Document:

EXHIBIT 4.5
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                     AMPERSAND MEDICAL CORPORATION

                        STOCK PURCHASE WARRANT

THE WARRANT EVIDENCED HEREBY AND THE SHARES ISSUABLE UPON EXERCISE THEREOF
HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE
"ACT"), AND MAY NOT BE OFFERED OR SOLD WITHOUT REGISTRATION UNLESS AN
EXEMPTION FROM REGISTRATION IS AVAILABLE UNDER SUCH ACT OR THE RULES OR
REGULATIONS PROMULGATED THEREUNDER.

WARRANT TO PURCHASE SHARES OF COMMON STOCK AS DESCRIBED HEREIN

Date: December 10, 1999                             Warrant Number AC-I

This certifies that, for value received, Azimuth Corporation, having its
principal office at 3600 Rio Vista Ave., Orlando, Florida 32805, or its
registered assigns are entitled to purchase during the period described in
Section 4 below, expiring at the date and time described in Section 3, from
Ampersand Medical Corporation (the "Company"), having its principal office
at 414 N. Orleans, Suite 305, Chicago, Illinois 60610, that number of fully
paid and nonassessable common stock of the Company (the "Stock") as are
described in Section 1, at the exercise price described in Section 2 and 8
(the "Exercise Price"), subject to the terms set forth herein. The
holder(s) of the Warrant and/or a registered assign or assigns, shall be
referred herein as the "Warrantholder." This warrant is issued as
additional consideration for a Senior Convertible Promissory Note dated
December 10, 1999 (the "Note"), a copy of which is attached hereto.

1.   Stock Purchasable.  The number of shares of Stock purchasable upon
exercise of this Warrant is fifty thousand (50,000).

2.   Exercise Price.  The price at which this warrant is exercisable,
unless such price is adjusted as described in Section 7, is the lesser of
thirty-three cents ($0.33) per share or 85% of the closing price of
Ampersand Medical Corporation common stock as quoted on the OTC Bulletin
Board on December 10, 1999.

3.   Expiration of Warrant.  This Warrant shall expire and be no longer
exercisable after 5:00 P.M. Central Standard Time on December 10, 2004 (the
"Expiration Date").

4.   Exercise of Warrants. This Warrant shall vest immediately upon
receipt by Ampersand of funds under the Note and may be exercised as to one
hundred percent (100%) of the total number of shares covered by this
Warrant at anytime after the issuance date of this Warrant

     The purchase rights represented by this Warrant may be exercised in
whole or in part (but not as to a fractional share of Stock), by the
Warrantholder or its duly authorized attorney or representative at any time
and from time to time while this Warrant is exercisable, upon presentation
of this Warrant at the principal office of the Company, with the purchase
form attached hereto duly completed and signed, and upon payment to the
Company in cash or by certified check or bank draft of an amount equal to
the number of shares being so purchased multiplied by the Exercise Price;
or, at the option of the Warrantholder, this Warrant may be surrendered to
the Company and the Company shall issue to the Warrantholder for no
additional cash consideration a number of shares of common stock determined
by dividing the product of the maximum number of shares of common stock the
Warrantholder is entitled to purchase hereunder times the difference
between the closing price per share on the date of surrender for exercise
and the Exercise Price, by the closing price per share on the date of
surrender for exercise date of surrender for exercise, as follows:

<PAGE>

           Number of shares to be issued = ((maximum # of shares
purchasable under terms of the Warrants) X ((closing price per share on the
date of surrender for exercise) - (Exercise Price))) / (closing price per
share on the date of surrender for exercise)

     Should Warrantholder elect to so surrender this Warrant, this Warrant
shall be terminated thereafter, and the Warrantholder shall have no other
rights hereunder.

5.   Registration Rights. Should a Warrantholder exercise his rights, in
whole or in part, to purchase common shares (the "Warrant Shares"), and
provided that more than three years have elapsed from the date of issuance
of this Warrant, then the Company shall honor a request to register such
Warrant Shares pursuant to an S-3 filing under the Act, to the extent
requisite to permit the sale by such holder of such Warrant Shares. The
Company shall make such filing in timely fashion, but in no case more than
30 days from the time of such request. Any expenses relating to such filing
shall be paid by the Company. Should the Company fail to make such filing
within a 30 day period from the time of such request, the Company shall be
obligated to purchase such Warrant Shares for a cash payment per Warrant
Share equal to the difference between the Exercise Price and average
closing price of the Company's common stock during the 30 calendar days
immediately following Warrantholder's request to register the Warrant
Shares.

6.   Procedures. The Company agrees that the Warrantholder shall be deemed
the record owner of the Stock as of the close of business on the date on
which the Warrant shall have been presented and payment shall have been
made for the Stock as aforesaid. Certificates for the shares of Stock so
purchased shall be delivered to the Warrantholder within a reasonable time,
not exceeding 15 days, after the exercise in full of the rights represented
by this Warrant.

     If the Warrant is exercised in part only, the Company, upon surrender
of this Warrant for cancellation, shall deliver a new Warrant evidencing
the rights of the Warrantholder to purchase the balance of the shares of
Stock which the Warrantholder is entitled to purchase hereunder.

