (other than
on Form S-4 or Form S-8 or their then equivalents relating to equity securities
to be issued solely in connection with any acquisition of any entity or business
or equity securities issuable in connection with stock option or other employee
benefit plans), the Company shall send to each Investor who is entitled to
registration rights under this Section 2(d) written notice of such determination
and, if within fifteen (15) days after the effective date of such notice, such
Investor shall so request in writing, the Company shall include in such
Registration Statement all or any part of the Registrable Securities such
Investor requests to be registered, except that if, in connection with any
underwritten public offering for the account of the Company the managing
underwriter(s) thereof shall impose a limitation on the number of shares of
Common Stock which may be included in the Registration Statement because, in
such underwriter(s)' judgment, marketing or other factors dictate such
limitation is necessary to facilitate public distribution, then the Company
shall be obligated to include in such Registration Statement only such limited
portion of the Registrable Securities with respect to which such Investor has
requested inclusion hereunder as the underwriter shall permit. Any exclusion of
Registrable Securities shall be made pro rata among the Investors seeking to
include Registrable Securities in proportion to the number of Registrable
Securities sought to be included by such Investors; provided, however, that the
Company shall not exclude any Registrable Securities unless the Company has
first excluded all outstanding securities, the holders of which are not entitled
to inclusion of such securities in such Registration Statement or are not
entitled to pro rata inclusion with the Registrable Securities; and provided,
further, however, that, after giving effect to the immediately preceding
proviso, any exclusion of Registrable Securities shall be made pro rata with
holders of other securities having the right to include such securities in the
Registration Statement other than holders of securities entitled to inclusion of
their securities in such Registration Statement by reason of demand registration
rights. No right to registration of Registrable Securities under this Section
2(d) shall be construed to limit any registration required under Section 2(a)
hereof. If an offering in connection with which an Investor is entitled to
registration under this Section 2(d) is an underwritten offering, then each
Investor whose Registrable Securities are included in such Registration
Statement shall, unless otherwise agreed by the Company, offer and sell such
Registrable Securities in an underwritten offering using the same underwriter or
underwriters and, subject to the provisions of this Agreement, on the same terms
and conditions as other shares of Common Stock included in such underwritten
offering. Notwithstanding anything to the contrary set forth herein, the
registration rights of the Investors pursuant to this Section 2(d) shall only be
available in the event the Company fails to timely file, obtain effectiveness or
maintain effectiveness of any Registration Statement to be filed pursuant to
Section 2(a) in accordance with the terms of this Agreement.

     e.   Eligibility for Form S-3, SB-2 or S-1: Conversion to Form S-3.  The
Company represents and warrants that it meets the requirements for the use of
Form S-3, SB-2 or S-1 for registration of the sale by the Initial Investors and
any other Investors of the Registrable Securities. The Company agrees to file
all reports required to be filed by the Company with the SEC in a timely manner
so as to remain eligible or become eligible, as the case may be, and thereafter
to maintain its eligibility, for the use of Form S-3. If the Company is not
currently eligible to use Form S-3, not later than five (5) business days after
the Company first meets the registration eligibility and transaction
requirements for the use of Form S-3 (or any successor form) for registration of
the offer and sale by the Initial Investors and any other Investors of
Registrable Securities, the Company shall file a Registration Statement on Form
S-3 (or such successor form) with respect to the Registrable Securities covered
by the Registration Statement on Form SB-2 or Form S-1, whichever is applicable,
filed pursuant to Section 2(a) (and include in such Registration Statement on
Form S-3 the information required by Rule 429 under the 1933 Act) or convert the
Registration Statement on Form SB-2 or Form S-1, whichever is applicable, filed
pursuant to Section 2(a) to a Form S-3 pursuant to Rule 429 under the 1933 Act
and cause such Registration Statement (or such amendment) to be declared
effective no later than forty-five (45) days after filing. In the event of a
breach by the Company of the provisions of this Section 2(e), the Company will
be required to make payments pursuant to Section 2(c) hereof.

3.  OBLIGATIONS OF THE COMPANY.

         In connection with the registration of the Registrable Securities, the
Company shall have the following obligations:

        a.   The Company shall prepare promptly, and file with the SEC not later
than the Filing Date, a Registration Statement with respect to the number of
Registrable Securities provided in Section 2(a), and thereafter use its best
efforts to cause such Registration Statement relating to Registrable Securities
to become effective as soon as possible after such filing but in no event later
than one hundred twenty (120) days from the date of Closing), and keep the
Registration Statement effective pursuant to Rule 415 at all times until such
date as is the earlier of (i) the date on which all of the Registrable
Securities have been sold and (ii) the date on which the Registrable Securities
(in the opinion of counsel to the Initial Investors) may be immediately sold to
the public without registration or restriction (including without limitation as
to volume by each holder thereof) under the 1933 Act (the "Registration
Period"), which Registration Statement (including any amendments or supplements
thereto and prospectuses contained therein) shall not contain any untrue
statement of a material fact or omit to state a material fact required to be
stated therein, or necessary to make the statements therein not misleading.

        b.   The Company shall prepare and file with the SEC such amendments
(including post-effective amendments) and supplements to the Registration
Statements and the prospectus used in connection with the Registration
Statements as may be necessary to keep the Registration Statements effective at
all times during the Registration Period, and, during such period, comply with
the provisions of the 1933 Act with respect to the disposition of all
Registrable Securities of the Company covered by the Registration Statements
until such time as all of such Registrable Securities have been disposed of in
accordance with the intended methods of disposition by the seller or sellers
thereof as set forth in the Registration Statements. In the event the number of
shares available under a Registration Statement filed pursuant to this Agreement
is insufficient to cover all of the Registrable Securities issued or issuable
upon conversion of the Debentures and exercise of the Warrants, the Company
shall amend the Registration Statement, or file a new Registration Statement (on
the short form available therefor, if applicable), or both, so as to cover all
of the Registrable Securities, in each case, as soon as practicable, but in any
event within fifteen (15) days after the necessity therefor arises (based on the
market price of the Common Stock and other relevant factors on which the Company
reasonably elects to rely). The Company shall use its best efforts to cause such
amendment and/or new Registration Statement to become effective as soon as
practicable following the filing thereof, but in any event within thirty (30)
days after the date on which the Company reasonably first determines (or
reasonably should have determined) the need therefor. The provisions of Section
2(c) above shall be applicable with respect to such obligation, with the one
hundred twenty (120) days running from the day the Company reasonably first
determines (or reasonably should have determined) the need therefor.

     c.   The Company shall furnish to each Investor whose Registrable
Securities are included in a Registration Statement and its legal counsel (i)
promptly (but in no event more than two (2) business days) after the same is
prepared and publicly distributed, filed with the SEC, or received by the
Company, one copy of each Registration Statement and any amendment thereto, each
preliminary prospectus and prospectus and each amendment or supplement thereto,
and, in the case of the Registration Statement referred to in Section 2(a), each
letter written by or on behalf of the Company to the SEC or the staff of the
SEC, and each item of correspondence from the SEC or the staff of the SEC, in
each case relating to such Registration Statement (other than any portion of any
thereof which contains information for which the Company has sought confidential
treatment), and (ii) promptly (but in no event more than two (2) business days)
after the Registration Statement is declared effective by the SEC, such number
of copies of a prospectus, including a preliminary prospectus, and all
amendments and supplements thereto and such other documents as such Investor may
reasonably request in order to facilitate the disposition of the Registrable
Securities owned by such Investor. The Company will immediately notify each
Investor by facsimile of the effectiveness of each Registration Statement or any
post-effective amendment. The Company will promptly (but in no event more than
five (5) business days) respond to any and all comments received from the SEC
(which comments shall promptly be made available to the Investors upon request),
with a view towards causing each Registration Statement or any amendment thereto
to be declared effective by the SEC as soon as practicable, shall promptly file
an acceleration request as soon as practicable (but in no event more than two
(2) business days) following the resolution or clearance of all SEC comments or,
if applicable, following notification by the SEC that any such Registration
Statement or any amendment thereto will not be subject to review and shall
promptly file with the SEC a final prospectus as soon as practicable (but in no
event more than two (2) business days) following receipt by the Company from the
SEC of an order declaring the Registration Statement effective. In the event of
a breach by the Company of the provisions of this Section 3(c), the Company will
be required to make payments pursuant to Section 2(c) hereof.

     d.   The Company shall use reasonable efforts to (i) register and qualify
the Registrable Securities covered by the Registration Statements under such
other securities or "blue sky" laws of such jurisdictions in the United States
as the Investors who hold a majority in interest of the Registrable Securities
being offered reasonably request, (ii) prepare and file in those jurisdictions
such amendments (including post-effective amendments) and supplements to such
registrations and qualifications as may be necessary to maintain the
effectiveness thereof during the Registration Period, (iii) take such other
actions as may be necessary to maintain such registrations and qualifications in
effect at all times during the Registration Period, and (iv) take all other
actions reasonably necessary or advisable to qualify the Registrable Securities
for sale in such jurisdictions; provided, however, that the Company shall not be
required in connection therewith or as a condition thereto to (a) qualify to do
business in any jurisdiction where it would not otherwise be required to qualify
but for this Section 3(d), (b) subject itself to general taxation in any such
jurisdiction, (c) file a general consent to service of process in any such
jurisdiction, (d) provide any undertakings that cause the Company undue expense
or burden, or (e) make any change in its charter or bylaws, which in each case
the Board of Directors of the Company determines to be contrary to the best
interests of the Company and its shareholders.

     e.   In the event Investors who hold a majority-in-interest of the
Registrable Securities being offered in the offering (with the approval of a
majority-in-interest of the Initial Investors) select underwriters for the
offering, the Company shall enter into and perform its obligations under an
underwriting agreement, in usual and customary form, including, without
limitation, customary indemnification and contribution obligations, with the
underwriters of such offering.

