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                            WHITEBOX STATISTICAL ARBITRAGE FUND, L.P.
                                     SUBSCRIPTION AGREEMENT
                               (U.S. Taxable Subscribers Only)

     This Subscription Agreement (this "Agreement") is made by and among
Whitebox Statistical Arbitrage Fund, L.P., a Delaware limited partnership
(the "Partnership"), Whitebox Statistical Arbitrage Advisors, LLC, a Delaware
limited liability company and the Partnership's general partner (the "General
Partner"), and the subscriber ( the "Subscriber") named on the signature page
to this Agreement.

     WHEREAS, the Subscriber desires to acquire a limited partnership interest
(the "Interest") in, and to become a limited partner of, the Partnership.

     WHEREAS, capitalized terms used but not otherwise defined in this
Agreement shall have the meanings specified in the Partnership's limited
partnership agreement (as amended from time to time, the "Partnership
Agreement"), in the form that accompanies the Confidential Private Placement
Memorandum dated January 1, 2001 (as amended, supplemented or updated from
time to time, the "Memorandum").

     NOW, THEREFORE, in consideration of the foregoing and of the mutual
covenants and agreements set forth in this Agreement, the parties hereto agree
as follows:

                                       ARTICLE I
                             SUBSCRIPTION FOR THE INTEREST

     Subject to and in accordance with the respective terms and conditions of
this Agreement and the Partnership Agreement, the Subscriber hereby
irrevocably subscribes for and agrees to purchase the Interest and to become a
limited partner of the Partnership (a "Limited Partner"), to be bound by all
of the provisions of the Partnership Agreement, and to make a cash Capital
Contribution to the Partnership in the amount set forth on the signature page
to this Agreement.

     The General Partner reserves the right to accept or reject the
Subscriber's subscription, in whole or in part, in its sole discretion.

                                      ARTICLE II
                      REPRESENTATIONS AND WARRANTIES OF THE SUBSCRIBER

2.1  Representations and Warranties.  In connection with its subscription for
the Interest, and as a material inducement to the Partnership to issue the
Interest to the Subscriber, the Subscriber hereby makes the following
representations and warranties to the General Partner and the Partnership.
The Subscriber further represents and warrants that it will notify the General
Partner in writing promptly (but in all events within 30 days after the
applicable change) of any actual or anticipated change in any facts or
circumstances, which change would make any of the representations and
warranties set forth below in this Section 2.1 untrue if made as of the date
of such change (after giving effect thereto).

     (a)  Power and Authority.  The Subscriber is fully authorized, empowered
and qualified to execute and deliver this Agreement and the Partnership
Agreement (collectively, the "Subscriber Agreements"), to subscribe for and
purchase the Interest and to perform its obligations under, and to consummate
the transactions that are contemplated by, each Subscriber Agreement.  Without
limiting the generality of the foregoing, the subscription for and the
purchase of the Interest, and the execution and delivery of each of the
Subscriber Agreements, by the Subscriber have been authorized by all necessary
corporate or other action of, or on behalf of, the Subscriber, and each of the
Subscriber Agreements is a legal, valid and binding obligation of the
Subscriber, enforceable against the Subscriber in accordance with its terms.
The signature of the person, individual or other party signing any Subscriber
Agreement as, or on behalf of, the Subscriber is binding on and enforceable
against the Subscriber.

     (b)  Compliance with Laws; No Conflict.  The execution and delivery of
the Subscriber Agreements by or on behalf of the Subscriber and the
performance of the Subscriber's obligations under, and the consummation of the
transactions contemplated by, the Subscriber Agreements do not and will not
conflict with or result in any violation of, or default under, any provision
of any charter, bylaws, trust agreement, partnership agreement or other
governing instrument applicable to the Subscriber, or other agreement or
instrument to which the Subscriber is a party or by which the Subscriber is,
or any of its assets are, bound, or any permit, franchise, judgment, decree,
statute, rule, regulation or other law applicable to the Subscriber or the
business or assets of the Subscriber.

     (c)  Binding Effect.  The Subscriber acknowledges that this Agreement may
not be assigned by the Subscriber without the prior written consent of the
General Partner and may not be canceled, terminated or revoked by the
Subscriber.

     (d)  Residence and Principal Place of Business.  The address set forth on
the signature page to this Agreement is the Subscriber's correct residence or
principal place of business (as applicable), and the Subscriber has no present
intention of moving its residence or principal place of business (as
applicable) to any other domestic or foreign jurisdiction.

     (e  Receipt of Documents Access to Information.  The Subscriber has
received copies of the Memorandum and the Subscriber Agreements.  The
Subscriber has carefully reviewed and is familiar with the terms of the
Memorandum and the Subscriber Agreements.  The Subscriber has been given the
opportunity to ask questions, and has received satisfactory answers,
concerning the terms and conditions of an investment in the Partnership, and
has been given the opportunity to obtain any additional information, and has
obtained all such information requested by the Subscriber, in order to
evaluate the merits and risks of an investment in the Partnership and to
verify the accuracy of the information contained in the Memorandum and the
Subscriber Agreements.

