Document:

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                                                                    EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

     This Employment Agreement (this "Agreement") is made effective as of the
1st day of September, 2000 (the "Effective Date") between Edge Technology Group,
Inc. (formerly known as Visual Edge Systems Inc.), a Delaware corporation (the
"Company"), and Pierre Koshakji, an individual ("Employee").

                                    RECITALS

     WHEREAS, the Company desires to secure the services and employment of
Employee on behalf of the Company, and Employee desires to enter into employment
with the Company, upon the terms and conditions hereinafter set forth.

     NOW, THEREFORE, in consideration of the mutual covenants and promises
contained herein, the parties hereto, each intending to be legally bound hereby,
agree as follows:

     1. EMPLOYMENT. The Company hereby employs Employee and Employee accepts
such employment for the Term (as defined below) specified in Section 3 below.
During the Term, Employee shall serve as the President of the Company,
performing such duties as shall be reasonably required of such an employee of
the Company, and shall have such other powers and perform such other additional
executive duties as may from time to time be assigned to him by the Board of
Directors of the Company (the "Board") or such other person or persons
designated by the Board, including, without limitation, the Chief Executive
Officer of the Company upon the hiring of a full time Chief Executive Officer,
which the Board anticipates occurring during the Term. Until the Board names a
permanent Chief Executive Officer, on an interim basis Employee shall carry the
title of Chief Executive Officer in addition to President. The Company
acknowledges that Employee's primary place of business shall be within the state
of Texas and Employee acknowledges that Employee shall be required to travel
throughout the United States and the remaining world as necessary to perform his
duties hereunder.

     2. PERFORMANCE. Employee will serve the Company faithfully and to the best
of his ability and will devote substantially all of his time, energy, experience
and talents during regular business hours and as otherwise reasonably necessary
to such employment, to the exclusion of all other business activities.

     3. EMPLOYMENT TERM. Except for earlier termination as provided in Section 6
hereof, Employee's employment under this Agreement shall be for a three (3) year
term commencing on the Effective Date and ending three (3) years thereafter. The
time during which Employee is employed by the Company shall be referred to
herein as the "Term."

     4. COMPENSATION.

          (a) SALARY. During the Term, the Company shall pay Employee a base
salary (the "Base Salary") in the amount of $100,000 per Fiscal Year (as defined
below), with such increases thereto as shall be determined in the sole
discretion of the Board of Directors of the Company or, at the Board of
Directors' discretion, the compensation committee of the Company.

EMPLOYMENT AGREEMENT (PIERRE  KOSHAKJI)
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The Base Salary shall be payable in accordance with the then applicable payroll
procedures of the Company and shall be subject to applicable withholding for
taxes. The first Fiscal Year of the Term shall commence on the Effective Date,
with each subsequent Fiscal Year commencing on the applicable anniversary date
of the Effective Date (each, a "Fiscal Year").

          (b) INITIAL FINANCING AND QUALIFYING TRANSACTIONS.

               (i) Commencing with the closing of the original private placement
     conducted by the Company in August 2000, if sources initiated exclusively
     by Employee, Media Trust, SA or their respective affiliates secure equity
     financing resulting in $3,000,000 in net proceeds to the Company (the
     "Initial Financing"), the Employee's Base Salary shall be increased to
     $150,000 per year, effective as of the closing date of such Initial
     Financing.

               (ii) Following the closing of the Initial Financing, in the event
     that the Company enters into financing transactions whereby the Company
     receives (A) an additional $2,000,000 in net proceeds from sources
     initiated exclusively by Employee, Media Trust, SA or their respective
     affiliates and (B) maintains a minimum market capitalization of at least
     $100,000,000 over the course of thirty (30) consecutive trading days
     (together, a "Qualifying Transaction"), Employee's Base Salary shall be
     increased to $175,000 per year, effective as of the date of achievement of
     such Qualifying Transaction.

          (c) INCENTIVE CASH COMPENSATION. For each Fiscal Year or portion
thereof during the Term, Employee shall be eligible for discretionary bonuses
payable by the Company on such terms and conditions, and subject to such
standards, as shall be determined from time to time in the sole discretion of
the Board of Directors of the Company or, at the Board of Directors' discretion,
the compensation committee of the Company.

          (d) STOCK OPTIONS AND OTHER NON-CASH INCENTIVE COMPENSATION.

               (i) Stock Options. Employee will be granted options to purchase
     300,000 shares of the Company's common stock (after giving effect to the 4
     for 1 reverse stock split contemplated by the Company on or about the date
     hereof) (the "Stock Options"), at an exercise price of $2.00 per share.

               (ii) Vesting. The Stock Options shall vest as follows:

                    100,000 shares on the first anniversary of the Effective
                    Date

                    100,000 shares on the second anniversary of the Effective
                    Date

                    100,000 shares on the third anniversary of the Effective
                    Date

               (iii) Stock Option Plans. The Stock Options shall be granted
     pursuant to the current stock option grant form and stock option plan of
     the Company and shall be subject to all terms and conditions thereof,
     copies of which are attached hereto as Exhibit A.

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          (e) MEDICAL AND DENTAL HEALTH AND OTHER BENEFITS. During the Term,
Employee shall be entitled to medical and dental health and other benefits in
accordance with the current procedures of the Company with respect to its
executive level employees.

          (f) VACATION; SICK LEAVE. During the Term, Employee shall be entitled
to up to three (3) weeks of vacation and shall be entitled to sick leave in
accordance with the current procedures of the Company with respect to its
executive level employees.

     5. EXPENSES. Employee shall be reimbursed by the Company for all reasonable
expenses incurred by him in connection with the performance of his duties
hereunder in accordance with policies established by the Board of Directors of
the Company from time to time and upon receipt of appropriate documentation.

     6. TERMINATION. The employment of Employee hereunder may be terminated
prior to the end of the Term, under the following circumstances:

          (a) DEATH OR DISABILITY. The Term of employment shall terminate upon
the death or Disability of Employee. For purposes of this Agreement,
"Disability" occurs if Employee is unable to perform his duties, pursuant to
this Agreement, on a full-time basis because of mental or physical incapacity,
including, without limitation, alcoholism or drug abuse, which requires a leave
of absence in excess of ninety (90) days during any Fiscal Year. In the event
Employee is a "Qualified Individual with a Disability," as such term is defined
in the Americans with Disabilities Act, the Company shall not terminate
Employee's employment hereunder if Employee is able to perform the essential
functions of Employee's job with reasonable accommodation from the Company.

          (b) WITH "CAUSE." For purposes of this Agreement, the Company shall
have "Cause" to terminate Employee's employment hereunder upon the occurrence of
any of the following: (i) embezzlement, theft or other misappropriation of any
property of the Company or any of its subsidiaries by Employee, (ii) gross or
willful misconduct by Employee resulting in substantial loss to the Company or
any of its subsidiaries or substantial damage to the reputation of the Company
or any of its subsidiaries, (iii) any act by Employee involving moral turpitude
that results in a conviction of, or a pleading nolo contendere to, a felony or
other crime involving moral turpitude, fraud or misrepresentation, (iv) willful
and continued failure or neglect by Employee to substantially perform his
assigned duties to the Company or any of its subsidiaries, (v) gross breach of
Employee's fiduciary obligations to the Company or any of its subsidiaries, (vi)
any chemical dependence which materially affects the performance of Employee's
duties and responsibilities to the Company or any of its subsidiaries, or (vii)
commission of a felony or a crime by Employee involving moral turpitude or the
commission of any other significant act by Employee involving dishonesty,
disloyalty or fraud with respect to the Company; provided, that in the case of
the misconduct set forth in clauses (iv) and (vi) above, such misconduct shall
continue for a period of five (5) days following written notice thereof by the
Company to Employee.

          (c) WITHOUT "CAUSE." Notwithstanding any provisions of this Agreement
to the contrary, the Company may terminate Employee's employment hereunder for
any reason other

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than those specified in the foregoing paragraphs (a) and (b), or for no reason,
at any time during the Term, effective upon delivery of two (2) day's notice by
the Company.

          (d) VOLUNTARY RESIGNATION. Employee may terminate his employment
hereunder at any time during the Term subject only to the requirement that
Employee shall provide the Company with a minimum of thirty (30) days prior
written notice (a "Voluntary Resignation").

          (e) WITH "GOOD REASON." Notwithstanding any provision of this
Agreement to the contrary, Employee may terminate his employment hereunder for
Good Reason, subject to the requirement that Employee shall provide the Company
with a minimum of thirty (30) days prior written notice. For purposes of this
Agreement, Employee shall have "Good Reason" to terminate his employment
hereunder upon the occurrence, without Employee's written consent, of any of the
following: (i) a failure by the Company to pay to Employee any amounts due under
this Agreement in accordance with the terms hereof, which failure is not cured
within thirty (30) days following receipt by the Company of written notice from
Employee of such failure; (ii) demotion of Employee from his position as
President of the Company; or (ii) any other material breach by the Company of
this Agreement that remains uncured for thirty (30) days after written notice
thereof by Employee to the Company.

     Employee hereby acknowledges that his position as Chief Executive Officer
shall be on an interim basis and that the hiring of a permanent Chief Executive
Officer by the Board (who shall be chosen in the Board's sole discretion) is
contemplated to occur during the Term. Employee further acknowledges that
neither the removal of the title Chief Executive Officer upon the hiring of a
permanent Chief Executive Officer nor the requirement that Employee report to a
new Chief Executive Officer shall be "Good Reason" for Employee to terminate his
employment.

          (f) TERMINATION AFTER CHANGE OF CONTROL. Employee may terminate
Employee's employment and this Agreement for Good Reason within ninety (90) days
of a Change of Control upon thirty (30) days' written notice to the Company. For
purposes of this Agreement, a "Change of Control" shall be deemed to exist upon
the occurrence of any of the following:

          (i)     any "person" as such term is used in Sections 13(d) and 14(d)
                  of the Securities Exchange Act of 1934 ("Act") (other than (a)
                  Permitted Assignees, (b) the Company, (c) any trustee or other
                  fiduciary holding securities under any employee benefit plan
                  of the Company, (d) any company owned, directly or indirectly,
                  by the stockholders of the Company in substantially the same
                  proportions as their ownership of Common Stock of the Company,
                  or (e) any entity holding non-participating shares of an
                  entity which is a stockholder of the Company or which owns or
                  controls, directly or indirectly, a stockholder of the
                  Company) is or becomes the "beneficial owner" (as defined in
                  Rule 13d-3 under the Act), directly or indirectly, of
                  securities of the Company representing fifty percent (50 %) or
                  more of the combined voting power of the Company's then
                  outstanding securities. "Permitted Assignees" shall mean the
                  holders of the equity

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                  securities (whether or not voting) of any shareholder of the
                  Company owning more than fifteen percent (15%) of the Company
                  on the date after the date of execution of this Agreement;

          (ii)    during any period of two (2) consecutive years, individuals
                  who at the beginning of such period constitute the Board, and
                  any new director (other than a director designated by a person
                  who has entered into an agreement with the Company to effect a
                  transaction described in clause (i), (iii), or (iv) of this
                  paragraph) whose election by the Board or nomination for
                  election by the Company's stockholders was approved by a vote
                  of at least one-half of the directors then still in office who
                  either were directors at the beginning of the two-year period
                  or whose election or nomination for election was previously so
                  approved, cease for any reason to constitute at least a
                  majority of the Board;

