Document:

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                                                                 EXHIBIT 10.215

                              EMPLOYMENT AGREEMENT

This EMPLOYMENT AGREEMENT made as of this 11th day of June, 1998, (this
"Agreement") by and between Paxson Communications Corporation, a Delaware
corporation with its principal place of business at 601 Clearwater Park Road,
West Palm Beach, Florida 33401-6233 ("Company") and Anthony L. Morrison, an
individual, currently residing at the address set forth under such individual's
signature below (the "Executive") (collectively, the "Parties").

WHEREAS, Company desires to employ Executive as Vice President, General Counsel
and Chief Legal Officer, and the Parties desire to enter into this agreement to
secure Executive's employment as Vice President, General Counsel and Chief
Legal Officer during the term hereof, all on the terms and conditions set forth
herein.

NOW, THEREFORE, the Parties agree as follows:

1.       The Company agrees to employ the Executive and the Executive agrees to
         serve the Company as Vice President, General Counsel and Chief Legal
         Officer based primarily at the Company's West Palm Beach, Florida
         offices, on the terms and conditions hereinafter set forth.

2.       Employment of the Executive by the Company pursuant to this Agreement
         will be for a five (5) year period commencing effective January 1,
         1998, unless sooner terminated, pursuant to Paragraph 7 hereof (the
         "Term of Employment").

3.       Subject to the direction and control of the Chairman of the Board and
         Chief Executive Officer, and such other senior executive officer as
         the Chairman of the Board may direct to whom Executive will report,
         the Executive shall have all of the power and authority inherent in
         the position of Vice President, General Counsel and Chief Legal
         Officer and shall supervise and be responsible for the operations and
         management of the Company and its subsidiaries. The Executive shall
         also have such other executive powers and duties, consistent with his
         responsibilities as Vice President, General Counsel and Chief Legal
         Officer, as may, from time to time, be prescribed by the Chairman of
         the Board and Chief Executive Officer. The Executive agrees to render
         his services under this Agreement loyally and faithfully,

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         to the best of his abilities and in substantial conformance with all
         laws, rules and Company policies, and in connection therewith, will
         not improperly or without good cause, in the best interest of the
         Company, disclose any trade secrets or other confidential information
         of the Company. Without limiting the foregoing, except as expressly
         modified herein, Executive shall be subject to all of the Company's
         policies including payola, plugola and conflicts of interests, as well
         as the following:

         (1)      Executive will comply with all the Company and professional
                  standards governing Executive's objectivity in the
                  performance of Executive's duties, including restrictions on
                  outside activities, investments, business interests, or other
                  involvements which could compromise Executive's objectivity
                  or create an impression of conflict of interest. Executive
                  will not, without the prior approval of the Chairman of the
                  Board or the Chief Executive Officer , accept any gift,
                  compensation, or gratuity (which excludes business meals and
                  entertainment received by Executive in the ordinary course of
                  business) from any person or entity with which the the
                  Company or any of its broadcast properties is or may be in
                  competition or in any instance where there is a stated or
                  implied expectation of favorable treatment of that person or
                  entity. Executive will not, without the prior written
                  approval of the Chairman of the Board or the Chief Executive
                  Officer, take advantage of any business opportunity or
                  situation or engage in any enterprise or venture of which the
                  the Company may have an interest on his or her own behalf, if
                  said business opportunity or situation, enterprise or venture
                  is related in any way to or is similar to the business of the
                  the Company.

         (2)      In performing Executive's duties under this Agreement,
                  Executive shall conduct himself with due regard to social
                  conventions, public morals and standards of decency, and will
                  not cause or permit any situation or occurrence which would
                  tend to degrade, scandalize, bring into public disrepute, or
                  otherwise lower the community standing of Executive or the
                  Company's public image.

4.       Company will pay the Executive a base salary (the "Base Salary"), to
         be paid on the same payroll cycle as other salaried employees of the
         Company, at an annual rate for 1998 of $196,875, which Base Salary
         shall be increased annually, effective

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         January 1 of each year thereafter during the Term of Employment, by an
         amount equal to not less than 10% of the Base Salary in effect for the
         most recently ended calendar year. 1.

         In addition to the Base Salary, the Executive agrees to participate in
         the Company's Executive Bonus Plan and receive bonus awards from time
         thereunder, subject to the satisfaction of the terms and conditions
         set forth therein. Without limiting the foregoing, nothing shall
         preclude Executive from receiving special cash bonus awards not
         included within the Executive Bonus Plan, as determined from time in
         the sole discretion of the Company. In addition to Executive's Base
         Salary and participation in the Executive Bonus Plan, Executive may,
         as determined from time to time, in the sole discretion of the
         Company, be eligible to receive or participate in various non-cash
         compensation programs, including, without limitation, annual and
         special non-cash bonus awards, grants of stock options, restricted
         stock, "phantom-equity" and stock appreciation rights (collectively,
         "Non-Cash Bonus Awards"). Employee's rights in respect of any Non-Cash
         Compensation shall be governed under the terms of a separate document
         or documents, if any Non-Cash Compensation is to be awarded to
         Employee.

         The Company will have the right to withhold from payments otherwise
         due and owing to Executive or to require the Executive to remit to the
         Company in cash upon demand an amount sufficient to satisfy any
         federal (including FICA and FUTA amounts), state, and/or local
         withholding tax requirements at the time the Executive recognizes
         income for federal, state, and/or local tax purposes with respect to
         any payments to Executive under the terms hereof or under any other
         compensation arrangements, including, Non-Cash Compensation. If any
         excise tax withholding by the Company is required pursuant to Section
         4999 of the Internal Revenue Code of 1986, as amended (the "Code") on
         an "excess parachute payment," as this term is defined in Section 4999
         of the Code, in connection with any payments made under the terms
         hereof, or under any other compensation arrangements, including, the
         Executive Bonus Plan and any Non-Cash Compensation, the Company will
         be required to pay compensation to the Executive ("Gross-Up Payment")
         in an amount equal to the excise tax withholding required to be
         withheld by the Company on such amounts paid to Executive and the
         Gross-Up Payment itself. The Company then will withhold the Gross-Up
         Payment to satisfy this withholding obligation. Except as

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         otherwise provided by this Paragraph 4, the Company will not be liable
         to Executive for any tax consequences incurred by Executive with
         respect to payments to Executive under the terms hereof or under any
         other compensation arrangements, including, Non-Cash Compensation.

5.       During the Term of Employment, the Executive shall be eligible to
         participate in all employee benefit plans and arrangements now in
         effect or which may hereafter be established, which are generally
         available to other senior executives of the Company, including,
         without limitation, all life, group insurance and medical plans and
         all disability, retirement and other employee benefit plans of the
         Company, as long as any such plan or arrangement remains generally
         applicable to other senior executives of the Company.

6.       The Executive shall be reimbursed for all reasonable expenses incurred
         by him in the discharge of his duties, including, but not limited to,
         expenses for entertainment and travel. The Executive shall account to
         the Company for all such expenses.