     (f)  Reliance.  The Subscriber has relied on nothing other than the
Memorandum and the Subscriber Agreements (including all exhibits and
appendices thereto) in deciding whether to make an investment in the
Partnership.

     (g)  Sophistication and Economic Loss.  The Subscriber is a sophisticated
investor with such knowledge and experience in business and financial matters
as renders the Subscriber able to evaluate the merits and risks of an
investment in the Partnership and the Subscriber's financial situation is such
that the Subscriber is able to bear the economic risk and lack of liquidity of
an investment in the Partnership.

     (h)  Investment Risks.  The Subscriber understands that the purchase of
the Interest involves certain risks, including those set forth under the
captions "Investment Objectives and Policies and Related Risk Factors" and
"Other Risk Factors" in the Memorandum and, without limiting the generality
of the foregoing, specifically understands that the Partnership has no
operating history.

     (i)  Investment Intent.  The Subscriber is acquiring the Interest for its
own account for investment only, and not with a view to any distribution
thereof in violation of the Securities Act of 1933, as amended (the
"Securities Act"), or any other applicable domestic or foreign securities
law, and the Subscriber has no present plans to enter into any contract,
undertaking, agreement or arrangement for any such distribution.

     (j)  No Registration of Interest; Limitations on Transfer.  The
Subscriber acknowledges that, based in part upon its representations and
warranties contained in this Agreement and in reliance upon applicable federal
and state exemptions, no Interest in the Partnership acquired by the
Subscriber has been or will be registered under the Securities Act or the
securities laws of any domestic or foreign jurisdiction.  Accordingly, no
Interest may be transferred, offered or sold unless the Interests are
registered under the Securities Act and any applicable state and foreign
securities laws or exemptions from such registration requirements are
available.  In addition, the Subscriber understands that sales or transfers of
the Interests are further restricted by the provisions of the Partnership
Agreement.  The Subscriber hereby agrees that it will not, directly or
indirectly, assign, transfer, offer, sell, pledge, hypothecate or otherwise
dispose of all or any part of the Interest (or solicit any offers to buy,
purchase or otherwise acquire or take a pledge of all or any part of the
Interest) except in accordance with the registration provisions of the
Securities Act and the securities laws of any other applicable domestic or
foreign jurisdiction, or available exemptions from such registration
provisions, and the terms of the Partnership Agreement.

     (k)(Please check each applicable box in this section.)  The Subscriber is
an "accredited investor" because the Subscriber is:

  [ ]   A bank as defined in Section 3(a)(2) of the Securities Act, or a savings
and loan association or other institution as defined in Section 3(a)(5)(A) of
the Securities Act whether acting in its individual or fiduciary capacity; a
broker-dealer registered pursuant to Section 15 of the Securities Exchange Act
of 1934, as amended (the "Securities Exchange Act"); an insurance company as
defined in Section 2(13) of the Securities Act; an investment company
registered under the Investment Company Act of 1940, as amended (the
"Investment Company Act"), or a business development company as defined in
Section 2(a)(48) of the Investment Company Act; a Small Business Investment
Company licensed by the U.S. Small Business Administration under Section
301(c) or (d) of the Small Business Investment Act of 1958; a plan established
and maintained by a state, its political subdivisions, or any agency or
instrumentality of a state or its political subdivisions, for the benefit of
its employees, if such plan has total assets in excess of $5,000,000; an
employee benefit plan within the meaning of the Employee Retirement Income
Security Act of 1974, as amended ("ERISA"), if the investment decision is
made by a plan fiduciary, as defined in Section 3(21) of ERISA, which is
either a bank, savings and loan association, insurance company, or registered
investment adviser, or if the employee benefit plan has total assets in excess
of $5,000,000, or, if a self-directed plan, with investment decisions made
solely by persons that are accredited investors.

  [ ]   A private business development company as defined in Section 202(a)(22)
of the Investment Advisers Act of 1940, as amended (the "Investment Advisers
Act").

  [X]   An organization described in Section 501(c)(3) of the Internal Revenue
Code, corporation, Massachusetts or similar business trust, or partnership,
not formed for the specific purpose of acquiring the securities offered, with
total assets in excess of $5,000,000.

  [ ]   A director, executive officer, or general partner of the issuer of the
securities being offered or sold, or a director, executive officer, or general
partner of a general partner of that issuer.

  [ ]   A natural person whose individual net worth, or joint net worth with
that person's spouse, at the time of his or her purchase exceeds $1,000,000.

  [ ]  A natural person who had an individual income in excess of $200,000 in
each of the two most recent years or joint income with that person's spouse in
excess of $300,000 in each of those years and has a reasonable expectation of
reaching the same income level in the current year.

  [ ]  A trust with total assets in excess of $5,000,000, not formed for the
specific purpose of acquiring the securities offered, whose purchase is
directed by a sophisticated person as described in Rule 506(b)(2)(ii) of
Regulation D promulgated by the Securities and Exchange Commission under the
Securities Act.

