Document:

CONSULTING AGREEMENT

         This  Consulting  Agreement  is made as of April 1, 2000 by and between
Cyndel & Co., Inc.  ("Consultant")  and Paradigm Medical  Industries,  Inc. (the
"Company").

         1. Services
         -----------

         Consultant shall provide advice and opinions to the Company on subjects
including  but  not  necessarily  limited  to  management  issues,  mergers  and
acquisitions.  Consultant will determine in its sole discretion  time, place and
manner  of the  services  it  renders  as well  as the  overall  amount  of time
Consultant expends in providing  services under this Agreement.  Such advice and
opinions will most often be given orally.  However, the Company may occasionally
and reasonably request that advice or opinions be provided in writing.

         2. Services Non-Exclusive
         -------------------------

         Nothing in this  Agreement  shall be  construed  to prevent or restrict
Consultant  from  providing  either  similar or  dissimilar  services to or from
holding positions with any other corporation, organization or entity.

         3. Independent Contractor Status
         --------------------------------

         Consultant's   relationship   to  the  Company  is  as  an  independent
contractor.  The parties  acknowledge  that  Consultant has no power to bind the
Company.

         4. Compensation and Expenses
         ----------------------------

         The  Company  shall  pay   Consultant  an  annual   consulting  fee  of
$200,000.00  during the term of this  Agreement.  This fee will be paid in equal
monthly  installments on the first of each month,  commencing April 1, 2000. The
Consultant's  out-of-pocket  expenses shall be reimbursed if approved in advance
by the Company and upon reasonable substantiation being provided thereafter.

         5. Additional Compensation
         --------------------------

         In addition to the compensation provided in Section 4 above, Consultant
shall be entitled to payment or other remuneration in the event it brings to the
Company a candidate for merger, acquisition,  joint venture or other combination
or relationship  and the Company enters into a business  relationship  with such
entity.  Consultant and Company shall mutually agree to such compensation at the
time the Company decides to pursue a business relationship with such entity.

<PAGE>

         6. Term and Termination
         -----------------------

                  (a)  Term
                  ---------

         The term of this  Agreement  shall  commence on April 1, 2000 and shall
terminate on March 31, 2001.

                  (b)  Renewal
                  ------------

         This Agreement shall automatically renew for an additional,  successive
one-year term unless either party  delivers to the other on or before  January 1
of the  contract  year then in effect  notice of its intent  not to renew.  This
Agreement may be renewed in such manner for up to two additional years following
March 31, 2001.

                  (c)  Early Termination
                  ----------------------

         This  Agreement may be terminated  prior to the end of the above stated
term only as follows:  (1) by Consultant  upon 30 days advance written notice to
the  Company;  or (2) by the  Company,  following 30 days from the date it gives
written  notice  to the  Consultant  of a  material  breach  of this  Agreement,
specifying the  circumstances  of the breach,  and after which 30-day period the
breach has not been reasonably or substantially cured.

         3. Guarantee
         ------------

         The Company agrees to guarantee  Consultant's  compensation provided in
Section 4 of this Agreement  except where the Company  terminates this Agreement
in accordance  with Section 6(c).  This guarantee shall be due and payable under
all  circumstances or conditions  whether within or beyond the Company's control
and shall  include  but not be limited  to any  merger,  acquisition,  change in
control, cessation of business or dissolution of the Company.

         4. Assignment
         -------------

         The  Company may assign its rights or  delegate  its duties  under this
Agreement to any entity  provided,  however,  that no such  assignment  shall be
permitted without Consultant's prior written consent if it would make any change
in any of either party's rights or duties under this  Agreement,  or if it would
create a material  risk that  Consultant  might not receive all of the  benefits
promised  under  this  Agreement.  Except  as  otherwise  provided  herein,  any
attempted assignment in contravention of this Section shall be void.

         5. Confidential Information
         ---------------------------

<PAGE>

         Consultant  understands  that it may be given  access  to  confidential
proprietary information of the Company ("Confidential Information").  Consultant
agrees to use or  disclose  Confidential  Information  only for the  purpose  of
rendering its Consultant services under this Agreement. Following termination of
this Agreement,  Consultant will not disclose Confidential  Information until it
becomes  publicly known through no act of Consultant.  Confidential  Information
consists of  information  designated in writing to the Consultant by the Company
as confidential.

         6. Indemnification
         ------------------

         In the event that any claims are made against  Consultant  arising from
or relating to this Agreement or the services  Consultant  renders under it, the
Company  agrees to  indemnify  Consultant  against all costs,  attorney's  fees,
fines, judgment, liability or settlement expense incurred thereby.

         7. Controversies
         ----------------

         The  parties  agree  that  any and all  controversies  arising  from or
relating to this Agreement or  Consultant's  services or  relationship  with the
Company  shall be litigated and resolved in the 2nd Judicial  District  Court of
Nassau  County,  New York,  and the  parties  consent  to the  jurisdiction  and
appropriateness  of  venue  of  this  court.  This  Agreement  and  any  and all
controversies  between the parties shall in all respects be governed by the laws
of the State of New York. The prevailing party to any controversy  shall receive
its costs of suit and reasonable attorney's fees.

         8. Notices
         ----------

         Any and all notices to either party shall be delivered personally or by
United States mail, first class postage  prepaid,  certified or registered mail,
return receipt requested, addressed as follows:

                                            To the Company:

                                            Paradigm Medical Industries, Inc.
                                            2355 South 1070 West
                                            Salt Lake City, UT 84119
ATTN: President and Chief Executive Officer

<PAGE>

                                            To Consultant:

                                            Cyndel & Co., Inc.
                                            26 Ludlam Avenue
                                            Bayville, NY 11709
ATTN: Patrick M. Kolenik, President

or to such other place as the parties may from time to time  designate by notice
to the other party. If delivered personally, such notice shall be effective upon
delivery in the manner specified in this paragraph. If mailed in accordance with
this  paragraph,  such notice shall be effective  upon the date indicated on the
return receipt.

         9. Severability
         ---------------

         If any clause,  sentence,  provision or other portion of this Agreement
is or becomes illegal, null, void or unenforceable for any reason, the remaining
portions shall remain in force and effect.

         10. Counterparts
         ----------------

         This  Agreement  may be executed in a number of  counterparts,  each of
which  executed  counterparts  shall  be  deemed  an  original,   and  all  such
counterparts shall together constitute one and the same Agreement.

         11. Entire Agreement
         --------------------

         This Agreement supersedes any and all other agreements,  either oral or
in  writing,  between  the parties  hereto  with  respect to the subject  matter
hereof,  and contains the entire agreement  between the parties relating to said
subject  matter.  This Agreement may not be modified  except by an instrument in
writing executed by the parties hereto.

         IN  WITNESS  WHEREOF,  the  parties  signify  their  understanding  and
agreement to the foregoing terms and conditions of this Agreement.

Cyndel & Co., Inc.:                           By:/s/ Patrick M. Kolenik
                                              -------------------------

                                              Its: President
                                              --------------

<PAGE>

Paradigm Medical Industries, Inc.             By: Thomas F. Motter
                                              --------------------

                                              Its: CEO
                                              --------

<PAGE>STOCK PURCHASE AGREEMENT

                            dated as of June 9, 2000

                                  by and among

                       PARADIGM MEDICAL INDUSTRIES, INC.,

                            OCULAR BLOOD FLOW, LTD.,

                                       and

                                 MALCOLM REDMAN,
                             the sole shareholder of
                             Ocular Blood Flow, Ltd.

<PAGE>

                                TABLE OF CONTENTS
<TABLE>
<CAPTION>

                                                                                                               Page
                                                                                                               ----
<S>                                                                                                              <C>

ARTICLE I - PURCHASE AND SALES OF SHARES........................................................................  1
       1.1       Sale and Purchase of the Shares ...............................................................  1
       1.2       Purchase Consideration.........................................................................  1
       1.3       Delivery of Shares.............................................................................  2

ARTICLE II - CLOSING............................................................................................. 2
       2.1       Closing........................................................................................  2

ARTICLE III - REPRESENTATIONS AND WARRANTIES OF OBF
                        AND REDMAN............................................................................... 2
       3.1       Organization, Good Standing and Power........................................................... 2
       3.2       Capital Structure .............................................................................  3
       3.3       Authority .....................................................................................  3
       3.4       Dividends, Stock Purchases, Etc. ..............................................................  4
       3.5       Financial Statements ........................................................................... 4
       3.6       Compliance With Law ...........................................................................  4
       3.7       No Defaults .................................................................................... 5
       3.8       Litigation ....................................................................................  5
       3.9       No Material Adverse Change ..................................................................... 5
       3.10      Absence of Undisclosed Liabilities...............................................................7
       3.11      Information Supplied.............................................................................7
       3.12      Certain Agreements ..............................................................................7
       3.13      Plans; Benefits; Employment Claims...............................................................7
       3.14      Major Contracts .................................................................................8
       3.15      Taxes ...........................................................................................9
       3.16      Intellectual Property ..........................................................................10
       3.17      Restrictions on Business Activities ............................................................11
       3.18      Title to Properties; Absence of Liens and
                 Encumbrances; Conditions of Equipment...........................................................11
       3.19      Governmental Authorization and Licenses.........................................................11
       3.20      Environmental Matters ........................................................................  12
       3.21      Insurance ....................................................................................  12
       3.22      Labor Matters ................................................................................  13
       3.23      Agents; Customers and Agent Complaints .......................................................  13
       3.24      Questionable Payments ........................................................................  13

</TABLE>

                                       -i-

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>

                                                                                                               Page
                                                                                                               ----
<S>                                                                                                              <C>

ARTICLE IV - REPRESENTATIONS AND WARRANTIES OF PARADIGM......................................................... 13

ARTICLE V - REPRESENTATIONS AND WARRANTIES OF PARADIGM ........................................................  14
       5.1       Organization, Good Standing and Power ......................................................... 14
       5.2       Authority ..................................................................................... 14
       5.3       Board Authorization............................................................................ 15

ARTICLE VI - CONDUCT AND TRANSACTIONS PRIOR TO
                       CLOSING DATE; ADDITIONAL AGREEMENT....................................................... 15
       6.1       Conduct of Business of OBF..................................................................... 15

ARTICLE VII - CONDITIONS PRECEDENT ............................................................................. 19
       7.1       Conditions to Each Party's Obligation to
                 Effect This Transaction ....................................................................... 19
       7.2       Conditions to Obligations of Paradigm  ........................................................ 19
       7.3       Conditions to Obligations of Redman and OBF ................................................... 21

ARTICLE VIII - TERMINATION ..................................................................................... 22
       8.1       Termination ................................................................................... 22

ARTICLE IX - INDEMNIFICATION ................................................................................... 23
       9.1       Obligation of Redman to Indemnify ............................................................. 23
       9.2       Notice and Opportunity to Defend .............................................................. 23

ARTICLE X - REPURCHASE OPTION .................................................................................  24
       10.1      Option to Repurchase Rights to Blood Flow Analyzer, Inc.......................................  24

ARTICLE XI - GENERAL PROVISIONS .................................................................................24
       11.1      Survival of Representations, Warranties,
                 Covenants and Agreements....................................................................... 24
       11.2      Amendment ..................................................................................... 25
       11.3      Extension; Waiver ............................................................................. 25
       11.4      Notices ....................................................................................... 25
       11.5      Interpretation ................................................................................ 26
       11.6      Counterparts .................................................................................. 26
       11.7      Entire Agreement .............................................................................. 26
       11.8      No Transfer ................................................................................... 26
</TABLE>

                                      -ii-

<PAGE>

                                TABLE OF CONTENTS
                                   (continued)

<TABLE>
<CAPTION>

                                                                                                               Page
                                                                                                               ----
<S>                                                                                                              <C>

       11.9      Severability ...................................................................................26
       11.10     Other Remedies .................................................................................27
       11.11     Further Assurances .............................................................................27
       11.12     No Third Party Beneficiary Rights ..............................................................27
       11.13     Mutual Drafting ................................................................................27
       11.14     Governing Law ..................................................................................27
       11.15     Expenses .......................................................................................27
       11.16     Brokers or Finders .............................................................................27
       11.17     Public Announcements ...........................................................................27
       11.18     Confidentiality ................................................................................28
       11.19     Attorneys' Fees................................................................................ 29

</TABLE>

EXHIBITS

       Exhibit 3           OBF/Redman Disclosure Schedule

       Exhibit 5           Paradigm Disclosure Schedule

ANNEXES

       Annex I             Royalty Rights Agreement

       Annex II            Registration Rights Agreement

                                      -iii-

<PAGE>

                            STOCK PURCHASE AGREEMENT

            THIS STOCK PURCHASE  AGREEMENT (the  "Agreement") is dated effective
as of June 9, 2000 and entered into by and among  Paradigm  Medical  Industries,
Inc., a Delaware  corporation  ("Paradigm"),  Ocular Blood Flow,  Ltd., a United
Kingdom  registered  limited  company  ("OBF"),  and  Malcolm  Redman,  the sole
shareholder of OBF ("Redman").