          (iii)   a merger or consolidation of the Company with any other
                  corporation, other than a merger or consolidation which would
                  result in the voting securities of the Company outstanding
                  immediately prior thereto continuing to represent (either by
                  remaining outstanding or by being converted into voting
                  securities of the surviving entity) more than fifty percent
                  (50%) of the combined voting power of the voting securities of
                  the Company or such surviving entity outstanding immediately
                  after such merger or consolidation; provided, however, that a
                  merger or consolidation effected to implement a
                  recapitalization of the Company (or similar transaction) in
                  which no person acquires more than fifty percent (50%) of the
                  combined voting power of the Company's then outstanding
                  securities shall not constitute a Change in Control of the
                  Company; and provided, further, a merger or consolidation in
                  which the Company is the surviving entity (other than as a
                  wholly owned subsidiary or another entity) and in which the
                  Board of the Company after giving effect to the merger or
                  consolidation is comprised of a majority of members who are
                  either (x) directors of the Company immediately preceding the
                  merger or consolidation, or (y) appointed to the Board of the
                  Company by the Company (or its Board) as an integral part of
                  such merger or consolidation, shall not constitute a Change in
                  Control of the Company; or

          (iv)    the stockholders of the Company approve a plan of complete
                  liquidation of the Company or the sale or disposition by the
                  Company of all or substantially all of the Company's assets
                  other than (x) the sale or disposition of all or substantially
                  all of the assets of the Company to a person or persons who
                  beneficially own, directly or indirectly, at least fifty
                  percent (50%) or more of the combined voting power of the
                  outstanding voting securities of the Company at the time of
                  the sale or (y) pursuant to a dividend in kind or spin-off
                  type transactions, directly or indirectly, of such assets to
                  the stockholders of the Company.

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     Notwithstanding the foregoing, a "Change of Control" shall not be deemed to
occur as a result of the closing of the conversion of the convertible
instruments as contemplated by the Agreement and Fourth Amendment to Bridge
Securities Purchase Agreement dated July 13, 2000 by and between the Company,
Infinity Investors Limited, Summit Capital Limited and Glacier Capital Limited.

     7. COMPENSATION UPON TERMINATION. Employee shall be entitled to the
following compensation from Company, in lieu of all other sums or benefits owed
or payable to Employee hereunder, upon the termination of Employee's employment
during the Term.

          (a) DEATH OR DISABILITY. In the event of the death or Disability of
Employee during the Term of this Agreement, except for amounts of Base Salary
and accrued vacation time earned by Employee as of the date of termination but
not yet paid by the Company, the Company shall have no obligation to make
payments to Employee or his estate, in accordance with the provisions of Section
4, for the periods after the date Employee's employment with the Company
terminates on account of death or Disability; provided, however, that the
Company agrees to use reasonable efforts to secure death and disability
insurance (an "Insurance Policy") for Employee. If the Company is unable to
secure such an Insurance Policy, then in the event of the death or disability of
Employee during the Term of this Agreement, Employee or his estate shall receive
a severance payment equal to six (6) months of Employee's Base Salary.

          (b) WITH CAUSE. In the event that Employee's employment is terminated
by the Company for Cause, except for the amounts of Base Salary and accrued
vacation time earned by Employee as of the date of termination but not yet paid
by the Company, the Company shall have no obligation to make payments to
Employee, in accordance with the provisions of Section 4, for the periods after
the date Employee's employment with the Company terminates for Cause.

          (c) WITHOUT CAUSE. In the event that Employee's employment is
terminated by the Company without Cause at any time during the Term, Employee
shall be entitled to receive (i) an amount equal to his Base Salary, then in
effect, for the shorter of the remainder of the Term or for one (1) year (the
"Severance Period"), such amount to be payable, at the Company's option, in a
lump sum on the date of termination, or ratably over the Severance Period, (ii)
the amounts of Base Salary and accrued vacation time earned by Employee as of
the date of termination but not yet paid by the Company pursuant to Section 4,
and (iii) the Stock Options shall be deemed fully vested as of the date of
termination.

          (d) VOLUNTARY RESIGNATION.

               (i) Without Good Reason. In the event that Employee's employment
     is terminated by Employee as a Voluntary Resignation pursuant to Section
     6(d) except for amounts of Base Salary earned by Employee as of the date of
     termination, but not yet paid by the Company pursuant to Section 4, the
     Company shall have no obligation to make payments to Employee, in
     accordance to the provisions of Section 4, for the periods after the date
     Employee's employment with the Company terminates on account of Voluntary
     Resignation.

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               (ii) With Good Reason. Notwithstanding any provision of this
     Agreement to the contrary, if Employee's employment with the Company
     terminates on account of Voluntary Resignation for Good Reason, Employee
     shall be entitled to receive (A) an amount equal to his Base Salary, then
     in effect, for the Severance Period, such amount to be payable, at the
     Company's option, in a lump sum on the date of termination, or ratably over
     the Severance Period, (B) the amounts of Base Salary and accrued vacation
     time earned by Employee as of the date of termination but not yet paid by
     the Company pursuant to Section 4 and (C) the Stock Options shall be deemed
     fully vested as of the date of Employee's Voluntary Resignation for Good
     Reason.

          (e) CHANGE OF CONTROL. If Employee's employment and this Agreement is
terminated as a result of a Change of Control, the Company will pay Employee (i)
his Base Salary in effect on the date of termination through the date of
termination, prorated for any partial payroll period, (ii) an amount equal to
his Base Salary, then in effect, for the Severance Period and (iii) 100% of the
Stock Options shall become fully vested on such date.

     8. CONFIDENTIAL INFORMATION - NON-DISCLOSURE.

          (a) RECOGNITION OF THE COMPANY'S RIGHTS: NONDISCLOSURE. Employee
understands that the Company possesses Proprietary Information (as defined
below), which the Company agrees to disclose to Employee for the purpose of
performing his duties under this Agreement.

               (i) "Proprietary Information" shall mean Information (as defined
     below) of value to the Company that is created, invented, developed,
     prepared, conceived, reduced to practice, made, suggested, discovered,
     received or learned by the Company including, for example, but not limited
     to, any trade secret, know-how, show-how and other proprietary information,
     irrespective of (A) whether in tangible or non-tangible form, (B) whether
     patentable or copyrighted or subject to confidentiality, (C) its media, (D)
     whether solely or jointly created, invented, developed, prepared,
     conceived, reduced to practice, made, suggested, discovered, received or
     learned by Employee and/or one or more other persons, or (E) whether
     created, invented, developed, prepared, conceived, reduced to practice,
     made, suggested, discovered, received or learned before, during or after
     the Term. Proprietary Information does not include Information (as defined
     below) that Employee develops entirely on his own time without using the
     Company's equipment, supplies, facilities, Proprietary Information or trade
     secret information except for such Information that either relates at the
     time of conception or reduction to practice of the Information to the
     Company's business, or actual or demonstrably anticipated research or
     development of the Company, or results from any work performed by Employee
     for the Company.

               (ii) "Information" shall mean any list, schematic, diagram,
     circuitry, technology, inventory, invention, idea, discovery, improvement,
     design, concept, technique, algorithm, formula, method, process,
     configuration, tooling, mechanism, manufacture, assembly, installation,
     model, apparatus, product, device, system, network, data, plan, library,
     work of authorship, file, media, record, report, copy, pictorial work,

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     graphic work, audiovisual work, hardware, firmware, computer interface
     (including for example but not limited to programming interfaces), computer
     language, computer protocol, computer software program or application
     (irrespective of whether source code or object code), flow chart,
     blueprint, drawing, photograph, chart, graph, notebook, book, computer
     disk, tape, storage media, printout, sound recording, note, memorandum,
     specification, paper, document (irrespective of whether printed,
     typewritten, handwritten or otherwise), information, material, account,
     business plan, business operation, business method, business practice,
     business strategy, research, development, marketing, revenue, sale,
     forecast, budget, finance, license, price, cost, salary, compensation,
     knowledge about suppliers, knowledge about available skills and knowledge
     about actual and/or prospective employees, clients and/or customers
     (including for example but not limited to their names, addresses and
     telephone numbers).

               (iii) "Non-party Information" shall mean Information discovered,
     received, or learned by the Company from non-parties with respect to which
     the Company is subject to a duty to maintain confidentiality or to use only
     for certain limited purposes.

          (b) EMPLOYEE COVENANT. In consideration of the Company's entering into
this Agreement, the Company's agreement to provide Employee with Proprietary
Information and specialized training, and the Company's agreement to provide the
Base Salary and other benefits to Employee, the receipt and sufficiency of which
are hereby acknowledged by Employee, Employee covenants as follows:

               (i) Non-Disclosure of Proprietary Information and Non-Party
     Information. At all times during the Term and thereafter in perpetuity,
     Employee shall hold all Proprietary Information and Non-party Information
     in strictest trust and confidence and shall neither disclose (to anyone
     other than the Company personnel having a need to know such Information in
     connection with their activities for the Company) nor use (except insofar
     as required by Employee's activities for the Company under this Agreement
     or in conducting the business of the Company) any Proprietary Information
     or any Non-party Information, unless: (A) Employee is expressly authorized
     in writing to the contrary by a duly authorized officer of the Company; (B)
     absent breach or violation of this Agreement, such Information is or
     becomes generally known to the public or available to the public, as
     evidenced by a printed publication or other equally conclusive evidence;
     (C) absent breach or violation of this Agreement, such Information is
     rightfully received absent any confidentiality obligation by Employee from
     a non-party outside of the Company, as evidenced by a dated and witnessed
     writing prepared in the normal course of business or other equally
     conclusive evidence; or (D) is required to be disclosed pursuant to a valid
     order by a court or other governmental body or otherwise required by law,
     provided that Employee informs the Company immediately upon Employee's
     receipt of notice, in any form, that disclosure pursuant to this section
     may be required so that the Company may oppose any compelled disclosure of
     its Proprietary Information. Employee further agrees not to disclose any
     Proprietary Information pursuant to this section unless and until he is
     informed that the Company will not oppose such disclosure or that the
     Company's attempt to oppose such disclosure has been denied.

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               (ii) Trade Secrets. All trade secrets of the Company will be
     entitled to all of the protection and benefits under all applicable federal
     and state trade secrets law. If any information that the Company deems to
     be a trade secret is found by a court of competent jurisdiction not to be a
     trade secret for purposes of this Agreement, such information will,
     nevertheless, be considered Proprietary Information for purposes of this
     Agreement. Employee hereby waives any requirement that the Company submit
     proof of the economic value of any trade secret or post a bond or other
     security.

          (c) ASSIGNMENT OF INVENTIONS.

               (i) Definitions.

                    (A) "Moral Rights" shall mean (I) any right of paternity or
          integrity, (II) any right to claim authorship or require authorship
          identification, (III) any right to object to distortion, mutilation or
          other modification of, or other derogatory action in relation to, a
          work of authorship, and (IV) any similar right existing under judicial
          or statutory law of the United States of America or any State thereof
          irrespective of whether such right is generally referred to as a
          "moral right."