  [ ]  An entity in which all of the equity owners are accredited investors (as
defined above).

     (l)  Investment Company Act - If the Subscriber is a natural person,
please skip this section and continue with Section (m).  If the Subscriber is
not a natural person, please complete each portion of this section.
            (i)  You must check one of the following two boxes:

       [X]   The Subscriber was not formed, organized, reorganized, capitalized
or recapitalized for the purpose of making an investment in the Fund.

       [ ]   The Subscriber is unable to so represent.  (Please attach a
schedule that includes the name and address of each shareholder, partner,
member or other beneficial owner of the Subscriber.  The Subscriber warrants
that it will promptly notify the General Partner in writing of any changes to
such schedule at any time during the Subscriber's investment in the
Partnership.)

            (ii)  You must check one of the following two boxes:

        [X]   The Subscriber's Capital Contribution does not exceed 40% of its
total assets and does not exceed 40% of its committed capital.

        [ ]   The Subscriber is unable to so represent.  (Please attach a
schedule that includes the name and address of each shareholder, partner,
member or other beneficial owner of the Subscriber.  The Subscriber warrants
that it will promptly notify the General Partner in writing of any changes to
such schedule at any time during the Subscriber's investment in the
Partnership.)

              (iii)  You must check one of the following two boxes:

        [X]   The shareholders, partners, members or other beneficial
owners of the Subscriber (including plan participants if the Subscriber
is an employee benefit or pension plan) do not, and will not, have
individual discretion as to their participation in particular investments
made by the Subscriber.

        [ ]   The Subscriber is unable to so represent.  (Please attach a
schedule that includes the name and address of each shareholder, partner,
member or other beneficial owner of the Subscriber.  The Subscriber warrants
that it will promptly notify the General Partner in writing of any changes to
such schedule at any time during the Subscriber's investment in the
Partnership.)

         (iv) You must check one of the following two boxes:

        [X]   The Subscriber is not an "investment company" that is registered
or required to be registered under the Investment Company Act.

        [ ]   The Subscriber is unable to so represent.  (Please attach a
schedule listing the name and address of each beneficial owner of such
investment company's shares.  The Subscriber warrants that it will
promptly notify the General Partner in writing of any changes to such
schedule at any time during the Subscriber's investment in the Partnership.)

          (v) You must check one of the following two boxes:

        [X]   The Subscriber is not relying on the exclusions set forth in
Section 3(c)(1) or Section 3(c)(7) of the Investment Company Act as the basis
for its exclusion from the definition of "investment company" set forth in
Section 3(a) of the Investment Company Act.

        [ ]   The Subscriber is unable to so represent.  (Please attach a
schedule that includes the name and address of each shareholder, partner,
member or other beneficial owner of the Subscriber.  The Subscriber warrants
that it will promptly notify the General Partner in writing of any changes
to such schedule at any time during the Subscriber's investment in the
Partnership.)

     (m)  NASD Free-Riding and Withholding Interpretation. The U.S. National
Association of Securities Dealers, Inc. ("NASD") restricts certain persons
("Restricted Persons") from profiting from the gains on "hot issues"
(securities issued in a public offering that trade at a premium in the
secondary market).  In order for the Fund to invest in hot issues (if it
decides to do so), it must obtain certain information regarding each
Subscriber and each person having a direct or indirect beneficial interest in
with respect to Subscriber, to determine whether the Subscriber is a
Restricted Person.

              (You must check one of the following two boxes.)

        [ ]   Subscriber represents and warrants that it is not a member firm
of the National Association of Securities Dealers, Inc. (the "NASD") or any
person associated with any such NASD member firm or any person to whom any NASD
member firm or any person associated therewith would be prohibited or
otherwise restricted under the Free-Riding and Withholding Interpretation of
the NASD, Section IM-2110-1 of the NASD's Conduct Rules (the "NASD
Interpretation"), from selling "hot issues" (as defined in the NASD
Interpretation).

        [X]   The Subscriber is unable to so represent.

          (n) ERISA.  The Subscriber is/is not a "benefit plan investor"
within the meaning of paragraph (f)(2) of the Department of Labor plan asset
regulations (29 CFR 2510.3-101), as indicated by marking one of the following
boxes:

        [ ]   is a benefit plan investor

        [X]   is not a benefit plan investor

Note:  "Benefit plan investors" include, but are not limited to, individual
retirement accounts, pension, profit-sharing and stock bonus plans and
governmental plans.

          (o)  Tax Year.  The Subscriber's tax year ends on:

        [X]   December 31

        [ ]   Other
          ______________________

(please specify)
          (p)  Tax Status.  The Subscriber is not an organization (i) the
income of which is exempt from taxation under Section 401 or 501 of the Code
or (ii) that generally is taxed on its income under the Code only to the
extent that it is engaged in an "unrelated trade or business" within the
meaning of Section 513(a) of the Code (a "tax exempt organization").

