Document:

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                                                                   Exhibit 10.37

                              EMPLOYMENT AGREEMENT

                  This Employment Agreement ("Agreement") is entered into and
made effective as of December 27, 2002, by and between PhotoMedex, Inc.
("Employer") and Michael R. Stewart ("Employee").

                                    RECITALS

         WHEREAS, Employee currently serves as President and Chief Executive
Officer of Surgical Laser Technologies, Inc. ("SLT");

         WHEREAS, the Employer and SLT have entered into an agreement of merger
(the "Merger"), under which SLT shall become, on the effective date of which
(the "Effective Date"), a wholly-owned subsidiary of Employer;

         WHEREAS, Employer wishes to employ Employee as Executive Vice-President
of Corporate Operations of Employer, and Employee wishes to accept such
employment, all on the condition of closing of the Merger and on the terms and
conditions set forth in this Agreement; and

         WHEREAS, in connection with and as a condition of Employer entering
into this Agreement, Employee shall terminate all existing agreements with SLT
and any affiliate thereof related to employment, compensation, severance, and
equity participation; and

         WHEREAS, SLT, which, upon the Effective Date, will be a wholly-owned
subsidiary of the Company, is a party to this Agreement solely for the purpose
of acknowledging and agreeing to the termination of the agreements referenced in
subsection 6.7(a) hereof;

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

                                    AGREEMENT

         1.       Employment. Employer hereby employs Employee, and Employee
hereby accepts employment with Employer, upon the terms and conditions set forth
in this Agreement.

         2.       Term of Employment. The employment of Employee pursuant to the
terms of this Agreement shall commence as of the Effective Date, and shall
continue until December 31, 2003, unless sooner terminated pursuant to the
provisions hereof (the "Term"), provided, however, that this Agreement, unless
earlier terminated according to the provisions hereof, shall, as of December 1
of each year, beginning with December 1, 2003, be automatically extended for an
additional year.

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         3.       Duties.

                  3.1.  Basic Duties. Subject to the direction and control of
the President and Chief Executive Officer of Employer, Employee shall serve as
the Executive Vice-President of Corporate Operations and shall fulfill all
duties and obligations of such office.

                  3.2.  Other Duties of Employee. In addition to the foregoing,
Employee shall perform such other or different duties related to those set forth
in Paragraph 3.1 as may be assigned to him from time to time by Employer;
provided, however, that any such additional assignment shall be at a level of
responsibility commensurate with that set forth in Paragraph 3.1.

                  3.3.  Time Devoted to Employment. Employee shall devote his
full time to the business of Employer during the term of this Agreement to
fulfill his obligations hereunder.

                  3.4.  Place of Performance of Duties. The services of Employee
shall be performed at Montgomeryville, Pennsylvania.

         4.       Compensation and Method of Payment.

                  4.1   Total Compensation. As compensation under this
Agreement, Employer shall pay and Employee shall accept the following:

                  (a)   For each year of this Agreement, measured from the
                        effective date hereof, base compensation ("Base Salary")
                        of Two Hundred Thirty-Five Thousand Dollars ($235,000).

                  (b)   Employer shall reimburse Employee for all reasonable
                        travel, entertainment and other expenses incurred or
                        paid by Employee in connection with, or related to, the
                        performance of Employee's duties, responsibilities or
                        services under this Agreement, upon presentation by the
                        Employee of documentation, expense statements, vouchers
                        and/or such other supporting information as Employer may
                        request.

                  (c)   Participation in Employer's employee fringe benefit,
                        health insurance, life insurance, key man insurance and
                        other programs in effect from time to time for employees
                        of Employer and its affiliates at comparable levels of
                        responsibility. Participation will be in accordance with
                        any applicable policies adopted by Employer. Employee
                        shall be entitled to vacations, absences for illness,
                        and to similar benefits of employment, and shall be
                        subject to such policies and procedures as may be
                        adopted by Employer.

                  (d)   Employee shall be entitled to an automobile allowance of
                        $1,000 per month.

                  (e)   Employee shall be granted incentive stock options (as
                        such term is defined in Section 422(b) of the Internal
                        Revenue Code of 1986, as amended) to purchase up to
                        225,000 shares of Employer's Common Stock ("Employer
                        Stock Options"), with an exercise price equal to the
                        average closing trading

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                        price for the ten business days following the Effective
                        Date. Of these Employer Stock Options, twenty-five
                        percent (25%) shall be fully vested as of the Effective
                        Date, and twenty-five percent (25%) shall vest on each
                        of the three subsequent anniversaries of the Effective
                        Date, provided, however, that if Employee shall have
                        exercised, at any time before the date on which all of
                        Employee's options granted to him by SLT (the "SLT
                        Options") have expired or have otherwise been
                        terminated, any SLT Options, then the number of Employer
                        Stock Options granted hereunder shall be adjusted to
                        equal the product of 225,000 and the Exercise
                        Percentage. For purposes of this subsection 4.1(e), the
                        Exercise Percentage shall be the number of SLT Options
                        not exercised by Employee divided by the total number of
                        SLT Options.

                  4.2   Payment of Compensation. Employer shall pay the
compensation provided for in Section 4 hereof as follows:

                  (a)   Employer shall pay the base compensation in cash,
                        semi-monthly in twenty-four equal installments or in
                        accordance with Employer's payroll practices for all its
                        employees, but in no event less frequently than monthly.

                  (b)   Employer shall pay in cash the reimbursement of such
                        discretionary expenses provided in Section 4 hereof.

         5.       Termination of Agreement.

                  5.1.  By Notice. This Agreement and the employment of Employee
hereunder, may be terminated by Employee or Employer upon thirty (30) days'
written notice of termination. Notwithstanding anything to the contrary herein,
in the event that Employee shall be terminated for an occurrence described in
Section 5.2(b) which shall be the subject of an effective Disability Policy,
Employee shall not be entitled to receive any further payment from Employer
other than Employer's obligation to pay regular premiums to maintain the
effectiveness of such Disability Policy following the date from which Employee
shall be entitled to receive payment under such Disability Policy.