7.       Notwithstanding the provisions of Paragraph 2 of this Agreement, the
         Executive's Term of Employment pursuant to this Agreement shall
         terminate on the earliest of the following dates:

         (1)      The date of the Executive's death. In such event, the Company
                  shall pay to the Executive's legal representatives or named
                  beneficiaries (as the Executive may designate from time to
                  time in a writing delivered to the Company) the Executive's
                  Base Salary for a one (1) year period following the date of
                  the Executive's death;

         (2)      If the Board of Directors chooses to give the Executive
                  notice of termination of his employment due to his
                  disability, as defined in the Company's Long Term Disability
                  Plan, a date specified in the notice which shall be not less
                  than thirty (30) days after the date on which the notice is
                  received by the Executive. In the event that the Executive's
                  employment is terminated due to his disability under this
                  subparagraph (b), the Executive or the Executive's legal
                  representative shall continue to be paid the Executive's Base
                  Salary then in effect for the lesser of (i) two years and
                  (ii) the remaining Term of Employment. If, prior to the
                  specified termination date in such notice by the

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                  Company, the Executive's illness or disability has terminated
                  and the Executive has resumed his duties under this
                  Agreement, the Executive shall be entitled to resume
                  employment under this Agreement as though such notice had not
                  been given. The opinion of the Executive's physician as to
                  disability shall be deemed presumptively valid;

         (3)      If the Board of Directors chooses to give the Executive
                  notice of termination of his employment for "good cause", a
                  date specified in the notice, consistent with the provisions
                  of subparagraph (c). The term "good cause" as used in this
                  Agreement shall mean the occurrence of any of the following
                  events:

                  (1)      Executive's arrest for the commission of (A) a
                           felony, (B) any criminal act with respect to
                           Executive's employment (including any criminal act
                           involving a violation of the Communications Act of
                           1934, as amended, or regulations promulgated by the
                           Federal Communications Commission), or (C) any act
                           that materially threatens to result in suspension,
                           revocation, or adverse modification of any FCC
                           license of any broadcast station owned by any
                           affiliate of the Company or would subject any such
                           broadcast station to fine or forfeiture;
                  (2)      Executive's taking of any action or inaction which
                           would cause the Company to be in default under any
                           material contract, lease or other agreement;
                  (3)      Executive's dependence on alcohol or illegal drugs;
                  (4)      Failure or refusal to perform according to or follow
                           the lawful policies and directives of the Chairman
                           of the Board or the Chief Executive Officer;
                  (5)      Executive's misappropriation, conversion or
                           embezzlement of the assets of the Company or any
                           affiliate of the Company;
                  (6)      A material breach of this Agreement by Executive,
                           including engaging in action in violation of
                           Paragraph 8 of this Agreement; or
                  (7)      Any representation of Executive in Paragraph 9 of
                           this Agreement being false when made; or
                  (8)      The Executive voluntarily, including retirement,
                           ceases his employ with the Company at a time when
                           the Company is not in material breach of this
                           Agreement.

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                  In the event of a termination under this subparagraph (c),
                  other than pursuant to clause (c)(vIII), the Company shall
                  notify the Executive of its intentions to terminate his
                  employment and the specific reason(s) therefore, and the
                  Executive, on at least ten (10) business days notice, shall
                  have had an opportunity to respond thereto; and, provided
                  further, if the basis for such termination is susceptible of
                  being cured by the Executive, the Company shall afford the
                  Executive a reasonable period, not to exceed 60 days, to
                  effect such cure, and the Executive's employment may not be
                  terminated during said period.

                  In the event of termination for good cause, the Company will
                  be released from all further obligation to the Executive
                  under this Agreement, except for such salary as may have been
                  earned or bonus award made but not paid prior to the
                  termination;

         (4)      The date on which the Board of Directors chooses to notify
                  the Executive that the Board of Directors, in its sole
                  discretion, has determined that it is in the best interest of
                  the Company to terminate the Executive's employment. In the
                  event of such termination, the Executive will continue to be
                  paid the Executive's Base Salary then in effect for the
                  lesser of (i) two years and (ii) the remaining Term of
                  Employment;

         (5)      On the date that the Executive terminates his employment for
                  Good Reason. For purposes of this subparagraph (e), "Good
                  Reason" shall mean that the Company has breached any of the
                  material terms, conditions and provisions of this Agreement.
                  In such case, the Executive shall notify the Company of his
                  intentions to terminate his employment and the specific
                  reason(s) therefor, and the Company, on at least ten (10)
                  business days notice, shall have an opportunity to respond
                  thereto; and, provided further, if the basis for such
                  termination is susceptible of being cured by the Company, the
                  Executive shall afford the Company a reasonable period, not
                  to exceed 60 days, to effect such cure, and the Executive may
                  not terminate his employment during said 60 day period. In
                  the event of such termination, the Executive will continue to
                  be paid Executive's Base Salary then in effect for the lesser
                  of (i) two years and (ii) the remaining Term of Employment;

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         (6)      If, within one year after a Change of Control (as defined
                  below), the Company terminates Executive's employment with
                  the Company without Cause, the Executive will continue to be
                  paid Executive's Base Salary then in effect for the lesser of
                  (i) two years and (ii) the remaining Term of Employment. For
                  purposes of this Agreement:

                  (1)      A "Change of Control" will occur if (a) none of
                           Lowell W. Paxson, his estate, his wife, his lineal
                           descendants, or any trust created for the sole
                           benefit of any one or more of them during their
                           lifetimes, or any combination of any of the
                           foregoing, shall (i) own, directly or indirectly, at
                           least 35 percent of the issued and outstanding
                           capital stock of the Company or (ii) have voting
                           control, directly or indirectly, equal to at least
                           51 percent of the issued and outstanding capital
                           stock of the Company entitled to vote in the
                           election of Board of Directors of the Company; (b)
                           the approval by the shareholders of the Company of a
                           reorganization, merger, or consolidation, in each
                           case, with respect to which persons who were
                           shareholders of the Company immediately prior to
                           this reorganization, merger or consolidation do not,
                           immediately thereafter, own more than 50 percent of
                           the combined voting power entitled to vote generally
                           in the election of directors of the reorganized,
                           merged or consolidated company's (or any successor
                           entity's) then outstanding securities; or (c) a
                           liquidation or dissolution of the Company or of the
                           sale of all or at least 80 percent of the Company's
                           assets.

         (7)      The expiration of the Term of Employment as described in
                  Paragraph 2 of this Agreement.

                  Following the termination of the Executive's employment under
                  this Agreement upon the original stated Term of Employment,
                  the Company will have no further liability to the Executive
                  hereunder and no further payments will be made to him, except
                  as provided in subparagraphs (a) through (f) above or any
                  bonus awards not paid as of such termination, and except to
                  the extent that the Executive qualifies for benefits under
                  any employee benefit plan available to the Executive as
                  provided in Paragraph 5.

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         8.       Executive agrees that from the date of this Agreement until
                  the Covenant Termination Date (as defined in Paragraph 8(a)
                  below), Executive will not, directly or indirectly, whether
                  as sole proprietor, partner, lessor, venturer, stockholder,
                  director, officer, employee, consultant or in any other
                  capacity as principal or agent or through any person,
                  subsidiary, affiliate or employee acting as nominee or agent,
                  engage or participate in any of the following actions:

                  (1)      Owning, leasing, managing, operating, controlling or
                           providing financial assistance (other than (i) in
                           connection with services provided by Executive as
                           the employee of a commercial or investment bank or
                           similar financial services business or consulting
                           business which extends credit to, makes investments
                           in, or provides financial advice or consulting
                           services to, broadcasting companies; (ii) as an
                           attorney in a practice of law) to any national (e.g.
                           reaching more than 30% of nationwide television
                           households) broadcast or cable television network or
                           television programming service;
                  (2)      Influencing or attempting to influence any person or
                           entity who is a contracting party with the Company
                           or any subsidiary thereof (the "Paxson Group") to
                           terminate any written or oral agreement with such
                           member of the Paxson Group; or
                  (3)      Hiring or attempting to hire for employment any
                           person who is employed by any member of the Paxson
                           Group or attempting to influence any such person to
                           terminate employment with any member of the Paxson
                           Group.