     f.   As promptly as practicable after becoming aware of such event, the
Company shall notify each Investor of the happening of any event, of which the
Company has knowledge, as a result of which the prospectus included in any
Registration Statement, as then in effect, includes an untrue statement of a
material fact or omission to state a material fact required to be stated therein
or necessary to make the statements therein not misleading, and use its best
efforts promptly to prepare a supplement or amendment to any Registration
Statement to correct such untrue statement or omission, and deliver such number
of copies of such supplement or amendment to each Investor as such Investor may
reasonably request; provided that, for not more than ten (10) consecutive
trading days (or a total of not more than twenty (20) trading days in any twelve
(12) month period), the Company may delay the disclosure of material non-public
information concerning the Company (as well as prospectus or Registration
Statement updating) the disclosure of which at the time is not, in the good
faith opinion of the Company, in the best interests of the Company (an "Allowed
Delay"); provided, further, that the Company shall promptly (i) notify the
Investors in writing of the existence of (but in no event, without the prior
written consent of an Investor, shall the Company disclose to such investor any
of the facts or circumstances regarding) material non-public information giving
rise to an Allowed Delay and (ii) advise the Investors in writing to cease all
sales under such Registration Statement until the end of the Allowed Delay. Upon
expiration of the Allowed Delay, the Company shall again be bound by the first
sentence of this Section 3(f) with respect to the information giving rise
thereto.

     g.   The Company shall use its best efforts to prevent the issuance of any
stop order or other suspension of effectiveness of any Registration Statement,
and, if such an order is issued, to obtain the withdrawal of such order at the
earliest possible moment and to notify each Investor who holds Registrable
Securities being sold (or, in the event of an underwritten offering, the
managing underwriters) of the issuance of such order and the resolution thereof.

     h.   The Company shall permit a single firm of counsel designated by the
Initial Investors to review such Registration Statement and all amendments and
supplements thereto (as well as all requests for acceleration or effectiveness
thereof) a reasonable period of time prior to their filing with the SEC, and not
file any document in a form to which such counsel reasonably objects and will
not request acceleration of such Registration Statement without prior notice to
such counsel. The sections of such Registration Statement covering information
with respect to the Investors, the Investor's beneficial ownership of securities
of the Company or the Investors intended method of disposition of Registrable
Securities shall conform to the information provided to the Company by each of
the Investors.

     i.   The Company shall make generally available to its security holders as
soon as practicable, but not later than ninety (90) days after the close of the
period covered thereby, an earnings statement (in form complying with the
provisions of Rule 158 under the 1933 Act) covering a twelve-month period
beginning not later than the first day of the Company's fiscal quarter next
following the effective date of the Registration Statement.

     j.   At the request of any Investor, the Company shall furnish, on the date
that Registrable Securities are delivered to an underwriter, if any, for sale in
connection with any Registration Statement or, if such securities are not being
sold by an underwriter, on the date of effectiveness thereof (i) an opinion,
dated as of such date, from counsel representing the Company for purposes of
such Registration Statement, in form, scope and substance as is customarily
given in an underwritten public offering, addressed to the underwriters, if any,
and the Investors and (ii) a letter, dated such date, from the Company's
independent certified public accountants in form and substance as is customarily
given by independent certified public accountants to underwriters in an
underwritten public offering, addressed to the underwriters, if any, and the
Investors.

     k.   The Company shall make available for inspection by (i) any Investor,
(ii) any underwriter participating in any disposition pursuant to a Registration
Statement, (iii) one firm of attorneys and one firm of accountants or other
agents retained by the Initial Investors, (iv) one firm of attorneys and one
firm of accountants or other agents retained by all other Investors, and (v) one
firm of attorneys retained by all such underwriters (collectively, the
"Inspectors") all pertinent financial and other records, and pertinent corporate
documents and properties of the Company, including without limitation, records
of conversions by other holders of convertible securities issued by the Company
and the issuance of stock to such holders pursuant to the conversions
(collectively, the "Records"), as shall be reasonably deemed necessary by each
Inspector to enable each Inspector to exercise its due diligence responsibility,
and cause the Company's officers, directors and employees to supply all
information which any Inspector may reasonably request for purposes of such due
diligence; provided, however, that each Inspector shall hold in confidence and
shall not make any disclosure (except to an Investor) of any Record or other
information which the Company determines in good faith to be confidential, and
of which determination the Inspectors are so notified, unless (a) the disclosure
of such Records is necessary to avoid or correct a misstatement or omission in
any Registration Statement, (b) the release of such Records is ordered pursuant
to a subpoena or other order from a court or government body of competent
jurisdiction, or (c) the information in such Records has been made generally
available to the public other than by disclosure in violation of this or any
other agreement. The Company shall not be required to disclose any confidential
information in such Records to any Inspector until and unless such Inspector
shall have entered into confidentiality agreements (in form and substance
satisfactory to the Company) with the Company with respect thereto,
substantially in the form of this Section 3(k). Each Investor agrees that it
shall, upon learning that disclosure of such Records is sought in or by a court
or governmental body of competent jurisdiction or through other means, give
prompt notice to the Company and allow the Company, at its expense, to undertake
appropriate action to prevent disclosure of, or to obtain a protective order
for, the Records deemed confidential. Nothing herein (or in any other
confidentiality agreement between the Company and any Investor) shall be deemed
to limit the Investor's ability to sell Registrable Securities in a manner which
is otherwise consistent with applicable laws and regulations.

     l.   The Company shall hold in confidence and not make any disclosure of
information concerning an Investor provided to the Company unless (i) disclosure
of such information is necessary to comply with federal or state securities
laws, (ii) the disclosure of such information is necessary to avoid or correct a
misstatement or omission in any Registration Statement, (iii) the release of
such information is ordered pursuant to a subpoena or other order from a court
or governmental body of competent jurisdiction, or (iv) such information has
been made generally available to the public other than by disclosure in
violation of this or any other agreement. The Company agrees that it shall, upon
learning that disclosure of such information concerning an Investor is sought in
or by a court or governmental body of competent jurisdiction or through other
means, give prompt notice to such Investor prior to making such disclosure, and
allow the Investor, at its expense, to undertake appropriate action to prevent
disclosure of, or to obtain a protective order for, such information.

     m.   The Company shall (i) cause all the Registrable Securities covered by
the Registration Statement to be listed on each national securities exchange on
which securities of the same class or series issued by the Company are then
listed, if any, if the listing of such Registrable Securities is then permitted
under the rules of such exchange, or (ii) to the extent the securities of the
same class or series are not then listed on a national securities exchange,
secure the designation and quotation, of all the Registrable Securities covered
by the Registration Statement on Nasdaq or, if not eligible for Nasdaq, on
Nasdaq SmallCap or, if not eligible for Nasdaq or Nasdaq SmallCap, on the OTCBB
and, without limiting the generality of the foregoing, to arrange for at least
two market makers to register with the National Association of Securities
Dealers, Inc. ("NASD") as such with respect to such Registrable Securities.

     n.   The Company shall provide a transfer agent and registrar, which may
be a single entity, for the Registrable Securities not later than the effective
date of the Registration Statement.

     o.   The Company shall cooperate with the Investors who hold Registrable
Securities being offered and the managing underwriter or underwriters, if any,
to facilitate the timely preparation and delivery of certificates (not bearing
any restrictive legends) representing Registrable Securities to be offered
pursuant to a Registration Statement and enable such certificates to be in such
denominations or amounts, as the case may be, as the managing underwriter or
underwriters, if any, or the Investors may reasonably request and registered in
such names as the managing underwriter or underwriters, if any, or the Investors
may request, and, within three (3) business days after a Registration Statement
which includes Registrable Securities is ordered effective by the SEC, the
Company shall deliver, and shall cause legal counsel selected by the Company to
deliver, to the transfer agent for the Registrable Securities (with copies to
the Investors whose Registrable Securities are included in such Registration
Statement) an instruction in the form attached hereto as Exhibit 1 and an
opinion of such counsel in the form attached hereto as Exhibit 2.

     p.   At the request of the holders of a majority-in-interest of the
Registrable Securities, the Company shall prepare and file with the SEC such
amendments (including post-effective amendments) and supplements to a
Registration Statement and any prospectus used in connection with the
Registration Statement as may be necessary in order to change the plan of
distribution set forth in such Registration Statement.

     q.   Except as provided in Schedule 3(q), from and after the date of this
Agreement, the Company shall not, and shall not agree to, allow the holders of
any securities of the Company to include any of their securities in any
Registration Statement under Section 2(a) hereof or any amendment or supplement
thereto under Section 3(b) hereof without the consent of the holders of a
majority-in-interest of the Registrable Securities.

     r.   The Company shall take all other reasonable actions necessary to
expedite and facilitate disposition by the Investors of Registrable Securities
pursuant to a Registration Statement.

