Document:

Exhibit 4.6

                              EMPLOYMENT AGREEMENT

THIS  AGREEMENT  is  entered  into  as of the  7th  day of  October,  2002  (the
"Commencement Date") by and among Americabilia.com,  Inc., a Florida Corporation
(hereinafter the "Company"), and Oswaldus Van Dam, an individual residing in Las
Vegas, NV ("Employee");

                                     RECITAL

WHEREAS,  the Company desires to retain the services of Employee and Employee is
willing to be employed by  Company,  on the terms and subject to the  conditions
set forth in this Agreement.

                                    AGREEMENT

NOW, THEREFORE, the parties as follows:

SECTION  1. AS USED IN THIS  AGREEMENT,  THE  FOLLOWING  TERMS  SHARE  HAVE  THE
MEANINGS SET FORTH BELOW:

"AFFILIATE" shall mean a corporation which, directly or indirectly, controls, is
controlled  by or is  under  common  control  with  the  Company,  or which is a
successor in interest to the Company, and for put-poses hereof,  "control" shall
mean the  ownership of 20% or more or the voting  shares of the  corporation  in
question.

"BASIC  SALARY"  shall  have the  meaning  assigned  to it in  Section 5 of this
Agreement.

"THE BUSINESS" shall mean the business  conducted by the Company in the past and
on the date of execution of this Agreement,  including business activities under
investigation or in developmental  stages,  all other business  activities which
flow  therefrom  by a  reasonable  expansion  of the present  activities  of the
Company,  all business  activities  which may be developed by the Company during
the Term,  and all  business  activities  now  conducted  by the  Company or any
Affiliate  thereof or which may be developed by the Company or such  Affiliates,
during the term of this  Agreement,  as  reasonable  expansions of their present
activities.

"COMMENCEMENT DATE" shall be the effective date of this Agreement,  as stated on
page 1.

"CONFIDENTIAL INFORMATION" shall include, without limitation,  trade "know-how,"
trade secrets,  subscriber,  advertiser and customer  lists,  pricing  policies,
operational methods, methods of doing business,  technical processes,  formulae,
designs and design projects,  inventions,  research projects, and other business
affairs of the Company or its  Subsidiaries  and Affiliates,  which (i) were, in
the case of the  Company,  or is ot- are designed to be used in or are or may be
useful in  connection  with the  business  of the Company or any  Subsidiary  or
Affiliate  thereof or which, in the case of any of these entities,  results from
any of the research or development  activities of any such entity, which (ii) is
private or  confidential  in that it is not generally  known or available to the
public,  except  as the  result of  unauthorized  disclosure  by or  information
supplied by Employee  or (iii)  which  gives the  Company or any  Subsidiary  or
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Affiliate  of the Company an  opportunity  or the  possibility  of  obtaining an
advantage over  competitors who may not know or use such  information or who are
not lawfully permitted to use the same.

"EMPLOYMENT YEAR" shall mean each twelve-month  period, or part thereof,  during
which Employee is employed hereunder,  commencing on the Commencement Date or on
October  1 of  any  subsequent  calendar  -  year,  the  first  such  subsequent
Employment  Year being the  twelve-month  period  which will begin on October 1,
2002.

"FISCAL  QUARTER" shall mean each  four-month  period,  or part thereof,  during
which Employee is employed hereunder,  commencing on the Commencement Date or on
October 1 of any  subsequent  calendar year,  the first such  subsequent  Fiscal
Quarter being the four-month period which will begin on October 1, 2002.

"INCENTIVE BONUS" shall have the meaning assigned to it in Section 6.

"PERSON" shall mean any  individual,  sole  proprietorship,  partnership,  joint
venture,   trust,   unincorporated   organization,   association,   corporation,
institution,  public benefit corporation, entity or government (whether Federal,
state, county, city, municipal or otherwise,  including, without limitation, any
instrumentality , division, agency, body or department thereof).

"RESTRICTED  PERIOD" shall mean the term of  employment  of Employee  under this
Agreement or any extension thereof and the twelve- month period  thereafter,  or
such  shorter  period  as may be  provided  pursuant  to any  sections  of  this
Agreement-  provided,  however,  that  the  Restricted  Period  shall  terminate
immediately upon the Occurrence of any termination of the employment of Employee
by the Company other than pursuant to this Agreement or as authorized by law.

"SUBSIDIARY"  shall mean a corporation,  50% or more of the  outstanding  voting
shares of which is owned or controlled directly or indirectly by the Company.

"TERM" shall mean the ten-n of employment of Employee under this Agreement.

"TERMINATION DATE" shall have the meaning assigned to it in Section 8.

"TERMINATION PAYMENT" shall have the meaning assigned to it in Section 8.

Wherever from the context it appears appropriate,  each word or phrase stated in
either the singular or the plural shall include the singular and the plural, and
each pronoun  stated in the  masculine,  feminine or neuter gender shall include
the masculine, feminine and neuter.

SECTION 2. EMPLOYMENT AND DUTIES OF EMPLOYEE.

2.1.  EMPLOYMENT;  TITLE;  DUTIES.  The Company  hereby  employs  Employee,  and
Employee  hereby accepts  appointment as employee of the Company.  The principal
duty of  Employee  shall  be to serve in such  capacities.  In such  capacities,
Employee  shall tender such  services as are  necessary and desirable to protect
and advance the best interests of the Company,  acting, in all instances,  under
the  supervision  of and in  accordance  with the  policies  set by the Board of
Directors.
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2.2. PLACE OF EMPLOYMENT. The principal place of employment of Employee shall be
in Las Vegas,  NV ,or such  location  as is  consented  to by  Employee  and the
Company.  It is however  distinctly  understood  and agreed that Employee may be
required, in connection with the performance of his duties, to work from time to
time at other  locations  designated by the Board or Directors or as required in
connection  with the Business of the Company.  When required to travel to and/or
spend  time  at  such  other  locations,  Employee's  reasonable  traveling  and
temporary  living  expenses shall be reimbursed to him by the Company,  upon his
submittal of detailed written vouchers,  supported by appropriate  documentation
and subject to the general reimbursement policies of the Company with respect to
executive officers.

2.3  PERFORMANCE  OF DUTIES.  Employee  shall  devote his full  working time and
efforts to the  performance  of his duties as an executive of the Company and to
the  performance  of such other  duties as are assigned him from time to time by
the Board of Directors of the  Company.  Employee  shall not engage in or become
employed,  directly or indirectly, in the commercial or professional business of
any other Person, without the prior written consent of the Board of Directors of
the  Company,  nor shall he act as a  consultant  to or provide any services to,
whether on a remunerative  basis or otherwise,  the  commercial or  professional
business of any other  Person,  without such  written  consent,  which,  in both
instances,  may be given or withheld by the Board of  Directors  in its absolute
discretion.  Attention to Employee's personal investments shall not be deemed to
violate this  Subsection to the extent such  attention  does not  constitute the
conduct of a separate business.

2.4  SERVICES  TO THE  COMPANY  AND/OR ITS  AFFILIATES.  During the term of this
Agreement,  it is understood that Employee may be requested from time to time to
provide  assistance or  consultative or other services to, or to act temporarily
as an Executive of an Affiliate or  Subsidiary  of the Company.  Employee  shall
perform  such  services  and,  if elected as all officer or director of any such
other  company,  shall hold such  office  (and  discharge  its  duties)  without
additional compensation other than the compensation set forth in this Agreement.
During the term of this  Agreement,  Employee  shall  also  accept  election  or
appointment,  and serve,  during all or any part of the Term,  as an officer and
director of any  Subsidiary of the Company,  and perform the duties  appropriate
thereto,  without  additional  compensation  other  than  as set  forth  in this
Agreement.

SECTION 3. TERM OF EMPLOYMENT.

The employment of Employee  pursuant to this Agreement  shall commence as of the
Commencement  Date and end on the  earlier to occur of (i)  October 1, 2012,  or
(ii) the first date on which such  employment is  terminated in accordance  with
Section 10 hereof (the "Termination Date").

SECTION 4. COMPENSATION AND BENEFITS.

The Company  shall pay  Employee as  compensation  for all of the services to be
rendered by him hereunder  during the Term, and in  consideration of the various
restrictions  imposed upon Employee  during the Term and the Restricted  Period,
and  otherwise  under this  Agreement,  the Basic  Salary and other  benefits as
<PAGE>
provided for and  determined  pursuant to Sections 5 to 10,  inclusive,  of this
Agreement.