                    (B) "Proprietary Rights" shall mean any patent, trade
          secret, confidentiality protection, know-how right, show-how right,
          mask work right, copyright (e.g., including but not limited to any
          Moral Right), and any other intellectual property protection and
          intangible interests and legal rights of exclusion, of any and all
          countries, including for example but not limited to (I) any person's
          publicity or privacy right, (II) any utility model or application
          therefor, (III) any industrial model or application therefor, (IV) any
          certificate of invention or application therefor, (V) any application
          for patent, including, for example, but not limited to, any
          provisional, divisional, reissue, reexamination or continuation
          application, (VI) any substitute, renewal or extension of any such
          application, and (VII) any right of priority resulting from the filing
          of any such application.

                    (C) "The Company Inventions" shall mean (I) any and all
          Proprietary Information that is created, invented, developed,
          prepared, conceived, reduced to practice, made, suggested, discovered,
          received or learned by Employee, either alone or jointly with one or
          more other persons, during the Term, and (II) any and all Proprietary
          Rights that may be available in such Proprietary Information or result
          therefrom.

               (ii) Employee's Covenant. Employee does hereby, without
     reservation, irrevocably:

                    (A) sell, assign, grant, transfer and convey to the Company
          (and the Company's successors and assigns): Employee's entire right,
          title and interest (present and future and throughout the world) in
          and to all the Company Inventions; provided, however, that, to the
          extent that any one or more the

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          Company Inventions includes a work of authorship created by Employee
          (solely, or jointly with others), each such work of authorship shall
          automatically be deemed to be created as a "work made for hire" (as
          that term is defined in the United States Copyright Act (17 U.S.C.
          Section 101)) that is owned solely by the Company (as between Employee
          and the Company); and

                    (B) acknowledge and agree that, as between the Company and
          Employee, (I) all the Company Inventions shall be the sole and
          exclusive property of the Company, its successors and assigns, and
          (II) the Company, its successors and assigns shall be the sole and
          exclusive owner of all the Company Inventions.

               (iii) Enforcement of Proprietary Rights.

                    (A) Employee will assist the Company in every proper way to
          obtain and from time to time enforce United States and foreign
          Proprietary Rights relating to Company Inventions in any and all
          countries. To that end, Employee will execute, verify and deliver such
          documents and perform such other acts (including appearances as a
          witness) as the Company may reasonably request for use in applying
          for, obtaining, perfecting, evidencing, sustaining and enforcing such
          Proprietary Rights and the assignment thereof. In addition, Employee
          will execute, verify and deliver assignments of such Proprietary
          Rights to the Company or its designee. Employee's obligation to assist
          the Company with respect to Proprietary Rights relating to such
          Company Inventions in any and all countries shall continue beyond the
          Term, but the Company shall compensate Employee at a reasonable rate
          after his termination for the time actually spent by him at the
          Company's request on such assistance which occurs after the end of the
          Term.

                    (B) In the event the Company is unable for any reason, after
          reasonable effort, to secure Employee's signature on any document
          needed in connection with the actions specified in the preceding
          paragraph, Employee hereby irrevocably designates and appoints the
          Company and its duly authorized officers and agents as his agent and
          attorney in fact, to act for and on his behalf to execute, verify and
          file any such documents and to do all other lawfully permitted acts to
          further the purposes of the preceding paragraph thereon with the same
          legal force and effect as if executed by Employee. Employee hereby
          waives and quitclaims to the Company any and all claims, of any nature
          whatsoever, that Employee now or may hereafter have for infringement
          of any Proprietary Rights assigned hereunder to the Company.

          (d) REFERENCES TO COMPANY. All references to the Company set forth in
this Section 8 shall be deemed to include all subsidiaries or other entities
that are controlled by, or under common control with, the Company.

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     9. NON-COMPETITION AND NON-INTERFERENCE.

          (a) COVENANT OF EMPLOYEE. In consideration of the Company's entering
into this Agreement, the Company's agreement to provide Employee with
Proprietary Information and specialized training, and the Company's agreement to
provide the Base Salary and other benefits to Employee, the receipt and
sufficiency of which are hereby acknowledged by Employee, Employee covenants as
follows:

               (i) Non-Competition While Employed. While Employee is an employee
     of the Company, in the Restricted Area (as defined below) Employee will
     not, directly or indirectly, participate in the ownership, management,
     operation, financing or control of, or be employed by or consult for or
     otherwise render services to, any person, corporation, firm or other entity
     that is a Competing Enterprise (as defined below) nor shall Employee engage
     in any such other activities that conflict with Employee's obligations to
     the Company.

               (ii) Non-Competition After Employment. For a period commencing
     form the end of Employee's employment with the Company and continuing for a
     period of twelve (12) months after the date that Employee ceases receiving
     compensation under Section 7 of this Agreement, Employee will not, directly
     or indirectly participate in the ownership, management, operation,
     financing or control of, or be employed by or consult for or otherwise
     render services to, any person, corporation, firm or other entity that is a
     Competing Enterprise in the Restricted Area.

               (iii) The "Restricted Area" means all areas of the world in which
     the Company provides products, goods or services, determined at all times
     throughout the Term. A "Competing Enterprise" means any person,
     corporation, firm or other entity that provides products, goods or services
     similar to, or competitive with, directly or indirectly, the products,
     goods or services provided by the Company, determined at all times
     throughout the Term. Notwithstanding the foregoing, Employee is permitted
     to own up to five percent (5%) of any class of securities of any
     corporation that is traded on a national securities exchange or through
     Nasdaq.

               (iv) Non-solicitation. During the Term and for a period of
     twenty-four (24) months thereafter, Employee shall not, either for himself
     or for any other person, firm, corporation, or other entity, directly or
     indirectly, or by action in concert with others:

                    (A) Individually or on behalf of any other person or entity,
          directly or indirectly, solicit or encourage any employee or
          contractor of the Company (with the exception of his personal
          assistant) to terminate his or her employment or engagement with the
          Company or hire or solicit the employment services of any employee of
          the Company unless such employee's employment has been terminated by
          the Company. This provision shall not preclude Employee from
          responding to or talking with such employee or contractor, provided
          Employee does not attempt to solicit or encourage Employee or
          contractor to terminate his or her employment or engagement with the
          Company.

                                       11
<PAGE>   12

                    (B) Take away or attempt to take away, or solicit or attempt
          to solicit, any existing or Potential Customer, as defined below, of
          the Company (whether or not such customer is actually a customer of
          the Company as of the date hereof, including without limitation any
          customer solicited by Employee or which became known by Employee prior
          to the date hereof) with the purpose of obtaining such person as an
          employee or customer for a business competitive with the Company's
          business. This provision shall not preclude Employee from responding
          to or talking with such Potential Customer, provided Employee does not
          attempt to take away, or solicit or attempt to solicit the Potential
          Customer for, a business competitive with the Company's business.

                    (C) For purposes of this Section, "Potential Customer" means
          any person, corporation, firm or other entity actually solicited by
          the Company at any time during the Term.

               (v) Organizing Competitive Business. Without limiting any of the
     other provisions contained in this Section 9, during the Term, Employee
     shall not undertake planning for or organization of any business activity
     competitive with the business of the Company, or conspire with agents,
     employees, consultants or other representatives of the Company for the
     purpose of organizing any such competitive business activity.

          (b) REFERENCES TO COMPANY. All references to the Company set forth in
this Section 9 shall be deemed to include all subsidiaries or other entities
that are controlled by, or under common control with, the Company.

     10. MEDIATION. In the event a dispute arises under this Agreement, the
parties agree, based upon good and valuable consideration, the sufficiency of
which is hereby acknowledged, to mediate in Dallas, Texas, any and all disputes
prior to the filing of any cause of action in state or Federal court. The
mediator shall be chosen by the presiding judge of the Dallas County Civil
Judicial Courts, and the parties agree to use commercially reasonable efforts to
resolve their issues. Costs for mediation shall be borne by the non-prevailing
party.

     11. NOTICE. Any notices required or permitted hereunder shall be in writing
and shall be deemed to have been given when personally delivered or when mailed,
certified or registered mail, postage prepaid, to the following addresses:

         If to Employee:

         Pierre Koshakji
         4515 Laren Lane
         Dallas, Texas 75244

                                       12
<PAGE>   13

         If to the Company:

         Edge Technology Group, Inc.
         901 Yamato Road
         Suite 175
         Boca Raton, Florida 33431

     12. GENERAL.

          (a) CONSTRUCTION AND SEVERABILITY. If any provision of this Agreement
shall be held invalid, illegal or unenforceable in any jurisdiction, the
validity, legality and enforceability of the remaining provisions contained
herein shall not in any way be affected or impaired, and the parties undertake
to implement all efforts that are necessary, desirable and sufficient to amend,
supplement or substitute all and any such invalid, illegal or unenforceable
provisions with enforceable and valid provisions that would produce as nearly as
may be possible the result previously intended by the parties without
renegotiation of any material terms and conditions stipulated therein.

          (b) ASSIGNABILITY. Employee may not assign his interest in or delegate
his duties under this Agreement. Notwithstanding anything else in this Agreement
to the contrary, the Company may assign this Agreement to and all rights
hereunder shall inure to the benefit of any person, firm or corporation
succeeding to all or substantially all of the business or assets of the Company
by purchase, merger or consolidation.

          (c) GOVERNING LAW. This Agreement shall be governed in all respects,
including as to validity, interpretation, construction, performance and effect,
by the laws of the State of Texas applicable to contracts executed and is to be
performed entirely within said State. Venue shall be exclusively in Dallas
County, Texas.

          (d) ATTORNEYS FEES. All legal fees and costs incurred in connection
with the resolution of any dispute or controversy under or in connection with
this Agreement shall be borne by the non-prevailing party.

          (e) BINDING EFFECT. This Agreement is for the employment of Employee,
personally, and for the services to be rendered by him, which must be rendered
by him and no other person. This Agreement shall be binding upon and inure to
the benefit of the Company and its successors and assigns.

          (f) ENTIRE AGREEMENT; MODIFICATION. This Agreement of the parties
hereto with respect to the subject matter hereof and may not be modified or
amended in any way except in a written instrument signed by the parties hereto.

          (g) DURATION. Notwithstanding the term of employment hereunder, this
Agreement shall continue for so long as any obligations remain under this
Agreement.

          (h) SURVIVAL. The covenants set forth in Sections 6, 8 and 9 of this
Agreement shall survive and shall continue to be binding upon Employee
notwithstanding the termination of

                                       13
<PAGE>   14

this Agreement for any reason whatsoever. The covenants set forth in Sections 6,
8 and 9 of this Agreement shall be deemed and construed as separate agreements
independent of any other provision of this Agreement. The existence of any claim
or cause of action by Employee against Company, whether predicated on this
Agreement or otherwise, shall not constitute a defense to the enforcement by
Company of any or all covenants. It is expressly agreed that the remedy at law
for the breach or any such covenant is inadequate and that injunctive relief
shall be available to prevent the breach or any threatened breach thereof.

                            (signature page follows)

                                       14
<PAGE>   15

     IN WITNESS WHEREOF, the parties hereto, intending to be legally bound, have
hereunto executed this Agreement the day and year first written above.

                                            EDGE TECHNOLOGY GROUP, INC.

