Document:

Exhibit 10.1

                      EMPLOYMENT AGREEMENT

     This EMPLOYMENT AGREEMENT (this "Agreement"), dated as of
June 17, 2002 ("Effective Date"), is between Competitive
Technologies, Inc., a Delaware corporation (the "Company") and
John B. Nano (the "Executive").  In consideration of the mutual
covenants contained in this Agreement, and other good and
valuable consideration, the receipt and sufficiency of which is
acknowledged, the parties agree as follows:

     1.   Employment.  The Company hereby employs the Executive,
and the Executive hereby accepts such employment with the
Company, upon all the terms and conditions set forth below.
Executive represents and warrants that:  (a) he has full power
and authority to enter into this Employment Agreement, (b) he is
not restricted in any manner whatsoever from performing the
duties described below, and (c) no agreement, covenant or other
matter prohibits or limits his ability or authority to enter into
this Agreement or perform all of the duties described below.
Executive's employment with the Company shall include service for
the Company's direct and indirect subsidiaries and affiliated
entities (the "Subsidiaries").

     2.   Employment Term.  The "Employment Term" and Executive's
employment under this Agreement shall commence on the Effective
Date and shall continue until the date on which the Agreement is
terminated in accordance with the provisions of Section 8 below.
The Company and the Executive acknowledge that the Executive's
employment is at will and can be terminated by either party at
any time and for any reason.  If the Executive's employment
terminates for any reason, with or without Cause, the Executive
shall not be entitled to any payments, benefits, damages, awards,
or compensation other than as provided in Section 8 below.  The
parties acknowledge that certain obligations under this Agreement
survive the end of Executive's employment.

     3.   Position and Duties.

     a.   President and Chief Executive Officer.  The Company
shall employ the Executive as its President and Chief Executive
Officer.  Executive shall report to the Company's Board of
Directors (the "Board") or the Board's designee.  In addition, as
of the Effective Date, Executive will be appointed to the Board.
Without any additional compensation, Executive will serve as a
member of the Board and as an officer and/or director of any
Subsidiaries.  Executive shall have such responsibilities and
duties as are commensurate with the position of chief executive
officer in an entity comparable to the Company, including,
without limitation, developing and implementing an overall
strategic plan for the Company and annual business plans, raising
new capital, and supervising day-to-day operations of the
Company. The Board shall have the right to modify Executive's
duties and responsibilities from time to time as the Board may
deem necessary or appropriate.

     b.   Manner of Employment.  Executive shall faithfully,
diligently and competently perform his responsibilities and
duties.  The Executive shall devote his exclusive and full
business efforts and time to the Company.  This Section 3(b),
however, shall not preclude the Executive, outside normal
business hours, from engaging in appropriate civic or charitable
activities, or from serving as a director of any not-for profit
entity, as long as such activities do not interfere or conflict
with his responsibilities to the Company.  With the Board's
consent, Executive may serve as a director of a for-profit
entity.

     4.   Base Compensation.  The Company shall pay the Executive
base compensation in the gross amount of $250,000 per year,
subject to reviews and increases in the sole discretion of the
Board  ("Base Compensation").  Base Compensation shall be paid
periodically in accordance with normal Company payroll practices.

     5.   Employment Benefits.  Executive shall be entitled to
the following benefits during the Employment Term:

     a.   Expense Allowance.  Executive shall be reimbursed for
business related expenses reasonably and necessarily incurred and
advanced by Executive in performing his duties for the Company,
subject to and in accordance with Company policy as it exists
from time to time.

     b.   Car Allowance.  The Company will provide Executive a
car allowance or lease for his use a car equal to a 5-Series BMW
or other vehicle reasonably acceptable to the parties.

     c.   Other Benefits.  Executive may participate in all other
employee benefit plans and programs as the Company may, from time
to time, offer to its executive employees, subject to the same
terms and conditions as such benefits are generally provided by
the Company.  All such benefits are subject to plan documents
(where applicable) and the Company's policies and procedures.
Nothing in this Section 5(c) guarantees that any specific benefit
will be provided or offered by the Company which has the right to
add, modify, or terminate benefits at any time.

     6.   Bonus.

     a.   For the period from the Effective Date through July 31,
2003 (the end of the 2003 fiscal year), and in each fiscal year
during the Employment Term thereafter, Executive shall be
eligible to receive a bonus of up to $100,000 based upon the
Company's performance and Executive's performance of objectives
during that time period as determined by the Board in its
reasonable discretion.  Such objectives will be established by
the Board after consultation with Executive within 60 days of the
Effective Date, and may relate to, without limitation, financial
performance, raising new capital, successful resolution of
certain outstanding matters that have been discussed with
Executive, development and implementation of a strategic plan,
and management of the Company.

     b.   With respect to fiscal years after 2003, in lieu of the
bonus described in Section 6(a), the Company may adopt an
executive bonus plan.  The terms of such bonus plan and the
payment of any bonuses to Executive shall be in the reasonable
discretion of the Board or its Compensation Committee.

