ZILA INC
OFFER LETTER
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<DESCRIPTION>OFFER LETTER
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<TITLE>Offer letter</TITLE>
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  <p align=right><font size=2 face="Times New Roman"><b><u>Exhibit 10-G</u></b></font></p> <p align=right> <font size=2 face="Times New Roman">January 27, 2003 &#160; </font></p> <p> <font size=2
face="Times New Roman">Mr. Lawrence J. Batina<br> 233&#189; Granada Ave., Apt. B<br> Long Beach, California 90803</font></p> <p> <font size=2 face="Times New Roman">Dear Larry:</font></p> <p> <font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;We are pleased to extend this offer to you to become the Zila, Inc.&#146;s Vice President, Chief Financial Officer and Secretary, pursuant to Board approval,
reporting directly to me.&#160; The particulars of the offer are as follows:</font></p>
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<td width="6%" valign="top"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">&#149;</font></Div> </td>
<td width="20%" valign="top"> <p> <font size=2 face="Times New Roman">Start date:</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p> <font size=2 face="Times New Roman">February 24, 2003</font></p> </td> </tr>
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<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
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<td width="3%" valign="top"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="6%" valign="top"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">&#149;</font></Div> </td>
<td width="20%" valign="top"> <p> <font size=2 face="Times New Roman">Orientation Process:</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p> <font size=2 face="Times New Roman">You will be required to complete an orientation process and to execute agreements relating to Zila&#146;s policies on confidentiality, non-compete, restrictive covenants, and
insider trading.</font></p> </td> </tr>
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<td width="6%" valign="top"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="20%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
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<td width="6%" valign="top"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">&#149;</font></Div> </td>
<td width="20%" valign="top"> <p> <font size=2 face="Times New Roman">Term of Employment:</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p> <font size=2 face="Times New Roman">Zila is not obligated to employ you for any period of time.&#160; Your employment with Zila can be terminated at any time, with or without notice, for any legal reason.</font></p>
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<td width="20%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
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<td width="3%" valign="top"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="6%" valign="top"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">&#149;</font></Div> </td>
<td width="20%" valign="top"> <p> <font size=2 face="Times New Roman">Base Salary:</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p> <font size=2 face="Times New Roman">$185,000 annually paid semi-monthly</font></p> </td> </tr>
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<td width="20%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
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<td width="3%" valign="top"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="6%" valign="top"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">&#149;</font></Div> </td>
<td width="20%" valign="top"> <p> <font size=2 face="Times New Roman">Auto Allowance:</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p> <font size=2 face="Times New Roman">$800 per month</font></p> </td> </tr>
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<td width="6%" valign="top"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="20%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
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<td width="3%" valign="top"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="6%" valign="top"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">&#149;</font></Div> </td>
<td width="20%" valign="top"> <p> <font size=2 face="Times New Roman">Stock Options:</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p> <font size=2 face="Times New Roman">The following proposed stock option plan is subject to approval by the Board of Directors.&#160; If approved:&#160; (1) at the time of your election you will be granted by the
Board 100,000 options to purchase shares, vesting over three years with the first 33,333 options vesting immediately; and (2) one year from date of hire, you will be granted an additional 50,000 options to purchase shares vesting over three years,
with the first 16,667 options vesting at the time of the grant.&#160; If this plan is approved, a stock option plan, including vesting schedule will be mailed to you.</font></p> </td> </tr>
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<td width="6%" valign="top"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">&#149;</font></Div> </td>
<td width="20%" valign="top"> <p> <font size=2 face="Times New Roman">Site Visits:</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p> <font size=2 face="Times New Roman">(2) 4-day trips to Phoenix for you to make living arrangements.</font></p> </td> </tr>
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<td width="20%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
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<td width="3%" valign="top"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="6%" valign="top"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">&#149;</font></Div> </td>