SECTION 5. BASIC SALARY

The Company shall pay Employee,  as  compensation  for all of the services to be
rendered  hereunder by him during the Term, a salary of $6,000.00 per month (the
"Basic Salary"), payable in accordance with the regular payroll practices of the
Company for  executives,  less such deductions as are required to be deducted or
withheld by applicable  laws or  regulations  and less such other  deductions or
amounts,  if any,  as are  authorized  by  Employee.  Such  Basic  Salary may be
increased,  but not decreased,  from time to time in the sole  discretion of the
Board of  Directors.  In  addition  Employee  shall  receive  0.65% (  sixtyfive
hundredths of 1 percent) of the current  outstanding  shares each quarter in S-8
stock upon the first day of such quarter.

SECTION 6. INCENTIVE BONUS.

6.1. OBLIGATION TO PAY INCENTIVE BONUS. Employee shall be eligible to receive as
additional  compensation,  30 days after the day the Board of Directors approves
interim  financial  statements for the last-ended  Fiscal Year, 1% of the issued
and outstanding shares of the Company if the gross revenues exceeds  $10,000,000
for the year ending  October 1, 2003,  a 20% increase  over the  previous  years
gross  revenue in the year ending  October 1, 2004 and a 10%  increase  for each
year after that. (the "Incentive Bonus").

6.3 No  ASSIGNMENT.  Employee  shall  have no right to  assign or give any third
parties  any  rights  in and to the  Incentive  Bonus,  except  that his  rights
thereto,  in the  event of his  death,  shall  be  transferred  to the  personal
representatives of his estate.

SECTION 7. ADDITIONAL BENEFITS AND REIMBURSEMENT FOR EXPENSES.

7.1.  ADDITIONAL  BENEFITS.  The Company shall provide the following  additional
benefits to Employee during the Term:

(i)  Participation  on  an  equitable  basis  in  medical,   hospitalization  or
accident/disability insurance plans and health programs; and

(ii) Four (4) weeks vacation with pay in each Employment Year comparable to that
afforded other executives of the Company and its subsidiaries. Provided however,
Employee shall not be entitled to take more than ten (10)  consecutive  business
days as vacation days without prior approval of the Company's Board of Directors
upon Employee's request made not less than three (3) weeks prior to the intended
vacation days, which approval shall not be unreasonably withheld.  There will be
no carryover of unused  vacation time or pay from year to year.  Employee  shall
also be  entitled to all holiday  privileges  regularly  observed by the Company
during the Term.

In addition,  the Company,  in its sole discretion,  may include Employee in any
benefit  plans  which  it  now  maintains  or  establishes  in  the  future  for
executives.
<PAGE>
7.2. REIMBURSEMENT FOR EXPENSES. The Company shall pay or reimburse Employee for
all reasonable  expenses actually incurred or paid by him during the performance
of his services under this Agreement,  upon presentation of such bills,  expense
statements,  vouchers or such other  supporting  information  as the Company may
reasonably  require.  The Board of Directors may from time to time require prior
approval for  individual  expense items in excess of  pre-established  aggregate
amounts for a fixed period or in excess of pre-established  amounts for any type
of expenditure during any fixed period.

SECTION 8. TERMINATION OF EMPLOYMENT.

8.1.  DEATH.  If  Employee  dies  during  the Term,  the  Company  shall pay his
designated  beneficiary  an amount  equal to one year's  compensation,  in equal
payments  over the next twelve  months.  If Employee  dies during the Term,  his
rights to receive his Incentive Bonus hereunder for any Fiscal Quarter which has
ended shall remain vested in his estate,  but his fight to receive his Incentive
Bonus for the Fiscal  Quarter in which he has died shall be prorated to the date
of his death. If Employee dies during the Term,  neither Employee nor his estate
shall have any  further  fight to receive an  Incentive  Bonus  except as stated
hereinabove.

8.2. DISABILITY.

8.2.1. If, during the Term,  Employee becomes  physically or mentally  disabled,
whether totally or partially,  so that he is unable to perform substantially all
his services  hereunder for (i) a period of six (6) consecutive  months, or (ii)
for shorter  periods  aggregating  six (6) months  during any twelve ( 12) month
period, the Company may, at any time after the last day of the sixth consecutive
month of disability, or after the day on which the shorter periods of disability
shall have  equaled an  aggregate  of six (6) months,  reduce  compensation  due
Employee from that day forward by  twenty-five  percent (25%).  Employee's  full
compensation shall be reinstated upon the Board of Directors' determination that
Employee has become able again to perform all his services hereunder. If, during
the  Term,  Employee's  disability  Continues  Such that  Employee  is unable to
perform  substantially  all his services  hereunder for (i) a period or nine (9)
consecutive  months,  or (ii) for shorter  periods  aggregating  nine (9) months
during any twelve (12) month period, the Company may, at any time after the last
day of the  ninth  consecutive  such  month,  or after the last day on which the
shorter  periods of  disability  shall have  equaled  an  aggregate  of nine (9)
months,  terminate  Employee's  employment by written notice to him. The date on
which Company sends written  notice,  of termination  under this  Subsection 8.2
shall be the Termination Date hereunder. In case of any dispute as to whether or
not  Employee  is  disabled  within the  meaning  of this  Subsection  8.2,  the
determination  of disability is to be made by a licensed  physician  selected by
the Board of  Directors  of the  Company  and  acceptable  to  Employee,  in his
reasonable  judgment,  which physician's  decision shall be final and binding on
the parties hereto. In the event Employee's employment is terminated pursuant to
this  Subsection  8.2,  the  Company  shall  pay  him  an  amount  equal  to all
compensation  remaining  unpaid  at the time of the  Termination  Date  plus any
compensation  that would accrue to Employee  through the end of the month of the
Termination  Date. If Employee's  employment is terminated under this Subsection
8.2, his right to receive his Incentive  Bonus  hereunder for any Fiscal Quarter
which has ended shall  remain  vested,  but his right to receive  his  Incentive
<PAGE>
Bonus for the Fiscal Quarter in which he is terminated  shall be prorated to the
Termination  Date,  as provided in  Subsection  6.2, and Employee  shall have no
right to receive further Incentive Bonus payments thereafter.

8.3  TERMINATION  FOR CAUSE.  If Employee  is  convicted  of or indicted  for an
offense  involving  (i)  fraud,  (ii)  embezzlement,  or (iii) any  other  crime
involving moral turpitude,  or if Employee commits (iv) gross or willful neglect
of duty,  (v) a breach  of any of the  material  provisions  of this  Employment
Agreement,  on his part to be performed (including breach of the representations
and  warranties  of Section 9), (vi) such  conduct as results or as is likely to
result in  substantial  damage to the  reputation of the Company,  or any of its
Subsidiaries  or  Affiliates,  or (vii)  if  Employee  declines  to  follow  any
significant  instruction  adopted by the Board of  Directors  of the Company and
communicated  to  Employee,  and if Employee  adheres to  persistent  refusal or
neglect to follow  such  instructions  or policy,  the  Company  may at any time
thereafter terminate  Employee's  employment hereunder by written notice to him,
effective  immediately and the date of the notice shall be the Termination  Date
hereunder. Any Such termination shall be deemed to be termination for cause, for
purposes of this  Agreement.  It' Employee's  employment is terminated for cause
hereunder,  then  Employee  shall be  entitled  to  receive  only the  following
payments:  any  portion  of his  Basic  Salary  accrued  to  the  date  of  such
termination and not theretofore paid to him; and any Incentive Bonus to which he
is entitled for any completed  Fiscal  Quarter under this contract which has not
theretofore  been paid to him;  plus  reimbursement  for any  expenses  properly
incurred by Employee, and supported by appropriate vouchers, which expenses have
been  incurred  prior  to the  date of  such  termination  and  which  have  not
theretofore  been reimbursed.  Except as set forth in the immediately  preceding
sentence,   all  of  Employee's  rights  to  compensation   hereunder  shall  be
terminated, in the event of termination for cause, as of the Termination Date.

8.4  CONSTRUCTIVE  TERMINATION  OF  EMPLOYEE.  In the event the Company  removes
Employee  from the  position  of  Executive  Vice  President,  or if Employee is
removed  as a  Director  of the  Company  without  his  consent  (or fails to be
re-elected  at any meeting of the Board of Directors of the Company held for the
purpose of electing or  reelecting  Directors of the  Company) or  substantially
changes his duties or his  reporting  responsibility  to the Board of  Directors
under Section 2.1, the  employment of Employee,  at his option,  exercisable  by
written notice given to the Company at any time within sixty (60) days following
such event (or failure to  re-elect)  (time of notice  being deemed to be of the
essence), shall be deemed to have been constructively  terminated by the Company
hereunder,  as of the date of Employee's notice;  provided,  however,  that such
constructive  termination  shall not be deemed a breach  by the  Company  of its
obligations under this Agreement and further provided, however, that termination
for  cause  pursuant  to  Subsection  8.3  shall  make  the  provisions  of this
Subsection 8.4 inapplicable. The date of such written notice shall be deemed the
Termination Date hereunder.