                  5.2   Other Termination by Employer. Employer may terminate
Employee immediately for any of the reasons set forth below:

                        (a)   For "Cause," immediately upon written notice from
Employer to the Employee. For the purpose of this Section 5.2, "Cause" for
termination shall be deemed to include only (i) the direct or indirect
competition by Employee with Employer (as hereinafter defined in Section 6);
(ii) the conviction of Employee of a felony or an act involving moral turpitude;
(iii) the drug or alcohol abuse by Employee, but only if Employee fails to seek
appropriate counseling or fails to complete a prescribed counseling program; and
(iv) the failure of Employee to comply with any material term of this Agreement.

                        (b)   Upon the Disability of the Employee. As used in
this Agreement, the term "Disability" shall mean the inability of the Employee,
due to a physical or mental disability, for a period of thirty (30) days,
whether or not consecutive, during any sixty (60) day period to perform

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the normal and customary services required of Employee pursuant to this
Agreement. A determination of disability shall be made by a physician
satisfactory to both Employee and the Employer, provided that, if Employee and
the Employer do not agree on a physician, Employee and Employer shall each
select a physician and such two physicians together shall select a third
physician, whose determination as to disability shall be binding on the parties.

                        (c)   Death of Employee.

                  5.3   Other Termination of Employee. Employee may terminate
this Agreement for "Good Reason." "Good Reason" shall mean the following unless
such circumstances are fully corrected within ten (10) days after the Employee
notifies Employer in writing that he intends to terminate his employment for
Good Reason:

                              (i)   the assignment, without the Employee's prior
written consent to another person, of Employee's primary duties that the
Employee was responsible for during the term of this Agreement, or a significant
adverse alteration in the nature or status of the Employee's employment from
those in effect during the term of this Agreement; or

                              (ii)  any reduction by Employer in Employee's base
compensation (other than as agreed to by Employee) in effect on the date hereof
or as the same may be increased after such date;

                  5.4   Effect of Termination.

                        (a)   Termination due to Expiration of Employment
Period. If Employee's employment is terminated due to the expiration of the
Term, Employer shall pay Employee the compensation (including accrued bonuses,
if any) and benefits due to Employee under Section 4 through the last day of
Employee's actual employment hereunder. In addition, Employer shall pay Employee
Two Hundred Thirty-Five Thousand Dollars ($235,000) in twelve (12) monthly
installments.

                        (b)   Termination for Cause. In the event that
Employee's employment is terminated for "Cause" pursuant to Section 5(a),
Employer shall pay Employee the compensation (not including accrued bonuses, if
any) and benefits due to Employee under Section 4 through the last day of
Employee's actual employment hereunder.

                        (c)   Other Termination. In the event that Employee's
employment is terminated by Employer other then under Section 5.2 or Section 7,
Employer shall pay Employee Two Hundred Thirty-Five Thousand Dollars ($235,000)
in twelve (12) monthly installments.

                        (d)   Termination for Death or Disability. If Employee's
employment is terminated by reason of death or disability pursuant to Section
5.2(b) or (c), Employer shall pay the estate of Employee or Employee, as the
case may be, the compensation and benefits under Section 4 which would otherwise
be payable to Employee up to the end of the month in which the termination of
this Agreement for such death or disability occurred.

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                        (e)   Termination for Good Reason. In the event the
Employee's employment is terminated by him for "Good Reason" pursuant to Section
5.3 Employer shall pay the Employee Two Hundred Thirty-Five Thousand Dollars
($235,000) in twelve (12) monthly installments.

                        (f)   Termination by Employee not for Good Reason. In
the event Employee's employment is terminated by him not for "Good Reason", as
defined in Section 5.3, Employer shall pay Employee the compensation (not
including accrued bonus, if any) and benefits due Employee under Section 4
through the last day of Employee's actual employment.

         6.       Property Rights and Obligations of Employee.

                  6.1.  Trade Secrets. For purposes of this Agreement, "trade
secrets" shall include without limitation any and all financial, cost and
pricing information and any and all information contained in any drawings,
designs, plans, proposals, customer lists, records of any kind, data, formulas,
specifications, concepts or ideas, where such information is reasonably related
to the business of Employer, has been divulged to or learned by Employee during
the term of his employment by Employer, and has not previously been publicly
released by duly authorized representatives of Employer or otherwise lawfully
entered the public domain.

                  6.2.  Preservation of Trade Secrets. Employee will preserve as
confidential all trade secrets pertaining to Employer's business that have been
obtained or learned by him by reason of his employment. Employee will not,
without the prior written consent of Employer, either use for his own benefit or
purposes or disclose or permit disclosure to any third parties, either during
the term of his employment hereunder or thereafter (except as required in
fulfilling the duties of his employment), any trade secret connected with the
business of Employer.

                  6.3.  Trade Secrets of Others. Employee agrees that he will
not disclose to Employer or induce Employer to use any trade secrets belonging
to any third party.

                  6.4.  Property of Employer. Employee agrees that all
documents, reports, files, analyses, drawings, designs, tools, equipment, plans
(including, without limitation, marketing and sales plans), proposals, customer
lists, computer software or hardware, and similar materials that are made by him
or come into his possession by reason of and during the term of his employment
with Employer are the property of Employer and shall not be used by him in any
way adverse to Employer's interests. Employee will not allow any such documents
or things, or any copies, reproductions or summaries thereof to be delivered to
or used by any third party without the specific consent of Employer. Employee
agrees to deliver to the Board of Directors of Employer or its designee, upon
demand, and in any event upon the termination of Employee's employment, all of
such documents and things which are in Employee's possession or under his
control.

                  6.5   Non-Competition by Employee.

                  6.5.1 General. Employee agrees during the two years following
the termination of his Employment, not to recruit, engage in passive hiring
efforts, solicit or induce any person or entity who, during such two-year
period, or within one (1) year prior to the termination of Employee's employment
with Employer, was an employee, agent, representative or sales person of
Employer or

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any of its affiliates ("Employer Group") to leave or cease his employment or
other relationship with Employer Group for any reason whatsoever or hire or
engage the services of such person for Employee in any business substantially
similar to or competitive with that in which Employer Group was engaged during
the Employee's employment.