4.       OBLIGATIONS OF THE INVESTORS.

         In connection with the registration of the Registrable Securities, the
Investors shall have the following obligations:

     a.   It shall be a condition precedent to the obligations of the Company to
complete the registration pursuant to this Agreement with respect to the
Registrable Securities of a particular Investor that such Investor shall furnish
to the Company such information regarding itself, the Registrable Securities
held by it and the intended method of disposition of the Registrable Securities
held by it as shall be reasonably required to effect the registration of such
Registrable Securities and shall execute such documents in connection with such
registration as the Company may reasonably request. At least three (3) business
days prior to the first anticipated filing date of the Registration Statement,
the Company shall notify each Investor of the information the Company requires
from each such Investor.

     b.   Each Investor, by such Investor's acceptance of the Registrable
Securities, agrees to cooperate with the Company as reasonably requested by the
Company in connection with the preparation and filing of the Registration
Statements hereunder, unless such Investor has notified the Company in writing
of such Investor's election to exclude all of such Investor's Registrable
Securities from the Registration Statements.

     c.   In the event Investors holding a majority-in-interest of the
Registrable Securities being registered (with the approval of the Initial
Investors) determine to engage the services of an underwriter, each Investor
agrees to enter into and perform such Investor's obligations under an
underwriting agreement, in usual and customary form, including, without
limitation, customary indemnification and contribution obligations, with the
managing underwriter of such offering and take such other actions as are
reasonably required in order to expedite or facilitate the disposition of the
Registrable Securities, unless such Investor has notified the Company in writing
of such Investor's election to exclude all of such Investor's Registrable
Securities from such Registration Statement.

     d.   Each Investor agrees that, upon receipt of any notice from the
Company of the happening of any event of the kind described in Section 3(f) or
3(g), such Investor will immediately discontinue disposition of Registrable
Securities pursuant to the Registration Statement covering such Registrable
Securities until such Investor's receipt of the copies of the supplemented or
amended prospectus contemplated by Section 3(f) or 3(g) and, if so directed by
the Company, such Investor shall deliver to the Company (at the expense of the
Company) or destroy (and deliver to the Company a certificate of destruction)
all copies in such Investor's possession, of the prospectus covering such
Registrable Securities current at the time of receipt of such notice.

     e.   No Investor may participate in any underwritten registration hereunder
unless such Investor (i) agrees to sell such Investor's Registrable Securities
on the basis provided in any underwriting arrangements in usual and customary
form entered into by the Company, (ii) completes and executes all
questionnaires, powers of attorney, indemnities, underwriting agreements and
other documents reasonably required under the terms of such underwriting
arrangements, and (iii) agrees to pay its pro rata share of all underwriting
discounts and commissions and any expenses in excess of those payable by the
Company pursuant to Section 5 below.

5.       EXPENSES OF REGISTRATION.

         All reasonable expenses, other than underwriting discounts and
commissions, incurred in connection with registrations, filings or
qualifications pursuant to Sections 2 and 3, including, without limitation, all
registration, listing and qualification fees, printers and accounting fees, the
fees and disbursements of counsel for the Company, and the reasonable fees and
disbursements of one counsel selected by the Initial Investors pursuant to
Sections 2(b) and 3(h) hereof shall be borne by the Company.

6.       INDEMNIFICATION.

         In the event any Registrable Securities are included in a Registration
Statement under this Agreement:

     a.   To the extent permitted by law, the Company will indemnify, hold
harmless and defend (i) each Investor who holds such Registrable Securities,
(ii) the directors, officers, partners, employees, agents and each person who
controls any Investor within the meaning of the 1933 Act or the Securities
Exchange Act of 1934, as amended (the "1934 Act"), if any, (iii) any underwriter
(as defined in the 1933 Act) for the Investors, and (iv) the directors,
officers, partners, employees and each person who controls any such underwriter
within the meaning of the 1933 Act or the 1934 Act, if any (each, an
"Indemnified Person"), against any joint or several losses, claims, damages,
liabilities or expenses (collectively, together with actions, proceedings or
inquiries by any regulatory or self-regulatory organization, whether commenced
or threatened, in respect thereof, "Claims") to which any of them may become
subject insofar as such Claims arise out of or are based upon: (i) any untrue
statement or alleged untrue statement of a material fact in a Registration
Statement or the omission or alleged omission to state therein a material fact
required to be stated or necessary to make the statements therein not
misleading; (ii) any untrue statement or alleged untrue statement of a material
fact contained in any preliminary prospectus if used prior to the effective date
of such Registration Statement, or contained in the final prospectus (as amended
or supplemented, if the Company files any amendment thereof or supplement
thereto with the SEC) or the omission or alleged omission to state therein any
material fact necessary to make the statements made therein, in light of the
circumstances under which the statements therein were made, not misleading; or
(iii) any violation or alleged violation by the Company of the 1933 Act, the
1934 Act, any other law, including, without limitation, any state securities
law, or any rule or regulation thereunder relating to the offer or sale of the
Registrable Securities (the matters in the foregoing clauses (i) through (iii)
being, collectively, "Violations"). Subject to the restrictions set forth in
Section 6(c) with respect to the number of legal counsel, the Company shall
reimburse the Indemnified Person, promptly as such expenses are incurred and are
due and payable, for any reasonable legal fees or other reasonable expenses
incurred by them in connection with investigating or defending any such Claim.
Notwithstanding anything to the contrary contained herein, the indemnification
agreement contained in this Section 6(a): (i) shall not apply to a Claim arising
out of or based upon a Violation which occurs in reliance upon and in conformity
with information furnished in writing to the Company by any Indemnified Person
or underwriter for such Indemnified Person expressly for use in connection with
the preparation of such Registration  Statement or any such amendment thereof or
supplement  thereto, if such prospectus was timely made available by the Company
pursuant  to  Section  3(c)  hereof;  (ii)  shall not apply to  amounts  paid in
settlement of any Claim if such settlement is effected without the prior written
consent of the Company,  which consent shall not be unreasonably  withheld;  and
(iii) with respect to any preliminary prospectus, shall not inure to the benefit
of any Indemnified  Person if the untrue  statement or omission of material fact
contained in the  preliminary  prospectus was corrected on a timely basis in the
prospectus,  as then amended or  supplemented,  such  corrected  prospectus  was
timely made  available by the Company  pursuant to Section 3(c) hereof,  and the
Indemnified  Person was  promptly  advised in writing  not to use the  incorrect
prospectus  prior to the use giving  rise to a  Violation  and such  Indemnified
Person,  notwithstanding  such advice,  used it. Such indemnity  shall remain in
full force and effect  regardless of any  investigation  made by or on behalf of
the  Indemnified  Person  and shall  survive  the  transfer  of the  Registrable
Securities by the Investors pursuant to Section 9.

     b.   In connection with any Registration Statement in which an Investor is
participating, each such Investor agrees severally and not jointly to indemnify,
hold harmless and defend, to the same extent and in the same manner set forth in
Section 6(a), the Company, each of its directors, each of its officers who signs
the Registration Statement, each person, if any, who controls the Company within
the meaning of the 1933 Act or the 1934 Act, any underwriter and any other
shareholder selling securities pursuant to the Registration Statement or any of
its directors or officers or any person who controls such shareholder or
underwriter within the meaning of the 1933 Act or the 1934 Act (collectively and
together with an Indemnified Person, an "Indemnified Party"), against any Claim
to which any of them may become subject, under the 1933 Act, the 1934 Act or
otherwise, insofar as such Claim arises out of or is based upon any Violation by
such Investor, in each case to the extent (and only to the extent) that such
Violation occurs in reliance upon and in conformity with written information
furnished to the Company by such Investor expressly for use in connection with
such Registration Statement; and subject to Section 6(c) such Investor will
reimburse any legal or other expenses (promptly as such expenses are incurred
and are due and payable) reasonably incurred by them in connection with
investigating or defending any such Claim; provided, however, that the indemnity
agreement contained in this Section 6(b) shall not apply to amounts paid in
settlement of any Claim if such settlement is effected without the prior written
consent of such Investor, which consent shall not be unreasonably withheld;
provided, further, however, that the Investor shall be liable under this
Agreement (including this Section 6(b) and Section 7) for only that amount as
does not exceed the net proceeds to such Investor as a result of the sale of
Registrable Securities pursuant to such Registration Statement. Such indemnity
shall remain in full force and effect regardless of any investigation made by or
on behalf of such Indemnified Party and shall survive the transfer of the
Registrable Securities by the Investors pursuant to Section 9. Notwithstanding
anything to the contrary contained herein, the indemnification agreement
contained in this Section 6(b) with respect to any preliminary prospectus shall
not inure to the benefit of any Indemnified Party if the untrue statement or
omission of material fact contained in the preliminary prospectus was corrected
on a timely basis in the prospectus, as then amended or supplemented.

     c.   Promptly after receipt by an Indemnified Person or Indemnified Party
under this Section 6 of notice of the commencement of any action (including any
governmental action), such Indemnified Person or Indemnified Party shall, if a
Claim in respect thereof is to be made against any indemnifying party under this
Section 6, deliver to the indemnifying party a written notice of the
commencement thereof, and the indemnifying party shall have the right to
participate in, and, to the extent the indemnifying party so desires, jointly
with any other indemnifying party similarly noticed, to assume control of the
defense thereof with counsel mutually satisfactory to the indemnifying party and
the Indemnified Person or the Indemnified Party, as the case may be; provided,
however, that an Indemnified Person or Indemnified Party shall have the right to
retain its own counsel with the fees and expenses to be paid by the indemnifying
party, if, in the reasonable opinion of counsel retained by the indemnifying
party, the representation by such counsel of the Indemnified Person or
Indemnified Party and the indemnifying party would be inappropriate due to
actual or potential differing interests between such Indemnified Person or
Indemnified Party and any other party represented by such counsel in such
proceeding. The indemnifying party shall pay for only one separate legal counsel
for the Indemnified Persons or the Indemnified Parties, as applicable, and such
legal counsel shall be selected by Investors holding a majority-in-interest of
the Registrable Securities included in the Registration Statement to which the
Claim relates (with the approval of a majority-in-interest of the Initial
Investors), if the Investors are entitled to indemnification hereunder, or the
Company, if the Company is entitled to indemnification hereunder, as applicable.
The failure to deliver written notice to the indemnifying party within a
reasonable time of the commencement of any such action shall not relieve such
indemnifying party of any liability to the Indemnified Person or Indemnified
Party under this Section 6, except to the extent that the indemnifying party is
actually prejudiced in its ability to defend such action. The indemnification
required by this Section 6 shall be made by periodic payments of the amount
thereof during the course of the investigation or defense, as such expense,
loss, damage or liability is incurred and is due and payable.

