Document:

27

NY:112404.3

                     PRIVATE EQUITY LINE OF CREDIT AGREEMENT

                                     Between

                        Paradigm Medical Industries, Inc.

                                       And

                             Triton West Group, Inc.

     PRIVATE  EQUITY  LINE OF CREDIT  AGREEMENT  dated as of June 30,  2000 (the
"Agreement"),  between  Triton  West  Group,  Inc.,  a  British  Virgin  Islands
corporation  (the  "Investor")  and  Paradigm   Medical   Industries,   Inc.,  a
corporation  organized and existing under the laws of the State of Delaware (the
"Company").

     WHEREAS,  the  parties  desire  that,  upon the  terms and  subject  to the
conditions  contained herein,  the Company shall issue and sell to Investor from
time to time as provided herein, and Investor shall purchase,  up to $20,000,000
(subject to  adjustment  below)(the  "Aggregate  Purchase  Price") of the Common
Stock (as defined below); and

     WHEREAS,  such  investments  will  be  made by the  Investor  as  statutory
underwriter of a registered  indirect  primary  offering of such Common Stock by
the Company.

     NOW,  THEREFORE,  in  consideration  of the  foregoing  premises,  and  the
promises and covenants  herein  contained,  the receipt and sufficiency of which
are hereby  acknowledged  by the parties  hereto,  the parties,  intending to be
legally bound, hereby agree as follows:

ARTICLE I

                               Certain Definitions

     Section 1.1 "Capital  Shares" shall mean the Common Stock and any shares of
any other class of common stock whether now or hereafter authorized,  having the
right to participate in the distribution of earnings and assets of the Company.

     Section 1.2 "Capital Shares Equivalents" shall mean any securities, rights,
or obligations  that are convertible  into or exchangeable for or give any right
to subscribe for any Capital  Shares of the Company or any warrants,  options or
other rights to subscribe for or purchase Capital Shares or any such convertible
or exchangeable securities.

     Section 1.3 "Closing" shall mean one of the closings of a purchase and sale
of the Common Stock pursuant to Section 2.1.

     Section 1.4 "Closing Date" shall mean, with respect to a Closing, the fifth
Trading Day following the end of the Valuation  Period  related to such Closing,
provided all  conditions  to such Closing have been  satisfied on or before such
Trading Day.

     Section  1.5  "Commitment  Amount"  shall mean an amount up to  $20,000,000
which the Investor has agreed to provide to the Company in order to purchase the
Put Shares  pursuant to the terms and conditions of this  Agreement,  and in the
event the Company obtains clearance by the Food and Drug Administration to begin
sales of its laser cataract product within 6 months of the initial Closing Date,
such Commitment Amount shall increase to $30,000,000.

     Section 1.6  "Commitment  Period"  shall mean the period  commencing on the
Effective  Date and  expiring on the  earliest to occur of (x) the date on which
the Investor shall have purchased  $20,000,000 (or, if applicable,  $30,000,000)
of Put  Shares  pursuant  to this  Agreement,  (y) the date  this  Agreement  is
terminated  pursuant to Section 2.4, or (z) the date occurring  thirty-six  (36)
months from the date of commencement of the Commitment Period.

     Section 1.7 "Common Stock" shall mean the Company's common stock, par value
$0.001 per share.

     Section 1.8 "Condition  Satisfaction Date" shall have the meaning set forth
in Section 7.2.

     Section 1.9 "Effective  Date" shall mean, if applicable,  the date on which
the SEC first declares effective a Registration  Statement  registering the sale
by the Company and resale by the Investor of the  Registrable  Securities as set
forth in Section 7.2(f).

     Section 1.10 "Escrow  Agent" shall mean the escrow agent  designated in the
Escrow Agreement.

     Section 1.11 "Escrow Agreement" shall mean the escrow agreement in the form
attached hereto as Exhibit A.

     Section 1.12 "Exchange Act" shall mean the Securities Exchange Act of 1934,
as amended, and the rules and regulations promulgated thereunder.

     Section  1.13  "Investment  Amount"  shall  mean the  dollar  amount  to be
invested by the  Investor to purchase Put Shares with respect to any Put Date as
notified by the Company to the  Investor,  all in  accordance  with  Section 2.2
hereof.

     Section 1.14 "Market Price" on any given date shall mean the lowest closing
bid price (as reported by Bloomberg  L.P.) of the Common Stock on the  Principal
Market during the Valuation Period applicable to such date.

     Section  1.15  "Material  Adverse  Effect"  shall  mean any  effect  on the
business,  closing bid price,  operations,  properties,  prospects, or financial
condition  of the Company  that is  material  and adverse to the Company and its
subsidiaries   and  affiliates,   taken  as  a  whole,   and/or  any  condition,
circumstance,  or situation that would prohibit or otherwise  interfere with the
ability of the Company to enter into and perform  any of its  obligations  under
this Agreement, the Registration Rights Agreement or the Escrow Agreement in any
material respect.

     Section 1.16 "Maximum Put Amount" shall mean $2,000,000 per Put, subject to
adjustments according to the following table:
<TABLE>
<CAPTION>

------------------------- ---------------------- ----------------------- ---------------------- ----------------------
                           25,000-50,000 Avg.     50,001-100,000 Avg.    100,001-150,000 Avg.    150,001-Above Avg.
Stock Closing Bid Price   30 Trading Day Volume  30 Trading Day Volume   30 Trading Day Volume  30 Trading Day Volume
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
<S>    <C>                     <C>                     <C>                    <C>                   <C>
       2.00-3.00                $750,000                $750,000              $1,000,000             $1,000,000
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
       3.01-5.00                $750,000               $1,000,000             $1,000,000             $1,250,000
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
       5.01-7.00               $1,000,000              $1,000,000             $1,250,000             $1,250,000
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
       7.01-9.00               $1,000,000              $1,250,000             $1,250,000             $1,500,000
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
       9.01-11.00              $1,250,000              $1,250,000             $1,500,000             $1,500,000
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
      11.01-13.00              $1,250,000              $1,500,000             $1,500,000             $1,750,000
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
      13.00-above              $1,500,000              $1,500,000             $1,750,000             $2,000,000
------------------------- ---------------------- ----------------------- ---------------------- ----------------------
</TABLE>

     Section  1.17 "NASD"  shall mean the  National  Association  of  Securities
Dealers, Inc.

     Section  1.18  "Outstanding"  when used with  reference to shares of Common
Stock or Capital Shares (collectively the "Shares"),  shall mean, at any date as
of  which  the  number  of such  Shares  is to be  determined,  all  issued  and
outstanding  Shares,  and shall  include all such Shares  issuable in respect of
outstanding scrip or any certificates  representing fractional interests in such
Shares;  provided,  however,  that "Outstanding"  shall not mean any such Shares
then directly or indirectly owned or held by or for the account of the Company.

     Section  1.19  "Person"  shall  mean  an  individual,   a  corporation,   a
partnership,  a limited  liability  company,  an  association,  a trust or other
entity or  organization,  including a government or political  subdivision or an
agency or instrumentality thereof.

     Section 1.20 "Principal  Market" shall mean the NASDAQ National Market, the
NASDAQ  SmallCap  Market,  the  American  Stock  Exchange  or the New York Stock
Exchange,  whichever is at the time the principal trading exchange or market for
the Common  Stock.  Principal  Market shall not include the OTC  Bulletin  Board
without the express written consent of the Investor.

     Section  1.21  "Purchase  Price"  shall mean with  respect  to Put  Shares,
eighty-eight percent (88%) (the "Purchase Price Percentage") of the Market Price
on the Trading Day immediately  following the Valuation  Period related to a Put
(or such other date on which the Purchase Price is calculated in accordance with
the  terms  and  conditions  of this  Agreement);  provided,  however,  that the
Purchase Price Percentage shall be reduced to eighty-five percent (85%) for Puts
relating to a Special Activity.

     Section 1.22 "Put" shall mean each occasion the Company  elects to exercise
its right to tender a Put Notice  requiring  the Investor to purchase  shares of
the Company's Common Stock, subject to the terms of this Agreement.

     Section  1.23 "Put Date" shall mean the  Trading Day during the  Commitment
Period  that a Put  Notice  to sell  Common  Stock  to the  Investor  is  deemed
delivered pursuant to Section 2.2(b) hereof.

     Section  1.24 "Put  Notice"  shall  mean a written  notice to the  Investor
setting  forth the  Investment  Amount that the  Company  intends to sell to the
Investor in the form attached hereto as Exhibit B.

     Section  1.25 "Put  Shares"  shall mean all shares of Common Stock or other
securities  issued or issuable  pursuant to a Put that has occurred or may occur
in accordance with the terms and conditions of this Agreement.

     Section  1.26  "Registrable  Securities"  shall mean the Put Shares and the
Warrant Shares until (i) all Put Shares and Warrant Shares have been disposed of
pursuant to the Registration  Statement,  (ii) all Put Shares and Warrant Shares
have been sold under circumstances under which all of the applicable  conditions
of Rule 144 (or any similar  provision  then in force) under the  Securities Act
("Rule  144")  are met,  (iii)  all Put  Shares  and  Warrant  Shares  have been
otherwise  transferred to persons who may trade such shares without  restriction
under the  Securities  Act, and the Company has delivered a new  certificate  or
other evidence of ownership for such securities not bearing a restrictive legend
or (iv) such time as, in the opinion of counsel to the  Company,  all Put Shares
and Warrant  Shares may be sold without any time,  volume or manner  limitations
pursuant  to Rule  144(k) (or any similar  provision  then in effect)  under the
Securities Act.

     Section  1.27  "Registration  Rights  Agreement"  shall mean the  agreement
regarding the filing of a further Registration Statement, if applicable, for the
sale and resale of the Registrable Securities annexed hereto as Exhibit C.

     Section 1.28 "Registration Statement" shall mean the registration statement
filed on January 6, 2000 on Form S-3 or any subsequent  registration  statement,
if required pursuant to the Registration  Rights Agreement,  on Form S-3 (if use
of such form is then  available to the Company  pursuant to the rules of the SEC
and,  if not,  on such other form  promulgated  by the SEC,  such as Form S-1 or
SB-2,  for which the Company then  qualifies  and which  counsel for the Company
shall deem appropriate,  and which form shall be available for the resale by the
Investor of the Registrable Securities to be registered thereunder in accordance
with the provisions of this Agreement, the Registration Rights Agreement, and in
accordance with the intended method of distribution of such securities), for the
registration of the resale by the Investor of the Registrable  Securities  under
the Securities Act.

     Section 1.29 "SEC" shall mean the Securities and Exchange Commission.

     Section 1.30  "Securities  Act" shall mean the  Securities  Act of 1933, as
amended.

     Section 1.31 "SEC Documents"  shall mean the Company's  latest Form 10-K or
10-KSB  as of the time in  question,  all  Forms 10-Q  or  10-QSB  and 8-K filed
thereafter, and the Proxy Statement for its latest fiscal year as of the time in
question  until such time as the Company no longer has an obligation to maintain
the  effectiveness of a Registration  Statement as set forth in the Registration
Rights Agreement.

     Section 1.32 "Special  Activity" shall mean any one time charge the Company
expects to incur for any reason,  including,  without limitation,  in connection
with the acquisition of another business.

     Section  1.33  "Threshold  Price" is the lowest  Market  Price at which the
Company will sell its Common Stock with respect to this Agreement.

     Section  1.34  "Trading  Cushion"  shall mean the  mandatory  fifteen  (15)
Trading Days between Put Dates,  unless waived by the Investor.  Notwithstanding
the foregoing,  in the event the Company gives the Investor twenty-one (21) days
notice of a Special Activity, the Trading Cushion shall be adjusted to seven (7)
Trading Days for a period of seven (7) consecutive weeks.

     Section 1.35 "Valuation  Event" shall mean an event in which the Company at
any time prior to the end of the  Commitment  Period takes any of the  following
actions:

         (a) subdivides or combines its Common Stock;

         (b)  pays  a  dividend  on  its  Capital  Shares  or  makes  any  other
distribution of its Capital Shares;

         (c) issues any additional Capital Shares ("Additional Capital Shares"),
otherwise than as provided in the foregoing Subsections (a) and (b) above or (d)
and (e) below, at a price per share less, or for other consideration lower, than
the closing bid price in effect  immediately prior to such issuance,  or without
consideration (other than pursuant to this Agreement);

         (d) issues any  warrants,  options or other rights to subscribe  for or
purchase  any  Additional  Capital  Shares  and the  price  per  share for which
Additional  Capital  Shares may at any time  thereafter be issuable  pursuant to
such warrants,  options or other rights shall be less than the closing bid price
in effect immediately prior to such issuance;

         (e) issues any securities  convertible into or exchangeable for Capital
Shares and the consideration  per share for which Additional  Capital Shares may
at any time thereafter be issuable  pursuant to the terms of such convertible or
exchangeable  securities  shall be less  than the  closing  bid  price in effect
immediately prior to such issuance;

         (f) makes a distribution  of its assets or evidences of indebtedness to
the holders of its  Capital  Shares as a dividend  in  liquidation  or by way of
return of capital or other than as a dividend payable out of earnings or surplus
legally available for dividends under applicable law or any distribution to such
holders made in respect of the sale of all or substantially all of the Company's
assets  (other  than  under  the  circumstances  provided  for in the  foregoing
subsections (a) through (e); or

         (g) takes any  action  affecting  the  number  of  Outstanding  Capital
Shares,  other than an action described in any of the foregoing  Subsections (a)
through (f) hereof,  inclusive,  which in the opinion of the Company's  Board of
Directors,  determined in good faith,  would have a Material Adverse Effect upon
the rights of the Investor at the time of a Put.