                  6.5.2 Non-Solicitation of Customers. Employee acknowledges
that in the course of his employment, he will learn about Employer Group's
business, services, materials, programs and products and the manner in which
they are developed, marketed, served and provided. Employee knows and
acknowledges that Employer Group has invested considerable time and money in
developing its programs, agreements, offices, representatives, services,
products and marketing techniques and that they are unique and original.
Employee further acknowledges that Employer Group must keep secret all pertinent
information divulged to Employee about Employer Group business concepts, ideas,
programs, plans and processes, so as not to aid Employer Group's competitors.
Accordingly, Employer Group is entitled to the following protection, which
Employee agrees is reasonable:

         Employee agrees that for a period of two (2) years following the
termination of his employment, he will not, on his own behalf or on behalf of
any person, firm, partnership, association, corporation, or other business
organization, entity or enterprise, knowingly solicit, call upon, or initiate
communication or contact with any person or entity or any representative of any
person or entity, with whom Employee had contact during his employment, with a
view to the sale or the providing of any product, equipment or service sold or
provided or under development by Employer Group during the period of two (2)
years immediately preceding the date of Employee's termination. The restrictions
set forth in this section shall apply only to persons or entities with whom
Employee had actual contact during the two (2) years prior to termination of his
employment with a view toward the sale or providing of any product, equipment or
service sold or provided or under development by Employer Group.

                  6.5.3 Non-Competition. Employee acknowledges that he will be a
"high impact" person in Employer Group's business who is in possession of
selective and specialized skills, learning abilities, customer contacts, and
customer information as a result of his relationship with Employer Group and
prior experience, and agrees that Employer Group has a substantial business
interest in the covenant described below. Employee, therefore, agrees for a
period of two (2) years from the termination of his employment, not to, either
directly, whether as an employee, sole proprietor, partner shareholder, joint
venture or the like, in the same or similar capacity in which he worked for
Employer Group, compete with Employer Group in the manufacture, marketing or
sales of excimer laser technology in connection with interventional cardiology,
psoriasis or any other field in which Employer enters or considers entering
into, provided Employee has actual knowledge of such field. The territory in
which this non-competition covenant shall apply will be limited to the area
commensurate with the territory in which Employee marketed, sold or provided
products or services for Employer Group during the two years preceding
termination of Employment.

                  6.6   Survival Provisions and Certain Remedies. Unless
otherwise agreed to in writing between the parties hereto, the provisions of
this Section 6 shall survive the termination of this Agreement. The covenants in
this Section 6 shall be construed as separate covenants and to the extent any
covenant shall be judicially unenforceable, it shall not affect the enforcement
of any other covenant. In the event Employee breaches any of the provisions of
this Section 6, Employee agrees

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that Employer shall be entitled to injunctive relief in addition to any other
remedy to which Employer may be entitled.

                  6.7   Additional Conditions of Employment.

                  (a) Termination of All SLT Agreements. By agreeing to the
terms of this Agreement, Employee represents that he has terminated all
outstanding agreements relating to employment, compensation, equity
participation (including stock option agreements), severance, additional
benefits or otherwise with Surgical Laser Technologies, Inc. (SLT) and any of
its affiliates, including, but not limited to, his Employment Agreement dated
October 5, 1999, his participation in the executive severance program of SLT and
any other severance program maintained by SLT or its affiliates.

                  (b) Execution of Employer Agreements. By executing this
Agreement, Employee agrees to sign Employer's standard agreement of
Confidentiality, Noncompetition and assignment of Invention Rights, a copy of
which is attached hereto and made a part hereof, which includes Employer's
provisions for confidentiality , non-competition and assignment of invention
rights or any other agreement containing these or similar provisions, upon
request by Employer at any time during the term of this Agreement.

         7.       Change of Control.

                  (a)   For the purpose of this Agreement, a "Change of Control"
shall mean:

                        (i)   the acquisition by any individual, entity or group
(within the meaning of Section 13(d)(3) or 14(d)(2) or the Securities Exchange
Act of 1934, and as amended (the "Exchange Act")) (a "Person") of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act)
of 50% or more of either (i) the then outstanding shares of common stock of
Employer (the "Outstanding Company Common Stock") or (ii) the combined voting
power of the then outstanding voting securities of Employer entitled to vote
generally in the election of directors (the "Outstanding Company Voting
Securities"), which acquisition is effected without the consent of at least a
majority in interest of the Board of Directors of Employer as of the date
hereof. Specifically excluded from this definition is the sale of shares by
Employer in any offering of its securities effectuated through any resolution of
a majority of the Board of Directors as constituted from time to time.

                        (ii)  INTENTIONALLY OMITTED;

                        (iii) Approval by the shareholders of Employer of (i) a
complete liquidation or dissolution of Employer or (ii) the sale of other
disposition of all or substantially all of the assets of Employer.

                  (b)   Employer and Employee hereby agree that, if Employee is
in the employ of Employer of the date on which a Change of Control occurs (the
"Change of Control Date"), Employer will continue to employ Employee and
Employee will remain in the employ of Employer for the period commencing on the
Change of Control Date and ending on the expiration of the Term, to exercise
such authority and perform such duties as are commensurate with the authority
being

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exercised and duties being performed by Employee immediately prior to the Change
of Control Date. If after a Change of Control, Employee is requested and, in his
sole and absolute discretion consents to change his principal business location,
Employer will reimburse Employee for his relocation expenses, including without
limitation, moving expenses, temporary living and travel expenses, temporary
living and travel expenses for a time while arranging to move his residence to
the changed location, closing costs, if any, associated with the sale of his
existing residence and the purchase of a replacement residence at the changed
location, plus an additional amount representing a gross-up of any state or
federal taxes payable by Employee as a result of any such reimbursements. If
Employee shall not consent to change his business location, Employee may
continue to provide services required of him hereunder in Montgomeryville,
Pennsylvania and Employer shall continue to maintain an office for Employee at
that location.