7.       CONTRIBUTION.

         To the extent any indemnification by an indemnifying party is
prohibited or limited by law, the indemnifying party agrees to make the maximum
contribution with respect to any amounts for which it would otherwise be liable
under Section 6 to the fullest extent permitted by law; provided, however, that
(i) no contribution shall be made under circumstances where the maker would not
have been liable for indemnification under the fault standards set forth in
Section 6, (ii) no seller of Registrable Securities guilty of fraudulent
misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be
entitled to contribution from any seller of Registrable Securities who was not
guilty of such fraudulent misrepresentation, and (iii) contribution (together
with any indemnification or other obligations under this Agreement) by any
seller of Registrable Securities shall be limited in amount to the net amount of
proceeds received by such seller from the sale of such Registrable Securities.

8.       REPORTS UNDER THE 1934 ACT.

         With a view to making  available to the Investors the benefits of Rule
144 promulgated  under the 1933 Act or any other similar rule or  regulation of
the SEC that may at any time permit the investors to sell securities of the
Company to the public without registration ("Rule 144"), the Company agrees to:

     a.   make and keep public information available, as those terms are
understood and defined in Rule 144;

     b.   file with the SEC in a timely manner all reports and other documents
required of the Company under the 1933 Act and the 1934 Act so long as the
Company remains subject to such requirements (it being understood that nothing
herein shall limit the Company's obligations under Section 4(c) of the
Securities Purchase Agreement) and the filing of such reports and other
documents is required for the applicable provisions of Rule 144; and

     c.   furnish to each Investor so long as such Investor owns Registrable
Securities, promptly upon request, (i) a written statement by the Company that
it has complied with the reporting requirements of Rule 144, the 1933 Act and
the 1934 Act, (ii) a copy of the most recent annual or quarterly report of the
Company and such other reports and documents so filed by the Company, and (iii)
such other information as may be reasonably requested to permit the Investors to
sell such securities pursuant to Rule 144 without registration.

9.       ASSIGNMENT OF REGISTRATION RIGHTS.

         The rights under this Agreement shall be  automatically assignable by
the Investors to any transferee of all or any portion of Registrable Securities
if: (i) the Investor agrees in writing with the transferee or assignee to assign
such rights, and a copy of such agreement is furnished to the Company within a
reasonable time after such assignment, (ii) the Company is, within a reasonable
time after such transfer or assignment, furnished with written notice of (a) the
name and address of such transferee or assignee, and (b) the securities with
respect to which such registration rights are being transferred or assigned,
(iii) following such transfer or assignment, the further disposition of such
securities by the transferee or assignee is restricted under the 1933 Act and
applicable state securities laws, (iv) at or before the time the Company
receives the written notice contemplated by clause (ii) of this sentence, the
transferee or assignee agrees in writing with the Company to be bound by all of
the provisions contained herein, (v) such transfer shall have been made in
accordance with the applicable requirements of the Securities Purchase
Agreement, and (vi) such transferee shall be an "accredited investor" as that
term defined in Rule 501 of Regulation D promulgated under the 1933 Act.

10.      AMENDMENT OF REGISTRATION RIGHTS.

         Provisions of this Agreement may be amended and the observance thereof
may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with written consent of the Company, each
of the Initial Investors (to the extent such Initial Investor still owns
Registrable Securities) and Investors who hold a majority interest of the
Registrable Securities. Any amendment or waiver effected in accordance with this
Section 10 shall be binding upon each Investor and the Company.

11.      MISCELLANEOUS.

     a.   A person or entity is deemed to be a holder of Registrable Securities
whenever such person or entity owns of record such Registrable Securities. If
the Company receives conflicting instructions, notices or elections from two or
more persons or entities with respect to the same Registrable Securities, the
Company shall act upon the basis of instructions, notice or election received
from the registered owner of such Registrable Securities.

     b.   Any notices required or permitted to be given under the terms hereof
shall be sent by certified or registered mail (return receipt requested) or
delivered personally or by courier (including a recognized overnight delivery
service) or by facsimile and shall be effective five days after being placed in
the mail, if mailed by regular United States mail, or upon receipt, if delivered
personally or by courier (including a recognized overnight delivery service) or
by facsimile, in each case addressed to a party. The addresses for such
communications shall be:

                           If to the Company:

                           SeaView Video Technology, Inc.
                           200 Madonna Boulevard
                           Tierra Verde, Florida  33715
                           Attention:  George S. Bernardich, III
                           Telephone:  (727) 866-7440
                           Facsimile:   (727) 866-7480
                           Email:  georgeb@seaview.com

                           With a copy to:

                           Sichenzia Ross Friedman Ference LLP
                           1065 Avenue of the Americas, 21st Floor
                           New York, New York 10018
                           Attention:  Gregory Sichenzia, Esq.
                           Telephone:  (212) 930-9700
                           Facsimile:  (212) 930-9725
                           Email:  GSichenzia@srfllp.net

If to an Investor: to the address set forth immediately below such Investor's
name on the signature pages to the Securities Purchase Agreement.

                           With a copy to:

                           Ballard Spahr Andrews & Ingersoll, LLP
                           1735 Market Street
                           51st Floor
                           Philadelphia, Pennsylvania  19103
                           Attention:  Gerald J. Guarcini, Esq.
                           Telephone:  (215) 865-8625
                           Facsimile:  (215) 864-8999
                           Email:  guarcini@ballardspahr.com

     c.   Failure of any party to exercise any right or remedy under this
Agreement or otherwise, or delay by a party in exercising such right or remedy,
shall not operate as a waiver thereof.

     d.   THIS AGREEMENT SHALL BE ENFORCED, GOVERNED BY AND CONSTRUED IN
ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK APPLICABLE TO AGREEMENTS MADE
AND TO BE PERFORMED ENTIRELY WITHIN SUCH STATE, WITHOUT REGARD TO THE PRINCIPLES
OF CONFLICT OF LAWS. THE PARTIES HERETO HEREBY SUBMIT TO THE EXCLUSIVE
JURISDICTION OF THE UNITED STATES FEDERAL COURTS LOCATED NEW YORK, NEW YORK WITH
RESPECT TO ANY DISPUTE ARISING UNDER THIS AGREEMENT, THE AGREEMENTS ENTERED INTO
IN CONNECTION HEREWITH OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY. BOTH
PARTIES IRREVOCABLY WAIVE THE DEFENSE OF AN INCONVENIENT FORUM TO THE
MAINTENANCE OF SUCH SUIT OR PROCEEDING. BOTH PARTIES FURTHER AGREE THAT SERVICE
OF PROCESS UPON A PARTY MAILED BY FIRST CLASS MAIL SHALL BE DEEMED IN EVERY
RESPECT EFFECTIVE SERVICE OF PROCESS UPON THE PARTY IN ANY SUCH SUIT OR
PROCEEDING. NOTHING HEREIN SHALL AFFECT EITHER PARTY'S RIGHT TO SERVE PROCESS IN
ANY OTHER MANNER PERMITTED BY LAW. BOTH PARTIES AGREE THAT A FINAL
NON-APPEALABLE JUDGMENT IN ANY SUCH SUIT OR PROCEEDING SHALL BE CONCLUSIVE AND
MAY BE ENFORCED IN OTHER JURISDICTIONS BY SUIT ON SUCH JUDGMENT OR IN ANY OTHER
LAWFUL MANNER. THE PARTY WHICH DOES NOT PREVAIL IN ANY DISPUTE ARISING UNDER
THIS AGREEMENT SHALL BE RESPONSIBLE FOR ALL FEES AND EXPENSES, INCLUDING
ATTORNEYS' FEES, INCURRED BY THE PREVAILING PARTY IN CONNECTION WITH SUCH
DISPUTE.

     e.   In the event that any provision of this Agreement is invalid or
unenforceable under any applicable statute or rule of law, then such provision
shall be deemed inoperative to the extent that it may conflict therewith and
shall be deemed modified to conform with such statute or rule of law. Any
provision hereof which may prove invalid or unenforceable under any law shall
not affect the validity or enforceability of any other provision hereof.

     f.   This Agreement, the Warrants and the Securities Purchase Agreement
(including all schedules and exhibits thereto) constitute the entire agreement
among the parties hereto with respect to the subject matter hereof and thereof.
There are no restrictions, promises, warranties or undertakings, other than
those set forth or referred to herein and therein. This Agreement and the
Securities Purchase Agreement supersede all prior agreements and understandings
among the parties hereto with respect to the subject matter hereof and thereof.

     g.   Subject to the requirements of Section 9 hereof, this Agreement shall
be binding upon and inure to the benefit of the parties and their successors and
assigns.

     h.   The headings in this Agreement are for convenience of reference only
and shall not form part of, or affect the interpretation of, this Agreement.

     i.   This Agreement may be executed in two or more counterparts, each of
which shall be deemed an original but all of which shall constitute one and the
same agreement and shall become effective when counterparts have been signed by
each party and delivered to the other party. This Agreement, once executed by a
party, may be delivered to the other party hereto by facsimile transmission of a
copy of this Agreement bearing the signature of the party so delivering this
Agreement.

     j.   Each party shall do and perform, or cause to be done and performed, all
such further acts and things, and shall execute and deliver all such other
agreements, certificates, instruments and documents, as the other party may
reasonably request in order to carry out the intent and accomplish the purposes
of this Agreement and the consummation of the transactions contemplated hereby.

     k.   Except as otherwise provided herein, all consents and other
determinations to be made by the Investors pursuant to this Agreement shall be
made by Investors holding a majority of the Registrable Securities, determined
as if the all of the Debentures then outstanding have been converted into for
Registrable Securities.

     l.    The Company acknowledges that a breach by it of its obligations
hereunder will cause irreparable harm to each Investor by vitiating the intent
and purpose of the transactions contemplated hereby. Accordingly, the Company
acknowledges that the remedy at law for breach of its obligations under this
Agreement will be inadequate and agrees, in the event of a breach or threatened
breach by the Company of any of the provisions under this Agreement, that each
Investor shall be entitled, in addition to all other available remedies in law
or in equity, and in addition to the penalties assessable herein, to an
injunction or injunctions restraining, preventing or curing any breach of this
Agreement and to enforce specifically the terms and provisions hereof, without
the necessity of showing economic loss and without any bond or other security
being required.

     m.   The language used in this Agreement will be deemed to be the language
chosen by the parties to express their mutual intent, and no rules of strict
construction will be applied against any party.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

         IN WITNESS WHEREOF, the Company and the undersigned Initial Investors
have caused this Agreement to be duly executed as of the date first above written.