          (q)  Special Notice to Florida Subscribers Only.  Each Subscriber
that is a Florida resident is hereby informed of his right to void his
acquisition of the Interest within three days after he first tenders his
Capital Contribution.  This right does not exist, however, if the Fund
determines not to rely on the registration exemption contained in Section
517.061(11) of the Florida Securities and Investor Protection Act.  The
Subscriber represents and warrants that he has been given access to all
material books and records of the Fund and has been given access to all
material contracts and documents relating to his acquisition of the Interest.

     2.1  Effect and Time of Representations.  The Subscriber's
representations and warranties set forth in this Agreement are true, and have
been complied with, as of the date of the Subscriber's execution of this
Agreement and shall be true and correct as of the Subscriber's admission to
the Fund as a Shareholder.  The Subscriber acknowledges that the Fund and each
Shareholder thereof have relied and will rely upon the representations and
warranties of the Subscriber set forth in this Agreement, and that all such
representations and warranties shall survive the execution and delivery of the
Subscriber Agreements notwithstanding any knowledge on the part of the Fund or
the Manager of any breach of any such representation or warranty, and the
issue and sale of the Shares.  The Subscriber hereby agrees to indemnify and
hold harmless the Fund, the Manager, and their respective affiliates, together
with the directors, officers and employees of each of the foregoing, from and
against any and all claims, damages and liabilities (including without
limitation reasonable attorney fees) resulting from, arising out of or
relating to any breach of any representation or warranty contained in this
Article II.

                                       ARTICLE III
                                     POWER OF ATTORNEY

3.1  Power of Attorney.  The Subscriber hereby constitutes and appoints Andrew
Redleaf and the General Partner, and each of them, with full power of
substitution and re-substitution, as the Subscriber's true and lawful
attorneys-in-fact, with full power and authority in the Subscriber's name,
place and stead to make, execute, deliver, acknowledge, publish, file and swear
to in the execution, delivery, acknowledgment, filing and/or recording of:

     (a)  the Partnership Agreement, and any amendments thereto as may be
required to effect:  admission of additional Partners pursuant to Article 4;
assignment or transfers of Interests pursuant to Article 10; additional capital
contributions pursuant to Article 5; or withdrawal of Partners pursuant to
Article 8.

     (b  the Partnership's Certificate of Limited Partnership required under
the laws of the State of Delaware or the laws of any other jurisdiction in
which such Certificate is required to be filed and any amendments thereto or
cancellation thereof;

     (c)  any certificates, instruments and documents, including
without limitation, fictitious name certificates, as may be required by, or may
be appropriate under, the laws of the United States, the laws of the State of
Delaware or any other state or jurisdiction in which the Partnership is doing
or intends to do business;

     (d)  any other instrument which may be required to be filed by the
Partnership under the laws of any jurisdiction or by any governmental agency,
or which such attorneys-in-fact, or any of them, deem advisable to file; and

     (e)  any documents which may be required to effect the admission of a
successor to the General Partner, a Substitute Limited Partner, or the
dissolution and termination of the Partnership, in accordance with the terms
of the Partnership Agreement.

3.2  Irrevocability; Survivability.  The foregoing grant of authority:

     (a)  is a Special Power of Attorney coupled with an interest and is
irrevocable;

     (b)  may be exercised by such attorneys-in-fact for the Subscriber, and
the Subscriber's name shall be listed in the instrument as a Limited Partner;
and

     (c)  shall survive the Subscriber's delivery of an assignment of the
Interest except that where the assignee thereof has been approved by the
General Partner for admission to the Partnership as a Substitute Limited
Partner as provided for in Article 10 of the Partnership Agreement, the Special
Power of Attorney shall survive the delivery of such assignment for the sole
purpose of enabling such attorneys-in-fact, or any of them, to execute,
acknowledge and file any instrument necessary to effect such substitution.

3.3  Binding Effect; Waiver of Defenses; Ratification.  The Subscriber hereby
agrees to be bound by all the representations of the Subscriber's attorneys-in-
fact and waives any and all defenses which may be available to the Subscriber
to contest, negate or disaffirm the actions of such attorneys-in-fact, or any
of them, under this Power of Attorney, and hereby ratifies and confirms all
acts which said attorneys-in-fact, or any of them, may take as attorneys-in-
fact hereunder in all respects as though performed by the Subscriber.

3.4  Conflicts with Partnership Agreement.  In the event of any conflict
between the provisions of the Partnership Agreement and any document executed
or filed by the attorneys-in-fact pursuant to this Power of Attorney, the
Partnership Agreement shall govern.