     Section 1.36  "Valuation  Period" shall mean the period of five (5) Trading
Days beginning two (2) Trading Days before the Trading Day on which a Put Notice
is deemed to be  delivered  and  ending  two (2)  Trading  Days after such date;
provided, however, that if a Valuation Event occurs during a Valuation Period, a
new  Valuation  Period  shall  begin on the Trading  Day  immediately  after the
occurrence  of such  Valuation  Event and end on the  fifth  (5th)  Trading  Day
thereafter.

     Section  1.37  "Warrants"  shall  mean the  50,000  Common  Stock  Purchase
Warrants in the form of Exhibit D hereto to be  delivered to the Investor at the
initial Closing. "Warrant Shares" shall mean the shares of Common Stock issuable
upon exercise of the Warrants.

                                   ARTICLE II

                        Purchase and Sale of Common Stock

     Section 2.1 Investments.

         (a) Puts.  Upon the terms and conditions  set forth herein  (including,
without  limitation,  the provisions of Article VII hereof), on any Put Date the
Company may make a Put by the delivery of a Put Notice. The number of Put Shares
that the Investor  shall  receive  pursuant to such Put shall be  determined  by
dividing the Investment Amount specified in the Put Notice by the Purchase Price
for such Valuation Period. In connection with each Valuation Period, the Company
may set the Threshold  Price, if any, in the Put Notice.  If the Market Price is
less than the  Threshold  Price,  the Company  shall not sell and the  Purchaser
shall not be obligated to purchase the Shares otherwise to be purchased for such
Put, except that, the Investor, in its sole discretion, may purchase such shares
at the Threshold Price.

         (b) Maximum Aggregate Amount of Puts. Anything in this Agreement to the
contrary  notwithstanding,  (i) at no time will the Company  request a Put which
would result in the  issuance of an  aggregate  number of shares of Common Stock
pursuant to this Agreement which exceeds 19.9% of the number of shares of Common
Stock issued and outstanding on any Closing Date without  obtaining  stockholder
approval of such excess issuance, and (ii) the Company may not make a Put to the
extent  that,  after such  purchase  by the  Investor,  the sum of the number of
shares of Common Stock and Warrants  beneficially  owned by the Investor and its
affiliates  would  result  in  beneficial  ownership  by the  Investor  and  its
affiliates of more than 9.9% of the then outstanding shares of Common Stock. For
purposes of the immediately  preceding sentence,  beneficial  ownership shall be
determined in accordance  with Section 13(d) of the  Securities and Exchange Act
of 1934, as amended.

     Section 2.2 Mechanics.

         (a) Put Notice. At any time during the Commitment  Period,  the Company
may deliver a Put Notice to the Investor, subject to the conditions set forth in
Section  7.2;  provided,  however,  that the  Investment  Amount for each Put as
designated  by the Company in the  applicable  Put Notice  shall be neither less
than $500,000 nor more than the Maximum Put Amount.

         (b) Date of  Delivery  of Put  Notice.  A Put  Notice  shall be  deemed
delivered on (i) the Trading Day it is received by facsimile or otherwise by the
Investor if such notice is received  prior to 12:00 noon Eastern  Time,  or (ii)
the  immediately  succeeding  Trading  Day if it is  received  by  facsimile  or
otherwise after 12:00 noon Eastern Time on a Trading Day or at any time on a day
which is not a Trading Day. No Put Notice may be deemed  delivered on a day that
is not a Trading Day.

     Section 2.3 Closings. On or before each Closing Date for a Put the Investor
shall deliver the Investment Amount specified in the Put Notice by wire transfer
of immediately  available funds to the Escrow Agent. In addition, on or prior to
the Closing  Date,  each of the Company and the  Investor  shall  deliver to the
Escrow Agent all documents, instruments and writings required to be delivered or
reasonably  requested by either of them  pursuant to this  Agreement in order to
implement  and effect the  transactions  contemplated  herein.  Upon  receipt of
notice  from the  Escrow  Agent  that the  Escrow  Agent has  possession  of the
Investment Amount, the Company shall, if possible, deliver the Put Shares to the
Investor's account through the Depository Trust Company DWAC system, per written
account  instructions  delivered  by the  Investor  to the  Company,  and if the
Company is not eligible to  participate  in the DWAC  system,  to deliver to the
Escrow  Agent  one  or  more   certificates,   as  requested  by  the  Investor,
representing the Put Shares to be purchased by the Investor  pursuant to Section
2.1 herein, registered in the name of the Investor or, at the Investor's option,
registered  in the name of such account or accounts as may be  designated by the
Investor.  Payment of funds to the Company and delivery of the  certificates  to
the Investor (unless  delivered by DWAC) shall occur out of escrow in accordance
with the Escrow Agreement, provided, however, that to the extent the Company has
not paid the fees,  expenses,  and  disbursements  of the Investor's  counsel in
accordance  with  Section  13.7,  the  amount  of  such  fees,   expenses,   and
disbursements shall be paid in immediately  available funds, at the direction of
the  Investor,  to  Investor's  counsel  with no  reduction in the number of Put
Shares issuable to the Investor on such Closing Date.

     Section 2.4 Termination of Investment Obligation.

         (a) The  obligation of the Investor to purchase  shares of Common Stock
shall terminate  permanently  (including with respect to a Closing Date that has
not yet  occurred)  in the event  that (i) there  shall  occur any stop order or
suspension of the  effectiveness of the Registration  Statement for an aggregate
of thirty (30) Trading Days during the Commitment  Period,  for any reason other
than  deferrals  or  suspensions  in  accordance  with the  Registration  Rights
Agreement as a result of corporate developments subsequent to the Effective Date
that would  require  such  Registration  Statement to be amended to reflect such
event in order to maintain its compliance  with the disclosure  requirements  of
the Securities Act or (ii) the Company shall at any time fail to comply with the
requirements of Section 6.2, 6.3 or 6.5.

         (b) The  obligation  of the Company to sell Put Shares to the  Investor
shall  terminate  if the Investor  fails to honor any Put Notice  within two (2)
Trading Days of the Closing Date scheduled for such Put, or otherwise becomes in
breach of any material  representation,  warranty,  covenant or other obligation
under this  Agreement  including,  without  limitation,  all  exhibits  attached
hereto,  and the  Company  notifies  Investor  of such  termination.  Upon  such
termination, the Company shall maintain the Registration Statement in effect for
such reasonable  period, not to exceed forty-five (45) days, as the Investor may
request in order to dispose of any remaining Put Shares.  Such termination shall
be the Company's sole remedy for the Investor's failure to honor a Put. However,
if Investor  fails to honor any Put Notice  within two (2) Trading  Days of such
Closing  Date,  and the  Company  has  notified  Investor  of such  termination,
Investor shall return a proportionate amount of the 5,000 shares of Common Stock
and  Warrants  still held by the  Investor  delivered to Investor at the initial
Closing if the  aggregate  amount of Put Shares  which the  Investor  shall have
purchased  as of such  termination  has not exceeded  $5,000,000.  The amount of
Common  Stock and  Warrants  still held by the  Investor  to be  returned to the
Company shall be determined as follows:

          (i) If the aggregate  amount of Put Shares which  Investor  shall have
          purchased at such termination is less than $1,250,000,  Investor shall
          return 5,000 shares of Common Stock all of the Warrants  still held by
          the Investor;

          (ii) If the aggregate  amount of Put Shares which  Investor shall have
          purchased at such termination is $1,250,000 or greater,  but less than
          $2,500,000,  Investor  shall  return  3,750 shares of Common Stock and
          37,500  Warrants,  or if less than 37, 500  Warrants are still held by
          the Investor, all of the remaining Warrants;

          (iii) If the aggregate  amount of Put Shares which Investor shall have
          purchased at such termination is $2,500,000 or greater,  but less than
          $3,750,000,  Investor  shall  return  2,500 shares of Common Stock and
          25,000  Warrants,  or if less than 25,000  Warrants  are still held by
          Investor, all of the remaining Warrants; and

          (iv) If the aggregate  amount of Put Shares which  Investor shall have
          purchased at such termination is $3,750,000 or greater,  but less than
          $5,000,000,  Investor  shall return  1,2500 shares of Common Stock and
          12,500  Warrants,  or if less than 12,500  Warrants  are still held by
          Investor, all of the remaining Warrants.

     Section  2.5  Additional  Shares.  In the event  that (a)  within  five (5)
Trading Days of any Closing Date, the Company gives notice to the Investor of an
impending  "blackout period" in accordance with Section 3(f) of the Registration
Rights  Agreement  and (b) the closing bid price on the Trading Day  immediately
preceding such "blackout  period" (the "Old Closing  price") is greater than the
closing bid price on the first Trading Day following such "blackout period" (the
"New  Closing  price")  the  Company  shall  issue to the  Investor  a number of
additional  shares (the "Blackout  Shares") equal to the difference  between (y)
the product of the number of Registrable Securities purchased by the Investor on
such  most  recent  Closing  Date and still  held by the  Investor  during  such
"blackout  period" that are not otherwise  freely tradable during such "blackout
period" and the Old Closing price,  divided by the New Closing price and (z) the
number of Registrable  Securities  purchased by the Investor on such most recent
Closing Date and still held by the Investor  during such "blackout  period" that
are not otherwise  freely  tradable during such "blackout  period".  If any such
issuance  would result in the  issuance of a number of shares which  exceeds the
number set forth in Section 2.1(b),  then in lieu of such issuance,  the Company
shall pay  Investor  the closing ask price of the  Blackout  Shares on the first
Trading Day following the end of the blackout period in cash within five Trading
Days.

     Section 2.5 Liquidated  Damages.  The parties hereto  acknowledge and agree
that the  obligation  to issue  Registrable  Securities  under Section 2.5 above
shall  constitute  liquidated  damages and not  penalties.  The parties  further
acknowledge  that (a) the amount of loss or  damages  likely to be  incurred  is
incapable or is difficult to precisely  estimate,  (b) the amounts  specified in
such  Sections  bear a  reasonable  proportion  and are not  plainly  or grossly
disproportionate  to the probable  loss likely to be incurred by the Investor in
connection  with the failure by the Company to timely cause the  registration of
the Registrable  Securities or in connection with a "blackout  period" under the
Registration  Rights Agreement,  and (c) the parties are sophisticated  business
parties and have been represented by legal and financial  counsel and negotiated
this Agreement at arm's length.

                                  ARTICLE III

                   Representations and Warranties of Investor

Investor represents and warrants to the Company that:

     Section 3.1 Intent.  The Investor is entering  into this  Agreement for its
own account and the Investor has no present arrangement  (whether or not legally
binding)  at any time to sell the  Common  Stock to or  through  any  person  or
entity;  provided,  however,  that by making  the  representations  herein,  the
Investor  does not  agree to hold the  Common  Stock  for any  minimum  or other
specific  term and reserves the right to dispose of the Common Stock at any time
in  accordance  with  federal  and  state  securities  laws  applicable  to such
disposition.

     Section  3.2  Sophisticated  Investor.  The  Investor  is  a  sophisticated
investor (as described in Rule  506(b)(2)(ii) of Regulation D) and an accredited
investor  (as  defined  in Rule 501 of  Regulation  D),  and  Investor  has such
experience in business and financial matters that it has the capacity to protect
its own  interests  in  connection  with  this  transaction  and is  capable  of
evaluating  the merits and risks of an investment in Common Stock.  The Investor
acknowledges  that an investment in the Common Stock is speculative and involves
a high degree of risk.

     Section 3.3 Authority.  This Agreement has been duly authorized and validly
executed and  delivered by the Investor and is a valid and binding  agreement of
the Investor  enforceable  against it in accordance  with its terms,  subject to
applicable  bankruptcy,  insolvency,  or similar laws  relating to, or affecting
generally  the  enforcement  of,  creditors'  rights  and  remedies  or by other
equitable principles of general application.

     Section  3.4 Not an  Affiliate.  Investor  is not an  officer,  director or
"affiliate"  (as that term is defined in Rule 405 of the Securities  Act) of the
Company.

     Section 3.5  Organization  and  Standing.  Investor is a  corporation  duly
organized,  validly  existing,  and in good  standing,  and has  all  legal  and
corporate  authority to enter into and perform this Agreement in accordance with
its terms, under the laws of the British Virgin Islands.

     Section  3.6  Absence of  Conflicts.  The  execution  and  delivery of this
Agreement and any other document or instrument executed in connection  herewith,
and the consummation of the transactions  contemplated  thereby,  and compliance
with the  requirements  thereof,  will not  violate any law,  rule,  regulation,
order,  writ,  judgment,  injunction,  decree,  administrative  action  or award
binding on Investor, or, to the Investor's knowledge,  (a) violate any provision
of any  indenture,  instrument  or agreement to which  Investor is a party or is
subject,  or by which Investor or any of its assets is bound;  (b) conflict with
or  constitute  a material  default  thereunder;  (c) result in the  creation or
imposition of any lien pursuant to the terms of any such  indenture,  instrument
or agreement,  or constitute a breach of any fiduciary  duty owed by Investor to
any third party; or (d) require the approval of any  third-party  (which has not
been  obtained)  pursuant  to  any  material  contract,  agreement,  instrument,
relationship or legal obligation to which Investor is subject or to which any of
its assets, operations or management may be subject.

     Section 3.7  Disclosure;  Access to  Information.Investor  has received and
reviewed all documents,  records, books and other publicly available information
pertaining to Investor's  investment in the Company that have been  requested by
Investor.  The Company is subject to the periodic reporting  requirements of the
Exchange  Act, and  Investor  has reviewed  copies of any such reports that have
been requested by it.