            NOW  THEREFORE,   in  consideration  of  the  mutual  covenants  and
agreements contained herein, Paradigm, OBF and Redman hereby agree as follows:

                                    ARTICLE I

                           PURCHASE AND SALE OF SHARES

            1.1 Sale and Purchase of the Shares. At the Closing,  as hereinafter
defined,  upon  and  subject  to the  terms  and  conditions  set  forth in this
Agreement,  Redman shall sell,  transfer,  assign and deliver to  Paradigm,  and
Paradigm shall purchase from Redman, 10,000 ordinary shares of stock of OBF (the
"OBF Shares") which  represent all of the issued and  outstanding  stock and all
other equity and debt  interests or securities of OBF and all of which are owned
by  Redman,  free and  clear of all  liens,  claims,  options,  proxies,  voting
agreements, charges and encumbrances.

            1.2 Purchase  Consideration.  Subject to the terms and conditions of
this  Agreement,   in  reliance  upon  Redman's   representations,   warranties,
agreements and covenants  contained  herein,  and in  consideration of the sale,
transfer, assignment and delivery of the OBF Shares as herein provided, Paradigm
shall   provide   the   following   purchase    consideration   (the   "Purchase
Consideration") to Redman:

                      (i) 100,000 shares of Paradigm Common Stock (the "Paradigm
Shares");

                      (ii) Fifty Thousand Dollars (U.S. $50,000) in cash payable
on Closing;

                      (iii)  Fifty  Thousand  Dollars  (U.S.  $50,000)  in  cash
payable at Closing in full payment and  satisfaction  of all amounts owed by OBF
to Consultant as of the Closing Date including,  but not limited to, all amounts
owed as a result of Consultant  having made loans and other cash advances to OBF
from time to time for operations of OBF's business;

                      (iv) the execution  and delivery of the Royalty  Agreement
in the form  attached  hereto as Annex I, granting to Redman a ten percent (10%)
royalty on all sales of OBF's  tonometer or Blood Flow Analyzer (the "Blood Flow
Analyzer") by Paradigm, including work station units.

                      Paradigm shall register the Paradigm  Shares  described in
Section 1.2(i) by preparing and filing a Registration  Statement with the United
States  Securities  and  Exchange  Commission  pursuant  to  the  terms  of  the
Registration  Rights  Agreement  in the form  attached  hereto as Annex II. Such
filing shall take place on or before  December 9, 2000 and shall be confirmed in
writing by Paradigm.

                                       -1-

<PAGE>

            1.3 Delivery of Shares and Other Consideration. At the Closing Date,
Redman shall deliver to Paradigm a  certificate(s)  with stock power executed in
blank  representing the outstanding shares of OBF Shares required by Section 1.1
hereof.  Paradigm shall deliver to Redman, at the Closing,  valid certificate(s)
issued  in the name of Redman  representing  the  Paradigm  Shares  required  by
Section 1.2 hereof and the Royalty  Agreement  specified in Section  1.2(iv) and
shall pay to Redman the sums specified in Section 1.2(ii) and 1.2(iii).

                                   ARTICLE II

                                   THE CLOSING

            2.1 Closing.  The closing of the  transaction  (the  "Closing") will
take place at the offices of Mackey,  Price & Williams,  170 South Main  Street,
Suite 900,  Salt Lake City,  Utah  84109,  unless a  different  date or place is
agreed to in writing by the  parties  hereto.  Each party  hereto  shall use its
reasonable best efforts to cause the Closing to occur on or before June 20, 2000
unless this date is extended as provided herein (the "Closing Date").

                                   ARTICLE III

                REPRESENTATIONS AND WARRANTIES OF OBF AND REDMAN

            Except as disclosed in a document  attached hereto (the  "OBF/Redman
Disclosure  Schedule") referring  specifically to the applicable  representation
and warranty in this Agreement  that  identifies the basis for an exception to a
representation  and warranty in this  Agreement and that is delivered by OBF and
Redman to Paradigm and approved by Paradigm by execution of this Agreement,  OBF
and Redman each  represent and warrant to Paradigm as set forth below,  and such
representations  and warranties  shall be true and correct as of the date hereof
and at all times thereafter including,  without limitation, the Closing Date, as
if made at all such times.  As used in this  Agreement (i) "Business  Condition"
with respect to any business entity or group of business entities shall mean the
business and financial  condition and prospects of such entity or entities taken
as a whole and (ii) "material adverse effect" on the Business Condition shall be
deemed to include, without limitation,  (x) any inaccuracy in the capitalization
representation set forth in Section 3.2 below and (y) any material liability not
reflected on the OBF Financial  Statements (as defined in Section 3.5 below). It
is agreed that the liability of Redman in respect to any breach of the following
representations  and warranties shall not exceed the value of the  consideration
received  by him  under  this  Agreement  and  the  Royalty  Agreement  and  the
Consulting  Agreement  executed in connection  with this  Agreement.  It is also
agreed that no claim  shall be made in respect to such breach  unless it exceeds
U.S. $7,500 and, in the case of a tax warranty or representation, is made within
six  years  after  Closing  or,  in the case of all  other  representations  and
warranties, is made within 18 months after Closing.

                                       -2-

<PAGE>

            3.1  Organization,  Good Standing and Power. OBF is a United Kingdom
registered  limited  company,  duly  organized,  validly  existing  and in  good
standing  under the laws of the United  Kingdom and has all requisite  power and
authority to own,  operate and lease its properties and to carry on its business
as it is now being conducted. Schedule 3.1 of the OBF/Redman Disclosure Schedule
contains a true and correct listing of all countries in which OBF is registered,
licensed  and  authorized  to  engage  in  business.  OBF  is not  aware  of any
threatened or pending  action or inaction that could result in the loss of or an
adverse  change in any such  registration  or license.  OBF is in good  standing
under all such  registrations  and licenses.  OBF is duly  qualified and in good
standing in each  jurisdiction  in which the failure to so qualify  would have a
material  adverse effect on its individual  Business  Condition.  The OBF/Redman
Disclosure  Schedule  also sets forth a true and  complete  list of the  foreign
countries where OBF is qualified as a foreign entity.  OBF has no  subsidiaries.
OBF  has no  other  direct  or  indirect  equity  interest  in or  loans  to any
partnership, corporation, joint venture, business association or other entity.

            3.2       Capital Structure.

                      (a) The authorized capital stock of OBF consists of 10,000
shares of Common  Stock.  There are 10,000 shares of OBF Common Stock issued and
outstanding,  all of which are owned by Redman.  Except as disclosed on Schedule
3.2 of the OBF/Redman  Disclosure  Schedule,  there are no other debt, equity or
hybrid debt or equity interests or securities of OBF issued and outstanding.

                      (b) All  outstanding  OBF Shares and other OBF securities,
if any,  are  validly  issued,  fully  paid and  non-assessable  and,  except as
disclosed on the OBF/Redman  Disclosure Schedule,  are not subject to any liens,
claims,  encumbrances or charges of any kind or nature or any preemptive  rights
created by statute, or any agreement to which OBF is a party or by which OBF may
be bound. There are no options,  warrants, calls, conversion rights, commitments
or  agreements  of any kind to which OBF is a party or by which OBF may be bound
that do or may  obligate  OBF to issue  securities  of any kind or  nature or to
grant, extend or enter into any such option,  warrant,  call,  conversion right,
commitment or agreement or which relate to the voting of the OBF Shares or other
OBF securities, if any.

            3.3       Authority.

                      (a) OBF and Redman have all requisite  power and authority
to enter into this  Agreement  and to perform  their  obligations  hereunder and
thereunder,  and to consummate the transactions contemplated hereby and thereby.
The  execution and delivery of this  Agreement,  the  performance  by OBF of its
obligations  hereunder and thereunder and the  consummation of the  transactions
contemplated  hereby and thereby  have been duly and validly  authorized  by all
necessary action on the part of OBF and Redman.  This Agreement shall constitute
legal, valid and binding obligations of OBF and Redman,  enforceable against OBF
and Redman in accordance with their respective terms,  except as enforcement may
be limited  by  bankruptcy,  insolvency  or other  similar  laws  affecting  the
enforcement of creditors' rights  generally and  except that the availability of

                                       -3-

<PAGE>

equitable  remedies is subject to the  discretion  of the court before which any
proceeding therefor may be brought.

                      (b) To the best knowledge of OBF and Redman, the execution
and  delivery  of  this  Agreement  does  not,  and  the   consummation  of  the
transactions  contemplated hereby and thereby, will not, conflict with or result
in any  violation of any material  statute,  law,  rule,  regulation,  judgment,
order,  decree or ordinance  applicable to OBF or its properties or assets,  nor
will it  conflict  with or result in any breach or default  (with or without the
giving of notice or the lapse of time,  or both) under,  or give rise to a right
of termination,  cancellation  or acceleration of any material  obligation or to
the loss of any material  benefit under, or result in the creation of a material
lien,  charge or  encumbrance on any of the properties or assets of OBF pursuant
to  any  material  agreement,   contract,  note,  mortgage,   indenture,   lease
instrument, permit, concession,  franchise, registration or license to which OBF
is a party or by which OBF or any of its  properties  or assets  may be bound or
affected.

                      (c) To the best  knowledge of OBF and Redman,  no consent,
approval,  order or  authorization  of, or  registration,  declaration or filing
with, any court,  administrative  agency,  commission,  regulatory  authority or
other  governmental  authority or  instrumentality,  whether domestic or foreign
(collectively,  a "Governmental  Entity"), is required by or with respect to OBF
in connection  with the  execution and delivery of this  Agreement and by OBF or
the  consummation  by OBF of the  transactions  contemplated  hereby or thereby,
except for such  consents,  approvals,  orders,  authorizations,  registrations,
declarations  and  filings  as may be  required  under  the laws of any  foreign
country,  which,  if not  obtained  or made,  would not have a material  adverse
effect on the Business  Condition  of OBF.  All  approvals of OBF as required by
applicable law have been obtained and are in force and effect.

