Document:

Exhibit 10.18

                           BUSINESS MANAGER AGREEMENT
                           --------------------------

                                  INTRODUCTION
                                  ------------

                  THIS BUSINESS MANAGER AGREEMENT,  dated as of July 8, 1999 (as
the same may be supplemented,  modified, amended, restated or replaced from time
to time in the manner provided herein, this "Agreement"), is by and between SPAR
INFOTECH,  INC., a Nevada  corporation  currently having an address at 303 South
Broadway,  Suite 140,  Tarrytown,  New York 10591  ("Infotech"),  SPAR MARKETING
FORCE,  INC.,  a Nevada  corporation  currently  having an  address at 303 South
Broadway,  Suite 140, Tarrytown,  New York 10591 ("Marketing  Force"),  and SPAR
MARKETING  SERVICES,  INC., a Nevada corporation  currently having an address at
303 South  Broadway,  Suite 140,  Tarrytown,  New York 10591 ("SMS").  The above
entities  are  sometimes  referred  to  herein  individually  as a  "Party"  and
collectively as the "Parties".

                                    RECITALS
                                    --------

                  The efforts of the Parties prior to the date of this Agreement
resulted  in the  creation of certain  Confidential  Information,  Software  and
Program  Documentation  (collectively  referred to herein as the "Joint Works").
The Parties have  determined  that it is in their best  interests to resolve any
existing or potential  disputes  concerning their respective rights in the Joint
Works, all upon the terms and provisions and subject to the conditions set forth
in this Agreement.

                                    AGREEMENT
                                    ---------

                  In  consideration  of the foregoing,  the mutual covenants and
agreements hereinafter set forth, and other good and valuable consideration (the
receipt  and  adequacy  of which is hereby  acknowledged  by the  Parties),  the
Parties hereto hereby agree as follows:

                  Section 1. DEFINITIONS. Each use in this Agreement of a neuter
pronoun  shall be deemed to include  references  to the  masculine  and feminine
variations  thereof,  and vice versa,  and a singular pronoun shall be deemed to
include a reference to the plural  variation  thereof,  and vice versa,  in each
case as the  context  may  permit or  require.  As used in this  Agreement,  the
following capitalized terms and non-capitalized words and phrases shall have the
meanings respectively assigned to them below, which meanings shall be applicable
equally to the singular and plural forms of the terms so defined:

                  (a)  "Business  Competitive  With  Infotech"  shall  mean  any
substantial  business  activity in collecting,  analyzing  and/or  disseminating
scanner data, ex-factory shipment data and/or other similar information.

                  (b) "Business Competitive With Marketing Force" shall mean any
substantial  business activity  conducted by any person that is competitive with
any substantial  business activity  conducted by any SPAR Company or PIA Company
at the Merger Effective Time (whether or not such person's  activity is actually
conducted  in  competition  with any SPAR  Company or PIA  Company),  excluding,
however,  any Business Competitive With Infotech (whether or not so conducted by
any SPAR Company or PIA Company).

                  (c)  "Confidential  Information"  includes  all field and file
definitions   and  source  code   relating  to  the  Software  and  the  Program
Documentation (as each are hereinafter defined),  including (without limitation)
the designs,  methods,  layouts,  processing procedures,  programming techniques
used or employed by the Parties,  including combinations thereof, in conjunction
therewith,   and  encompass  interactive  data  entry,  file  handling,   report
generation and all other aspects of operation.

                  (d) "Merger  Effective  Time" shall mean the "Effective  Time"
under (and as defined in) the  Agreement and Plan of Merger dated as of February
28, 1999,  among the SPAR Companies and the PIA Companies (which is the time the
merger  thereunder  takes effect and the

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SPAR Companies and PIA Companies come under common control),  as the same may be
supplemented,  modified,  amended, restated or replaced from time to time in the
manner provided therein.

                  (e) "PIA Company" and "PIA Companies" shall  respectively mean
any one or more of PIA MERCHANDISING SERVICES, INC., a Delaware corporation,  SG
ACQUISITION, INC., a Nevada corporation (which is merging into SPAR Acquisition,
Inc.),  PIA  MERCHANDISING  CO.,  INC.,  a  California  corporation,  and  their
respective subsidiaries as of the Merger Effective Time.

                  (f) "Program Documentation" means the user manuals,  handbooks
and other written materials relating to the Software, and any subsequent updates
or revisions to such scheduling software.

                  (g)  "Representative"  of  any  Party  shall  mean  any of its
directors, officers, employees, attorneys, heirs, executors,  administrators, or
agents, any of such Party's sublicensees, affiliates, successors and assigns, or
any of  their  respective  directors,  officers,  employees,  attorneys,  heirs,
executors, administrators, or agents.

                  (h)  "Software"  means  the  application  software  program(s)
respecting the "Business  Manager" Internet  scheduling  software  consisting of
executable object code programs for such scheduling  software and related screen
formats programmed to operate on the systems of the Parties,  and any subsequent
updates or revisions to such scheduling software.

                  (i) "SPAR  Company" and "SPAR  Companies"  shall  respectively
mean  any one or more of SPAR  ACQUISITION,  INC.,  a Nevada  corporation,  SPAR
MARKETING,  INC.,  a  Delaware  corporation,  SPAR  MARKETING,  INC.,  a  Nevada
corporation,  SPAR MARKETING FORCE,  INC., a Nevada  corporation,  SPAR, INC., a
Nevada corporation,  SPAR/BURGOYNE  RETAIL SERVICES,  INC., an Ohio corporation,
SPAR INCENTIVE  MARKETING,  INC., a Delaware  corporation,  SPAR MCI PERFORMANCE
GROUP,  INC.,  a  Delaware  corporation,  and SPAR  TRADEMARKS,  INC.,  a Nevada
corporation.