7.   Exchange of Warrants. Subject to the provisions of Section 11, (i)
this Warrant is exchangeable at the option of the Warrantholder at the
principal office of the Company for other Warrants of different
denominations entitling the Warrantholder to purchase the same aggregate
number of shares of Stock as are purchasable hereunder; and (ii) this
Warrant may be divided or combined with other warrants that carry the same
rights. In either case, any alterations shall be made upon presentation, at
the principal office of the Company, of the Warrant(s), together with a
written notice signed by the Warrantholder specifying the names and
denominations in which any new Warrants are to be issued and the payment of
any transfer tax due in connection therewith.

8.   Anti-Dilution Provisions. The Exercise Price in effect at any time
and the number and kind of securities purchasable upon the exercise of this
Warrant shall be subject to adjustment from time to time upon the happening
of certain events as follows:

          (a) In case the Company shall (i) declare a dividend or make a
distribution on its outstanding shares of Stock in shares of Stock, (ii)
subdivide or reclassify its outstanding shares of Stock into a greater
number of shares, or (iii) combine or reclassify its outstanding shares of
Stock into a smaller number of shares, the Exercise Price in effect at the
time of the record date for such dividend or distribution or of the
effective date of such subdivision, combination or reclassification shall
be proportionately adjusted so that the holder of this Warrant, exercised
after such date, shall be entitled to receive the aggregate number and kind
of

<PAGE>

     shares which, if this Warrant had been exercised by such holder
immediately prior to such date, he would have owned upon such exercise and
been entitled to receive upon such dividend, subdivision, combination or
reclassification. For example, if the Company declares a 2-for-i stock
distribution in which one share of Stock is distributed for each share
outstanding and the Exercise Price immediately prior to such event was
$2.00 per share, the adjusted Exercise Price immediately after such event
would be $1.00 per share. Such adjustment shall be made successively
whenever any event listed above shall occur.

          (b) If any consolidation or merger of the Company with or into
another entity, or the sale of all or substantially all of its assets to
another entity shall be effected, or in case of any capital reorganization
or reclassification of the capital stock of the Company, then lawful and
adequate provision shall be made whereby each holder of Warrants shall
thereafter have the right to receive upon the basis and upon the terms and
conditions specified herein and in lieu of the shares of Stock of the
Company immediately theretofore receivable upon the conversion of such
Warrants, such shares of Stock, securities, interests or assets as may be
issued or payable with respect to or in exchange for a number of
outstanding shares of Stock equal to the number of shares of Stock
immediately theretofore so receivable by such holder had such
consolidation, merger, sale, reorganization or reclassification not taken
place, and, in any such case, appropriate provision shall be made with
respect to the rights and interests of the holder to the end that the
provisions hereof (including without limitation provisions for adjustment
of the applicable Exercise Price) shall thereafter be applicable, as nearly
as may be in relation to any shares of Stock, securities or assets
thereafter deliverable upon the exercise of such conversion rights.

          (c) Whenever the Exercise Price payable upon exercise of each
Warrant is adjusted pursuant to Subsections (a) or (b) above, the number of
shares of Stock purchasable upon exercise of this Warrant shall
simultaneously be adjusted by multiplying the number of shares initially
issuable upon exercise of this Warrant by the Exercise Price in effect on
the date hereof and dividing the product so obtained by the Exercise Price,
as adjusted.

          (d) Whenever the Exercise Price is adjusted, as herein provided,
the Company shall promptly cause a notice setting forth the adjusted
Exercise Price and adjusted number of shares of Stock issuable upon
exercise of each Warrant to be mailed to the holders, at their last
addresses appearing in the warrant register, and shall cause a certified
copy thereof to be mailed to its transfer agent. The Company may retain a
firm of independent certified public accountants selected by the Board of
Directors (who may be the regular accountants employed by the Company) to
make any computation required by this Section 8, and a certificate signed
by such firm shall be conclusive evidence of the correctness of such
adjustment.

9.   Covenants. The Company covenants and agrees as follows:

          (a) Reservation of Stock. During the period within which the
rights represented by the Warrant may be exercised, the Company shall, at
all times, reserve and keep available, free from preemptive rights out of
the aggregate of its authorized but unissued Stock, for the purpose of
enabling it to satisfy any obligation to issue shares of Stock upon the
exercise of this Warrant, the number of shares of Stock deliverable upon
the exercise of this Warrant. If at any time the number of shares of
authorized Stock shall not be sufficient to effect the exercise of this
Warrant, the Company shall take such corporate action as may be necessary
to increase its authorized but unissued Stock to such number of shares as
shall be sufficient for such purpose. The Company shall have analogous
obligations with respect to any other securities or properties issuable
upon exercise of this Warrant.

<PAGE>

          (b) No Liens, etc. All Stock that may be issued upon exercise of
the rights represented by this Warrant shall, upon issuance, be validly
issued, fully paid, nonassessable and free from all taxes, liens and
charges with respect to the issue thereof.

          (c) Taxes. All original issue taxes payable with respect to the
issuance of shares upon the exercise of the rights represented by this
Warrant shall be borne by the Company, but in no event shall the Company be
responsible or liable for income taxes or transfer taxes upon the transfer
of any Warrant.