SEAVIEW VIDEO TECHNOLOGY, INC.

______________________________________
George S. Bernardich, III
President and Chief Executive Officer

AJW PARTNERS, LLC
By:  SMS Group, LLC

______________________________________
Corey S. Ribotsky
Manager

AJW OFFSHORE, LTD.
By:  First Street Manager II, LLC

______________________________________
Corey S. Ribotsky
Manager

AJW QUALIFIED PARTNERS, LLC
By:  AJW Manager, LLC

____________________________________
Corey S. Ribotsky
ManagerEMPLOYMENT AGREEMENT
                              --------------------

     This EMPLOYMENT AGREEMENT  ("AGREEMENT"),  entered into between PrimeSource
Healthcare,  Inc.,  a  Massachusetts  corporation  ("COMPANY"),  and Bradford C.
Walker, an individual  ("EXECUTIVE"),  is effective upon the Initial Closing (as
defined in the Purchase  Agreement  dated as of August 6, 2002) (the  "Effective
Date").

     1.   EMPLOYMENT.
          ----------

          (a)  EXECUTIVE  RESPONSIBILITIES.   The  COMPANY  hereby  employs  the
EXECUTIVE,  and the  EXECUTIVE  hereby  agrees  to  accept  employment  from the
COMPANY, as President and Chief Executive Officer of the COMPANY.  The EXECUTIVE
shall report directly to the COMPANY'S Board of Directors.  The EXECUTIVE agrees
during the term of his employment under this Agreement to perform the duties and
responsibilities  customarily required of such position,  as reasonably directed
by the COMPANY'S Board of Directors, and in accordance with the COMPANY'S bylaws
and applicable state corporation law. The EXECUTIVE further agrees to devote his
full  business  time and  energies to the  business  and affairs of the COMPANY,
unless  otherwise  authorized  by the Board of  Directors  of the  COMPANY.  The
EXECUTIVE may, however, engage in civic and not-for-profit activities so long as
such  activities do not materially  interfere with the performance of his duties
to the COMPANY hereunder.

          (b)  DIRECTOR  RESPONSIBILITIES.  Subject to obtaining  any  necessary
stockholder  consents,  the EXECUTIVE  shall be elected a member of the Board of
Directors,  to serve in such  position  until the next  regular  meeting  of the
COMPANY'S stockholders. The EXECUTIVE'S continued service on the COMPANY'S Board
of  Directors  thereafter  shall  be  subject  to his  election  by  vote of the
stockholders,  but the COMPANY  will include the  EXECUTIVE  in its  recommended
slate  of  candidates  for  membership  on the  Board.  In the  event  that  the
EXECUTIVE'S  employment  with the COMPANY under this Agreement is terminated for
any reason, the EXECUTIVE shall promptly submit to the Chairman of the Board his
resignation as a Director.

     2.   TERM OF EMPLOYMENT. The employment under this Agreement shall commence
as of the  Effective  Date  and  shall  end at the end of the day on the  second
yearly  anniversary  of the  Effective  Date  (the  "EXPIRATION  DATE"),  unless
otherwise terminated earlier pursuant to paragraph 5 of this Agreement.

     3.   COMPENSATION.
          ------------

          (a)  BASE  SALARY.  As  compensation  for  services  provided  to  the
COMPANY,  the EXECUTIVE  shall  receive an initial  salary at the annual rate of
$250,000,  less such  payroll  and  withholding  taxes as  required by law to be
deducted and any such other amounts as the EXECUTIVE shall authorize in writing.
The salary shall be payable in semi-monthly  installments.  Such salary shall be
reviewed by the Board of Directors at least  annually at the end of each year of
employment hereunder. Such salary may be increased, but not decreased, from time
to time as decided in the discretion of the Board of Directors of the COMPANY.

<PAGE>
          (b)  BONUSES.  The  Compensation  Committee of the COMPANY'S  Board of
Directors shall institute an incentive bonus program in which the EXECUTIVE will
be eligible to  participate  during each  employment  year  (beginning  with the
fiscal  year that ends  immediately  following  the  Effective  Date)  while the
EXECUTIVE  is employed by the  COMPANY.  Such bonus  program  shall  provide the
EXECUTIVE  a  bonus  based  upon  factors  established  by the  Chairman  of the
Compensation Committee,  after consultation with the EXECUTIVE,  and approved by
the Board of  Directors;  provided  that,  such annual bonus shall never be less
than $50,000.

          (c)  EQUITY COMPENSATION.
               -------------------

               (i) INITIAL OPTION TO PURCHASE  COMMON STOCK.  Upon the Effective
Date,  the COMPANY  shall grant to the  EXECUTIVE an  incentive  stock option to
purchase  1,950,000  shares of Common Stock of COMPANY at an exercise  price per
share equal to the fair market  value of a share of Common  Stock of the COMPANY
on the date of grant,  as  determined  by the Board of  Directors.  Such options
shall be issued  pursuant to, and their exercise and the issuance of shares upon
exercise  shall be subject to, the terms and  conditions  of the Tucson  Medical
Corporation  1997  Incentive  Stock  Option/Issuance  Plan,  as amended  (or any
successor plan thereto) (the "PLAN"),  the corresponding  Stock Option Agreement
and  Notice  of Grant of Stock  Option  contemplated  by the Plan  (the  "OPTION
AGREEMENT")  and this Agreement.  Notwithstanding  anything in this Agreement to
the  contrary,  none of the options  granted to EXECUTIVE  shall be  exercisable
until the Plan has reserved and  available  for issuance a sufficient  amount of
Common Stock of the COMPANY to issue such Common Stock upon such exercise.

               (ii) INITIAL OPTION TO PURCHASE  SERIES G PREFERRED  STOCK.  Upon
the  Effective  Date,  the  COMPANY  shall grant to the  EXECUTIVE  an option to
purchase  7,500  shares of Series G  Preferred  Stock of COMPANY at an  exercise
price per share equal to $16.  Such  options  shall be issued  pursuant  to, and
their exercise and the issuance of shares upon exercise shall be subject to, the
terms and conditions of a stock option agreement  containing customary terms and
conditions and this Agreement.

               (iii) SUBSEQUENT  OPTION TO PURCHASE COMMON STOCK. Upon the first
anniversary  of the  Effective  Date,  provided the EXECUTIVE is employed by the
COMPANY on such date,  the COMPANY  shall grant to the  EXECUTIVE  an  incentive
stock  option to  purchase  1,300,000  shares of Common  Stock of  COMPANY at an
exercise  price per share  equal to the fair  market  value of a share of Common
Stock of the  COMPANY  on the  date of  grant,  as  determined  by the  Board of
Directors.  Such options shall be issued pursuant to, and their exercise and the
issuance of shares upon exercise  shall be subject to, the terms and  conditions
of  the  Plan,  the   corresponding   Option   Agreement  and  this   Agreement.
Notwithstanding  anything in this Agreement to the contrary, none of the options
granted  to  EXECUTIVE  shall be  exercisable  until the Plan has  reserved  and
available  for  issuance a  sufficient  amount of Common Stock of the COMPANY to
issue such Common Stock upon such exercise.

               (iv) VESTING OF OPTIONS.  The EXECUTIVE'S stock options described
in this  paragraph  3(c) shall become fully vested and  exercisable on the first
anniversary  of the date of grant of each such  option.  Should the  EXECUTIVE'S
employment be terminated by the COMPANY pursuant to paragraph 5(b) or be deemed

                                       2
<PAGE>
to be terminated by the COMPANY pursuant to paragraph 5(g), all stock options
granted to the EXECUTIVE pursuant to this Agreement shall immediately vest and
shall remain exercisable for such period of time as provided in the Plan or
respective stock option agreement.

               (v) CHANGE IN  CONTROL.  Upon a Change in Control  (as defined in
Annex A hereto),  notwithstanding  the vesting  schedule  described in paragraph
3(c)(iv),  all of the total stock options  granted to the  EXECUTIVE  under this
paragraph  3(c) that have not yet vested as of the effective date of such Change
in Control shall become fully vested and  exercisable  on the effective  date of
such Change in Control.