                  Section 2. THE JOINT WORKS; FUTURE  DEVELOPMENT;  SUBLICENSES;
LIMITS ON USE.

                  (a)  The  Parties  as  Co-Owners   of  the  Joint  Works.   In
consideration  for the  promises  made to it under  this  Agreement,  each Party
hereby grants and conveys to the other any and all right,  title and interest in
and to the Joint  Works that it may have as may be  required to render any other
Party a co-owner of the Joint Works.  Each party hereby  acknowledges and agrees
that each party is now and at all times has been a co-owner of all right,  title
and  interest in and to the Joint Works,  including  (without  limitation),  the
United States and international  copyright  interests  therein,  and any and all
moral rights in the Joint Works  recognized  by  applicable  law,  such that the
Parties each has and shall each continue to have, for any and all purposes,  the
right to transfer,  develop,  license,  control and otherwise  exploit the Joint
Works,  in whole  or in any  part,  as each of them may see fit,  in any and all
media  subject to the terms and  conditions  set forth in this  Agreement.  Each
party covenants and agrees that it shall in all future publications of the Joint
Works,  refer to its author as "SPAR Infotech,  Inc., SPAR Marketing Force, Inc.
and SPAR  Marketing  Services,  Inc." and state its  copyright  as "(C) [Date of
Publication] SPAR Infotech,  Inc., SPAR Marketing Force, Inc. and SPAR Marketing
Services, Inc." "All rights reserved."

                  (b)  Waiver  of  Claims  and  Rights  of   Participation   and
Accounting.  Each of the  Parties  hereby  knowingly  and  intentionally  waives
whatever  claims it may now have or may ever have against the other  Parties and
their respective Representatives for any claim related to rights of exploitation
of the Joint Works,  including  (without  limitation)  claims for  authorship or
copyright  infringement.  Each of the Parties knowingly and intentionally waives
any and all claims or rights that it may have or may ever have against the other
Parties and their respective  Representatives for

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any right of  participation  in, or accounting  for, the revenues that the other
party may derive from its use or exploitation of the Joint Works, in whole or in
part, without limitation.

                  (c) Future Development. The Parties acknowledge and agree that
any Party may  engage any other  Party from time to time to provide  programming
services, system work and other assistance in developing, revising and improving
the  Software  and/or  the  Program  Documentation,  which  shall be deemed  and
construed  to be for the benefit of all of the Parties.  The Parties  agree that
their  respective   contributions  to  all  such  improvements,   revisions  and
developments  shall be included  within the scope of the term "Software" and the
term  "Program  Documentation,"  respectively,  as such  terms  are used in this
Agreement and shall not be the sole property of any Party hereto.

                  (d)  Sublicenses.  Each Party from time to time may add one or
more  subsidiaries  or  affiliates  (but only those under common  ownership  and
control  with  the  Parties)  as a  sublicensee  under  this  Agreement  (each a
"Sublicensee" and collectively "Sublicensees").  Each Sublicensee hereby assumes
and agrees to be bound by the terms,  provisions  and conditions as set forth in
this  Agreement as if it were a "Party"  hereunder.  In the event the control or
ownership of any Sublicensee,  its business or  substantially  all of its assets
are sold or transferred so that such Sublicensee, business or assets cease to be
under common ownership and control with the sublicensing  Party, such subsidiary
or affiliate shall  automatically  cease to be a Sublicensee  hereunder from and
after such sale or transfer,  without, however, relieving or otherwise affecting
any  of  the  obligations  of  such  former  Sublicensees  with  respect  to its
obligations  with  respect to actions  or events  arising  prior to such sale or
transfer.

                  (e) Certain Limits on Use by Parties. Neither Infotech nor any
of its Sublicensees  shall use the Software or the Program  Documentation in any
material  respect in any Business  Competitive With Marketing Force; and neither
Marketing Force nor SMS nor any of their respective  Sublicensees  shall use the
Software or the Program  Documentation  in any material  respect in any Business
Competitive  With  Infotech.   The  Parties  acknowledge  and  agree  that  such
limitation  shall not  preclude  any Party or its  Sublicensees  from  using the
Software and the Program Documentation for any other purpose whatsoever (subject
to the licensing limitations of Section 5 hereof).

                  (f) No  Unpermitted  Users.  No Party shall  cause,  suffer or
permit  any of its  affiliates  or cause or enable  any other  person to use the
Software or the Program Documentation in any material respect unless such person
is a permitted Licensee or Sublicensee hereunder.

                  Section  3.  TERM.  The  term  of  this  Agreement   shall  be
perpetual.