     7.   Stock Options.  The Company shall grant to Executive
certain ten year options ("Plan Options") for the purchase of an
aggregate of 300,000 shares of the Company's common stock
("Common Stock") at the mean average of the high and low price
for such shares on the Effective Date.  The Plan Options shall
vest 25 percent on each of the first four anniversaries of the
Effective Date and in each 25 percent which may vest, the maximum
number of such options as permitted by law shall be Incentive
Stock Options ("ISOs") and the remainder shall be Non-statutory
Stock Options ("NSOs").  The grant and exercisability of the Plan
Options described in this Section 7 are granted pursuant to and
subject to:  (i) the terms and conditions contained in the
Company's 1997 Employee's Stock Option Plan as may be amended
from time to time in the Company's sole discretion ("Option
Plan"); and (ii) the terms and conditions of a definitive Stock
Option Agreement (the "Option Agreement") to be entered into as
of the Effective Date between the parties pursuant to the Option
Plan that will set forth all of the rights, duties and
obligations regarding such Options.

     8.   Termination and Severance Benefits.

     a.   Death.  The death of Executive shall automatically
terminate the Company's obligations under this Agreement;
provided however, that:  (i) the Company shall pay to Executive's
estate Executive's Base Compensation and accrued benefits through
the date of termination; and (ii) any unvested Plan Options
granted under this Agreement will upon such termination become
fully vested and immediately exercisable.

     b.   Disability.  If Executive is unable, in the reasonable
determination of the Board, to render services of substantially
the kind and nature, and to substantially the extent, required to
be rendered by Executive under this Agreement due to illness,
injury, physical or mental incapacity or other disability, for 90
days, whether consecutive or not, within any 12 month period,
Executive's employment may be terminated by the Company and:  (i)
the Company's sole obligation shall be to pay to Executive his
Base Compensation and accrued benefits through the date of
termination; and (ii) any unvested Plan Options granted under
this Agreement will upon such termination become fully vested and
immediately exercisable.

     c.   Resignation.  If Executive resigns his employment
during the Employment Term other than for Good Reason (as defined
below), the Company shall have no liability to Executive except
to pay Executive's Base Compensation and any accrued benefits
through his last day worked, and Executive shall not be entitled
to receive severance or other benefits.

     d.   Resignation for Good Reason.  If Executive resigns his
employment for Good Reason, he shall be entitled to receive all
accrued but unpaid salary and benefits through the date of
termination plus the Severance Benefit (as defined below).

     e.   Termination By Company for Cause.  If the Executive's
employment is terminated for Cause (as defined below), the
Company shall have no liability to Executive except to pay
Executive Base Compensation and any accrued benefits through his
last day worked and Executive shall not be entitled to receive
severance or other benefits.

     f.   Termination By Company Without Cause.  If the Company
terminates Executive's employment during the Employment Term
without Cause (and for reasons other than death or Disability),
Executive shall be entitled to receive all accrued but unpaid
salary and benefits through the date of termination plus the
Severance Benefit.

     g.   Termination Due to Change in Control.  If the Company
terminates Executive's employment without Cause (and for reasons
other than death or Disability) in conjunction with a Change in
Control (as defined below), Executive shall be entitled to
receive all accrued but unpaid salary and benefits through the
date of termination plus the Change in Control Benefit (as
defined below).

     h.   Cause.  The following acts by Executive, as determined
by the Board in its reasonable discretion, shall constitute
"Cause" for termination:

          i.   theft or embezzlement, or attempted theft or
     embezzlement, of money or material tangible or intangible
     assets or property of the Company or its employees or
     business relations;

          ii.  a violation of any law or any act or acts of moral
     turpitude which negatively affects the interests, property,
     business, operations or reputation of the Company;

          iii. other than as a result of a disability, a material
     failure to carry out effectively Executive's duties and
     obligations to the Company, or failure to devote to the
     Company's business the time required in Section 3(b) above,
     upon not less than ten (10) days' advance written notice of
     the asserted problem and a reasonable opportunity to cure;

          iv.  gross negligence or willful misconduct in the
     performance of Executive's duties;

          v.   Executive's material breach of this Agreement
     which, after written notice by the Company of such breach,
     is not cured within ten (10) days of such notice.

     i.   Resignation for Good Reason.  Resignation by Executive
of his employment for "Good Reason" shall mean a resignation by
Executive with sixty days after the following events which occur
without Executive's consent:

          i.   a material diminution in Executive's position,
     duties or responsibilities;

          ii.  a relocation of the Company's headquarters more
     than 50 miles from its present location;

          iii. a reduction in Executive's then Base Compensation;
     or

          iv.  the Company's material breach of this Agreement.

Prior to a Resignation for Good Reason, Executive shall give the
Company written notice of the basis for his claim that he has
Good Reason to terminate his employment and 10 days to cure.

     j.   Change in Control.  For purposes of this Agreement, a
"Change in Control" shall mean the occurrence of any of the
following events:

          i.   a merger or consolidation involving the Company or
     any subsidiary of the Company after the completion of which:
     (A) in the case of a merger (other than a triangular merger)
     or a consolidation involving the Company, the stockholders
     of the Company immediately prior to the completion of such
     merger or consolidation beneficially own (within the meaning
     of Rule 13d-3 promulgated under the Securities Exchange Act
     of 1934, as amended (the "Exchange Act"), or comparable
     successor rules), directly or indirectly, outstanding voting
     securities representing less than fifty percent (50%) of the
     combined voting power of the surviving entity in such merger
     or consolidation, and (B) in the case of a triangular merger
     involving the Company or a subsidiary of the Company, the
     stockholders of the Company immediately prior to the
     completion of such merger beneficially own (within the
     meaning of Rule 13d-3 promulgated under the Exchange Act, or
     comparable successor rules), directly or indirectly,
     outstanding voting securities representing less than fifty
     percent (50%) of the combined voting power of the surviving
     entity in such merger and less than fifty percent (50%) of
     the combined voting power of the parent of the surviving
     entity in such merger;