                  (c)   During the remaining Term after the Change of Control
Date, Employer will continue to honor the terms of this Agreement, including
payment of the compensation set forth in Section 4 herein.

                  (d)   If during the remaining Term on or after the Change of
Control Date (i) Employee's employment is terminated by Employer other than for
"Cause" (as defined in Section 5.2(a) hereof), or (ii) there shall have occurred
a material reduction in Employee's compensation or employment related benefits,
or a material change in Employee's status, working conditions or management
responsibilities, or a material change in the business objectives or policies of
Employer and Employee voluntarily terminates employment within sixty (60) days
of any such occurrence, or the last in a series of occurrences, the Employee
shall be entitled to receive as a severance payment, subject to the provisions
of subparagraphs (e) and (f) below, a payment over twelve months equal to Two
Hundred Percent (200%) of Employee's current compensation under Sections 4.1
(a), (c), (d) (f), and (g) (the "Compensation Amount").

                  (e)   The amounts payable to Employee under any other
compensation arrangement maintained by Employer which became payable, after
payment of the Compensation Amount provided for in paragraph (d), upon or as a
result of the exercise by Employee of rights which are contingent on a Change of
Control (and would be considered a "parachute payment" under Internal Revenue
Code 280G of the Internal Revenue Code of 1986, as amended (the "Code"), shall
be reduced to the extent necessary so that such amounts, when added to such
lump-sum, do not exceed 100% of the Employee's "base amount" as defined in Code
Section 280G(b)(3)(A). Any such excess amount shall be deferred and paid in the
next tax year.

         8.       General Provisions.

                  8.1.  Notices. Any notices or other communications required or
permitted to be given hereunder shall be given sufficiently only if in writing
and served personally or sent by certified mail, postage prepaid and return
receipt requested, addressed as follows:

         If to Employer:                    PhotoMedex, Inc.
                                            5 Radnor Corporate Center, Suite 470
                                            Radnor, Pennsylvania  19087
                                            Fax: (610) 971-9303

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         If to Employee:                    Michael R. Stewart
                                            3930 Ruckman Way
                                            Doylestown, PA 18901

However, either party may change his/its address for purposes of this Agreement
by giving written notice of such change to the other party in accordance with
this Paragraph 7.1. Notices delivered personally shall be deemed effective as of
the day delivered and notices delivered by mail shall be deemed effective as of
three days after mailing (excluding weekends and federal holidays).

                  8.2.  Choice of Law and Forum. Except as expressly provided
otherwise in this Agreement, this Agreement shall be governed by and construed
in accordance with the laws of the State of Delaware, and both parties consent
to the jurisdiction of the courts of the State of Delaware with respect thereto.

                  8.3.  Entire Agreement; Modification and Waiver. This
Agreement supersedes any and all other agreements, whether oral or in writing,
between the parties hereto with respect to the employment of Employee by
Employer and contains all covenants and agreements between the parties relating
to such employment in any manner whatsoever. Each party to this Agreement
acknowledges that no representations, inducements, promises, or agreements, oral
or written, have been made by any party, or anyone acting on behalf of any
party, which are not embodied herein, and that no other agreement, statement, or
promise not contained in this Agreement shall be valid or binding. Any
modification of this Agreement shall be effective only if it is in writing
signed by the party to be charged. No waiver of any of the provisions of this
Agreement shall be deemed, or shall constitute, a waiver of any other provision,
whether or not similar, nor shall any waiver constitute a continuing waiver. No
waiver shall be binding unless executed in writing by the party making the
waiver.

                  8.4.  Assignment. Because of the personal nature of the
services to be rendered hereunder, this Agreement may not be assigned in whole
or in part by Employee without the prior written consent of Employer. However,
subject to the foregoing limitation, this Agreement shall be binding on, and
shall inure to the benefit of, the parties hereto and their respective heirs,
legatees, executors, administrators, legal representatives, successors and
assigns.

                  8.5.  Severability. If for any reason whatsoever, any one or
more of the provisions of this Agreement shall be held or deemed to be
inoperative, unenforceable, or invalid as applied to any particular case or in
all cases, such circumstances shall not have the effect of rendering any such
provision inoperative, unenforceable, or invalid in any other case or of
rendering any of the other provisions of this Agreement inoperative,
unenforceable or invalid.

                  8.6   Corporate Authority. Employer represents and warrants as
of the date hereof that Employer's execution and delivery of this Agreement to
Employee and the carrying out of the provisions hereof have been duly authorized
by Employer's Board of Directors and authorized by Employer's shareholders and
further represents and warrants that neither the execution and delivery of this
Agreement, nor the compliance with the terms and provisions thereof by Employer
will result in the breach of any state regulation, administrative or court
order, nor will such compliance conflict with, or result in the breach of, any
of the terms or conditions of Employer's Certificate of

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Incorporation or Bylaws, as amended, or any agreement or other instrument to
which Employer is a party, or by which Employer is or may be bound, or
constitute an event of default thereunder, or with the lapse of time or the
giving of notice or both constitute an event of default thereunder.

                  8.7.  Attorneys' Fees. In any action at law or in equity to
enforce or construe any provisions or rights under this Agreement, the
unsuccessful party or parties to such litigation, as determined by the courts
pursuant to a final judgment or decree, shall pay the successful party or
parties all costs, expenses, and reasonable attorneys' fees incurred by such
successful party or parties (including, without limitation, such costs,
expenses, and fees on any appeals), and if such successful party or parties
shall recover judgment in any such action or proceedings, such costs, expenses,
and attorneys' fees shall be included as part of such judgment.

                  8.8.  Counterparts. This Agreement may be executed
simultaneously in one or more counterparts, each of, which shall be deemed an
original, but all of which together shall constitute one and the same
instrument.

                  8.9.  Headings and Captions. Headings and captions are
included for purposes of convenience only and are not a part hereof.