                  Section 4. MUTUAL EXCULPATION AND RELEASE. No Party nor any of
its  Representatives  shall incur any liability to any other Party or any of its
Representatives  for any acts or omissions arising out of or related directly or
indirectly  to  any of  the  Software,  Program  Documentation  or  Confidential
Information,  any license,  use or application thereof, or any claims or actions
(including,  without limitation, claims for malfunction or infringement) and any
resulting  losses or expenses with respect  thereto of any Party or any of their
respective  Representatives of any kind or nature  whatsoever,  whether known or
unknown, in law or equity or otherwise;  and each Party (on behalf of itself and
each of its  Representatives)  hereby  expressly waives any and all such claims,
actions,  losses  and  expenses  against  each of the  releasing  Party  and its
Representatives  ever had, now have or hereafter can, shall or may have, against
the each other Party and its  Representatives by reason of any matter,  cause or
thing whatsoever from the beginning to the end of the world; provided,  however,
that  the  foregoing  release  shall  not  apply  to  the  Parties'   respective
obligations set forth in this Agreement.

                  Section 5. THIRD  PARTY  LICENSING..  Subject to the terms and
conditions  herein  contained,  each Party (but not its  Sublicensees) may grant
licenses to make, use or sell the

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Software and Program  Documentation  (a  "License") to one or more third parties
(each a "Licensee" and collectively "Licensees") on such terms and conditions as
such Party may elect,  provided,  however, that (a) Infotech shall not grant any
License to make,  use or sell the Software or the Program  Documentation  to any
Licensee whose business is a Business  Competitive With Marketing Force; and (b)
neither Marketing Force nor SMS shall grant any License to make, use or sell the
Software  or the  Program  Documentation  to any  Licensee  whose  business is a
Business Competitive With Infotech.

                  Section  6.  REPRESENTATIONS  AND  WARRANTIES  RESPECTING  THE
PARTIES.  Each Party  represents  and warrants to the each of the other  Parties
that,  as of the  date  hereof  that:  (a)  such  Party  is a  corporation  duly
incorporated,  validly existing and in good standing under the laws its state of
incorporation;  (b) such  Party has the legal  capacity,  power,  authority  and
unrestricted  right to execute and deliver this  Agreement and to perform all of
its obligations hereunder;  (c) the execution and delivery by such Party of this
Agreement and the performance by such Party of all of its obligations  hereunder
will  not  violate  or be in  conflict  with any  term or  provision  of (i) any
applicable law, (ii) any judgment, order, writ, injunction, decree or consent of
any court or other judicial  authority  applicable to such Party or any material
part of such  Party's  assets and  properties,  (iii) any of its  organizational
documents,  or (iv) any material  agreement or document to which such Party is a
party or subject or that applies to any material part of such Party's assets and
properties;  (d) no consent,  approval  or  authorization  of, or  registration,
declaration  or filing  with,  any  governmental  authority  or other  person is
required as a condition precedent,  concurrent or subsequent to or in connection
with the due and valid execution, delivery and performance by such Party of this
Agreement or the legality,  validity, binding effect or enforceability of any of
the terms and provisions of this  Agreement;  and (e) this Agreement is a legal,
valid and binding  obligation of such Party,  enforceable  against such Party in
accordance with its terms and provisions.

                  Section  7.  RELATIONSHIP  AMONG  THE  PARTIES.   No  term  or
provision of this  Agreement  is intended to create,  nor shall any such term or
provision be deemed or construed to have created, any employment, joint venture,
partnership,  trust, agency or other fiduciary  relationship between the Parties
and no Party  shall be  considered  as an  employee,  joint  venturer,  partner,
trustee, agent or other representative for or of any other Party. No Party shall
not be entitled  or have any power or  authority  to bind or obligate  any other
Party in any  manner  whatsoever  or to hold  itself out as an  employee,  joint
venturer, partner, trustee, agent or other representative of any other Party.

                  Section  8.  WAIVER  OF JURY  TRIAL.  In any  action,  suit or
proceeding  in any  jurisdiction  brought  against any Party by any other Party,
each Party hereby irrevocably waives trial by jury.

                  Section 9. CONSENT TO NEW YORK  JURISDICTION  AND VENUE,  ETC.
Each Party hereby consents and agrees that the Supreme Court of the State of New
York for the County of Westchester  and the United States District Court for the
Southern  District of New York each shall have personal  jurisdiction and proper
venue  with  respect to any  dispute  between  the  Parties;  provided  that the
foregoing  consent shall not deprive any Party of the right in its discretion to
voluntarily  commence or participate in any other forum having  jurisdiction and
venue. In any dispute,  no Party will raise, and each Party hereby expressly and
irrevocably  waives,  any  objection or defense to any such  jurisdiction  as an
inconvenient forum.

                  Section 10. NOTICES.  Except as otherwise  expressly provided,
any notice,  request,  demand or other communication permitted or required to be
given  under this  Agreement  shall be in  writing,  shall be sent by one of the
following  means to the  addressee  at the  address  set forth above (or at such
other  address as shall be  designated  hereunder by notice to the other parties
and persons receiving copies, effective upon actual receipt) and shall be deemed
conclusively to have been given: (i) on the first business day following the day
timely deposited with Federal

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Express  (or other  equivalent  national  overnight  courier)  or United  States
Express  Mail,  with the cost of  delivery  prepaid  or for the  account  of the
sender;  (ii) on the fifth business day following the day duly sent by certified
or registered United States mail,  postage prepaid and return receipt requested;
or (iii) when otherwise actually received by the addressee on a business day (or
on the next business day if received after the close of normal business hours or
on any non-business day).