               (vi) OTHER ACCELERATION OF VESTING; OTHER TERMS. The acceleration
of vesting  provided for in the preceding  subparagraphs  is in addition to, and
not in lieu of, the  acceleration of vesting of stock options provided for under
the Plan or the  respective  stock  option  agreements  under the  circumstances
described in the Plan or such stock option agreement.  In addition,  each Option
Agreement shall (1) provide for incentive stock options to the extent consistent
with the terms of the options,  (2) provide for a ten-year  term,  (3) allow the
EXECUTIVE to exercise such options  during the period  following  termination of
employment  that is the lesser of (x) one (1) year  following the effective date
of a  registration  statement  (pursuant to Form S-8 or otherwise)  covering the
option shares of EXECUTIVE'S  options  granted  hereunder or (y) five (5) years,
(4)  afford  the  option  holder the  greatest  latitude  in manner of  exercise
permitted by the Plan, (5) not grant the COMPANY  repurchase rights as to shares
acquired by exercise of options other than as set forth in this  Agreement,  and
(6) otherwise be in substantially  the form of the standard form of stock option
agreement under the Plan, subject to the terms set forth in this Agreement.

               (vii) SECURITIES REGISTRATION. The COMPANY shall use commercially
reasonable  efforts  to  cause  all of the  EXECUTIVE'S  stock  options  granted
pursuant to paragraphs  3(c)(i) and  3(c)(iii),  and the issuance of shares upon
exercise thereof, to be included in an effective  registration statement on Form
S-8 (or any successor  form) under the  Securities  Act of 1933, as amended,  as
soon as reasonably practicable following the Effective Date.

     4.   PARTICIPATION IN BENEFIT PLANS, REIMBURSEMENT OF BUSINESS EXPENSES.
          ------------------------------------------------------------------

          (a)  BENEFIT PLANS.  During the term of this Agreement,  the EXECUTIVE
shall be provided with medical insurance,  dental benefits, sick leave benefits,
time off for holidays and other  benefits  which are not less than, and on terms
no less  favorable  than,  those the  COMPANY  provides  to its other  executive
employees.  At it's option,  in lieu of providing  the  EXECUTIVE  with any such
benefit,  the COMPANY may reimburse the  EXECUTIVE for the  EXECUTIVE'S  cost of
providing such benefit himself.

          (b)  VACATION.  The  EXECUTIVE  shall be entitled to four (4) weeks of
paid vacation each year. The EXECUTIVE may not accrue more than six (6) weeks of
vacation at any given time.

          (c)  REIMBURSEMENT OF BUSINESS  EXPENSES.  The COMPANY shall reimburse
the EXECUTIVE  promptly for all expenditures made by him during the term of this

                                       3
<PAGE>
Agreement,  which expenses are incurred to further the business and interests of
the COMPANY, including, but not limited to, travel,  entertainment,  parking and
expenses  incurred in connection  with  business  meetings  (including,  but not
limited to, the dues and business related expenses of memberships at appropriate
business  clubs,  provided  such  memberships  are  approved  in  writing by the
Chairman of the Board of the  COMPANY),  provided such expenses are incurred and
submitted for  reimbursement in accordance with the policies  established by the
Board of Directors in effect as of the date the expenses are incurred.

          (d)  LEGAL  EXPENSES.  The COMPANY will  reimburse  the  EXECUTIVE for
actual legal fees and expenses incurred by him in connection with the review and
negotiation  of this  Agreement  and  ancillary  documents,  up to a maximum  of
$2,500.

          (e)  INDEMNIFICATION.    The   EXECUTIVE    shall   be   entitled   to
indemnification  and advancement of expenses to the fullest extent provided,  in
the COMPANY'S bylaws or otherwise, to any other director or executive officer of
the  COMPANY,  unless  prohibited  by law.  EXECUTIVE  shall also be entitled to
coverage under each directors' and officers' liability insurance policy, if any,
maintained by or on behalf the COMPANY'S directors and officers.

     5.   TERMINATION OF EMPLOYMENT.
          -------------------------

          (a)  AUTOMATIC   TERMINATION.   The   EXECUTIVE'S   employment   shall
automatically terminate upon the earliest to occur of (1) the EXECUTIVE'S death,
(2) the  EXECUTIVE'S  disability  that has prevented  EXECUTIVE from  performing
substantially all of his duties and  responsibilities for a continuous period of
120  days or (3)  the  Expiration  Date.  The  COMPANY  shall  have  no  further
obligations  to the  EXECUTIVE  or his estate upon such  automatic  termination,
except (i) to honor the exercise of any stock  options that have vested prior to
or as of the date of such termination,  subject to the applicable  conditions of
the Plan or respective stock option agreement,  (ii) as provided by law or under
the terms of any life  insurance or permanent  disability  benefit and any other
applicable benefit plan in which the EXECUTIVE participated immediately prior to
the  termination of his  employment,  (iii) to pay any accrued but unpaid salary
and accrued but unused  vacation of the EXECUTIVE  through the effective date of
termination,  (iv) to reimburse the  EXECUTIVE for any expenses  incurred by him
before  the  effective  date  of  termination  that  are  otherwise  subject  to
reimbursement  under paragraph 4(c) above, and (v) to pay any accrued but unpaid
bonus earned by the EXECUTIVE with respect to a completed performance period.

          (b)  TERMINATION  OTHER THAN FOR CAUSE.  The COMPANY may terminate the
EXECUTIVE'S  employment  with the  COMPANY  other  than for  Cause at any  time,
provided it gives at least 30 days' prior  written  notice to the  EXECUTIVE  of
such  termination.  In the event that the  COMPANY  terminates  the  EXECUTIVE'S
employment  under this Agreement other than for Cause,  the COMPANY shall pay to
the EXECUTIVE a lump sum amount equal to the lesser of (i) six (6) months of the
EXECUTIVE'S  base salary in effect at the time the COMPANY  gives the  EXECUTIVE
notice of  termination  or (ii) the  EXECUTIVE'S  base salary from the effective
date of such termination  through the Expiration Date. If the COMPANY terminates
the EXECUTIVE'S employment under this Agreement without Cause at any time within
twelve (12) months after the  effective  date of Change in Control,  the COMPANY
shall  pay  the  EXECUTIVE,  in a  lump  sum  at  the  effective  time  of  such
termination,  an amount equal to the EXECUTIVE'S  base salary from the effective
date  of  such   termination   through  the  Expiration   Date;   such  lump-sum

                                       4
<PAGE>
Change-in-Control  payment shall be made in lieu of the  continuation of payment
of base salary under the preceding sentences in this paragraph 5(b). In addition
to the  foregoing  payments,  the  EXECUTIVE  shall also receive any accrued but
unpaid salary and accrued but unused vacation through the effective date of such
termination,  reimbursement  for  any  expenses  incurred  by him  prior  to the
effective date of such termination  that are otherwise  subject to reimbursement
under  paragraph  4(c)  above,  any  accrued  but unpaid  benefits  to which the
EXECUTIVE is then entitled  under the terms of the  COMPANY'S  benefit plans and
policies in which the EXECUTIVE is enrolled,  to be payable in  accordance  with
the terms of such plans and policies, and any accrued but unpaid bonus earned by
EXECUTIVE with respect to a completed performance period. All payments and other
termination  benefits paid hereunder  shall be less any  applicable  payroll and
withholding  taxes or other legally required  deductions.  As a condition to his
receipt of any payments  provided for in this paragraph 5(b), the EXECUTIVE must
first  execute a waiver and release of claims the EXECUTIVE may have against the
COMPANY,  in a form  reasonably  determined by the COMPANY.  In the event of the
EXECUTIVE'S  termination of employment  under this paragraph 5(b), the EXECUTIVE
shall have no obligation to mitigate his damages or to seek other  employment as
a condition to receiving any payments or other termination benefits hereunder.

          (c)  TERMINATION   FOR  CAUSE.   Notwithstanding   the  provisions  of
paragraph 5(b) above,  the COMPANY may terminate the EXECUTIVE'S  employment for
Cause.  For  purposes  of this  Agreement,  the  COMPANY  shall have  "Cause" to
terminate the EXECUTIVE'S employment in the event of any of the following:

               (i)  Conviction of the EXECUTIVE, or the EXECUTIVE'S plea of nolo
                    contendere,  for (x) any crime  involving moral turpitude or
                    dishonesty,  or (y)  any  felony  other  than  non-recurring
                    traffic violations (e.g., driving under the influence);

               (ii) The EXECUTIVE'S willful  participation in any material fraud
                    or act of dishonesty  against the COMPANY including engaging
                    in any material  transaction  that  represents,  directly or
                    indirectly,  self-dealing with the COMPANY that has not been
                    approved by a majority of the disinterested directors of the
                    Board  or is not  part  of  the  terms  of  the  EXECUTIVE'S
                    employment;

               (iii)The  EXECUTIVE'S  willful  action or willful  omission  that
                    materially  injures  the  reputation,  business  or business
                    relationships of the COMPANY;

               (iv) Breach by the  EXECUTIVE  of any material  obligation  under
                    this Agreement;

               (v)  The  repeated   non-prescription  abuse  of  any  controlled
                    substance  or the  repeated  abuse of  alcohol  or any other
                    non-controlled  substance  which,  in any case  described in

                                       5
<PAGE>
                    this clause,  the Board  reasonably  determines  renders the
                    EXECUTIVE  unfit to serve in his  capacity  as an officer or
                    employee of the COMPANY;

               (vi) Continued  willful  failure by the  EXECUTIVE to perform the
                    material    aspects   of   the   EXECUTIVE'S    duties   and
                    responsibilities  after  receiving  written warning from the
                    Board  specifying the duties or  responsibilities  which the
                    EXECUTIVE has failed to perform; or

               (vii)Recurring  conduct by the  EXECUTIVE  that in the good faith
                    and  reasonable  determination  of the  COMPANY'S  Board  of
                    Directors  demonstrates  gross  unfitness  to  serve  as  an
                    executive employee of the COMPANY.