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                  IN WITNESS WHEREOF, the parties hereto have executed this
Agreement effective as of the day and year first written above at Radnor,
Pennsylvania.

                                    "Employer"

                                    PHOTOMEDEX, INC.

                                    By: /s/ Dennis McGrath
                                        ---------------------------------------
                                        Dennis McGrath, Chief Financial Officer

                                    "Employee"

                                        /s/ Michael R. Stewart
                                        ----------------------------------------
                                        Michael R. Stewart

         SLT hereby acknowledges and agrees that as of the closing date of the
Merger, all of the agreements referenced in Section 6.7(a) hereof are terminated
and that neither party to such agreements retains any rights thereunder.

Surgical Laser Technologies, Inc.

By : /s/ Davis Woodward
     -------------------

                                       11Employment Agreement dated as of December 1, 2002, between the Company & Largey.

 
EXHIBIT
10.50 
EMPLOYMENT AGREEMENT 
 
This Employment Agreement is executed by JOSEPH A. LARGEY (“Executive”), who resides at the
address listed at the end of this Agreement, and SRI/SURGICAL EXPRESS, INC. (the “Company”), a Florida corporation with its principal executive office at 12425 Racetrack Road, Tampa, Florida 33626, to record their agreement
regarding employment of Executive by the Company and the payment by the Company to Executive of severance compensation benefits upon the occurrence of certain events. 
 
The parties agree as follows: 
 
1.     Definitions. As used in this Agreement, the capitalized terms
defined below have the respective meanings ascribed to them: 
 
“Agreement” means this Employment Agreement, as originally executed by Executive and the Company and as subsequently amended or modified by them in accordance with its terms. 
 
“Annual Salary” means the annualized, base
salary payable to Executive by the Company as of any particular date, and excludes all other cash and non-cash compensation paid or payable to Executive. 
 
“Board” means the Board of Directors of the Company. 
 
“Cause” means a termination of Executive’s employment that is the result of (a)
Executive’s indictment, conviction, or plea of no contest for a felony, (b) Executive’s violation of this Agreement, or (c) Executive’s failure substantially to perform his duties with the Company (other than any such failure
resulting from Executive’s incapacity due to physical and mental illness, as determined by a physician selected by the Company, with the written approval of the Executive, such approval not to be unreasonably withheld), after a written demand
for substantial performance is delivered to Executive by the Board. 
 
“Company” means SRI/Surgical Express, Inc., a Florida corporation and a party to this Agreement, and includes its assignees and successors (by operation of law or otherwise). 
 
“Disability” means Executive’s
incapacity due to physical or mental illness that causes him to be absent from or unfit for the full-time performance of his duties with the Company for four consecutive months or a total of six months during any 12 month period. Any question
regarding the existence of Executive’s Disability on which Executive and the Company cannot agree will be determined by a qualified independent physician selected by the Company, with the prior written approval of the Executive, such approval
not to be unreasonably withheld, which will be final and conclusive for all purposes of this Agreement. 
 
“Effective Date” means December 1, 2002. 

 
“Executive” means the officer of the Company who is a party to this Agreement. 
 
“Involuntary Termination” means termination of Executive’s employment with the Company by the Company for any reason
other than for Cause, death, or Disability. 
 
“Severance Date” means the effective date of Executive’s termination of employment with the Company by reason of an Involuntary Termination. 
 
In addition, as used in this Agreement, (a) the word “including” is always without limitation, (b) the word
“days” refers to calendar days, including Saturdays, Sundays, and holidays, (c) words in the singular number include words of the plural number and vice versa, and (d) the word “person” includes, in addition to a natural person,
a group, trust, joint venture, limited liability company, unincorporated organization, government, public body or authority, and any governmental body, agency, authority, department, or subdivision, whether domestic or foreign or local, state,
regional, or national. 
 
2.     Employment. Subject to the terms and conditions of this Agreement, the Company shall employ Executive as its Chief Executive Officer, and Executive shall serve in the employ of the
Company in that capacity. Subject to the provisions of Section 8 regarding severance compensation on an Involuntary Termination, Executive’s employment with and compensation by the Company are “at will” and may be terminated with or
without cause, at any time, at the option of the Company or Executive. The terms of this Agreement do not create either an express or implied contract of employment with the Company for any particular period of time. 
 
3.     Duties.
Executive shall be responsible for such duties as are reasonable for an employee in his capacity and as from time to time are assigned to him by the Board. Executive shall report directly to the Board. At all times while employed by the Company,
Executive shall serve and promote the business interests of the Company in good faith, with his full, best, and dedicated efforts, with fidelity and loyalty, in compliance with all rules, policies, practices, directives, and procedures of the
Company. Executive faithfully and industriously shall devote normal working hours (subject to sick leave, vacation time, and outside endeavors provided for and permitted by the terms of this Agreement) to the good faith performance of his duties.

 
4.    
Compensation and Related Matters. 
 
(a)     Annual Compensation. 
 
(i)     Base Salary. For all services rendered to it by Executive, the Company shall pay to Executive a base salary at an annual rate of $300,000, beginning on the Effective
Date, payable in arrears every two weeks in 26 substantially equal, consecutive installments in accordance with the Company’s payroll practices in effect from time to time. The Board or its Compensation Committee will review the
Executive’s salary for a potential increase at least once each year. 
 

2 

 
(ii)     Management Incentive Bonus. Beginning with calendar year 2003, Executive will be eligible to participate in the Company’s management incentive bonus plan pursuant to which the Company pays
performance bonus compensation to its executives and employees based on personal and Company performance ratings for the applicable year, each as established by the Board or its Compensation Committee. Depending on his and the Company’s
performance, Executive will be eligible to receive a bonus of up to $100,000 for the Company’s calendar year 2003. 
 