          ii.  an acquisition by any person, entity or "group"
     (within the meaning of Section 13(d) or 14(d) of the
     Exchange Act or any comparable successor provisions), other
     than any employee benefit plan, or related trust, sponsored
     or maintained by the Company or an affiliate of the Company
     and other than in a merger or consolidation of the type
     referred to in clause "(i)" of this Section 7(b), of
     beneficial ownership (within the meaning of Rule 13d-3
     promulgated under the Exchange Act, or comparable successor
     rules) of outstanding voting securities of the Company
     representing more than fifty percent (50%) of the combined
     voting power of the Company (in a single transaction or
     series of related transactions); or

          iii. in the event that the individuals who, as of the
     Effective Date, are members of the Board (the "Incumbent
     Board"), cease for any reason to constitute at least fifty
     percent (50%) of the Board.  (However, if the subsequent
     election, or nomination by the Board for election by the
     Company's stockholders, of any new member of the Board is
     approved by a vote of at least fifty percent (50%) of the
     Incumbent Board, such new member of the Board shall be
     considered as a member of the Incumbent Board.)

     k.   Severance Benefit.  The "Severance Benefit" shall mean:
(i) continuation of Executive's Base Compensation in effect
immediately prior to such termination or resignation for a period
of six months ("Severance Benefit Period"); (ii) continuation of
Executive's group insurance benefits (to the extent such can be
continued under the terms of the governing plans) for the
Severance Benefit Period; and (iii) continued vesting of the Plan
Options through the end of the Severance Benefit Period or the
next employment anniversary date, whichever is longer.

     l.   Change in Control Benefit. The "Change in Control
Benefit" shall mean:  (i) continuation of Executive's Base
Compensation in effect immediately prior to such termination or
resignation for a period of twelve months ("Change in Control
Benefit Period"); (ii) continuation of Executive's group
insurance benefits (to the extent such can be continued under the
terms of the governing plans) for the Change in Control Benefit
Period; and (iii) any unvested Plan Options granted under this
Agreement will become fully vested and immediately exercisable.

     m.   Resignations.  Upon the end of Executive's employment
for any reason, Executive shall be deemed to have resigned from
any positions which he holds as a director or officer of the
Company and any of its Subsidiaries or affiliates.

     n.   Release. Payment of the Severance Benefit or the Change
in Control Benefit will be subject to Executive signing an
agreement reconfirming his post-employment obligations contained
in this Agreement and releasing the Company and all Subsidiaries
and related parties from any claims, such agreement to be
prepared by the Company or its designee.

     9.   Key Executive Insurance.  The Company, at its
discretion, may apply for and procure in its own name for its own
benefit life and/or disability insurance on Executive in any
amount specified by the Company.  Executive agrees to cooperate
in any medical or other examination, supply information and
execute such applications as may be reasonably necessary to
obtain and continue such insurance at the Company's expense.
Executive represents that he has no reason to believe his life is
not insurable at prevailing rates for men of his age.

     10.  Confidential and Proprietary Information.

     a.   Executive agrees that he will not use or disclose to
any person, entity, association, firm or corporation, any of the
Company's Confidential Information, except with the written
authorization of the Board or as necessary to perform his duties
under this Agreement.  The term "Confidential Information" means
information and data not generally known outside of the Company
(unless as a result of Executive's breach of any of the
obligations imposed by this Agreement or the duties imposed by
any then existing statute, regulation, ordinance or common law)
concerning the Company's business and technical information, and
includes, without limitation, information relating to:  (i) the
identities of clients and the Company's other Business Relations
(as defined below) and their purchasing habits, needs, business
information, contact personnel and other information; (ii)
suppliers' and vendors' costs, products, contact personnel and
other information; and (iii) the Company's trade secrets,
products, research and development, financial and marketing
information, personnel and compensation information, and business
plans.  Executive understands that this Section 10 applies to
computerized as well as written information and to other
information, whether or not in written form.  It is expressly
understood, however, that the obligations of this Section 10
shall only apply for as long as and to the extent that the
Confidential Information has not become generally known to or
available for use by the public other than by Executive's act or
omission in violation of this Agreement.

     b.   Executive agrees that upon the end of his employment
with the Company for any reason, he will not take with him any
Confidential Information that is in written, computerized,
machine readable, model, sample, or other form of capable of
physical delivery, without the prior written consent of the
Board.  The Executive also agrees that upon the end of his
employment with the Company for any reason or at any other time
that the Company may request, he will deliver promptly and return
to the Company all such documents and materials in his possession
or control, along with all other property and documents of the
Company or relating to the Company's employees, suppliers,
customers, and business.

     11.  Non-Solicitation.  Executive agrees that he will not
through the date one year after the end of his employment with
the Company for any reason, directly or indirectly, on his own
behalf or on behalf of any other person or entity, without the
express written permission of the Board:  (a) solicit or attempt
to solicit any employee or representative of the Company to
terminate or modify his or her relationship with the Company or
to work for or provides services to another person or entity; or
(b) solicit or attempt to solicit, any client, vendor, service
provider or other business relation of the Company (each a
"Business Relation"), about whom he learned or with whom he came
into contact during his employment with the Company on behalf of
any entity or with respect to any service or products which is or
may be competitive with the Company or its services or products.