          (d) Notice of Events. The Company shall give prior written
notice to the Warrantholder of (i) any tender offer that is being made for
any of the Company's Stock; (ii) any offers to holders of Stock for
subscription or purchase by them of any shares of stock of any class; (iii)
any capital reorganization of the Company, reclassification of the capital
stock of the Company, consolidation or merger of the Company with or into
another corporation, the sale, lease or transfer of all or substantially
all of the property or assets of the Company to another corporation or the
voluntary or involuntary dissolution, liquidation or winding up of the
Company and (iv) any event of the type described in Section 8 hereof (any
such event in clauses (i)-(iv) above is referred to as an "Event"). Upon
becoming aware of any pending or proposed Event, the Company shall deliver
notice at least five business days before the day of the occurrence of any
Event and shall describe the Event, the date it is to take place and when
the holders of the Company's Stock will be entitled to exchange their
shares for securities or other properties deliverable upon such Event.

10.  Voting Rights. Until exercised, this Warrant shall not entitle the
Warrantholder to any voting rights or other rights as a Stockholder of the
Company.

11.  Transfer Restrictions. A Warrantholder may transfer its beneficial
interest or any portion thereof in the Warrant only to the Warrantholder's
spouse, lineal descendants or ancestors (and their spouses) or the trustee
of a trust for the principal benefit of such persons. Any transfer of
ownership or control of a corporation or other entity which is a
Warrantholder shall be deemed a transfer of this Warrant which must comply
with the terms of this Section 11. In addition, neither this Warrant nor
the Stock issuable upon the exercise hereof may be sold, transferred,
pledged or hypothecated unless the Company shall have been supplied with
evidence reasonably satisfactory to it that such transfer is not in
violation of the Act, and any applicable state laws. The Company may place
a legend to that effect on this Warrant or any replacement Warrant and on
each certificate representing shares issuable upon exercise of this
Warrant. Subject to the satisfaction of the aforesaid conditions, this
Warrant shall be transferable by the Warrantholder.

     If this Warrant is transferred, in whole or in part, upon surrender
of this Warrant to the Company, the Company shall deliver to each
transferee a Warrant evidencing the rights of such transferee to purchase
the number of shares of Stock that such transferee is entitled to purchase
pursuant to such transfer.

12.  Lost, Stolen Warrants. If this Warrant is lost, stolen, mutilated or
destroyed, the Company shall, on such terms as the Company may reasonably
impose, including a requirement that the Warrantholder obtain a bond, issue
a new Warrant of like denomination, tenor and date. Any such new Warrant
shall constitute an original contractual obligation of the Company, whether
or not the allegedly lost, stolen, mutilated or destroyed Warrant shall be
at any time enforceable by anyone.

<PAGE>

13.  Provisions of New Warrants. Any Warrant issued pursuant to the
provisions of Section 14, or upon transfer, exchange, division or partial
exercise of this Warrant or combination thereof with another Warrant or
Warrants, shall set forth each provision set forth in Sections 1 through
24, inclusive, of this Warrant as each such provision is set forth herein,
and shall be executed on behalf of the Company by a duly authorized
officer.

14.  Cancellation of Warrant. Upon surrender of this Warrant for transfer
or exchange or upon the exercise hereof, this Warrant shall be canceled by
the Company, shall not be reissued by the Company, and, except as provided
in Section 11 in case of a transfer, no Warrant shall be issued in lieu
hereof. Any new Warrant certificate shall be issued promptly but no later
than seven days after receipt of the old Warrant certificate; provided,
however, that the obligation of the Company to transfer the Warrant or
issue the shares of Stock upon the exercise of this Warrant shall be
subject to compliance with Section 11.

15.  Complete Agreement; Modifications. This Warrant and any documents
referred to herein or executed contemporaneously herewith constitute the
parties' entire agreement with respect to the subject matter hereof and
supersede all agreements, representations, warranties, statements, promises
and understandings, whether oral or written, with respect to the subject
matter hereof. This Warrant may not be amended, altered or modified except
by a writing signed by the parties.

16.  Notices. All notices under this Warrant shall be in writing and shall
be delivered by certified mail, postage prepaid, to such address as may be
designated from time to time by the relevant party. Any notice sent by
certified mail will be deemed to have been given three (3) days after the
date on which it is mailed. Notices will be addressed as set forth on the
last page hereof or to such other addresses as the party to whom the same
is directed will have specified.

17.  Successor and Assigns. Except as provided herein to the contrary,
this Warrant shall be binding upon and inure to the benefit of the parties,
their respective successors and permitted assigns.

18.  Governing Law; Jurisdiction. This Warrant has been negotiated and
entered into in the State of Florida, and all questions with respect to the
Warrant and the rights and liabilities of the parties shall be governed by
the laws of that state, regardless of the choice of law provisions of
Florida or any other jurisdiction. Any and all disputes between the parties
which may arise pursuant to this Warrant shall be heard and determined
before the appropriate federal or state court located in Florida. The
parties hereto acknowledge that such court has jurisdiction to interpret
and enforce the provisions of this Warrant, and the parties waive any and
all objections that they may have as to venue in any of the above courts.

19.  Construction. No term or provision of this Warrant shall be construed
so as to require the commission of any act contrary to law, and wherever
there is any conflict between any provision of this Warrant and any present
or future statute, law, ordinance, or regulation contrary to which the
parties have no legal right to contract, the latter shall prevail, but in
such event the provision of this Warrant so affected shall be curtailed and
limited only to the extent necessary to bring it within the requirements of
the law.