                  Section 11. FURTHER  ASSURANCES.  Each Party agrees to do such
further acts and things and to execute and deliver such statements, assignments,
agreements, instruments and other documents as the other Party from time to time
reasonably  may  request in order to  effectuate  the  purpose and the terms and
provisions  of this  Agreement,  each  in  such  form  and  substance  as may be
acceptable to the Parties.  Without  limiting the  generality of the  foregoing,
each Party hereto will provide each other Party  hereto,  at such other  Party's
request and  expense,  with  copies of the source or object code  version of the
Software and any and all related  documentation  to enable such requesting Party
to develop and enhance the Software and the Program Documentation.

                  Section 12. INTERPRETATION,  HEADINGS,  SEVERABILITY, ETC. The
Parties  acknowledge  and agree that the terms and  provisions of this Agreement
have been negotiated,  shall be construed  fairly as to all parties hereto,  and
shall not be  construed in favor of or against any party.  The section  headings
contained in this Agreement are for reference purposes only and shall not affect
the meaning or interpretation  of this Agreement.  In the event that any term or
provision  of this  Agreement  (other  than  Section 1 hereof)  shall be finally
determined  to  be  superseded,  invalid,  illegal  or  otherwise  unenforceable
pursuant to applicable law by a governmental  authority having  jurisdiction and
venue,  that  determination  shall not impair or otherwise  affect the validity,
legality or  enforceability  (a) by or before that  authority  of the  remaining
terms and  provisions  of this  Agreement,  which  shall be  enforced  as if the
unenforceable  term or provision  were  deleted or reduced  pursuant to the next
sentence,  as applicable,  or (b) by or before any other authority of any of the
terms  and  provisions  of this  Agreement.  If any  term or  provision  of this
Agreement  is held to be  unenforceable  because of the scope or duration of any
such provision, the Parties agree that any court making such determination shall
have the power, and is hereby requested, to reduce the scope or duration of such
term or provision to the maximum  permissible  under applicable law so that said
term or provision shall be enforceable in such reduced form.

                  Section  13.  SUCCESSORS  AND  ASSIGNS;  ASSIGNMENT;  INTENDED
BENEFICIARIES.  Whenever in this Agreement reference is made to any person, such
reference  shall be deemed to include the successors,  assigns,  heirs and legal
representatives  of such person,  and,  without  limiting the  generality of the
foregoing, all representations,  warranties, covenants and other agreements made
by or on behalf of any Party in this Agreement shall inure to the benefit of the
successors,  assigns,  heirs  and legal  representatives  of each  other  Party;
provided,  however,  that nothing  herein shall be deemed to authorize or permit
any Party to assign any of its rights or obligations under this Agreement to any
other  person,  and each Party  covenants  and agrees that it shall not make any
such  assignment,  except as otherwise  provided in Section 5 hereof or with the
prior written consent of the other Parties. The representations,  warranties and
other terms and  provisions of this  Agreement are for the exclusive  benefit of
the Parties hereto, and, except as otherwise expressly provided herein, no other
person  (including  creditors of any party hereto) shall have any right or claim
against any Party by reason of any of those terms and  provisions or be entitled
to enforce any of those terms and provisions against any Party.

                  Section  14. NO WAIVER BY ACTION,  ETC.  Any waiver or consent
respecting any representation,  warranty, covenant or other term or provision of
this  Agreement  shall be effective  only in the  specific  instance and for the
specific  purpose  for  which  given  and shall  not be  deemed,  regardless  of
frequency given, to be a further or continuing waiver or consent. The failure or
delay of a Party at any time or times to require  performance of, or to exercise
its rights with respect to, any representation, warranty, covenant or other term
or provision of this Agreement in

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no manner (except as otherwise expressly provided herein) shall affect its right
at a later time to  enforce  any such  provision.  No notice to or demand on any
Party in any case shall  entitle  such  Party to any other or further  notice or
demand  in the  same,  similar  or  other  circumstances.  All  rights,  powers,
privileges,  remedies and other interests of each Party hereunder are cumulative
and not alternatives, and they are in addition to and shall not limit (except as
otherwise expressly provided herein) any other right, power,  privilege,  remedy
or other interest of such Party under this Agreement or applicable law.

                  Section 15. COUNTERPARTS;  NEW YORK GOVERNING LAW; AMENDMENTS;
ENTIRE AGREEMENT. This Agreement shall be effective as of the date first written
above when executed by all of the Parties. This Agreement may have been executed
in two or more  counterpart  copies of the entire document or of signature pages
to the  document,  each of which may be  executed  by one or more of the Parties
hereto,  but all of  which,  when  taken  together,  shall  constitute  a single
agreement  binding  upon all of the  Parties  hereto.  This  Agreement  shall be
governed by and construed in accordance  with the applicable  laws pertaining in
the State of New York (other than those that would defer to the substantive laws
of another  jurisdiction).  Each and every  modification  and  amendment of this
Agreement  shall be in writing  and signed by all of the  Parties,  and each and
every waiver of, or consent to any departure from, any representation, warranty,
covenant or other term or  provision of this  Agreement  shall be in writing and
signed by each affected Party.  This Agreement  contains the entire agreement of
the parties and supersedes all prior and other  representations,  agreements and
understandings  (oral or  otherwise)  between  the parties  with  respect to the
matters contained herein.

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                 [Signature Page to Business Manager Agreement]

                  IN  WITNESS  WHEREOF,  the  Parties  have  duly  executed  and
delivered this Agreement as of the date first above written.

                                      SPAR INFOTECH, INC.

                                      By:/s/ Robert G. Brown
                                         -----------------------------
                                             Robert G. Brown
                                             Chief Executive Officer

                                      SPAR MARKETING FORCE, INC.