(b)     Stock Options. As of the Effective Date, the Company shall grant to Executive a
time-vested stock option to acquire one hundred fifty thousand (150,000) shares of the Company’s Shares (the “Option Shares”) under the Company’s 1998 Stock Option Plan (the “Option Plan”) with an exercise price equal
to the fair market value (as defined under the Option Plan) of the Shares on the Effective Date. The option shall vest and become exercisable with respect to one-fifth (1/5) of the Option Shares on each of the first five anniversaries of the
Effective Date, provided Executive has remained continuously employed by the Company until the applicable date, and otherwise will have terms set forth in the Option Plan and the Company’s standard stock option agreement. The Option Shares will
be incentive stock options to the extent permitted by the Option Plan and applicable federal income tax provisions. 
 
(c)     Other Benefits. Executive shall be entitled to participate in all other employee
benefit plans, programs and arrangements of the Company that are from time to time in effect and that apply to the Company’s employees generally or to its executive officers, as the case may be, subject to, and on a basis consistent with, the
terms, conditions and overall administration of such plans, programs and arrangements. Executive shall be entitled to participate in and receive any fringe benefits and perquisites that may become available to the Company’s executive employees.

 
(d)    
Indemnification Agreement. Concurrently with entering into this Agreement, the Company shall enter into an Indemnification Agreement with Executive in substantially the form attached hereto as Exhibit A. 
 
(e)     D&O
Insurance. During the term of this Agreement and for an additional five years following the expiration of the term hereof (the “Coverage Period”), Executive shall be covered (for both liability and representation) at all times as an
“Officer” or “Executive Officer” or the equivalent thereof (“D&O Coverage”) under the Company’s directors and officers insurance policy in effect on the Effective Date and any subsequent renewals, extensions or
replacements thereof (the “Existing Policy”); provided, however, that, if the Company ceases, at any time during the Coverage Period, to maintain D&O Coverage on Executive for 90 continuous days (and Executive has at least 60 days
before the end of that period notified the Company of the absence of D&O Coverage, specifically referencing this Section), then Executive shall have the right, in his sole and absolute discretion, to terminate his employment with the Company,
and such termination of employment shall be treated, for all purposes of this Agreement, as an Involuntary Termination by the Company, except that salary and benefits will be payable for only four months following the Severance Date. Executive
acknowledges that the terms of the D&O Coverage might change during the Coverage Period. 
 

3 

 
(f)     Relocation Expenses. The Company shall pay Executive up to $10,000 to cover incidental expenses incurred in connection with his relocation to Tampa that are evidenced by a receipt submitted to the
Company. In addition, the Company shall reimburse Executive for (i) all reasonable costs incurred by Executive in connection with Executive moving his family and personal belongings from Colorado Springs, Colorado to the Tampa, Florida area, subject
to and in accordance with the Company’s policy governing relocations and (ii) health insurance premiums for Executive and his family during the first 90 days of Executive’s employment with the Company. The Company shall also pay all
customary real estate fees incurred in connection with Executive selling his principal residence in Colorado Springs, Colorado and closing costs, loan fees and Florida excise taxes incurred in connection with Executive purchasing a principal
residence in the Tampa, Florida area. For up to seven (7) months following the Effective Date (or any shorter time period until Executive purchases a principal residence in Tampa), the Company shall reimburse Executive for: (i) reasonable apartment
rental fees or hotel room charges incurred by Executive in occupying an apartment or hotel room in the Tampa, Florida area and (ii) one round trip commercial airline ticket every two weeks for travel between Colorado and Tampa, Florida by Executive
or Executive’s spouse. Executive shall establish his principal residence in Tampa, Florida on or before April 1, 2003. 
 
(g)     Expenses. The Company shall reimburse Executive for all reasonable and customary
expenses incurred by Executive in performing his duties under this Agreement, including all expenses of travel and accommodations while away from home on business or at the request of and in the service of the Company; provided that the expenses are
incurred and accounted for in accordance with the policies and procedures established by the Company. 
 
(h)     Legal Fees. The Company shall reimburse Executive for up to $2,000 of expenses
(including reasonable fees of legal counsel and related out of pocket expenses) incurred by Executive with the negotiation, documentation, execution and delivery of this Agreement. 
 
5.     Competition and Trade Secrets. 
 
Executive acknowledges that in the course of his employment by
the Company he will obtain knowledge of confidential information regarding the Company’s business and affairs and develop relationships with its employees, customers, and suppliers. Executive covenants and agrees that: 
 
(a)     Executive,
directly or indirectly, in any capacity, either for himself, or on behalf of any corporation, partnership, joint venture, business trust, or other person or entity, shall not: 
 
(i)     during the term of this Agreement, for any additional period of
time that Executive continues to be an employee of the Company, and for a period of two (2) years immediately after Executive’s employment with the Company ceases for any reason (whether or not voluntary), (A) engage in any business, or acquire
an interest in any business, or become affiliated as an agent, employee, partner, consultant, director, officer, stockholder, or proprietor of any business, that competes with the Company’s product offerings (and planned product offerings) at
the time of termination, in the United States or any other place in which the Company does business; (B) influence or attempt to  
 

4 

influence any agent, customer, supplier, or distributor who has, or had during the 18
months preceding the date of employment termination, a business relationship with the Company, to cease or adversely alter its business relationship with the Company; or (C) influence or attempt to influence any employee of the Company to terminate
his employment with the Company for any purpose or accept employment with another person; and 
 
(ii)     at any time while this Agreement remains in effect and thereafter, divulge, disclose, or
communicate, for any reason or in any manner, to any person or entity, any information (written or otherwise) concerning trade secrets or other confidential information relating to the Company’s business or financial affairs, including the name
of any customer or supplier or the business plans, methods, processes, and operating procedures of the Company. 
 
(b)     Executive makes the preceding covenants in consideration for, and as a necessary condition of,
Executive’s employment by the Company. The preceding covenants are independent of any obligation of the Company to Executive, including any obligations of the Company to Executive under this Agreement or arising from any aspect of the
employment relationship, and are not subject to any set-off, defense, deduction, or counterclaim based on any claim Executive might have against the Company. Executive stipulates that the duration and geographic scope of these restrictions are
reasonable limitations necessary to protect the Company’s business interests, that the restrictions do not unduly oppress Executive’s occupational future or opportunities, and that Executive has been adequately compensated for these
restrictions. The “prohibited period” of the obligation set forth in paragraph (a)(i) above will be extended by any period of time during which Executive is in breach of the obligation. 
 