20.  Waivers Strictly Construed. With regard to any power, remedy or right
provided herein or otherwise available to any party hereunder (i) no waiver
or extension of time shall be effective unless expressly contained in a
writing signed by the waiving party; and (ii) no alteration, modification
or impairment shall be implied by reason of any previous waiver, extension
of time, delay or omission in exercise, or other indulgence.

<PAGE>

21.  Severability. If one or more of the provisions of this Warrant shall
be held to be invalid, illegal or unenforceable in any respect, the
validity, legality or enforceability of the remainder of this Warrant shall
not be affected.

21.  Headings.  The headings in this Warrant are inserted only as a matter
of convenience, and in no way define, limit, or extend or interpret the
scope of this Warrant or of any particular provision.

23.  Counterparts. This Warrant may be executed in two or more
counterparts, each of which shall be deemed an original, but all of which
together shall constitute one or the same instrument.

WITNESS the signature of a duly authorized officer.

AMPERSAND MEDICAL CORPORATION

By:  _______________________________
     (name)

     _______________________________
     (title)

Date:_______________________________

<PAGE>

                             PURCHASE FORM

                To Be Executed Upon Exercise of Warrant

The undersigned hereby exercises the right to purchase __________________
shares of Stock, evidenced by the within Warrant, according to the terms
and conditions thereof, and herewith (makes payment of the purchase price
in full) (or requests that the Company exchange the Warrant as provided for
under terms of the Warrant). The undersigned requests that certificate(s)
for such shares shall be issued in the name set forth below:

Dated:___________________________ AZIMUTH CORPORATION

                                  By:  ______________________
                                       (Signature)

                                  Name:______________________
                                       (Please print)

                                  Address:

                                       ----------------------

                                       ----------------------

                                       ______________________

                                  Employer Identification Number, Social
                                  Security Number or other identifying
                                  number:

                                       _______________________

If said number of shares shall not be all the shares purchasable under the
within Warrant, the Warrantholder hereby requests that a new Warrant for
the unexercised portion shall be registered in the name set forth below and
delivered to the address set forth below.

                                  Name:_______________________
                                       (Please print)

                                  Address:______________________

                                       _______________________

                                       _______________________

                                  Employer Identification Number, Social
                                  Security Number or other identifying
                                  number:

                                       _______________________EXHIBIT 10.11
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                         EMPLOYMENT AGREEMENT

     This Employment Agreement ("Agreement") is entered into as of the
first day of _____, 2000 by and between Ampersand Medical Corporation, a
Delaware corporation ("Ampersand"), and __________________________
("Employee").

                               RECITALS

     Ampersand desires to have the benefits of Employee's knowledge and
experience as a full time senior executive without distraction by
employment-related uncertainties and considers such employment a vital
element of protecting and enhancing the best interests of Ampersand and its
shareholders.

     Employee desires to be employed full time with Ampersand.

     Ampersand desires to assure itself of the continued services of
Employee, and Employee desires to render services to Ampersand.

     In consideration of the mutual covenants and other good and valuable
consideration, the parties agree as follows:

     1.    Term. Ampersand shall employ Employee for a ______ (__) year
period commencing __________________ (the "Effective Date") and ending
________________, unless terminated as provided in Sections 5 or 6. This
Agreement shall automatically renew for additional one (1) year terms
unless either party delivers to the other written notice of non-renewal at
least 60 days prior to the end of the term. In addition, if a Change of
Control as defined in section 7(d) occurs when less than one (1) year
remains prior to the expiration of this Agreement, this Agreement shall be
automatically extended until the first anniversary of the date on which the
Change of Control occurred. The period during which Employee is employed by
Ampersand is the "Employment Period."

     2.    Duties. Employee shall serve as the
___________________________________ and shall exercise the authority and
assume the responsibilities typically given to the
________________________________________ of a corporation similar in size
and nature to Ampersand, and shall assume any other duties and
responsibilities as the Board of Directors may prescribe that are
consistent with the duties of the president and chief financial officer of
a company similar in size and nature to Ampersand. Throughout the
Employment Period, Employee shall devote substantially all of his time,
attention and efforts during normal business hours to the performance of
his duties. Employee shall not render any services as a director, trustee,
officer, employee or consultant to any other organization without the prior
approval of the Board of Directors.

     3.    Compensation. During the Employment Period, Ampersand shall
compensate Employee as follows:

     (a)   A base annual salary determined by the Board of Directors
consistent with its practices for executive officers of Ampersand, but not
less than $_______________ per year, payable in accordance with Ampersand's
customary payroll practices;

     (b)   Bonuses as determined by the Board of Directors;

     (c)   If Employee's base annual salary is increased at any time, it
shall not thereafter be decreased;

     (d)   A monthly automobile allowance of $___________________.

<PAGE>

     4.    Employee Benefits-

           (a)   Employee shall be entitled, on a basis commensurate with
Employee's position with Ampersand, to full participation in, and service
credit for benefits as provided under, all life, accident, medical payment,
health and disability insurance, retirement pension, salary continuation,
expense reimbursement and other employee benefit and perquisite policies,
plans, programs and arrangements that generally are made available to
executive officers of Ampersand, except for such arrangements that the
Board of Directors, in its discretion, shall adopt for select employees to
compensate them for special or extenuating circumstances.