                                     ARTICLE IV
                                    MISCELLANEOUS

4.1  Notices.  Any notice, request, demand or other communication required by
or permitted to be given in connection with this Agreement shall be in
writing, except as expressly otherwise permitted herein, and shall be
delivered in person, sent by first class mail (postage prepaid and certified
or registered, with return receipt requested), sent by facsimile or similar
means of communication, or delivered by a courier service (charges prepaid),
to the respective party at its address as set forth on the signature page to
this Agreement.  Each party may change its address by notifying each other
party of such change in accordance with the provisions of this Section 4.1.
Any such notice, request, demand or other communication shall be deemed to be
given (a)when received, if personally delivered; (b)if mailed, on the third
business day after it is deposited in the United States mail, properly
addressed, with proper postage affixed; (c)if sent by facsimile or similar
device, when electronically confirmed; and (d)if sent by courier service, 24
hours after shipped by such courier service; provided, however, that any
notice to the Partnership shall be effective only if and when received by the
General Partner.

4.2  Governing Law; Consent to Jurisdiction.  This Agreement shall be governed
by and construed in accordance with the internal laws (and not the law of
conflicts) of the State of Delaware.  The parties hereby consent to the non-
exclusive jurisdiction of the courts of the State of Delaware and any federal
or state court located in Minneapolis, Minnesota for any action arising out of
this Agreement.

4.3  Binding Effect, and Severability.  The Subscriber may not assign any of
its rights or obligations under this Agreement without the prior written
consent of the General Partner. This Agreement and the rights and obligations
set forth herein shall be binding upon, and shall inure to the benefit of, the
Subscriber, the Partnership and the General Partner, and their respective
successors and permitted assigns.  If any provision of this Agreement, or the
application of such provision to any circumstance, shall be invalid under the
laws of the applicable jurisdiction, the remainder of this Agreement or the
application of such provision to other persons or circumstances or in other
jurisdictions shall not be affected thereby.

4.4  Entire Agreement.  This Agreement, including the appendices hereto,
constitutes the entire agreement, and supersedes all prior agreements or
understandings, among the parties hereto with respect to the subject matter
hereof.

4.5  Counterparts. This Agreement may be executed in one or more separate
counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.

                                  SIGNATURE PAGE FOLLOWS

IN WITNESS WHEREOF, the Subscriber has executed this Subscription Agreement as
of the date set forth opposite its name below.

                         PRINTWARE, INC.
                         _________________________________
                        (Type or Print Name of Subscriber)

Date:                             By: /s/Mark G. Eisenschenk
     ------------------------     -------------------------------------
                                  Mark G. Eisenschenk

                                  Title: Chief Financial Officer

Business Address of Subscriber:   1270 Eagan Industrial Road
                                  St. Paul, Minnesota  55121

Telephone Number:                 651-456-1403
Facsimile Number:                 651-454-3684
E-Mail Address:                   meisen@printwareinc.com
U.S. Taxpayer ID No.:             41-1522267

Residence of Subscriber (a natural person):

__________________________________________

__________________________________________

__________________________________________

Telephone Number:
                 _________________________

Facsimile Number:
                 _________________________

Capital Contribution: $2,000,000.00

Accepted as of March 1, 2001

WHITEBOX STATISTICAL ARBITRAGE FUND, L.P.

By: /s/Jonathan Wood
------------------------------------------
Jonathan Wood
By:  Whitebox Statistical Arbitrage Advisors, LLC,
     its General Partner

UNITED STATES TAXABLE INVESTORS ONLY

Under penalty of perjury, by signature above, Subscriber certifies that (a)
the Social Security Number or Taxpayer ID Number is Subscriber's true, correct
and complete Social Security Number or Taxpayer ID Number and (b) Subscriber
is not subject to backup withholding because: (i) Subscriber is exempt from
backup withholding; (ii) Subscriber has not been notified by the Internal
Revenue Service (the "IRS") that Subscriber is subject to backup withholding;
or (iii) the IRS has notified Subscriber that Subscriber is no longer subject
to backup withholding.EXHIBIT 10.12

	EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this "Agreement") is entered
into by and between HemaCare Corporation (the "Company"),
located at 4954 Van Nuys Boulevard, Sherman Oaks, CA  91403,
and Joshua Levy, M.D. (the "Employee") as of  March 22,
2000.

1.  	Employment

The Company employs the Employee, and the Employee accepts
employment (hereinafter, the "Employment"), upon the terms and
conditions of this Agreement.

2.  	Duties

Employee shall perform the duties of National Medical
Director, including (i) providing medical oversight for the
Company's operations (including those relating to therapeutic
apheresis and blood product collection and distribution), (ii)
reviewing, approving and monitoring the Company's standard
operating procedures and compliance therewith, (iii) providing
leadership and general supervision and direction to regional
medical directors, (iv) providing support and training to
physicians treating patients and supervising therapeutic
apheresis procedures performed by the Company's nursing
personnel, (v) promoting the appropriate use of therapeutic
apheresis in the healthcare community through educational
activities, (vi) providing medical input to the Company's
management and Board of Directors, (vii) arranging for backup, on
call coverage by other physicians when on vacation and otherwise
unavailable, and (viii) performing such other duties of a
responsible nature consistent with his position as may be
prescribed from time to time by the Board of Directors.  Employee
shall devote substantially all of his working time and efforts to
the business and affairs of the Company; provided, however, that
during the Term hereof the Employee may continue to devote
substantially the same time and attention to his medical practice
as he devoted thereto immediately before the Effective Date.
During the Employment, Executive shall report directly to the
Executive Chairman and from time to time the Board of Directors
of the Company.