<td width="20%" valign="top"> <p> <font size=2 face="Times New Roman">Temp Housing:</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p> <font size=2 face="Times New Roman">Temporary housing for one month.</font></p> </td> </tr>
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<td width="6%" valign="top"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="20%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
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<td width="3%" valign="top"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="6%" valign="top"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">&#149;</font></Div> </td>
<td width="20%" valign="top"> <p> <font size=2 face="Times New Roman">Relocation:</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p> <font size=2 face="Times New Roman">Realtor fees on the purchase of, if applicable, your new residence in Phoenix, not to exceed 6% of the purchase price.&#160; Associated closing costs for a new home in Phoenix,
not to exceed 2% of</font></p> </td> </tr> </table>

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<td width="65%" valign="top"> <p><font size=2 face="Times New Roman">purchase price. Costs associated with the move of household possessions and one vehicle, at actual professional van line cost, based on the lowest bid from three different
companies.&#160; Reasonable out of pocket travel expenses to fly or drive from California to Arizona. The full relocation and temporary housing package will not exceed $20,000.&#160; Paid in accordance with IRS &amp; payroll regulations.&#160; If
you voluntarily terminate your employment with Zila prior to your one-year anniversary you agree to repay the Company, on a prorated basis (1/12 for each month less than 12 months of employment) the amount of the relocation expenses.</font></p>
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<td width="65%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
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<td width="6%" valign="top"> <Div style="margin-left:10px;text-indent:-10px"> <font size=2 face="Times New Roman">&#149;</font></Div> </td>
<td width="20%" valign="top"> <p> <font size=2 face="Times New Roman">Involuntary Termination:</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p> <font size=2 face="Times New Roman">There are three categories of severance pay applicable to your employment with the Company.&#160; If, under the circumstances of your termination, more than one category of
severance pay applies to you, then the category of severance pay that is most favorable to you will apply.</font></p> </td> </tr>
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<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p><font size=2 face="Times New Roman">1.&#160; <u>Involuntary Termination During the First Year of Employment</u>.<br> If, during the first year of your employment, your employment is involuntarily terminated for any
reason that is not related to your job performance or conduct, Company will continue to pay your regular salary until November 24, 2003 or for a period of three months following your last day of employment, whichever is longer.</font></p> </td>
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<td width="65%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
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<td width="20%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p> <font size=2 face="Times New Roman">2.&#160; <u>Involuntary Termination Due to Relocation, Change in Control, or Close of Business</u>.<br> If, during the first three years of your employment, your employment is
involuntarily terminated due to the relocation of the business outside of the metropolitan Phoenix and surrounding area, a change in control,<sup>1</sup> or a close of Zila, Inc.,<sup>2</sup> Company will continue to pay your regular salary for six
months following your last day of employment.</font></p> </td> </tr> </table> <BR>
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<td width="100%" valign="top"> <p> <font size=2 face="Times New Roman"><sup>1</sup> A &#147;change in control&#148; shall be deemed to have occurred if the conditions set forth in any one of the following paragraphs are satisfied:</font></p> </td>
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<td width="100%" valign="top"> <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the consummation of any consolidation or merger of the Company and, as a result of
such consolidation or merger:&#160; (x) less than 50% of the outstanding common shares and fifty percent 50% of the voting power of the outstanding shares of the surviving or resulting corporation are owned, immediately after such consolidation or
merger, by the owners of the Company's common shares immediately prior to such consolidation or merger; and (y) within two years after the consummation of such consolidation or merger, individuals who were directors of the Company immediately prior
to the public announcement of such consolidation or merger cease to constitute a majority of the Board of Directors of the Company or its successor by consolidation or merger; or</font></p> </td> </tr>
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<td width="100%" valign="top"> <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the consummation of any sale, lease, exchange or other transfer or disposition (in
one transaction or a series of related transactions) of all, or substantially all, of the assets of the Company; or</font></p> </td> </tr>
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<td width="100%" valign="top"> <p> <font size=2 face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the shareholders of the Company shall approve any plan or proposal for the