If  Employee's  employment  is  terminated  under this  Subsection  8.4, and the
Termination Date is within four years of the Commencement  Date,  Employee shall
receive,  within  thirty  (30) days of such  written  notice to the  Company,  a
Termination  Payment,  which  shall be  determined  according  to the  following
schedule:  (i) if the  Termination  Date  hereunder  is  within  one year of the
Commencement  Date,  the  Termination  Payment shall be one million five hundred
thousand dollars ($1,500,000);  (ii) if the Termination Date is within two years
of the  Commencement  Date, the  Termination  Payment shall be one million three
<PAGE>
hundred fifty thousand  dollars  ($1,350,000);  (ii) if the Termination  Date is
within three years of the  Commencement  Date, the Termination  Payment shall be
one million two hundred thousand dollars  ($1,200,000);  (iv) if the Termination
Date is within four years of the  Commencement  Date,  the  Termination  Payment
shall  be one  million  fifty  thousand  dollars  ($1,050,000),  and  so  forth.
Additionally,  Employee  shall  continue  to  receive  the  additional  benefits
provided in  Subsection  7.1 for a period of two (2) years from the  Termination
Date.

If  Employee's  employment  is  terminated  under this  Subsection  8.4, and the
Termination Date is later than four years after the Commencement Date,  Employee
shall  receive an amount  equal to his  aggregate  Base Salary for two (2) years
following the date of such Constructive  Termination,  or an amount equal to his
aggregate  Base  Salary  through  the end of the Term,  whichever  is the lesser
amount, and Employee shall continue to receive the additional  benefits provided
in  Subsection  7.1 during the period lie is  entitled  to receive  Base  Salary
pursuant to the provisions of this Subsection 8.4.

In the event or the Constructive  Termination of Employee's  Employment pursuant
to this Section  8.4,  Employee's  tight to receive an Incentive  Bonus for each
Fiscal  Quarter  completed  during  the  period of such  continued  Base  Salary
payments shall remain in effect,  and  Employee's  fight to receive an Incentive
Bonus on account  of the year in which his  employment  terminated  by virtue of
Constructive Termination shall be prorated to the date of such termination.

8.5. OTHER  TERMINATION  OF EMPLOYMENT BY THE COMPANY.  In the event the Company
terminates  the employment of Employee  hereunder  other than pursuant to any of
the prior  provisions  hereof,  without  Employee's  consent,  Employee shall be
deemed  to  have  been  constructively  terminated  by  the  Company,  and  such
termination shall be subject to the provisions of Subsection 8.4.

8.6.  OTHER  TERMINATION  OF  EMPLOYMENT  BY  EMPLOYEE.  If  Employee  quits his
employment  (other than as authorized under Subsection 8.4 hereof),  he shall be
deemed to have been  terminated by the Company for cause and shall be subject to
the provisions of Subsection 8.3 hereof

SECTION 9. REPRESENTATIONS AND WARRANTIES BY EMPLOYEE.

Employee hereby  represents and warrants,  the same being part of the essence of
this  Agreement,  that,  as of the  Commencement  Date, he is not a party to any
agreement,  contract  or  understanding,  and no others  facts or  circumstances
exist,  which  would in any way  restrict or prohibit  him from  undertaking  or
performing  any  or  his  obligations   under  this  Agreement.   The  foregoing
representation and warranty shall remain in effect throughout the Term.

SECTION 10.  CONFIDENTIAL INFORMATION AND PROPRIETARY INTERESTS.

10.1.  ACKNOWLEDGMENT OF CONFIDENTIALITY . Employee understands and acknowledges
that he may obtain Confidential  Information in the performance of his services.
Employee further  acknowledges  that the services to be rendered by him are of a
special,  unique and  extraordinary  character and that, in connection with such
services,  lie  will  have  access  to  Confidential  Information  vital  to the
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Company's,  its Subsidiaries' and Affiliates'  business and perhaps vital to the
business of the Company. Accordingly,  Employee agrees that he shall not, either
during  the  Term or at any  time  thereafter,  (i)  use or  disclose  any  such
Confidential   Information  outside  the  Company,   and  its  Subsidiaries  and
Affiliates;  (ii) publish any works,  speeches or articles with respect thereto;
or  (iii),  except  as  required  in the  proper  performance  of  his  services
hereunder,  remove or aid in the removal 1'roi-n the premises of the Company, or
its Subsidiaries or Affiliates,  of any Confidential Information or any property
or material relating thereto.

The  foregoing  confidentiality  provisions  shall cease to be applicable to any
Confidential Information which becomes generally available to the public (except
by reason of or in consequence of a breach by Employee of his obligations  under
this Section 10).

In the event  Employee is required by law or a court order to disclose  any such
Confidential  Information,   he  shall  promptly  notify  the  Company  of  such
requirement and provide the Company with a copy of any court order or of any law
which in his opinion  requires  such  disclosure  and, if the Company so elects,
permit the Company an adequate opportunity,  at its own expense, to contest such
law or court order

10.2. DELIVERY of Material. Employee shall promptly, and without charge, deliver
to the Company on the termination of his employment  hereunder,  or at any other
time the  Company  may so  request,  all  memoranda,  notes,  records,  reports,
manuals,  computer disks, videotapes,  drawings,  blueprints and other documents
(and all  copies  thereof  relating  to the  business  of the  Company,  and its
Subsidiaries and Affiliates, and all property associated therewith, which he may
then possess or have under his control.

10.3.  CUSTOMER LISTS.  Employee  acknowledges  that (i) all lists of suppliers,
advertisers,  customers  and  vendors of the Company or of its  Subsidiaries  or
Affiliates  developed during the course or Employee's  employment  and/or by the
Company are and shall be the sole and  exclusive  property of the  Company,  its
Subsidiaries  or  Affiliates,  as  the  case  i-nay  be,  and  Employee  further
acknowledges  and agrees that lie neither has nor shall have any personal right,
title or  interest  therein;  (ii) that such lists are and must  continue  to be
confidential-,  and  (iii)  that  such  lists  are  not  readily  accessible  to
competitors of the Company or its Subsidiaries or Affiliates.

10.4. IDEAS,  PROGRAMS,  ETC. If, during the Term,  Employee invents or develops
any ideas,  programs,  formats,  software  systems or the likes,  source  codes,
proprietary  codes or the like,  relating  to or useful in  connection  with the
Business  of the  Company,  the same are and shall  remain the  property  of the
Company,  and lie will  promptly  deliver all copies of the same to the Company,
assign his  interest  therein to the Company and execute  such  documents as the
Company's counsel may request to convey title thereto to the Company  including,
but not  limited  to  patent  applications,  copyright  applications,  trademark
applications and the like.  Employee shall not be entitled to any  compensation,
other than as provided in this  Agreement,  for carrying out his  obligations to
the Company under Subsection 10.4 or any other Subsection of this Section 10.
<PAGE>
SECTION 11. NON-COMPETITION PROVISIONS.

Employee agrees that he will not, during the Restricted Period, compete directly
or indirectly with the business of the Company.  The phrase "compete directly or
indirectly with the business of the Company" shall be deemed to include, without
limiting the  generality  thereof,  (1) engaging or having a material  interest,
directly or indirectly, as owner, employee,  officer,  director,  partner, sales
representative,  stockholder, capital investor, lessor, renderer of consultation
services or advise,  either alone or in association  with another or others,  in
the  operation of any aspect of any type of business or  enterprise  competitive
with the  business  or  operation  of the  Company-  (2)  soliciting  any of the
employees  of the Company to leave the employ of the Company,  or so  soliciting
any employee of any  Subsidiary or Affiliate of the Company;  (3) soliciting any
of the employees of the Company to become  employees of any other Person,  or so
soliciting  any employee of any  Subsidiary or Affiliate of the Company,  or (4)
soliciting  any  customer  or  supplier  of  the  Company  or any  Affiliate  or
Subsidiary  of  either  of them,  with  respect  to their  business.  Similarly,
Employee shall not raid, entice or induce any Person who on the Termination Date
is, or within one (1) year  immediately  preceding the  Termination  Date was, a
customer or supplier of the Company,  or any of its  Subsidiaries or Affiliates,
to become a customer of any other  Person for  products or services the same as,
or  similar  to,  those  products  and  services  as from time to time  shall be
provided by the Company, or any of its Subsidiaries and Affiliates, and Employee
shall not approach any Person for such purpose;  nor shall Employee raid, entice
or  induce  any  Person  who on the  Termination  Date is,  or  within  one year
immediately  preceding the Termination Date was, an employee of the Coi-npany or
any of its  Subsidiaries or Affiliates,  to become employed by any other Person;
similarly,  Employee  shall not approach  any such  employee for such purpose or
authorize or knowingly approve the taking of such actions by any other Person or
assist any such other Person in taking any such action.