         Nothing herein shall prohibit Executive from investing in any
         broadcast company where such investment does not cause Executive to be
         an "affiliate" of such entity under the terms of the Securities Act of
         1993.

         (2)      "COVENANT TERMINATION DATE" means:

                  (1)      If Executive's employment is terminated pursuant to a
                           termination for good reason pursuant to Paragraph
                           7(e), the earlier of (i) the last day

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                           of the 6th full calendar month after the termination
                           of employment and (ii) the expiration of the Term of
                           Employment.
                  (2)      If Executive's employment is terminated pursuant to
                           a termination for good cause under Paragraph 7(c) or
                           a change of control under Paragraph 7(f), the last
                           day of the 12th full calendar month after the date
                           on which Executive's employment is terminated.
                  (3)      If Executive's employment is terminated pursuant to
                           a termination for any reason other than by Executive
                           under Paragraph 7(e), or by Company under Paragraphs
                           7(c) and 7(f), the date on which Executive's
                           employment is terminated.

         (3)      Executive agrees that the Covenant Not to Compete is a
                  material part of Executive's obligations under this Agreement
                  for which the Company has agreed to compensate Executive as
                  provided in this Agreement. Accordingly, if Executive at any
                  time materially breaches this Covenant Not to Compete and the
                  Company is in compliance with all of its obligations
                  hereunder and under any other compensation agreements or
                  arrangements with Executive, then all rights of Executive to
                  compensation under this Agreement shall immediately
                  terminate, Company shall have no further liability to
                  Executive and no further payments (if any are otherwise
                  required to be made hereunder) shall be required to be made
                  to Executive.

         (4)      Executive expressly agrees that the services (s)he will
                  render are of a special and extraordinary character that
                  gives them a unique value; that the loss of such services
                  could not be reasonably or adequately compensated by an
                  action for damages; and that the Company may enforce this non
                  compete covenant without proof of actual damages. Executive
                  expressly agrees that his(her) services have special and
                  unique value to the Company and that the Company would be
                  irreparably injured by a breach of this Paragraph 8. Further,
                  Executive acknowledges the legitimate business interest of
                  the Company in the protection of its trade secrets,
                  confidential business lists and records, listener/client
                  goodwill and the training provided during employment.
                  Necessarily, then, any relationship of Executive with another
                  broadcast entity in the markets enumerated above during this
                  non-compete period would involve the transfer of one or all
                  of these items to that entity. The

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                  Executive agrees that the provisions in these paragraphs of
                  Paragraph 8 are reasonably necessary for the protection of
                  the Company's business; that they are not unreasonably
                  restrictive of his(her) rights; and that (s)he feels that any
                  of these restrictions placed upon him(her) are not
                  prejudicial to the public interest.

         (5)      If the covenant in this Paragraph 8 is held to be
                  unenforceable in any jurisdiction because of the duration or
                  scope thereof, the court making such determination shall have
                  the power to reduce the duration and/or scope of the
                  provision or covenant, and the provision or covenant in its
                  reduced form shall be enforceable; provided, however, that
                  the determination of such court shall not affect the
                  enforceability of this Paragraph 8 in any other jurisdiction.

9.       To induce the Company to enter into this Agreement and to employ
         Executive Executive, Executive represents and warrants to the Company
         as of the date hereof and as of each date of payment of any
         compensation under the terms hereof as follows:

         (1)      The execution, delivery and performance of this Agreement by
                  Executive does not conflict with result in a breach of, or
                  constitute a default under any covenant not to compete or any
                  other agreement, instrument, or license, to which Executive
                  is a party or by which Executive is bound.

         (2)      Executive has not:

                  (1)      Been convicted of any felony;
                  (2)      Committed any criminal act with respect to
                           Executive's current or any prior employment
                           (including any criminal act involving a violation of
                           the Communication Act of 1934, as amended, or
                           regulations promulgated by the FCC), or
                  (3)      Committed any act that materially threatened to
                           result in suspension, revocation, or adverse
                           modification of any FCC license of any broadcast
                           station or which subjected any broadcast station to
                           fine or forfeiture.

         (3)      Executive is not dependent on alcohol or illegal drugs.
                  Executive recognizes that the Company shall have the right to
                  conduct random drug testing of its employees and that
                  Executive may be called upon in such a manner.

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10.      Any dispute regarding this Agreement shall be decided by arbitration
         by a single arbitrator in West Palm Beach, Florida, in accordance with
         the Expedited Arbitration Rules of the American Arbitration
         Association then obtaining unless the Parties mutually agree
         otherwise; and, provided further, that both Parties will be entitled
         to all rights of discovery in connection with such arbitration,
         including, without limitation, all discovery rights described in the
         Florida Rules of Civil Procedure. This undertaking to arbitrate shall
         be specifically enforceable. The decision rendered by the arbitrator
         will be final and judgment may be entered upon it in accordance with
         appropriate laws in any court having jurisdiction thereof. During any
         arbitration proceeding initiated by the Executive, the Company agrees,
         to the extent that it may legally do so, to continue the Executive in
         the Company's long-term disability, life and medical insurance plans.

11.      Both during and after the Term of Employment, neither Party will
         disclose the financial terms of this Agreement to persons not involved
         in the operations of the business of the Company, except as required
         by applicable law, regulation, the rules or regulations of a stock
         exchange or association on which securities of the Company or any
         parent company thereof are listed or legal process (including, without
         limitation, oral questions, interrogatories, requests for information
         or documents, subpoenas, civil investigative demands, orders,
         judgments or decrees). As to persons involved in the operations of the
         business of the Company, disclosure of such terms may be made only on
         a need-to-know basis. This restriction shall not apply to members of
         the Executive's immediate family nor to the Executive's professional
         advisers, lenders and investors, provided such persons agree to keep
         the financial terms confidential and not disclose them to third
         parties.

12.      Any waiver by either Party of a breach of any provision of this
         Agreement shall not operate as to be construed to be a waiver of any
         other breach of such provision of this Agreement. The failure of a
         Party to insist upon strict adherence to any term of this Agreement on
         one or more occasions shall not be considered a waiver or deprive that
         Party of the right thereafter to insist upon strict adherence to that
         term or any other term of this Agreement. Neither this Agreement nor
         any part of it may be waived, changed or terminated orally, and any
         amendment or modification must be in writing and signed by each of the
         Parties. Any waiver of any right of the Company hereunder or any
         amendment hereof shall require the approval of the

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         members of the Compensation Committee of the Board of Directors who
         are not employees of the Company or, if the Company does not have a
         Compensation Committee or the Compensation Committee does not have any
         members who are not employees of the Company, by the members of the
         Board of Directors who are not employees of the Company. Until such
         approval or waiver has been obtained, no such waiver or amendment
         shall be effective.

13.      The obligations and rights of the Executive under this Agreement shall
         inure to the benefit of and shall be binding upon the heirs and legal
         representatives of the Executive. Neither Party may assign this
         Agreement without the prior written consent of the other.

14.      This Agreement may be executed in any number of counterparts, each of
         which shall, when executed, be deemed to be an original and all of
         which shall be deemed to be one and the same instrument.

