Document:

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                     SEVERANCE AGREEMENT AND GENERAL RELEASE

         This SEVERANCE  AGREEMENT AND GENERAL RELEASE (the "Agreement") is made
and entered  into on this 21st day of  January,  2000,  by and between  PARADIGM
MEDICAL INDUSTRIES, INC. ("PARADIGM") and MICHAEL W. STELZER ("STELZER").

                                    RECITALS:

         WHEREAS,  STELZER has been employed by, and has served as an officer of
PARADIGM; and

         WHEREAS, the parties mutually desire to end this relationship effective
January 21, 2000, and now desire to resolve all issues amicably on the terms set
forth below; and

         WHEREAS,  STELZER has served as a Director  of PARADIGM  and desires to
resign from its Board of Directors.

         NOW,  THEREFORE,  in  consideration  of the foregoing and of the mutual
covenants and obligations herein contained, the parties agree as follows:

1.     Stelzer  Resignation.  STELZER  shall  provide  PARADIGM with a letter of
       resignation in the form attached hereto as Exhibit "A".

2.     Severance  Benefits.  STELZER will receive  20,000  shares of  restricted
       common stock of PARADIGM (the "Shares") within seven business days of the
       date of this Agreement. PARADIGM shall register the Shares within 90 days
       after  such date.  If for any  reason  the Shares are not so  registered,
       STELZER at his option may  exchange the Shares for shares of common stock
       that have been registered in the January 6, 2000 Prospectus. STELZER will
       enter into a lock up agreement  with  PARADIGM in which he will agree not
       to sell the  Shares  for a period of 90 days  following  the date of this
       Agreement.  With respect to the PARADIGM stock options STELZER  presently
       holds,  he may exercise such options at any time between the date of this
       Agreement and 18 months  following  such date.  PARADIGM will continue to
       pay STELZER his base salary  through  April 21,  2000.  STELZER's  401(k)
       benefits that would have accrued as of the date of this Agreement will be
       deemed vested.  The Board of Directors of PARADIGM shall provide  STELZER
       with a letter of reference in the form attached hereto as Exhibit "B".

3.     Cooperation  in Transition.  STELZER will provide all  passwords,  codes,
       information, documents, tangible items or other materials arising from or
       relating to his employment with or affiliation  with PARADIGM and he will
       make himself  reasonably  available for consultation,  training and other
       services  needed  in  making  a  successful   transition  of  his  former
       responsibilities to his successor(s).

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                                        3

4.     Mutual  Release.  In  consideration  of the  benefits  provided  in  this
       Agreement,  the parties release, hold harmless and forever discharge each
       other,  any  and all  other  subsidiary  or  affiliate  companies,  their
       successors,  assigns,  transferees,  past or present officers, employees,
       directors, representatives, agents, partners, owners and shareholders, of
       and  from  any  and  all  actions,   claims,  causes  of  action,  suits,
       compensation,   wages,   benefits,   debts,   contracts,   controversies,
       agreements,  promises,  rights,  damages or demands which they have,  may
       have  or  ever  will  have,  whether  known  or  unknown,   suspected  or
       unsuspected,  ;including  but not  limited  to any claim  under  state or
       federal  statutory  or  common  law,  any  claim  arising  out  of  or in
       connection with STELZER's  employment or affiliation with PARADIGM or the
       termination  thereof,  and any  claim  based  on an  express  or  implied
       contract  including  but not limited to  STELZER's  Employment  Agreement
       dated September 14, 1998 and his Change of Control Termination  Agreement
       dated September 14, 1998.

       The  parties  expressly  waive  the  benefits  of any  rule  or law  that
       provides,  in sum or substance,  that a release does not extend to claims
       which the  party  does not know or  suspect  to exist in his favor at the
       time  of  executing  the  release,  which  if  known  by him  would  have
       materially  affected this  settlement  with the other party.  The parties
       understand  and  acknowledge  that all such claims are hereby  waived and
       released.