The phrase  "compete  directly or  indirectly  with the business of the Company"
shall not be deemed to include all ownership  interest as an inactive  investor,
which, for purposes of this Agreement,  shall mean only the beneficial ownership
of less than five (5%) percent of the outstanding  shares of any series or class
of securities of any competitor of the Company,  which securities of such series
or class are publicly traded in the securities market.

SECTION 12.  DISPUTES AND REMEDIES.

12.1. WAIVER OF JURY TRIAL. EMPLOYEE AND THE COMPANY HEREBY WAIVE THE RIGHT TO A
TRIAL BY JURY IN THE EVENT OF ANY DISPUTE WHICH ARISES UNDER THIS AGREEMENT.

12.2.  INJUNCTIVE RELIEF. If Employee commits a breach, or threatens to commit a
breach,  of any of the  provisions  of  Section 2 or of  Sections  10 or 11, the
Company  shall have the  following  rights and remedies  (each of which shall be
independent of the other, and shall be severally  enforceable,  and all of which
shall be in  addition  to,  and not in lieu of, any other  rights  and  remedies
available to the Company)
<PAGE>
(i) the right and remedy to have the provisions of this  Agreement  specifically
enforced by any court  having  equity  jurisdiction,  it being  acknowledged  by
Employee that any such breach or threatened breach will or may cause irreparable
injury to the Company and that money damages will or may not provide an adequate
remedy to the Company- and

(ii) the right and remedy to require Employee to account for and pay over to the
Company all compensation,  profits, monies, increments, things of value or other
benefits,  derived  or  received  by  Employee  as the  result  of any  acts  or
transactions  constituting  a breach of any of the provisions of Section 2 or of
Sections 10 or 11 of this  Agreement,  and Employee hereby agrees to account for
and pay over all such compensation, profits, monies, increments, things of value
or other benefits to the Company.

Employee  specifically  agrees  not to  object  to any  application  made by the
Company  to  any  court  having  equity  jurisdiction,   seeking  an  injunction
restraining  him from  committing,  threatening  or continuing  any violation of
Section 2 or Sections 10 or 11 of this Agreement.

12.3.  PARTIAL  ENFORCEABILITY.  If any  provision  contained in Section 2 or in
Section  10  or  11,  or  any  part  thereof  is  construed  to  be  invalid  or
unenforceable, the same shall not affect the remainder of Employee's agreements,
covenants and undertakings,  or the other restrictions which he has accepted, in
Section 2 or in Sections 10 or 11, and the remaining such agreements, covenants,
undertakings  and  restrictions  shall be given  the  fullest  possible  effect,
without regard to the invalid parts.

12.4 ADJUSTMENT OF  RESTRICTIONS.  Despite the prior  provisions of this Section
12, if any covenant or agreement  contained in Sections 2, 10 or 11, or any part
thereof,  is held by any court of  competent  jurisdiction  to be  unenforceable
because  of the  duration  of such  provision  or the  geographic  area  covered
thereby,  the court making such determination shall have the power to reduce the
duration or geographic  area of such  provision  and, in its reduced form,  such
provision shall be enforceable.

12.5.  ATTORNEYS FEES AND EXPENSES.  In the event that any action, suit or other
proceeding  at law or in equity is  brought to enforce  the  provisions  of this
Agreement,  or to obtain money damages for the breach  thereof,  and such action
results in the award of a judgment  for money  damages or in the granting of any
injunction in favor of the Company, then all reasonable expenses, including, but
not limited to, reasonable  attorneys' fees and  disbursements  (including those
incurred  on appeal) of the  Company in such  action,  suit or other  proceeding
shall (on demand of the Company)  forthwith be paid by Employee.  If such action
results  in a  judgment  in favor of  Employee,  then all  reasonable  expenses,
including  but not  limited to,  reasonable  attorney's  fees and  disbursements
(including  those incurred on appeal) of Employee in such action,  suit or other
proceeding shall (on demand of Employee) forthwith be paid by the Company.

12.6.  LIMITED  ENFORCEABILITY.  In the event that Employee  elects to terminate
this  Agreement  pursuant  to  Subsection  8.4, or the  Company  terminates  the
employment of Employee hereunder other than pursuant to any of the provisions of
this Agreement,  Employee shall be released as of the Termination  Date from any
and all further restrictions pursuant to Section 2 and Section 11.
<PAGE>
SECTION 13. SURVIVAL

The  provisions  of  Sections  10,  11,  12 and this  Section  13 shall  survive
termination of this Agreement and remain enforceable according to their terms.

SECTION 14. SEVERABILITY.

The invalidity or  unenforceability  of any provision or this Agreement shall in
no way affect the validity or enforceability of any other provisions hereof.

SECTION 15. NOTICES.

All notices,  demands and  requests  required or permitted to be given under the
provisions of this  Agreement  shall be deemed duly given if made in writing and
delivered  personally or mailed by postage prepaid certified or registered mail,
return  receipt  request,  accompanied  by a second copy sent by ordinary  mail,
which notices shall be addressed as follows;

If to the Company:

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

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

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

With a copy to:

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

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

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

If to Employee:

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

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

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

By notifying  the other parties in writing,  given as  aforesaid,  any party may
from  time to time  change  its  address  or the  name or any  person  to  whose
attention  notice is to be given, or may add another person,  to whose attention
notice is to be given, in connection with notice to any party,
<PAGE>
SECTION 16. ASSIGNMENT AND SUCCESSORS.

Neither this Agreement nor any of his fights or duties hereunder may be assigned
or delegated by Employee. This Agreement is not assignable by the Company except
to any successor in interest  which takes over all or  substantially  all of the
business of the Company, as it is conducted at the time of such assignment.  Any
corporation  into or with which the Company is merged or  consolidated  or which
takes over all or  substantially  all of the business of Company shall be deemed
to be a successor of the Company for  purposes  hereof this  Agreement  shall be
binding upon and, except as aforesaid, shall inure to the benefit of the parties
and their respective successors and permitted assigns.

SECTION 17. ENTIRE AGREEMENT AND WAIVER.

17.1.  INTEGRATION.  This Agreement contains the entire agreement of the parties
hereto on its subject matter and supersedes all previous  agreements between the
parties hereto, written or oral, express or implied, covering the subject matter
hereof  No  representations,   inducements,  promises  or  agreements,  oral  or
otherwise,  not  embodied  herein,  shall be of any force or  effect.  Provided,
however,  that this Agreement  shall not affect or operate to reduce any benefit
or  compensation  inuring  to  Employee  of a kind  elsewhere  provided  and not
expressly provided in this Agreement,  including,  without limitations any grant
of Incentive Stock Options to Employee.

17.2.  NO WAIVER.  No waiver or  modification  of any of the  provisions of this
Agreement  shall be valid  unless in  writing  and signed by or on behalf of the
party granting such waiver or modification. No waiver by any party of any breach
or default  hereunder  shall be deemed a waiver of any repetition of such breach
or default or shall be deemed a waiver of any other breach or default, nor shall
it in any way affect any of the other terms or conditions  of this  Agreement or
the  enforceability  thereof.  No failure of the Company to  exercise  any power
given it  hereunder  or to insist upon strict  compliance  by Employee  with any
obligation  hereunder,  and no custom or  practice  at  variance  with the terms
hereof,  shall  constitute a waiver of the right of the Company to demand strict
compliance with the terms hereof

Employee  shall not have the right to sign any  waiver  or  modification  of any
provisions  of this  Agreement  on behalf of the  Company,  nor shall any action
taken by  Employee,  as the Vice  President  of  Marketing  of the  Company,  or
otherwise, reduce his obligations under this Agreement.

This  Agreement  may not be  supplemented  or rescinded  except by instrument in
writing signed by all of the parties hereto after the Commencement Date. Neither
this  Agreement  nor any of the rights of any of the  parties  hereunder  may be
terminated except as provided herein.

SECTION 18. GOVERNING LAW.