                                      By:/s/ Robert G. Brown
                                         -----------------------------
                                             Robert G. Brown
                                             Chief Executive Officer

                                      SPAR MARKETING SERVICES, INC.

                                      By: /s/ Robert G. Brown
                                         -----------------------------
                                              Robert G. Brown
                                              Chief Executive Officer

                                      -7-                        DOC. NO. 425654EXHIBIT 10(c)(ii)

                              EMPLOYMENT AGREEMENT

                  EMPLOYMENT AGREEMENT dated as of January 31, 2000 between
AMERICAN MEDICAL ALERT CORP., a New York corporation (the "Company"), with
offices located at 3265 Lawson Boulevard, Oceanside, New York 11572, and JACK
RHIAN, an individual having an address at 107 South Highland Road, Garrison, New
York 10524 ("Employee").

                              W I T N E S S E T H:

                  WHEREAS,  the  Company  desires  to  retain  the  services  of
Employee upon the terms and conditions stated herein; and

                  WHEREAS,  Employee  desires to be employed by the Company upon
the terms and conditions stated herein.

                  NOW, THEREFORE, in consideration of the mutual covenants,
conditions and promises contained herein, the parties hereby agree as follows:

                  1.  Employment.  The Company hereby  employs  Employee for the
period  beginning  January 31, 2000 and ending January 30, 2002,  unless earlier
terminated pursuant hereto (the "Initial Employment Period").  At the end of the
Initial Employment Period, the Company,  at its sole discretion,  may renew this
Employment  Agreement,  upon ninety (90) days written notice, upon substantially
the same terms and conditions for a period of twenty-four  (24) months (together
with the Initial Employment Period, the "Employment Period"); provided, however,
that if the Company determines to not renew this Agreement,  then Employee shall
receive severance pay as described in Section 10(c) hereof.

                  2. Duties.  Subject to the authority of the Board of Directors
of the Company, Employee shall be employed as Vice President and Chief Operating
Officer.  Employee will perform such duties and services  commensurate  with his
position as Vice President and Chief Operating Officer, as may from time to time
be assigned to him by the  President  and CEO,  including but not limited to (i)
administrative  responsibility  for the Company's  monitoring  center;  and (ii)
heading and implementing a pilot remote vital sign monitoring  program.

                  3. Full Time.  Employee  agrees  that he will  devote his full
time and attention  during regular business hours to the business and affairs of
the Company. The foregoing shall not prevent the purchase,  ownership or sale by
Employee of  investments  or securities of publicly held companies and any other
business  that is not  competitive  with the  Company or any  subsidiary  of the
Company so long as such  investment  does not require  active  participation  of
Employee in the management of the business of such publicly held companies, does
not interfere or conflict with the  performance of Employee's  duties  hereunder
and does not  otherwise  violate any of the  provisions  of this  Agreement,  or
Employee's participation in philanthropic  organizations to the extent that such
participation  does not interfere or conflict with the performance of Employee's
duties hereunder and does not otherwise violate any provision of this

<PAGE>

Agreement.  Employee  hereby  represents and warrants that he does not currently
own, and shall not own at any time during the Employment Period, any interest in
TransCare New York,  Corp.,  a.k.a.  Metro Care or any divisions,  successors or
affiliates thereof.

                  4.  Compensation.  In consideration of the duties and services
to be performed by Employee  hereunder,  the Company agrees to pay, and Employee
agrees to accept the amounts set forth below:

                     (a) A base salary,  to be paid on a bi-weekly basis, at the
rate of $125,000 per annum during the Employment  Period,  subject to adjustment
from time to time based on review by the Company's compensation committee, which
review  shall  take  place  on  each  twelve  (12)  month   anniversary  of  the
commencement of employment hereunder.

                     (b) As  additional  compensation,  employee  shall  receive
options under the Company's  Stock Option Plan, to purchase up to 100,000 shares
of the Company's  Common Stock,  at an exercise  price of $ 2.00 per share.  The
term of  exercise  will be five  (5)  years  from the  date of  vesting  of each
installment. As long as Employee remains employed by the Company hereunder, then
options to  purchase  20,000  shares of Common  Stock  shall vest on January 31,
2001;  options to purchase  30,000  shares of Common Stock shall vest on January
31, 2002;  and options to purchase  50,000  shares of Common Stock shall vest on
January  31,  2003;  provided,  however,  that in the event that the  Employment
Agreement is not renewed  pursuant to Section 1 hereof,  any remaining  unvested
options  shall  become  vested on January 31, 2002.  In the event that  Employee
breaches  Section 7 or 8  hereof,  then (i) all  profits  or gains  realized  by
Employee  as a result of the  exercise  of any  portion of the  options  granted
hereunder or the sale of any of the shares  underlying  such  options,  shall be
forfeited  and  returned to the  Company,  and (ii) any of the then  unexercised
portion of the options shall be immediately terminated, including any provisions
with  respect  to  termination  or  limited  exercise  periods  in the  event of
termination of Employee's employment hereunder.

Notwithstanding anything contrary to this Section 4(b), the grant of options
pursuant to this Section 4(b), is contingent and conditioned upon approval by
the Company's shareholders of an option plan reserving sufficient shares for the
grant of the options specified above. The options specified herein shall be
subject to all provisions of such plan.