5.     Release  of  Age   Discrimination   Claims.   STELZER   acknowledges  and
       understands  that he is releasing  any and all claims or causes of action
       he  has  or  may  have  under  state  and  federal  law   concerning  age
       discrimination,  including but not limited to, the Age  Discrimination in
       Employment  Act of  1967,  29  U.S.C.  Section  621 et  seq.  He  further
       acknowledges that he has been advised that this release does not apply to
       any age-based  rights or claims arising after the date of this Agreement,
       that he should seek the advice of his own independent  attorney,  that he
       has been given 21 days in which to review and consider this Agreement and
       that he has been advised that he has an  additional 7 days after he signs
       this  Agreement  to change  his mind and  rescind  this  Section  (5) and
       release of age discrimination claims without any penalty to himself. This
       Section (5) of the  Agreement  will not become  effective or  enforceable
       until after this 7 day period has  expired.  The  parties  agree that one
       month  of the  salary  continuation  provided  in  Section  (2)  above is
       allocated to STELZER's  release of age-based claims. In the event STELZER
       exercises  his  right of  rescission  of this  Section  (5),  the  salary
       continuation  will end on March 21, 2000.  All other  provisions  of this
       Agreement will remain in full force and effect.

6.     Confidentiality,  Inventions and  Non-Compete  Agreement.  STELZER agrees
       that the Confidentiality, Inventions and Non-Compete provisions (Sections
       6-9) of his Employment  Agreement dated September 14, 1998 remain in full
       force  according to their terms and he agrees to abide by and comply with
       these provisions.

7.     Confidentiality and Non-Assistance in Claims. STELZER agrees that he will
       keep   strictly   confidential   all   information   pertaining   to  the
       negotiations,  conditions  and  terms  of this  Agreement  and  will  not
       directly or  indirectly  publicize or disclose them in writing or orally,
       and  whether by himself or any  agent,  representative  or other  person.
       Notwithstanding  the  foregoing,  he may discuss this  Agreement with his
       attorneys,  accountants  or members of his immediate  family  provided he
       obtains  their  agreement to keep its terms  confidential  and he remains
       responsible for any disclosure they may make.

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       STELZER also agrees that he will not encourage, recommend, participate in
       or  voluntarily  assist  in any  legal or  administrative  claim  against
       PARADIGM  or  its  employees,  directors,  officers,  representatives  or
       affiliated  companies and will not attempt to harm their  reputations  or
       speak or write about them in a disparaging  manner.  Notwithstanding  the
       foregoing,  STELZER may testify or disclose  information  if  subpoenaed,
       required by law or in the course of an official agency investigation.

       PARADIGM will not attempt to harm STELZER's  reputation or speak or write
       about him in a disparaging manner.

8.     No admission of Liability. By entering into this Agreement, PARADIGM does
       not in any way admit or acknowledge liability for any allegation or claim
       by STELZER and it  specifically  denies any such  liability.  The parties
       agree  that  nothing  contained  in this  Agreement  shall be  treated or
       construed  as a  admission  of  liability  or  wrongdoing  of any kind by
       PARADIGM, its predecessors,  successors,  affiliates,  agents,  officers,
       directors, representatives and employees.

9.     Ownership  of Claims  and No  Liens.  STELZER  represents  that he ha not
       transferred,  assigned or encumbered any claim or portion thereof against
       PARADIGM, its officers,  directors,  employees or agents. STELZER further
       represents  and warrants  that there are no liens  against the  severance
       benefits provided under this Agreement.

10.    Disputes.  In the event any dispute  arises  between the parties which in
       any way relates to this  Agreement,  and which dispute cannot be resolved
       amicably,  the parties  agree that such dispute shall be resolved in Salt
       Lake city, Utah through binding  arbitration in accordance with the rules
       and procedures of the American  Arbitration  Association.,  Further,  the
       substantially  prevailing party shall receive reasonable  attorney's fees
       and costs.

11.    Severability. In the event any part of this Agreement is determined to be
       void or  unenforceable,  the  parties  agree  that the  remainder  of the
       Agreement may be enforced to the fullest extent permitted by law.

12.    Complete Agreement. This Agreement sets forth the terms and conditions of
       an amicable  resolution  in full accord and  satisfaction  of all issues,
       claims or controversies between STELZER and PARADIGM. This Agreement sets
       forth the  complete  agreement  between the parties.  No other  promises,
       commitments  or  representations  have  been  made  or  relied  on by the
       parties, and no other consideration is due between the parties.

       In witness whereof, the parties  acknowledge,  by their signatures below,
that they have read and  understand  the terms of this  Agreement and are freely
and voluntarily entering into it.

       MICHAEL W. STELZER                            PARADIGM MEDICAL
                                                     INDUSTRIES, INC.

 /s/ Michael W. Stelzer                     By: /s/ Thomas F. Motter
--------------------------------                --------------------

Date signed: January 28, 1999               Its:       CFO
            ---------------------               ----------CONSULTING AGREEMENT

THIS  CONSULTING  AGREEMENT is entered into this 1st day of  December,1998,  San
Luis  Obispo,  California  (hereinafter  "Consultant"),   and  Paradigm  Medical
Industries, Inc., a Delaware corporation with its place of business at Salt Lake
City, Utah. (hereinafter "Company").