            3.4 Dividends,  Stock Purchases,  Etc. Since April 30, 2000, OBF has
not (i) declared or paid any dividends (either in cash, property or its stock of
any class) upon, or made or become committed to make any other distribution with
respect to, or purchased, redeemed or otherwise beneficially acquired any of its
outstanding capital stock of any class, or become committed so to do; (ii) split
up, combined or reclassified any of its outstanding  capital stock of any class,
or become  committed so to do; or (iii) issued or become  committed to issue any
additional  capital  stock of any class  (whether  or not from  treasury  stock,
heretofore  authorized but unissued  stock,  or newly  authorized  stock) or any
options,  rights or warrants  to  acquire,  or  securities  convertible  into or
exchangeable  for, or which otherwise  confer upon the holder or holders thereof
any right to  acquire,  any  shares of  capital  stock of any class or any other
security or debt of Paradigm.

            3.5 Financial  Statements.  OBF has  furnished or made  available to
Paradigm or will furnish or make available to Paradigm within five (5) days from
the date of this Agreement  OBF's  unaudited  financial  statements  prepared by
McGill & Co.,  chartered  accountants  and registered  auditors,  for the period
ended February 29, 2000, including an unaudited balance sheet as of February 29,
2000,  and an  operating  statement  prepared  by OBF as of May  31,  2000  (the
"Financial  Statements").  The  Financial  Statements  provided to Paradigm  are
listed in Schedule 3.5 of the OBF/Redman Disclosure Schedule.  The OBF Financial

                                       -4-

<PAGE>

Statements have been prepared in accordance with generally  accepted  accounting
principles  ("GAAP")  consistently  applied  and fairly  present  the  financial
position of OBF as at the dates  thereof and the results of its  operations  and
cash  flows  for the  periods  then  ended.  There  has been no  change in OBF's
accounting  policies,  except  as  described  in  notes  to  the  OBF  Financial
Statements.

            3.6  Compliance  With Law. To the best  knowledge of Redman and OBF,
OBF is in compliance  with and have  conducted its business so as to comply with
all laws, rules, regulations,  judgments,  decrees or orders of any Governmental
Entity  applicable to its  operations  or with respect to which  compliance is a
condition of engaging in the business thereof, except to the extent that failure
to  comply  could,  individually  or in the  aggregate,  not have had and is not
reasonably expected to have, a material adverse effect on the Business Condition
of  OBF.  There  are  no  material  judgments,  orders,  injunctions,   decrees,
stipulations or awards (whether rendered by a court or administrative  agency or
by  arbitration)  against OBF or against any of its  properties  or  businesses.
Schedule 3.6 of the  OBF/Redman  Disclosure  Schedule  contains a summary of all
material  violations of, or conflicts with, any applicable  statute,  law, rule,
regulation,  ruling, order, judgment or decree, listed by each such Governmental
Entity,  including any of the foregoing  relating to any environmental or health
laws.

            3.7 No  Defaults.  To the best  knowledge  of Redman and OBF, OBF is
not, nor has it received  notice that it is or would be with the passage of time
or the giving of notice, or both, in default or violation of any term, condition
or provision of (i) any  judgment,  decree,  order,  injunction  or  stipulation
applicable to OBF or (ii) any agreement,  note, mortgage,  indenture,  contract,
lease, instrument,  permit,  registration,  concession,  franchise or license to
which OBF is a party or by which OBF or any of its  properties  or assets may be
bound, which violation or default could,  individually or in the aggregate, have
a material adverse effect on the Business Condition of OBF.

            3.8  Litigation.  There  is  no  action,  suit,  proceeding,  claim,
arbitration  or  investigation  pending  or,  to the best  knowledge  of OBF and
Redman, threatened, against OBF that, individually or in the aggregate, could be
reasonably  expected to have a material adverse effect on the Business Condition
of OBF, or which in any manner challenges or seeks to prevent,  enjoin, alter or
materially delay any of the transactions  contemplated  hereby.  Schedule 3.8 of
the  OBF/Redman  Disclosure  Schedule  sets forth with  respect to each  pending
action, suit, proceeding,  claim, arbitration or investigation to which OBF is a
party, the forum, the parties thereto, a brief description of the subject matter
thereof and the amount of damages  claimed.  OBF is not aware of any  reasonable
basis for any  other  such  action,  suit,  proceeding,  claim,  arbitration  or
investigation.  OBF has  delivered  or made  available  to Paradigm  correct and
complete  copies  of all  correspondence  prepared  by  its  counsel  for  OBF's
independent  public  accountants  in  connection  with  any  audits  or  reviews
completed by OBF's independent public accountants.

            3.9 No  Material  Adverse  Change.  Since  April 30,  2000,  OBF has
conducted its business in the ordinary course and there has not occurred:

                      (a) Any material adverse change in the Business  Condition
of OBF;

                                       -5-

<PAGE>

                      (b) Any damage,  destruction or loss,  whether  covered by
insurance or not,  materially  and adversely  affecting any of the properties or
businesses of OBF;

                      (c)  Any   issuance,   redemption,   repurchase  or  other
acquisition  of the shares of Common  Stock of OBF or any  declaration,  setting
aside payment of any dividend or other  distribution  (whether in cash, stock or
property) with respect to the Common Stock of OBF;

                      (d) Any increase in or modification of the compensation or
benefits  payable or to become payable by OBF to any of its directors,  officers
or employees,  except in the ordinary  course of business  consistent  with past
practice;

                      (e) Any material increase in or modification of any bonus,
pension,  insurance or other  employee  benefit  plan,  payment or  arrangement,
including,  but not limited to, the granting of stock options,  restricted stock
awards or stock  appreciation  rights made to, for or with any of its employees,
except in the ordinary course of business consistent with past practice;

                      (f) Any sale of the property or assets of OBF individually
in excess of U.S. $1,000 or in the aggregate in excess of U.S. $2,500;

                      (g) Any alteration in any term of any outstanding security
of OBF;

                      (h) Any (a) incurrence,  assumption or guarantee by OBF of
any debt for borrowed money; (b) issuance or sale of any securities  convertible
into or exchangeable for debt securities of OBF; (c) issuance or sale of options
or other rights to acquire from OBF, directly or indirectly,  debt securities or
any securities convertible into or exchangeable for any such debt securities; or
(d) any material premium refunds;

                      (i) Any  creation or  assumption  by OBF of any  mortgage,
pledge,  security  interest,  lien or other  encumbrance on any of its assets or
properties;

                      (j)  Any   making  of  any  loan,   advance   or   capital
contribution  to, or  investment  in, any person  other than (a) travel loans or
advances made in the ordinary  course of business of OBF and (b) other loans and
advances in an aggregate amount that does not exceed U.S. $1,000  outstanding at
any time;

                      (k) Any entry into or any amendment or  relinquishment  of
or any  termination  or  renewal  by OBF of  any  contract,  lease  transaction,
commitment  or other  right or  obligation,  except  in the  ordinary  course of
business consistent with past practice;

                      (l)  Any  transfer  or  grant  of a  right  under  the OBF
Intellectual Property Rights (as defined in Section 3.16 below) other than those
transferred or granted in the ordinary  course of business  consistent with past
practice;

                                       -6-

<PAGE>

                      (m) Any  labor  dispute,  other  than  routine  individual
grievances,  or any activity or  proceeding  by a labor union or  representative
thereof to organize any employees of OBF;

                      (n) Any violation of or conflict with any applicable laws,
statutes,  orders, rules or regulations promulgated,  or judgment entered by any
Governmental  Entity,  that,  individually  or in the aggregate,  materially and
adversely  affects (or,  insofar as OBF knows,  might  reasonably be expected to
materially and adversely affect) the Business Condition of OBF;

                      (o) Any agreement or  arrangement  made by OBF to take any
action  that,  if  taken  prior  to  the  date  hereof,   would  have  made  any
representation or warranty set forth in this Section 3 untrue or incorrect as of
the date when made; or

                      (p)  Any  payment  of  amounts   owing  under  OBF  issued
insurance  policies  materially at variance with the Company's policy provisions
and policy payment history.

            3.10 Absence of  Undisclosed  Liabilities.  To the best knowledge of
OBF  and  Redman,  except  as  disclosed  in  Schedule  3.10  of the  OBF/Redman
Disclosure  Schedule or as reflected in the OBF Financial  Statements and except
for liabilities and obligations  arising after February 29, 2000 in the ordinary
course of business  consistent  with past practices that could not reasonably be
expected to have a material adverse effect on the Business Condition of OBF, OBF
has no liabilities or obligations (whether absolute,  accrued or contingent, and
whether or not  determined or  determinable)  of a character  that,  under GAAP,
should  be  accrued,  shown or  disclosed  on an  audited  balance  sheet of OBF
(including the footnotes thereto).

            3.11 Information Supplied. None of the information supplied or to be
supplied by OBF pursuant to this  Agreement  and no  representation  or warranty
made herein or in any exhibit  hereto or in any financial  statement or schedule
attached hereto contains or will contain any untrue statement of a material fact
or omits or will omit to state any material fact  required to be stated  therein
or  necessary  in  order  to  make  the  statements  therein,  in  light  of the
circumstances under which they are made, not misleading.

            3.12 Certain Agreements.  Neither the execution and delivery of this
Agreement  nor the  consummation  of the  transactions  contemplated  hereby  or
thereby  will  (a)  result  in  any  payment  (including,   without  limitation,
severance,  unemployment  compensation,  golden  parachute,  bonus or otherwise)
becoming  due to any  director  or employee of OBF under any Plan (as defined in
Section 3.13 below) or otherwise, (b) materially increase any benefits otherwise
payable under any Plan or (c) result in the  acceleration of the time of payment
or vesting of any such benefit.

                                       -7-

<PAGE>

            3.13      Plans; Benefits; Employment Claims.

                      (a)  All  employee  benefit  plans,  programs,   policies,
commitments  or  other  arrangements  (whether  or not set  forth  in a  written
document)  covering any active,  former or retired employee or consultant of OBF
are listed in Schedule 3.13 of the OBF/Redman Disclosure Schedule (individually,
a "Plan" and, collectively, the "Plans").

                      (b) Except as described in Schedule 3.13 attached  hereto,
no present or former  employee of OBF has any claim  against OBF (whether  under
law,  under any  employment  agreement,  or  otherwise) on account of or for (i)
overtime pay, other than overtime pay for work done in current  payroll  period;
(ii) wages or salary for any period other than the current payroll period; (iii)
vacation  time  off or pay  in  lieu  of  vacation  time  off,  other  than  (x)
accumulated  vacation  pay as show in the  schedule  refined  to above,  and (y)
vacation  time  off (or pay in lieu  thereof)  earned  in or in  respect  of the
current fiscal year; or (iv) any material violation of any statute, ordinance or
regulation relating to minimum wages or maximum hours of work.

                      (c) No  person or party  (including,  but not  limited  to
governmental  agencies  of any kind) has filed,  or to the  knowledge  of OBF or
Redman has  threatened to file, any claim against OBF under or rising out of any
statute,  ordinance or regulation  relating to  discrimination  in employment or
employment  practices.  No person has any material claim under which OBF has any
material liability under any health, sickness,  disability,  medical,  surgical,
hospital, or surgical,  hospital, or similar benefit plan or arrangement,  or by
virtue of his or her  employment  maintained  by OBF, or to or by which OBF is a
party  or is  bound,  which  is not  fully  covered,  subject  only to  standard
deductibles,  by insurance  maintained with reputable,  financially  responsible
insurers.  No person has any claim or has filed any action or has  threatened to
file any  action  or bring a claim by  virtue  of his or her  employment  by OBF
including,  without limiting the generality of the foregoing, sexual harassment,
wrongful termination, or other actions.