15.      No action taken pursuant to this Agreement, including, without
         limitation, any investigation by or on behalf of any party, shall be
         deemed to constitute a waiver by the party taking such action of
         compliance with any representations, warranties, covenants or
         agreements contained herein or made pursuant hereto.

16.      This Agreement will be governed and construed and enforced in
         accordance with the laws of the State of Florida.

17.      This Agreement contains the entire understanding of the Parties
         relating to the subject matter of this Agreement and supersedes all
         other prior written or oral agreements. The Executive acknowledges
         that, in entering into this Agreement, he does not rely on any
         statements or representations not contained in this Agreement.

18.      Any term or provision of this Agreement which is determined to be
         invalid or unenforceable in any jurisdiction shall, as to such
         jurisdiction, be ineffective to the extent of such invalidity or
         unenforceability without rendering invalid or unenforceable the
         remaining terms and provisions of this Agreement or affecting the
         validity or enforceability of any of the terms or provisions of this
         Agreement in any other jurisdiction.

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19.      Except as otherwise specifically provided in this Agreement, all
         notices and other communications required or permitted to be given
         under this Agreement shall be in writing and delivery thereof shall be
         deemed to have been made when such notice shall have been either (i)
         deposited in first class mail, postage prepaid, return receipt
         requested, or any comparable or superior postal or air courier service
         then in effect, or (ii) transmitted by hand delivery, telegram, telex,
         telecopier or facsimile transmission, to the party entitled to receive
         the same at the address indicated below or at such other address as
         such party shall have specified by written notice to the other party
         hereto given in accordance herewith:

              if to the Company:      Lowell W. Paxson
                                      Chairman
                                      Paxson Communications Corporation
                                      601 Clearwater Park Road
                                      West Palm Beach, Florida 33401-6233

              if to the Executive:    address below Executive's signature below

         IN WITNESS WHEREOF, this Agreement has been executed and delivered by
the parties as of the first date written above.

                                        Name: Anthony L. Morrison

                                        Address:
                                                -------------------------------

                                        PAXSON COMMUNICATIONS CORPORATION

                                        By:
                                           ------------------------------------
                                        Name:
                                             ----------------------------------
                                        Title:
                                              ---------------------------------

                                      13<PAGE>   1
                                                                   Exhibit 10.3

                              EMPLOYMENT AGREEMENT

           AGREEMENT by and among Maxxim Medical, Inc., a Texas corporation
(the "Company"), and Kenneth W. Davidson (the "Executive"), dated as of the
12th day of November, 1999.

           The Company has determined that it is in the best interests of the
Company to assure that the Company will have the continued dedication of the
Executive following the merger (the "Merger") of the Company and Fox Paine
Medic Acquisition Corporation, a Texas corporation ("Purchaser"), pursuant to
the Agreement and Plan of Merger, dated as of June 13, 1999 by and between
Purchaser and the Company (the "Merger Agreement") and to provide the Company,
as the surviving corporation after the Merger, with continuity of management
after the Merger. Therefore, in order to accomplish these objectives, the board
of directors of the Company has caused the Company to enter into this
Agreement.

           NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

           1. Effective Date. The "Effective Date" shall mean the "Effective
Time" of the Merger (as defined in the Merger Agreement).

           2. Employment Period. Subject to the consummation of the
transactions contemplated by the Merger Agreement, the Company hereby agrees to
continue to employ the Executive, and the Executive hereby agrees to continue
to be employed by the Company, subject to the terms and conditions of this
Agreement, for the period commencing on the Effective Date and ending on the
fifth anniversary thereof (the "Employment Period"); provided, however, that
commencing on the fifth anniversary of the Effective Date and on each annual
anniversary of such date (such fifth anniversary and each annual anniversary
thereof shall hereinafter be referred to as the "Renewal Date"), unless
previously terminated, the Employment Period shall be automatically extended so
as to terminate one year from the applicable Renewal Date, unless 90 days prior
to such Renewal Date the Company or the Executive shall terminate this
Agreement by giving notice to the other party that the Employment Period shall
not be so extended. Upon a "Change of Control" of the Company (as defined in
Annex I hereto), the Employment Period shall be the longer of (a) the actual
remaining Employment Period as of the date of the Change of Control and (b) 36
months.

           3. Terms of Employment. (a) Position and Duties. (i) During the
Employment Period, (A) the Executive shall serve the Company in the position
and with the duties, status and responsibilities of Chairman of the Board of
Directors of the Company (the "Board"), President and Chief Executive Officer
and (B) the Executive's services shall be performed in Pinellas County,
Florida.

              (ii)  During the Employment Period, and excluding any periods of
vacation and sick leave to which the Executive is entitled, the Executive
agrees to devote full attention and time during normal business hours to the
business and affairs of the Company and to use the Executive's reasonable best
efforts to perform such responsibilities in a professional manner; provided,
however that, pursuant to the Services Agreement by and among the

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Company, Maxxim Medical Group, a Texas corporation, Circon Holdings
Corporation, a Delaware corporation ("Circon Holdings"), and Circon
Corporation, a Delaware corporation ("Circon"), dated as of November 12, 1999
(the "Services Agreement"), the Executive will, during the Employment Period
and any extensions thereto in accordance with this Agreement, to the extent
requested by the Company, perform services for Circon and Circon Holdings,
which, to the extent so requested, shall be deemed part of the Executive's
duties with the Company (provided that the Executive shall be permitted not to
perform such requested services to the extent such services are inconsistent in
any material respect with the duties and status of the Executive hereunder and,
in such event, such duties shall not be deemed to be part of the Executive's
duties with the Company). It shall not be a violation of this Agreement for the
Executive to (A) serve on corporate, civic or charitable boards or committees,
(B) deliver lectures, fulfill speaking engagements or teach at educational
institutions and (C) manage personal investments, in each case, so long as such
activities do not materially interfere with the performance of the Executive's
responsibilities as an employee of the Company in accordance with this
Agreement. For purposes hereof, service on corporate boards pursuant to
appointments after the date hereof shall be subject to the prior approval of
the Board, which shall not be unreasonably withheld.

          (b) Compensation. (i) Base Salary. During the Employment Period, the
Executive shall receive an annual base salary of $350,000. The Annual Base
Salary shall be subject to increase (but not decrease) at the discretion of the
Compensation Committee of the Board (the "Compensation Committee") (the annual
base salary in effect from time to time, the "Annual Base Salary"). The Annual
Base Salary shall be payable in cash no less frequently than in equal monthly
installments.

              (ii)  Annual Bonus. For each fiscal year ending during the
Employment Period, the Executive shall be eligible to receive an annual bonus
(the "Annual Bonus"), based upon the terms and conditions of an annual bonus
program to be established by the Compensation Committee. Any such annual bonus
program shall provide that the Executive's annual bonus opportunity ("Target
Annual Bonus") shall be at least equal to 90% of the Executive's Annual Base
Salary, with the actual amount of the Annual Bonus determined based on actual
performance and in accordance with the terms of the annual bonus program.

              (iii) Special Bonus. Pursuant to the terms of the Special Bonus
Program, on the Effective Date, the Company shall pay the Executive a special
bonus in the aggregate amount of $1.2 million (the "Special Bonus").

              (iv)  Employee Benefit and Compensation Plans. During the
Employment Period, except as otherwise expressly provided herein, the Executive
shall be eligible to participate in all employee benefit plans, practices,
policies and programs of the Company on terms and conditions that are no less
favorable in the aggregate than the terms and conditions in effect under the
plans, practices, policies and programs of the Company at the time of the
execution of the Merger Agreement.