          Physical or mental  disability,  or conduct resulting from physical or
mental disability, of the EXECUTIVE shall not constitute "Cause." No termination
of the EXECUTIVE'S  employment shall be deemed for "Cause" unless (A) at least a
majority of the Board of  Directors  of the COMPANY,  excluding  the  EXECUTIVE,
determines  (by vote or consent)  that at least one of the events  described  in
clauses (i) through  (vii) of this  paragraph  5(c) has occurred  within six (6)
months  before  such  determination,  (B) the Board of  Directors  has given the
EXECUTIVE   written  notice  of  its  intention  to  terminate  the  EXECUTIVE'S
employment for Cause,  specifying with reasonable  particularity  the grounds on
which the proposed termination for Cause is contemplated,  and (C) the EXECUTIVE
has been afforded a reasonable  opportunity  to meet with the Board of Directors
of the COMPANY to discuss the proposed  termination  for Cause. In the event the
EXECUTIVE'S  employment  is  terminated  for Cause,  he will not be  entitled to
receive any severance compensation or other benefits,  except that the EXECUTIVE
shall be  entitled to receive  accrued but unpaid  salary and accrued but unused
vacation through the effective date of such  termination,  reimbursement for any
expenses incurred by him prior to the effective date of his termination that are
otherwise  subject to reimbursement  under paragraph 4(c) above, any accrued but
unpaid  benefits to which the EXECUTIVE is then entitled  under the terms of the
COMPANY'S  benefit plans and policies in which the EXECUTIVE is enrolled,  to be
payable in accordance with the terms of such plans and policies, and any accrued
but unpaid bonus earned by the EXECUTIVE with respect to a completed performance
period.

          (d)  RESIGNATION.  The  EXECUTIVE  retains  the  right  to  resign  or
otherwise  voluntarily  terminate his employment  with the COMPANY upon 30 days'
written notice to the Chairman of the Board. In the event the EXECUTIVE  resigns
or  otherwise  voluntarily  terminates  his  employment  with the  COMPANY,  the
EXECUTIVE shall not be entitled to any severance  compensation or other benefits
beyond the effective date of his resignation, except that the EXECUTIVE shall be
entitled to the payments and benefits provided under paragraph 5(a) above.

          (e)  STOCK OPTIONS. Subject to the provisions of paragraph 3(c) above,
only the shares  subject to the stock  options  granted to EXECUTIVE  under this

                                       6
<PAGE>
Agreement  that  have  vested  prior  to the date of the  termination  of or his
resignation  from his  employment  under this  Agreement may be exercised by the
EXECUTIVE,  such exercise to be subject to the  conditions set forth in the Plan
and/or  any  applicable  stock  option  agreement.  Any stock  options  that are
unvested (and not deemed vested under some provision of this Agreement, the Plan
or any  applicable  stock  option  agreement)  as of  the  date  of  EXECUTIVE'S
termination shall be forfeited.

          (f)  NO RESTRICTION ON COBRA RIGHTS. Nothing in this paragraph 5 shall
be  deemed  to  impair  or  limit  any  of  the  EXECUTIVE'S  rights  under  the
Consolidated Omnibus Benefits Reconciliation Act.

          (g)  DEEMED   TERMINATION.   The  EXECUTIVE  may  elect  to  deem  the
occurrence  of  any  event  described  in  (i),  (ii)  or  (iii)  below  to be a
termination  of the  EXECUTIVE'S  employment by the COMPANY other than for Cause
for all purposes  under this  Agreement,  provided the EXECUTIVE so notifies the
Chairman  of the Board of the  COMPANY in writing of such event and the  COMPANY
does not remedy  such  situation  within 30 days of  receipt of the  EXECUTIVE'S
notice.  Any such  election  by the  EXECUTIVE  shall not be deemed a  voluntary
resignation  by him.  The  failure of the  COMPANY'S  stockholders  to elect the
EXECUTIVE to the Board shall not be deemed a  termination  of  employment  under
this Agreement;  PROVIDED THAT, the EXECUTIVE has been nominated for election as
provided in paragraph 1(b) above.  Unless  otherwise agreed to by the EXECUTIVE,
the following events may give rise to a deemed  termination under this paragraph
5(g):

               (i)  The  removal of the  EXECUTIVE  from his  position  of Chief
                    Executive  Officer of the  COMPANY or any  successor  to the
                    COMPANY (whether by merger, consolidation, reorganization or
                    sale  of all or  substantially  all  of  the  assets  of the
                    COMPANY) or the  assignment  to the  EXECUTIVE of any duties
                    inconsistent  with his status as Chief Executive  Officer of
                    the COMPANY or any successor to the COMPANY;

               (ii) Any  material  decrease  or adverse  change in the nature or
                    scope  of  the  EXECUTIVE'S  authority,   power,  functions,
                    responsibilities  or  duties  or any  requirement  that  the
                    EXECUTIVE  report to any  person or  persons  other than the
                    Board of  Directors  of the COMPANY or any  successor to the
                    COMPANY;

               (iii)A demand by the COMPANY  that the  EXECUTIVE  relocate  from
                    his then-current place of residence.

     6.   NONCOMPETITION, CONFIDENTIALITY, FREEDOM TO ENTER INTO AND PERFORM AND
          CONFLICTS OF INTEREST.
          ----------------------------------------------------------------------

          (a)  CONFIDENTIAL  INFORMATION.  The EXECUTIVE  agrees and understands
that,  due to the  nature  of his  position  with  the  COMPANY,  he  will  gain
possession of confidential information about the COMPANY and the way it conducts
its business. The EXECUTIVE shall not, directly or indirectly, either during the

                                       7
<PAGE>
period  of the  EXECUTIVE'S  employment  under  this  Agreement  or  thereafter,
disclose to anyone (except in the regular course of the COMPANY'S business or as
required by deposition,  interrogatory,  civil investigative demand,  applicable
law or subpoena),  or use in  competition  with the COMPANY,  any non-public and
proprietary  information  acquired by the EXECUTIVE during his employment by the
COMPANY  hereunder  with  respect to any  confidential  or secret  aspect of the
COMPANY'S  operations,   business,  affairs,  plans,  prospects,  strategies  or
condition  (financial or otherwise),  unless such  information has become public
knowledge other than by reason of actions (direct or indirect) of the EXECUTIVE.
The  EXECUTIVE'S  duties and  obligations  under this  paragraph  shall  survive
termination of his employment with the COMPANY. The EXECUTIVE  acknowledges that
a remedy  at law for any  breach  or  overtly  threatened  breach  by him of the
provisions of this paragraph  would be inadequate to protect the COMPANY against
the consequences of such breach,  and he therefore agrees that the COMPANY shall
be  entitled  to  injunctive  relief  in  case of any  such  breach  or  overtly
threatened breach.

          (b)  RESTRICTIVE COVENANT.  During the period beginning on the date of
the  EXECUTIVE'S  employment  by the COMPANY  hereunder  and ending one (1) year
after such employment  terminates for any reason (the "Non-Compete  Term"),  the
EXECUTIVE agrees not to, at any time, directly or indirectly, whether or not for
compensation,  engage in, or have any interest in, any person, firm, corporation
or business  (whether as an  employee,  security  holder,  proprietor,  officer,
director,  agent,  trustee,  consultant,  partner,  creditor or otherwise)  that
engages in or operates a business  that  includes  distributing,  manufacturing,
selling or marketing of products or services in competition with the products or
services  distributed,  manufactured,  sold or marketed by the COMPANY, or under
active development by the COMPANY,  during the EXECUTIVE'S employment under this
Agreement  (the  "Business")  in any state in the United  States or in any other
jurisdiction  outside  the  United  States  in which the  COMPANY  or any of its
subsidiaries  or  affiliates  conducted the Business;  provided,  however,  that
during the  Non-Compete  Term,  the EXECUTIVE may own shares of companies  whose
securities  are  publicly  traded,  so long as the  securities  so  owned do not
constitute  more than five (5%) percent of the  outstanding  securities  of such
company  (unless  such  company is the  COMPANY,  in which  case no limit  shall
apply).  The  provisions of this  paragraph  6(b) shall apply both during normal
working  hours and at all other times  including,  but not  limited to,  nights,
weekends  and  vacation  time  during  the   Non-Compete   Term.  The  EXECUTIVE
acknowledges that a remedy at law for any breach or overtly threatened breach by
him of the  provisions of this paragraph 6(b) would be inadequate to protect the
COMPANY against the  consequences of such breach,  and he therefore  agrees that
the COMPANY shall be entitled to injunctive relief in case of any such breach or
overtly threatened breach.

          (c)  FREEDOM TO ENTER INTO AND PERFORM THIS  AGREEMENT.  The EXECUTIVE
represents  and warrants to the COMPANY  that he is subject to no  restrictions,
either  by  virtue  of any  agreement  made  by him or for  his  benefit,  or by
operation of law, that would prohibit,  prevent or interfere with in any way his
entering into, or his performing fully and without restriction,  his obligations
under this Agreement,  or which would render the COMPANY liable to a third party
as a result of the EXECUTIVE'S entering into or performing his obligations under
this Agreement.

                                       8
<PAGE>
          (d)  CONFLICTS OF INTEREST. During the Non-Compete Term, the EXECUTIVE
agrees not to acquire,  assume or participate  in,  directly or indirectly,  any
position,  investment or interest known by him to be adverse or  antagonistic to
the COMPANY,  its business or prospects,  financial or otherwise.  However,  the
EXECUTIVE may own, as a passive investor only, securities of any publicly traded
companies,  provided  his  beneficial  ownership  of the  stock  of any one such
corporation does not exceed 5% of such corporation's voting stock.