     12.  Non-Competition.

     a.   Executive agrees that during the Restrictive Period (as
defined below), he will not, without the express written consent
of the Board, be associated with or engage in, directly or
indirectly, as employee, consultant, proprietor, stockholder,
partner, agent, representative, officer, or otherwise, the
operation of any business that directly competes with the Company
in business activities that are the same or substantially similar
to the business activities engaged in by the Company within the
United States or any other geographic area in which the Company
does business during the Restrictive Period (the "Restricted
Territory").

     b.   The term "Restrictive Period" shall mean the Employment
Term plus a period of twelve months after the end of the
Employment Term; provided that the twelve month period following
the end of the Employment Term shall not apply if:  (i)
Executive's employment is terminated by the Company for reasons
other than death, Disability or Cause, or (ii) Employee resigns
his employment for Good Reason.

     c.   Passive investment in less than two percent of the
outstanding equity securities of an entity which is listed on a
national or regional securities exchange shall not, in itself,
constitute a violation of this Section 12.

     13.  Intellectual Property Rights.  Executive will, during
the period of his employment, disclose to the Company promptly
and fully all Intellectual Property made or conceived by
Executive (either solely or jointly with others) including but
not limited to Intellectual Property which relate to the business
of the Company or the Company's actual or anticipated research or
development, or result from work performed by him for the
Company.  All Intellectual Property and all records related to
Intellectual Property, whether or not patentable, shall be and
remain the sole and exclusive property of the Company.
"Intellectual Property" means all copyrights, trademarks, trade
names, trade secrets, proprietary information, inventions,
designs, developments, and ideas, and all know-how related
thereto.  Executive hereby assigns and agrees to assign to the
Company all his rights to Intellectual Property and any patents,
trademarks, or copyrights which may be issued with respect to
Intellectual Property.  Executive further acknowledges that all
work shall be work made for hire.  During and after the
Employment Term, Executive agrees to assist the Company, without
charge to the Company but at its request and expense, to obtain
and retain rights in Intellectual Property, and will execute all
appropriate related documents at the request of the Company.

     Executive understands that this Paragraph 13 shall not apply
to any Intellectual Property for which no equipment, supplies,
facilities, trade secret, or other confidential information of
the Company was used and which was developed entirely on his own
time, and does not relate to the business of the Company, its
actual or anticipated research, and does not result from any work
performed by him for the Company.

     14.  Successors and Assignees.  This Agreement may be
assigned by the Company to any successor or assignee of a
substantial portion of the business of the Company (whether by
transfer of assets or stock, merger or other business
combination).  Executive may not assign his rights or obligations
under this Agreement.

     15.  Binding Effect.  This Agreement shall inure to the
benefit of and be binding upon the parties and their respective
heirs, successors, legal representatives and permitted assigns.

     16.  Notices.  Any notice required or permitted to be given
under this Agreement shall be sufficient if in writing and either
delivered in person by reputable messenger or overnight delivery
service, by telecopy (with confirmation of receipt) or sent by
certified mail, postage prepaid, if to the Company at the
Company's principal place of business, c/o Chairman of the Board,
and if to the Executive, at his home address most recently filed
with the Company, or to such other address as either party shall
have designated in writing to the other party.

     17.  Law Governing.  This Agreement shall be governed by and
construed in accordance with the laws of the State of Connecticut
for contracts to be performed in that State.

     18.  Severability and Construction.  If any provision of
this Agreement is declared void or unenforceable or against
public policy, such provision shall be deemed severable and
severed from this Agreement and the balance of this Agreement
shall remain in full force and effect.  If a court of competent
jurisdiction determines that any restriction in this Agreement is
overbroad or unreasonable under the circumstances, such
restriction shall be modified or revised by such court to include
the maximum reasonable restriction allowed by law.

     19.  Reasonable Restrictions/Remedies.  Execution
acknowledges that the provisions contained in Sections 10 through
13 of this Agreement are reasonable in scope, area and duration
and are necessary for the Company to protect its legitimate
business interests, including its confidential information and
business relationships.  Executive and Company acknowledge and
agree that damages would not adequately compensate Company if
Executive were to breach any of his covenants contained in
Sections 10 through 13 above.  Consequently, Executive agrees
that in the event of any such breach, Company shall be entitled
to enforce this Agreement by means of an injunction or other
equitable relief, in addition to any other remedies including
without limitation monetary damages, set off against any amounts
due Executive by Company and termination of Executive's
employment for Cause.

     20.  Waiver.  Failure to insist upon strict compliance with
any of the terms, covenants or conditions hereof shall not be
deemed a waiver of such term, covenant or condition.

     21.  Entire Agreement; Modifications.  This Agreement
constitutes the entire agreement of the parties with respect to
its subject matter and supersedes all prior agreements, oral and
written, between the parties with respect to the subject matter
of this Agreement.  This Agreement may be modified or amended
only by an instrument in writing signed by both parties.

     22.  Employment and Income Taxes.  All payments made to
Executive by the Company will be subject to withholding of
employment taxes and other lawful deductions, as applicable.

                              COMPETITIVE TECHNOLOGIES, INC.