     Section  3.8  Manner of Sale.  At no time was  Investor  presented  with or
solicited  by or through any leaflet,  public  promotional  meeting,  television
advertisement or any other form of general solicitation or advertising.

     Section  3.9  Financial  Capacity.  Investor  currently  has the  financial
capacity to meet its obligations to the Company hereunder,  and the Investor has
no present knowledge of any circumstances  which could cause it to become unable
to meet such obligations in the future.

     Section 3.10  Underwriter  Liability.  Investor  understands that it is the
position of the SEC that the  Investor is an  underwriter  within the meaning of
Section 2(11) of the  Securities Act and that the Investor will be identified as
an underwriter of the Put Shares in the Registration Statement.

                                   ARTICLE IV

                  Representations and Warranties of the Company

The Company represents and warrants to the Investor that, except as set forth on
the Disclosure Schedule prepared by the Company and attached hereto:

     Section 4.1 Organization of the Company.  The Company is a corporation duly
incorporated  and  existing  in good  standing  under  the laws of the  State of
Delaware and has all requisite  corporate authority to own its properties and to
carry on its  business as now being  conducted.  The  Company  does not have any
subsidiaries  and does not own more that fifty  percent  (50%) of or control any
other business  entity except as set forth in the SEC Documents.  The Company is
duly  qualified and is in good standing as a foreign  corporation to do business
in every  jurisdiction in which the nature of the business conducted or property
owned by it makes such  qualification  necessary,  other than those in which the
failure so to qualify would not have a Material Adverse Effect.

     Section 4.2 Authority.  (i) The Company has the requisite  corporate  power
and  corporate  authority to enter into and perform its  obligations  under this
Agreement,  the Registration  Rights Agreement,  the Escrow  Agreement,  and the
Warrants  and to issue the Put  Shares,  the  Warrants  and the  Warrant  Shares
pursuant to their respective terms, (ii) the execution, issuance and delivery of
this Agreement,  the Registration Rights Agreement, the Escrow Agreement and the
Warrants  by  the  Company  and  the  consummation  by  it of  the  transactions
contemplated  hereby have been duly authorized by all necessary corporate action
and no further consent or authorization of the Company or its Board of Directors
or stockholders is required,  and (iii) this Agreement,  the Registration Rights
Agreement,  the Escrow  Agreement  and the Warrants  have been duly executed and
delivered by the Company and at the initial Closing shall  constitute  valid and
binding obligations of the Company enforceable against the Company in accordance
with their terms,  except as such  enforceability  may be limited by  applicable
bankruptcy,  insolvency, or similar laws relating to, or affecting generally the
enforcement of, creditors' rights and remedies or by other equitable  principles
of general application. The Company has duly and validly authorized and reserved
for issuance shares of Common Stock sufficient in number for the issuance of the
Put Shares and for the exercise of the Warrants

     Section 4.3  Capitalization.  The  authorized  capital stock of the Company
consists of 20,000,000  shares of Common Stock,  $0.001 par value per share,  of
which  10,083,990  shares are issued and  outstanding  and  5,000,000  shares of
preferred  stock of which 500,000 are designated as Series A Preferred  Stock of
which  8,077 are issued and  outstanding,  of which  500,000 are  designated  as
Series B Preferred  Stock of which 15,236 are issued and  outstanding,  of which
30,000 are  designated as Series C Preferred  Stock of which none are issued and
outstanding and of which 1,140,000 are designated as Series D Preferred Stock of
which  283,328  are issued and  outstanding.  The  Company is not a party to any
agreement  granting  registration  or  anti-dilution  rights to any person  with
respect to any of its equity or debt securities.  All of the outstanding  shares
of Common Stock of the Company have been duly and validly  authorized and issued
and are fully paid and non-assessable.

     Section  4.4 Common  Stock.  The Company has  registered  its Common  Stock
pursuant to Section  12(b) or (g) of the Exchange Act and is in full  compliance
with all  reporting  requirements  of the  Exchange  Act,  and the Company is in
compliance with all requirements  for the continued  listing or quotation of its
Common  Stock,  and such  Common  Stock is  currently  listed or quoted  on, the
Principal  Market.  As of the date hereof,  the  Principal  Market is the NASDAQ
SmallCap  Market and the Company has not received any notice  regarding,  and to
its knowledge there is no threat,  of the termination or  discontinuance  of the
eligibility of the Common Stock for such listing.

<PAGE>

     Section 4.5 SEC  Documents.  The Company has made available to the Investor
true and complete  copies of the SEC Documents.  The Company has not provided to
the  Investor  any  information  that,  according  to  applicable  law,  rule or
regulation,  should have been disclosed publicly prior to the date hereof by the
Company, but which has not been so disclosed.  As of their respective dates, the
SEC Documents  complied in all material  respects with the  requirements  of the
Exchange Act, and rules and  regulations of the SEC  promulgated  thereunder and
the SEC  Documents  did not contain any untrue  statement of a material  fact or
omit to state a material  fact  required to be stated  therein or  necessary  in
order to make the statements  therein, in light of the circumstances under which
they were made, not misleading. The financial statements of the Company included
in  the  SEC  Documents  complied  in  all  material  respects  with  applicable
accounting  requirements  and the published  rules and regulations of the SEC or
other  applicable rules and regulations with respect thereto at the time of such
inclusion.  Such  financial  statements  have been prepared in  accordance  with
generally  accepted  accounting  principles applied on a consistent basis during
the periods involved (except (i) as may be otherwise indicated in such financial
statements  or the  notes  thereto  or (ii) in the  case  of  unaudited  interim
statements,  to the extent they exclude footnotes or may be condensed or summary
statements) and fairly present in all material  respects the financial  position
of the Company as of the dates  thereof and the results of  operations  and cash
flows for the periods  then ended  (subject,  in the case of  unaudited  interim
statements,  to normal year-end audit adjustments).  Neither the Company nor any
of its subsidiaries has any material indebtedness, obligations or liabilities of
any kind (whether accrued, absolute, contingent or otherwise, and whether due or
to become  due) that would  have been  required  to be  reflected  in,  reserved
against or  otherwise  described  in the  financial  statements  or in the notes
thereto in accordance  with GAAP,  which was not fully  reflected  in,  reserved
against or otherwise described in the financial  statements or the notes thereto
included in the SEC  Documents  or was not  incurred in the  ordinary  course of
business  consistent  with the Company's past  practices  since the last date of
such financial statements.

     Section 4.6 Valid  Issuances.  When issued and paid for in accordance  with
the terms hereof or of the Warrants,  the Put Shares and the Warrant Shares will
be duly and validly issued, fully paid, and non-assessable. Neither the sales of
the Put  Shares,  the  Warrants  or the  Warrant  Shares  pursuant  to,  nor the
Company's performance of its obligations under, this Agreement, the Registration
Rights  Agreement,  the Escrow  Agreement or the Warrants will (i) result in the
creation or  imposition  by the Company of any liens,  charges,  claims or other
encumbrances upon the Put Shares,  the Warrants or the Warrant Shares or, except
as contemplated  herein,  any of the assets of the Company,  or (ii) entitle the
holders of Outstanding Capital Shares to preemptive or other rights to subscribe
for or acquire the Capital  Shares or other  securities of the Company.  The Put
Shares,  the Warrants  and the Warrant  Shares shall not subject the Investor to
personal  liability to the Company or its creditors by reason of the  possession
thereof.

     Section 4.7 No Conflicts.  The execution,  delivery and performance of this
Agreement by the Company and the consummation by the Company of the transactions
contemplated  hereby,  including  without  limitation  the  issuance  of the Put
Shares, the Warrants and the Warrant Shares, do not and will not (i) result in a
violation of the Company's Articles of Incorporation or By-Laws or (ii) conflict
with, or constitute a material default (or an event that with notice or lapse of
time or both  would  become a  default)  under,  or give to others any rights of
termination, amendment, acceleration or cancellation of, any material agreement,
indenture  or  instrument,   or  any  "lock-up"  or  similar  provision  of  any
underwriting  or similar  agreement  to which the  Company is a party,  or (iii)
result in a violation  of any  federal,  state or local law,  rule,  regulation,
order,  judgment  or decree  (including  federal and state  securities  laws and
regulations)  applicable  to the  Company or by which any  material  property or
asset of the  Company is bound or  affected,  nor is the  Company  otherwise  in
violation of,  conflict  with or default  under any of the foregoing  (except in
each case for such conflicts, defaults, terminations, amendments, accelerations,
cancellations  and  violations  as  would  not  have,  individually  or  in  the
aggregate,  a Material Adverse Effect). The business of the Company is not being
conducted in violation of any law,  ordinance or regulation of any  governmental
entity,  except for possible  violations  that either singly or in the aggregate
would not have a Material Adverse Effect.  The Company is not required under any
Federal,  state  or  local  law,  rule or  regulation  to  obtain  any  consent,
authorization or order of, or make any filing or registration with, any court or
governmental  agency in order for it to  execute,  deliver or perform any of its
obligations  under  this  Agreement  or issue  and sell  the Put  Shares  or the
Warrants in  accordance  with the terms  hereof  (other than any SEC,  Principal
Market  or  state  securities  filings  that may be  required  to be made by the
Company subsequent to the initial Closing,  any registration  statement that may
be filed pursuant  hereto,  and any shareholder  approval  required by the rules
applicable  to companies  whose common  stock trades on the  Principal  Market);
provided that,  for purposes of the  representation  made in this sentence,  the
Company  is  assuming   and   relying   upon  the   accuracy  of  the   relevant
representations and agreements of the Investor herein.

     Section 4.8 No Material  Adverse  Change.  Since March 31, 2000 no Material
Adverse  Effect has occurred or exists with  respect to the  Company,  except as
disclosed in the SEC Documents.

     Section 4.9 No Undisclosed  Events or Circumstances.  Since March 31, 2000,
no event or  circumstance  has occurred or exists with respect to the Company or
its businesses,  properties, prospects, operations or financial condition, that,
under  applicable  law,  rule  or  regulation,  requires  public  disclosure  or
announcement  prior to the date  hereof by the Company but which has not been so
publicly announced or disclosed in the SEC Documents.

     Section 4.10 Litigation and Other  Proceedings.  Except as disclosed in the
SEC Documents, there are no lawsuits or proceedings pending or, to the knowledge
of the Company,  threatened,  against the Company or any subsidiary, nor has the
Company received any written or oral notice of any such action, suit, proceeding
or investigation,  which could reasonably be expected to have a Material Adverse
Effect.  Except as set forth in the SEC  Documents,  no judgment,  order,  writ,
injunction  or decree or award has been  issued by or, to the  knowledge  of the
Company,  requested of any court,  arbitrator or governmental agency which could
result in a Material Adverse Effect.

     Section 4.11 No Misleading or Untrue Communication. The Company and, to the
knowledge  of the Company,  any person  representing  the Company,  or any other
person  selling or offering to sell the Put Shares or the Warrants in connection
with the transaction contemplated by this Agreement, have not made, at any time,
any oral  communication  in connection  with the offer or sale of the same which
contained  any  untrue  statement  of a  material  fact or  omitted to state any
material  fact  necessary in order to make the  statements,  in the light of the
circumstances under which they were made, not misleading.

     Section 4.12 Material Non-Public Information. The Company has not disclosed
to the  Investor  any  material  non-public  information  that (i) if  disclosed
publicly, would reasonably be expected to have a material effect on the price of
the Common Stock or (ii) according to applicable law, rule or regulation, should
have been  disclosed  publicly by the Company prior to the date hereof but which
has not been so disclosed.

     Section 4.13 Insurance.  The Company and each subsidiary maintains property
and casualty,  general liability,  workers' compensation,  environmental hazard,
personal injury and other similar types of insurance with financially  sound and
reputable insurers that is adequate,  consistent with industry standards and the
Company's  historical  claims  experience.  The Company has not received  notice
from,  and has no knowledge  of any threat by, any insurer  (that has issued any
insurance  policy to the  Company)  that such insurer  intends to deny  coverage
under or cancel,  discontinue  or not renew any  insurance  policy  presently in
force.

     Section 4.14 Tax Matters.

     The  Company  and each  subsidiary  has filed all Tax  Returns  which it is
required  to file  under  applicable  laws;  all such Tax  Returns  are true and
accurate and has been  prepared in  compliance  with all  applicable  laws;  the
Company has paid all Taxes due and owing by it or any subsidiary (whether or not
such Taxes are required to be shown on a Tax Return) and have  withheld and paid
over to the  appropriate  taxing  authorities  all Taxes which it is required to
withhold  from amounts paid or owing to any employee,  stockholder,  creditor or
other third  parties;  and since  December 31, 1998,  the charges,  accruals and
reserves for Taxes with respect to the Company  (including  any  provisions  for
deferred  income  taxes)  reflected  on the books of the Company are adequate to
cover any Tax liabilities of the Company if its current tax year were treated as
ending on the date hereof.