           (b)   Employee shall be entitled to _______ (__) weeks of
annual vacation leave at full pay.

           (c)   Employee shall be entitled to participate in all bonus,
incentive, profit-sharing, stock option, stock purchase, stock
appreciation, discretionary pay and similar policies, plans programs and
arrangements that generally are made available to executive officers of
Ampersand.

           (d)   Nothing in this Agreement shall limit in any way
Employee's participation in any other benefit plans or arrangements as are
from time to time approved by Ampersand.

     5.    Termination by Ampersand.   Ampersand may terminate this
Agreement without entitling Employee to the severance benefits provided by
Sections 7 and 8 only under the following circumstances:

           (a)   Death, Total Disability or Retirement.  This Agreement
shall be terminated upon Employee's death or retirement. This Agreement
shall be terminated if, as a result of Employee's incapacity resulting from
physical or mental illness or disease that is likely to be permanent,
Employee is unable to perform his duties for a period of more than 120
consecutive days during any twelve (12) month period and Employee is
qualified and eligible to receive disability benefits under the long-term
disability plan then in effect for executive officers of Ampersand; and

           (b)   Cause.  Ampersand may terminate this Agreement for cause,
which means:

                 (i)   the repeated, willful and continued failure by
Employee to follow the reasonable instructions of the Board of Directors of
Ampersand after Employee has been given written notice of the failure and a
period of at least thirty (30) days to cure the failure;

                 (ii) the willful commission by Employee of acts that are
dishonest and materially injurious to Ampersand;

                 (iii)the conviction of Employee of a felony; or

                 (iv) drug addiction.

Ampersand's termination of this Agreement for any reason other than those
specified in this Section 5 shall be a termination without cause. No breach
or default by Employee shall be deemed to have occurred unless written
notice is given to Employee within sixty (60) days after Ampersand first
learns of the breach or default and it is not cured within thirty (30) days
after notice is given to Employee.

<PAGE>

     6.    Termination by Employee. Employee may terminate this Agreement,
and shall be entitled to severance compensation and benefits as provided in
Sections 7 and 8 if:

     (a)   at any time more than 120 days after the occurrence of a Change
of Control, for any reason or no reason at all; or

     (b)   for Good Reason, provided that Employee terminates this
Agreement no later than ninety (90) days following the occurrence of an
event constituting Good Reason. "Good Reason" means the occurrence of any
of the following:

           (i)   The assignment of duties to Employee that are materially
inconsistent with Employee's position, duties and status as contemplated by
this Agreement (without the express written consent of Employee);

           (ii)  Any action by Ampersand that results in a material
adverse change in the nature or scope of the position, duties, authorities,
responsibilities or functions of Employee as contemplated by this
Agreement, except for strategic reallocations of the personnel reporting to
Employee;

           (iii) Employee's base annual salary, as may be increased from
time to time, is reduced, Employee's right to participate in any policy,
plan, program or arrangement of the type referred to in Section 4(c) is
changed or terminated, or Employee's right to benefits of the type referred
to in Section 4(a) is changed, terminated or denied;

           (iv)  Ampersand relocates its principal executive offices, or
requires Employee to change his principal location of work to any location
that is more than fifty 50 miles from his principal location of work on the
Effective Date, or requires Employee to travel away from his office in the
course of discharging Employee's responsibilities or duties significantly
more (in terms of either consecutive days or aggregate days in any calendar
year) than was required of Employee prior to the Effective Date, in either
case without Employee's prior written consent; provided, however, that
Ampersand has the fight to make temporary assignments for a reasonable
period of time at other locations where Ampersand has a special need for
Employee's services; or

           (v)   Without limiting the generality or effect of the
foregoing, Ampersand fails to comply with any of its obligations in any
material respect.

     7.    Severance Payment After Change of Control.

     (a)   If, following the occurrence of a Change of Control, Ampersand
terminates this Agreement without cause or Employee resigns for Good
Reason, Employee shall receive a lump sum severance payment equal to
Employee's Base Amount, as defined in subsection (b) below.

     (b)   "Base Amount" means the sum of:

           (i)   Employee's annual base salary in effect immediately prior
to the termination of this Agreement; plus

           (ii)  the highest incentive compensation paid to Employee in
any of the two consecutive annual incentive compensation periods ending
immediately prior to the termination of this Agreement; plus

           (iii) the monthly automobile allowance Employee is entitled to
receive pursuant to Section 3(d), multiplied by 12.

<PAGE>

     (c)   If a Change of Control occurs, despite the terms of any
applicable plan or arrangement to the contrary,

           (i)   Employee's stock options and stock appreciation rights
shall immediately vest and be immediately exercisable,

           (ii)  any risk of forfeiture included in restricted stock
grants made to Employee shall immediately lapse, and

           (iii) Employee's rights in all other employee benefit and
compensation plans shall immediately vest, provided that Employee's rights
under any plan or arrangement of Ampersand described in Section 28OG(b)(6)
of the Internal Revenue Code of 1986, as amended, or any successor
provision thereto (the "Code"), shall not be altered as a result of this
subsection (c).