            3.14      Major  Contracts.  Except as disclosed in Schedule 3.14 of
the OBF/Redman Disclosure Schedule, OBF is not a party to or subject to:

                      (a) Any union  contract or any  employment  or  consulting
contract,  agreement or arrangement  providing for future compensation,  whether
written or oral, with any officer, consultant,  director or employee that is not
terminable  by OBF on  thirty  (30)  days' or less  notice  without  penalty  or
obligation to make payments related to such termination;

                      (b) Any plan, contract or arrangement,  whether written or
oral, providing for bonuses, pensions,  deferred compensation,  severance pay or
severance benefits, retirement payments, profit-sharing payments or similar such
payments;

                      (c) Any joint venture  contract,  agreement or arrangement
or any other  agreement that has involved or is expected to involve a sharing of
profits with another person or entity;

                                       -8-

<PAGE>

                      (d)  Any  existing  marketing,   distribution,  agency  or
brokerage  agreement in which the annual amount involved exceeded U.S. $5,000 in
aggregate  amount or pursuant to which OBF has granted or received  most favored
nation pricing provisions or exclusive  marketing rights related to any product,
group of products or territory;

                      (e) Any lease for realty or personal property in which the
amount of payments  that OBF is required to make on an annual basis exceeds U.S.
$1,500;

                      (f) Any  instrument  evidencing  or  related in any way to
indebtedness  incurred in the  acquisition  of  companies  or other  entities or
indebtedness  for borrowed money by way of direct loan, sale of debt securities,
purchase money obligation, conditional sale, guarantee, leasehold obligations or
otherwise;

                      (g) Any material license agreement,  either as licensor or
licensee;

                      (h) Any contract containing  covenants purporting to limit
the freedom of OBF to compete in any line of business in any geographic area;

                      (i) Any insurance policy or fidelity or surety bond;

                      (j) Any  agreement of  indemnification  relating to OBF or
any of its officers, directors or employees;

                      (k) Any  agreement,  contract  or  commitment  relating to
capital  expenditures  that involves future  payments  individually in excess of
U.S. $1,500 or in the aggregate in excess of U.S. $5,000 by OBF;

                      (l) Any  agreement,  contract  or  commitment  relating to
personal  services to be rendered by any person to OBF  requiring the payment of
more than U.S.  $1,000 per month or the disposition or acquisition of any assets
by OBF; or

                      (m) Any other  agreement,  contract or commitment  that is
material to OBF's business.

            Each  agreement,   contract,   mortgage,   indenture,  plan,  lease,
instrument, permit, concession, franchise, arrangement, license, regulations and
commitment listed on the OBF/Redman Disclosure Schedule pursuant to this Section
3.14 is valid and binding on OBF,  and is in full force and effect,  and neither
OBF nor to the best knowledge of OBF, any other party thereto has breached or is
aware of any facts  that  would lead it to  believe  that it has  breached,  any
provision of, or is in default under the terms of any such agreement,  contract,
mortgage,  indenture, plan, lease, instrument,  permit,  concession,  franchise,
arrangement, license, regulation or commitment. To the best knowledge of OBF, no
such agreement,  contract, mortgage, indenture, plan, lease, instrument, permit,
concession,  franchise, arrangement, license or commitment contains any material

                                       -9-

<PAGE>

liquidated damages,  penalty or similar provision. To the best knowledge of OBF,
no party to any such  agreement  contract,  mortgage,  indenture,  plan,  lease,
instrument, permit, registration, concession, franchise, arrangement, license or
commitment intends to cancel, withdraw, modify or amend the same.

            3.15      Taxes.

                      (a)  All  tax  returns,  statements,   reports  and  forms
(including,   but  not  limited  to,  estimated  tax  returns  and  reports  and
information  returns and reports) required to be filed with any taxing authority
with respect to any taxable  period  ending on or before the Closing Date, by or
on behalf of OBF (collectively,  the "OBF Returns"),  have been or will be filed
when due (including any extensions of such due date),  and all amounts shown due
thereon  on or before  the  Closing  Date have been or will be paid on or before
such date. The balance sheets included in the OBF Financial Statements (i) fully
accrue all  actual  and  contingent  liabilities  for taxes with  respect to all
periods  through  February  29,  2000 and OBF has not and will not incur any tax
liability in excess of the amount reflected on the OBF Financial Statements with
respect to such periods and (ii) properly  accrues in  accordance  with GAAP all
liabilities  for taxes  payable  after  February  29,  2000 with  respect to all
transactions  and events occurring on or prior to such date. All information set
forth in the footnotes to the OBF Financial  Statements  relating to tax matters
is true, complete and accurate in all material respects.

                      (b) No material tax liability  since February 29, 2000 has
been  incurred  other  than in the  ordinary  course of  business  and  adequate
provision  has been or will be made for all taxes since that date in  accordance
with  GAAP on at  least a  quarterly  basis.  OBF has  withheld  and paid to the
applicable financial  institution or taxing authority all amounts required to be
withheld.  Neither OBF nor any member of any  affiliated  or  combined  group of
which  OBF has  been a  member  has  granted  any  extension  or  waiver  of the
limitation period applicable to any of the OBF Returns.

                      (c) There is no material claim, action,  suit,  proceeding
or  investigation  now  pending  or (to the best  knowledge  of OBF)  threatened
against or with respect to OBF in respect of any tax or assessment. No notice of
deficiency  or similar  document of any tax  authority has been received by OBF,
and there are no  liabilities  for taxes  (including  liabilities  for  interest
additions to tax and penalties thereof and related expenses) with respect to the
issues that have been raised (and are  currently  pending) by any tax  authority
that could, if determined  adversely to OBF, materially and adversely affect the
liability of OBF for taxes.  There are no liens for taxes  against the assets of
OBF except liens for current taxes not yet due. OBF has not been and will not be
required to include any material  adjustment  in its taxable  income for any tax
period (or  portion  thereof)  pursuant  to  applicable  tax laws as a result of
transactions, events or accounting methods employed prior to the Closing.

                                      -10-

<PAGE>

            3.16      Intellectual Property.

                      (a) OBF  owns or is  licensed  or  otherwise  entitled  to
exercise all rights under or with respect to all intellectual property including
without limitation, inventions, patents, copyrights, trademarks or service marks
owned or used in connection  with its business.  Schedule 3.16 of the OBF/Redman
Disclosure  Schedule  lists  all  inventions,   patents,  trademarks,  works  of
authorship,  registered and unregistered copyrights, registered and unregistered
trademarks,  trade names and service marks, and all applications  therefor owned
or licensed by OBF (the "Intellectual  Property Rights"),  and further specifies
the  jurisdictions  in which each such matter and  registration  has been filed,
including the respective  registration or application numbers.  Schedule 3.16 of
the OBF/Redman Disclosure Schedule also lists all material licenses, sublicenses
and other  agreements  (oral or written) as to which OBF is a party and pursuant
to which OBF or any other  person or entity  owns or is  licensed  or  otherwise
authorized  or obligated  with respect to any  Intellectual  Property  Right and
includes the identity of all parties thereto. OBF is not, nor as a result of the
execution and delivery of this Agreement or the performance of OBF's obligations
hereunder  will be, in violation of any license,  sublicense or other  agreement
applicable  to  it,  whether  or not  described  in  the  OBF/Redman  Disclosure
Schedule.  Except to the extent clearly and conspicuously  disclosed in Schedule
3.16 of the OBF/Redman Disclosure Schedule,  OBF is the sole and exclusive owner
or licensee of, with full right, title and interest in and to (free and clear of
any liens,  claims or encumbrances),  the Intellectual  Property Rights, and has
the sole and exclusive  right in respect  thereof  (and,  except as set forth in
Schedule  3.16  of the  OBF/Redman  Disclosure  Schedule  is  not  contractually
obligated to pay any compensation to any third party with respect thereto).

            3.17  Restrictions  on  Business  Activities.  There is no  material
agreement,  judgment,  injunction,  order or decree binding upon OBF that has or
could  reasonably  be expected to have the effect of  prohibiting  or materially
impairing any business  practice of OBF, any  acquisition  of property by OBF or
the conduct of business by OBF as currently  conducted or as currently  proposed
to be conducted.

            3.18  Title  to  Properties;  Absence  of  Liens  and  Encumbrances;
Condition of Equipment.

                      (a) Schedule 3.18 of the  OBF/Redman  Disclosure  Schedule
sets forth a true,  complete and  accurate  list of all real  property  owned or
leased by OBF and summarizes  all material lease terms,  including the aggregate
annual rental or other fees payable,  the length of all leases and the number of
extensions available.

                      (b) OBF has good and valid  title  to,  or, in the case of
leased properties and assets,  valid leasehold interests in, all of its tangible
properties and assets,  whether real,  personal or mixed,  used in its business,
free and  clear of any  liens  (other  than  liens  for  taxes  that are not yet
delinquent), claims, charges, pledges, security interests or other encumbrances,
except  as  reflected  in the OBF  Financial  Statements  and  except  for  such
imperfections  of title and  encumbrances,  if any, that are not  substantial or

                                      -11-

<PAGE>

material in character, amount or extent, and that do not materially detract from
the value, or interfere with the present use, of the property subject thereto or
affected thereby.

                      (c) The machinery,  equipment and other personal  property
(collectively,  the "Equipment") owned or leased by OBF is, taken as a whole (i)
adequate  for the  conduct  of the  business  of OBF  consistent  with  its past
practice, (ii) suitable for the uses to which it is currently employed, (iii) in
good  operating  condition,  (iv)  regularly  and properly  maintained,  (v) not
obsolete, dangerous or in need of renewal or replacement,  except for renewal or
replacement  in the ordinary  course of business and (vi) free from all defects,
except,  with respect to clauses (ii)  through (v) of this Section  3.18(c),  as
would not have a material adverse effect on the Business Condition of OBF.

            3.19 Governmental  Authorizations and Licenses. OBF is the holder of
all licenses, authorizations, permits, concessions, registrations,  certificates
and other franchises of any Governmental Entity required to operate its business
(collectively,  the "Licenses") and is in compliance with the terms, conditions,
limitations, restrictions, standards, prohibitions, requirements and obligations
of all of such Licenses, except where the failure to hold any such License or to
so comply would not have a material adverse effect on the Business  Condition of
OBF. The Licenses are in full force and effect on the date hereof and will be in
full force and effect on the  Closing  Date,  except as noted in  Schedule  3.19
hereof.  There is not now pending,  nor to the best  knowledge of OBF and Redman
are there threatened,  any action, suit, investigation or proceeding against OBF
before any  Governmental  Entity with respect to the Licenses,  nor is there any
issued or outstanding  notice,  order or complaint with respect to the violation
by OBF of the terms of any such  License  or any rule or  regulation  applicable
thereto.

            3.20  Environmental Matters.

                      (a) To the best knowledge of OBF and Redman,  no substance
that is regulated by any Governmental  Entity or that has been designated by any
Governmental Entity to be radioactive, toxic, hazardous or otherwise a danger to
health or the  environment  (a "Hazardous  Material") is present in, on or under
any property that OBF has at any time owned, operated, occupied or leased.

                      (b) To the best  knowledge of OBF and Redman,  OBF has not
transported,  stored, used,  manufactured,  released or exposed its employees or
any other  person to any  Hazardous  Material  in  violation  of any  applicable
statute, rule,  regulation,  order or law, except where such violation would not
have a material adverse effect on the Business Condition of OBF.