                     (c) Additional Compensation - The Company agrees to pay the
Employee  additional  compensation  upon the  achievement  of certain  goals and
milestones to be determined,  and approved by the  compensation  committee.  The
additional  compensation  plan should be determined on or before April  30,2000.

                     (d)  The  compensation  provided  for  herein  shall  be in
addition to any retirement,  profit sharing,  insurance or similar benefit which
may at any time be payable  to  Employee  pursuant  to any plan or policy of the
Company  relating to such  benefits,  which  additional  benefits  shall be made
available to Employee on the same basis as they are generally  made available to
other executive officers of the Company.  Such compensation shall be in addition
to any options  which may be granted under any stock option plan of the Company.

                                      -2-
<PAGE>

                     (e)  Upon  submission  of  appropriate  documentation  with
respect  thereto,  the Company shall  reimburse  Employee in accordance with the
Company's  normal  policies for all  reasonable  travel,  hotel,  meal and other
expenses properly incurred by him in the performance of his duties hereunder.

                     (f) The Company  shall  provide  Employee with Group Health
Insurance  consistent with coverage  offered to other Executive  Officers of the
Company.

                     (g) The Company shall  provide  Employee with the use of an
automobile, selected by Employee and leased by the Company, with all expenses of
operation,  such as insurance,  gas, oil and repair, paid for by the Company and
having a cost to the Company,  including lease charges, not to exceed $1,000 per
month in the  aggregate.

                  5.  Vacation.  Employee  shall be  entitled to three (3) weeks
vacation each fiscal year, to be taken at such time as is mutually convenient to
the Company and Employee.

                  6.  Disability.  In the event that  Employee  shall be, in the
sole  judgment  of  the  Company,  unable  to  perform  because  of  illness  or
incapacity,  physical or mental,  the duties and services to be performed by him
hereunder for a period of sixty (60)  consecutive days or an aggregate period of
more than ninety (90) days in any  12-month  period,  the Company may  terminate
this  Agreement  after the  expiration  of such period.  Upon such  termination,
Employee  shall be entitled to receive  the base  salary  provided by  paragraph
4(a), and the additional  benefits,  if any, provided by paragraph 4(f), in each
instance computed up to the date of termination.

                  7. Confidential  Information.  (a) The Employee recognizes and
acknowledges that the Company owns,  controls and has exclusive access to a body
of  existing  technical  knowledge  and  technology,  and that the  Company  has
expended and is  expending  substantial  resources  in a  continuing  program of
research,  development and production with respect to its business.  The Company
possesses  and will  continue  to possess  information  that has been or will be
created,  discovered or developed,  or has or will otherwise become known to the
company,  and/or  in which  property  rights  have been or will be  assigned  or
otherwise conveyed to the Company, which information has commercial value in the
business in which the Company is engaged. All of the aforementioned  information
is hereinafter called "Confidential Information." By way of illustration but not
limitation,   Confidential   Information   includes   all  data,   compilations,
blueprints, plans, audio and/or visual recordings and/or devices, information on
computer disks, software in various stages of development,  source codes, tapes,
printouts   and   other   printed,   typewritten   or   handwritten   documents,
specifications,  strategies,  systems,  schemes,  methods  (including  delivery,
storage, receipt,  transmission,  presentation and manufacture of audio, visual,
informational  or other data or  content),  business and  marketing  development
plans,  customer lists,  prospects lists,  employee files, research projections,
processes,  techniques,  designs, sequences,  components,  programs, technology,
ideas,  know-how,  improvements,   inventions  (whether  or  not  patentable  or
copyrightable),  information  about operations and  maintenance,  trade secrets,
formulae,  models,  patent disclosures and any other information  concerning the
actual or  anticipated  business,  research or development of the Company or its
actual or potential  customers or partners or which is or has been  generated or
received in  confidence  by the Company by or from any person,  and all tangible
and  intangible  embodiments

                                      -3-

<PAGE>

thereof  of  any  kind  whatsoever   including  where  appropriate  and  without
limitation all compositions,  machinery,  apparatus, records, reports, drawings,
copyright applications,  patent applications,  documents and samples prototypes,
models, products and the like.  Confidential  Information also includes any such
information  as to which the Company is bound under  confidentiality  agreements
with third parties,  and any information  which the Company has obtained or will
obtain  from its  clients  or any other  party and which the  Company  treats as
confidential, whether or not owned or developed by the Company.

                     (b) The Employee acknowledges that, solely by reason of his
employment  by the Company,  the Employee has been or will be in a  confidential
relationship  with the  Company,  and that the  Employee  has or will  come into
possession  of,  have  access  to,  have  knowledge  of  or  contribute  to  the
Confidential Information.

                     (c) Employee represents, warrants and agrees as follows:

                     (i) All of the Confidential Information is a valuable asset
of the  Company  and is,  will be and  shall at all  times  remain  the sole and
exclusive property of the Company.

                     (ii) But for the Employee's  employment by the Company, the
Confidential Information would not have been disclosed to the Employee.

                     (iii) The employee will not, directly or indirectly, either
during his or her  employment or at any time  thereafter,  except as required in
the  conduct  of the  Company's  business  or as  authorized  in  writing by the
Company, use, publish,  appropriate,  exploit,  copy, summarize,  communicate or
disclose to any third party Confidential Information.

                     (iv) The Employee understands, acknowledges and agrees that
this  Agreement  applies  regardless  of  whether  there are any  changes in the
Employee's  job  duties,  job  title,  location  of  place  or work or  division
assignment.