     No claim has been made by a taxing  authority in a  jurisdiction  where the
Company does not file tax returns that the Company or any  subsidiary  is or may
be subject to taxation  by that  jurisdiction.  There are no  foreign,  federal,
state or local tax audits or administrative or judicial  proceedings  pending or
being  conducted with respect to the Company or any  subsidiary;  no information
related to Tax matters has been  requested  by any  foreign,  federal,  state or
local taxing  authority;  and,  except as  disclosed  above,  no written  notice
indicating  an intent to open an audit or other review has been  received by the
Company or any  subsidiary  from any  foreign,  federal,  state or local  taxing
authority.  There are no material unresolved  questions or claims concerning the
Company's  Tax  liability.  The Company (A) has not  executed or entered  into a
closing agreement pursuant to (section) 7121 of the Internal Revenue Code or any
predecessor  provision  thereof  or any  similar  provision  of state,  local or
foreign  law;  and (B) has not agreed to or is required to make any  adjustments
pursuant  to  (section)  481 (a) of the  Internal  Revenue  Code or any  similar
provision  of state,  local or foreign  law by reason of a change in  accounting
method  initiated by the Company or any of its subsidiaries or has any knowledge
that the IRS has proposed any such adjustment or change in accounting method, or
has any application pending with any taxing authority requesting  permission for
any changes in  accounting  methods that relate to the business or operations of
the  Company.  The Company has not been a United  States real  property  holding
corporation  within the meaning of (section)  897(c)(2) of the Internal  Revenue
Code during the applicable period specified in (section) 897(c)(1)(A)(ii) of the
Internal Revenue Code.

     The Company has not made an election under (section) 341(f) of the Internal
Revenue Code.  The Company is not liable for the Taxes of another person that is
not a subsidiary of the Company  under (A) Treas.  Reg.  (section)  1.1502-6 (or
comparable  provisions of state,  local or foreign law),  (B) as a transferee or
successor,  (C) by contract or indemnity or (D) otherwise.  The Company is not a
party to any tax sharing  agreement.  The Company has not made any payments,  is
obligated to make payments or is a party to an agreement  that could obligate it
to make any payments that would not be deductible  under  (section)  280G of the
Internal Revenue Code.

          For purposes of this Section 4.14:

          "IRS" means the United States Internal Revenue Service.

               Tax" or "Taxes" means federal,  state, county, local, foreign, or
          other income, gross receipts, ad valorem, franchise, profits, sales or
          use,   transfer,   registration,   excise,   utility,   environmental,
          communications,  real or personal  property,  capital stock,  license,
          payroll,  wage or  other  withholding,  employment,  social  security,
          severance, stamp, occupation, alternative or add-on minimum, estimated
          and other taxes of any kind whatsoever (including, without limitation,
          deficiencies,  penalties,  additions to tax, and interest attributable
          thereto) whether disputed or not.

               "Tax Return" means any return,  information report or filing with
          respect  to  Taxes,  including  any  schedules  attached  thereto  and
          including any amendment thereof.

     Section 4.15 Property. Neither the Company nor any of its subsidiaries owns
any  real  property.  Each of the  Company  and its  subsidiaries  has  good and
marketable  title to all  personal  property  owned by it, free and clear of all
liens,  encumbrances  and defects  except such as do not  materially  affect the
value of such  property and do not  materially  interfere  with the use made and
proposed  to be made of  such  property  by the  Company;  and to the  Company's
knowledge  any real  property and  buildings  held under lease by the Company as
tenant are held by it under valid,  subsisting and enforceable  leases with such
exceptions  as are not  material  and do not  interfere  with  the use  made and
intended to be made of such property and buildings by the Company.

     Section  4.16  Licensing  and  Permits.  The  Company  holds all  necessary
licenses and permits for the conduct of its  business,  including  licenses with
the FDA. All of such  licenses and permits are in good  standing and the Company
is not in material default of any of the conditions thereof.

     Section  4.17   Intellectual   Property.   Each  of  the  Company  and  its
subsidiaries  owns or  possesses  adequate  and  enforceable  rights  to use all
patents, patent applications,  trademarks,  trademark applications, trade names,
service marks, copyrights, copyright applications, licenses, know-how (including
trade  secrets  and  other  unpatented   and/or   unpatentable   proprietary  or
confidential  information,  systems or procedures)  and other similar rights and
proprietary knowledge (collectively, "Intangibles") necessary for the conduct of
its  business as now being  conducted.  To the  Company's  knowledge,  except as
disclosed in the SEC Documents  neither the Company nor any of its  subsidiaries
is  infringing  upon or in  conflict  with any  right of any other  person  with
respect to any Intangibles. Except as disclosed in the SEC Documents, no adverse
claims  have  been  asserted  by  any  person  to  the  ownership  or use of any
Intangibles and the Company has no knowledge of any basis for such claim.

     Section 4.18 Internal Controls and Procedures.  The Company maintains books
and records and internal accounting controls which provide reasonable  assurance
that (i) all  transactions  to which the Company or any subsidiary is a party or
by which its properties are bound are executed with management's  authorization;
(ii) the recorded  accounting of the Company's  consolidated  assets is compared
with  existing  assets at  regular  intervals;  (iii)  access  to the  Company's
consolidated   assets  is  permitted  only  in  accordance   with   management's
authorization;  and (iv) all transactions to which the Company or any subsidiary
is a party or by which its  properties  are bound are  recorded as  necessary to
permit preparation of the financial statements of the Company in accordance with
U.S. generally accepted accounting principles.

     Section  4.19  Payments  and  Contributions.   Neither  the  Company,   any
subsidiary,  nor any of its  directors,  officers  or, to its  knowledge,  other
employees  has  (i)  used  any  Company  funds  for any  unlawful  contribution,
endorsement, gift, entertainment or other unlawful expense relating to political
activity;  (ii) made any direct or indirect unlawful payment of Company funds to
any foreign or domestic government official or employee; (iii) violated or is in
violation of any  provision of the Foreign  Corrupt  Practices  Act of 1977,  as
amended; or (iv) made any bribe, rebate, payoff, influence payment,  kickback or
other similar payment to any person with respect to Company matters.

     Section 4.20 No  Misrepresentation.  The  representations and warranties of
the Company contained in this Agreement,  any schedule,  annex or exhibit hereto
and any  agreement,  instrument or  certificate  furnished by the Company to the
Investor  pursuant to this Agreement,  do not contain any untrue  statement of a
material fact or omit to state a material fact required to be stated  therein or
necessary to make the statements  therein,  in light of the circumstances  under
which they were made, not misleading.

                                   ARTICLE V

                            Covenants of the Investor

     Investor covenants with the Company that:

     Section 5.1 Compliance  with Law. The Investor's  trading  activities  with
respect to shares of the Company's  Common Stock will be in compliance  with all
applicable  state and federal  securities  laws, rules and regulations and rules
and regulations of the Principal  Market on which the Company's  Common Stock is
listed.  Without  limiting the generality of the foregoing,  the Investor agrees
that it  will,  whenever  required  by  federal  securities  laws,  deliver  the
prospectus included in the Registration Statement to any purchaser of Put Shares
from the Investor.

     Section 5.2 No Short  Sales.  The  Investor  and its  affiliates  shall not
engage in short sales of the  Company's  Common Stock (as defined in  applicable
SEC and NASD rules) during the Commitment Period.

                                   ARTICLE VI

                            Covenants of the Company

     Section 6.1 Registration  Rights.  The Company shall cause the Registration
Rights Agreement to remain in full force and effect and the Company shall comply
in all material respects with the terms thereof.

     Section 6.2 Listing of Common Stock.  The Company hereby agrees to maintain
the  listing  of  the  Common  Stock  on a  Principal  Market,  and as  soon  as
practicable  (but in any  event  prior  to the  commencement  of the  Commitment
Period) to list the Put Shares  and the  Warrant  Shares.  The  Company  further
agrees,  if the  Company  applies to have the Common  Stock  traded on any other
Principal  Market,  it will include in such  application  the Put Shares and the
Warrant  Shares and will take such other  action as is necessary or desirable in
the opinion of the investor to cause the Common Stock to be listed on such other
Principal  Market as promptly as  possible.  The Company will take all action to
continue  the listing and trading of its Common  Stock on the  Principal  Market
(including, without limitation,  maintaining sufficient net tangible assets) and
will  comply in all  respects  with the  Company's  reporting,  filing and other
obligations  under the bylaws or rules of the Principal Market and shall provide
Investor  with copies of any  correspondence  to or from such  Principal  Market
which questions or threatens  delisting of the Common Stock,  within one Trading
Day of the Company's receipt thereof.

     Section 6.3  Exchange Act  Registration.  The Company will cause its Common
Stock to continue to be registered  under Section 12(g) or 12(b) of the Exchange
Act,  will use its best efforts to comply in all respects with its reporting and
filing  obligations under the Exchange Act, and will not take any action or file
any  document  (whether  or not  permitted  by  the  Exchange  Act or the  rules
thereunder) to terminate or suspend such registration or to terminate or suspend
its reporting and filing obligations under said Act.

     Section 6.4 Legends.  The  certificates  evidencing  the Common Stock to be
sold to the Investor shall be free of restrictive legends.

     Section 6.5 Corporate Existence.  The Company will take all steps necessary
to preserve and continue the corporate existence of the Company.

     Section 6.6  Additional SEC Documents.  During the Commitment  Period,  the
Company  will deliver to the  Investor,  as and when the  originals  thereof are
submitted  to the SEC for filing,  copies of all SEC  Documents  so furnished or
submitted  to the SEC,  or else  notify the  Investor  that such  documents  are
available on the EDGAR system.

     Section 6.7 Notice of Certain Events Affecting Registration;  Suspension of
Right to Make a Put. The Company will  immediately  notify the Investor upon the
occurrence of any of the following events in respect of a registration statement
or related prospectus in respect of an offering of Registrable  Securities;  (i)
receipt of any  request  for  additional  information  from the SEC or any other
federal or state  governmental  authority  during the period of effectiveness of
the Registration Statement the response to which would require any amendments or
supplements  to the  registration  statement  or  related  prospectus;  (ii) the
issuance by the SEC or any other federal or state governmental  authority of any
stop order suspending the  effectiveness  of the  Registration  Statement or the
initiation  of  any  proceedings   for  that  purpose;   (iii)  receipt  of  any
notification  with respect to the suspension of the  qualification  or exemption
from  qualification  of  any of  the  Registrable  Securities  for  sale  in any
jurisdiction  or the  initiation  or  threatening  of any  proceeding  for  such
purpose;  (iv) the happening of any event that makes any  statement  made in the
Registration  Statement or related  prospectus or any document  incorporated  or
deemed to be incorporated therein by reference untrue in any material respect or
that requires the making of any changes in the Registration  Statement,  related
prospectus or documents so that, in the case of the Registration  Statement,  it
will not contain any untrue  statement  of a material  fact or omit to state any
material fact required to be stated  therein or necessary to make the statements
therein not misleading,  and that in the case of the related prospectus, it will
not  contain  any  untrue  statement  of a  material  fact or omit to state  any
material fact required to be stated  therein or necessary to make the statements
therein,  in the light of the  circumstances  under  which they were  made,  not
misleading; and (v) the Company's reasonable determination that a post-effective
amendment to the  Registration  Statement would be appropriate;  and the Company
will promptly make available to the Investor any such supplement or amendment to
the related  prospectus.  The Company  shall not deliver to the Investor any Put
Notice during the continuation of any of the foregoing events.

     Section 6.8 Expectations Regarding Put Notices.  Within ten (10) days after
the  commencement  of  each  calendar  quarter   occurring   subsequent  to  the
commencement of the Commitment Period, the Company must notify the Investor,  in
writing, as to its reasonable expectations as to the dollar amount it intends to
raise during such calendar quarter, if any, through the issuance of Put Notices.
Such  notification  shall  constitute only the Company's good faith estimate and
shall in no way  obligate the Company to raise such  amount,  or any amount,  or
otherwise  limit its ability to deliver Put Notices.  The failure by the Company
to comply  with  this  provision  can be cured by the  Company's  notifying  the
Investor, in writing, at any time as to its reasonable expectations with respect
to the current calendar quarter.

     Section 6.9 Consolidation; Merger. The Company shall not, at any time after
the date hereof, effect any merger or consolidation of the Company with or into,
or a  transfer  of all or  substantially  all of the assets of the  Company  to,
another  entity (a  "Consolidation  Event")  unless the  resulting  successor or
acquiring  entity  (if not the  Company)  assumes by  written  instrument  or by
operation of law the  obligation to deliver to the Investor such shares of stock
and/or  securities  as the  Investor  is  entitled  to receive  pursuant to this
Agreement.

     Section 6.10  Limitation on Future  Financing.  The Company  agrees that it
will not enter into any  similar  equity line of credit or common  stock  equity
financing for a period of three (3) years from the date hereof.  As to any other
future financing, the Company agrees that it will not enter into any sale of its
securities  for cash at a discount to its  then-current  closing bid price for a
one-year  period  commencing as of the date hereof  without  first  offering the
right to place such securities to Investor, except for any sales (i) pursuant to
any presently existing employee benefit plan which plan has been approved by the
Company's  stockholders,  (ii) pursuant to any compensatory plan for a full-time
employee or key consultant,  (iii) pursuant to any underwritten  public offering
or (iv) with the prior approval of the Investor,  which will not be unreasonably
withheld,   in  connection  with  a  strategic  partnership  or  other  business
transaction,  the  principal  purpose  of which is not  simply  to raise  money.
Further,  the  Investor  shall  have a right  of  first  refusal,  to  elect  to
participate,  in such  subsequent  transaction in the case of (iii) above.  Such
right of first  refusal must be  exercised  in writing  within seven (7) Trading
Days  of the  Investor's  receipt  of  notice  of the  proposed  terms  of  such
financing.

                                  ARTICLE VII

                         Conditions to Delivery of Puts
                            and Conditions to Closing

     Section 7.1 Conditions  Precedent to the Obligation of the Company to Issue
and Sell Common Stock. The obligation hereunder of the Company to issue and sell
the Put  Shares to the  Investor  incident  to each  Closing  is  subject to the
satisfaction,  at or before each such  Closing,  of each of the  conditions  set
forth below.