                      (c) To the  best  knowledge  of OBF  and  Redman,  OBF has
obtained all permits, consents,  waivers,  exemptions,  licenses,  approvals and
other  authorizations  (collectively,  "Environmental  Permits")  required to be
obtained under the applicable statutes,  rules,  regulations,  orders or laws of
any  Governmental  Entity  relating to land use,  public and employee health and
safety, pollution or protection of the environment (collectively, "Environmental
Laws"),  except where the failure to obtain such an  Environmental  Permit would

                                      -12-

<PAGE>

not have a material adverse effect on the Business Condition of OBF. To the best
knowledge of OBF and Redman, Schedule 3.20 of the OBF/Redman Disclosure Schedule
sets forth a true, complete and accurate list of all such Environmental Permits,
each of which is in full force and effect on the date hereof and will be in full
force and effect on the Closing Date.  To the best  knowledge of OBF and Redman,
OBF (i) is in full  compliance  in all of the material  respects with all of the
terms and conditions of the  Environmental  Permits and (ii) is in compliance in
all material  respects  with all other  limitations,  restrictions,  conditions,
standards,  prohibitions,  requirements,  obligations,  schedules and timetables
contained in the Environmental Laws or contained in any regulation,  code, plan,
order,  decree,  judgment,   notice  or  demand  letter  issued,  entered  into,
promulgated  by or approved  thereunder.  OBF has not received any notice nor is
OBF or Redman aware of any past or present condition or practice of the business
conducted by OBF that, to the best  knowledge of OBF and Redman,  forms or could
be reasonably  expected to form the basis of any material claim,  action,  suit,
proceeding,   hearing  or   investigation   against  OBF,  arising  out  of  the
manufacture, processing, distribution, use, treatment, storage, spill, disposal,
transport or handling, or the emission, discharge, release or threatened release
into the environment, of any Hazardous Material by OBF.

            3.21 Insurance.  Schedule 3.21 of the OBF/Redman Disclosure Schedule
lists and  summarizes  all  insurance  policies  and  fidelity  or surety  bonds
covering the assets, Inventories,  business, equipment, properties,  operations,
employees,  officers and  directors  of OBF, the amounts of coverage  under each
such  policy  and bond of OBF.  Within  the last  four  years,  OBF has not been
refused any  requested  insurance or bond  coverage.  Except as disclosed on the
OBF/Redman Disclosure Schedule,  all premiums payable under all of such policies
and bonds have been paid and OBF is otherwise in full  compliance with the terms
of all of such  policies  and  bonds  (or other  policies  and  bonds  providing
substantially similar insurance coverage).  Such policies of insurance and bonds
are of the type and in  amounts  customarily  carried by  persons  and  entities
conducting  businesses  similar  to  that  of  OBF.  OBF  does  not  know of any
threatened  termination of or material  premium increase with respect to, any of
such insurance policies or bonds.

            3.22 Labor Matters.  To the best knowledge of OBF and Redman, OBF is
in compliance in all material respects with all currently applicable laws, rules
and regulations respecting employment,  discrimination in employment,  terms and
conditions of employment, wages and hours and occupational safety and health and
employment  practices,  and has not and  currently  is not engaged in any unfair
labor practice.  OBF has not received any notice from any  Governmental  Entity,
and there has not been  asserted  before  any  Governmental  Entity,  any claim,
action or  proceeding  to which OBF is a party or  involving  OBF,  and there is
neither  pending  nor, to OBF's and Redman's  best  knowledge,  threatened,  any
investigation  or hearing  concerning  OBF arising out of or based upon any such
law, regulation or practice.

            3.23  Agents;  Customers  and  Complaints.   Schedule  3.23  of  the
OBF/Redman  Disclosure  Schedule sets forth the names and addresses of the sales
agents or brokers of OBF as of April 30, 2000. As of the date hereof, OBF has no
unresolved  customer  or  agent  complaints  filed  with a  Governmental  Entity
concerning its products and/or services.

                                      -13-

<PAGE>

            3.24  Questionable   Payments.   Neither  OBF  nor,  to  OBF's  best
knowledge,  any  director,  officer or other  employee of OBF has:  (i) made any
payments or provided  services or other favors in any country in order to obtain
preferential  treatment or consideration by any Governmental Entity with respect
to any aspect of the  business of OBF or which would be unlawful in such country
or (ii) made any political contributions that would not be lawful under the laws
of the country in which such payments  were made.  Neither OBF nor, to OBF's and
Redman's best knowledge, any director,  officer or other employee of OBF nor, to
OBF's and Redman's best knowledge,  any customer or supplier of any of them, has
been the subject of any inquiry or investigation  by any Governmental  Entity in
connection  with  payments or benefits or other  favors to or for the benefit of
any governmental or armed services official,  agent,  representative or employee
with  respect  to any  aspect  of the  business  of OBF or with  respect  to any
political contribution.

                                   ARTICLE IV

                    REPRESENTATIONS AND WARRANTIES OF REDMAN

            Redman represents and warrants to Paradigm:

            (a) he is an  "accredited  investor"  within the meaning of Rule 501
under the Securities  Act and, if an entity,  was not organized for the specific
purpose of acquiring Paradigm Shares;

            (b) he has  sufficient  knowledge  and  experience  in  investing in
companies  similar to Paradigm so as to be able to evaluate the risks and merits
of its  investment  in  Paradigm  and it is able  financially  to bear the risks
thereof.  Redman has received and reviewed  copies of Paradigm's  public filings
with the Securities and Exchange Commission; and

            (c) he has  had an  opportunity  to  negotiate  the  terms  of  this
transaction  and discuss with  Paradigm  management,  to his  satisfaction,  the
business,  management  and  financial  affairs of  Paradigm  and he has read and
understands this Agreement and all other documents and instruments  entered into
or provided in connection herewith and he has had an opportunity to consult with
such independent  advisors as he has deemed necessary or advisable in connection
with the  transactions  described  in this  Agreement  and other  documents  and
instruments entered into in connection herewith.

                                    ARTICLE V

                   REPRESENTATIONS AND WARRANTIES OF PARADIGM

            Except  as  noted  on the  Paradigm  Disclosure  Schedule,  Paradigm
represents and warrants as follows:

            5.1 Organization, Good Standing and Power. Paradigm is a corporation
validly  existing and in good  standing  under the laws of the state of Delaware
and has all requisite  corporate  power and authority to own,  lease and operate

                                      -14-

<PAGE>

its  properties  and to  carry on its  business  as it is now  being  conducted.
Paradigm  has  delivered to OBF and Redman  complete  and correct  copies of its
Certificate of Incorporation and Bylaws, as amended to the date hereof.

            5.2       Authority.

                      (a)  Paradigm  has  all  requisite   corporate  power  and
authority to enter into and execute and deliver this Agreement and to consummate
the  transactions  contemplated  hereby and thereby,  subject to approval of the
transactions by applicable  Governmental  Entities having  jurisdiction over its
business.  This  Agreement,  when  executed  and  delivered  by  Paradigm,  will
constitute  the  valid  and  binding  obligation  of  Paradigm,  enforceable  in
accordance  with its terms,  except as enforcement may be limited by bankruptcy,
insolvency or other similar laws affecting the enforcement of creditors'  rights
generally and except that the  availability of equitable  remedies is subject to
the discretion of the court before which any proceeding therefor may be brought.

                      (b) To the best  knowledge of Paradigm,  the execution and
delivery of this Agreement and the consummation of the transactions contemplated
hereby and  thereby,  will not conflict  with or result in any  violation of any
material statute, law, rule,  regulation,  judgment,  order, decree or ordinance
applicable to Paradigm or its properties or assets, nor will it conflict with or
result in any  breach or default  (with or  without  the giving of notice or the
lapse  of  time,  or  both)  under,  or give  rise to a  right  of  termination,
cancellation  or  acceleration  of any obligation or to the loss of any material
benefit under (i) any provision of the Certificate of Incorporation or Bylaws of
Paradigm or of any of its Subsidiaries or (ii) any material agreement, contract,
note, mortgage, indenture, lease, instrument,  permit, concession,  franchise or
license to which  Paradigm is a party or by which  Paradigm or its properties or
assets may be bound or affected.

            5.3  Board  Authorization.  Prior  to  the  Closing,  the  Board  of
Directors  of  Paradigm  will have  authorized  the  Articles  of Merger and the
execution and delivery of this Agreement and the  performance by Paradigm of its
obligations under the Agreement.

                                   ARTICLE VI

                    CONDUCT AND TRANSACTIONS PRIOR TO CLOSING
                           DATE; ADDITIONAL AGREEMENT

            6.1       Conduct of Business of OBF.

                      (a) During the period from the date of this  Agreement and
continuing until the earlier of the termination of this Agreement or the Closing
Date, OBF shall carry on its business in the usual,  regular and ordinary course
in  substantially  the  same  manner  as  conducted  prior  to the  date of this
Agreement  and,  to  the  extent  consistent  with  such  businesses,   use  all
commercially  reasonable  efforts  consistent with past practice and policies to
preserve intact its present business organizations,  keep available the services
of its present  officers and key employees and preserve its  relationships  with

                                      -15-

<PAGE>

customers,  suppliers,  distributors,  agents,  brokers,  licensors,  licensees,
Governmental Entities, and others having business dealings with them, to the end
that its good will and ongoing  businesses  shall be  unimpaired  at the Closing
Date. OBF shall promptly  notify  Paradigm of any event or occurrence not in the
ordinary  course of business  of OBF,  and any event which could have a material
and  adverse  effect on the  Business  Condition  of OBF.  Except  as  expressly
contemplated  by  this  Agreement  or  disclosed  in the  OBF/Redman  Disclosure
Schedule, OBF shall not, without the prior written consent of Paradigm:

                                (i)  Grant  any  options,   warrants,  or  stock
purchase rights;

                                (ii) Enter into any  commitment  or  transaction
not in the ordinary course of business to be performed over a period longer than
six months in duration,  or to purchase fixed assets with an aggregate  purchase
price exceeding U.S. $5,000, or (ii) sell or commit to sell any products with an
aggregate  purchase  price  greater than U.S.  $5,000 in any single month if the
expected profit margins are lower than those  customarily  obtained for sales of
similar products by OBF in the past.

                                (iii) Grant any severance or termination  pay to
any director,  officer,  employee or consultant,  except mandatory payments made
pursuant to standard written agreements outstanding on the date hereof (any such
agreement or  arrangement  to be  disclosed  in Schedule  6.1 of the  OBF/Redman
Disclosure Schedule);

                                (iv)  Transfer to any person title to any rights
to OBF Intellectual Property Rights;

                                (v) Enter into or amend any agreements  pursuant
to which any other party is granted marketing, agency or other similar rights of
any type or scope with respect to any products of OBF;

                                (vi) Except in the  ordinary  course of business
with prior notice of Paradigm,  violate,  amend or otherwise modify the terms of
any of their  material  contracts  binding  on OBF set  forth on the  OBF/Redman
Disclosure Schedule;

                                (vii)  Commence  a  lawsuit  other  than for the
routine collection of bills or for a breach of this Agreement;

                                (viii)  Declare or pay any  dividends on or make
any other  distributions  (whether in cash, stock or property) in respect of any
of its capital stock,  or split,  combine or reclassify any of its capital stock
or issue or authorize  the issuance of any other  securities in respect of, lieu
of or in  substitution  for  shares  of its  capital  stock,  or  repurchase  or
otherwise  acquire,  directly or indirectly,  any shares of its capital stock in
accordance with agreements  providing for the repurchase of shares in connection
with any termination of service to OBF;

                                      -16-

<PAGE>

                                (ix)  Issue,   deliver  or  sell,  authorize  or
propose the  issuance,  delivery or sale of, or purchase or propose the purchase
of,  any  shares  of its  capital  stock  or  securities  convertible  into,  or
subscriptions,  rights,  warrants, or options to acquire, or other agreements or
commitments  of any  character  obligating  it to issue any such shares or other
convertible securities;

                                (x)   Solicit   approval   for  and  effect  any
amendments to OBF's  governing  documents  (other than as  contemplated  by this
Agreement);

                                (xi)  Acquire  or agree to acquire by merging or
consolidating  with, or by purchasing a substantial portion of the assets of, or
by any other manner, any business or any corporation,  partnership,  association
or other business  organization  or division  thereof,  or otherwise  acquire or
agree  to  acquire  any  assets  which  are  material,  individually  or in  the
aggregate, to the Business Condition of OBF;