     (d)   A "Change of Control" shall be deemed to have taken place if:

           (i)   if Peter P. Gombrich shall cease to be the Chief
Executive Officer of the Company and the termination of his employment is a
direct result of any of the events set forth in paragraph (d)(ii) through
(d)(viii);

           (ii)  if any person, as that term is used in Section 13(d) and
Section 14(d)(2) of the Securities Exchange Act of 1934, as amended (the
"Exchange Act"), except the stockholders of record immediately prior to the
date hereof, becomes, is discovered to be, or files a report on Schedule
13D or 14D-1 disclosing that he is the beneficial owner, as defined in Rule
13d-3 under the Exchange Act, directly or indirectly, of securities
representing 20% or more of the combined voting power of Ampersand's then
outstanding securities entitled to vote generally in the election of
directors (unless such person is known by Employee to already be a
beneficial owner on the date of this Agreement);

           (iii) Ampersand is merged, consolidated or reorganized into or
with another corporation or other legal person, or securities of Ampersand
are exchanged for securities of another corporation or other legal person,
and, immediately after such merger, consolidation, reorganization or
exchange, less than a majority of the combined voting power of the then
outstanding securities of the corporation or person immediately after the
transaction are held, directly or indirectly, in the aggregate by the
stockholders of Ampersand immediately prior to such transaction;

           (iv)  Ampersand, in any transaction or series of related
transactions, sells all or substantially all of its assets, and less than a
majority of the combined voting power of the then outstanding securities of
the purchaser immediately after the sale or sales are held, directly or
indirectly, in the aggregate by the stockholders of Ampersand immediately
prior to the sale;

           (v)   Ampersand sells or disposes of (in any transaction or
series of related transactions) business operations that generated two-
thirds of its consolidated revenues immediately prior thereto, determined
on the basis of Ampersand's four most recently completed fiscal quarters;

           (vi)  Ampersand files a report or proxy statement with the
Securities and Exchange Commission pursuant to the Exchange Act disclosing,
in response to Form 8-K or Schedule 14A, that a change in control of
Ampersand may have occurred or may occur pursuant to any then-existing
contract or transactions;

<PAGE>

           (vii) any other transaction or series of related transactions
occurs that has substantially the effect of a transaction specified in any
of the preceding clauses in this subsection (d); or

           (viii)  Employee is terminated by Ampersand, or removed from
Employee's office or position without cause within ninety (90) days before
a Change of Control occurs.

     (e)   Notwithstanding any contrary provision in this Agreement, if
any amount or benefit to be paid or provided would be an "Excess Parachute
Payment", within the meaning of Section 280G of the Code but for the
application of this Subsection 7(e), then the payments and benefits shall
be reduced to the minimum extent necessary, but in no event to less than
zero, so that no portion of any payment or benefit, as reduced, constitutes
an Excess Parachute Payment. The determination of whether any reduction in
the payments or benefits is required pursuant to this Section 7(e) shall be
made at the expense of Ampersand. If any payments or benefits intended to
be provided must be reduced pursuant to this subsection (e), Employee may
designate the payments or benefits to be reduced. Ampersand shall provide
Employee with all reasonably requested information for Employee to make the
designation. If Employee fails to make such designation within ten (10)
business days of the termination of this Agreement, Ampersand may effect
reduction in any manner it deems appropriate.

     (f)   Notwithstanding the provisions of Section 7(d)(i), (ii) and
(v), unless otherwise determined in a specific case by majority vote of the
Board of Directors, a Change of Control shall not be deemed to have
occurred solely because an entity in which Ampersand directly or indirectly
beneficially owns 50% or more of the voting securities, or any Ampersand
sponsored employee stock ownership plan or other employee benefit plan
files or becomes obligated to file a report or a proxy statement in
response to Schedule 13D, Schedule 14D-l, Form 8-K or Schedule 14A under
the Exchange Act, disclosing beneficial ownership by it of units of
Ampersand, or because Ampersand reports that a change in control may have
occurred or may occur in the future by reason of such beneficial ownership.

     (g)   If this Agreement is not terminated as provided in Section
7(a), then the rights and obligations of the parties for the balance of the
Employment Period shall be governed by this Agreement exclusive of the
provisions contained in this Section 7, except this Section 7 shall
continue and become applicable if a subsequent Change of Control occurs
during the Employment Period.

     8.    Other Severance Benefits.

     (a)   If Employee is terminated without cause or Employee resigns for
Good Reason, and no Change of Control has occurred, Employee shall receive
a severance payment equal to Employee's Base Amount as defined in Section
7(b).

     (b)   If Employee is terminated without cause or Employee resigns for
Good Reason or as provided in Section 6(a), Ampersand shall continue to
provide, at no cost to Employee, basic employee group benefits referred to
in Section 4(a) that are welfare benefits, but not pension, retirement or
similar compensatory benefits, for Employee and Employee's dependents and
are substantially similar to those they were receiving or to which they
were entitled immediately prior to the termination of this Agreement for
the lesser of one year after termination or until Employee secures new
employment. Employee's stock option agreements shall provide for a
continuance of the option exercise period for at least two (2) years from
the date of Employee's termination without cause and at least one (1) year
from the date of Employee's resignation for Good Reason, except that if
Employee dies, continuance of the option exercise period shall be at least
two (2) years and the exercise period of an option shall not be extended
beyond the date on which it would have terminated had Employee continued to
be employed by the Company. The preceding sentence shall not apply to any
"incentive stock option," as that term is defined in Section 411 of the
Code.