                                            By:    /s/ Thomas Peters
                                               ---------------------------------
                                            Name:  Thomas Peters
                                                 -------------------------------
                                            Title: Executive Vice President
                                                  ------------------------------

                                            EMPLOYEE

                                            /s/ Pierre Koshakji
                                            ------------------------------------
                                            PIERRE KOSHAKJI

                                       15
<PAGE>   16

                                    EXHIBIT A

             [ATTACH STOCK OPTION GRANT FORM AND STOCK OPTION PLAN]

FORM OF EMPLOYMENT AGREEMENT - EXHIBIT A<PAGE>   1
                                                                    EXHIBIT 10.1

                                     FORM OF
                       PLAN AND AGREEMENT OF DISTRIBUTION

         THIS PLAN AND AGREEMENT OF DISTRIBUTION (the "Agreement") is made as of
the _____ day of __________, 2000, between Thermo Electron Corporation, a
Delaware corporation ("Thermo Electron"), and Thermo Biomedical Inc., a Delaware
corporation ("Thermo Biomedical").

                                    RECITALS

         WHEREAS, Thermo Electron is the holder of __________ shares of Common
Stock, $.01 par value per share, of Thermo Biomedical ("Thermo Biomedical Common
Stock"), comprising 100% of the issued and outstanding shares of Thermo
Biomedical Common Stock; and

         WHEREAS, Thermo Electron has contributed certain technology and certain
assets to Thermo Biomedical and intends to make other arrangements to establish
Thermo Biomedical as a separate enterprise for the purpose of engaging in the
design, manufacture and sale of medical devices and instruments in the fields of
respiratory care, neuro care and specialty medical products; and

         WHEREAS, it is the intention of Thermo Electron to distribute
approximately __% of the issued and outstanding shares of Thermo Biomedical
Common Stock held by Thermo Electron to the stockholders of Thermo Electron (the
"Distribution"); and

         WHEREAS, Thermo Electron and Thermo Biomedical have determined that it
is necessary and desirable to set forth the principal corporate transactions
required to effect the Distribution and to set forth other agreements that will
govern certain other matters following such Distribution.

         NOW, THEREFORE, in consideration of the mutual covenants and agreements
made herein, the parties hereto agree as follows:

                                    ARTICLE I

                                   DEFINITIONS

         1.1 GENERAL. As used in this Agreement and the Exhibits hereto, the

                                       1
<PAGE>   2

following terms shall have the following meanings:

                  "Action" means any action, claim, suit, litigation,
         arbitration, inquiry, subpoena, discovery request, proceeding or
         investigation by or before any court or grand jury, any governmental or
         other regulatory or administrative agency or commission or any
         arbitration tribunal.

                  "Affiliate" means, with respect to any specified person, a
         person that, directly or indirectly, through one or more
         intermediaries, controls, or is controlled by, or is under common
         control with, such specified person; provided, however, that Thermo
         Electron (and its subsidiaries) shall not be deemed to be Affiliates of
         Thermo Biomedical (and its subsidiaries), and vice versa, for purposes
         of this Agreement.

                  "Agent" means _____________________, the distribution agent
         appointed by Thermo Electron to distribute the shares of Thermo
         Biomedical Common Stock in connection with the Distribution.

                  "Ancillary Agreements" means all of the agreements,
         instruments, understandings, assignments or other arrangements entered
         into in connection with the transactions contemplated hereby,
         including, without limitation, the Tax Matters Agreement, the Employee
         Benefits Agreement and the Transition Services Agreement.

                  "Code" means the Internal Revenue Code of 1986, as amended,
         together with the rules and regulations promulgated thereunder.

                  "Commission" means the Securities and Exchange Commission.

                  "Distribution" has the meaning ascribed to it in the Recitals.

                  "Distribution Date" means the date of effecting the
         Distribution, as determined by the Thermo Electron Board.

                  "Distribution Record Date" means the date determined by the
         Thermo Electron Board as of which the holders of Thermo Electron Common
         Stock and their respective stock holdings shall be determined for
         purposes of distributing Thermo Biomedical Common Stock to such Thermo
         Electron stockholders.

                  "Employee Benefits Agreement" means an employee benefits
         agreement between Thermo Electron and Thermo Biomedical substantially
         in the form attached hereto as Exhibit A, with such changes as may be
         mutually satisfactory to Thermo Electron and Thermo

                                       2
<PAGE>   3

         Biomedical.

                  "Exchange Act" means the Securities Exchange Act of 1934, as
         amended, together with the rules and regulations promulgated
         thereunder.

                  "Form 10" means the Registration Statement on Form 10 to be
         filed by Thermo Biomedical with the Commission to effect the
         registration of the Thermo Biomedical Common Stock pursuant to the
         Exchange Act.

                  "Group" means the Thermo Electron Group or the Thermo
         Biomedical Group.

                  "Indemnifiable Losses" means all losses, Liabilities, damages,
         claims, demands, judgments or settlements of any nature or kind, known
         or unknown, fixed, accrued, absolute or contingent, liquidated or
         unliquidated, including all reasonable costs and expenses (legal,
         accounting or otherwise as such costs are incurred) relating thereto,
         suffered by an Indemnitee, including any reasonable costs or expenses
         of enforcing any indemnity hereunder.

                  "Indemnifying Party" means a Person who or which is obligated
         under this Agreement to provide indemnification.

                  "Indemnitee" means a Person who or which may seek
         indemnification under this Agreement.

                  "Information Statement" means the Information Statement,
         constituting a part of the Form 10, in the form to be distributed to
         the holders of Thermo Electron Common Stock in connection with the
         Distribution, and as it may be amended or supplemented subsequent to
         such dissemination.

                  "Liabilities" means any and all debts, liabilities and
         obligations, absolute or contingent, mature or unmature, liquidated or
         unliquidated, accrued or unaccrued, known or unknown, whenever arising
         (unless otherwise specified in this Agreement), and whether or not the
         same would properly be reflected on a balance sheet, including all
         costs and expenses relating thereto, and those debts, liabilities and
         obligations arising under any law, rule, regulation, Action, threatened
         Action, order or consent decree of any governmental entity or any award
         of any arbitrator of any kind, and those arising under any contract,
         commitment or undertaking.

                                       3
<PAGE>   4

                   "Person" means an individual, a partnership, a joint venture,
         a corporation, a limited liability company, a trust, an unincorporated
         organization or a government or any department or agency thereof.

                  "Private Letter Ruling Request" means Thermo Electron's
         Request for Rulings Filed Under Section 355 of the Code dated April 7,
         2000 filed with the Internal Revenue Service in connection with the
         Distribution, as such request may be amended prior to the Distribution
         Date.

                  "Representative" means, with respect to any Person, any of
         such Person's directors, officers, employees, agents, consultants,
         advisors, accountants, attorneys and representatives.

                  "Securities Act" means the Securities Act of 1933, as amended,
         together with the rules and regulations promulgated thereunder.

                  "Subsidiary" means, with respect to any specified Person, any
         corporation or other legal entity of which such Person or any of its
         Subsidiaries controls or owns, directly or indirectly, more than 50% of
         the stock or other equity interest entitled to vote on the election of
         members to the board of directors or similar governing body; provided,
         however, that for purposes of this Agreement, Thermo Biomedical and the
         Thermo Biomedical Subsidiaries shall not be deemed to be Subsidiaries
         of Thermo Electron or any of the Thermo Electron Subsidiaries.

                   "Tax Matters Agreement" means the Tax Matters Agreement
         between Thermo Electron and Thermo Biomedical substantially in the form
         attached hereto as Exhibit B, with such changes as may be mutually
         satisfactory to Thermo Electron and Thermo Biomedical; such Tax Matters
         Agreement providing for, among other things, the allocation of certain
         liabilities with respect to federal, state and local income taxes and
         the procedures for filing returns with respect to such taxes.

                  "Thermo Biomedical Assets" means all of the assets owned by
         any member of the Thermo Biomedical Group immediately prior to the
         Distribution Date, excluding items to be retained by any member of the
         Thermo Electron Group pursuant to the Ancillary Agreements.

                  "Thermo Biomedical Board" means the Board of Directors of
         Thermo Biomedical.

                  "Thermo Biomedical Business" means all of the businesses and
         operations conducted on or after the Distribution Date by any member of

                                       4
<PAGE>   5

         the Thermo Biomedical Group, whether such businesses and operations
         were conducted prior to the Distribution Date by such member of the
         Thermo Biomedical Group or by a predecessor, including Thermo Electron.

                  "Thermo Biomedical Common Stock" has the meaning ascribed to
         it in the Recitals.

                  "Thermo Biomedical Group" means Thermo Biomedical and the
         Thermo Biomedical Subsidiaries.

                  "Thermo Biomedical Indemnitees" means Thermo Biomedical, each
         Affiliate of Thermo Biomedical and each of their respective
         Representatives and each of the heirs, executors, successors and
         assigns of any of the foregoing.

                  "Thermo Biomedical Subsidiary" means all Subsidiaries of
         Thermo Biomedical.

                  "Thermo Electron Board" means the Board of Directors of Thermo
         Electron.

                  "Thermo Electron Business" means all of the businesses and
         operations conducted at any time, whether prior to, on or after the
         Distribution Date, by any member of the Thermo Electron Group
         (including Thermo Fibertek Inc.), other than the Thermo Biomedical
         Business.

                  "Thermo Electron Common Stock" means the Common Stock, $1.00
         par value per share, of Thermo Electron.

                  "Thermo Electron Group" means Thermo Electron and the Thermo
         Electron Subsidiaries.

                  "Thermo Electron Indemnitees" means Thermo Electron, each
         Affiliate of Thermo Electron (including Thermo Fibertek Inc. and its
         subsidiaries) and each of their respective Representatives and each of
         the heirs, executors, successors and assigns of any of the foregoing.

                  "Thermo Electron Subsidiaries" means all Subsidiaries of
         Thermo Electron, other than Thermo Biomedical and the Thermo Biomedical
         Subsidiaries.

                  "Thermo Electron Trademarks" means the Thermo Biomedical Inc.

                                       5
<PAGE>   6

         name and logo and related tradenames and marks used in the Thermo
         Biomedical Business as of the Distribution Date, including, without
         limitation, the Thermedics Polymer Products name and logo.

                   "Third-Party Claim" means any claim, suit, arbitration,
         injury, proceeding or investigation by or before any court, any
         governmental or other regulatory or administrative agency or commission
         or any arbitration tribunal asserted by a Person who or which is
         neither a party hereto nor an Affiliate of a party hereto.

                  "Transition Services Agreement" means the Transition Services
         Agreement between Thermo Electron and Thermo Biomedical substantially
         in the form attached hereto as Exhibit C, with such changes as may be
         mutually satisfactory to Thermo Electron and Thermo Biomedical; such
         Transition Services Agreement providing for Thermo Electron's provision
         to Thermo Biomedical of various administrative services, including
         certain legal advice and services, employee benefit administration, tax
         advice and preparation of tax returns and certain financial and other
         services.

                                   ARTICLE II

                        ACKNOWLEDGMENT OF MATERIAL FACTS

         2.1      ORGANIZATION. Thermo Electron and Thermo Biomedical
                  acknowledge that each is duly organized, validly existing and
                  in good standing under the laws of the State of Delaware, with
                  requisite corporate power to own their respective properties
                  and assets and to carry on their respective businesses as
                  presently conducted or contemplated. Thermo Electron is the
                  owner of all three thousand (3,000) of the issued and
                  outstanding shares of Thermo Biomedical Common Stock.