                     (v) Upon termination of the employee's  employment with the
Company,  the Employee shall immediately deliver or cause to be delivered to the
Company all of the  Confidential  Information  in the  Employee's  possession or
control,  including,  without  limitation:  originals  and/or  copies  of books;
catalogues;  sales brochures;  customer lists;  price lists;  employee  manuals;
operation  manuals;  marketing and sales plans and strategies;  files;  computer
disks; and all other documents and materials, in any form whatsoever, reflecting
or  referencing  Confidential  Information  as  well  as all  of  the  materials
furnished  to or acquired by the Employee as a result of or during the course of
the Employee's employment by the Company.

                  8.  Non-Competition.  (a) For a period  of one year  after the
termination  of the  Employee's  employment  with the Company  (the "Non Compete
Period"),  the Employee  shall not, for himself or on behalf of any other person
or entity  within North  America that offers  products or services that directly
compete with the products or services offered by the Company,  solicit, have any
contact with or accept business from, any of the Company's customers or clients,
or known customer or client prospects, or otherwise induce or influence any such
customer or client or known customer or client  prospect to reduce its volume of
business,  or  terminate  or divert its  relationship  or  otherwise  in any way
adversely affect its relationship, with the Company.

                                      -4-

<PAGE>

                     (b) The Employee further  acknowledges that it is essential
to the  protection  of the  Company's  business  that the Employee be restrained
from: (i) soliciting or inducing any employee of the Company to leave his or her
employment;  and (ii) hiring or  attempting to hire any employee of the Company.
The Employee agrees that, during the Employee's  employment with the Company and
for a period  of one year  thereafter,  the  Employee  shall  not,  directly  or
indirectly,  solicit or induce, or attempt to solicit or induce,  any current or
future employee of the Company to leave the Company for any reason.

                     (c) The Employee  further  acknowledges and agrees that the
Employee shall not, during the Employee's  employment with the Company and for a
period  of  one  year  thereafter   (together  with  the  period   described  in
subparagraph (b) of this Section, the "Non Solicitation Period"), for himself or
herself or on behalf of any other person,  firm or entity within North  America,
become  engaged in any business or activity  which  directly  competes  with any
product or service sold or being  developed  by the Company,  or any business or
activity engaged in by the Company.

                     (d) The  restrictions  and  limitations  contained  in this
Paragraph 8 are acknowledged by the Employee and the Company to be reasonable as
to scope and duration and to be necessary to protect the  Company's  proprietary
interests in its Confidential  Information,  and to preserve for the Company the
competitive  advantage derived from maintaining the Confidential  Information as
secret.

                     (e)  In  the  event  that  any  of  the   restrictions  and
limitations  contained  in  this  Paragraph  8  are  deemed  unreasonable  or to
otherwise exceed the time and/or geographic  limitations permitted by applicable
law,  such  provisions of this  Paragraph  shall be reformed to the maximum time
and/or geographic limitations permitted by applicable law.

                     (f)  The  Employee  acknowledges  and  agrees  that  it  is
impossible  to measure in money the damages  which will accrue to the Company if
the  Employee   shall  breach  or  be  in  default  of  any  of  the  Employee's
representations or agreements set forth in this Agreement.  Accordingly,  if the
Employee breaches or is in default of any of the  representations  or agreements
set forth in  Paragraph 7 or 8 above,  the Company  shall have the full right to
seek  injunctive  relief,  in addition to any other existing  rights provided in
this Agreement or by operation of law,  without the requirement of posting bond.
If any action or  proceeding  is  instituted  by or on behalf of the  Company to
enforce any term of this  Agreement,  the  Employee  hereby  waives any claim or
defense  thereto  that the  Company  has an  adequate  remedy at law or that the
Company has not been,  or is not being,  irreparably  injured by the  Employee's
breach or  default.  The rights and  remedies  of the  Company  pursuant to this
Paragraph  are  cumulative,  in addition to, and shall not be deemed to exclude,
any other right or remedy which the Company may have pursuant to this  Agreement
or otherwise, at law or in equity.

                  9. Representations and Warranties of Employee.

                  (a)  The  Employee   represents   and  warrants  that  he  has
terminated  employment  with one or more prior employers and that his employment
by the Company and the

                                      -5-

<PAGE>

use by the  Company of any skills and  knowledge  that she may have,  are not in
violation  of the  terms  of any  contract  that he is a party  to or any  other
applicable provision of the law.

                  (b) The Employee  represents and warrants that his performance
of all the terms of this  Agreement and his duties as an employee of the Company
does not now and will not  knowingly  breach any agreement to keep in confidence
confidential  information acquired by him in confidence or in trust prior to his
employment with the Company.  The Employee further  represents and warrants that
he has not entered into and he will not enter into any agreement  either written
or oral in conflict herewith.

                  (c)  The  Employee  represents  and  warrants  that he has not
brought and will not bring with him to the Company or use in the  performance of
his responsibilities at the Company (a) any materials, documents or confidential
information  of a former  employer  which  are not  generally  available  to the
public,  unless he has obtained written  authorization  from the former employer
for their possession and use, or (b) any confidential information which he knows
or  should  have  known  has been  acquired  by  improper  means,  or  otherwise
misappropriated from another person. Employee warrants and represents that he is
free to enter into this  Agreement  and to  perform  the  services  contemplated
thereby and that such actions will not constitute a breach of, or default under,
any existing agreement.