         (a)  Accuracy of the  Investor's  Representation  and  Warranties.  The
representations  and warranties of the Investor shall be true and correct in all
material  respects as of the date of this  Agreement  and as of the date of each
such Closing as though made at each such time.

         (b)  Performance by the Investor.  The Investor  shall have  performed,
satisfied and complied in all material  respects with all covenants,  agreements
and conditions required by this Agreement to be performed, satisfied or complied
with by the Investor at or prior to such Closing,  and Investor  shall provide a
certificate to the Company,  substantially  in the form of that delivered by the
Investor.

     Section 7.2  Conditions  Precedent to the Right of the Company to Deliver a
Put Notice and the Obligation of the Investor to Purchase Put Shares.  The right
of the Company to deliver a Put Notice and the obligation of Investor  hereunder
to acquire  and pay for the Put Shares  incident  to a Closing is subject to the
satisfaction,  on both (i) the date of  delivery of such Put Notice and (ii) the
applicable Closing Date (each a "Condition  Satisfaction  Date"), of each of the
following conditions:

         (a) Closing  Certificate.  All  representations  and  warranties of the
Company contained herein shall remain true and correct as of the Closing Date as
though made as of such date and the Company shall have  delivered into escrow an
Officer's  Certificate signed by its Chief Executive Officer certifying that all
of the Company's  representations  and warranties herein remain true and correct
as of the Closing  Date and that the Company has  performed  all  covenants  and
satisfied  all  conditions  to be performed or satisfied by the Company prior to
such Closing;

         (b)  Blue  Sky.  The  Company  shall  have  obtained  all  permits  and
qualifications  required by any state for the offer and sale of the Common Stock
to the  Investor  and by the  Investor as set forth in the  Registration  Rights
Agreement or shall have the availability of exemptions therefrom;

         (c) Delivery of Put Shares.  Delivery  into escrow or to DTC of the Put
Shares;

         (d)  Opinion  of  Counsel.  Receipt  by the  Investor  of an opinion of
counsel to the Company, in the form of Exhibit D hereto; and

         (e)  Transfer  Agent.  Delivery  to the  Company's  transfer  agent  of
instructions   to  such  transfer   agent  in  form  and  substance   reasonably
satisfactory to the Investor.

         (f)  Registration  of the Common Stock with the SEC.  The  Registration
Statement shall have previously  become effective and shall remain effective and
available  for  making  resales  of the Put  Shares  and  Warrant  Shares by the
Investor on each Condition Satisfaction Date and (i) neither the Company nor the
Investor shall have received  notice that the SEC has issued or intends to issue
a stop  order  with  respect  to the  Registration  Statement  or  that  the SEC
otherwise  has  suspended or withdrawn  the  effectiveness  of the  Registration
Statement, either temporarily or permanently, or intends or has threatened to do
so (unless the SEC's concerns have been addressed and the Investor is reasonably
satisfied that the SEC no longer is considering or intends to take such action),
and (ii) no other  suspension of the use or withdrawal of the  effectiveness  of
the Registration Statement or related prospectus shall exist.

         (g)  Authority.  The  Company  will  satisfy  all laws and  regulations
pertaining to the sale and issuance of the Put Shares.

         (h)  Performance  by the  Company.  The Company  shall have  performed,
satisfied and complied in all material  respects with all covenants,  agreements
and conditions required by this Agreement, the Registration Rights Agreement and
the Escrow Agreement to be performed,  satisfied or complied with by the Company
at or prior to each Condition Satisfaction Date.

         (i) No  Injunction.  No statute,  rule,  regulation,  executive  order,
decree,  ruling or injunction shall have been enacted,  entered,  promulgated or
endorsed by any court or governmental  authority of competent  jurisdiction that
prohibits or directly and adversely affects any of the transactions contemplated
by this Agreement, and no proceeding shall have been commenced that may have the
effect  of   prohibiting  or  adversely   affecting  any  of  the   transactions
contemplated by this Agreement.

         (j) Adverse  Changes.  Since the date of filing of the  Company's  most
recent  SEC  Document,  no event  that  had or is  reasonably  likely  to have a
Material Adverse Effect has occurred.

         (k) No  Suspension  of Trading In or  Delisting  of Common  Stock.  The
trading of the Common Stock (including,  without limitation,  the Put Shares) is
not  suspended  by  the  SEC or the  Principal  Market,  and  the  Common  Stock
(including,  without  limitation,  the Put Shares)  shall have been approved for
listing or  quotation  on and shall not have been  delisted  from the  Principal
Market.  The issuance of shares of Common  Stock with respect to the  applicable
Closing, if any, shall not violate the shareholder approval  requirements of the
Principal Market.  The Company shall not have received any notice threatening to
delist the Common Stock from the Principal Market.

         (l) No Knowledge. The Company has no knowledge of any event more likely
than not to have  the  effect  of  causing  such  Registration  Statement  to be
suspended or otherwise  ineffective  (which event is reasonably  likely to occur
within the thirty  (30)  Trading  Days  following  the Trading Day on which such
Notice is deemed delivered).

         (m) Trading  Cushion.  The Trading Cushion shall have elapsed since the
next preceding Put Date.

         (n) Other. On each Condition Satisfaction Date, the Investor shall have
received  and  been  reasonably  satisfied  with  such  other  certificates  and
documents as shall have been  reasonably  requested by the Investor in order for
the Investor to confirm the Company's  satisfaction  of the conditions set forth
in this Section 7.2.

                                  ARTICLE VIII

         Due Diligence Review; Non-Disclosure of Non-Public Information.

     Section 8.1 Due  Diligence  Review.  The Company  shall make  available for
inspection and review by the Investor,  advisors to and  representatives  of the
Investor  (who  may or may  not be  affiliated  with  the  Investor  and who are
reasonably  acceptable to the Company),  any  underwriter  participating  in any
disposition of the Registrable  Securities on behalf of the Investor pursuant to
the  Registration  Statement,  any such  registration  statement or amendment or
supplement  thereto or any blue sky, NASD or other filing, all SEC Documents and
other filings with the SEC, and all other publicly available corporate documents
and properties of the Company as may be reasonably  necessary for the purpose of
such review, and cause the Company's officers, directors and employees to supply
all such publicly available information  reasonably requested by the Investor or
any  such  representative,  advisor  or  underwriter  in  connection  with  such
Registration  Statement  (including,  without  limitation,  in  response  to all
questions  and other  inquiries  reasonably  made or  submitted by any of them),
prior to and  from  time to time  after  the  filing  and  effectiveness  of the
Registration  Statement  for the sole  purpose of enabling the Investor and such
representatives,  advisors and underwriters and their respective accountants and
attorneys  to conduct  initial  and ongoing due  diligence  with  respect to the
Company and the accuracy of the Registration Statement.

     Section 8.2 Non-Disclosure of Non-Public Information.

         (a) The  Company  shall  not  disclose  non-public  information  to the
Investor,  advisors  to or  representatives  of the  Investor  unless  prior  to
disclosure of such information the Company  identifies such information as being
non-public   information   and  provides  the   Investor,   such   advisors  and
representatives  with the  opportunity  to  accept  or  refuse  to  accept  such
non-public information for review. The Company may, as a condition to disclosing
any  non-public  information  hereunder,  require the  Investor's  advisors  and
representatives  to enter into a  confidentiality  agreement in form  reasonably
satisfactory to the Company and the Investor.

         (b) The  Company  represents  that it does not  disseminate  non-public
information  to any  investors  who  purchase  stock in the  Company in a public
offering, to money managers or to securities analysts,  provided,  however, that
notwithstanding   anything  herein  to  the  contrary,   the  Company  will,  as
hereinabove provided, immediately notify the advisors and representatives of the
Investor  and,  if any,  underwriters,  of any  event  or the  existence  of any
circumstance   (without  any  obligation  to  disclose  the  specific  event  or
circumstance)  of which it becomes aware,  constituting  non-public  information
(whether or not requested of the Company  specifically  or generally  during the
course of due diligence by such persons or entities), which, if not disclosed in
the  prospectus  included  in  the  Registration   Statement  would  cause  such
prospectus  to  include  a  material  misstatement  or to omit a  material  fact
required to be stated therein in order to make the statements,  therein in light
of the circumstances in which they were made, not misleading.  Nothing contained
in this  Section 8.2 shall be  construed  to mean that such  persons or entities
other than the Investor  (without the written  consent of the Investor  prior to
disclosure of such  information)  may not obtain  non-public  information in the
course  of  conducting  due  diligence  in  accordance  with  the  terms of this
Agreement  and nothing  herein shall  prevent any such persons or entities  from
notifying  the Company of their opinion that based on such due diligence by such
persons  or  entities,  that  the  Registration  Statement  contains  an  untrue
statement of a material  fact or omits a material  fact required to be stated in
the  Registration  Statement  or  necessary  to make  the  statements  contained
therein, in light of the circumstances in which they were made, not misleading.

                                   ARTICLE IX

                           Transfer Agent Instructions

     Section 9.1 Transfer  Agent  Instructions.  Upon each Closing,  the Company
will issue to the transfer  agent for its Common Stock (and to any substitute or
replacement  transfer agent for its Common Stock upon the Company's  appointment
of any such substitute or replacement  transfer  agent)  instructions to deliver
the Put Shares without restrictive legends to the Escrow Agent.

     Section 9.2 No Legend or Stock  Transfer  Restrictions.  No legend shall be
placed on the share certificates representing the Put Shares and no instructions
or "stop transfer  orders," so called,  "stock transfer  restrictions," or other
restrictions  have been or shall be given to the Company's  transfer  agent with
respect thereto.

     Section 9.3 Investor's Compliance.  Nothing in this Article shall affect in
any way the  Investor's  obligations  under any  agreement  to  comply  with all
applicable securities laws upon resale of the Put Shares.

                                   ARTICLE X

                                  Choice of Law

     Section 10.1 Governing Law/Arbitration. This Agreement shall be governed by
and construed in accordance with the laws of the State of Delaware applicable to
contracts  made in Delaware by persons  domiciled in Delaware and without regard
to its  principles of conflicts of laws. Any dispute under this Agreement or any
Exhibit  attached  hereto shall be submitted to  arbitration  under the American
Arbitration Association (the "AAA") in San Francisco,  California,  and shall be
finally and  conclusively  determined by the decision of a board of  arbitration
consisting  of three  (3)  members  (hereinafter  referred  to as the  "Board of
Arbitration") selected as according to the rules governing the AAA. The Board of
Arbitration   shall  meet  on  consecutive   business  days  in  San  Francisco,
California,  and shall reach and render a decision in writing (concurred in by a
majority of the members of the Board of Arbitration) with respect to the amount,
if any,  which the losing party is required to pay to the other party in respect
of a claim filed.  In  connection  with  rendering its  decisions,  the Board of
Arbitration  shall  adopt and follow the laws of the State of  Delaware.  To the
extent  practical,  decisions of the Board of  Arbitration  shall be rendered no
more than thirty (30) calendar days following  commencement of proceedings  with
respect thereto. The Board of Arbitration shall cause its written decision to be
delivered to all parties involved in the dispute. The Board of Arbitration shall
be  authorized  and is  directed to enter a default  judgment  against any party
refusing to participate in the arbitration  proceeding within thirty days of any
deadline for such  participation.  Any decision made by the Board of Arbitration
(either  prior to or after the  expiration  of such  thirty  (30)  calendar  day
period)  shall be final,  binding and  conclusive on the parties to the dispute,
and entitled to be enforced to the fullest  extent  permitted by law and entered
in any court of competent  jurisdiction.  The prevailing  party shall be awarded
its costs,  including  attorneys' fees, from the non-prevailing party as part of
the arbitration  award. Any party shall have the right to seek injunctive relief
from any  court of  competent  jurisdiction  in any case  where  such  relief is
available.  The prevailing party in such injunctive  action shall be awarded its
costs, including attorney's fees, from the non-prevailing party.

                                   ARTICLE XI

                                   Assignment

     Section  11.1  Assignment.  Neither  this  Agreement  nor any rights of the
Investor or the Company  hereunder  may be assigned by either party to any other
person except by operation of law. Notwithstanding the foregoing, upon the prior
written consent of the Company, which consent shall not unreasonably be withheld
or delayed in the case of an  assignment  to an affiliate of the  Investor,  the
Investor's  interest in this  Agreement may be assigned at any time, in whole or
in part, to any other person or entity (including any affiliate of the Investor)
who agrees to make the representations  and warranties  contained in Article III
and who agrees to be bound hereby.