                                   ARTICLE III

                               PRELIMINARY ACTION

         3.1      COOPERATION PRIOR TO THE DISTRIBUTION.

                  (a) Ancillary Agreements. Thermo Electron and Thermo

                                       6
<PAGE>   7

Biomedical shall use their respective reasonable efforts to cause, on or before
the Distribution Date, the execution and delivery by Thermo Electron and Thermo
Biomedical, or their respective Affiliates, of the Ancillary Agreements and any
other agreements, instruments or other documents deemed necessary or desirable
by the applicable parties to establish and govern their post-Distribution
relationships.

                  (b) Form 10. Thermo Electron and Thermo Biomedical have
prepared, and Thermo Biomedical has filed with the Commission, the Form 10,
which includes the Information Statement, setting forth appropriate disclosure
concerning Thermo Biomedical, the Distribution and any other appropriate matters
required to be stated therein. Thermo Electron and Thermo Biomedical shall use
their respective reasonable efforts to cause the Form 10 to become effective
under the Exchange Act as promptly as reasonably practicable, and thereafter
Thermo Electron or its agent shall promptly mail the Information Statement to
all of the appropriate holders of Thermo Electron Common Stock.

                  (c) Listing. Thermo Electron and Thermo Biomedical shall
prepare, and Thermo Biomedical shall file and pursue, an application to effect
the listing of the Thermo Biomedical Common Stock on the American Stock
Exchange.

                  (d) Blue Sky. Thermo Electron and Thermo Biomedical shall use
reasonable efforts to take all such actions as may be necessary or appropriate
under state securities and blue sky laws in connection with the transactions
contemplated by this Agreement.

                  (e) Adjustment to Thermo Biomedical Common Stock. Thermo
Electron and Thermo Biomedical shall by means of a reclassification, stock split
or stock distribution or other means cause the number of outstanding shares of
Thermo Biomedical Common Stock immediately prior to the Distribution to equal
________.

                  (f) Registration of Employee Benefit Plans. Thermo Electron
and Thermo Biomedical shall cooperate in preparing, filing with the Commission
under the Securities Act and causing to become effective any registration
statements or amendments thereto that are appropriate to reflect the
establishment or existence of or amendments to any employee benefit plan
contemplated by the Employee Benefits Agreement.

         3.2 CONSENTS. Each party hereto understands and agrees that no party
hereto is, in this Agreement or in any other agreement or document contemplated
by this Agreement or otherwise, representing or warranting in any way that the
obtaining of any consents or approvals, the execution and delivery

                                       7
<PAGE>   8

of any agreements or the making of any filings or applications contemplated by
this Agreement will satisfy the provisions of any or all applicable agreements
or the requirements of any or all applicable laws or judgments except as
expressly represented, warranted or covenanted herein or in the Ancillary
Agreements. Notwithstanding the foregoing, the parties shall use reasonable
efforts to obtain all consents and approvals, to enter into all agreements and
to make all filings and applications which may be required for the consummation
of the transactions contemplated by this Agreement, including, without
limitation, all applicable regulatory filings or consents under federal or state
laws and all necessary consents, approvals, agreements, filings and
applications.

                                   ARTICLE IV

                                THE DISTRIBUTION

         4.1      THE DISTRIBUTION.

                  (a) Prior to the Distribution Date but after the adjustment to
the Thermo Biomedical Common Stock contemplated by Section 3.1(e), Thermo
Electron shall deliver to Thermo Biomedical the certificates for _________
shares of Thermo Biomedical Common Stock owned by Thermo Electron, representing
approximately __% of the outstanding shares of Thermo Biomedical Common Stock,
and Thermo Biomedical shall cancel such certificates. In exchange therefor, and
upon receipt from the Agent of a certificate as to the number of shares of
Thermo Electron Common Stock outstanding as of the Distribution Record Date,
Thermo Biomedical shall deliver to the Agent on the Distribution Date on behalf
of Thermo Electron and for the benefit of the holders of record of Thermo
Electron Common Stock as of the Distribution Record Date, an omnibus stock
certificate representing ___ shares of Thermo Biomedical Common Stock for every
___ shares of Thermo Electron Common Stock outstanding as of the Distribution
Record Date. Effective as of 9:00 a.m., Boston Time, on the date of the delivery
of such omnibus stock certificate to the Agent, ownership of the Thermo
Biomedical Common Stock held by Thermo Electron shall pass to Thermo Electron's
stockholders. Thermo Electron shall instruct the Agent to distribute, beginning
on or promptly following the Distribution Date, to such holders of Thermo
Electron Common Stock on the Distribution Record Date, certificates representing
___ shares of Thermo Biomedical Common Stock for every ___ shares of Thermo
Electron Common Stock outstanding as of the Distribution Record Date. Thermo
Biomedical agrees to provide to the Agent sufficient certificates in such
denominations as the Agent may request in order to effect the Distribution. All
of the shares of Thermo Biomedical Common Stock issued in the Distribution shall
be fully paid, nonassessable and free of preemptive rights. Holders of Thermo
Electron Common Stock shall not be

                                       8
<PAGE>   9

required to pay cash or other consideration for the Thermo Biomedical Common
Stock received in the Distribution.

                  (b) No fractional shares of Thermo Biomedical Common Stock
will be received by Thermo Electron stockholders. Instead, Thermo Electron will
pay each Thermo Electron stockholder that would otherwise be entitled to a
fractional share of Thermo Biomedical Common Stock cash in an amount (without
interest) equal to the product of (i) such fraction and (ii) the closing price
of the Thermo Biomedical Common Stock on the American Stock Exchange (as traded
on a when-issued basis) on the date two trading days prior to the Distribution
Date (the "Determination Date"). In the event that the Thermo Biomedical Common
Stock is not traded on a when-issued basis on the American Stock Exchange as of
the Determination Date, then the amount set forth in subclause (ii) of the
preceding sentence shall equal the fair market value of one share of Thermo
Biomedical Common Stock on the date two business days prior to the Distribution
Date as determined in good faith by the Board of Directors of Thermo Electron,
in its sole discretion. Promptly following the Distribution Date, Thermo
Electron shall provide the Agent with cash in an amount equal to the aggregate
amount to be paid to the Thermo Electron stockholders pursuant to this Section
4.1(b), and the Agent shall distribute such amounts to Thermo Electron
stockholders in accordance with this Section 4.1(b).

         4.2      THERMO ELECTRON BOARD ACTION.

                  (a) The Thermo Electron Board shall establish in its sole
discretion and in accordance with all applicable rules of the New York Stock
Exchange, the Distribution Record Date, the Distribution Date, the date on which
certificates representing Thermo Biomedical Common Stock shall be mailed to
holders of Thermo Electron Common Stock and all appropriate procedures in
connection with the Distribution.

                  (b) After the declaration of the Distribution and until the
Distribution Date, in its sole discretion for any reason, the Thermo Electron
Board may rescind the declaration of the Distribution and postpone, withdraw,
cancel or abandon the Distribution for any reason and simultaneously terminate
this Agreement and the Ancillary Agreements. In the event of such termination,
no party hereto or to any Ancillary Agreement shall have any Liability to any
Person by reason of this Agreement or any Ancillary Agreement.

                                    ARTICLE V

                    SURVIVAL, ASSUMPTION AND INDEMNIFICATION

                                       9
<PAGE>   10

         5.1 SURVIVAL OF AGREEMENTS. All covenants and agreements of the parties
hereto contained in this Agreement shall survive the Distribution Date.

         5.2 ASSUMPTION AND INDEMNIFICATION.

                  (a) Except as specifically otherwise provided in the Ancillary
Agreements, Thermo Electron shall indemnify, defend and hold harmless the Thermo
Biomedical Indemnitees from and against (1) all Indemnifiable Losses arising
from or relating to the Thermo Electron Business, whether such Indemnifiable
Losses relate to events, occurrences or circumstances occurring or existing, or
whether such Indemnifiable Losses are asserted, before or after the Distribution
Date; (2) all Indemnifiable Losses incurred by Thermo Biomedical as a
consequence of any misstatement or omission of a material fact with respect to
Thermo Electron based on information supplied by Thermo Electron in any
documents or filings prepared for purposes of compliance or qualification under
applicable securities laws in connection with the Distribution, and related
transactions, including without limitation, the Information Statement and the
Form 10; and (3) all Indemnifiable Losses arising from any breach of or failure
to perform any obligation on the part of any member of Thermo Electron Group
contained in this Agreement or any of the Ancillary Agreements.

                  (b) Except as specifically otherwise provided in the Ancillary
Agreements, Thermo Biomedical shall indemnify, defend and hold harmless the
Thermo Electron Indemnitees from and against (1) all Indemnifiable Losses
arising from or relating to the Thermo Biomedical Business, whether such
Indemnifiable Losses relate to events, occurrences or circumstances occurring or
existing, or whether such Indemnifiable Losses are asserted, before or after the
Distribution Date; (2) all Indemnifiable Losses incurred by Thermo Electron as a
consequence of any misstatement or omission of a material fact with respect to
Thermo Biomedical based on information supplied by Thermo Biomedical in any
documents or filings prepared for purposes of compliance or qualification under
applicable securities laws in connection with the Distribution and related
transactions, including without limitation, the Information Statement and the
Form 10; and (3) all Indemnifiable Losses arising from any breach of or failure
to perform any obligation on the part of any member of the Thermo Biomedical
Group contained in this Agreement or any of the Ancillary Agreements.

                  (c) If any Indemnifiable Loss arises from or relates to both
the Thermo Electron Business and the Thermo Biomedical Business, Thermo Electron
shall indemnify the Thermo Biomedical Indemnitees against any portion of such
Indemnifiable Loss that pertains more directly to the Thermo Electron Business
than to the Thermo Biomedical Business, and Thermo

                                       10
<PAGE>   11

Biomedical shall indemnify the Thermo Electron Indemnitees against any portion
of such Indemnifiable Loss that pertains more directly to the Thermo Biomedical
Business than to the Thermo Electron Business.

                  (d) Notwithstanding anything to the contrary set forth herein,
indemnification relating to any arrangements between any member of the Thermo
Electron Group and any member of the Thermo Biomedical Group (or any unit of the
Thermo Biomedical Business) for the provision after the Distribution of goods
and services shall be governed by the terms of such arrangements and not by this
Section.

         5.3 PROCEDURES FOR INDEMNIFICATION FOR THIRD-PARTY CLAIMS.

                  (a) Thermo Biomedical shall, and shall cause the other Thermo
Biomedical Indemnitees to, notify Thermo Electron in writing promptly after
learning of any Third-Party Claim for which any Thermo Biomedical Indemnitee
intends to seek indemnification from Thermo Electron under this Agreement.
Thermo Electron shall, and shall cause the other Thermo Electron Indemnitees to,
notify Thermo Biomedical in writing promptly after learning of any Third-Party
Claim for which any Thermo Electron Indemnitee intends to seek indemnification
from Thermo Biomedical under this Agreement. The failure of any Indemnitee to
give such notice shall not relieve any Indemnifying Party of its obligations
under this Article V except to the extent that such Indemnifying Party or its
Affiliate is actually prejudiced by such failure to give notice. Such notice
shall describe such Third-Party Claim in reasonable detail considering the
information provided to the Indemnitee.