THE PARTIES AGREE AS FOLLOWS:

1.  Consultancy.  Consultant  shall serve as a  consultant  to the Company for a
period  commencing  and  concluding on the dates set forth in Schedule A hereto,
subject to  termination  in  accordance  with Section 7. The period during which
Consultant shall serve as a consultant to the Company pursuant to this Agreement
shall constitute the "Consulting Period".

         1. Duties. Consultant shall serve as a consultant to the Company in the
activities  of the Company set forth in Schedule A or as otherwise  requested by
an officer of the Company.  Consultant  shall  perform such  services  under the
general direction of the Company or its officers, but Consultant shall determine
the  manner  and  means by which  the  services  are  accomplished.  During  the
Consulting  Period,  Consultant  agrees to perform all duties to the best of his
ability.  In the performance of such duties,  Consultant  shall consult with the
Company at the Company's facilities or at such other places as the Company shall
reasonably request. Consultant shall remain available for telephone consultation
with the  officers,  employees,  or  consultants  of the  Company  or any of its
subsidiaries or affiliates.

2. Other Employment
    1. Other  Affiliation.  Consultant  represents that he is not a party to any
    existing agreement that would prevent him from entering into this Agreement,
    and that the only  agreements  with third  parties  which may  restrict  his
    consulting activities on behalf of the Company at the time of this Agreement
    are  Consultant's  obligations  pursuant  to the  agreements  set  forth  in
    Schedule A. Consultant agrees to use his best efforts to segregate work done
    under  this  Agreement  from all work  done at,  or for,  any such  company,
    corporation,  and/or other commercial enterprises.  In any dealings with any
    such company, corporation,  and/or other commercial enterprises,  Consultant
    shall protect and guard the Company's "Confidential Information" (as defined
    in Section 4.1 below) in accordance with the terms of this Agreement.

    2. Conflict of Interest.  Consultant warrants that he is not obligated under
    any other consulting,  employment, or other agreement which would affect the
    Company's  rights  or  Consultant's   duties  under  this  Agreement  unless
    specifically disclosed in Schedule A.

3. Compensation
    1. Consulting Fees. The Company agrees to pay Consultant and Consultant
    agrees to accept for Consultant's services under this Agreement consulting
    fees (the "Consulting Fees") as set forth in Schedule A

    2. Employment Taxes and Benefits. Consultant acknowledges and agrees that it
    shall be Consultant's  sole obligation to report as  self-employment  income
    all  compensation  received by Consultant from the Company for  Consultant's
    services as a  consultant.  Consultant  agrees to indemnify  the Company and
    hold it  harmless  to the  extent of any  obligations  imposed by law on the
    Company to pay any  withholding  taxes,  social  security,  unemployment  or
    disability insurance or similar items in connection with any payment made to
    Consultant by the Company for Consultant's services as a consultant.

    3. Legal  Relationship.  Consultant shall be an independent  contractor with
    respect to the Company and shall not be an employee or agent of the Company.
    Consultant shall be entitled to no benefits or compensation from the Company
    except as set forth in this  Agreement  and shall in no event be entitled to
    any fringe benefits payable to employees of the Company.

    4. Expenses. Consultant will be reimbursed only reasonable costs and
    expenses incurred in performing duties hereunder. Such reimbursement shall
    be made within thirty (30) days of submission of adequate and appropriate
    documentation of such costs and expenses.

    5. Alpha  Products.  Consultant  shall  receive  One (1)  pre-production  or
    production  model of each product  developed under this  Agreement,  free of
    charge from  Company,  for use in his clinical  practice,  teaching or other
    professional activities.  Each Alpha Product given to Consultant shall carry
    a full service and  warranty  contract at no cost to  Consultant  during the
    term of the Agreement and as further set forth in Schedule A.