                  (d) The Employee  hereby agrees to indemnify and hold harmless
the Company  from and against any and all  losses,  costs  damages and  expenses
(including,  without  limitation,  its reasonable  attorneys'  fees) incurred or
suffered by the Company  resulting from any breach by the Employee of any of his
representations or warranties set forth in this Paragraph 9.

                  10. Termination.

                  (a) The Company may terminate this Agreement  immediately  for
cause,  without  liability (other than for the base salary provided in paragraph
4(a)  accrued  to the date of  termination)  in the event of (i)  conviction  of
Employee of a felony,  (ii)  commission of acts of dishonesty or moral turpitude
constituting fraud or embezzlement, (iii) violation by Employee of the policies,
procedures, guidelines or directions of the Board of Directors, not corrected by
written notice.  (vi) negligence by the Employee in the performance,  or willful
disregard  by  the  Employee's  obligations  hereunder,  or  (v)  breach  of any
provision of this Employment Agreement, not corrected by written notice.

                  (b) In  the  event  the  Company  decides  to  terminate  this
Agreement  without  cause  within  the first six (6) months of  employment,  the
Employee shall receive,  in  consideration of his continuing  obligations  under
Sections 7 and 8 hereof,  payment of salary, based on the then applicable salary
level,  for a  period  of six (6)  months  from  the  date of such  termination,
inclusive of benefits that would  normally be due the Employee,  not  including,
however, the benefits described in Section 4(f) hereof.

                  (c) In  the  event  the  Company  decides  to  terminate  this
Agreement  without  cause  after  the  first  six (6)  months  and  prior to the
completion of the Initial  Employment  Period,  or does not renew this Agreement
pursuant to Section 1 hereof,  then  Employee's  employment  shall terminate and
Employee shall receive,  in  consideration of his continuing  obligations  under

                                      -6-

<PAGE>

Sections 7 and 8 hereof,  payment of salary, based on the then applicable salary
level,  for a period of twelve (12)  months  from the date of such  termination,
inclusive of benefits that would  normally be due the Employee,  not  including,
however,  the benefit  described in Section  4(f) hereof.

                     (d) In the event that Employee is terminated  without cause
and Employee  breaches any of the  provisions  of Sections 7 and 8 hereof during
the Non  Compete and the Non  Solicitation  periods,  then the Company  shall be
permitted to suspend any further payments, if any, due to Employee under Section
10(b) or (c) hereof,  without  prejudice  to any of it rights or remedies  under
this Agreement.

                  11. No Waiver.  The  failure of any of the  parties  hereto to
enforce any provision  hereof on any occasion shall not be deemed to be a waiver
of any  preceding  or  succeeding  breach  of  such  provision  or of any  other
provision.

                  12. Entire  Agreement.  This Agreement  constitutes the entire
agreement and understanding of the parties hereto and no amendment, modification
or waiver of any provision herein shall be effective unless in writing, executed
by the party charged therewith.

                  13.   Governing  Law.  This  Agreement   shall  be  construed,
interpreted and enforced in accordance with and shall be governed by the laws of
the State of New York  applicable to agreements to be wholly  performed  therein
without giving effect to principles of conflicts of law.

                  14. Binding Effect. This Agreement shall bind and inure to the
benefit of the parties, their successors and assigns.

                  15.  Assignment and  Delegation of Duties.  This Agreement may
not be  assigned by the parties  hereto  except that the Company  shall have the
right to assign this  Agreement to any  successor in  connection  with a sale or
transfer of all or substantially  all of its assets, a merger or  consolidation.
This Agreement is in the nature of a personal  services  contract and the duties
imposed hereby are non-delegable.

                  16.  Paragraph  Headings.  The paragraph  headings herein have
been inserted for  convenience  of reference  only and shall in no way modify or
restrict any of the terms or provisions hereof.

                  17. Notices. Any notice under the provisions of this Agreement
shall be in writing,  shall be sent by one of the following  means,  directed to
the  address  set forth on the first  page of this  Agreement  or to such  other
address as shall be designated hereunder by notice to the other party, effective
upon actual receipt and shall be deemed  conclusively to have been given: (i) on
the first business day following the day timely deposited for overnight delivery
with Federal Express (or other equivalent national overnight courier service) or
United States Express Mail, with the cost of delivery prepaid or for the account
of the sender;  (ii) on the fifth  business day  following  the day duly sent by
certified or registered  United States mail,  postage prepaid and return receipt
requested;  or (iii) when  otherwise  actually  received by the  addressee  on a
business day (or on the next business day if received  after the close of normal
business hours or on any non-business day).

                                      -7-

<PAGE>

                  18. Unenforceability;  Severability.  If any provision of this
Agreement  is  found  to be  void  or  unenforceable  by a  court  of  competent
jurisdiction, the remaining provisions of this Agreement shall, nevertheless, be
binding  upon  the  parties  with  the same  force  and  effect  as  though  the
unenforceable part has been severed and deleted.

                                      -8-
<PAGE>

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

                                EMPLOYEE:

                                /s/ Jack Rhian
                                ---------------------------------------------
                                Jack Rhian

                                COMPANY:

                                AMERICAN MEDICAL ALERT CORP.

                                By: /s/ Howard M. Siegel
                                   ------------------------------------------
                                   Name:   Howard M. Siegel
                                   Title:  President and Chief Executive Officer

                                      -9-

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