                  (b) Except as otherwise provided in subsection (c) of this
Section 5.3, an Indemnifying Party may, by notice to the Indemnitee and to
Thermo Biomedical, if Thermo Electron is the Indemnifying Party, or to Thermo
Electron, if Thermo Biomedical is the Indemnifying Party, at any time after
receipt by such Indemnifying Party of such Indemnitee's notice of a Third-Party
Claim, undertake (itself or through another member of its Group) the defense or
settlement of such Third-Party Claim. If an Indemnifying Party undertakes the
defense of any Third-Party Claim, such Indemnifying Party shall thereby admit
its obligation to indemnify the Indemnitee against such Third-Party Claim, and
such Indemnifying Party shall control the investigation and defense or
settlement thereof, except that such Indemnifying Party shall not require any
Indemnitee, without its prior written consent, to take or refrain from taking
any action in connection with such Third-Party Claim, or make any public
statement, which such Indemnitee reasonably considers to be against its
interest, nor shall the Indemnifying Party, without the prior written consent of
the Indemnitee and of Thermo Biomedical, if the Indemnitee is a Thermo
Biomedical Indemnitee, or of Thermo Electron, if the Indemnitee is a Thermo
Electron Indemnitee, consent to

                                       11
<PAGE>   12

any settlement that does not include as a part thereof an unconditional release
of the Indemnitees from liability with respect to such Third-Party Claim or that
requires the Indemnitee or any of its Representatives or Affiliates to make any
payment that is not fully indemnified under this Agreement or to submit to any
non-monetary remedy; and subject to the Indemnifying Party's control rights, as
specified herein, the Indemnitees may participate in such investigation and
defense, at their own expense.

                  (c) With respect to any Third-Party Claim, if there is a
material conflict of interest between the Indemnifying Party and the Indemnitees
involved, neither the Indemnifying Party nor the Indemnitees shall be entitled
to control the defense or settlement thereof. If an Indemnitee notifies an
Indemnifying Party of a Third-Party Claim pursuant to this Section 5.3, and the
Indemnifying Party does not take control of the defense or settlement thereof,
or prior to the time that it does so take control, neither the Indemnifying
Party nor the Indemnitees shall be entitled to control the defense or settlement
thereof. In any such event, the Indemnifying Parties and the Indemnitees
involved shall each be entitled to conduct their own investigation and defense,
but the parties shall cooperate to conduct such investigation and defense as
efficiently as possible. No Indemnitee may compromise or settle any Third-Party
Claim described in this subsection as to which indemnification from an
Indemnifying Party has or will be sought under this Agreement without the prior
written consent of such Indemnifying Party.

                  (d) If an Indemnifying Party is required to indemnify any
Indemnitees with respect to a Third-Party Claim described in subsection (c) of
this Section 5.3, such Indemnifying Party shall pay the reasonable attorneys'
fees and expenses of one law firm representing the Indemnitees involved in each
jurisdiction with respect thereto.

                  (e) Thermo Biomedical shall, and shall cause the other Thermo
Biomedical Indemnitees to, and Thermo Electron shall, and shall cause the other
Thermo Electron Indemnitees to, make available to each other, their counsel and
other Representatives, all information and documents reasonably available to
them which relate to any Third-Party Claim, and otherwise cooperate as may
reasonably be required in connection with the investigation, defense and
settlement thereof.

         5.4 REMEDIES CUMULATIVE. The remedies provided in this Article V shall
be cumulative and shall not preclude assertion by any Indemnitee of any other
rights or the seeking of any other remedies against any Indemnifying Party.
However, the procedures set forth in Section 5.3 shall be the exclusive
procedures governing any indemnity action brought under this Agreement or
otherwise and relating to a Third-Party Claim, except as otherwise specifically

                                       12
<PAGE>   13

provided in any of the Ancillary Agreements.

         5.5 RELEASE OF PRE-DISTRIBUTION CLAIMS.

         (a) Except as provided in Section 5.5(c), effective as of the
Distribution Date, Thermo Biomedical does hereby, for itself and each other
member of the Thermo Biomedical Group, and their respective Affiliates (other
than any member of the Thermo Electron Group), successors and assigns, remise,
release and forever discharge Thermo Electron, the members of the Thermo
Electron Group, their respective Affiliates (other than any member of the Thermo
Biomedical Group), successors and assigns, and their respective heirs,
executors, administrators, successors and assigns, from any and all Liabilities
whatsoever, whether at law or in equity (including any right of contribution),
whether arising under any contract or agreement, by operation of law or
otherwise, existing or arising from any acts or events occurring or failing to
occur or alleged to have occurred or to have failed to occur or any conditions
existing or alleged to have existed on or before the Distribution Date,
including in connection with the actions or decisions taken or omitted to be
taken in connection with, and the other activities relating to, the structuring
or implementation of the Distribution and the transfer of the Thermo Biomedical
Assets to the Thermo Biomedical Group and the assumption by the Thermo
Biomedical Group of the Thermo Biomedical Liabilities.

         (b) Except as provided in Section 5.5(c), effective as of the
Distribution Date, Thermo Electron does hereby, for itself and each other member
of the Thermo Electron Group, their respective Affiliates (other than any member
of the Thermo Biomedical Group), successors and assigns, remise, release and
forever discharge Thermo Biomedical, the respective members of the Thermo
Biomedical Group, their respective Affiliates (other than any member of the
Thermo Electron Group), successors and assigns, and their respective heirs,
executors, administrators, successors and assigns, from any and all Liabilities
whatsoever, whether at law or in equity (including any right of contribution),
whether arising under any contract or agreement, by operation of law or
otherwise, existing or arising from any acts or events occurring or failing to
occur or alleged to have occurred or to have failed to occur or any conditions
existing or alleged to have existed on or before the Distribution Date,
including in connection with the transactions and all other activities to
implement the Distribution and the transfer of the Thermo Biomedical Assets to
the Thermo Biomedical Group and the assumption by the Thermo Biomedical Group of
the Thermo Biomedical Liabilities.

         (c) Nothing contained in Section 5.5(a) or (b) shall impair any right
of any Person to enforce this Agreement or the Ancillary Agreements, or any
agreements, arrangements, commitments or understandings that are referred to

                                       13
<PAGE>   14

herein or therein as not terminating as of the Distribution Date, in each case
in accordance with its terms. Without limiting the foregoing, nothing contained
in Section 5.5(a) or (b) shall release any Person from:

         (i)      any Liability provided in or resulting from any agreement
                  among any members of the Thermo Electron Group or the Thermo
                  Biomedical Group that is specified in Section 9.4(b) or in
                  Schedule 9.4(b) as not to terminate as of the Distribution
                  Date;

         (ii)     any Liability, contingent or otherwise, assumed, transferred,
                  assigned or allocated to the Group of which such Person is a
                  member in accordance with, or any other Liability of any
                  member of any Group under, this Agreement or any Ancillary
                  Agreement;

         (iii)    any Liability that the parties may have with respect to
                  indemnification or contribution pursuant to this Agreement or
                  any Ancillary Agreement, which Liability shall be governed by
                  the provisions of this Article V, or, if applicable, by the
                  appropriate provisions of the Ancillary Agreements; or

         (iv)     any Liability the release of which would result in the release
                  of any Person other than a Person released pursuant to Section
                  5.5(a) or (b).

         (d) Thermo Biomedical shall not make, and shall not permit any member
of the Thermo Biomedical Group to make, any claim or demand, or commence any
Action asserting any claim or demand, including any claim of contribution or any
indemnification, against Thermo Electron, any member of the Thermo Electron
Group, or any other Person released pursuant to Section 5.5(a), with respect to
any Liabilities released pursuant to Section 5.5(a). Thermo Electron shall not,
and shall not permit any member of the Thermo Electron Group, to make any claim
or demand, or commence any Action asserting any claim or demand, including any
claim of contribution or any indemnification, against Thermo Biomedical or any
member of the Thermo Biomedical Group, or any other Person released pursuant to
Section 5.5(b), with respect to any Liabilities released pursuant to Section
5.5(b).

         (e) It is the intent of each of Thermo Electron and Thermo Biomedical
by virtue of the provisions of this Section 5.5 to provide for a full and
complete release and discharge of all Liabilities existing or arising from all
acts and events occurring or failing to occur or alleged to have occurred or to
have failed to occur and all conditions existing or alleged to have existed on
or before the Distribution Date, between or among Thermo Biomedical or any
member of the Thermo Biomedical Group, on the one hand, and Thermo Electron or
any

                                       14
<PAGE>   15

member of the Thermo Electron Group, on the other hand (including any
contractual agreements or arrangements existing or alleged to exist between or
among any such members on or before the Distribution Date), except as expressly
set forth in Section 5.5(c). At any time, at the request and expense of any
other party, each party shall cause each member of its respective Group to
execute and deliver releases reflecting the provisions hereof.

                                   ARTICLE VI

                              ADDITIONAL ASSURANCES

         6.1 MUTUAL ASSURANCES. Thermo Electron and Thermo Biomedical agree to
cooperate with respect to the implementation of this Agreement and the Ancillary
Agreements and to execute such further documents and instruments as may be
necessary to confirm the transactions contemplated hereby. Such cooperation may
include joint meetings with corporate partners, suppliers, customers and others
to assure the orderly transition of the business and assets contemplated hereby;
provided, however, that nothing herein shall be deemed to obligate either Thermo
Electron or Thermo Biomedical to take any action or reach any understandings
which may violate any applicable laws. Thermo Electron and Thermo Biomedical
agree that they will not take any action inconsistent with the facts and
representations set forth in the Private Letter Ruling Request and will use
their reasonable efforts to cause such facts to remain true and correct and, if
either Thermo Electron or Thermo Biomedical shall take any such inconsistent
action, or fail to use such reasonable efforts, it will indemnify the other
party for any expense or Liability incurred as a consequence thereof. Thermo
Electron and Thermo Biomedical also agree that the Distribution is intended to
qualify under Section 355 of the Code, and that the characterization of the
transactions contemplated hereunder for tax purposes and the liability of the
parties for taxes shall be governed by the Tax Matters Agreement. Except as
otherwise specifically provided herein or as agreed between the parties from
time to time, Thermo Electron and Thermo Biomedical shall bear their own
expenses associated with the Distribution.

                                   ARTICLE VII

                   CONDITIONS TO EFFECTIVENESS OF DISTRIBUTION

         The Distribution shall be subject to the implementation of the portions
of this Agreement which are contemplated to become effective prior to the
Distribution and to the satisfaction or waiver of the following conditions:

                                       15
<PAGE>   16

         7.1 BOARD APPROVAL. This Agreement and the Ancillary Agreements
(including exhibits and schedules) shall have been approved by the Thermo
Electron Board and the Thermo Biomedical Board and shall have been executed and
delivered by appropriate officers of Thermo Electron and Thermo Biomedical.

         7.2 SECURITIES LAWS COMPLIANCE. The transactions contemplated hereby
shall be in compliance with applicable federal and state securities laws.

         7.3 FORM 10 EFFECTIVE. The Form 10 shall have become effective under
the Exchange Act, no temporary restraining order or injunction with respect
thereto shall be in effect and no proceeding seeking such relief or seeking to
suspend or otherwise rescind the effectiveness of the Form 10 shall be pending
or threatened.