(c)     Each provision of
the preceding covenants should be construed and interpreted so that it is valid and enforceable under applicable law. However, if a court of competent jurisdiction determines that the duration, geographical area, or proscribed activities of the
restrictions under this Agreement would cause strict application of those restrictions to be invalid or unenforceable in a particular jurisdiction, the restrictions automatically will be reformed to shorten their duration, diminish their
geographical area, or confine their proscribed activities to the extent necessary (but only to that extent) to make the restrictions valid and enforceable. 
 
6.     Remedy at Law Insufficient. Executive acknowledges that damages at law will be an insufficient
remedy if Executive violates the terms of Section 5, and that the Company would suffer a decrease in value and irreparable damage as a result of such violation. Accordingly, on a violation of any of those covenants, the Company, without excluding or
limiting any other available remedy, shall be entitled to the following remedies: 
 
(a)     Upon posting a bond of up to $10,000 and filing with a court of competent jurisdiction an
appropriate pleading and affidavit specifying each obligation breached by Executive, automatic entry by a court having jurisdiction of an order granting an injunction or specific performance compelling Executive to comply with that obligation,
without proof of monetary damage or an inadequate remedy at law; 
 

5 

 
(b) The recovery from Executive of all profit, remuneration, or other consideration that Executive gains from breaching the covenant and all damages that the Company suffers as a result of the breach; and 
 
(c) Reimbursement of all costs and expenses
incurred by the Company in enforcing those obligations or otherwise defending or prosecuting any litigation arising out of Executive’s obligations, including premiums for bonds, fees for experts and investigators, and legal fees, costs, and
expenses incurred before a lawsuit is filed and in trial, appellate, bankruptcy, and judgment-execution proceedings. 
 
The foregoing remedies are cumulative to all other remedies afforded by law or in equity, and the Company may exercise any such remedy concurrently,
independently, or successively. 
 
7.     Inventions or Improvements. Any inventions, discoveries, know-how, or improvements, which Executive may conceive, make, invent, or develop during his employment by the Company,
connected with Executive’s work or related in any way to the Company’s business or future business, shall be the absolute property of the Company and shall be promptly disclosed to the Company by the Executive. Executive shall assign to
the Company the rights to such inventions and improvements and any patent applications filed or granted. 
 
8.     Severance Agreement. 
 
(a)     Term. The agreements in this Section 8 shall be in
effect for a term beginning on the Effective Date and ending automatically, without further obligation, when Executive ceases to be employed by the Company for any reason, other than an Involuntary Termination. 
 
(b)     Involuntary
Termination. 
 
(i)     Severance Payment. In the event of Executive’s Involuntary Termination, the Company shall pay to Executive (A) within 15 days after the termination of Executive’s employment with the
Company, (1) the full amount of any earned but unpaid Annual Salary through the Severance Date, and (2) the full amount of any accrued and unpaid expenses reimbursements to which Executive is legally entitled (Executive, or Executive’s legal
representative on Executive’s behalf, shall have 10 days after the date of termination of Executive’s employment to submit to the Company properly completed expense reimbursement forms for reimbursable business expenses incurred by
Executive through and including the Severance Date), and (B) at such time as Executive would have been entitled to receive his Management Incentive Bonus for the year in which such Involuntary Termination occurs if Executive had been employed on the
last day of such year, a pro rated portion of Executive’s Management Incentive Bonus for such year (the pro rated portion shall be equal to the aggregate amount of such Management Incentive Bonus for such year (determined by the Board of
Directors, acting in good faith) multiplied by a fraction (a) the numerator of which is the number of days elapsed during such year through and including the Severance Date and (b) the denominator of which is 365). In addition, the Company shall
continue to (A) pay to the Executive his Annual Salary as scheduled, for a period of one year following the Severance Date, as his sole severance compensation benefit, and (B) fully fund all health 
 

6 

 
insurance
benefits provided to Executive under Section 4(c) hereof (at the levels in effect on the Severance Date) for a period of one year following the Severance Date. 
 
(ii)     No Mitigation or Offset. Executive’s right to the
foregoing severance compensation will be conditioned on Executive’s execution of a release in favor of the Company in a form reasonably satisfactory to the Company and his strict compliance with Sections 5 and 7 of this Agreement. Executive
does not have any duty to seek or obtain other employment after the termination of Executive’s employment with the Company, whether voluntary or involuntary. Moreover, the Company shall pay to Executive the foregoing severance compensation
benefits without reduction for any compensation that Executive earns or could earn from other employment. 
 
9.     Legal Matters. The validity, construction, enforcement, and interpretation of this Agreement are
governed by the laws of the State of Florida and the United States of America, excluding the laws of those jurisdictions pertaining to the resolution of conflicts with laws of other jurisdictions. If any dispute arises between Executive and the
Company with respect to this Agreement, either party may elect (but is not obligated) to submit the dispute to arbitration before a panel of arbitrators in accordance with the Florida Arbitration Code by giving the other party a notice of
arbitration in accordance with Section 8 of this Agreement. If a party elects to arbitrate a dispute, arbitration will be the sole and exclusive method of resolving the dispute, the other party must arbitrate the dispute, and each party will be
barred from filing a lawsuit concerning the subject matter of the arbitration, except to obtain an equitable remedy. 
 
The arbitration panel will consist of three arbitrators, with the first arbitrator selected by the Company, the second selected by
Executive, and the third neutral arbitrator selected by agreement of the first two arbitrators. Each party shall select an arbitrator and notify the other party of the selection within 30 days after the effective date of the notice of arbitration
and the two arbitrators selected by the parties shall select the third arbitrator within 45 days after the effective date of the notice of arbitration. A party who fails to select an arbitrator within the prescribed 30-day period waives the right to
select an arbitrator or to have an additional, neutral arbitrator selected by the arbitrator selected by the other party, and the arbitrator chosen by the other party will constitute the “arbitration panel” for purposes of this Agreement.