S/ John B. Nano                    By:  S/ Richard E. Carver
John B. Nano                       Title:  Chairman<PAGE>
                                                                    EXHIBIT 10.7

               AMENDED AND RESTATED EXECUTIVE EMPLOYMENT AGREEMENT

THIS AGREEMENT is dated March 14, 2002, between:

        BIOJECT MEDICAL TECHNOLOGIES INC. ("BMT"), a Corporation incorporated
        under the laws of the State of Oregon having its principal offices at
        7620 SW Bridgeport Rd., Portland, Oregon 97224

        BIOJECT INC., a Corporation incorporated under the laws of the State of
        Oregon having its principal offices at 7620 S.W. Bridgeport Road,
        Portland, Oregon, 97224 (collectively referred to as the "Company")

AND:

        John Gandolfo
        62 Terrace Road
        Wayne, NJ 07470
        (the "Executive")

RECITALS:

1.      The Company desires to secure the services and expertise of the
        Executive and to ensure the availability of the Executive to the
        Company; and

2.      The Executive desires to serve in the employ of the Company on a
        full-time basis for the period and upon the terms and conditions
        provided for in this agreement.

3.      The Executive and the Company are parties to that certain Executive
        Employment Agreement dated October 3, 2001 relating to Executive's
        employment with the Company (the "Original Agreement"). The Executive
        and the Company desire to make certain changes to and completely restate
        the Original Agreement.

NOW THEREFORE, in consideration of the premises and mutual covenants contained
herein, the parties noted above agree amend, restate and supersede the Original
Agreement as follows:

SECTION 1

1.1     EMPLOYMENT

        The Company appoints the Executive to and retains the Executive for the
        position of Chief Financial Officer and Vice President of Finance for
        the Company, and the

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        Executive accepts such appointment. This appointment becomes effective
        on October 15, 2001.

1.2     APPROVAL BY THE BOARD

        The Company represents, if required by its Bylaws, that the appointment
        of the Executive to the position referred to in Section 1.1 will be
        approved by the Board of Directors of the Company (the "Board") and that
        all corporate action required to effect the appointment will be taken.

1.3     DEFINITIONS

        As used in this agreement:

        a.     "Confidential Information" means any of the company's customers,
               employees, products, processes, services, financial information,
               marketing techniques, merchandising, business strategies, or
               plans, research, development, systems, inventions or any other
               trade secret or information pertaining to any of the preceding
               terms.

        b.     "Conflicting Product" means any product, process or service of
               any person or organization other than the Company, in existence
               or under development, which resembles or competes with the
               current or projected products, processes or services of the
               Company.

        c.     "Conflicting Organization" means any person or organization
               engaged or about to become engaged in research, development,
               production, marketing or selling of a Conflicting Product.

        d.     "Inventions" means discoveries, concepts, and ideas, whether
               patentable or not, including but not limited to, procedures,
               processes, methods, formulas, and techniques, as well as
               improvements thereof or know-how related thereto, concerning any
               present or prospective activities of the Company with which the
               Employee becomes acquainted as a result of his employment by the
               Company.

SECTION 2 - DUTIES/RESPONSIBILITIES

2.1     DUTIES/RESPONSIBILITIES

        During the employment term and any renewals thereof, the Executive will
        devote such time, attention, skill and efforts as may be necessary to
        assure the full performance of his duties and responsibilities, to the
        best of his abilities, with such

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        authority as is customarily associated with the position of Chief
        Financial Officer and Vice President of Finance. The Executive hereby
        accepts and agrees to such engagement of services, and will devote
        himself solely to the operation of the Company's business. The Executive
        may continue his existing involvement in an advisory or board capacity
        with non- competing organizations.

2.2     REPORTING

        In conducting his duties under this Agreement, the Executive shall
        report to the Chief Executive Officer and Chairman of the Board of
        Directors of the Company.

2.3     LOCATION OF EMPLOYMENT

        The Executive shall conduct his duties under this Agreement primarily at
        the offices of the Company in New Jersey, or such other geographical
        locations as shall be reasonably required in order to assure the
        efficient and proper operation of the Company. In the event that the
        primary location of the Executive's conducting his duties is moved
        outside the state of New Jersey, the Executive will be offered a choice
        to either relocate to the new location, or to accept a severance package
        as described in Section 4.2 (b) (ii).

SECTION 3 - COMPENSATION

3.1     SALARY

        For the Executive's services to the Company, the Executive shall be
        entitled to receive a minimum annual gross salary of $305,000. Not less
        than once during each year of employment, the Chief Executive Officer
        shall review the Executive's performance, duties and compensation for
        the purpose of promotion and/or increasing the compensation payable to
        the Executive. Executive's salary shall be paid in bi-weekly
        installments during the calendar year for the term of this Agreement.
        The Company shall deduct or withhold from such payments to the Executive
        the sums as are required under applicable laws for worker's
        compensation, income taxes and other benefits in accordance with Company
        policy.

3.2     BONUS PROGRAM

        The Executive will receive a signing bonus of $100,000.00, which is
        payable within 10 days of the date the Executive begins his employment
        with the Company.

        Exclusive of the signing bonus described above, the Executive shall not
        be eligible to earn a cash bonus until the fiscal year following the
        year the Company has

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        achieved profitability. In the interim, the Executive is eligible to
        earn bonuses in the form of stock options for fiscal years in which the
        Company achieves its business performance objectives, including
        operational, financial and budget projections. Specific bonus
        requirements and objectives will be determined by the Chief Executive
        Officer, and are subject to approval by the Board.