          (e)  NON-SOLICITATION.  During the  Non-Compete  Term,  the  EXECUTIVE
agrees  not to  solicit  for,  or divert  or  attempt  to  divert,  directly  or
indirectly,  any business of any of the COMPANY or its subsidiaries,  that is or
was (in each case)  part of the  Business  or under  active  development  by the
Business  during  the  EXECUTIVE'S  employment  under  this  Agreement,  or  any
customers or suppliers  of the COMPANY or its  subsidiaries,  that is or was (in
each case) part of the Business or under active  development to incorporate into
the  Business  during the  EXECUTIVE'S  employment  under this  Agreement to any
competitor of the same. The EXECUTIVE  agrees that during the Non-Compete  Term,
he  shall  not  interfere  with the  business  of the  COMPANY  by  directly  or
indirectly soliciting, attempting to solicit, inducing or otherwise deliberately
causing any person who at any time within the previous one (1) year period shall
have  been  an  employee  or  independent  contractor  of  the  COMPANY  or  its
subsidiaries  to  terminate  his or her  employment  to  become  employed  by or
associated with any other person,  firm or corporation,  and the EXECUTIVE shall
not approach any such  employee or  independent  contractor  for such purpose or
authorize or knowingly  approve the taking of such actions by any other  person,
firm or  corporation  or assist any such person,  firm or  corporation in taking
such action.  Nothing in this paragraph  6(e) shall prevent the EXECUTIVE  from,
directly or indirectly,  employing or  contracting  with any person who contacts
the  EXECUTIVE,  or any  other  person,  firm,  or  corporation  with  which the
EXECUTIVE  may be  associated,  on such  person's  own  initiative  without  any
solicitation  by or  encouragement  from the  EXECUTIVE  or  shall  apply to any
solicitation directed at the public or the industry in general, and not targeted
to  particular  employees  or  independent  contractors  of the  COMPANY  or its
subsidiaries described in the immediately preceding sentence.

     7.   NOTICES.  For  purposes  of this  Agreement,  all  notices  and  other
communications  required or permitted by this  Agreement  shall be in writing or
via  facsimile  and shall be deemed  to have  been  duly  given,  in the case of
facsimile  transmission,  on the  business  day  following  the  day  sent,  and
otherwise  when  delivered in person or by courier or on the earlier of delivery
or the  fourth  business  day after  mailing  by  United  States  Registered  or
Certified Mail, return receipt requested, postage prepaid, addressed as follows:

         If to the EXECUTIVE:       Mr. Bradford C. Walker
                                    8207 SE 48th Street
                                    Mercer Island, WA  98040
                                    Fax:  206-275-1479

         If to the COMPANY:         PrimeSource Healthcare, Inc.
                                    3700 E. Columbia Street
                                    Tucson, AZ 85714
                                    Fax:  520-512-0134
                                    Attn:  Chairman of the Board

                                       9
<PAGE>
                                    With a copy to:

                                    Skadden, Arps, Slate, Meagher & Flom LLP
                                    300 South Grand Ave., Suite 3400
                                    Los Angeles, CA  90071
                                    Fax:  213-687-5600
                                    Attention:  Gregg Noel, Esq.

or at such other address as the addressee may have  furnished to the other party
in writing  subsequent to the execution of this Agreement or, in the case of the
EXECUTIVE,  to any  other  permanent  address  listed  for him in the  COMPANY'S
records,  or, in the case of the COMPANY,  to the address known by the EXECUTIVE
to be where the office of the Chairman of the Board of the COMPANY is located.

     8.   MODIFICATIONS; WAIVERS; APPLICABLE LAW. No provision in this Agreement
may be  modified,  waived or  discharged  unless such  waiver,  modification  or
discharge is agreed to in writing,  signed by the  EXECUTIVE and by the Chairman
of the Board of the COMPANY.  This  Agreement  and the  employment  relationship
hereunder shall be governed by,  construed in accordance with and enforced under
applicable  federal law and the laws of the State of Arizona  without  regard to
its principles of conflict of laws that would defer to the  substantive  laws of
another jurisdiction.

     9.   SEVERABILITY.  If any provision of this  Agreement is determined to be
invalid or is in any way modified by any governmental agency, tribunal, or court
of competent jurisdiction, such determination shall be considered as a separate,
distinct,  and  independent  part of this  Agreement  and shall not  affect  the
validity or enforceability of any of the remaining provisions of this Agreement.

     10.  SUCCESSOR  RIGHTS AND ASSIGNMENT.  This Agreement shall bind, inure to
the  benefit  of and  be  enforceable  by  the  EXECUTIVE'S  personal  or  legal
representatives, executors, administrators, successors, heirs, distributees, and
legatees.  The rights and obligations of the COMPANY under this Agreement may be
assigned  by the  COMPANY  as part of the  assignment  or  transfer  (including,
without  limitation,  by merger or other event  resulting in such  assignment by
operation  of law)  of all or  substantially  all of the  COMPANY'S  assets  and
business,  provided  that at the time of such  assignment  the  assignee has the
ability to meet the obligations to the EXECUTIVE set forth in this Agreement, in
which event this  Agreement  shall be binding upon, and inure to the benefit of,
the  person(s) or  entity(ies)  to whom it is assigned.  The  EXECUTIVE  may not
assign his duties  hereunder  and he may not assign any of his rights  hereunder
without the written consent of the COMPANY.

     11.  SURVIVAL OF PROVISIONS.  The respective  rights and obligations of the
COMPANY and the EXECUTIVE  under this Agreement shall survive any termination or
other  cessation of the EXECUTIVE'S  employment to the extent  necessary to give
full effect to the agreements and covenants set forth in this Agreement.

                                       10
<PAGE>
     IN WITNESS  WHEREOF,  the  EXECUTIVE  and the COMPANY  have  executed  this
Agreement effective as of the Initial Closing.

                                   EXECUTIVE:

                                   /s/ Bradford C. Walker
                                   ---------------------------------------------
                                   Bradford C. Walker

                                   COMPANY:

                                   By:  /s/ Shaun McMeans
                                   ---------------------------------------------

                                   Name:    Shaun McMeans
                                   ---------------------------------------------

                                   Its:     Chief Financial Officer
                                   ---------------------------------------------

                                       11
<PAGE>
                                                                         ANNEX A
                                                                         -------

                               CERTAIN DEFINITIONS

(1) "BENEFICIAL  OWNER" shall have the meaning set forth in Rule 13d-3 under the
Exchange Act.

(2) A "CHANGE  IN  CONTROL"  shall be deemed to have  occurred  if the event set
forth in any one of the following paragraphs shall have occurred:

          (a)  any  Person  (as  defined  in this  Annex  A) is or  becomes  the
          Beneficial Owner (as defined in this Annex A), directly or indirectly,
          of  securities  of  the  Company  (not  including  in  the  securities
          beneficially  owned by such Person any  securities  acquired  directly
          from the Company or its  affiliates)  representing  50% or more of the
          combined  voting power of the COMPANY'S then  outstanding  securities,
          excluding any Person who becomes such a Beneficial Owner in connection
          with a transaction described in clause (i) of paragraph (c) below; or

          (b) there is consummated a merger or  consolidation  of the Company or
          any  direct  or  indirect  subsidiary  of the  Company  with any other
          corporation,  other  than (i) a merger or  consolidation  which  would
          result in the voting securities of the Company outstanding immediately
          prior to such merger or consolidation  continuing to represent (either
          by remaining  outstanding or by being converted into voting securities
          of the  surviving  entity or any parent  thereof)  at least 50% of the
          combined  voting  power  of the  securities  of the  Company  or  such
          surviving entity or any parent thereof  outstanding  immediately after
          such  merger  or  consolidation,  or (ii) a  merger  or  consolidation
          effected to  implement a  recapitalization  of the Company (or similar
          transaction)  in which no Person is or becomes the  Beneficial  Owner,
          directly or indirectly, of securities of the Company (not including in
          the  securities  Beneficially  Owned  by such  Person  any  securities
          acquired directly from the Company or its Affiliates) representing 50%
          or more of the combined voting power of the COMPANY'S then outstanding
          securities; or

          (c)  the  stockholders  of the  Company  approve  a plan  of  complete
          liquidation  or  dissolution of the Company or there is consummated an
          agreement  for  the  sale  or  disposition  by the  Company  of all or
          substantially  all of  the  COMPANY'S  assets,  other  than a sale  or
          disposition  by  the  Company  of  all  or  substantially  all  of the
          COMPANY'S  assets to an entity,  at least 50% of the  combined  voting
          power of the voting  securities of which are owned by  stockholders of
          the Company in  substantially  the same proportions as their ownership
          of the Company immediately prior to such sale.

Notwithstanding the foregoing, a "Change in Control" shall not be deemed to have
occurred  solely by virtue of the  consummation  of any transaction or series of
integrated  transactions  immediately  following which the record holders of the

<PAGE>

common stock of the Company  immediately  prior to such transaction or series of
transactions continue to have substantially the same proportionate  ownership in
an entity  which  owns all or  substantially  all of the  assets of the  Company
immediately following such transaction or series of transactions.

(3) "CODE" shall mean the Internal Revenue Code of 1986, as amended from time to
time.

(4) "EXCHANGE  ACT" shall mean the  Securities  Exchange act of 1934, as amended
from time to time.

(5) "EXCISE  TAX" shall mean any excise tax imposed  under  section  4999 of the
Code.

(6)  "Person"  shall have the meaning  given in Section  3(a)(9) of the Exchange
Act, as modified and used in Sections 13(d) and 14(d) thereof,  except that such
term  shall not  include  (i) the  Company  or any of its  subsidiaries,  (ii) a
trustee or other fiduciary holding  securities under an employee benefit plan of
the Company or any of its Affiliates,  (iii) an underwriter  temporarily holding
securities  pursuant to an offering of such  securities,  or (iv) a  corporation
owned,   directly  or  indirectly,   by  the  stockholders  of  the  Company  in
substantially the same proportions as their ownership of stock of the Company.

                                       2

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