liquidation or dissolution of the Company.</font></p> </td> </tr>
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<td width="100%" valign="top"> <p><font size=2 face="Times New Roman"><sup>2</sup> A &#147;closing of the business&#148; shall be deemed to have occurred if the business, in its current form, under either the current name or another name, ceases to
operate, whether as a result of bankruptcy, receivership, or otherwise.</font></p> </td> </tr> </table>

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<td width="65%" valign="top"> <p> <font size=2 face="Times New Roman">3.&#160; <u>Involuntary Termination Not Related to Job Performance or Conduct.<br> </u>If, during the first three years of your employment, your employment is involuntarily
terminated for any reason not related to your job performance or conduct, Company will continue to pay your regular salary for three months following the last day of your employment.</font></p> </td> </tr>
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<td width="20%" valign="top"> <p> <font size=2 face="Times New Roman">Termination&#151;voluntary, death, disability, performance or conduct:</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p> <font size=2 face="Times New Roman">If you voluntarily resign your employment, become incapacitated, die, or, at Company&#146;s discretion, are terminated for reasons related to your conduct or job performance,
Company will pay your regular wage through the last day of your employment with Company and you shall not be entitled to any additional compensation.</font></p> </td> </tr>
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<td width="20%" valign="top"> <p> <font size=2 face="Times New Roman">Insurance:</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p> <font size=2 face="Times New Roman">Medical and dental insurance coverage, premium paid by the Company for employee and dependants.&#160; Life, STD, and AD&amp;D insurance coverage, premiums paid by the Company for
the employee.</font></p> </td> </tr>
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<td width="20%" valign="top"> <p> <font size=2 face="Times New Roman">Participation in:</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p> <font size=2 face="Times New Roman">401(k) Plan<br> Employee Stock Purchase Plan<br> Flexible Spending Program/Section 125<br> Credit Union<br> Incentive Bonus Plan of up to 33% of Base</font></p> </td> </tr>
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<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td> </tr>
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<td width="3%" valign="top"> <Div style="margin-left:10px;text-indent:-10px">&nbsp;</Div> </td>
<td width="6%" valign="top"> <Div style="margin-left:10px;text-indent:-10px"><font size=2 face="Times New Roman">&#149;</font></Div> </td>
<td width="20%" valign="top"> <p> <font size=2 face="Times New Roman">Time Off:</font></p> </td>
<td width="5%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="65%" valign="top"> <p> <font size=2 face="Times New Roman">18-day annual personal time off (1<sup>st</sup> through 4<sup>th</sup> year of employment.</font></p> </td> </tr> </table> <p> <font size=2
face="Times New Roman">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The above covers the key elements; by signing this letter it represents your acceptance of our offer.&#160; We are looking forward to having you as a valued member of
Zila&#146;s team!&#160; </font></p>
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<td width="40%" valign="bottom"> <p> <font size=2 face="Times New Roman">Sincerely,</font></p> </td> </tr>
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<td width="60%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
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<td width="60%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="40%" valign="bottom"> <p align=center> <font size=2 face="Times New Roman">/s/ D</font><font size=1 face="Times New Roman">OUG</font> <font size=2 face="Times New Roman">B</font><font size=1 face="Times New Roman">URKETT</font></p> </td>
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<td width="60%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="40%" valign="bottom"> <hr size=1 width="100%" noshade color=black> </td> </tr>
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<td width="60%" valign="top"> <p><font size=2 face="Times New Roman">&nbsp;</font></p> </td>
<td width="40%" valign="bottom"> <p align=center> <font size=1 face="Times New Roman"><b>Dr. Doug Burkett<br> Zila, Inc. President, CEO<br> Chairman</b></font></p> </td> </tr>
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<td width="40%" valign="bottom"> <p align=center><font size=2 face="Times New Roman"> &nbsp;</font></p> </td> </tr> </table> <p><font size=2 face="Times New Roman">Acceptance of the above offer:</font></p>
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<td width="35%" valign="bottom"> <p align=center><font size=2 face="Times New Roman">/s/ L</font><font size=1 face="Times New Roman">AWRENCE</font> <font size=2 face="Times New Roman">J. B</font><font size=1 face="Times New Roman">ATINA</font></p>
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<td width="35%" valign="bottom"> <p align=center><font size=1 face="Times New Roman"><b>Lawrence J. Batina</b></font></p> </td>
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<td width="35%" valign="bottom"> <p align=center><font size=2 face="Times New Roman">&nbsp;<font size="1">January 27, 2003</font></font></p> </td>
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<td width="35%" valign="bottom"> <p align=center><font size=1 face="Times New Roman"><b>Date</b></font></p> </td>
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