3.3     REIMBURSEMENT OF EXPENSES

        The Company shall reimburse the Executive for all reasonable
        out-of-pocket expenses, including, without limitation, all travel and
        entertainment expenses payable or incurred by the Executive in
        connection with his duties as an employee of Bioject under this
        Agreement. It is the policy of the Company for employees to travel as
        inexpensively as possible, utilizing economy airfare and standard rental
        cars. All payments or reimbursements shall be made promptly upon
        submission by the Executive of vouchers, bills or receipt for all
        expenses.

3.4     DISABILITY

        Should Executive become disabled and unable to perform substantially all
        of his duties under this agreement, as documented by an independent
        physician selected jointly by the Executive and the Company, the Company
        will continue paying the Executive any bonus earned and previously
        awarded, together with his then- current salary at seventy-five percent
        (75%) of current salary for a period of not greater than six (6) months
        from the disability date. Should the disability continue, payments by
        the company will then be reduced to fifty percent (50%) of current
        salary for any remaining period of disability not to exceed an
        additional six (6) months. Health and dental insurance and other benefit
        coverage will continue for the duration of these payments, for a maximum
        time period not to exceed twelve (12) months. Should payments to
        Executive under worker's compensation and/or disability insurance
        programs, when combined with Company payments, exceed seventy-five
        percent (75%) of employee's current salary, the Company will reduce its
        payment by the excess amount.

SECTION 4 - TERMS OF EMPLOYMENT

4.1     DURATION

        The term of this Agreement shall commence on October 15, 2001. It shall
        continue for an initial term of two, consecutive one-year periods,
        subject to the early termination provisions of this Section 4. Upon
        expiration of the initial term, this Agreement will be automatically
        renewed for successive one-year terms unless either the Executive or the
        Company shall, upon three months written notice to the other, elect not
        to renew this Agreement for any year. Non-renewal

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        of the Agreement by the Company shall be deemed a termination pursuant
        to Section 4.2 (a) (ii), and shall be subject to the severance
        compensation provisions related to termination under that Section.

4.2     TERMINATION BY THE COMPANY

        (a)    The Company may terminate this Agreement:

               (i)    Immediately if it is determined by the Board of Directors
                      that the Executive's actions: (1) constitute a material
                      breach of his duties hereunder, followed by Executive's
                      failure to cure such breach within a reasonable period of
                      time after receiving written notice thereof, or (2)
                      constitute a criminal act reflecting adversely on the
                      business or reputation of the Company or (3) have resulted
                      in the Executive, in his personal capacity, being indicted
                      or sanctioned or his entering into a consent decree, in
                      connection with any investigation of, allegation of
                      wrongdoing by, or other formal proceeding against the
                      Executive, by the United States Food and Drug
                      Administration or the United States Securities and
                      Exchange Commission, whether related to the business of
                      the Company or to any other past employment or activity of
                      the Executive; or,

               (ii)   With or without other cause at any time by giving sixty
                      (60) days prior written notice to the Executive; or

        (b)    Upon termination of this Agreement by the Company:

               (i)    Pursuant to Sections 4.2(a)(i):

                      A.     The salary and company sponsored benefits payable
                             to the Executive pursuant to Section 3.1 shall be
                             paid in regular bi- weekly installments for sixty
                             (60) days following the date of termination;

                      B.     All other forms of compensation payable to the
                             Executive pursuant to Section 3 shall terminate on
                             the date of termination, except that as
                             expeditiously as possible following the
                             termination, the Company shall pay or reimburse the
                             Executive for all expenses incurred prior to the
                             termination pursuant to Section 3.3, together with
                             any bonuses earned by and previously awarded to the
                             Executive pursuant to Section 3.2 prior to the date
                             of termination.

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               (ii)   Pursuant to Section 4.2(a)(ii), Section 2.3, Section 4.1
                      and Section 4.5:

                      A.     The salary and company sponsored benefits payable
                             to the Executive pursuant to Section 3.1 shall be
                             paid for the period commencing on the date of the
                             termination, and continuing for:

                                    Twelve (12) months following the date of
                                    termination.

                      B.     All other forms of compensation payable to the
                             Executive pursuant to Section 3 shall terminate,
                             except that as expeditiously as possible after the
                             termination the Company shall pay or reimburse the
                             Executive for all expenses incurred prior to the
                             termination pursuant to Section 3.3, together with
                             any bonuses earned by and previously awarded to the
                             Executive pursuant to Section 3.2, prior to the
                             date of termination.

4.3     TERMINATION BY EXECUTIVE

        The Executive may terminate this Agreement by giving sixty (60) days
        prior written notice to the Company. Upon termination of this Agreement
        by the Executive pursuant to this Section:

        (a)    The salary payable to the Executive pursuant to Section 3.1 shall
               be prorated to the date of the termination;

        (b)    Except for the severance package made available to the Executive
               pursuant to Section 2.3 and Section 4.2 (b) (ii), all other forms
               of compensation payable to the Executive pursuant to Section 3
               shall terminate on the date of the termination. As expeditiously
               as possible after termination of the Executive's employment, the
               Company shall pay or reimburse the Executive for all expenses
               incurred prior to the termination pursuant to Section 3.3.

        (c)    Executive shall utilize his best efforts to continue to perform
               all duties assigned by the Company in the manner stated in
               paragraph 2.1 hereof, prior to the date of termination.