3.  Term

Unless otherwise terminated as provided below, the initial
term (the "Term") of this Agreement shall begin on March 22, 2000
(the "Effective Date") and shall terminate on the first
anniversary thereof and, thereafter, shall be renewed
automatically for subsequent one year terms unless written notice
of termination is given by either party to the other not less
than ninety (90) days before the end of the initial term or any
subsequent one year renewal term.  The effective date of such
termination is referred to hereinafter as the "Termination Date."

4.  	Compensation

	1.	Base Salary

	The Company shall pay the Employee for all services rendered
a salary of $200,000 per year (the "Base Salary") which may be
adjusted by the Board of Directors of the Company as recommended
by the Board Compensation Committee, payable in semi-monthly
installments or in such other manner as the Company shall pay its
executives.

	2.	Incentive Compensation

	For each fiscal year of the Company which ends during the
Term, the Company shall pay to Employee an annual bonus equal to
ten percent (10%) of the increase, if any, in the Company's net
operating profits from therapeutic apheresis services realized
during such fiscal year when compared to the prior fiscal year,
which bonus shall be payable within ninety (90) days after the
end of such fiscal year.  Such bonus shall be in addition to any
other bonus awarded at the discretion of the Board of Directors.

	All bonus calculations shall exclude the revenues and net
operating profits, if any, resulting from therapeutic apheresis
services performed for patients of Employee's medical practice.

	3.	Fringe Benefits

	Employee shall be eligible for all fringe benefits as stated
in the HemaCare Corporation Personnel Manual, plus the following
additions/modifications and those which are from time to time
provided to other employees of the Company holding senior
executive positions.

		1.	Vacation: 4 weeks

		2.	Health/dental insurance commencing on the first
day of the month following the date of employment.

		3.	Long term disability insurance equal to two-thirds
of Base Salary pursuant to the terms of such insurance policy,
provided that such insurance is available on commercially
reasonable terms.

		4.	Term life insurance in an amount of $1,000,000,
provided that such insurance is available on commercially
reasonable terms.

		5.	Participation in the Company's employee retirement
programs including the Company's 401(K) Plan.

5.	Change of Control

	In the event of a Change of Control (as defined in
Exhibit A hereto) which occurs during the Employment and within
twelve months thereafter either (i) the Employment is terminated
by the Company without Cause or (ii) the principal place of the
Employment is changed from Southern California, Employee shall be
entitled to receive two (2) times the amount of the severance
payment determined pursuant to paragraph X below.

6.  	Extent of Services

	During the Term, Employee shall not, without the prior
written consent of the Company, be engaged in any other business
activity whether or not such business activity is pursued for
gain, profit or other pecuniary advantage; provided, however,
that during the Term hereof the Employee may continue to
devote substantially the same time and attention to his
medical practice as he devoted thereto immediately before
the Effective Date.  This shall not be construed as
preventing Employee from investing his assets in such form
or manner as will not require the performance of services of
Employee in the operation of the affairs of the enterprises
or companies in which said investments are made.

7.  	Non-Disclosure; Nonsolicitation; Nondisparagement

	A.	Employee shall not, during the Term or at any time
thereafter, (i) disclose to any person not employed by the
Company or any person, firm or corporation engaged to render
services to Company except during the Term for the benefit of
Company, or (ii) use for the benefit of himself, or others, any
Confidential Information (as defined below) obtained by Employee
prior to the Effective Date, including, without limitation,
"know-how," trade secrets, details of the Company's contracts
with third parties, pricing policies, financial data, operational
methods, marketing and sales information or strategies, product
development techniques or plans or any strategies relating
thereto, technical processes, designs and design projects, and
other proprietary information of Company ("Confidential
Information"); provided, however, that this provision shall not
preclude Employee from (x) upon advice of counsel and after
reasonable notice to Company, making any disclosure required by
any applicable law or (y) using or disclosing information known
generally to the public (other than information known generally
to the public as a result of any violation of this paragraph VI
by or on behalf of Employee).

	B.	 As requested by the Company from time to time and upon
the termination of the Employment for any reason, Employee shall
promptly deliver to the Company all copies and embodiments, in
whatever form, of all Confidential Information in Employee's
possession or within Employee's control (including, but not
limited to, written records, notes, photographs, manuals,
notebooks, documentation, program listings, flow charts, magnetic
media, disks, diskettes, tapes and all other materials containing
any such Confidential Information) regardless of the location or
form of such material and, if requested by the Company, shall
provide the Company with written confirmation that all such
materials have been delivered to the Company.