This  Agreement  shall  be  governed  by  and  construed,  and  the  rights  and
obligations of the parties hereto  enforced,  in accordance with the laws of the
State of Florida.
<PAGE>
SECTION 19. HEADINGS.

The Section and Subsection  headings contained herein are for reference purposes
only and shall not in any way  affect the  meaningg  or  interpretation  of this
Agreement.

IN WITNESS  WHEREOF,  the parties have  executed  this  Agreement as of the date
first written above, which shall be deemed to be the Commencement Date.

         "The Company"

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

         By:
         Its President and CEO

         "Employee"

         -----------------------------Exhibit 10.1

                              AMENDED AND RESTATED
                              EMPLOYMENT AGREEMENT

     This Amended and Restated  Employment  Agreement (the "Agreement") shall be
effective,  as of July 15, 2002,  by and between  OrthoLogic  Corp.,  a Delaware
corporation (the "Company"), and Thomas R. Trotter ("Employee").

RECITALS:

     A.   Employee  has  been  employed  by  the  Company  in  the  position  of
President/CEO,  pursuant to an  Employment  Agreement  that was  effective as of
October 20, 1997 (the "1997 Employment Agreement").

     B. The parties now wish to amend the 1997 Employment Agreement by replacing
it with this Agreement for all purposes.

AGREEMENTS:

     The parties hereby agree as follows:

     1. REPLACEMENT OF 1997 EMPLOYMENT  AGREEMENT.  Effective  immediately,  the
1997 Employment  Agreement shall be replaced by this Agreement for all purposes.
The consideration for such amendment and replacement is solely as stated in this
Agreement  and neither  party shall have any further  rights or duties under the
1997 Employment Agreement.

     2. DEFINITIONS.  Capitalized terms used in this Agreement and not otherwise
defined herein shall have the meanings assigned to them in Exhibit A.

     3. EMPLOYMENT AND DUTIES.

          (a)  DEFINITION OF  "ELECTION."  Within the  limitations  described in
Sections 9 and 10 of this Agreement, either party may give the other notice that
he or it has elected to begin a two-year  transition  leading to the termination
of Employee's  employment  by the Company.  Such a notice is referred to in this
Agreement as an "Election."

          (b) DUTIES BEFORE AN ELECTION.  Subject to the terms and conditions of
this Agreement, prior to an Election, the Company employs Employee to serve in a
managerial  capacity and as a member of its Board of Directors (the "Board") and
Employee   accepts  such  employment  and  agrees  to  perform  such  reasonable
responsibilities  and duties as may be  assigned to him from time to time by the
Board.  Employee's  title shall be  President/CEO  of the Company,  with general
responsibility for Company operations.  Employee will report to the Board. Prior
to an Election, the Company shall use its best efforts to maintain Employee as a
member of the Board.

          (c) DUTIES AFTER AN ELECTION.  Effective immediately upon an Election,
Employee  will  report  to the  Company's  President  and CEO or to the Board as
determined by the Board.  Employee  shall not have an official  title or any set
work hours. While various projects assigned to Employee may require more or less
time within any given  month,  it is  contemplated  that,  without his  consent,
Employee will not be asked to work on Company matters for more than 7.5 days per
quarter. Effective upon an Election,  Employee hereby resigns from the Board and
as an  officer  of the  Company.  Employee  understands  that from and after the

                                      -1-

**Text has been omitted pursuant to a confidentiality  request. Omitted text has
been filed with the Securities & Exchange Commission.
<PAGE>

Election, and until the end of the term of this Agreement,  the Company will not
provide him with an office,  but will provide  reasonable  secretarial and other
staff support and will provide ancillary office equipment such as a fax machine,
dictating  equipment  and a desk-top  computer that Employee may continue to use
until  the end of the  term at  another  location  selected  by  him.  After  an
Election,  Employee  shall not be entitled to use any Company owned or supported
laptop  computers  or cell  phones  except to the extent  required  by  specific
projects assigned to Employee.

     4. TERM. Before an Election, Employee's employment shall have an indefinite
term and shall continue until terminated as provided in this Agreement.  Upon an
Election,  the  term of  Employee's  employment  by the  Company  shall  convert
automatically  to a two-year term beginning on the date of such Election.  After
the  Election,  any  extension or renewal of such term shall require the written
consent of both parties.

     5. COMPENSATION.

          (a) SALARY.  (i) Before an Election,  the Company shall pay Employee a
minimum base annual salary,  before  deducting all applicable  withholdings,  of
$330,000  per  year,  payable  at the times and in the  manner  dictated  by the
Company's  standard  payroll  policies.  The minimum base annual salary shall be
reviewed annually,  at the end of the Company's fiscal year, by the Compensation
Committee of the Board and may be increased,  but shall not be  decreased;  (ii)
during the first 12-month period immediately  following an Election,  Employee's
base  annual  salary  shall  remain at the same  level as it was at the time the
Election  was  made;  (iii)  during  the  second 12  months  after an  Election,
Employee's base annual salary shall be $330,000  regardless of the level of base
annual salary being paid to Employee prior to the Election.

          (b)  BONUSES.  (i) Before an Election,  Employee  shall be eligible to
participate  in an  incentive  bonus  program as developed  and adopted,  and as
revised from time to time,  by the Board.  Such program  shall be based upon the
achievement of individual  goals by Employee and upon Company  performance.  The
program shall  provide for a target bonus of 50% of  Employee's  base salary for
achievement  of a  Board-approved  plan.  (ii)  Additionally,  Employee shall be
entitled  to  receive  a  special  bonus  upon the first to occur of a Change in
Control or a Sale of the ***.  Either such special  bonus shall be calculated as
provided  in Exhibit  B.  (iii)  Employee  shall not be  entitled  to accrue any
additional bonus amounts after an Election occurs,  but any bonuses fully earned
prior to the Election shall remain due in accordance  with their terms,  and any
bonuses  accruing  prior to an Election  pursuant to an incentive  bonus program
shall be paid on a pro rata  basis  depending  on the  percentage  of the  bonus
measurement period that has elapsed at the time of the Election.

          (c) STOCK  OPTIONS.  From time to time,  as determined by the Board in
its discretion,  the Company shall grant to Employee  options to purchase shares
of the Company's  common stock,  with an exercise price equal to the fair market
value of the stock on the effective date of the grant.

     6. FRINGE  BENEFITS.  Both before and after an Election,  Employee shall be
entitled  to  participate  in all  employee  benefit  plans  (including  without
limitation  pension,  savings,  medical,  dental and disability plans) generally

                                      -2-

**Text has been omitted pursuant to a confidentiality  request. Omitted text has
been filed with the Securities & Exchange Commission.
<PAGE>
available to  employees.  The manner of  implementation  of such  benefits  with
respect to such items as  procedures  and  amounts  are  discretionary  with the
Company  but shall be  commensurate  with  Employee's  executive  capacity.  The
Company  agrees to maintain  term life  insurance  during the term of Employee's
employment  under this Agreement in an amount equal to two times Employee's base
salary,  as it may be adjusted  from time to time,  with the  beneficiary  to be
designated by Employee.  Until an Election occurs, the Company will also provide
Employee with an automobile expense allowance of $450 per month.

     7. EXPENSES.  In addition to the compensation and benefits  provided above,
the Company shall, upon receipt of appropriate documentation, reimburse Employee
each month for his  reasonable  travel,  lodging,  entertainment,  promotion and
other ordinary and necessary business expenses consistent with Company policies.

     8. TERMINATION.

          (a) FOR CAUSE.  The Company may terminate  Employee's  employment  for
Cause upon written notice to Employee stating the facts constituting such Cause,
provided  that  Employee  shall have 30 days  following  such notice to cure any
conduct or act, if curable, alleged to provide grounds for termination for Cause
hereunder. In the event of termination for Cause, the Company shall be obligated
to pay  Employee  only the  minimum  base  salary  due him  through  the date of
termination.  The written notice shall state the Cause for termination.  "Cause"
shall  include  gross or willful  neglect of duty,  willful  failure to abide by
instructions or policies from or set by the Board of Directors, or conviction of
a felony or misdemeanor  punishable by at least one year in prison,  or pleading
guilty or NOLO CONTENDERE to same;  provided that the fact that the Company does
not request services from Employee with respect to any period or periods of time
after an Election shall not constitute Cause.

          (b) WITHOUT CAUSE. The Company may not terminate Employee's employment
at any time without Cause.

          (c) DISABILITY.  Prior to an Election, but not afterward,  if Employee
fails to perform his duties  hereunder on account of illness or other incapacity
for a period of 60 consecutive days, or for 90 days during any six-month period,
the Company shall have the right to terminate  this  Agreement  without  further
obligation  hereunder except as otherwise provided in disability plans generally
applicable to executive employees.