 
Every arbitrator must be independent (not a
relative of Executive or an officer, director, employee, or shareholder of the Company, the Company or any Subsidiary) without any economic or financial interest of any kind in the outcome of the arbitration. Each arbitrator’s conduct will be
governed by the Code of Ethics for Arbitrators in Commercial Disputes (1986) that has been approved and recommended by the American Bar Association and the American Arbitration Association. 
 
Within 120 days after the effective date of the notice of
arbitration, the arbitration panel shall convene a hearing for the dispute to be held on such date and at such time and place in Tampa, Florida, as the arbitration panel designates upon 60 days’ advance notice to Executive and the Company. The
arbitration panel shall render its decision within 30 days after the conclusion of the hearing. The decision of the arbitration panel will be binding and conclusive as to Executive and the Company and, upon the pleading of either party, any court
having 
 

7 

 
jurisdiction may enter a
judgment of any award rendered in the arbitration, which may include an award of damages. The arbitration panel shall hear and decide the dispute based on the evidence produced, notwithstanding the failure or refusal to appear by a party who has
been duly notified of the date, time, and place of the hearing. 
 
Executive and the Company (a) consent to the personal jurisdiction of the state and federal courts having jurisdiction over Hillsborough County, Florida, (b) stipulate that the proper, exclusive, and convenient venue for any legal
proceeding arising out of this Agreement is Hillsborough County, Florida, and (c) waive any defense, whether asserted by a motion or pleading, that Hillsborough County, Florida, is an improper or inconvenient venue. EXECUTIVE KNOWINGLY, VOLUNTARILY,
AND INTENTIONALLY WAIVES THE RIGHT TO A JURY TRIAL IN ANY LAWSUIT BETWEEN EXECUTIVE AND THE COMPANY WITH RESPECT TO THIS AGREEMENT. 
 
In any mediation, arbitration, or legal proceeding arising out of this Agreement, the losing party shall reimburse the prevailing party,
on demand, for all costs incurred by the prevailing party in enforcing, defending, or prosecuting any claim arising out of this Agreement, including all fees, costs, and expenses of agents, experts, attorneys, witnesses, arbitrators, and supersedes
bonds, whether incurred before or after demand or commencement of legal or arbitration proceedings, and whether incurred pursuant to trial, appellate, mediation, arbitration, bankruptcy, administrative, or judgment-execution proceedings.

 
10.    
Notices. Every notice, demand, or consent required or permitted under this Agreement will be valid only if it is in writing and delivered personally or by telex, telecopy, telegram, cablegram, commercial courier, or first-class, postage
prepaid, United States mail (whether or not certified or registered and regardless of whether a return receipt is requested or received by the sender), and addressed by the sender to the intended recipient at the address set forth in the preamble of
this Agreement (with respect to the Company, addressed to the Chief Financial Officer, with a copy to Hill, Ward & Henderson, P.A., 101 East Kennedy Boulevard, Suite 3700, Tampa, Florida 33602, Attn: David S. Felman, or other current corporate
counsel to the Company) or to such other address as the intended recipient has previously designated to the sender by notice given in accordance with this section. A validly given notice, demand, or consent will be effective on the earlier of its
receipt, if delivered personally or by telex, telecopy, telegram, cablegram, or commercial courier, or on the third day after it is postmarked by the United States Postal Service, if delivered by first class, postage prepaid, United States mail.

 
11.     Waiver;
Modification; Severability. A waiver, amendment, cancellation, or modification of this Agreement will be valid and effective only if it is in writing and signed by or on behalf of both parties to this Agreement. No delay or course of dealing
by a party to this Agreement in exercising any right, power, or remedy under this Agreement will operate as a waiver of any right, power, or remedy of that party, except to the extent expressly manifested in writing by that party. The failure at any
time of a party to require performance by the other party of any provision of this Agreement will in no way affect the party’s right thereafter to enforce the provision or this Agreement. In addition, the waiver by either party of a breach of
any provision of this Agreement will not constitute a waiver of any succeeding breach of the provision or a waiver of the provision itself. Whenever possible, each provision of this 
 

8 

 
Agreement should be construed
and interpreted so that it is valid and enforceable under applicable law. 
 
12.     Miscellaneous. Headings preceding the text of the sections of this Agreement are solely for convenient reference and neither constitutes a part of this Agreement nor affects its
meaning, interpretation or effect. This Agreement records the final, complete, and exclusive understanding between the parties regarding the subject matter of it and supersedes any prior or contemporaneous agreement, understanding, or
representation, oral or written, by either of them. Nothing in this Agreement, whether express or implied, is intended or should be construed to confer upon, or to grant to, any person, except the Company, Executive and their respective heirs,
assignees, and successors, any claim, right, remedy, or privilege under, or because of, this Agreement or any provision of it. This Agreement is binding on every assignee and successor of the Company. The parties may execute this Agreement in
counterparts. Each executed counterpart will constitute an original document, and all executed counterparts, together, will constitute the same agreement. This Agreement will become effective from and as of the Effective Date. 
 
EXECUTED: as of December 1, 2002 in Tampa, Florida 
 
 

	 WITNESSES:
	 	 	 	 SRI/SURGICAL EXPRESS, INC.,

	 	 	 	 	 	 	 a Florida corporation

	
	
	 	 	 	 By:
	 	 /s/     N. John Simmons, Jr.

	
	
	 	 	 	 Title:
	 	 Chairman of the Board

	
	 	 	 	 	 “EXECUTIVE”

	
	 WITNESSES:
	 	 	 	 /s/     Joseph A. Largey

	 	 	 	 	 (Signature)

	
	
	 	 	 	 Joseph A. Largey

	 	 	 	 	 (Printed Name)

	
	
	 	 	 	 4865 Longwood Point

	 	 	 	 	 (Street Address)

	
	 	 	 	 	 Colorado Springs, CO 80906

	 	 	 	 	 (City, State and Zip Code)

 
 

9

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