              (v)   Office and Support Staff. During the Employment Period, the
Executive shall be entitled to an office and secretarial support on at least
the same basis as and

                                      -2-
<PAGE>   3

consistent with the Company's practices, policies and programs as in effect at
the time of the execution of the Merger Agreement.

              (vi)  Perquisites. During the Employment Period, the Executive
shall be eligible to receive perquisites on at least the same basis as and
consistent with the Company's practices, policies and programs as in effect at
the time of the execution of the Merger Agreement.

              (vii) Vacation. During the Employment Period, the Executive shall
be entitled to paid vacation on at least the same basis as and consistent with
the Company's practices, policies and programs as in effect at the time of the
execution of the Merger Agreement.

           4. Termination of Employment. (a) Death or Disability. The
Executive's employment shall terminate automatically upon the Executive's death
during the Employment Period. If the Company determines in good faith that the
Disability of the Executive has occurred during the Employment Period (pursuant
to the definition of Disability set forth below), it may give to the Executive
written notice in accordance with Section 10(b) of this Agreement of its
intention to terminate the Executive's employment. In such event, the
Executive's employment with the Company shall terminate effective on the 30th
day after receipt of such notice by the Executive (the "Disability Effective
Date"), provided that, within the 30 days after such receipt, the Executive
shall not have returned to full-time performance of the Executive's duties. For
purposes of this Agreement, "Disability" shall mean the absence of the
Executive from the Executive's duties with the Company on a full-time basis for
90 consecutive days as a result of incapacity due to mental or physical illness
or injury.

          (b) Cause. The Company may terminate the Executive's employment
during the Employment Period for Cause. For purposes of this Agreement, "Cause"
shall mean:

              (i)   the continued failure of the Executive to perform
substantially the Executive's duties with the Company (other than any such
failure resulting from incapacity due to physical or mental illness or injury),
after a written demand for performance is delivered to the Executive by the
Board, which identifies the manner in which the Board believes that the
Executive has not substantially performed the Executive's duties; or

              (ii)  the willful engaging by the Executive in misconduct which is
materially and demonstrably injurious to the Company or one of its affiliates.

          (c) Good Reason. The Executive's employment may be terminated by the
Executive for Good Reason. For purposes of this Agreement, "Good Reason" shall
mean:

              (i)   a termination of the Executive's service in the position(s)
set forth in Section 3(a)(i)(A);

              (ii)  the assignment to the Executive of any duties inconsistent
in any material respect with the Executive's status with respect to the Company
as in effect on the Effective Date or a substantial and adverse change in the
nature or status of the Executive's responsibilities from those in effect
immediately prior to the Effective Date, excluding for these

                                      -3-
<PAGE>   4

purposes an isolated, insubstantial and inadvertent action not taken in bad
faith and which is remedied by the Company promptly after receipt of notice
thereof given by the Executive;

              (iii) a reduction in the Executive's Annual Base Salary;

              (iv)  a change in the Executive's work location other than as set
forth in Section 3(a)(i)(B) hereof;

              (v)   failure of the Company to comply with any material provision
of this Agreement, which is not cured within ten business days after a written
demand for compliance is delivered to the Company by the Executive specifically
identifying the manner in which the Executive believes that the Company has not
complied with the Agreement; or

              (vi)  any termination by the Company of the Executive's employment
not in accordance with the written notice provisions set forth in this
Agreement; or

              (vii) a Change of Control of the Company following the Effective
Date.

           Notwithstanding the foregoing, the assignment of services pursuant
to the Services Agreement in accordance with Section 3(a)(ii) shall not
constitute Good Reason hereunder.

           (d) Notice of Termination. Any termination by the Company for Cause,
or by the Executive for Good Reason, shall be communicated by Notice of
Termination to the other party hereto given in accordance with Section 10(b) of
this Agreement. For purposes of this Agreement, a "Notice of Termination" means
a written notice which (i) indicates the specific termination provision in this
Agreement relied upon, (ii) sets forth in reasonable detail the facts and
circumstances claimed to provide a basis for termination of the Executive's
employment under the provision so indicated and (iii) specifies the termination
date (which date, in the case of a termination for Good Reason, shall be not
more than 30 days after the giving of such notice). The failure by the
Executive or the Company to set forth in the Notice of Termination any fact or
circumstance which contributes to a showing of Good Reason or Cause shall not
waive any right of the Executive or the Company, respectively, hereunder or
preclude the Executive or the Company, respectively, from asserting such fact
or circumstance in enforcing the Executive's or the Company's rights hereunder.

           (e) Date of Termination. "Date of Termination" means (i) if the
Executive's employment is terminated by the Company for Cause, or by the
Executive for Good Reason, the date of receipt of the Notice of Termination by
the Company or the Executive, as the case may be, or the later date specified
therein, (ii) if the Executive's employment is terminated by the Company other
than for Cause, death or Disability, or the Executive resigns without Good
Reason, the Date of Termination shall be the date on which the Company or the
Executive notifies the Executive or the Company, respectively, of such
termination and (iii) if the Executive's employment is terminated by reason of
death or Disability, the Date of Termination shall be the date of death of the
Executive or the Disability Effective Date, as the case may be.

                                      -4-
<PAGE>   5

           5. Obligations of the Company upon Termination. (a) Good Reason;
Other Than for Cause, Death or Disability. If, during the Employment Period,
the Company shall terminate the Executive's employment other than for Cause,
death or Disability, or the Executive shall terminate the Executive's
employment for Good Reason:

              (i)   the Company shall pay to the Executive in a lump sum in cash
within 10 days after the Date of Termination the aggregate of the amounts set
forth in clauses A and B below:

              A. the sum of the Executive's Annual Base Salary through the Date
       of Termination to the extent not theretofore paid ("Accrued
       Obligations"); and

              B. the amount equal to the product of (1) three and (2) the sum
       of (x) the Executive's Annual Base Salary and (y) the Annual Bonus
       earned by the Executive in the completed fiscal year immediately
       preceding the Date of Termination; and

              (ii)  for the three-year period following the Date of Termination,
the Company shall continue to provide welfare benefits to the Executive on the
same basis as such benefits are provided to other employees of the Company from
time to time, but in any case, not less than those required by Section
3(b)(iv); provided, however, that during any period when the Executive is
eligible to receive such benefits under another employer-provided plan, the
benefits provided by the Company under this Section 5(a)(ii) may be made
secondary to those provided under such other plan; and

              (iii) for the three-year period following the Date of
Termination, the Executive shall continue to participate in the Company's
compensation plans (other than any equity-based plans) on the same basis as
such compensation plans are provided to other employees of the Company from
time to time, but in any case, not less than those required by Section
3(b)(iv), to the extent permitted by applicable law and the terms of such
plans; provided however, that, in the event the continued participation by the
Executive is prohibited by applicable law or by the terms of such plans, the
Company shall pay the Executive, within 30 days of the date from which
continued participation is determined to be prohibited, an amount in cash equal
to the value of such foregone participation, and, provided, further that in no
event shall amounts payable under this Section 5(a)(iii) be duplicative of any
amounts otherwise payable under this Agreement or otherwise; and

              (iv)  to the extent not theretofore paid or provided, the Company
shall timely pay or provide to the Executive any other amounts or benefits
required to be paid or provided or which the Executive is entitled to receive
under any plan, program, policy or practice (excluding any severance plan or
policy) of the Company as of the Date of Termination (such other amounts and
benefits shall be hereinafter referred to as the "Other Benefits").