          (d) DEATH.  Prior to an Election,  if Employee  dies,  this  Agreement
shall  terminate  immediately,  and Employee's  legal  representatives  shall be
entitled  to receive the base  salary due  Employee  through the last day of the
calendar  month in which his  death  shall  have  occurred  and any other  death
benefits generally applicable to executive employees.  If Employee dies after an
Election, Employee's legal representatives shall be entitled to receive only the
proceeds of any  appropriate  life  insurance  policies  and the base salary due
Employee  through the end of the term at a time and in a manner  similar to when
it would have been paid to Employee if he had survived, except for any change in
withholding justified by the change in circumstances.

          (e)  RESIGNATION.  Employee may resign his employment by giving notice
to the Company, which shall also include his resignations as an officer and as a
director of the Company.  In the event of such a resignation,  the Company shall

                                      -3-

**Text has been omitted pursuant to a confidentiality  request. Omitted text has
been filed with the Securities & Exchange Commission.
<PAGE>
be obligated  to pay  Employee  only the minimum base salary due him through the
effective date of the  resignation  (any vested options will remain vested,  and
will expire as provided in the Company's Stock Option Plan and Employee's Letter
of Grant).

     9.  ELECTIONS BY THE COMPANY.  The Company may make an Election at any time
with or without Cause.

     10. ELECTIONS BY EMPLOYEE.

          (a) AFTER A CHANGE IN CONTROL OR SALE.  Employee  may make an Election
at any time  after the  closing  of either a Change in  Control or a Sale of the
***, with or without Good Reason.

          (b) BEFORE A CHANGE IN CONTROL OR SALE.  Employee shall be entitled to
make an Election  before the closing of a Change in Control or a Sale of the ***
only if "Good  Reason"  exists.  Good Reason shall exist if the Company has done
any of the following:

               (1)  failed  to  maintain  Employee's  base  salary  at the level
                    required by Section 5(a);

               (2)  failed  to  provide  for  Employee's  participation  in  the
                    Company's or an Affiliate's  annual bonus plan; stock option
                    plan or other equity incentive  programs;  or group medical,
                    dental,  life,  disability,   retirement,   profit  sharing,
                    thrift,  nonqualified  and deferred  compensation  plans, in
                    each case on a basis  comparable  to that  enjoyed  by other
                    executive employees of the Company or any of its Affiliates;

               (3)  failed to provide  vacation  and  perquisites  substantially
                    equivalent  to those  provided  by the Company or any of its
                    Affiliates to executive employees;

               (4)  changed Employee's duties and  responsibilities so that they
                    are  not at  least  commensurate  with  those  described  in
                    Section 3(b);

               (5)  changed  Employee's primary place of employment by more than
                    25 miles from  Employee's  current  office  location or more
                    than 10 additional miles from Employee's  primary residence;
                    or

               (6)  terminated  or  attempted to terminate  this  Agreement  for
                    Cause if it is  thereafter  determined  that  Cause  did not
                    exist under this Agreement with respect to such termination.

     11. LIMITATIONS ON TRANSITIONAL COMPENSATION AND BENEFITS.

          (a) GENERAL RULES.  The Code places  significant  tax  consequences on
Executive  and Company if the total  payments  made to Executive  due, or deemed
due,  to  a  Change  in  Control  exceed  prescribed  limits.  For  example,  if
Executive's  "Base Period Income" (as defined below) is $100,000 and Executive's
"Total Payments"  exceed 299% of such Base Period Income (the "Cap"),  Executive
will be subject to an excise  tax under  Section  4999 of the Code of 20% of all

                                      -4-

**Text has been omitted pursuant to a confidentiality  request. Omitted text has
been filed with the Securities & Exchange Commission.
<PAGE>
amounts paid to him in excess of $100,000. In other words, if Executive's Cap is
$299,999,  he will  not be  subject  to an  excise  tax if he  receives  exactly
$299,999. If Executive receives $300,000, he will be subject to an excise tax of
$40,000 (20% of $200,000).  If an excise tax is imposed on Executive as a result
of the application of Sections 280G and 4999 of the Code, for any reason, due to
this  Agreement  or  otherwise,  Company  shall  pay to  Executive  a  "gross-up
allowance"  equal  in  amount  to the sum of (i) the  excise  tax  liability  of
Executive on the Total  Payments,  and (ii) all the total  excise,  income,  and
payroll  tax  liability  of  Executive  on  the  "gross-up  allowance,"  further
increased by all additional  excise,  income, and payroll tax liability thereon,
which  increase  shall  be part  of the  "gross-up  allowance"  for  purpose  of
computing the "gross-up  allowance."  Company shall indemnify and hold Executive
harmless  from such  additional  tax  liability  for the income and  payroll tax
arising from the "gross-up allowance" and all excise tax arising with respect to
compensation  and other  payments  made to Executive  under this  Agreement  and
excise,  income, and payroll tax on the "gross-up  allowance," and all penalties
and interest  thereon.  The purpose and effect of the  gross-up  allowance is to
cause  Executive to have the same net  compensation  after income,  excise,  and
payroll taxes that Executive would have if there was no tax under Code ss. 4999.

          (b) SPECIAL  DEFINITIONS.  For purposes of this Section, the following
specialized terms will have the following meanings:

               (1) "BASE PERIOD INCOME." "Base Period Income" is an amount equal
to Executive's  "annualized  includable  compensation"  for the "base period" as
defined in Sections  280G(d)(1) and (2) of the Internal Revenue Code of 1986, as
amended  (the  "Code")  and  the  regulations  adopted  thereunder.   Generally,
Executive's  "annualized  includable  compensation" is the average of his annual
taxable  income  from  the  Company  for the  "base  period,"  which is the five
calendar years prior to the year in which the Change of Control occurs.

               (2) "CAP" OR "280G CAP." "Cap" or "280G Cap" shall mean an amount
equal to 2.99 times Executive's "Base Period Income." This is the maximum amount
which he may  receive  without  becoming  subject to the  excise tax  imposed by
Section  4999 of the Code or which  Company  may pay without  loss of  deduction
under Section 280G of the Code.

               (3) "TOTAL  PAYMENTS." The "Total Payments" include any "payments
in the nature of  compensation"  (as defined in Section 280G of the Code and the
regulations adopted  thereunder),  made pursuant to this Agreement or otherwise,
to or for  Executive's  benefit,  the receipt of which is  contingent  or deemed
contingent on a Change of Control and to which Section 280G of the Code applies.

          (c) INCLUSION OF SUCCESSOR SECTIONS.  For purposes of this Section 11,
any reference to any Section of the Code shall also be deemed a reference to any
Code  Section  resulting  from  the  modification,   amendment,  renumbering  or
replacement of such Code Section.

          (d) EFFECT OF REPEAL.  If the  provisions of Sections 280G and 4999 of
the Code are repealed without succession, this Section 11 shall be of no further
force or effect.

                                      -5-

**Text has been omitted pursuant to a confidentiality  request. Omitted text has
been filed with the Securities & Exchange Commission.
<PAGE>
     12.  CONFIDENTIAL  INFORMATION.  Employee  acknowledges  that  Employee may
receive,  or contribute to the  production  of,  Confidential  Information.  For
purposes of this  Agreement,  Employee  agrees that  "Confidential  Information"
shall mean any and all  information  or material  proprietary  to the Company or
designated as Confidential Information by the Company and not generally known by
non-Company  personnel,  which Employee  develops or of or to which Employee may
obtain  knowledge or access  through or as a result of  Employee's  relationship
with the Company (including  information  conceived,  originated,  discovered or
developed in whole or in part by Employee).  Confidential  Information  includes
the following  types of  information  and other  information of a similar nature
(whether  or  not  reduced  to  writing)  related  to  the  Company's  business:
discoveries,  inventions,  ideas, concepts,  research,  development,  processes,
procedures,  "know-how,"  formulae,  marketing or  manufacturing  techniques and
materials,  marketing and development plans,  business plans, customer names and
other information related to customers,  price lists, pricing policies,  methods
of  operation,  financial  information,   employee  compensation,  and  computer
programs and systems.  Confidential  Information  also includes any  information
described  above  which the Company  obtains  from  another  party and which the
Company treats as proprietary or designates as Confidential Information, whether
or not owned by or developed by the Company,  including Confidential Information
acquired by the Company from any of its Affiliates.  Employee  acknowledges that
the  Confidential  Information  derives  independent  economic value,  actual or
potential,   from  not  being   generally   known  to,  and  not  being  readily
ascertainable  by proper means by, other persons who can obtain  economic  value
from its  disclosure or use.  Information  publicly known without breach of this
Agreement that is generally  employed by the trade at or after the time Employee
first learns of such  information,  or generic  information  or knowledge  which
Employee  would  have  learned  in the  course  of  similar  employment  or work
elsewhere  in  the  trade,   shall  not  be  deemed  part  of  the  Confidential
Information. Employee further agrees:

          (a) To furnish  the  Company on  demand,  at any time  during or after
employment,  a complete list of the names and  addresses of all present,  former
and  potential  suppliers,  financing  sources,  clients,  customers  and  other
contacts  gained  while an  employee of the  Company in  Employee's  possession,
whether or not in the possession or within the knowledge of the Company.