4. Confidentiality
    1.  Confidential  Information.  Consultant's  work for the Company creates a
    relationship  of trust and  confidence  between the Company and  Consultant.
    During and after Consultant's work for the Company,  Consultant will not use
    or  disclose  or allow  anyone  else to use or  disclose  any  "Confidential
    Information"  (as defined  below)  relating to the  Company,  its  products,
    suppliers or  customers,  except as may be necessary in the  performance  of
    Consultant's  work for the  Company  or as may be  authorized  in advance by
    appropriate  officials of the Company.  "Confidential  Information" includes
    Innovations  (as  defined in Section 6.2 below),  marketing  plans,  product
    plans,  business strategies,  financial  information,  forecasts,  personnel
    information,  customer lists, trade secrets,  any other non-public technical
    or  business   information,   third  party  information  made  available  to
    Consultant,  joint  research  agreements or  agreements  entered into by the
    Company or any of its affiliates,  whether in writing or given to Consultant
    orally,  which Consultant knows or has reason to know the Company would like
    to treat as confidential for any purpose,  such as maintaining a competitive
    advantage  or  avoiding   undesirable   publicity.   Consultant   will  keep
    Confidential  Information  secret and will not allow any unauthorized use of
    the  same  whether  or  not  any  document   containing   it  is  marked  as
    confidential.  These restrictions,  however,  will not apply to Confidential
    Information that has become known to the public  generally  through no fault
    or breach of Consultant or that the Company regularly gives to third parties
    without  restriction  on use or  disclosure  or was known to the  Consultant
    prior to this agreement.

    2.Records. Consultant agrees to keep separate and segregated from other work
    all documents,  records,  notebooks and correspondence which directly relate
    to his/her  work  under  this  Agreement.  With  respect  to data  stored on
    magnetic media such as computer discs or tapes,  those directly  relating to
    Consultant's  work under this  Agreement  may be stored  with those of other
    work on the same  magnetic  media;  however,  they shall be stored in files,
    directories,  or other appropriate forms, so that those directly relating to
    Consultant's  work under this Agreement may be identified and separated from
    those of other work with reasonable ease.

    3.  Record of  Confidential  Information.  All  notes,  memoranda,  reports,
    drawings,  manuals,  materials, data and any papers or records of every kind
    which are or shall come into Consultant's  possession at any time during the
    Consulting  Period related to Confidential  Information of the Company shall
    be the sole and exclusive  property of the Company.  This property  shall be
    surrendered to the Company upon termination of the Consulting Period or upon
    request of the Company at any time either during or after the termination of
    the Consulting  Period,  and no copies,  notes, or excerpts thereof shall be
    retained,  except that, copies,  notes, or excerpts of said property already
    archived  on  magnetic  tapes  by  Consultant's  backup  processes  shall be
    retained by Consultant for a period no longer than what Consultant  normally
    would for backup  archives,  and no part of said archived  property shall be
    reproduced thereafter from said tapes in any form without written permission
    from the Company.

    4.  Proprietary   Properties  of  Others.  In  his  performance   hereunder,
    Consultant  shall comply with all legal  obligations he may now or hereafter
    have respecting the information or other property of any other person, firm,
    or corporation.  Specifically,  Consultant shall not disclose to the Company
    any proprietary information or trade secrets of others.

5. Innovations
      1.      Company Property. All Innovations made, conceived, or completed by
      Consultant,   individually  or  in  conjunction  with  others  during  the
      Consulting Period shall be the sole and exclusive property of the Company,
      provided  such  Innovations  (i) are made,  conceived  or  completed  with
      equipment,  supplies,  or facilities of the Company,  its  subsidiaries or
      affiliates,  or (ii) are made, conceived or completed by Consultant during
      hours in which Consultant is performing services for the Company or any of
      its  subsidiaries or affiliates.  It is understood that nothing  contained
      herein shall affect the rights or obligations  of Consultant  with respect
      to any  Innovations  which are protected by Section 2870 of the California
      Labor Code.

    2. Disclosure, assignment, and waiver
        1 Disclosure of Innovations. Consultant shall, at the Company's expense,
        disclose  in writing to the  Company,  to the extent of detail  that the
        Company may reasonably request, all inventions,  discoveries,  concepts,
        ideas,  improvements  and other  innovations of any kind that Consultant
        may make, conceive, develop or reduce to practice, alone or jointly with
        others,  in the course of performing work for the Company or as a result
        of that work,  whether or not they are eligible  for patent,  copyright,
        trademark,  trade  secret  or other  legal  protection  ("Innovations").
        Examples  of  Innovations  include:   formulas,   algorithms,   methods,
        processes,  databases,  mechanical and electronic  hardware,  electronic
        components,  computers  and their parts,  computer  languages,  computer
        programs  and  their  documentation,   encoding  techniques,   articles,
        writings,  compositions,  work of authorship,  marketing and new product
        plans,  production  processes,  advertising,   packaging  and  marketing
        techniques, and improvements to anything.