                                (xii) Sell, lease,  license or otherwise dispose
of any of its properties or assets except in the ordinary course of business and
consistent with past practice;

                                (xiii) Incur any indebtedness for borrowed money
or  guarantee  any such  indebtedness  or issue or sell any debt  securities  or
guarantee any debt securities of others or loan money to others;

                                (xiv) Adopt or amend any Plan, or enter into any
employment  contract,  pay any  special  bonus or  special  remuneration  to any
director,  employee or consultant, or increase the salaries or wage rates of its
employees other than pursuant to scheduled  employee  reviews under OBF's normal
employee  review cycle,  as the case may be, or in connection with the hiring of
employees other than officers in the ordinary  course of business,  in all cases
consistent with past practice;

                                (xv)  Revalue  any  of  its  assets,   including
without limitation,  writing down the value of inventory or writing off notes or
accounts receivable other than in the ordinary course of business and consistent
with past practice;

                                (xvi) Pay,  discharge or satisfy in an amount in
excess  of U.S.  $25,000  in any one case any  claim,  liability  or  obligation
(absolute, accrued, asserted or unasserted, contingent or otherwise), other than
the payment,  discharge or  satisfaction  in the ordinary  course of business of
liabilities  reflected or reserved  against OBF's Financial  Statements or those
incurred  after the date of the April 30,  2000  Balance  Sheet in the  ordinary
course of business;

                                (xvii) Make any material tax election other than
in the ordinary course of business and consistent with past practice, change any
material tax election, adopt any material tax accounting method practice, change
any material tax accounting method, file any material tax return (other than any
estimate tax returns,  payroll tax returns or sale tax returns) or any amendment
to a material tax return, enter into any closing agreement, settle any tax claim

                                      -17-

<PAGE>

or  assessment,  or consent to any tax claim or  assessment,  without  the prior
written or unwritten  consent of Paradigm,  which consent will not be reasonably
withheld; and

                                (xviii) Engage in any activities or transactions
that are  outside  the  ordinary  course of its  business  consistent  with past
practice.

                      (b)  Unless  and  until  this  Agreement  shall  have been
terminated by either party pursuant to Article VIII, OBF shall not,  directly or
indirectly,  through any officer,  director,  agent or  otherwise,  (i) solicit,
initiate or encourage submission or proposals or offers from any person relating
to any acquisition or purchase of all or substantially  all of the assets of, or
any equity interest in, OBF or any merger,  consolidation,  business combination
or similar  transaction  with OBF, or (ii)  participate  in any  discussions  or
negotiations regarding, furnish to any other person any confidential information
with respect to, or otherwise  cooperate with any way with, or  participate  in,
facilitate or encourage, any effort or attempt by any other person to do or seek
any of the foregoing.

                      (c) Each of Paradigm,  OBF and Redman  shall not take,  or
fail to take,  any action which from the date hereof  through the Closing  would
cause  or  constitute  a  breach  of any of  their  respective  representations,
warranties  and  covenants  set forth in this  Agreement or which would from the
date hereof through the Closing cause any of such  representations or warranties
to be  inaccurate.  In the event of, and promptly  after  becoming aware of, the
occurrence of or the pending or  threatened  occurrence of any event which would
cause or constitute such a breach of inaccuracy,  each party shall give detailed
notice thereof to the other parties and shall use its best efforts to prevent or
promptly remedy such breach or inaccuracy.

                      (d) Each of Paradigm,  OBF and Redman shall promptly apply
for or otherwise seek, and use its commercially reasonable efforts to obtain all
consents and  approvals  required to be obtained by it for the  consummation  of
this  transaction,  and OBF shall use its best  efforts to obtain all  necessary
consents,  waivers  and  approvals  under  any  of  OBF's  material  agreements,
contracts  licenses or leases in connection with this  transaction,  except such
consents  and  approvals  which  Paradigm  and OBF  agree  OBF shall not seek to
obtain, as contemplated by the OBF/Redman Disclosure Schedule.

                      (e)  Paradigm,  OBF and  Redman  shall  each  use its best
efforts to effectuate the  transactions  contemplated  hereby and to fulfill and
cause to be fulfilled the conditions to closing under this Agreement.

                      (f)  Redman  and OBF  shall  take all  reasonable  actions
necessary to comply promptly with all legal requirements which may be imposed on
OBF with  respect  to this  transaction  and will  promptly  cooperate  with and
furnish information to Paradigm in connection with any such requirements imposed
upon OBF, Paradigm or any other party in connection with this  transaction.  OBF
shall take all  reasonable  actions to obtain (and to cooperate with Paradigm in
obtaining) a consent, authorization,  order or approval of, or any exception by,

                                      -18-

<PAGE>

any Governmental Entity, required to be obtained or made by OBF (or by Paradigm)
in connection with this transaction or the taking of any action contemplated, by
this  Agreement,   and  to  defend  all  lawsuits  or  other  legal  proceedings
challenging this Agreement or the consummation of the transactions  contemplated
by this  Agreement  and to  defend  all  lawsuits  or  other  legal  proceedings
challenging this Agreement or the consummation of the transactions  contemplated
hereby,  to lift or rescind any injunction or  restraining  order or other order
adversely  affecting the ability or the parties to consummate  the  transactions
contemplated  hereby, and to effect all necessary  registrations and filings and
submissions or information  required by any Governmental  Entity, and to fulfill
all conditions to this Agreement.

                      (g) Paradigm shall take all reasonable  actions  necessary
to comply promptly with all legal  requirements  which may be imposed on it with
respect  to this  transaction  and will  promptly  cooperate  with  and  furnish
information to OBF in connection with this  transaction.  Paradigm and OBF shall
take all  reasonable  actions to obtain (and to cooperate with OBF in obtaining)
and  consent,  authorization,  order  or  approval  of,  or  exemption  by,  and
Governmental  Entity  required  to be  obtained  or  made  by  OBF or any of its
subsidiaries action  contemplated by this Agreement,  and to defend all lawsuits
or other legal proceedings challenging this Agreement or the consummation of the
transactions   contemplated   hereby  to  lift  or  rescind  any  injunction  or
restraining order or other order adversely  affecting the ability of the parties
to consummate the transaction  contemplated  hereby, and to effect all necessary
registrations  and  filings  and  submissions  of  information  required  by any
Governmental Entity, and to fulfill all conditions to this Agreement.

                      (h)  Redman and OBF shall give  Paradigm  and its  agents,
full and complete access to all books, records,  personnel,  properties,  assets
and  facilities  of OBF for  Paradigm's  inspection  and due  diligence,  in its
discretion and Paradigm may make copies of documents and information  subject to
Section 11.18 below.

                                   ARTICLE VII

                              CONDITIONS PRECEDENT

            7.1   Conditions   to  Each  Party's   Obligation   to  Effect  This
Transaction.  The respective obligation of each party to effect this transaction
shall be  subject to the  satisfaction  prior to the  Closing  of the  following
conditions:

                      (a)  Legal  Action.   No  temporary   restraining   order,
preliminary  injunction or permanent  injunction or other order  preventing  the
consummation  of this  transaction  shall have been  issued by any  Governmental
Entity and remain in effect,  and no litigation seeking the issuance of such and
order or injunction,  or seeking relief against OBF,  Redman or Paradigm if this
transaction is  consummated,  shall be pending which, in the good faith judgment
of OBF's  governing  entity or  Paradigm's  Board of Directors  (acting upon the
written  opinion  of  their   respective   outside  counsel)  has  a  reasonable
probability  of  resulting in such order,  injunction  or relief and such relief
would have a material adverse effect on the Business Condition of such party. In
the event any such order or injunction shall have been issued, each party agrees
to use commercially reasonable efforts to have an such injunction lifted.

                                      -19-

<PAGE>

                      (b)  Statutes.  No action  shall have been  taken,  and no
statute,  rule,  regulation  or order shall have been  enacted,  promulgated  or
issued or deemed applicable to this transaction by any Governmental Entity which
would (i) make the  consummation  of this  transaction  illegal,  (ii)  prohibit
Paradigm's or OBF's  ownership or operation of all or a material  portion of the
business or assets of OBF,  or Paradigm or compel  Paradigm or OBF to dispose of
or hold separate all or a material  portion of the business or assets of OBF, or
Paradigm, as a result of this transaction or (iii) render Paradigm or OBF unable
to consummate this transaction, except for any waiting period provisions.

            7.2  Conditions  to  Obligations  of Paradigm.  The  obligations  of
Paradigm  to effect this  transaction  are  subject to the  satisfaction  of the
following conditions, unless waived by Paradigm:

                      (a)  Representations  and Warranties.  The representations
and warranties of OBF set forth in this Agreement  (determined without regard to
any materiality  qualifiers,  including  without  limitation  "material  adverse
effect")  shall  be true  and  correct  in all  respects  as of the date of this
Agreement  and as of the  Closing  Date,  unless  any  failures  to be true  and
correct,  individually or in the aggregate, do not have and could not reasonably
be expected to have a material adverse effect on the Business  Condition of OBF;
and there shall have been no wilful breach by OBF of any of its  representations
or warranties made in this Agreement. Paradigm shall have received a certificate
signed by the Managing Director of OBF to such effect on the Closing Date.

                      (b) No Material  Adverse Change.  There shall have been no
material  adverse change in the Business  Condition of OBF from the date of this
Agreement   through  the  Closing  Date  and  Paradigm  shall  have  received  a
certificate signed by the Managing Director of OBF to such effect on the Closing
Date.

                      (c)  Performance of Obligations of Redman and OBF.  Redman
and OBF shall have  performed  all  obligations  and  covenants  required  to be
performed by it under this  Agreement  prior to the Closing  Date,  and Paradigm
shall have received a certificate signed by the Managing Director of OBF to such
effect on the Closing Date.

                      (d) Regulatory  Approvals.  All authorizations,  consents,
orders or approvals of, or  declarations  of, or declarations or filing with, or
expiration of waiting periods imposed by, any Governmental  Entity necessary for
the  consummation  of the  transactions  contemplated  by this Agreement and the
transactions referred to in Article I above shall have been obtained.

                      (e) Consents.  Paradigm  shall have received duly executed
copies  of  all  material  third-party  non-regulatory  consents  and  approvals
contemplated by this Agreement or the OBF/Redman Disclosure Schedule in form and
substance reasonably satisfactory to Paradigm.

                                      -20-

<PAGE>

                      (f)  Resignation  of Governing  Personnel.  The  governing
personnel  of OBF in office  immediately  prior to the  Closing  Date shall have
resigned effective as of the Closing Date.

                      (g) Legal Opinion. Paradigm shall have received an opinion
of OBF's legal  counsel,  in form and substance  acceptable to Paradigm,  to the
effect that:

                                (i) this  Agreement  has been  duly  authorized,
executed and delivered by Redman and OBF and  constitutes  the valid and binding
obligations of Redman and OBF, and all corporate  action  required by Redman and
OBF in order to effect the transactions contemplated hereby has been taken;

                                (ii) OBF is a  registered  limited  company duly
organized  and validly  existing in good  standing  under the laws of the United
Kingdom and is duly authorized to conduct its business as presently conducted;

                                (iii)  the  authorized   capital  stock  of  OBF
consists of 10,000 ordinary shares of stock and there are 10,000 ordinary shares
of OBF stock  issued  and  outstanding,  all of which are owned by  Redman.  All
issued and outstanding OBF Shares have been duly authorized,  validly issued and
are fully-paid and nonassessable;

                                (iv)  upon  delivery  to  Paradigm  of the stock
certificates evidencing all of the issued and outstanding OBF Shares, said stock
will be free and  clear of all  liens,  claims,  encumbrances  or other  adverse
interests; and

                                (v) neither the execution and delivery by Redman
or OBF of this Agreement, nor the compliance by Redman or OBF with the terms and
provisions hereof, will conflict with or result in a breach of any of the terms,
conditions or provisions  of the  governing  instrument  with respect to OBF, or
with any judgment, order, injunction, decree, law, statute, regulation or ruling
with or of any court or  governmental  entity to which Redman or OBF is subject,
or will constitute a default thereunder.