          (b) Death. If the Executive's employment is terminated by reason of
the Executive's death during the Employment Period, this Agreement shall
terminate without further obligations to the Executive's legal representatives
under this Agreement, other than for payment of Accrued Obligations and the
timely payment or provision of Other Benefits and the Special

                                      -5-
<PAGE>   6

Bonus on the date(s) contemplated by Section 3(b)(iii). Accrued Obligations and
the Death Benefit (as defined below) shall be paid to the Executive's estate or
beneficiary, as applicable, in a lump sum in cash within 30 days of the Date of
Termination. For purposes of this Section 5(b), the term "Other Benefits,"
shall also include a death benefit equal to two times the sum of the
Executive's Annual Base Salary and Target Annual Bonus as in effect with
respect to the Executive on the date of the Executive's death (the "Death
Benefit"); provided, however, that to the extent the Executive's estate or
beneficiary, as applicable, is entitled to receive a death benefit in respect
of the Executive from any life insurance policy, plan or program provided by
and paid for by the Company, the Death Benefit shall be reduced by the amount
of such other benefits.

           (c) Disability. If the Executive's employment is terminated by
reason of the Executive's Disability during the Employment Period, this
Agreement shall terminate without further obligations to the Executive, other
than for payment of Accrued Obligations and the timely payment or provision of
Other Benefits and the Special Bonus on the date(s) contemplated by Section
3(b)(iii). Accrued Obligations shall be paid to the Executive in a lump sum in
cash within 30 days of the Date of Termination. The term "Other Benefits" for
purposes of this Section 5(c) shall also include, and the Executive (or his
legal representatives) shall be entitled to receive, commencing on the first
business day of the first month immediately following the Disability Effective
Date, monthly disability payments, each of which shall be equal to 1/24th of
the amount equal to two times the sum of the Executive's Annual Base Salary and
Target Annual Bonus as in effect with respect to the Executive on the date of
the Disability Effective Date (the "Disability Benefit"), for the shorter of
(i) the period of Disability and (ii) 24 months (the "Disability Period");
provided, however, that, to the extent the Executive receives disability
benefits from any disability insurance policy, plan or program in respect of
such 24-month period provided by and paid for by the Company, the Disability
Benefit shall be reduced by (or the Executive shall reimburse the Company for)
the amount of such other benefits. During the Disability Period, the Company
shall pay the monthly premiums associated with the provision of COBRA benefits,
provided that during the Disability Period, the Company maintains an excess
reinsurance policy on the same terms and conditions as in effect on the
Effective Date.

           (d) Cause; Other than for Good Reason. If the Executive's employment
shall be terminated for Cause or the Executive terminates employment without
Good Reason (other than due to death or Disability) during the Employment
Period, this Agreement shall terminate without further obligations to the
Executive other than the obligation to pay to the Executive the Accrued
Obligations and the Other Benefits.

           6. Arbitration. Subject to the provisions of Section 7 hereof, the
Company and the Executive agree that any disputes with respect to this
Agreement shall be subject to binding arbitration in New York, New York, in
accordance with the rules of the American Arbitration Association. The
proceedings and the results of such arbitration shall be treated as
confidential information subject to Section 7(a) hereof, except to the extent
disclosure of such information is required by law, and shall be final and
binding on the parties thereto. Each party agrees to pay for the costs of
arbitration and its own attorney's fees and expenses incurred as a result of
such arbitration. The dispute shall be submitted to a single arbitrator to be
mutually agreed upon by the parties. If the parties cannot agree on a single
arbitrator, each party shall

                                      -6-
<PAGE>   7

appoint one arbitrator who shall then jointly appoint a third arbitrator.
Judgment upon the arbitration award may be entered in any court having
jurisdiction.

           7. Confidential Information/Nonsolicitation/Noncompetition. (a) The
Executive acknowledges that the Executive will have knowledge of certain trade
secrets of the Company, including, without limitation, information concerning
its client and customer lists and information concerning proprietary
manufacturing formulations and processes. The Executive shall hold in a
fiduciary capacity for the benefit of the Company all secret or confidential
information, knowledge or data relating to the Company or any of its
affiliates, and their respective businesses, (including, without limitation,
any client names, client lists, trade secrets, research, proprietary
manufacturing formulations and processes, secret data, business methods,
operating procedures or programs), which shall have been obtained by the
Executive during the Executive's employment by the Company and which shall not
be or become public knowledge (other than by acts by the Executive or
representatives of the Executive in violation of this Agreement) (collectively,
the "Trade Secrets and Confidential Information"). After termination of the
Executive's employment with the Company, except as may be required by law, the
Executive shall not, without the prior written consent of the Board or as may
otherwise be required by law or legal process, communicate or divulge any such
information, knowledge or data to anyone other than the Company and those
designated by it or to an attorney retained by the Executive to provide legal
advice with respect to this Section 7. For the purposes of this Section 7(a),
information shall not be deemed to be publicly available merely because it is
embraced by general disclosures or because individual features or combinations
thereof are publicly available. All records, files, memoranda, reports,
customer lists, documents and the like that the Executive uses, prepares or
receives during the course of the Executive's employment shall remain the sole
property of the Company or one or more of its affiliates, as applicable, and
shall be turned over to the Company or its affiliates upon termination of the
Executive's employment.

           (b) In view of the fact that the services to be rendered by the
Executive on behalf of the Company are of a special, unique and extraordinary
character, while employed by the Company or any of its affiliates and for three
years after the Executive's termination of employment, the Executive will not,
without the written consent of the Board, directly or indirectly: (i) attempt
in any manner to persuade any client or customer of the Company or any of its
affiliates to cease to do business or to reduce the amount of business which
any client or customer has customarily done or contemplates doing with the
Company or any of its affiliates; (ii) solicit business of any client or
customer of the Company or any of its affiliates unless such solicitations are
rendered as an employee of the Company or such affiliates; or (iii) render any
services of the type usually rendered by the Company or an affiliate for any
such client or customer of the Company or any of its affiliates (unless such
services are rendered as an employee of the Company or such affiliates), in the
case of clauses (i), (ii) and (iii), whether or not the relationship between
the Company or such affiliate and such client or customer was originally
established, in whole or in part, through the Executive's efforts.

           (c) While employed by the Company or any of its affiliates and for
three years after the Executive's termination of employment, the Executive will
not, directly or indirectly, on behalf of the Executive or any other person,
solicit for employment by other than the Company or such affiliates any person
employed by the Company or its affiliates at the Effective Date, nor

                                      -7-
<PAGE>   8

will the Executive, directly or indirectly, on behalf of the Executive or any
other person, solicit for employment by other than the Company or such
affiliates any person employed at the time by the Company or its affiliates.
For purposes of Sections 7(b), (c), (d) and (e), "affiliate" should only
include affiliates of the Company for which the Executive performs or has
performed services.

           (d) While employed by the Company or any of its affiliates and for
three years after the Executive's termination of employment, the Executive will
not, directly or indirectly, for the Executive's own account or the account of
others, own, manage, operate, control or participate in the ownership,
management, operation or control of or be connected as a principal, employee,
officer, director, independent contractor, representative, stockholder,
financial backer, partner, advisor, manager, consultant or in any other
individual or representative capacity with any business which engages in any
business within any market area served by the Company or any of its affiliates
involving the development, manufacture, distribution or marketing of any
hospital or medical products of the type developed, manufactured, distributed
or marketed by the Company or its affiliates at any time within two years prior
to the termination of the Executive's employment (a "Competing Business").
Ownership for personal investment purposes only of less than 5% of the voting
stock of any publicly held Competing Business shall not constitute a violation
hereof.

