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SETTLEMENT AGREEMENT
 
THIS SETTLEMENT AGREEMENT is made as of May 20, 2005
 
A M O N G:
 
OCCULOGIX, INC., a corporation incorporated under the laws of the State of
Delaware
 
(hereinafter referred to as the “Corporation”)
 
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DAVID CRAIG ELDRIDGE, O.D., an individual resident in the City of Bixby in the
State of Oklahoma
 
(hereinafter referred to as “Dr. Eldridge”)
 
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DAVID C. ELDRIDGE O.D., P.C., a professional corporation incorporated under the
laws of the State of Oklahoma
 
(hereinafter referred to as “Eldridge PC”)
 
WHEREAS, under the Vascular Sciences Corporation 2002 Stock Option Plan,
Vascular Sciences Corporation (now the Corporation) granted to Dr. Eldridge
36,924 options as of October 1, 2002 (the “Options”), each of which is
exercisable into one share of common stock of the Corporation;
 
AND WHEREAS the Options were granted to Dr. Eldridge in partial consideration of
the consulting services that he provided to Vascular Sciences Corporation, at
the direction of Eldridge PC, in fulfillment of Eldridge PC’s obligations under
the Consulting Agreement, dated as of October 1, 2002, between Vascular Sciences
Corporation and Eldridge PC (the “Consulting Agreement”);
 
AND WHEREAS the Options were granted to Dr. Eldridge pursuant to a notice of
grant of stock option and a related stock option agreement entered into on March
24, 2004 (collectively, the “Option Agreement”);
 
AND WHEREAS the Option Agreement provides that the per share exercise price of
the Options is U.S.$1.30;
 

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AND WHEREAS Dr. Eldridge has indicated that the Option Agreement does not
express accurately the business agreement that he and Vascular Sciences
Corporation had reached regarding the equity portion of the consideration
payable to him under the Consulting Agreement in that the management of Vascular
Sciences Corporation had represented to him, at the time of the entering into of
the Option Agreement, that he would be issued 36,924 shares of common stock of
Vascular Sciences Corporation or, alternatively, 36,924 options, each of which
would be exercisable into one share of common stock of Vascular Sciences
Corporation, with a nil per share exercise price;
 
AND WHEREAS, upon the recommendation of the Corporation’s management, the board
of directors of the Corporation has concluded that it would be in the best
interests of the Corporation to put Dr. Eldridge in substantially the same
position in which he would be if the Option Agreement reflected his
understanding of the business agreement between him and Vascular Sciences
Corporation regarding the equity portion of the consideration payable to him
under the Consulting Agreement;
 
AND WHEREAS the Options remain issued and outstanding and are currently
exercisable but unexercised;
 
NOW THEREFORE in consideration of the mutual covenants and agreements contained
herein, and other good and valuable consideration, the receipt of which is
hereby acknowledged, the Corporation, Dr. Eldridge and Eldridge PC hereby agree
as follows:
 
 

1.
In full and complete settlement of the disagreement that has arisen between Dr.
Eldridge and the Corporation regarding the equity portion of the consideration
payable to him under the Consulting Agreement, the Corporation hereby agrees to
pay Eldridge PC U.S.$48,000 in cash (the “Settlement Amount”) on the date
hereof.

 

2.
Dr. Eldridge and Eldridge PC hereby direct the Corporation to send the
Settlement Amount, by wire transfer, to the bank account of Eldridge PC, the
relevant particulars of which have been provided to the Corporation previously.

 

3.
Each of the parties hereto hereby acknowledges and agrees that the Option
Agreement remains in full force and effect in its entirety, unamended, and is
enforceable against the parties thereto in accordance with its terms. Without
limiting the generality of the immediately foregoing sentence, Dr. Eldridge and
Eldridge PC hereby acknowledge and agree that the Options are currently
exercisable but unexercised and that each of them has a per share exercise price
of U.S.$1.30.

 

4.
Each of Dr. Eldridge and Eldridge PC hereby acknowledges and agrees that the
Corporation has performed, fulfilled and discharged fully and completely all of
its obligations under the Consulting Agreement and hereby remises, releases and
forever discharges the Corporation and its present and former directors,
officers, agents, servants and employees (collectively, the “Releasees”) of and
from any and all actions, causes of action, suits, debts, claims, covenants and
demands, whatsoever, known or unknown, suspected or unsuspected, which any of
Dr. Eldridge or Eldridge PC ever had, now has or may hereafter have against the
Releasees, or any of them, (i) for or by reason of the Consulting Agreement,
(ii) in any way arising out of any cause, matter or thing existing up to the
date hereof relating to the Consulting Agreement or (iii) arising directly or
indirectly by reason of, or as a consequence of, the Consulting Agreement.

 
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5.
Each of the parties hereto hereby agrees to do, execute, acknowledge and
deliver, or to cause to be done, executed, acknowledged and delivered, such
further acts, documents and instruments as may be reasonably necessary to
accomplish the intent of this Settlement Agreement.

 

6.
This Settlement Agreement shall be governed by, and construed in accordance
with, the laws of the State of Delaware without regard to the conflicts of law
principles applicable under such laws.

 

7.
This Settlement Agreement may be signed by facsimile and in counterpart, and
each such counterpart will constitute an original document, and such
counterparts, taken together, will constitute one and the same instrument.

 
IN WITNESS WHEREOF the parties hereto have executed this Agreement as of the
date first written above.
 

       
OCCULOGIX, INC.
 
   
   
    By:   /s/ 
William G. Dumencu
 

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William G. Dumencu
 
Chief Financial Officer and Treasurer

      Witness:    
   
   
  /s/ John A Walsh          /s/ David Craig Eldridge

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Signature of witness: David Craig Eldridge     John A Walsh  

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Name of witness:
(Please print name.)
     

       
DAVID C. ELDRIDGE, O.D., P.C.
 
   
   
    By:   /s/ David Craig Eldridge  

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David Craig Eldridge
 
President

 
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