          (b) That all notes, memoranda,  electronic storage,  documentation and
records in any way  incorporating  or reflecting  any  Confidential  Information
shall belong  exclusively to the Company,  and Employee  agrees to turn over all
copies of such  materials in  Employee's  control to the Company upon request or
upon termination of Employee's employment with the Company.

          (c) That while  employed by the Company and  thereafter  Employee will
hold in  confidence  and not directly or  indirectly  reveal,  report,  publish,
disclose  or  transfer  any of the  Confidential  Information  to any  person or
entity, or utilize any of the Confidential  Information for any purpose,  except
in the course of Employee's work for the Company.

          (d) That any idea in whole or in part conceived of or made by Employee
during the term of his employment,  consulting, or similar relationship with the
Company which relates directly or indirectly to the Company's current or planned
lines  of  business  and is  made  through  the  use of any of the  Confidential
Information of the Company or any of the Company's equipment,  facilities, trade

                                      -6-

**Text has been omitted pursuant to a confidentiality  request. Omitted text has
been filed with the Securities & Exchange Commission.
<PAGE>
secrets or time,  or which  results from any work  performed by Employee for the
Company,  shall belong  exclusively to the Company and shall be deemed a part of
the  Confidential  Information for purposes of this  Agreement.  Employee hereby
assigns  and  agrees  to  assign  to the  Company  all  rights  in  and to  such
Confidential  Information  whether for purposes of obtaining patent or copyright
protection or otherwise.  Employee shall acknowledge and deliver to the Company,
without charge to the Company (but at its expense) such written  instruments and
do such  other  acts,  including  giving  testimony  in  support  of  Employee's
authorship or inventorship,  as the case may be, necessary in the opinion of the
Company to obtain  patents or copyrights or to otherwise  protect or vest in the
Company the entire right and title in and to the Confidential Information.

     13. LOYALTY DURING EMPLOYMENT TERM. The provisions of this Section shall be
applicable only during Employee's term of employment hereunder.  Employee agrees
that prior to an Election,  Employee will devote substantially all of Employee's
business  time and effort to and give  undivided  loyalty to the  Company.  Both
before and after an Election,  Employee  will not engage in any way  whatsoever,
directly or indirectly,  in any business that is competitive with the Company or
its  affiliates,  nor  solicit,  or in any other  manner  work for or assist any
business which is competitive  with the Company or its affiliates,  except that,
after an Election, Employee may work for or assist a division or affiliate of an
entity which competes with the Company  through one or more  separately  managed
divisions or  affiliates  so long as Employee has no business  responsibilities,
relationship or  communication  with the competing  division or affiliate.  Both
before  and after an  Election,  Employee  will  undertake  no  planning  for or
organization  of any  business  activity  competitive  with the  Company  or its
affiliates, and Employee will not combine or conspire with any other employee of
the  Company  or any  other  person  for the  purpose  of  organizing  any  such
competitive  business  activity.  However,  Employee shall be entitled to make a
passive  investment in a publicly traded stock of a competitor of the Company so
long as he does not at any time own more than 5% of the total  outstanding stock
of such competitor.

     14.  NON-COMPETITION;   NON-SOLICITATION.   The  parties  acknowledge  that
Employee will acquire much knowledge and information  concerning the business of
the Company  and its  affiliates  as the result of  Employee's  employment.  The
parties further  acknowledge  that the scope of business in which the Company is
engaged as of the date of execution of this  Agreement  is  world-wide  and very
competitive  and one in which few companies can  successfully  compete.  Certain
activities by Employee after this Agreement is terminated  would severely injure
the Company.  Accordingly,  until one year after  Employee  resigns  pursuant to
Section 8(e) or Employee's employment is terminated for Cause as contemplated by
Section 8(a), Employee will not:

          (a)  Engage  in any  work  activity  for or in  conjunction  with  any
business or entity that is in  competition  with or is preparing to compete with
the Company;

          (b) Persuade or attempt to persuade any  potential  customer or client
to which the Company or any of its  Affiliates  has made a proposal or sale,  or
with which the Company or any of its Affiliates has been having discussions, not
to transact business with the Company or such Affiliate,  or instead to transact
business with another person or organization;

                                      -7-

**Text has been omitted pursuant to a confidentiality  request. Omitted text has
been filed with the Securities & Exchange Commission.
<PAGE>
          (c) Solicit the business of any customers, financing sources, clients,
suppliers,  or  business  patrons of the Company or any of its  predecessors  or
affiliates  which were customers,  financing  sources,  clients,  suppliers,  or
business patrons of the Company at any time during Employee's  employment by the
Company,  or  within  three  years  prior  to  the  commencement  of  Employee's
employment by the Company, provided,  however, that if Employee becomes employed
by or represents a business that exclusively  sells products that do not compete
with  products  then  marketed or intended to be marketed by the  Company,  such
contact shall be permissible; or

          (d)  Solicit,  endeavor  to entice away from the Company or any of its
Affiliates,  or otherwise  interfere with the relationship of the Company or any
of its Affiliates  with,  any person who is employed by or otherwise  engaged to
perform  services  for  the  Company  or  any  of its  Affiliates,  whether  for
Employee's account or for the account of any other person or organization.

     15.  INJUNCTIVE  RELIEF.  It is agreed that the  restrictions  contained in
Sections 12, 13 and 14 of this  Agreement are  reasonable,  but it is recognized
that  damages  in the event of the breach of any of those  restrictions  will be
difficult or impossible to ascertain;  and, therefore,  Employee agrees that, in
addition to and without limiting any other right or remedy the Company may have,
the Company shall have the right to an injunction  against  Employee issued by a
court of competent  jurisdiction  enjoining any such breach  without  showing or
proving  any actual  damage to the  Company.  This  Section  shall  survive  the
termination of Employee's employment.

     16. PART OF CONSIDERATION.  Employee also agrees, acknowledges,  covenants,
represents and warrants that he is fully and completely  aware that, and further
understands that, the restrictive  covenants contained in Sections 12, 13 and 14
of this  Agreement are an essential  part of the  consideration  for the Company
entering  into  this  Agreement  and that the  Company  is  entering  into  this
Agreement in full reliance on these acknowledgments,  covenants, representations
and warranties.

     17.  TIME AND  TERRITORY  REDUCTION.  If any of the  periods of time and/or
territories described in Sections 12, 13 and 14 of this Agreement are held to be
in any  respect  an  unreasonable  restriction,  it is agreed  that the court so
holding may reduce the territory to which the restriction pertains or the period
of time in which it operates or may reduce both such  territory and such period,
to the minimum extent necessary to render such provision enforceable.

     18.  SURVIVAL.  The  obligations  described  in  Sections 12 and 14 of this
Agreement  shall survive any termination of this Agreement or any termination of
the employment relationship created hereunder.

     19.  NONDELEGABILITY  OF EMPLOYEE'S RIGHTS AND COMPANY  ASSIGNMENT  RIGHTS.
Except as otherwise  provided in this  Agreement,  the  obligations,  rights and
benefits of Employee  hereunder are personal and may not be delegated,  assigned
or transferred in any manner  whatsoever,  nor are such  obligations,  rights or
benefits subject to involuntary alienation,  assignment or transfer. Upon mutual
agreement of the parties,  the Company  upon  reasonable  notice to Employee may

                                      -8-

**Text has been omitted pursuant to a confidentiality  request. Omitted text has
been filed with the Securities & Exchange Commission.
<PAGE>
transfer  Employee to an Affiliate of the Company,  which Affiliate shall assume
the  obligations of the Company under this  Agreement.  This Agreement  shall be
assigned automatically to any entity merging with or acquiring the Company.

     20.  GOVERNING LAW. This  Agreement  shall be governed by and construed and
enforced in accordance with the internal laws of the State of Arizona, exclusive
of the  conflict  of law  provisions  thereof,  and the  parties  agree that any
litigation  pertaining to this Agreement  shall be in courts located in Maricopa
County, Arizona.