           (e) The Executive acknowledges and agrees that: (i) the purposes of
the foregoing covenants, including without limitation the noncompetition
covenant of Section 7(d), are to protect the goodwill and Trade Secrets and
Confidential Information of the Company and its affiliates for whom the
Executive performs services under this Agreement, and to prevent the Executive
from interfering with the business of the Company and such affiliates as a
result of or following termination of the Executive's employment with the
Company; (ii) that the foregoing covenants, including without limitation the
noncompetition covenant of Section 7(d), are being given in part in
consideration for the consideration being received by the Executive as a result
of the transactions contemplated by the Merger Agreement; (iii) because of the
nature of the business in which the Company and its affiliates are engaged and
because of the nature of the Trade Secrets and Confidential Information to
which the Executive has access, it would be impractical and excessively
difficult to determine the actual damages of the Company and its affiliates in
the event the Executive breached any of the covenants of this Section 7; and
(iv) remedies at law (such as monetary damages) for any breach of the
Executive's obligations under this Section 7 would be inadequate. The Executive
therefore agrees and consents that if the Executive commits any breach of a
covenant under this Section 7 or threatens to commit any such breach, the
Company and its affiliates shall have the right (in addition to, and not in
lieu of, any other right or remedy that may be available to it) to temporary
and permanent injunctive relief from a court of competent jurisdiction, without
posting any bond or other security and without the necessity of proof of actual
damage. With respect to any provision of this Section 7 finally determined by a
court of competent jurisdiction to be unenforceable, the Executive, the Company
and its affiliates hereby agree that such court shall have jurisdiction to
reform this Agreement or any provision hereof so that it is enforceable to the
maximum extent permitted by law, and the parties agree to abide by such court's
determination. If any of the covenants of this Section 7 are determined to be
wholly or partially unenforceable in any jurisdiction, such determination shall
not be a bar to or in any way diminish the right of the Company or its
affiliates to enforce any such covenant in any other jurisdiction.

                                      -8-
<PAGE>   9

           (f) The provisions of Sections 7(b), (c), (d) and (e) shall remain
in full force and effect until the expiration of the period specified herein
notwithstanding the earlier termination of the Executive's employment
hereunder.

           8. Certain Additional Payments by the Company.

           (a) Anything in this Agreement to the contrary notwithstanding, in
the event it shall be determined that any payment or distribution by the
Company to or for the benefit of the Executive, whether pursuant to this
Agreement or otherwise (but determined without regard to any additional
payments required under this Section 8) (a "Payment"), would be subject to the
excise tax imposed by Section 4999 of the Internal Revenue Code of 1986, as
amended and the rules, regulations and interpretations thereunder (the "Code"),
or any interest or penalties are incurred by the Executive with respect to such
excise tax (such excise tax, together with any such interest and penalties, are
hereinafter collectively referred to as the "Excise Tax"), then the Executive
shall be entitled to receive an additional payment (a "Gross-Up Payment") in an
amount such that after payment by the Executive of all taxes (including any
interest or penalties imposed with respect to such taxes), including, without
limitation, any income taxes (and any interest and penalties imposed with
respect thereto) and Excise Tax imposed upon the Gross-Up Payment, the
Executive retains an amount of the Gross-Up Payment equal to the Excise Tax
imposed upon the Payments.

           (b) Subject to the provisions of Section 8(c), all determinations
required to be made under this Section 8, including whether and when a Gross-Up
Payment is required and the amount of such Gross-Up Payment and the assumptions
to be utilized in arriving at such determination, shall be made by Arthur
Andersen or such other "Big Five" public accounting firm reasonably acceptable
to the Executive as may be designated by the Board (the "Accounting Firm")
which shall provide detailed supporting calculations both to the Company and
the Executive within 30 business days of the receipt of notice from the
Executive that there has been a Payment, or such earlier time as is requested
by the Company. All fees and expenses of the Accounting Firm shall be borne
solely by the Company. Any Gross-Up Payment, as determined pursuant to this
Section 8, shall be paid by the Company to the Internal Revenue Service
directly on the later of (i) the due date for the payment of any Excise Tax,
and (ii) the receipt of the Accounting Firm's determination. Any determination
by the Accounting Firm shall be binding upon the Company and the Executive. As
a result of the uncertainty in the application of Section 4999 of the Code at
the time of the initial determination by the Accounting Firm hereunder, it is
possible that Gross-Up Payments which will not have been made by the Company
should have been made ("Underpayment"), consistent with the calculations
required to be made hereunder. In the event that the Company exhausts its
remedies pursuant to Section 8(c) and the Executive thereafter is required to
make a payment of any Excise Tax, the Accounting Firm shall determine the
amount of the Underpayment that has occurred and any such Underpayment shall be
promptly paid by the Company to or for the benefit of the Executive.

           (c) The Executive shall notify the Company in writing of any claim
by the Internal Revenue Service that, if successful, would require the payment
by the Company of the Gross-Up Payment or Underpayment. Such notification shall
be given as soon as practicable but no later than ten business days after the
Executive is informed in writing of such claim and shall apprise the Company of
the nature of such claim and the date on which such claim is requested

                                      -9-
<PAGE>   10

to be paid. The Executive shall not pay such claim prior to the expiration of
the 30-day period following the date on which it gives such notice to the
Company (or such shorter period ending on the date that any payment of taxes
with respect to such claim is due). If the Company notifies the Executive in
writing prior to the expiration of such period that it desires to contest such
claim, the Executive shall:

              (i)   give the Company any information reasonably requested by the
Company relating to such claim,

              (ii)  take such action in connection with contesting such claim as
the Company shall reasonably request in writing from time to time (provided the
Company may select an attorney to represent the Executive in connection with
such claim, which attorney shall be reasonably acceptable to the Executive);

              (iii) cooperate with the Company in good faith in order
effectively to contest such claim, and

              (iv)  permit the Company to participate in any proceedings
relating to such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest, including legal fees, and shall indemnify and hold the
Executive harmless for any Excise Tax or income tax (including interest and
penalties with respect thereto) imposed as a result of such representation and
payment of costs and expenses. Without limitation on the foregoing provisions
of this Section 8(c), the Company shall control all proceedings taken in
connection with such contest and, at its sole option, may pursue or forgo any
and all administrative appeals, proceedings, hearings and conferences with the
taxing authority in respect of such claim and may, at its sole option, either
direct the Executive to pay the tax claimed and sue for a refund or contest the
claim in any permissible manner, and the Executive agrees to prosecute such
contest to a determination before any administrative tribunal, in a court of
initial jurisdiction and in one or more appellate courts, as the Company shall
reasonably determine, and not to take any positions contrary to those taken by
the Company; provided, however, that if the Company directs the Executive to
pay such claim and sue for a refund, the Company shall advance the amount of
such payment to the Executive, on an interest-free basis and shall indemnify
and hold the Executive harmless for any Excise Tax or income tax (including
interest or penalties with respect thereto) imposed with respect to such
advance or with respect to any imputed income with respect to such advance; and
further provided that any extension of the statute of limitations relating to
payment of taxes for the taxable year of the Executive with respect to which
such contested amount is claimed to be due is limited solely to such contested
amount. Furthermore, the Company's control of the contest shall be limited to
issues with respect to which a Gross-Up Payment would be payable hereunder and
the Executive shall be entitled to control the proceedings, settle or contest,
as the case may be, any other issue raised by the Internal Revenue Service or
any other taxing authority.