<PAGE>

     (c)   If Employee is terminated without cause or Employee resigns for
Good Reason or as provided in Section 6(a), Ampersand shall promptly,
within five (5) business days after a request by Employee, pay or reimburse
Employee for the costs and expenses of any executive outplacement firm
selected by Employee; provided that Ampersand's liability under this
Subsection (e) shall be limited to $20,000. Employee shall provide
Ampersand with reasonable documentation of outplacement costs and expenses.

     9.    Timing of Payment. Any severance or other payment under this
Agreement shall be paid within thirty (30) days after the event giving rise
to Employee's entitlement to the payment or at any other date as the
parties agree.

     10.   Other Benefits. The provisions of Sections 7 and 8 shall not
affect Employee's participation in or terminate distributions and vested
rights under any pension, profit sharing, insurance or other employee
benefit plan to which Employee is entitled pursuant to the terms of the
plans, except for the acceleration of vested benefits in certain employee
benefits pursuant to Section 7(c) and as provided in Section 8(b).

     11.No Mitigation Obligation. Ampersand recognizes that it will be
difficult, and may be impossible, for Employee to find reasonable
comparable employment following the termination of this Agreement. The non-
competition covenant contained in Section 13 further limits the employment
opportunities for Employee. In addition, Ampersand's severance pay policy
applicable in general to its salaried employees does not provide for
mitigation, offset or reduction of any severance payment. Accordingly, the
payment of severance compensation under this Agreement will be liquidated
damages, and that Employee shall not be required to seek other employment
or otherwise mitigate any payment.

     12.   No Right to Set Off.  Ampersand shall not set off against
amounts payable to Employee any amounts earned by Employee in other
employment, or otherwise, after termination of this Agreement, or any
amounts which might have been earned by Employee in other employment had he
sought such other employment.

     13.   Competitive Activity. For two (2) years following the
termination of this Agreement, if Employee receives payments and benefits
under this Agreement, Employee shall not, without the prior written consent
of the Board of Directors, engage in any Competitive Activity. "Competitive
Activity" means Employee's participation in the management of any business
if it engages in substantial and direct competition with Ampersand and the
business' sales of any competing product or service amounted to 25% or more
of its net sales for its most recently completed fiscal year, and if
Ampersand's net sales of a competing product or service amounted to 25% or
more of Ampersand's net sales for its most recently completed fiscal year.
"Competitive Activity" shall not include

     (a)   the mere ownership of securities in any business and the
exercise of rights appurtenant thereto, or

     (b)   participation in the management of any business other than in
connection with that business' operations competitive with Ampersand.

     14.   Non-Disclosure of Information.

     (a)   During the Employment Period, and at all times thereafter,
except in the performance of Employee's obligations to Ampersand, Employee
shall not, directly or indirectly, use or authorize the use of any
confidential or other proprietary information ("Confidential Information")
of Ampersand including but not limited to trade secrets, product
specifications and ideas, manuals, systems, procedures, confidential
reports, customer lists, sales or distribution methods, patentable
information and data and financial information concerning Ampersand, which

<PAGE>

Confidential Information has been made known, whether or not with the
knowledge and permission of Ampersand, and whether or not developed,
devised or otherwise created in whole or in part by the efforts of
Employee, to Employee by reason of Employee's activities on behalf of
Ampersand. Employee shall not reveal, divulge or make known any
Confidential Information to any individual or business organization
whatsoever except in performance of Employee's obligations to Ampersand,
with the express permission of the Board of Directors, or as required by
operation of law.

     (b)   All Confidential Information is the exclusive property of
Ampersand. All business records, papers and documents kept or made by
Employee relating to the business of Ampersand shall be and remain the
property of Ampersand and shall remain in the possession of Ampersand. Upon
the termination of this Agreement or upon the request of Ampersand at any
time, Employee shall promptly deliver to Ampersand, and shall retain no
copies of any written materials, records or documents made by Employee or
in Employee's possession concerning the business and affairs of Ampersand
that contain Confidential Information.

     (c)   Without limiting the remedies available to Ampersand, Employee
acknowledges that a breach of any of the covenants contained in Section 13
and this Section 14 may result in material irreparable injury to Ampersand
for which there is no adequate remedy at law, that it may not be possible
to measure damages for such injuries precisely and that, in the event of a
breach or threatened breach, Ampersand may obtain a temporary restraining
order and a preliminary or permanent injunction restraining Employee from
engaging in activities prohibited by Section 13 or this Section 14 or any
other relief as may be required to specifically enforce any of the
covenants in such Sections.

     15.   Inventions.

     (a)   Employee shall promptly and fully disclose to Ampersand any and
all ideas, improvements, discoveries and inventions, whether or not they
are believed to be patentable ("Inventions"), which Employee conceives or
first actually reduces to practice, either alone or with others, during the
Employment Period, and which relate to the business now or hereafter
carried on or contemplated by Ampersand, or which result from any work
performed by Employee for Ampersand.

     (b)   All Inventions shall be the sole and exclusive property of
Ampersand, and during the Employment Period and at all times thereafter,
Employee shall, upon request, execute and assign any and all applications,
assignments and other instruments that Ampersand shall deem necessary or
appropriate to apply for or obtain a United States patent, trademark or
copyright and/or any foreign patent, trademark or copyright for any
Inventions. Employee shall assign and convey to Ampersand or its nominee
the sole and exclusive right, title and interest in and to any Inventions.