4.4     TERMINATION UPON DEATH

        This Agreement shall terminate immediately upon the Executive's death.
        In the event of the Executive's death:

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        (a)    The Company shall pay to the Executive's estate the salary
               otherwise payable to the Executive pursuant to Section 3.1
               through the last day of the calendar month in which the
               Executive's death occurs and for a period of sixty (60) days
               thereafter.

        (b)    As expeditiously as possible after the Executive's death the
               Company shall pay or reimburse the Executive's estate for all
               expenses incurred pursuant to Sections 3.3 prior to such death,
               together with any bonuses earned by and awarded to the Executive
               pursuant to Section 3.2, prior to the date of such death.

4.5     CHANGE IN CONTROL

        If at any time during the term of this Agreement a Change in Control (as
        defined below) of the Company occurs, then, as to such Change in
        Control, the Company will utilize its best efforts to make appropriate
        provisions to preserve the rights and interests of the Executive
        pursuant to this Agreement. Failure of the Company to preserve such
        rights and interests of the Executive will, at the Executives option, be
        deemed a termination pursuant to Section 4.2 (a) (ii), and will be
        subject to the severance compensation provisions related to termination
        under that Section. For purposes of this Agreement, a "Change in
        Control" shall mean the occurrence of any of the following events:

        (a)    The approval by the shareholders of BMT of:

               (1)    any consolidation, merger or plan of share exchange
                      involving BMT (a "Merger") as a result of which the
                      holders of outstanding securities of BMT ordinarily having
                      the right to vote for the election of directors ("Voting
                      Securities") immediately prior to the Merger do not
                      continue to hold at least 50% of the combined voting power
                      of the outstanding Voting Securities of the surviving or
                      continuing corporation immediately after the Merger,
                      disregarding any Voting Securities issued or retained by
                      such holders in respect of securities of any other party
                      to the Merger;

               (2)    any sale, lease, exchange or other transfer (in one
                      transaction or a series of related transactions) of all,
                      or substantially all, the assets of BMT; or

               (3)    the adoption of any plan or proposal for the liquidation
                      or dissolution of BMT; or

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        (b)    Any "person" or "group" (within the meaning of Sections 13(d) and
               14(d)(2) of the Securities Exchange Act of 1934, as amended (the
               "Act")) shall, as a result of a tender or exchange offer, open
               market purchases or privately negotiated purchases from anyone
               other than BMT, have become the beneficial owner (within the
               meaning of Rule 13d-3 under the Act), directly or indirectly, of
               Voting Securities representing fifty percent (50%) or more of the
               combined voting power of the then outstanding Voting Securities.

4.6     ACTS UPON TERMINATION

        Upon termination of Executive's employment with the Company, all
        computers, equipment, documents, records, notebooks, and similar
        repositories of or containing Confidential Information, including copies
        thereof, then in the Executive's possession, whether prepared by himself
        or others will be delivered to the Company within thirty (30) days of
        such termination. The obligations of the Executive in Sections 6.1 and
        6.2 of this Agreement shall survive any termination of the Executive.

SECTION 5 - STOCK

5.1     GRANT OF STOCK OPTIONS

        As soon as possible following the execution of the Original Agreement,
        the Executive and the Company executed an Incentive Stock Option
        Agreement granting the Executive the following:

               150,000 options to purchase shares of BMT at a strike price equal
               to the fair market value of the Company's stock on the date of
               grant. These options vest as follows: 33.3% (50,000) on each of
               the Executive's first three annual anniversaries of employment
               with the Company, provided he remains employed by the Company
               during each year. All options granted will be subject to the same
               terms and conditions as provided in the Company's incentive stock
               program.

               The Executive will also receive an additional grant of 50,000
               options to purchase shares of BMT on the first anniversary of his
               employment by the Company; provided, however, that if prior to
               such first anniversary, a Change in Control occurs or the Company
               publicly announces that it has entered into an agreement or
               letter of intent for a transaction that will constitute a Change
               in Control if completed, the additional options shall be
               immediately granted with a strike price equal to the closing
               price of the Company's stock on the trading day preceding such
               Change in Control or announcement. These options vest as follows:
               33.3% on each of the

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               Executive's next three annual anniversaries of employment with
               the Company, provided he remains employed by the Company during
               each year. All options granted will be subject to the terms and
               conditions described in the Company's incentive stock program.

        The Stock Option Agreements related to such options will provide that,
        in the event of (A) a Change in Control, (B) termination of employment
        pursuant to Section 4.2 (a) (ii) (including deemed termination pursuant
        to such section pursuant to Section 4.1, or (C) the Executive's having
        opted to receive a severance package in lieu of relocating pursuant to
        Section 2.3, all stock options which have been awarded to the Executive,
        but are not yet vested, will vest immediately.

5.2     REGISTRATION

        It is understood that BMT is a reporting company within the requirements
        of the Securities and Exchange Commission ("SEC") and has elected to
        register the options granted hereunder with the SEC.

SECTION 6 - MISCELLANEOUS

6.1     DISCLOSURE OF INFORMATION AND EMPLOYEE RESTRICTIONS

        Executive agrees to the following:

        a.     Executive agrees that he shall not, during his employment, either
               as an individual or as part of an organization, throughout North
               America or Europe, compete with the Company or render services
               directly or indirectly, to any conflicting organization or
               himself establish or acquire any interest, directly or
               indirectly, in a conflicting organization, nor will he assist any
               other person or entity to do so;

        b.     Executive will not during his employment solicit or sell to any
               of the Company's present or future customers, a conflicting
               product or service nor will he assist any other person or entity
               to do so;

        c.     Except as required in his duties to the Company, the Executive
               will never, during or after his employment, directly or
               indirectly use, disseminate, disclose, lecture upon, or publish
               any Confidential Information without Company's written consent.