         7.4 CONSENTS. Thermo Electron shall have received such consents, and
shall have received executed copies of such agreements or amendments of
agreements, as it shall deem necessary in connection with the completion of the
transactions contemplated by this Agreement.

         7.5 IRS RULING. Thermo Electron shall have received a private letter
ruling from the Internal Revenue Service to the effect that the Distribution
qualifies as a tax-free spin-off under Section 355 of the Code.

         7.6 OTHER INSTRUMENTS. All action and other documents and instruments
deemed necessary or advisable in connection with the transactions contemplated
hereby shall have been taken or executed, as the case may be, in form and
substance satisfactory to Thermo Electron and Thermo Biomedical.

         7.7 LEGAL PROCEEDINGS. No legal proceedings affecting or arising out of
the transactions contemplated hereby or which could otherwise affect Thermo
Electron or Thermo Biomedical in a materially adverse manner shall have been
commenced or threatened against Thermo Electron, Thermo Biomedical or the
directors or officers of either Thermo Electron or Thermo Biomedical.

         7.8 MATERIAL CHANGES. No material adverse change shall have occurred
with respect to Thermo Electron or Thermo Biomedical, the securities markets or
general economic or financial conditions which shall, in the reasonable judgment
of Thermo Electron and Thermo Biomedical, make the transactions contemplated by
this Agreement inadvisable.

         7.9 NOTICE OF RECORD DATE. Thermo Electron shall have provided the New
York Stock Exchange with the prior written notice of the Distribution

                                       16
<PAGE>   17

Record Date as provided by Rule 10b-17 of the Exchange Act and the rules and
regulations of the New York Stock Exchange.

         7.10 AUDITOR'S REPORT. Arthur Andersen LLP shall have provided to
Thermo Electron and the Board of Directors of Thermo Biomedical a written
report, dated the Distribution Date, with respect to the audited financial
statements contained in the Information Statement to the effect that such
financial statements present fairly in all material respects the financial
position of Thermo Biomedical and its subsidiaries and certain affiliates at the
relevant dates and the results of their operations and cash flows for the
relevant periods, in accordance with generally accepted accounting principles
consistently applied.

         7.11 OPINION OF HOULIHAN LOKEY HOWARD & ZUKIN. Houlihan Lokey Howard &
Zukin shall have provided to the Board of Directors of Thermo Electron its
written opinion as to the solvency of Thermo Electron and related matters
immediately prior to and after giving effect to the Distribution and the
distribution of shares of common stock of Thermo Fibertek Inc. by Thermo
Electron to the stockholders of Thermo Electron.

         7.12 DISTRIBUTION OF THERMO BIOMEDICAL CASH AND CASH EQUIVALENTS.
Thermo Biomedical shall have distributed to Thermo Electron all of the cash and
cash equivalents held as of the Distribution Date by each member of the Thermo
Biomedical Group other than Thermo Biomedical Subsidiaries that are foreign
subsidiaries.

         7.13 SATISFACTION OR WAIVER OF CONDITIONS. Any determination made by
the Board of Directors of Thermo Electron on behalf of either party hereto prior
to the Distribution Date concerning the satisfaction or waiver of any or all of
the conditions set forth in this Article VII shall be conclusive.

                                  ARTICLE VIII

                       ACCESS TO INFORMATION AND SERVICES

                                       17
<PAGE>   18

         8.1 PROVISION OF CORPORATE RECORDS. Prior to or as promptly as
practicable after the Distribution Date, Thermo Electron shall deliver to Thermo
Biomedical all existing corporate records in the possession of Thermo Electron
relating to the business and assets to be transferred to Thermo Biomedical,
together with all active agreements and any active litigation files relating to
the business, except to the extent such items are already in the possession of
Thermo Biomedical. Such records shall be the property of Thermo Biomedical but
shall be available to Thermo Electron for review and duplication until Thermo
Electron shall notify Thermo Biomedical in writing that such records are no
longer of use to Thermo Electron.

         8.2 ACCESS TO INFORMATION. From and after the Distribution Date, Thermo
Electron shall afford to Thermo Biomedical and its authorized accountants,
counsel and other designated representatives reasonable access (including using
reasonable efforts to give access to persons or firms possessing information)
and duplicating rights during normal business hours to all records, books,
contracts, instruments, computer data and other data and information
(collectively, "Information") within Thermo Electron's possession relating to
Thermo Biomedical's business, insofar as such access is reasonably required by
Thermo Biomedical. Thermo Biomedical shall afford to Thermo Electron and its
authorized accountants, counsel and other designated representatives reasonable
access (including using reasonable efforts to give access to persons or firms
possessing Information) and duplicating rights during normal business hours to
Information within Thermo Biomedical's possession relating to Thermo Electron's
business as constituted after the Distribution, insofar as such access is
reasonably required by Thermo Electron. Information may be requested under this
Article VIII for, without limitation, audit, accounting, claims, litigation and
tax purposes, as well as for purposes of fulfilling disclosure and reporting
obligations and for performing the transactions contemplated in this Agreement
and the Ancillary Agreements.

         8.3 PRODUCTION OF WITNESSES. At all times from and after the
Distribution Date, each of Thermo Electron and Thermo Biomedical shall use
reasonable efforts to make available to the other, upon written request, its
officers, directors, employees and agents as witnesses to the extent that such
persons may reasonably be required in connection with legal, administrative or
other proceedings in which the requesting party may from time to time be
involved and relating to the pre-Distribution business of Thermo Electron or
Thermo Biomedical or relating to or in connection with the relationship between
Thermo Electron and Thermo Biomedical on or prior to the Distribution Date.

         8.4 REIMBURSEMENT. Except to the extent otherwise contemplated by

                                       18
<PAGE>   19

any Ancillary Agreement, a party providing Information to the other party under
this Article VIII shall be entitled to receive from the recipient, upon the
presentation of invoices therefor, payments for such amounts, relating to
supplies, disbursements and other out-of-pocket expenses, as may be reasonably
incurred in providing such Information.

         8.5 RETENTION OF RECORDS. For a period of seven (7) years following the
Distribution Date, each of Thermo Electron and Thermo Biomedical shall retain
all Information relating to the other, except as otherwise required by law or
set forth in an Ancillary Agreement or except to the extent that such
Information is in the public domain or in the possession of the other party;
provided, that, after the expiration of such retention period, such Information
shall not be destroyed or otherwise disposed of at any time, unless, prior to
such destruction or disposal, (i) the party proposing to destroy or otherwise
dispose of such Information shall provide no less than ninety (90) days' prior
written notice to the other, specifying in reasonable detail the Information
proposed to be destroyed or disposed of and (ii) if a recipient of such notice
shall request in writing prior to the scheduled date for such destruction or
disposal that any of the Information proposed to be destroyed or disposed of be
delivered to such requesting party, the party proposing the destruction or
disposal shall promptly arrange for the delivery of such of the Information as
was requested, at the expense of the party requesting such Information.

         8.6 CONFIDENTIALITY. Subject to any contrary requirement of law and the
right of each party to enforce its rights hereunder in any legal action, each
party shall keep strictly confidential, and shall use its reasonable efforts to
cause its Affiliates and Representatives to keep strictly confidential, any
Information of or concerning the other party which it or any of its Affiliates
or Representatives may acquire pursuant to, or in the course of performing its
obligations under, any provisions of this Agreement or any Ancillary Agreement;
provided, however, that such obligation to maintain confidentiality shall not
apply to Information which: (i) at the time of disclosure was in the public
domain, not as a result of improper acts by the receiving party; (ii) is
received by the receiving party from a third party who did not receive such
Information from the disclosing party under an obligation of confidentiality; or
(iii) is compelled to be disclosed by judicial or administrative process or, in
the opinion of such Person's counsel, by other requirements of law.
Notwithstanding the foregoing, each of Thermo Electron and Thermo Biomedical
shall be deemed to have satisfied its obligations under this Section 8.6 with
respect to any Information if it exercises the same care with regard to such
Information as it takes to preserve the confidentiality of its own similar
Information.

                                   ARTICLE IX

                                       19
<PAGE>   20

                                    COVENANTS

         9.1 LISTING. Thermo Biomedical hereby agrees to use its reasonable
efforts to effect and maintain the listing of the Thermo Biomedical Common Stock
on the American Stock Exchange.

         9.2 ANCILLARY AGREEMENTS. The parties agree that they shall comply with
and provide all services and take any and all actions required to be provided or
taken by the terms of any and all of the Ancillary Agreements following the
Distribution.

         9.3 USE OF THERMO ELECTRON TRADEMARKS.

                  (a) Thermo Electron hereby grants Thermo Biomedical a
nonexclusive, nontransferable license to use the Thermo Electron Trademarks
solely in connection with the operation of the Thermo Biomedical Business.
Thermo Biomedical acknowledges that Thermo Electron owns all rights in the
Thermo Electron Trademarks. From and after the Distribution Date, Thermo
Biomedical shall have no rights to the Thermo Electron Trademarks except for the
limited license granted pursuant to this Section 9.3.

                  (b) Within 180 days following the Distribution Date, Thermo
Biomedical and each member of the Thermo Biomedical Group shall cease all use of
the Thermo Electron Trademarks as part of any corporate name or logo, tradename,
and/or trademark or service mark, including, without limitation, on any signs,
letterhead, business cards, invoices and other business forms, telephone
directory listings and promotional materials.

                  (c) During the 180-day period set forth in Section 9.3(b),
Thermo Biomedical shall maintain the same standards of quality for products and
services provided under the Thermo Electron Trademarks as previously provided by
Thermo Electron and its Subsidiaries. During such period, Thermo Electron shall
have the right to monitor Thermo Biomedical's use of the Thermo Electron
Trademarks and shall be able to control the quality of any Thermo Biomedical
products and/or services that bear the Thermo Electron Trademarks.

         9.4 TERMINATION OF INTERCOMPANY AGREEMENTS.

                  (a) Thermo Biomedical and each member of the Thermo Biomedical
Group, on the one hand, and Thermo Electron and each member of the Thermo
Electron Group, on the other hand, hereby terminate any and all agreements,
arrangements, commitments or understandings, whether or not in

                                       20
<PAGE>   21

writing, between or among Thermo Biomedical and/or any member of the Thermo
Biomedical Group, on the one hand, and Thermo Electron and/or any member of the
Thermo Electron Group, on the other hand, effective as of the Distribution Date.
No such terminated agreement, arrangement, commitment or understanding
(including any provision thereof which purports to survive termination) shall be
of any further force or effect after the Distribution Date. Each Party shall, at
the reasonable request of any other party, take, or cause to be taken, such
other actions as may be necessary to effect the foregoing.

                  (b) The provisions of Section 9.4(a) shall not apply to any of
the following agreements, arrangements, commitments or understandings (or to any
of the provisions thereof): (i) this Agreement or any of the Ancillary
Agreements (and each other agreement or instrument expressly contemplated by
this Agreement or any Ancillary Agreement to be entered into by any of the
parties hereto or any of the members of their respective Groups); (ii) any
agreements, arrangements, commitments or understandings listed or described on
Schedule 9.4(b) hereto; (iii) any agreements, arrangements, commitments or
understandings to which any Person other than the parties hereto and their
respective Affiliates is a party; (iv) any other agreements, arrangements,
commitments or understandings that this Agreement or any of the Ancillary
Agreements expressly contemplates will survive the Distribution Date.