	C.	The Employee shall not, either directly or indirectly,
call on, solicit or take away or assist to be called on,
solicited or taken away, any of the customers, other employees or
independent contractors of the Company on whom the Employee
called or with whom the Employee became acquainted during the
Employee's employment with or hiring by the Company, either for
the Employee's own benefit, or for the benefit of any other
person, firm or corporation.  The Employee shall not disclose the
name of any employee, customer, sales representative or other
employee of the Company to any third party, unless the disclosure
occurs during the Employee's employment with the Company and is
reasonably required by the Employee's position with the Company.
 The Employee shall not now or in the future disrupt, damage,
impair or interfere with the business of the Company in any
manner, including, without limitation, inducing an employee to
leave the employ of the Company or inducing an employee, a
consultant, a sales representative or an independent contractor
to sever that person's relationship with the Company either by
interfering with or raiding the Company's employees or sales
representatives, disrupting its relationships with customers,
agents, independent contractors, representatives or vendors, or
otherwise.

	In the event of a breach or threatened breach by Employee of
the provisions of this paragraph, the Company will be entitled to
injunctive or other equitable relief restraining Employee from
any breach or threatened breach of this paragraph VI.  Nothing
herein shall be construed as prohibiting the Company from
pursuing any other remedies available to the Company for such
breach or threatened breach, including the recovery of damages
from Employee.

8.  	Expenses

	The Employee may incur reasonable expenses, in accordance
with Company policies for such expenses, for promoting the
Company's business, including expenses for entertainment, travel
and similar items.  The Company shall reimburse the Employee for
all such expenses upon the Employee's presentation of an itemized
account of such expenditures and supporting documentation, in
accordance with Company policy.

9.  	Termination by the Company for Cause

	This Agreement may be terminated by the Company under any of
the following circumstances:

	1.	Upon the death of Employee; or

	2.	Upon the inability of Employee to perform all of his
duties hereunder by reason of illness, physical, mental or
emotional disability or other incapacity, which inability shall
continue for more than three (3) successive months or six (6)
months in the aggregate during any period of twelve (12)
consecutive months; or

	3.	For cause, defined as:

		(i)	the willful failure of Employee (other than for
the reasons described in subparagraph VIII(B) above) to
substantially perform his duties hereunder.  No act, or failure
to act, on Employee's part shall be considered "willful" unless
done, or omitted to be done, by him not in good faith and without
reasonable belief that his action or omission was in the best
interest of the Company;

		(ii) 	conviction of a crime involving a felony,
fraud, embezzlement or the like,

		(iii)	the engaging by Employee in conduct, or the
taking by Employee of any action, which is materially injurious
to the Company,

		(iv)	habitual insobriety or habitual abuse of a
controlled substance,

		(v)	misappropriation of the Company's funds,

		(vi)	the failure of Employee to comply with the
provisions of Paragraphs V or VI above, or

		(vii)	the failure of Employee to remain licensed to
practice medicine in the State of California.

	Termination pursuant to this subsection may only occur after
written notice from the Company to the Employee specifying the
grounds for termination and the Employee fails within ten (10)
days after receipt of such notice to cure such failure.

10.  	Termination by Employee for Cause

	This Agreement may be terminated by Employee under any of
the following circumstances:

	1.	The failure of the Company to observe or comply with
any of the material terms or provisions of this Employment
Agreement after written notice from Employee to Company specify
to grounds for termination and the Company fails within ten (10)
days after receipt of such notice to cure such failure;

	2.	Any material reduction in Employee's Base Salary, or a
material reduction in Employee's fringe benefits or any other
material failure by the Company to comply with Sections II and IV
hereof;

	3.	The Company sells substantially all of its assets to a
single purchaser or to a group of associated purchasers;

	4.	At least two-thirds of the outstanding shares of each
class of the Company's capital stock are sold, exchanged, or
otherwise disposed of, in one transaction or a series of related
transactions; or

	5.	The Company dissolves or liquidates its business.

Termination pursuant to this subsection may only occur after
written notice from the Employee to the Company specifying the
grounds for termination and the Company fails within ten (10)
days after receipt of such notice to cure such failure.

11.  	Severance

	In the event this Agreement is terminated by the Company,
without cause, or in the event this Agreement is terminated by
the Employee for any of those causes listed in paragraph IX the
Company shall continue to pay the Employee his then current Base
Salary and provide the benefits set forth in paragraph IV(C)(2),
(3) and (4) above for the period commencing on the Termination
Date and expiring twelve (12) months after the Termination Date.

	The Company may, at its option and at any time, discharge all
its obligations to Employee under this paragraph in a single
payment in an amount equal to the net present value (at a
discount rate equal to the prime rate announced from time to time
by Bank of America NT&SA) of all amounts then payable hereunder.
As of the date of payment of all amounts required to be paid by
the Company under this paragraph, the Company will have no
further obligation to Employee with respect to the payment of
severance pay.