        2  Assignment  of  Ownership.  Consultant  agrees  that all  Innovations
        pertaining  to the  application  of the  Company  will be the  sole  and
        exclusive  property of the Company and hereby assigns to the Company all
        rights  in  the   Innovations  and  in  all  related   patents,   patent
        applications,  copyrights, mask work rights, trademarks,  trade secrets,
        rights of  priority  and other  proprietary  rights.  The  rights of the
        consultant to use and market his innovations in other unrelated  arenas,
        specifically medical applications, are not transferred by this agreement
        At the Company's request and expense, during and after the period during
        which  Consultant  acts as a consultant to the Company,  Consultant will
        assist and  cooperate  with the Company in all respects and will execute
        documents,  and subject to reasonable  availability,  give testimony and
        take  further  acts  requested  by the  Company  to  acquire,  transfer,
        maintain and enforce  patent,  copyright,  trademark,  mask work,  trade
        secret and other  legal  protection  for the  Innovation(s).  Consultant
        hereby   appoints  the   Secretary   of  the  Company  as   Consultant's
        attorney-in-fact  to execute  documents on Consultant's  behalf for this
        purpose.

        3 Legal  Proceedings.  Whenever requested to do so by the Company and at
        the Company's expense,  Consultant shall promptly deliver to the Company
        evidence  for  interference  purposes  or other  legal  proceedings  and
        testify in any interference or other legal  proceedings which relates to
        any matters on which  Consultant  has provided  services to the Company.
        Company shall  promptly pay  Consultant  his usual and customary fees if
        Consultant  is required to  testify,  travel or miss his regular  office
        hours in order to participate in said proceedings.

        4 Non-Infringement. Consultant represents and warrants that the services
        performed under this Agreement and the  Innovations  made or contributed
        by  Consultant  hereunder  will not  infringe on any rights of any third
        party.

        5 Notification  of license  requirement.  Prior to  introduction  to the
        Company any  Innovation  that  requires  or may  require a license  from
        Consultant or a third party,  Consultant  shall notify the Company about
        such requirement or the possibility of such requirement.

6. Non-Solicitation.  During the Consulting Period and for a period of two years
after the expiration or earlier  termination of the Consulting  Period,  neither
Consultant nor the Company shall employ the other party's employees,  or solicit
or recruit the other  party's  employees  for a third  party,  without the other
party's prior written consent.

7. Termination. The Consulting Period may be terminated as set forth in Schedule
A. The covenants and  agreements  set forth in Sections 4, 5 and 6 shall survive
the  Consulting  Period  and  remain in full  force and effect for two (2) years
regardless of such termination.

8.  Severability.  If a court finds any provision of this  Agreement  invalid or
unenforceable as applied to any  circumstance,  that provision shall be enforced
to the maximum extent  permitted by law, and the other provisions will remain in
full force and effect.

9. Notice.  Any notice to be delivered  pursuant to this  Agreement  shall be in
writing and shall be deemed  delivered upon service,  if served  personally,  or
three days after  deposit in the United  States Mail, if mailed by registered or
certified with return receipt requested, and addressed to the other party at the
following address, or such address as may be designated in accordance herewith:

         To the Company:                             To Consultant:
         Paradigm Medical Industries, Inc.           Michael B. Limberg, M.D.
         1127 West 2320 South Suite A                1270 Peach Street
         Salt Lake City, UT  84119                   San Luis Obispo, CA  93401

 10. Binding Effect: No Assignment. This Agreement shall be binding upon
Consultant, and except as regards personal services, upon Consultant's heirs,
personal representatives, executors and administrators, and shall inure to the
benefit of the Company, its successors and assigns. This Agreement may not be
assigned by Consultant and any attempted assignment by Consultant shall be void.

11. Amendment. This Agreement may be modified or amended only by mutual written
consent of the parties.

12. Governing Law. This Agreement shall be governed and enforced in accordance
with the laws of the State of California, excluding that body of law known as
choice of law.

13. Entire Agreement. This Agreement contains the entire agreement of the
parties relating to the subject matter hereof, and supersedes all prior and
contemporaneous negotiations, correspondences, understanding and agreements of
the parties relating to the subject matter hereof.

14.  Attorney's Fees. In the event that legal proceedings are brought to enforce
any  provisions  contained  herein,  the  prevailing  party shall be entitled to
recover reasonable attorney's fees, costs and expenses.

Executed this Agreement as of the date first above written.

Consultant: Michael B. Limberg, M.D.

By: /s/ Michael B. Limberg, M.D.
    ----------------------------
    Michael B. Limberg, M.D.

Company: Paradigm Medical Industries, Inc.

By: /s/ Michael W. Stelzer
    ----------------------
    Michael W. Stelzer, Chief Operating Officer

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