                      In rendering  such opinion,  such counsel may rely, to the
extent  such  counsel  deems  such  reliance  necessary  or  appropriate,   upon
certificates of public officials or of any officer or officers of Redman or OBF,
provided  the extent of such  reliance is specified in such opinion and executed
copies of such opinions and certificates are furnished to Paradigm.

            7.3  Conditions to  Obligations of Redman and OBF. The obligation of
Redman and OBF to effect this  transaction is subject to the satisfaction of the
following conditions unless waived by Redman and OBF:

                                      -21-

<PAGE>

                      (a)  Representations  and Warranties.  The representations
and warranties of Paradigm set forth in this Agreement shall be true and correct
in all material respects (except for such  representations  and warranties which
are   qualified   by  their  terms  by  a  reference   to   materiality,   which
representations and warranties as so qualified shall be true in all aspects) (i)
as of the date of this Agreement, and (ii) as of the Closing Date as though made
on and as of each such date, except as otherwise contemplated by this Agreement,
and OBF shall have received a certificate  signed by the chief executive officer
and the chief financial officer of Paradigm to such effect.

                      (b) Performance of Obligations of Paradigm. Paradigm shall
have performed all  obligations  and covenants  required to be performed by them
under this  Agreement  prior to the Closing Date,  and Redman and OBF shall have
received a certificate  signed by the President and Chief  Executive  Officer of
Paradigm to such effect.

                      (c) Legal  Opinion.  Redman shall have received an opinion
of Paradigm's legal counsel,  in form and substance  satisfactory to Redman,  to
the effect that:

                                (i) Paradigm is a  corporation  duly  organized,
validly  existing and in good  standing  under the laws of the State of Delaware
with all requisite corporate power and corporate  authority to execute,  deliver
and perform this Agreement;

                                (ii) the execution,  delivery and performance of
this  Agreement by Paradigm will not conflict with any of the terms,  provisions
or conditions of the Certificate of Incorporation or the Bylaws of Paradigm;

                                (iii) the execution, delivery and performance of
this Agreement has been duly authorized by all necessary corporate action on the
part of Paradigm and is  enforceable  against  Paradigm in  accordance  with its
terms,  except  as  enforcement  may  be  limited  by  bankruptcy,   insolvency,
reorganization,  moratorium or similar laws or equitable  principles relating to
or limiting creditor's rights generally.

                      In rendering  such  opinion such counsel may rely,  to the
extent  such  counsel  deems  such  reliance  necessary  or  appropriate,   upon
certificates  of public  officials  or of any officer or  officers of  Paradigm,
provided  the extent of such  reliance is specified in such opinion and executed
copies of such certificates are furnished to Redman.

                      (d) Payment of Purchase Consideration.  Paradigm shall pay
the Purchase Consideration as required in Section 1.2 of this Agreement.

                                      -22-

<PAGE>

                                  ARTICLE VIII

                                   TERMINATION

            8.1       Termination.

                      (a) This  Agreement may be terminated at any time prior to
the Closing Date:

                                (i) by mutual written agreement of Paradigm, OBF
and Redman;

                                (ii) by Paradigm,  if there has been a breach by
OBF or Redman of any representation,  warranty,  covenant or agreement set forth
in this  Agreement  on the part of OBF or Redman which is material and which OBF
or Redman fails to cure within three (3) business  days after notice  thereof is
given by Paradigm  (except that no cure period shall be provided for a breach by
OBF or Redman which by its nature cannot be cured);

                                (iii)  by OBF or  Redman,  if  there  has been a
breach by Paradigm of any  representation,  warranty,  covenant or agreement set
forth in this  Agreement  on the part of Paradigm  which is  material  and which
Paradigm  fails to cure within three (3) business  days after notice  thereof is
given by OBF  (except  that no cure  period  shall be  provided  for a breach by
Paradigm which by its nature cannot be cured);

                                (iv)  by  Paradigm,   OBF  or  Redman,  if  this
transaction shall not have been consummated on or before June 20, 2000.

                      (b) Where  action  is taken to  terminate  this  Agreement
pursuant  to this  Section  8.1 it shall be  sufficient  for such  action  to be
authorized  by the Board of  Directors  or other  governing  entity of the party
taking such action.

                      (c) In the  event  of  termination  of this  Agreement  as
provided in this Section,  the  provisions  of this  Agreement  shall  forthwith
become  void,  except that the  agreements  contained or referred to in Sections
11.15 (expenses),  11.16 (brokers,  finders),  11.17 (public  announcements) and
11.18  (confidentiality)  shall survive.  Notwithstanding the foregoing,  in the
event of a breach of this  Agreement by any party hereto,  nothing  herein shall
limit the remedies at law or in equity of the other party with respect thereto.

                                   ARTICLE IX

                                 INDEMNIFICATION

            9.1  Obligation  of  Redman  To  Indemnify.   Subject  to  the  time
limitations set forth in Section 9.1 below,  Redman agrees to indemnify,  defend
and hold harmless Paradigm and its respective  directors,  officers,  employees,
agents, subsidiaries,  affiliates,  successors and assigns, from and against all
losses,  liabilities,   claims,  damages,  deficiencies,   costs  and  expenses,
including  without  limitation  interest,  penalties  and  attorneys'  fees  and
disbursements (collectively, the "Losses" and singularly, a "Loss"), based upon,

                                      -23-

<PAGE>

arising out of or otherwise  related to any  inaccuracy  in or any breach of any
representation,  warranty,  covenant or agreement of OBF or Redman  contained in
this  Agreement or in any document or other  papers  delivered  pursuant to this
Agreement  and in respect of any third party claim made based upon facts alleged
which,  if true,  would have  constituted  any such  inaccuracy  or breach.  For
purposes of this Agreement,  Paradigm shall be deemed to have suffered a Loss if
and to the extent that such Loss has been suffered by OBF.

            9.2       Notice and Opportunity to Defend.

                      (a) Notice of Asserted  Liability.  Promptly after receipt
by any person entitled to indemnity under this Agreement (the  "Indemnitee")  of
notice of any  demand,  claim or  circumstances  which,  with the lapse of time,
would  or  might  give  rise  to a  claim  or  the  commencement  or  threatened
commencement  of  any  action,   proceeding  or   investigation   (an  "Asserted
Liability")  that may result in a Loss, the Indemnitee may, at its option,  give
notice thereof (the "Claims Notice") to Redman (the "Indemnifying  Party").  The
Claims Notice shall describe the Asserted  Liability in reasonable  detail,  and
shall indicate the amount (estimate, if necessary and to the extent feasible) of
the Loss that has been or may be suffered by the Indemnitee.

                      (b)  Opportunity  To Defend.  The  Indemnifying  Party may
elect to  compromise or defend,  at its own expense and by its own counsel,  any
Asserted  Liability.  If the  Indemnifying  Party elects to compromise or defend
such  Asserted  Liability,  it shall  within  thirty  (30) days after the Claims
Notice is given or sooner, if the nature of the Asserted  Liability so requires,
notify  the  Indemnitee  of  its  intent  to do so,  and  the  Indemnitee  shall
cooperate,  at the expense of the  Indemnifying  Party, in the compromise of, or
defense against,  such Asserted Liability.  If the Indemnifying Party elects not
to compromise or defend the Asserted  Liability,  fails to notify the Indemnitee
of its election as herein provided or contests its obligation to indemnify under
this  Agreement,  the  Indemnitee  may pay,  compromise  or defend such Asserted
Liability. Notwithstanding the foregoing, neither the Indemnifying Party nor the
Indemnitee  may settle or compromise  any claim over the objection of the other,
provided,  however,  that  consent  to  settlement  or  compromise  shall not be
unreasonably  withheld.  In any event, the Indemnitee and the Indemnifying Party
may  participate,  at  their  own  expense,  in the  defense  of  such  Asserted
Liability. If the Indemnifying Party chooses to defend any claim, the Indemnitee
shall make  available  to the  Indemnifying  Party any  books,  records or other
documents within its control that are necessary or appropriate for such defense.

                      (c) Disputes with Third Parties.  Anything in this Section
9.2(c) to the contrary notwithstanding, in the case of any Asserted Liability by
any supplier, distributor,  agent, broker, shareholder,  franchisee, customer or
other  third party doing  business  with OBF prior to the Closing in  connection
with which Paradigm may make a claim against Redman for indemnification pursuant
to this Section 9.2(c),  Paradigm may, at its option,  give a Claims Notice with
respect thereto but, unless Paradigm and the Indemnifying Party otherwise agree,
Paradigm shall have the exclusive right at its option to defend any such matter,
subject to the duty of Paradigm to consult with the  Indemnifying  Party and its
attorneys in connection with such defense and provided that no such matter shall
be  compromised  or  settled  by  Paradigm  without  the  prior  consent  of the
Indemnifying  Party,  which  consent  shall not be  unreasonably  withheld.  The

                                      -24-

<PAGE>

Indemnifying  Party  shall have the right to  recommend  in good faith  Paradigm
proposals  to  compromise  or settle  claims  brought by a supplier,  agent,  or
customer,   and  Paradigm  agrees  to  present  such  proposed   compromises  or
settlements to such supplier, distributor,  shareholder, franchisee or customer.
All amounts  required to be paid in connection with any such Asserted  Liability
pursuant to the  determination of any court,  governmental or regulatory body or
arbitrator,  and all  amounts  required to be paid in  connection  with any such
compromise or settlement  consented to by the Indemnifying Party, shall be borne
and paid by the  Indemnifying  Party.  The parties agree to cooperate fully with
one another in the defense,  compromise or settlement of any Asserted Liability.
In the event any  compromise,  settlement or judgment  amount  includes  amounts
resulting  from  frivolous or groundless  claims or defenses made by Indemnitee,
the  Indemnifying  Party  shall not bear the  portion  of the  amount to be paid
relating to such frivolous or groundless claims.

                                    ARTICLE X

                                REPURCHASE OPTION

            10.1 Option to Repurchase Rights to Flow Analyzer, Inc. Redman shall
have the  option  to  repurchase  all  rights to the Blood  Flow  Analyzer  from
Paradigm for the total Purchase Consideration of 100,000 Paradigm Shares and the
payment  of an amount  equal to the cash paid to Redman at Closing  pursuant  to
Sections  1.2(ii) and 1.2(iii) in the event  Paradigm does not sell at least 500
Blood Flow  Analyzers  during the five (5) year period  beginning on the Closing
Date.

                                   ARTICLE XI

                               GENERAL PROVISIONS

            11.1  Survival  of   Representations,   Warranties,   Covenants  and
Agreements.   Except  as  provided  below  with  regard  to  Section  3.15,  all
representations,  warranties,  covenants and  agreements in this Agreement or in
any document or instrument  delivered pursuant to this Agreement shall be deemed
to be conditions to this  transaction and shall survive the consummation of this
transaction  for a period of  twenty-four  (24) months  after the Closing  Date.
Notwithstanding  the foregoing,  except as provided below with regard to Section
3.15, all  representations,  warranties,  covenants and agreements shall survive
the Closing Date for forty-eight  (48) months following the Closing Date if such
representations,  warranties, covenants and agreements are breached due to fraud
or gross  negligence.  Notwithstanding  the foregoing,  the tax  obligations set
forth in Section 3.15 above shall survive the  consummation of this  transaction
and the Closing Date for an indefinite period of time.