10.  	Waiver of Breach

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

11.  	Arbitration

	Any dispute arising out of or relating to this Agreement or
the transactions contemplated hereby shall be finally resolved
and determined by mandatory, binding arbitration before a single
arbitrator in Los Angeles, California, in accordance with the
then-prevailing commercial arbitration rules of the American
Arbitration Association; provided, however, that no claim for
specific performance or injunctive relief shall be required to be
submitted to arbitration; provided, further, that the arbitrator
shall apply the internal laws of the State of California.  Each
of the parties hereto submits to the jurisdiction of the
arbitrator appointed in accordance with such rules and (without
limiting the effect of the foregoing arbitration clause) to the
jurisdiction of any state or federal court sitting in Los Angeles
County, California, in any action or proceeding arising out of or
relating to this Agreement and agrees that all claims in respect
of the action or proceeding may be heard and determined in any
such court.  Each of the parties hereto waives any defense of
inconvenient forum to the maintenance of any action or proceeding
so brought and waives any bond, surety, or other security that
might be required of any other party with respect thereto.
Nothing in this paragraph XII, however, shall affect the right of
any party to bring any action or proceeding arising out of or
relating to this Agreement or the transactions contemplated
hereby in any other court or to serve legal process in any other
manner permitted by law or at equity, for the purposes of
compelling arbitration, enforcing any award in arbitration, or
seeking specific performance or injunctive relief. Any party
hereto may make service on any other party by sending or
delivering a copy of the process to the party to be served at the
address and in the manner provided for the giving of notices in
paragraph XVI hereof.  Each party hereto agrees that a final
award in any such arbitration or final judgment in any such
action or proceeding so brought shall be conclusive and may be
enforced by entry of such award in any court of competent
jurisdiction, suit on the award or judgment, or in any other
manner provided by law or at equity.  In the event of legal
action or arbitration to construe or enforce this Agreement, the
prevailing party (as determined by the court or arbitrator, as
applicable) shall be entitled to recover its reasonable
attorneys' fees and costs.

12.  	Assignment

	The rights and obligations of the Company under this
Agreement shall inure to the benefit of and shall be binding upon
the successors and assigns of the Company, but the rights and
obligations of Employee are personal and may not be assigned or
delegated without the Company's prior written consent.

13.  	Entire Agreement

	This Agreement and the Exhibits attached hereto contain the
entire Agreement of the parties and may not be changed orally,
but only by an agreement in writing executed by the party against
whom enforcement of any waiver, change, modification, extension
or discharge is sought.

14.  	Law Applicable

This Agreement shall be governed in all respects, whether as
to validity, construction, capacity, performance or otherwise, by
the laws of the State of California applicable to contracts made
and to be performed wholly within that state.  In the event any
provision of this Agreement shall be held invalid by a court with
jurisdiction over the parties to this Agreement, such provision
shall be deleted from the Agreement, which shall then be
construed to give effect to the remaining provisions thereof.

15.	Notices

 	Any notice to the Company required or permitted under this
Agreement shall be given in writing to Company, either by
personal service or by registered or certified mail, postage
prepaid, addressed to the Chairman of the Company at its then
principal place of business.  Any such notice to Employee shall
be given in a like manner and, if mailed, shall be addressed to
Employee at his home address then shown in the Company's files.
For the purpose of determining compliance with any time limit in
this Agreement, a notice shall be deemed to have been duly given
(a) on the date of service, if served personally on the party to
whom notice is to be given, or (b) on the second business day
after mailing, if mailed to the party to whom the notice is to be
given in the manner provided in this paragraph.

	IN WITNESS WHEREOF, the parties intending to be legally
bound, have executed this Agreement the day and year first above
stated.

HEMACARE CORPORATION                     EMPLOYEE

/s/ Alan C. Darlington			  /s/ Joshua Levy
____________________________		 __________________________
Alan C. Darlington, Chairman of		  Joshua Levy, M.D.
the Board of Directors

<PAGE>

Exhibit "A"

As used in this Agreement, the phrase "Change of Control" shall
mean:

(a)	Except as provided by subparagraph (b) hereof, the
acquisition by any person, entity or "group," within the meaning
of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of
1934, as amended (the "Exchange Act") of beneficial ownership
(within the meaning of Rule 13d-3 promulgated under the Exchange
Act) of 50% or more of the combined voting power of the then
outstanding securities entitled to vote generally in the election
of directors of the Company; or

(b)	Approval by the Board of a reorganization, merger or
consolidation of the Company with any other person, entity or
corporation, other than:

(i)	a merger or consolidation which would result in
the voting securities of the Company immediately prior thereto
continuing to represent (either by remaining outstanding or by
being converted into voting securities of another entity) more
than 50% of the combined voting power of the securities entitled
to vote generally in the election of directors of the Company or
such other entity outstanding immediately after such merger or
consolidation; or

(ii)	a merger or consolidation effected to implement a
recapitalization of the Company or similar transaction in which
no person, entity or group acquires beneficial ownership of 50%
or more of the combined voting power of the securities entitled
to vote generally in the election of directors of the Company
outstanding immediately after such merger or consolidation; or

(iii)	Approval by the Board of a plan of complete
liquidation of the Company or an agreement for the sale or other
disposition by the Company of all or substantially all of the
Company's assets pursuant to which all or substantially all of
the Company's assets continue to be owned by an affiliate of the
Company.

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