     (c)   The provisions of this Section 15 do not apply to an invention
for which no equipment, supplies, facility or Confidential Information of
Ampersand was used, that was developed entirely on Employee's own time, and

           (i)   that does not relate directly to the business of
Ampersand or to Ampersand's actual or anticipated research or development,
or

           (ii)  that does not result from any work performed by Employee
for Ampersand.

<PAGE>

     16.   Binding Arbitration: Legal Fees and Expenses.

     (a)   Any dispute or controversy arising under or in connection with
this Agreement prior to the occurrence of a Change of Control shall be
resolved exclusively by binding arbitration in Cook County, Illinois, in
accordance with the rules of the American Arbitration Association. Judgment
may be entered on the arbitrator's award in any court having jurisdiction.
Each party shall bear his or its own costs and expenses of arbitration, but
if Employee is the prevailing party in such arbitration, in whole or in
part, Ampersand shall pay as part of the award all attorney's and related
fees, costs and expenses incurred by Employee in connection with the
arbitration.

     (b)   If a Change of Control occurs and Employee determines, in good
faith, that Ampersand has failed to comply with any of its obligations
under this Agreement, or Ampersand or any other person takes or threatens
to take any action to declare this Agreement void or unenforceable or
institutes any litigation, arbitration proceeding or other action or
proceeding designed to deny or recover from Employee the benefits provided
or intended to be provided to Employee, Ampersand shall pay for, as
provided below, counsel selected and retained by Employee, to represent
Employee in connection with the initiation or defense of any litigation,
arbitration or other legal action, whether by or against Ampersand or any
director, officer, stockholder or other person affiliated with Ampersand,
in any jurisdiction. Within ten (10) business days after receipt of
Employee's request referencing this Section 16(b), Ampersand shall pay or
reimburse Employee for fees and expenses incurred, or reasonably
anticipated to be incurred, in accordance with the request and this Section
16(b). Ampersand shall pay and shall be solely responsible for any and all
attorneys' and related fees and expenses incurred by Employee in connection
with any of the foregoing, excluding any fees and expenses related to an
unsuccessful appeal filed by Employee of an adjudication on the merits, any
motion for a new trial filed by Employee that is denied or any other motion
filed by Employee for reconsideration or review that is denied.

     17.   Withholding of Taxes. Ampersand may withhold from any amounts
payable under this Agreement federal, state, city or other taxes as
required by law or government regulation.

     18.   Notices. All notices, requests, demands and other
communications called for or contemplated by this Agreement shall be in
writing and shall be deemed given when delivered personally or when mailed
by United States certified or registered mail, return receipt requested,
postage prepaid, addressed to the parties, their successors in interest or
assignees at the following addresses or such other addresses as the parties
may designate:

     If to Ampersand:       Ampersand Medical Corporation
                            414 N. Orleans, Suite 305
                            Chicago, Illinois 60610
                            Attn: Secretary

     If to Employee:        ___________________________
                            ___________________________
                            ___________________________
                            ___________________________

     19.   Governing Law.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Illinois, without
giving effect to Illinois' principles of conflict of laws. Venue will be
solely in the state or federal courts located in Cook County, Illinois,
subject only to Section 16(a).

<PAGE>

     20.   Validity.  The invalidity or unenforceability of any provision
or provisions of this Agreement shall not affect the validity or
enforceability of any other provision of this Agreement, which shall remain
in full force and effect. Any provision of this Agreement held to be
invalid or unenforceable shall be reformed only to the extent necessary to
make it valid and enforceable.

     21.   Entire Agreement.  This Agreement constitutes the entire
understanding between the parties with respect to the subject matter, and
supersedes all negotiations, prior discussions, preliminary agreements and
employment arrangements between Employee and Ampersand. This Agreement may
not be amended, nor may any of its provisions be waived, except in a
writing executed by the parties.

     22.   Effect on Successors In Interest.  This Agreement shall inure
to the benefit of and be binding upon the heirs, administrators, executors
and successors of each of the parties, including without limitation any
person acquiring, directly or indirectly, all or substantially all of the
business and/or assets of Ampersand by purchase, merger, consolidation,
reorganization or otherwise, and such successor shall thereafter be deemed
"Ampersand" for purpose of this Agreement. This Agreement is personal in
nature and neither of the parties shall, without the consent of the other,
assign, transfer or delegate this Agreement or any rights or obligations
except as expressly provided in this Section. Without limiting the
generality of the foregoing, Employee's fight to receive payments shall not
be assignable, transferable or delegable, whether by pledge, creation of a
security interest or otherwise, other than by bequest or devise or by the
laws of descent and distribution and, upon any attempt to assign or
transfer contrary to this Section, Ampersand shall have no liability to pay
any amount attempted to be assigned, transferred or delegated.

     23.   Effectiveness.  This Agreement shall be effective upon the
Effective Date.

     24.   Captions.  The captions and headings of the sections are
inserted only as a convenience and do not define, limit or otherwise
describe the scope of this Agreement or the intent of any of its
provisions.

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

                            AMPERSAND MEDICAL CORPORATION

                            By:   _____________________________
                                  Peter P. Gombrich

                                  _____________________________
                                  (Employee)

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