            11.2 Amendment. This Agreement may be amended by the parties hereto,
by action taken by their respective Boards of Directors or governing  personnel,
at any time  before or after  approval  of this  transaction  by OBF;  provided,
however, that following approval of this transaction by OBF, no amendment hereto
shall be made that by law requires the further approval of OBF without obtaining
such further approval. This Agreement may not be amended except by an instrument
in writing signed on behalf of both of the parties hereto.

                                      -25-

<PAGE>

            11.3 Extension;  Waiver. At any time prior to the Closing Date, OBF,
Redman and Paradigm,  by action taken by their respective Boards of Directors or
governing personnel, may, to the extent legally allowed, (i) extend the time for
the performance of any of the obligations or other acts of the other, (ii) waive
any  inaccuracies  in the  representations  and warranties  made to it contained
herein or in any  document or  instrument  delivered  pursuant  hereto and (iii)
waive  compliance with any of the agreements or conditions for the benefit of it
contained  herein.  Any agreement on the part of either party hereto to any such
extension or waiver shall be valid only if set forth in an instrument in writing
signed by such party.

            11.4 Notices. All notices and other  communications  hereunder shall
be in writing and shall be deemed  given if  delivered  personally  or mailed by
registered or certified mail (return receipt  requested) or if sent by telecopy,
confirmation received, to the respective party at the following addresses and/or
telecopy  numbers,  with the  original  thereof  being mailed by  registered  or
certified mail,  return receipt  requested (or at such other address or telecopy
number for the parties hereto as shall be specified by like notice):

                  (a) If to Paradigm, to:

                                Paradigm Medical Industries, Inc.
                                2355 South 1070 West
                                Salt Lake City, Utah 84119
                                United States of America
                                Attn: Thomas F. Motter, President
                                    and Chief Executive Officer
                                Facsimile No.: (801) 977-8973
                                With a copy to:

                                Mackey Price & Williams
                                170 South Main Street, Suite 900
                                Salt Lake City, Utah 84101-1655
                                Attn:  Randall A. Mackey, Esq.
                                Facsimile No.:  (801) 575-5006

                      (b)       If to Redman or OBF, to:

                                Unit 5, Malmesbury Business Park
                                Beuttell Way, Malmesbury
                                Wiltshire 5N16 9JU
                                England
                                Attn: Malcolm Redman
                                Facsimile No.: 011 441 666 823763

                                      -26-

<PAGE>

             11.5 Interpretation.  When a reference is made in this Agreement to
Sections  or  Exhibits,  such  references  shall be deemed to be to a Section or
Exhibit to this Agreement,  unless  otherwise  indicated.  The words  "include",
"includes" and  "including"  when used herein shall be deemed in each case to be
followed by the words "without  limitation".  The Table of Contents and headings
contained in this Agreement are for reference purposes only and shall not affect
in any way the meaning or interpretation of this Agreement.

            11.6  Counterparts.  This  Agreement  may be executed in one or more
counterparts, all of which, when taken together, shall be considered one and the
same  agreement,  and this  Agreement  shall become  effective  when one or more
counterparts have been signed by each of the parties hereto and delivered to the
other parties hereto.

            11.7  Entire  Agreement.   This  Agreement  and  the  documents  and
instruments  attached  hereto as Exhibits and all other  agreements  between the
parties  hereto  delivered  pursuant  to this  Agreement  constitute  the entire
agreement  between the parties  hereto with respect to the subject matter hereof
and supersede all prior  agreements and  understandings,  both written and oral,
between the parties hereto with respect to the subject matter hereof and are not
intended  to confer  upon any other  person or  entity  any  rights or  remedies
hereunder except as otherwise expressly provided herein.

            11.8 No Transfer.  This Agreement and the rights and obligations set
forth herein may not be transferred or assigned by operation of law or otherwise
without the consent of both parties  hereto.  This Agreement is binding upon and
will inure to the benefit of each party hereto and their  respective  successors
and permitted assigns.

            11.9  Severability.  If any  provision  of  this  Agreement,  or the
application thereof, is for any reason whatsoever and to any extent deemed to be
invalid or  unenforceable,  the remainder of this Agreement and the  application
thereof to other persons,  entities or  circumstances  will be interpreted so as
reasonably  to effect the  intent of the  parties  hereto.  The  parties  hereto
further  agree to  replace  any such  void or  unenforceable  provision  of this
Agreement  with a valid and  enforceable  provision  that will  achieve,  to the
extent  possible,  the  economic,  business  and other  purposes  of the void or
unenforceable provision hereof.

            11.10 Other Remedies.  Except as otherwise  provided herein, any and
all  remedies  herein  expressly  conferred  upon a party  hereto will be deemed
cumulative  with, and not exclusive of, any other remedy  conferred hereby or by
law or  equity  on such  party;  and the  exercise  of any one  remedy  will not
preclude  the  exercise of any other  remedy  otherwise  available  at law or in
equity.

            11.11  Further  Assurances.  Both parties  hereto agree to cooperate
fully with other party hereto and to execute such further instruments, documents
and agreements and to give such further written  assurances as may be reasonably
requested  by the  other  party  hereto in order to  evidence  and  reflect  the
transactions  described herein and contemplated  hereby and to carry into effect
the intents and  purposes of this  Agreement,  including  any merger of OBF with
Paradigm or any entity following the Closing.

                                      -27-

<PAGE>

            11.12  No Third  Party  Beneficiary  Rights.  No  provision  of this
Agreement is intended, nor will any provision hereof be interpreted,  to provide
or create any third  party  beneficiary  rights or any other  rights of any kind
whatsoever in any client, customer, supplier affiliate,  stockholder,  employee,
distributor,  partner of either party hereto or any other person or entity,  and
all of the  provisions  hereof  shall be deemed  to be  personal  in nature  and
between the parties to this Agreement.

            11.13  Mutual  Drafting.  This  Agreement  is the joint  product  of
Paradigm,  Redman and OBF,  and each  provision  hereof has been  subject to the
mutual consultation, negotiation and agreement of Paradigm and Redman, and shall
not be construed for or against either party hereto.

            11.14  Governing  Law.  This  Agreement  shall  be  governed  in all
respects,  including  validity,  interpretation  and effect,  by the laws of the
State of Delaware, without giving effect to its choice of law principles.

            11.15 Expenses.  All costs and expenses  incurred in connection with
this  Agreement and the  transactions  contemplated  hereby and thereby shall be
paid by the party incurring such costs and expenses.

            11.16 Brokers or Finders.  Paradigm,  Redman and OBF each represent,
as to itself and, to the extent  applicable,  its subsidiaries,  that, no agent,
broker,  investment  banker or other firm or person is, or will be,  entitled to
any  broker's  or  finder's  fee or  any  other  commission  or  similar  fee in
connection with any of the transactions contemplated by this Agreement.

            11.17  Public  Announcements.  Each  party  hereto  will  consult in
advance with the other  concerning the timing and content of any  announcements,
press releases and public  statements  concerning this  transaction and will not
make any such  announcement,  press  release  or public  statement  without  the
other's  prior  consent;  provided,  however,  that Paradigm may make any public
statement or announcement  concerning this transaction without OBF's or Redman's
prior consent if, in the opinion of counsel for Paradigm,  such public statement
or announcement is required or advisable to comply with applicable law.

            11.18  Confidentiality.  No party  hereto  shall  release,  publish,
reveal  or  disclose,   directly  or  indirectly,   any  business  or  technical
information of the other party hereto or any of its  Subsidiaries  considered by
the  other  party as  "confidential",  "secret"  or  "proprietary"  (or words of
similar meaning) including,  but not limited to, systems,  processes,  formulas,
recipes,  data,  functional  specifications,  computer  programs,  blue  prints,
know-how,   improvements,   discoveries,   developments,   designs,  inventions,
techniques,  new  products,  marketing  and  advertising  methods,  distribution
methods  and  programs,  supplier  agreements,  customer or  distributor  lists,
pricing policies,  financial information,  projections,  forecasts,  strategies,
budgets  or other  information  related  to its  business  or its  distributors,
suppliers or customers (collectively,  "Confidential  Material"),  except to the
party's  directors,  officers,  employees,  financial  advisors,  legal counsel,
independent public accountants or other agents,  advisors or representatives who
shall require  access thereto on a  "need-to-know"  basis for the purpose of the

                                      -28-

<PAGE>

transactions contemplated by this Agreement and who shall agree in writing to be
bound by the terms of this Section  11.18.  The parties hereto agree to take all
reasonable  precautions  to safeguard the  confidentiality  of the other party's
Confidential  Material  and to exercise  the same degree of care with respect to
such other  party's  Confidential  Material that the party in possession of such
Confidential   Material   exercises   with  respect  to  its  own   confidential
information.  Neither  party hereto  shall make or permit to be made,  except in
furtherance of the  transactions  contemplated  by this  Agreement,  any copies,
abstracts or summaries of the other party's Confidential  Material. In addition,
all  Confidential  Material  belonging  to the other party  hereto shall be used
solely for the purpose of the investigation and evaluation  contemplated by this
Section 11.18,  and shall not be used for any other  purpose,  including any use
that would be to the  detriment of the other party  hereto or its  Subsidiaries,
nor shall such Confidential Material be used in competition with the other party
hereto or its  Subsidiaries.  The  restrictions  on  disclosure  of  information
contained in this  Section  11.18 do not extend to any  information  that (a) is
already known to the receiving party;  (b) was or is independently  developed by
the receiving  party;  (c) is now or hereafter  becomes  available to the public
other than as a consequence of a breach of obligations  under this Section 11.18
or (d) is disclosed to third parties  hereto  outside of the receiving  party in
accordance with terms approved by the disclosing  party.  Upon written  request,
the parties hereto shall return all writings, documents and materials containing
Confidential  Material with a letter  confirming that all copies,  abstracts and
summaries of the Confidential  Material have been returned or destroyed.  In the
event that either party hereto  becomes  legally  required to disclose the other
party's  Confidential  Material,  it shall  provide such other party with prompt
written notice of such requirement prior to such disclosure. In the event that a
protective  order or other  remedy is not  obtained,  or such other party waives
compliance  with the  provisions  of this  Section  11.18  with  respect  to the
Confidential Material subject to such requirement,  such party agrees to furnish
only that portion of the  Confidential  Material that it is legally  required to
furnish  and,  where  appropriate,  agrees  to use its best  efforts  to  obtain
assurances  that  such  Confidential  Material  will  be  accorded  confidential
treatment.

            11.19  Attorneys' Fees. In the event any legal action or arbitration
or other  proceeding  is brought for the  enforcement  of this  Agreement  or in
connection  with any other  provisions of this  Agreement,  the  successful  and
prevailing party or parties shall be entitled to reasonable  attorneys' fees and
other costs incurred in such action or proceeding.

                  [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

                                      -29-

<PAGE>

            IN WITNESS  WHEREOF,  Paradigm,  OBF and the Redman have each caused
this Agreement to be signed effective as of the date first written above.

OCULAR BLOOD FLOW, LTD.                        PARADIGM MEDICAL INDUSTRIES, INC.

By: /s/ Malcolm Redman                         By:/s/ Thomas F. Motter
----------------------                         -----------------------
Its: Managing Director                         Its: CEO
----------------------                         --------

 /s/ Malcolm Redman
-------------------
Malcolm Redman

                                      -30-

<PAGE>

                                  EXHIBIT INDEX

            Exhibit 3                       OBF/Redman Disclosure Schedule

            Exhibit 5                       Paradigm Disclosure Schedule

                                     ANNEXES

            Annex I                         Royalty Agreement

            Annex II                        Registration Rights Agreement

                                      -31-

<PAGE>

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