                                  ARTICLE XII

                                     Notices

     Section 12.1 Notices. All notices, demands, requests, consents,  approvals,
and other  communications  required or permitted  hereunder  shall be in writing
and, unless otherwise  specified herein,  shall be (i) personally  served,  (ii)
deposited  in the mail,  registered  or  certified,  return  receipt  requested,
postage  prepaid,  (iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed
as set forth below or to such other  address as such party shall have  specified
most recently by written notice. Any notice or other  communication  required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or  delivery  by  facsimile,   with  accurate  confirmation   generated  by  the
transmitting  facsimile  machine,  at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be received),  or the first  business day following  such delivery (if delivered
other than on a business day during normal  business  hours where such notice is
to be received) or (b) on the second  business day following the date of mailing
by reputable courier service, fully prepaid,  addressed to such address, or upon
actual receipt of such mailing,  whichever shall first occur.  The addresses for
such communications shall be:

If to the Company          :                Paradigm Medical Industries, Inc.
                                            1127 West 2320 South, Suite A
                                            Salt Lake City, UT  84119
                                            Attn: Thomas F. Motter
                                            Telephone:  (801) 977-8970
                                            Facsimile:

With a copy to:
(shall not constitute notice)               Mackey Price & Williams
notice) to:                                 170 South Main Street, Suite 900
                                            Salt Lake City, Utah 84101-1655
                                            Attention: Randell A. Mackey, Esq.
                                            Telephone:  (801) 575-5000
                                            Facsimile:  (801) 575-5006

if to the Investor:                         Triton West Group, Inc.
                                            c/o Trinity Capital Advisors, Inc.
                                            211 Sutter St. 2nd Floor
                                            San Franscisco, CA 94108
                                            Attention:  Gene Jung
                                            Telephone: (415) 217-7070
                                            Facsimile:

with a copy to:                             Robert F. Charron, Esq.
(shall not constitute notice)               Epstein Becker & Green, P.C.
                                            250 Park Avenue
                                            New York, New York
                                            Telephone: (212) 351-4500
                                            Facsimile: (212) 661-0989

Either party hereto may from time to time change its address or facsimile number
for  notices  under this  Section  12.1 by giving at least ten (10) days'  prior
written  notice of such changed  address or facsimile  number to the other party
hereto.

                                  ARTICLE XIII

                                  Miscellaneous

     Section 13.1  Counterparts/  Facsimile/  Amendments.  This Agreement may be
executed  in multiple  counterparts,  each of which may be executed by less than
all of the parties and shall be deemed to be an original  instrument which shall
be enforceable  against the parties actually executing such counterparts and all
of which  together  shall  constitute  one and the same  instrument.  Except  as
otherwise  stated  herein,  in  lieu  of the  original  documents,  a  facsimile
transmission  or  copy of the  original  documents  shall  be as  effective  and
enforceable  as the  original.  This  Agreement may be amended only by a writing
executed by all parties.

     Section 13.2 Entire Agreement.  This Agreement,  the Exhibits hereto, which
include,  but are not limited to the Escrow Agreement,  the Registration  Rights
Agreement and the Warrants,  set forth the entire agreement and understanding of
the parties  relating to the subject  matter hereof and supersedes all prior and
contemporaneous agreements, negotiations and understandings between the parties,
both oral and  written  relating  to the subject  matter  hereof.  The terms and
conditions  of all Exhibits to this  Agreement are  incorporated  herein by this
reference  and shall  constitute  part of this  Agreement  as is fully set forth
herein.

     Section  13.3  Survival;  Severability.  The  representations,  warranties,
covenants  and  agreements  of the parties  hereto  shall  survive  each Closing
hereunder.  In the event  that any  provision  of this  Agreement  becomes or is
declared by a court of competent  jurisdiction to be illegal,  unenforceable  or
void,  this  Agreement  shall  continue  in full force and effect  without  said
provision; provided that such severability shall be ineffective if it materially
changes the economic benefit of this Agreement to any party.

     Section 13.4 Title and  Subtitles.  The titles and  subtitles  used in this
Agreement  are  used  for  convenience  only  and  are not to be  considered  in
construing or interpreting this Agreement.

     Section 13.5 Reporting  Entity for the Common Stock.  The reporting  entity
relied upon for the  determination of the trading price or trading volume of the
Common Stock on any given Trading Day for the purposes of this  Agreement  shall
be Bloomberg,  L.P. or any successor thereto.  The written mutual consent of the
Investor and the Company shall be required to employ any other reporting entity.

     Section  13.6  Replacement  of  Certificates.  Upon (i) receipt of evidence
reasonably  satisfactory  to the  Company  of the loss,  theft,  destruction  or
mutilation of a certificate  representing the Put Shares and (ii) in the case of
any such loss,  theft or  destruction of such  certificate,  upon delivery of an
indemnity  agreement or security  reasonably  satisfactory in form and amount to
the Company  (which  shall not exceed that  required by the  Company's  transfer
agent in the ordinary  course) or (iii) in the case of any such  mutilation,  on
surrender and cancellation of such certificate,  the Company at its expense will
execute and deliver, in lieu thereof, a new certificate of like tenor.

     Section  13.7 Fees and  Expenses.  Each of the  Company  and the  Investors
agrees to pay its own expenses  incident to the  performance of its  obligations
hereunder,   except  that  the  Company   shall  pay  the  fees,   expenses  and
disbursements  of  Investors'  counsel  in the  amount of  $5,000  plus $500 per
Closing of a Put.

     Section 13.8 Brokerage.  Each of the parties hereto  represents that it has
had no dealings in connection  with this  transaction  with any finder or broker
who will demand payment of any fee or commission from the other party other than
Triton West Group,  Inc. whose fee shall be paid by the Company.  The Company on
the one hand, and the Investor,  on the other hand, agree to indemnify the other
against and hold the other  harmless from any and all  liabilities to any person
claiming brokerage commissions or finder's fees on account of services purported
to have been rendered on behalf of the  indemnifying  party in  connection  with
this Agreement or the transactions contemplated hereby.

     Section 13.9 Publicity. The Company agrees that it will not issue any press
release or other public  announcement of the  transactions  contemplated by this
Agreement  without  the  prior  consent  of the  Investor,  which  shall  not be
unreasonably  withheld  nor delayed by more than two (2)  Trading  Days from its
receipt of such  proposed  release;  provided,  however,  that if the Company is
advised by its outside  counsel  that it is  required  by law or the  applicable
rules  of any  Principal  Market  to issue  any such  press  release  or  public
announcement,  then,  it may do so without  the prior  consent of the  Investor,
although  it  shall  be  required  to  provide  prior  notice  (which  may be by
telephone) to the Investor that it intends to issue such press release or public
announcement. No release shall name the Investor without its express consent.

     Section 13.10  Effectiveness  of  Agreement.  This  Agreement  shall become
effective  only upon  satisfaction  of the  conditions  precedent to the Initial
Closing set forth in Article I of the Escrow Agreement.

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Private Equity Line
of  Credit  Agreement  to  be  executed  by  the  undersigned,   thereunto  duly
authorized, as of the date first set forth above.

         Dated:  June 30, 2000

                                           PARADIGM MEDICAL INDUSTRIES, INC.

                                           By:/s/Thomas F. Motter
                                              Thomas F. Motter, Chairman & CEO

                                           Triton West Group, Inc.

                                           By:/s/ E. Edward Jung
                                            E. Edward Jung, Authorized Signatory12
NY:112451.1

                                                                       EXHIBIT C

                          REGISTRATION RIGHTS AGREEMENT

THIS  REGISTRATION  RIGHTS  AGREEMENT,  dated as of the 30th day of June,  2000,
between Triton West Group, Inc. ("Holder") and Paradigm Medical Industries, Inc.
a  corporation  incorporated  under  the  laws of the  State  of  Delaware  (the
"Company").

     WHEREAS,  simultaneously with the execution and delivery of this Agreement,
pursuant to a Private Equity Line of Credit Agreement dated the date hereof (the
"Purchase  Agreement")  the Holder has  committed to purchase up to  $20,000,000
(subject to adjustment to $30,000,000) pursuant to the Purchase Agreement of the
Company's  Common  Stock  (terms not  defined  herein  shall  have the  meanings
ascribed to them in the Purchase Agreement); and

     WHEREAS, the Company desires to grant to the Holder the registration rights
set forth herein with respect to the Put Shares and the Blackout Shares issuable
upon  exercise  of the  Company's  Put rights  from time to time and the Warrant
Shares  (hereinafter  referred to as the "Put Shares" or "Stock" or "Securities"
of the Company).

     NOW, THEREFORE, the parties hereto mutually agree as follows:

     Section 1.  Registrable  Securities.  As used herein the term  "Registrable
Security" means the Securities  until (i) all Put Shares and Warrant Shares have
been disposed of pursuant to the Registration Statement, (ii) all Put Shares and
Warrant  Shares  have  been  sold  under  circumstances  under  which all of the
applicable conditions of Rule 144 (or any similar provision then in force) under
the Securities Act ("Rule 144") are met, (iii) all Put Shares and Warrant Shares
have been otherwise transferred to persons who may trade such Securities without
restriction  under the  Securities  Act,  and the  Company  has  delivered a new
certificate  or other  evidence  of  ownership  for such Put Shares and  Warrant
Shares not bearing a restrictive  legend or (iv) such time as, in the opinion of
counsel to the  Company,  all Put Shares and Warrant  Shares may be sold without
any time, volume or manner  limitations  pursuant to Rule 144(k) (or any similar
provision  then in  effect)  under the  Securities  Act.  The term  "Registrable
Securities" means any and/or all of the securities  falling within the foregoing
definition   of  a   "Registrable   Security."  In  the  event  of  any  merger,
reorganization,  consolidation,  recapitalization  or other  change in corporate
structure affecting the Common Stock, such adjustment shall be deemed to be made
in the  definition  of  "Registrable  Security"  as is  appropriate  in order to
prevent  any  dilution or  enlargement  of the rights  granted  pursuant to this
Agreement.
<PAGE>

     Section  2.   Restrictions  on  Transfer.   The  Holder   acknowledges  and
understands  that  in  the  absence  of  an  effective   Registration  Statement
authorizing the resale of the Securities as provided herein,  the Securities are
"restricted  securities" as defined in Rule 144  promulgated  under the Act. The
Holder understands that no disposition or transfer of the Securities may be made
by Holder in the absence of (i) an opinion of counsel to the Holder, in form and
substance reasonably satisfactory to the Company, that such transfer may be made
without registration under the Securities Act or (ii) such registration.

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

     (a) comply with the provisions of paragraph (c)(1) of Rule 144; and

     (b) file with the  Commission  in a timely  manner  all  reports  and other
documents  required to be filed by the  Company  pursuant to Section 13 or 15(d)
under the  Exchange  Act;  and,  if at any time it is not  required to file such
reports but in the past had been required to or did file such reports,  it will,
upon the request of any Holder, make available other information as required by,
and so long as necessary to permit sales of, its Registrable Securities pursuant
to Rule 144.

     Section 3. Registration Rights With Respect to the Securities.

     (a) The Company  agrees that if it is unable to maintain the  effectiveness
of the  Registration  Statement  filed on January  6, 2000 (File No.  333-93725)
during the Commitment Period or amend such Registration  Statement to include an
additional number of shares of Common Stock in the event there are no registered
shares remaining under such Registration Statement, upon notice by the Investor,
it  will  prepare  and  file  with  the  Securities   and  Exchange   Commission
("Commission"),   within   forty-five  (45)  days  after  the  date  hereof,   a
registration  statement  (on  Form  S-1,  S-3,  or  other  appropriate  form  of
registration statement) under the Securities Act (the "Registration Statement"),
at the sole expense of the Company  (except as provided in Section 3(c) hereof),
so as to permit a public offering and resale of the Securities  under the Act by
Holder.

     The Company shall use its best efforts to cause the Registration  Statement
to become  effective  within  ninety  (90) days from the date of notice,  or, if
earlier,  within  five (5) days of SEC  clearance  to  request  acceleration  of
effectiveness.  The number of shares designated in the Registration Statement to
be  registered  shall be at such  number  of shares  as the  Company  reasonably
expects to issue from the date thereof pursuant to this Agreement (including the
Warrant  Shares and  Blackout  Shares) and shall  include  appropriate  language
regarding reliance upon Rule 416 to the extent permitted by the Commission.  The
Company will notify Holder of the  effectiveness of the  Registration  Statement
within one Trading Day of such event.

     (b) The Company will maintain the Registration  Statement or post-effective
amendment  filed under this Section 3 hereof  effective under the Securities Act
until the earlier of (i) the date that none of the  Securities are or may become
issued and outstanding,  (ii) the date that all of the Securities have been sold
pursuant  to the  Registration  Statement,  (iii) the date the  holders  thereof
receive an opinion of counsel to the Company,  which counsel shall be reasonably
acceptable to the Holder,  that the  Securities may be sold under the provisions
<PAGE>

of Rule 144  without  limitation  as to volume,  (iv) all  Securities  have been
otherwise  transferred to persons who may trade such shares without  restriction
under the  Securities  Act, and the Company has delivered a new  certificate  or
other  evidence of  ownership  for such  securities  not  bearing a  restrictive
legend,  (v) two (2) years from the date of the last Put or (vi) all  Securities
may be sold  without  any time,  volume or manner  limitations  pursuant to Rule
144(k) or any similar  provision  then in effect under the Securities Act in the
opinion of counsel to the Company,  which counsel shall be reasonably acceptable
to the Holder (the "Effectiveness Period").