     21.  ATTORNEYS'  FEES.  If any party  finds it  necessary  to employ  legal
counsel or to bring an action at law or other proceeding against the other party
to enforce any of the terms hereof,  the party  prevailing in any such action or
other proceeding shall be paid by the other party its reasonable attorneys' fees
as well as court costs all as determined by the court and not a jury.

     22. NOTICES. All notices,  demands,  instructions,  or requests relating to
this Agreement  shall be in writing and,  except as otherwise  provided  herein,
shall be deemed to have been given for all purposes (i) upon personal  delivery,
(ii) one day after  being  sent,  when sent by  professional  overnight  courier
service from and to locations within the Continental  United States,  (iii) five
days after posting when sent by United States registered or certified mail, with
return receipt  requested and postage paid, or (iv) on the date of  transmission
when sent by facsimile with a hard-copy confirmation;  if directed to the person
or entity to which notice is to be given at his or its address set forth in this
Agreement  or at any other  address  such  person or entity  has  designated  by
notice.

          To the Company:           OrthoLogic Corp.
                                    1275 W. Washington St.
                                    Tempe, AZ 85281
                                    Attention:  Chairman of the Board

          To Employee:              Thomas R. Trotter
                                    1275 W. Washington St.
                                    Tempe, AZ 85281

     23.  ENTIRE  AGREEMENT.  This  Agreement  and the  Invention,  Confidential
Information and  Non-Competition  Agreement  executed in October 1997 constitute
the final  written  expression  of all of the  agreements  between  the  parties
(except those relating to Employee's service as a director of the Company),  and
are a complete  and  exclusive  statement  of those terms.  They  supersede  all
understandings  and negotiations  concerning the matters specified  herein.  Any
representations,  promises,  warranties or statements  made by either party that
differ in any way from the terms of these two written  Agreements shall be given
no force or effect. The parties specifically represent,  each to the other, that
there are no additional or supplemental  agreements  between them related in any
way to the matters herein contained unless specifically  included or referred to
herein.  No  addition  to or  modification  of any  provision  of either of such
Agreements  shall be binding upon any party unless made in writing and signed by
all parties. To the extent that there is any conflict between this Agreement and
the Invention,  Confidential  Information  and  Non-Competition  Agreement,  the
provisions of this Agreement shall govern.

                                      -9-

**Text has been omitted pursuant to a confidentiality  request. Omitted text has
been filed with the Securities & Exchange Commission.
<PAGE>
     24.  EXHIBITS.  All Exhibits to this Agreement are  incorporated  herein by
this  reference as though fully set forth herein.  In the event of any conflict,
contradiction  or ambiguity  between the terms and  conditions in this Agreement
and any of its Exhibits,  schedules or attachments,  the terms of this Agreement
shall prevail.

     25. CONSTRUCTION.  The language in all parts of this Agreement shall in all
cases be construed as a whole according to its fair meaning and not strictly for
or against either party.  The Section  headings  contained in this Agreement are
for reference purposes only and will not affect the meaning or interpretation of
this  Agreement  in any way.  All terms  used in one  number or gender  shall be
construed to include any other number or gender as the context may require.  The
parties  agree  that each  party has  reviewed  this  Agreement  and has had the
opportunity to have counsel review the same and that any rule of construction to
the effect that  ambiguities are to be resolved against the drafting party shall
not  apply in the  interpretation  of this  Agreement  or any  amendment  or any
exhibits thereto.  Whenever the words "include,"  "includes," or "including" are
used in the Agreement, they shall be deemed to be followed by the words "without
limitation.

     26.  WAIVER.  The waiver by either  party of the breach of any  covenant or
provision in this Agreement shall not operate or be construed as a waiver of any
subsequent breach by either party.

     27.  INVALIDITY OF ANY  PROVISION.  The  provisions  of this  Agreement are
severable,  it being  the  intention  of the  parties  hereto  that  should  any
provisions   hereof  be   invalid   or   unenforceable,   such   invalidity   or
unenforceability  of any  provision  shall not affect the  remaining  provisions
hereof, but the same shall remain in full force and effect as if such invalid or
unenforceable provisions were omitted.

     28.  COUNTERPARTS.  This  Agreement may be executed  simultaneously  in any
number of  counterparts,  each of which shall be deemed an  original  but all of
which together shall constitute one and the same agreement.

     29. BINDING  EFFECT;  BENEFITS.  This  Agreement  shall be binding upon and
shall  inure to the benefit of the parties  hereto and their  respective  heirs,
successors,  executors,  administrators  and assigns.  Notwithstanding  anything
contained  in  this  Agreement  to the  contrary,  nothing  in  this  Agreement,
expressed or implied, is intended to confer on any person other than the parties
hereto or their respective  heirs,  successors,  executors,  administrators  and
assigns any rights,  remedies,  obligations or liabilities under or by reason of
this Agreement.

                                      -10-

**Text has been omitted pursuant to a confidentiality  request. Omitted text has
been filed with the Securities & Exchange Commission.
<PAGE>
     This Agreement has been executed by the parties as of July 15, 2002.

                                        ORTHOLOGIC CORP.
                                        (the "Company")

                                        By:
                                            ------------------------------------
                                            John M. Holliman, III
                                            Chairman of the Board

                                        THOMAS R. TROTTER

                                        By:
                                            ------------------------------------
                                            "Employee"

                                      -11-

**Text has been omitted pursuant to a confidentiality  request. Omitted text has
been filed with the Securities & Exchange Commission.
<PAGE>
                                   EXHIBIT "A"

                                   DEFINITIONS

I.   DEFINITIONS

     Capitalized  terms used in this Exhibit A and not otherwise  defined herein
shall have the meanings  assigned to them in the Agreement to which this Exhibit
A is attached (the  "Agreement").  Additionally,  the following terms shall have
the meanings set forth below.

     "AFFILIATE," means an entity affiliated with the Company.

     "CHANGE IN CONTROL".  For purposes of this Agreement, a "Change in Control"
means any one or more of the following events (except for a Sale of the ***):

     (1) When the  individuals  who, at the beginning of any period of two years
or less,  constituted the Board cease, for any reason,  to constitute at least a
majority  thereof  unless the  election or  nomination  for election of each new
director was approved by the vote of at least two thirds of the  directors  then
still in office who were directors at the beginning of such period;

     (2) A change of control of the Company  through a transaction  or series of
transactions,  such  that any  person  (as that term is used in  Section  13 and
14(d)(2)  of the  Securities  Exchange  Act of  1934  ["1934  Act"]),  excluding
Affiliates of the Company as of the Effective Date, is or becomes the beneficial
owner  (as that  term is used in  Section  13[d] of the 1934  Act)  directly  or
indirectly,  of  securities  of the  Company  representing  20% or  more  of the
combined voting power of the Company's then outstanding securities;

     (3) Any merger,  consolidation  or  liquidation of the Company in which the
Company is not the  continuing  or surviving  company or pursuant to which stock
would be converted into cash, securities or other property,  other than a merger
of the  Company in which the holders of the shares of stock  immediately  before
the  merger  have  the  same  proportionate  ownership  of  common  stock of the
surviving company immediately after the merger;

     (4) The  shareholders  of the Company  approve any plan or proposal for the
liquidation or dissolution of the Company; or

     Substantially  all of the  assets  of the  Company  are  sold or  otherwise
transferred to parties that are not within a "controlled  group of corporations"
(as defined in Section  1563 of the Internal  Revenue  Code of 1986,  as amended
(the "Code") in which Parent is a member prior to such sale or transfer.

     (5) "CODE," means the Internal Revenue Code of 1986, as amended.

     (6) "SALE OF THE ***." ***.

**Text has been omitted pursuant to a confidentiality  request. Omitted text has
been filed with the Securities & Exchange Commission.
<PAGE>
                                    EXHIBIT B

                         CALCULATION OF SPECIAL BONUSES

I.   BONUS AFTER A CHANGE IN CONTROL

     Upon the  closing of a Change in Control  while he is still an  employee of
the  Company,  Employee  shall be entitled to receive,  as a lump sum, a special
bonus payment according to the following schedule:

     [**]

II.  BONUS AFTER A SALE OF THE ***

     Upon the  closing of a Sale of the *** while he is still an employee of the
Company,  Employee shall be entitled to receive,  as a lump sum, a special bonus
payment equal to [***].

**Text has been omitted pursuant to a confidentiality  request. Omitted text has
been filed with the Securities & Exchange Commission.

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