          (d) If, after the receipt by the Executive of an amount advanced by
the Company pursuant to Section 8(c), the Executive becomes entitled to receive
any refund with

                                     -10-
<PAGE>   11

respect to such claim, the Executive shall promptly pay to the Company the
amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto). If, after the receipt by the Executive of an
amount advanced by the Company pursuant to Section 8(c), a determination is
made that the Executive shall not be entitled to any refund with respect to
such claim and the Company does not notify the Executive in writing of its
intent to contest such denial of refund prior to the expiration of 30 days
after such determination, then such advance shall be forgiven and shall not be
required to be repaid and the amount of such advance shall offset, to the
extent thereof, the amount of Gross-Up Payment required to be paid.

           9. Successors. (a) This Agreement is personal to the Executive and
without the prior written consent of the Company shall not be assignable by the
Executive otherwise than by will or the laws of descent and distribution. This
Agreement shall inure to the benefit of and be enforceable by the Executive's
legal representatives.

           (b) This Agreement shall inure to the benefit of and be binding upon
the Company and its successors and permitted assigns; provided, however, that
the Company may not assign in whole or in part its rights, obligations and
benefits under this Agreement except as contemplated by Section 9(c) hereof
without the prior written consent of the Executive.

           (c) The Company will require any successor (whether direct or
indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company, or any business
of the Company for which the Executive's services are principally performed, to
assume expressly and agree to perform this Agreement in the same manner and to
the same extent that the Company would be required to perform it if no such
succession had taken place. As used in this Agreement, "Company" shall mean the
Company as hereinbefore defined and any successor to its business and/or assets
as aforesaid which assumes and agrees to perform this Agreement by operation of
law, or otherwise. As used herein, the term "affiliate" shall mean any company
controlled by, controlling or under common control with the Company.

           10. General Provisions. (a) This Agreement shall be governed by and
construed in accordance with the laws of the State of New York, without
reference to principles of conflict of laws. The captions of this Agreement are
not part of the provisions hereof and shall have no force or effect. This
Agreement may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal
representatives.

           (b) All notices and other communications hereunder shall be in
writing and shall be given by hand delivery to the other party or by registered
or certified mail, return receipt requested, postage prepaid, addressed as
follows:

                                     -11-
<PAGE>   12

      If to the Executive:

                  Copy to: Skadden, Arps, Slate, Meagher & Flom LLP
                           919 Third Avenue
                           New York, NY 10022
                           Attention: Michael Gizang
                           Facsimile: (212) 735-2000

        If to the Company: Maxxim Medical, Inc.
                           10300 49th Street North
                           Clearwater, Florida 33762
                           Attention: Corporate Secretary
                           Facsimile: 727-561-2170

                  Copy to: Fox Paine & Company, LLC
                           950 Tower Lane, Suite 1950
                           Foster City, California 94404
                           Attention: Saul A. Fox
                           Facsimile: 650-525-1396

                  Copy to: Wachtell, Lipton, Rosen & Katz
                           51 West 52nd Street
                           New York, New York 10012
                           Attention: Mitchell S. Presser
                           Facsimile: 212-403-2000

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.

           (c) The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other
provision of this Agreement.

           (d) The Executive shall not be obligated to seek other employment or
take any other action by way of mitigation of the amounts payable to the
Executive under any of the provisions of this Agreement and, such amounts shall
not be reduced whether or not the Executive obtains other employment except as
provided in Sections 5(a)(ii), 5(b) and 5(c), in each case only to the extent
specifically set forth therein.

           (e) The parties agree to treat all amounts paid to the Executive
hereunder as compensation for services. Accordingly, the Company may withhold
from any amounts payable under this Agreement such Federal, state, local or
foreign taxes as shall be required to be withheld pursuant to any applicable
law or regulation.

           (f) On and after the Effective Date, this Agreement shall supersede
any other agreement, written or oral, between the Company or any of its
affiliates and Executive, including, without limitation, the Employment and the
Executive Continuity Agreements, dated as of November 1, 1997, as amended, and
August 31, 1998, respectively, and the Investor Participation Agreement, dated
as of June 13, 1999, as amended. This Agreement shall automatically terminate
and be of no force and effect if the Executive dies prior to the Effective
Date.

                                     -12-
<PAGE>   13

           (g) This Agreement may be executed in counterparts, which together
shall constitute one and the same original.

           (h) To the fullest extent permitted by law, the Company shall
indemnify the Executive (including the advancement of expenses) for any
judgments, fines, amounts paid in settlement and reasonable expenses, including
attorneys' fees, incurred by the Executive in connection with the defense of
any lawsuit or other claim by third parties to which he is made a party by
reason of being an officer, director or employee of the Company, any of its
subsidiaries or any of the Company's affiliates for whom the Executive performs
services under this Agreement. During the Employment Period and for at least
three (3) years thereafter, the Company shall maintain customary director and
officer liability insurance covering the Executive for acts and omissions prior
to and during the Employment Period.

                                     -13-
<PAGE>   14

           IN WITNESS WHEREOF, the Executive has hereunto set the Executive's
hand and, pursuant to the authorization from its Boards of Directors, the
Company has caused these presents to be executed in its name on its behalf, all
as of the day and year first above written.

                            /s/ Kenneth W. Davidson
                            -------------------------------------
                            Kenneth W. Davidson

                            MAXXIM MEDICAL, INC., a Texas corporation

                            /s/ Kenneth W. Davidson
                            -------------------------------------
                            By: Kenneth W. Davidson
                            Title: Chairman of the Board,
                            President and Chief Executive Officer

           Maxxim Medical, Inc., a Delaware corporation, shall be a party
hereto and a direct obligor of all payments and benefit obligations hereunder.

                            MAXXIM MEDICAL, INC., a Delaware corporation

                            /s/ Kenneth W. Davidson
                            -------------------------------------
                            By: Kenneth W. Davidson
                            Title: Chairman of the Board,
                            President and Chief Executive Officer

                                     -14-
<PAGE>   15

                                    ANNEX I

For purposes of this Agreement "Change of Control" shall mean: (i) the
acquisition by any "Person" or "group" (as such terms are used in Regulation
13D under the Securities Exchange Act of 1934, as amended), other than Fox
Paine & Company, LLC or any of its "affiliates" (as defined below) or any
"Person" or "group" that is a stockholder of the Company immediately after the
Effective Time of beneficial ownership of a majority or more of the Company's
outstanding voting securities; or (ii) any sale, lease, exchange or other
transfer in one transaction or a series of related transactions, other than a
transfer to an entity which is majority controlled by Fox Paine & Company, LLC
or any affiliate thereof, any of the "Person" or "group" that is a stockholder
of the Company immediately after the Effective Time or any entity with
substantially the same equity holders as the Company immediately prior to such
transfer, of all or substantially all of the assets of the Company or its
operating subsidiaries (taken together). For purposes of this Annex I,
"affiliate" of Fox Paine & Company, LLC shall mean a person or entity directly
or indirectly controlled by, controlling or under common control with Fox Paine
& Company, LLC and their equity holders.

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