     (c) All fees,  disbursements and out-of-pocket  expenses and costs incurred
by the Company in connection with the preparation and filing of the Registration
Statement under  subparagraph  3(a) and in complying with applicable  securities
and Blue Sky laws  (including,  without  limitation,  all attorneys' fees of the
Company)  shall be borne  by the  Company.  The  Holder  shall  bear the cost of
underwriting  and/or  brokerage  discounts,   fees  and  commissions,   if  any,
applicable to the Securities  being  registered and the fees and expenses of its
counsel.  The Holder and its  counsel  shall have a  reasonable  period,  not to
exceed five (5) Trading Days, to review the proposed  Registration  Statement or
any  amendment  thereto,  prior to filing with the  Commission,  and the Company
shall provide each Holder with copies of any comment  letters  received from the
Commission with respect thereto within two (2) Trading Days of receipt  thereof.
The Company  shall make  reasonably  available  for  inspection  by Holder,  any
underwriter  participating  in any  disposition  pursuant  to  the  Registration
Statement,  and any attorney,  accountant or other agent retained by such Holder
or any such  underwriter  all relevant  financial and other  records,  pertinent
corporate  documents  and  properties of the Company and its  subsidiaries,  and
cause the Company's officers,  directors and employees to supply all information
reasonably  requested  by  such  Holder  or  any  such  underwriter,   attorney,
accountant or agent in connection with the Registration Statement, in each case,
as is customary for similar due diligence examinations;  provided, however, that
all records,  information  and documents  that are  designated in writing by the
Company, in good faith, as confidential,  proprietary or containing any material
non-public  information  shall be kept  confidential by such Holder and any such
underwriter,   attorney,   accountant  or  agent  (pursuant  to  an  appropriate
confidentiality  agreement in the case of any such Holder or agent), unless such
disclosure is made  pursuant to judicial  process in a court  proceeding  (after
first giving the Company an opportunity  promptly to seek a protective  order or
otherwise  limit the scope of the  information  sought  to be  disclosed)  or is
required by law, or such records,  information or documents  become available to
the  public  generally  or  through  a  third  party  not  in  violation  of  an
accompanying  obligation of  confidentiality;  and provided further that, if the
foregoing  inspection and  information  gathering  would  otherwise  disrupt the
Company's  conduct of its business,  such inspection and  information  gathering
shall,  to the maximum extent  possible,  be coordinated on behalf of the Holder
and the other parties entitled thereto by one firm of counsel designed by and on
behalf of the  majority  in interest  of Holder and other  parties.  The Company
shall  qualify  any of the  securities  for sale in such  states as such  Holder
reasonably  designates and shall furnish  indemnification in the manner provided
in Section 6 hereof.  However,  the Company  shall not be required to qualify in
any state  which will  require an escrow or other  restriction  relating  to the
Company  and/or the sellers,  or which will require the Company to qualify to do
business  in such  state or require  the  Company to file  therein  any  general
consent to service of process. The Company at its expense will supply the Holder
with copies of the  Registration  Statement and the prospectus  included therein
and other related documents in such quantities as may be reasonably requested by
the Holder.

     (d) The  Company  shall not be  required  by this  Section  3 to  include a
Holder's  Securities in any  Registration  Statement which is to be filed if, in
the opinion of counsel for both the Holder and the Company (or,  should they not
agree, in the opinion of another  counsel  experienced in securities law matters
acceptable  to counsel for the Holder and the Company) the proposed  offering or
other  transfer  as to which  such  registration  is  requested  is exempt  from
applicable  federal and state securities laws and would result in all purchasers
or transferees  obtaining securities which are not "restricted  securities",  as
defined in Rule 144 under the Securities Act.

     (e) No provision  contained  herein shall preclude the Company from selling
securities  pursuant to any  Registration  Statement  in which it is required to
include Securities pursuant to this Section 3.

     (f) If at any time or from  time to time  after the  effective  date of the
Registration  Statement,  the  Company  notifies  the  Holder in  writing of the
existence of a Potential  Material Event (as defined in Section 3(g) below), the
Holder shall not offer or sell any Securities or engage in any other transaction
involving or relating to Securities,  from the time of the giving of notice with
respect to a Potential  Material Event until such Holder receives written notice
from the Company that such Potential Material Event either has been disclosed to
the  public or no longer  constitutes  a  Potential  Material  Event;  provided,
however, that if the Company so suspends the right to such holders of Securities
for more than thirty (30) days in the aggregate  during any twelve month period,
during the periods the  Registration  Statement is required to be in effect such
excess periods shall be a Registration  Default,  and shall entitle the Investor
to receive Blackout Shares as provided in the Purchase Agreement. If a Potential
Material  Event  shall  occur prior to the date the  Registration  Statement  is
filed, then the Company's obligation to file the Registration Statement shall be
delayed  without  penalty for not more than thirty (30) days.  The Company  must
give Holder  notice in writing at least two (2) Trading  Days prior to the first
day of the blackout period, if lawful to do so.

     (g)  "Potential  Material  Event"  means  any of  the  following:  (a)  the
possession  by  the  Company  of  material  information  that  is not  ripe  for
disclosure in a registration statement, as determined in good faith by the Chief
Executive Officer or the Board of Directors of the Company or that disclosure of
such  information  in the  Registration  Statement  would be  detrimental to the
business and affairs of the Company;  or (b) any material engagement or activity
by the  Company  which  would,  in the good  faith  determination  of the  Chief
Executive  Officer  or the  Board of  Directors  of the  Company,  be  adversely
affected  by  disclosure  in  a  registration  statement  at  such  time,  which
determination  shall be accompanied by a good faith  determination  by the Chief
Executive Officer or the Board of Directors of the Company that the Registration
Statement  would  be  materially   misleading   absent  the  inclusion  of  such
information.

     Section 4. Cooperation with Company. Holder will cooperate with the Company
in all respects in connection with this Agreement,  including  timely  supplying
all  information  reasonably  requested by the Company  (which shall include all
information  regarding the Holder and proposed manner of sale of the Registrable
Securities required to be disclosed in the Registration Statement) and executing
and  returning  all  documents  reasonably  requested  in  connection  with  the
registration  and  sale of the  Registrable  Securities  and  entering  into and
performing its obligations under any underwriting  agreement, if the offering is
an  underwritten  offering,  in usual  and  customary  form,  with the  managing
underwriter or underwriters of such underwritten  offering.  The Holder consents
to be named as a statutory underwriter in the Registration Statement.

     Section 5. Registration Procedures. If and whenever the Company is required
by any of the provisions of this Agreement to effect the  registration of any of
the Registrable Securities under the Act, the Company shall (except as otherwise
provided  in this  Agreement),  as  expeditiously  as  possible,  subject to the
Holder's assistance and cooperation as reasonably required:

     (a)  (i)  prepare  and  file  with  the  Commission   such  amendments  and
supplements to the Registration  Statement and the prospectus used in connection
therewith as may be necessary to keep such registration  statement effective and
to  comply  with the  provisions  of the Act with  respect  to the sale or other
disposition of all securities  covered by such registration  statement  whenever
the Holder of such  Registrable  Securities  shall  desire to sell or  otherwise
dispose of the same (including prospectus  supplements with respect to the sales
of securities  from time to time in  connection  with a  registration  statement
pursuant to Rule 415 promulgated  under the Act) and (ii) take all lawful action
such that each of (A) the Registration  Statement and any amendment thereto does
not, when it becomes  effective,  contain an untrue statement of a material fact
or omit to state a material fact  required to be stated  therein or necessary to
make the statements therein,  not misleading and (B) the Prospectus forming part
of the Registration Statement, and any amendment or supplement thereto, does not
at any time during the  Registration  Period  include an untrue  statement  of a
material fact or omit to state a material fact required to be stated  therein or
necessary to make the statements  therein,  in light of the circumstances  under
which they were made, not misleading.

     (b) (i)  prior  to the  filing  with  the  Commission  of any  Registration
Statement (including any amendments thereto) and the distribution or delivery of
any prospectus (including any supplements thereto), provide draft copies thereof
to the Holders and reflect in such  documents  all such  comments as the Holders
(and their counsel)  reasonably may propose and (ii) furnish to each Holder such
numbers of copies of a  prospectus  including a  preliminary  prospectus  or any
amendment or supplement to any prospectus, as applicable, in conformity with the
requirements of the Act, and such other documents, as such Holder may reasonably
request in order to  facilitate  the  public  sale or other  disposition  of the
securities owned by such Holder;

     (c)  register  and  qualify  the  Registrable  Securities  covered  by  the
Registration  Statement  under  such other  securities  or blue sky laws of such
jurisdictions as the Holder shall reasonably request (subject to the limitations
set forth in Section 3(d) above), and do any and all other acts and things which
may be necessary or  advisable  to enable each Holder to  consummate  the public
sale or other  disposition in such  jurisdiction of the securities owned by such
Holder,  except that the Company  shall not for any such  purpose be required to
qualify to do business as a foreign  corporation in any jurisdiction  wherein it
is not so  qualified  or to file  therein  any  general  consent  to  service of
process;

     (d) list such Registrable  Securities on the Primary Market,  and any other
exchange on which the Common Stock of the Company is then listed, if the listing
of such  Registrable  Securities  is then  permitted  under  the  rules  of such
exchange;

     (e)  notify  each  Holder at any time when a  prospectus  relating  thereto
covered by the Registration Statement is required to be delivered under the Act,
of the happening of any event of which it has knowledge as a result of which the
prospectus included in the Registration  Statement,  as then in effect, includes
an  untrue  statement  of a  material  fact or omits to  state a  material  fact
required to be stated  therein or necessary to make the  statements  therein not
misleading  in the light of the  circumstances  then  existing,  and the Company
shall  prepare and file a curative  amendment  under  Section 5(a) as quickly as
commercially possible;

     (f) as promptly as practicable  after becoming aware of such event,  notify
Holder (or, in the event of an underwritten offering, the managing underwriters)
of the issuance by the  Commission  or any state  authority of any stop order or
other  suspension  of the  effectiveness  of the  Registration  Statement at the
earliest  possible  time and take all lawful  action to effect  the  withdrawal,
recession or removal of such stop order or other suspension;

     (g) cooperate  with the Holder to  facilitate  the timely  preparation  and
delivery of certificates  for the Registrable  Securities to be offered pursuant
to the Registration  Statement and enable such  certificates for the Registrable
Securities to be in such  denominations  or amounts,  as the case may be, as the
Holder  reasonably  may request and  registered  in such names as the Holder may
request;  and,  within three Trading Days after a Registration  Statement  which
includes Registrable Securities is declared effective by the Commission, deliver
and cause legal counsel selected by the Company to deliver to the transfer agent
for the  Registrable  Securities  (with  copies to the  Holder)  an  appropriate
instruction and, to the extent necessary, an opinion of such counsel;

     (h) take all such other lawful actions reasonably necessary to expedite and
facilitate  the  disposition  by the  Holder of its  Registrable  Securities  in
accordance with the intended methods  therefor  provided in the prospectus which
are customary for issuers to perform under the circumstances;

     (i)  in  the  event  of  an  underwritten  offering,  promptly  include  or
incorporate  in a  Prospectus  supplement  or  post-effective  amendment  to the
Registration  Statement such information as the managers reasonably agree should
be included therein and to which the Company does not reasonably object and make
all required filings of such Prospectus  supplement or post-effective  amendment
as soon as  practicable  after it is  notified  of the matters to be included or
incorporated in such Prospectus supplement or post-effective amendment; and

     (j) maintain a transfer agent and registrar for its Common Stock.

     Section 6. Indemnification.

     (a) The Company  agrees to indemnify  and hold harmless the Holder and each
person, if any, who controls the Holder within the meaning of the Securities Act
("Distributing  Holder")  against any losses,  claims,  damages or  liabilities,
joint or several (which shall, for all purposes of this Agreement,  include, but
not be limited to, all  reasonable  costs of defense and  investigation  and all
reasonable  attorneys'  fees),  to which  the  Distributing  Holder  may  become
subject, under the Securities Act or otherwise,  insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based
upon any untrue  statement or alleged  untrue  statement  of any  material  fact
contained in the Registration  Statement, or any related preliminary prospectus,
final  prospectus  or amendment or  supplement  thereto,  or arise out of or are
based upon the  omission or alleged  omission to state  therein a material  fact
required to be stated  therein or necessary to make the  statements  therein not
misleading;  provided,  however, that the Company will not be liable in any such
case to the extent that any such loss, claim,  damage or liability arises out of
or is based upon an untrue  statement or alleged untrue statement or omission or
alleged omission made in the  Registration  Statement,  preliminary  prospectus,
final  prospectus or amendment or supplement  thereto in reliance  upon,  and in
conformity  with,   written   information   furnished  to  the  Company  by  the
Distributing  Holder,  specifically  for use in the  preparation  thereof.  This
Section  6(a) shall not inure to the  benefit of any  Distributing  Holder  with
respect to any  person  asserting  such loss,  claim,  damage or  liability  who
purchased  the  Registrable  Securities  which are the  subject  thereof  if the
Distributing  Holder failed to send or give (in violation of the  Securities Act
or the rules and  regulations  promulgated  thereunder) a copy of the prospectus
contained  in such  Registration  Statement  to such  person  at or prior to the
written confirmation to such person of the sale of such Registrable  Securities,
where the Distributing Holder was obligated to do so under the Securities Act or
the rules and regulations promulgated thereunder.  This indemnity agreement will
be in addition to any liability which the Company may otherwise have.

     Each  Distributing  Holder agrees that it will  indemnify and hold harmless
the Company,  and each officer,  director of the Company or person,  if any, who
controls  the Company  within the  meaning of the  Securities  Act,  against any
losses,  claims,  damages or liabilities  (which shall, for all purposes of this
Agreement,  include,  but not be limited to, all reasonable costs of defense and
investigation  and all reasonable  attorneys'  fees) to which the Company or any
such  officer,  director  or  controlling  person may become  subject  under the
Securities  Act or  otherwise,  insofar  as  such  losses,  claims,  damages  or
liabilities  (or actions in respect  thereof) arise out of or are based upon any
untrue  statement or alleged untrue  statement of any material fact contained in
the  Registration  Statement,  or  any  related  preliminary  prospectus,  final
prospectus or amendment or supplement thereto, or arise out of or are based upon
the omission or the alleged  omission to state  therein a material fact required
to be stated therein or necessary to make the statements therein not misleading,
but in each case only to the extent that such untrue statement or alleged untrue
statement  or  omission  or  alleged  omission  was  made  in  the  Registration
Statement,  preliminary prospectus,  final prospectus or amendment or supplement
thereto in reliance upon, and in conformity with, written information  furnished
to  the  Company  by  such  Distributing  Holder,  specifically  for  use in the
preparation  thereof.  This  indemnity  agreement  will  be in  addition  to any
liability  which the  Distributing  Holder may otherwise  have.  Notwithstanding
anything to the contrary herein,  the Distributing  Investor shall not be liable
under this  Section  6(b) for any amount in excess of the net  proceeds  to such
Distributing Investor as a result of the sale of Registrable Securities pursuant
to the Registration Statement.