                                    ARTICLE X

                        NO REPRESENTATIONS OR WARRANTIES

         10.1 NO REPRESENTATIONS OR WARRANTIES. Thermo Biomedical acknowledges
that, prior to the date of this Agreement, it has had primary responsibility for
the operation and management of the Thermo Biomedical Business, and Thermo
Electron acknowledges that, prior to the date of this Agreement, it has had
primary responsibility for the operation and management of the Thermo Electron
Business. Thermo Biomedical understands and agrees that no member of the Thermo
Electron Group is, in this Agreement or in any other agreement or document,
representing or warranting to Thermo Biomedical or any member of the Thermo
Biomedical Group in any way as to the Thermo Biomedical Assets, the Thermo
Biomedical Business or the Liabilities of the Thermo Biomedical Group or as to
any consents or approvals required in connection with the consummation of the
transactions contemplated by this Agreement, it being agreed and understood that
Thermo Biomedical and each member of the Thermo Biomedical Group shall take all
of the Thermo Biomedical Assets "as is, where is." Thermo Biomedical and each
member of the Thermo Biomedical Group shall bear the economic and legal risk
that

                                       21
<PAGE>   22

conveyances of the Thermo Biomedical Assets shall prove to be insufficient, that
the title of any member of the Thermo Biomedical Group to any Thermo Biomedical
Assets shall be other than good and marketable and free from encumbrances or
that results from the failure of Thermo Biomedical or any member of the Thermo
Biomedical Group to obtain any consents or approvals relating to the Thermo
Biomedical Business required in connection with the consummation of the
transactions contemplated by this Agreement.

                                   ARTICLE XI

                                  MISCELLANEOUS

         11.1 GOVERNING LAW. This Agreement shall be governed by the laws of the
State of Delaware.

         11.2 CONSTRUCTION. Each provision of this Agreement shall be
interpreted in a manner to be effective and valid to the fullest extent
permissible under applicable law. The invalidity or unenforceability of any
particular provision of this Agreement shall not affect the other provisions of
this Agreement which shall remain in full force and effect.

         11.3 COUNTERPARTS. This Agreement may be executed in counterparts, all
of which shall be considered one and the same agreement.

         11.4 EXHIBITS. Exhibits to this Agreement shall be deemed to be an
integral part hereof, and schedules or exhibits to such Exhibits shall be deemed
to be an integral part thereof. Except as otherwise specifically provided
therein, all provisions of this Article XI shall apply to each agreement
constituting an Ancillary Agreement or to which reference is made herein.

         11.5 AMENDMENTS; WAIVERS. This Agreement may be amended or modified
only in writing executed on behalf of Thermo Electron and Thermo Biomedical. No
waiver shall operate to waive any further or future act and no failure to object
of forbearance shall operate as a waiver.

         11.6 NOTICES. All notices, requests, demands and other communications
under this Agreement shall be in writing and shall be deemed to have been duly
given (i) on the date of service if served personally on the party to whom
notice is given, (ii) on the day of transmission if sent via facsimile
transmission to the facsimile number given below, provided telephonic
confirmation of receipt is obtained promptly after completion of transmission,
(iii) on the business day after delivery to an overnight courier service or the
Express mail service

                                       22
<PAGE>   23

maintained by the United States Postal Service, provided receipt of delivery has
been confirmed, or (iv) on the fifth day after mailing, if mailed by registered
or certified mail, postage prepaid, properly addressed and return-receipt
requested, in all cases to the parties as follows:

                                    Thermo Electron Corporation
                                    81 Wyman Street
                                    P.O. Box 9046
                                    Waltham, MA 02454-9046
                                    Attention: Chief Executive Officer
                                    Telephone:   (781) 622-1000
                                    Telecopier:  (781) 622-1283

                           or to:

                                    Thermo Biomedical Inc.
                                    81 Wyman Street
                                    P.O. Box 9046
                                    Waltham, MA 02454-9046
                                    Attention: Chief Executive Officer
                                    Telephone:   (781) 622-1000
                                    Telecopier:  (781) 622-1283

         11.7 SUCCESSORS AND ASSIGNS. This Agreement and any of the rights and
obligations of each party hereunder shall not be assigned, in whole or in part,
without the prior written consent of the other party, provided that either party
may sell, assign, transfer, delegate or otherwise dispose of its rights and
obligations hereunder in connection with its merger or consolidation or the sale
of substantially all of its assets. This Agreement shall be binding upon the
parties and their respective successors and assigns to the extent such
assignments are in accordance with this Section 11.7.

         11.8 INTERPRETATION. The Article and Section headings contained in this
Agreement are solely for the purpose of reference, are not part of the agreement
of the parties and shall not in any way affect the meaning or interpretation of
this Agreement. As used in this Agreement, the term "person" shall mean and
include an individual, a partnership, a joint venture, a corporation, a trust,
an unincorporated organization and a government or any department or agency
thereof. Whenever any words are used herein in the masculine gender, they shall
be construed as though they were also used in the feminine gender in all cases
where they would so apply.

         11.9 NO THIRD-PARTY BENEFICIARIES. Except for the provisions of
Sections 5.2 and 5.3 relating to Indemnitees, which are also for the benefit of
the

                                       23
<PAGE>   24

Indemnitees, this Agreement is solely for the benefit of the parties hereto and
their Subsidiaries and Affiliates and is not intended to confer upon any other
Persons any rights or remedies hereunder.

         11.10 COMPLETE AGREEMENT. This Agreement, the Exhibits and any
schedules hereto and the Ancillary Agreements and other documents referred to
herein shall constitute the entire agreement between the parties hereto with
respect to the subject matter hereof and shall supersede all previous
negotiations, commitments and writings with respect to such subject matter.

                  (a) All matters relating to or arising out of any employee
benefit, compensation or welfare arrangement in respect of any present and
former employee of the Thermo Electron Group or the Thermo Biomedical Group
shall be governed by the Employee Benefits Agreement. In the event of any
inconsistency between the Employee Benefits Agreement and this Agreement with
respect to such matters, the Employee Benefits Agreement shall govern.

                  (b) All matters relating to taxes shall be governed by the Tax
Matters Agreement, In the event of any inconsistency between the Tax Matters
Agreement and this Agreement with respect to such matters, the Tax Matters
Agreement shall govern.

         11.11 DISPUTE RESOLUTION.

                  (a) General. In the event that any dispute should arise
between the parties hereto with respect to any matter covered by this Agreement
or any of the Ancillary Agreements or the interpretation of this Agreement or
any of the Ancillary Agreements, the parties hereto shall resolve such dispute
in accordance with the procedures set forth in this Section 11.11.

                  (b) Arbitration.

                           (i) Any party hereto may submit any matter referred
to in Section 11.11(a) to arbitration by notifying the other party, in writing,
of such dispute. Within 30 days after receipt of such notice, the parties shall
designate in writing one arbitrator to resolve the dispute; provided, that if
the parties cannot agree on an arbitrator within such 30-day period, the
arbitrator shall be selected by the Boston, Massachusetts, Office of the
American Arbitration Association. The arbitrator shall be a retired federal or
state judge, and shall not be an Affiliate, Representative, employee,
consultant, officer, director or stockholder of any party hereto. If neither the
parties nor the Boston, Massachusetts, Office of the American Arbitration
Association is able to identify an individual to serve as the arbitrator, the
Boston, Massachusetts, Office of the American Arbitration

                                       24
<PAGE>   25

Association shall select an arbitrator from the CPC Panel of Distinguished
Neutrals of the CPR Institute for Dispute Resolution.

                           (ii) Within 30 days after the designation of the
arbitrator, the arbitrator and the parties hereto shall meet, at which time the
parties shall be required to set forth in writing all disputed issues and a
proposed ruling on the merits of each such issue.

                           (iii) The arbitrator shall set a date for a hearing,
which shall be no later than 45 days after the submission of written proposals
pursuant to Section 11.11(b)(ii), to discuss each of the issues identified by
the parties. Each party hereto shall have the right to be represented by
counsel. Except as provided herein, the arbitration shall be governed by the
Commercial Arbitration Rules of the American Arbitration Association; provided,
however, that the Federal Rules of Evidence shall apply with regard to the
admissibility of evidence and the arbitration shall be conducted by a single
arbitrator.

                           (iv) The arbitrator shall use his or her reasonable
efforts to rule on each disputed issue within 30 days after the completion of
the hearings described in Section 11.11(b)(iii). The determination of the
arbitrator as to the resolution of any dispute shall be binding and conclusive
upon all parties hereto. All rulings of the arbitrator shall be in writing and
shall be delivered to the parties.

                           (v) The (1) attorneys' fees of the parties hereto in
any arbitration, (2) fees of the arbitrator, and (3) costs and expenses of the
arbitration shall be borne by the parties as determined by the arbitrator.

                           (vi) Any arbitration pursuant to this Section 11.11
shall be conducted in Boston, Massachusetts. Any arbitration award may be
entered in and enforced by any court having jurisdiction there over and shall be
final and binding upon the parties hereto.

                           (vii) Notwithstanding the foregoing, nothing in this
Section 11.11 shall be construed as limiting in any way the right of a party
hereto to seek a temporary restraining order or other injunctive relief with
respect to any actual or threatened breach of this Agreement or any Ancillary
Agreement from a court of competent jurisdiction. Should any party to this
Agreement seek a temporary restraining order or other injunctive relief, then
for purposes of determining whether to grant such temporary restraining order or
other injunctive relief, the dispute underlying the request for such temporary
restraining order or other injunctive relief may be heard by such court of
competent jurisdiction.

         11.12 EXPENSES. Except as otherwise specifically provided in this

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<PAGE>   26

Agreement and the Ancillary Agreements, Thermo Electron and Thermo Biomedical
shall each bear their own costs and expenses incurred in connection with the
transactions contemplated hereby and by the Ancillary Agreements (including the
fees and expenses of the Agent and of all counsel, accountants and financial and
other advisors).

         11.13 FORCE MAJEURE. Neither party shall be considered in default in
performance of its obligations under this Agreement to the extent that its
performance of such obligations is prevented or delayed by any cause beyond its
reasonable control, including but not limited to strikes, labor disputes, civil
disturbances, rebellion, invasion, epidemic, hostilities, war, embargo, natural
disaster, acts of God, fire, sabotage, loss and destruction of property, changes
in laws, regulations or orders, other events or situations which the party was
unable to prevent or overcome despite the exercise of due diligence.

         11.14 COMPLIANCE WITH LAW. Nothing in this Agreement shall require
either party to take any action or omit to take any action in violation of
applicable law.

                  [remainder of page intentionally left blank]

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<PAGE>   27

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

                                          THERMO ELECTRON CORPORATION

                                          By: ______________________________
                                          Name: ____________________________
                                          Title: ___________________________

                                          THERMO BIOMEDICAL INC.

                                          By: ______________________________
                                          Name: ____________________________
                                          Title: ___________________________

ATTACHMENTS:

Exhibit A     Employee Benefits Agreement
Exhibit B     Tax Matters Agreement
Exhibit C     Transition Services Agreement

                                       27

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