        In the event this Agreement is terminated, for whatever reason,
        Executive agrees that he shall not, for two years following the date of
        termination:

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        a.     Either as an individual or as part of an organization, throughout
               Canada or the United States, compete with the Company or render
               services directly or indirectly, to any conflicting organization
               or himself establish or acquire any interest, directly or
               indirectly, in a conflicting organization, nor will he assist any
               other person or entity to do so; and

        b.     He will not employ, without the consent of the Company, directly
               or indirectly, any past or present employees of the Company, nor
               will he assist any other person or entity to do so; and

6.2     ARBITRATION AND JURISDICTION

        As a matter of operating practice, Bioject expects to resolve
        disagreements or conflicts by mutual negotiation in good faith. Subject
        to the remedies stated in Section 6.1, any controversy or claim arising
        out of or relating to this Agreement or any breach of this Agreement
        shall be finally settled by arbitration in accordance with the
        provisions of the Commercial Arbitration Rules of the American
        Arbitration Association. Such arbitration shall be conducted in
        Portland, Oregon by one arbitrator, with one discovery allowed by each
        party to this agreement. This agreement is entered into and shall be
        interpreted and enforced according to the laws of the State of Oregon;
        both parties consent to personal jurisdiction for that purpose.

6.3     NOTICES

        Any notice or other communication required or permitted to be given
        under this Agreement shall be in writing, given by personal delivery or
        sent by first class mail, postage prepaid, addressed as follows:

        To the Executive:           John Gandolfo
                                    62 Terrace Road
                                    Wayne, NJ 07470

        To the Company:             Secretary to the Board of Directors
                                    Bioject Medical Technologies Inc.
                                    7620 S.W. Bridgeport Road
                                    Portland, Oregon 97224

        Either party, by notice as provided above, may change the address to
        which subsequent notice shall be given. Any notice given herein shall be
        deemed received seven (7) days after posting in a post office box;
        PROVIDED, HOWEVER, that if there should be a postal strike, slow-down or
        other labor dispute which may effect the delivery of such notice through
        the mail between the

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        time of mailing and the actual receipt of the notice, then such notice
        shall be effective only if actually delivered.

6.4     ASSIGNMENT

        This Agreement is a personal employment agreement addressing services,
        compensation and benefits. It may not be assigned by either party
        without the prior written consent of the other party; however, during
        his employment term, the Executive may by written assignment assign all
        or any portion of the compensation or benefits to which he is entitled
        under Section 3 to any member of his immediate family or to any
        corporation, partnership or other business entity controlled by the
        Executive. Except as required by law, no right to receive payments under
        this Agreement shall be subject to anticipation, commutation,
        alienation, sale, assignment, encumbrance, charge, pledge or
        hypothecation or to execution, attachment, levy or similar process or
        assignment by operation of law and any attempt, voluntary or
        involuntary, to affect any such action shall be null, void, and of no
        effect.

6.5     INDEMNITY

        The Executive, his heirs, executors, administrators, estate and effects,
        shall at all times be indemnified and held harmless by the Company from
        and against:

        a.     All costs, charges and expenses whatsoever sustained or incurred
               as a result of any action, suit or proceeding, whether civil,
               criminal, administrative, or investigative, that is brought,
               commenced or prosecuted for or in respect of any act, deed,
               matter or thing whatsoever made, done or permitted in or about
               the execution of the Executive's duties; and

        b.     All other costs, charges and expenses sustained or incurred in or
               about or in relation to the affairs of the Company;

        Except such costs, charges or expenses as are occasioned by the criminal
        act, willful neglect or default of duties by the Executive. At all such
        times that the Company obtains and maintains directors and officers
        errors and omissions insurance, Executive shall be a beneficiary of such
        policy(ies).

6.6     AMENDMENT AND SEVERABILITY

        This Agreement may not be amended or otherwise modified except by an
        instrument in writing signed by both parties. All agreements and
        covenants herein contained in this Agreement are deemed to be severable,
        and in the event any portion of this Agreement is declared to be
        invalid, this Agreement shall be interpreted as if such invalid portion
        or covenant were severed and not contained

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        herein, with all other terms of this Agreement remaining valid and
        binding on the parties hereto.

6.7     ENTIRE AGREEMENT

        This agreement specifies all of the terms and conditions of an
        employment agreement entered into between the parties on June 25, 2001,
        which terms and conditions have been negotiated prior to that date.

6.8     BINDING EFFECT

        This Agreement shall be binding upon and inure to the benefit of the
        parties hereto and their respective heirs, personal representatives,
        successors and assigns, except as otherwise expressly provided herein.

6.9     REVIEW OF LEGAL COUNSEL

        The Executive acknowledges that he has had adequate time and opportunity
        to consult with legal counsel of his own selection prior to entering
        into and executing this Agreement.

IN WITNESS WHEREOF the parties have executed this Agreement effective on the day
and year first written above.

-----------------------------------
           John Gandolfo

BIOJECT MEDICAL TECHNOLOGIES INC.

By:
   --------------------------------
Name:
     ------------------------------
Title:
      -----------------------------

BIOJECT INC.

By:
   --------------------------------
Name:
     ------------------------------
Title:
      -----------------------------

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