     (b) Promptly after receipt by an indemnified  party under this Section 6 of
notice of the  commencement  of any action,  such  indemnified  party will, if a
claim in respect thereof is to be made against the indemnifying party under this
Section 6, notify the indemnifying  party of the commencement  thereof;  but the
omission so to notify the  indemnifying  party will not relieve the indemnifying
party from any liability  which it may have to any  indemnified  party except to
the extent of actual prejudice  demonstrated by the indemnifying  party. In case
any such action is brought  against any indemnified  party,  and it notifies the
indemnifying party of the commencement  thereof,  the indemnifying party will be
entitled to  participate  in, and, to the extent that it may wish,  jointly with
any other  indemnifying  party similarly  notified,  assume the defense thereof,
subject to the provisions  herein stated and after notice from the  indemnifying
party to such  indemnified  party  of its  election  so to  assume  the  defense
thereof,  the indemnifying  party will not be liable to such  indemnified  party
under this Section 6 for any legal or other  expenses  subsequently  incurred by
such  indemnified  party in  connection  with the  defense  thereof  other  than
reasonable  costs of  investigation,  unless the  indemnifying  party  shall not
pursue the action to its final conclusion.  The indemnified party shall have the
right to employ  separate  counsel in any such action and to  participate in the
defense  thereof,  but the fees and expenses of such counsel shall not be at the
expense of the  indemnifying  party if the  indemnifying  party has  assumed the
defense of the action with counsel  reasonably  satisfactory  to the indemnified
party;  provided that if the indemnified party is the Distributing  Holder,  the
fees and  expenses of such counsel  shall be at the expense of the  indemnifying
party if (i) the employment of such counsel has been specifically  authorized in
writing by the indemnifying  party, or (ii) the named parties to any such action
(including any impleaded  parties) include both the Distributing  Holder and the
indemnifying  party and the Distributing  Holder shall have been advised by such
counsel  that  there  may  be  one  or  more  legal  defenses  available  to the
indemnifying  party  different from or in conflict with any legal defenses which
may be  available  to the  Distributing  Holder (in which case the  indemnifying
party shall not have the right to assume the defense of such action on behalf of
the Distributing  Holder,  it being understood,  however,  that the indemnifying
party  shall,   in  connection   with  any  one  such  action  or  separate  but
substantially similar or related actions in the same jurisdiction arising out of
the same general allegations or circumstances, be liable only for the reasonable
fees and expenses of one separate firm of attorneys for the Distributing Holder,
which  firm shall be  designated  in writing  by the  Distributing  Holder).  No
settlement of any action against an indemnified  party shall be made without the
prior  written  consent of the  indemnified  party,  which  consent shall not be
unreasonably withheld.

     All fees and expenses of the indemnified party (including  reasonable costs
of defense and  investigation in a manner not inconsistent with this Section and
all reasonable  attorneys'  fees and expenses)  shall be paid to the indemnified
party,  as incurred,  within ten (10) Trading Days of written  notice thereof to
the indemnifying  party (regardless of whether it is ultimately  determined that
an indemnified  party is not entitled to  indemnification  hereunder;  provided,
that the indemnifying  party may require such indemnified  party to undertake to
reimburse  all such fees and  expenses  to the extent it is  finally  judicially
determined  that  such  indemnified  party is not  entitled  to  indemnification
hereunder).

     Section  7.  Contribution.  In order  to  provide  for  just and  equitable
contribution  under the Securities Act in any case in which (i) the  indemnified
party  makes a claim for  indemnification  pursuant  to  Section 6 hereof but is
judicially  determined (by the entry of a final judgment or decree by a court of
competent jurisdiction and the expiration of time to appeal or the denial of the
last right of appeal) that such indemnification may not be enforced in such case
notwithstanding the fact that the express provisions of Section 6 hereof provide
for  indemnification in such case, or (ii) contribution under the Securities Act
may be required on the part of any indemnified  party,  then the Company and the
applicable Distributing Holder shall contribute to the aggregate losses, claims,
damages  or  liabilities  to which  they may be subject  (which  shall,  for all
<PAGE>

purposes of this Agreement, include, but not be limited to, all reasonable costs
of defense and investigation and all reasonable attorneys' fees), in either such
case (after  contribution from others) on the basis of relative fault as well as
any  other  relevant  equitable  considerations.  The  relative  fault  shall be
determined by reference  to, among other  things,  whether the untrue or alleged
untrue statement of a material fact or the omission or alleged omission to state
a material fact relates to  information  supplied by the Company on the one hand
or the  applicable  Distributing  Holder on the  other  hand,  and the  parties'
relative intent, knowledge,  access to information and opportunity to correct or
prevent  such  statement or omission.  The Company and the  Distributing  Holder
agree that it would not be just and equitable if  contribution  pursuant to this
Section 7 were  determined  by pro rata  allocation  or by any  other  method of
allocation which does not take account of the equitable  considerations referred
to in this  Section 7. The amount paid or payable by an  indemnified  party as a
result of the  losses,  claims,  damages or  liabilities  (or actions in respect
thereof)  referred  to above in this  Section 7 shall be deemed to  include  any
legal  or  other  expenses  reasonably  incurred  by such  indemnified  party in
connection with  investigating  or defending any such action or claim. No person
guilty of fraudulent  misrepresentation  (within the meaning of Section 11(f) of
the Securities  Act) shall be entitled to  contribution  from any person who was
not guilty of such fraudulent misrepresentation.

     Notwithstanding  any other  provision  of this Section 7, in no event shall
any (i) Holder be  required  to  undertake  liability  to any person  under this
Section 7 for any amounts in excess of the dollar  amount of the net proceeds to
be received by such Holder from the sale of such Holder's Registrable Securities
(after  deducting  any  fees,  discounts  and  commissions  applicable  thereto)
pursuant to any Registration  Statement under which such Registrable  Securities
are to be registered  under the Securities Act and (ii)  underwriter be required
to undertake  liability to any person hereunder for any amounts in excess of the
aggregate discount, commission or other compensation payable to such underwriter
with respect to the  Registrable  Securities  underwritten by it and distributed
pursuant to the Registration Statement.

     Section 8. Notices. All notices, demands,  requests,  consents,  approvals,
and other  communications  required or permitted  hereunder  shall be in writing
and, unless otherwise  specified herein,  shall be (i) personally  served,  (ii)
deposited  in the mail,  registered  or  certified,  return  receipt  requested,
postage  prepaid,  (iii) delivered by reputable air courier service with charges
prepaid, or (iv) transmitted by hand delivery, telegram, or facsimile, addressed
as set forth below or to such other  address as such party shall have  specified
most recently by written notice. Any notice or other  communication  required or
permitted to be given hereunder shall be deemed effective (a) upon hand delivery
or  delivery  by  facsimile,   with  accurate  confirmation   generated  by  the
transmitting  facsimile  machine,  at the address or number designated below (if
delivered on a business day during normal business hours where such notice is to
be received),  or the first  business day following  such delivery (if delivered
other than on a business day during normal  business  hours where such notice is
to be received) or (b) on the second  business day following the date of mailing
by reputable courier service, fully prepaid,  addressed to such address, or upon
actual receipt of such mailing,  whichever shall first occur.  The addresses for
such communications shall be as set forth in the Purchase Agreement.

     Either  party  hereto may from time to time change its address or facsimile
number for notices  under this Section 8 by giving at least ten (10) days' prior
written  notice of such changed  address or facsimile  number to the other party
hereto.
<PAGE>

     Section 9. Assignment.  Neither this Agreement nor any rights of the Holder
or the Company  hereunder  may be assigned by either party to any other  person.
Notwithstanding the foregoing,  (a) the provisions of this Agreement shall inure
to the benefit of, and be  enforceable  by, any  transferee of any of the Common
Stock purchased by the Investor pursuant to the Purchase Agreement, and (b) upon
the  prior  written  consent  of  the  Company,   which  consent  shall  not  be
unreasonably withheld or delayed in the case of an assignment to an affiliate of
the Holder, the Holder's interest in this Agreement may be assigned at any time,
in whole or in part, to any other person or entity  (including  any affiliate of
the Holder) who agrees to be bound hereby.

     Section 10. Additional Covenants of the Company. The Company agrees that at
such  time as it  meets  all the  requirements  for  the use of  Securities  Act
Registration  Statement  on Form S-3 it shall file all reports  and  information
required to be filed by it with the  Commission  in a timely manner and take all
such other action so as to maintain such eligibility for the use of such form.

     Section 11.  Counterparts/Facsimile.  This Agreement may be executed in two
or more  counterparts,  each of which shall  constitute an original,  but all of
which, when together shall constitute but one and the same instrument, and shall
become  effective when one or more  counterparts  have been signed by each party
hereto and delivered to the other party.  In lieu of the  original,  a facsimile
transmission  or copy of the original  shall be as effective and  enforceable as
the original.

     Section  12.  Remedies.   The  remedies  provided  in  this  Agreement  are
cumulative  and not  exclusive  of any  remedies  provided  by law. If any term,
provision,  covenant  or  restriction  of this  Agreement  is held by a court of
competent  jurisdiction  to be  invalid,  illegal,  void or  unenforceable,  the
remainder of the terms, provisions,  covenants and restrictions set forth herein
shall remain in full force and effect and shall in no way be affected,  impaired
or invalidated,  and the parties hereto shall use their best efforts to find and
employ an alternative means to achieve the same or substantially the same result
as that  contemplated by such term,  provision,  covenant or restriction.  It is
hereby  stipulated  and  declared to be the  intention  of the parties that they
would have executed the remaining terms, provisions,  covenants and restrictions
without including any of such that may be hereafter  declared invalid,  illegal,
void or unenforceable.

     Section 13.  Conflicting  Agreements.  The Company shall not enter into any
agreement with respect to its securities  that is  inconsistent  with the rights
granted to the holders of Registrable  Securities in this Agreement or otherwise
prevents the Company from complying with all of its obligations hereunder.

     Section 14.  Headings.  The headings in this  Agreement  are for  reference
purposes only and shall not affect in any way the meaning or  interpretation  of
this Agreement.

     Section 15. Governing Law, Arbitration. This Agreement shall be governed by
and construed in accordance with the laws of the State of Delaware applicable to
contracts  made in Delaware by persons  domiciled in Delaware and without regard
to its principles of conflicts of laws.  Any dispute under this Agreement  shall
be submitted to  arbitration  under the American  Arbitration  Association  (the
"AAA") in San  Francisco,  California,  and shall be  finally  and  conclusively
<PAGE>

determined  by the decision of a board of  arbitration  consisting  of three (3)
members  (hereinafter  referred  to as the "Board of  Arbitration")  selected as
according to the rules governing the AAA. The Board of Arbitration shall meet on
consecutive  business  days in San  Francisco,  California,  and shall reach and
render a decision in writing  (concurred  in by a majority of the members of the
Board of Arbitration) with respect to the amount, if any, which the losing party
is required to pay to the other party in respect of a claim filed. In connection
with  rendering its decisions,  the Board of Arbitration  shall adopt and follow
the laws of the State of  Delaware.  To the extent  practical,  decisions of the
Board of  Arbitration  shall be rendered no more than thirty (30)  calendar days
following  commencement  of  proceedings  with  respect  thereto.  The  Board of
Arbitration  shall cause its written  decision  to be  delivered  to all parties
involved in the dispute.  The Board of  Arbitration  shall be authorized  and is
directed to enter a default  judgment  against any party refusing to participate
in the  arbitration  proceeding  with  thirty  days  of any  deadline  for  such
participation. Any decision made by the Board of Arbitration (either prior to or
after the  expiration  of such thirty (30)  calendar day period) shall be final,
binding  and  conclusive  on the  parties to the  dispute,  and  entitled  to be
enforced  to the  fullest  extent  permitted  by law and entered in any court of
competent  jurisdiction.  The  prevailing  party  shall be  awarded  its  costs,
including  attorneys'  fees,  from  the  non-prevailing  party  as  part  of the
arbitration award. Any party shall have the right to seek injunctive relief from
any court of competent  jurisdiction in any case where such relief is available.
The  prevailing  party in such  injunctive  action  shall be awarded  its costs,
including attorney's fees, from the non-prevailing party.

     Section 16. Severability.  If any provision of this Agreement shall for any
reason be held invalid or  unenforceable,  such  invalidity  or  unenforceablity
shall  not  affect  any  other  provision  hereof  and this  Agreement  shall be
construed as if such invalid or unenforceable provision had never been contained
herein.

<PAGE>

     IN WITNESS WHEREOF, the parties hereto have caused this Registration Rights
Agreement to be duly executed, on the day and year first above written.

                  Dated: June 30, 2000

                                        Paradigm Medical Industries, Inc.

                                        By:  /s/ Thomas F. Motter
                                           Thomas F. Motter, President & CEO

                                        Triton West Group, Inc.

                                         By: /s/ E. Edward Jung
                                            E. Edward Jung, Authorized Signatory

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