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| Issuer:             | Paradigm      Medical Industries, Inc. (PDMI)                                                                                                                                                                                                                                                                                                                                                                                                        |
|---------------------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Investor:           | Fairhills      Capital Offshore                                                                                                                                                                                                                                                                                                                                                                                                                      |
| Instrument:         | Promissory      Note (“Note”)                                                                                                                                                                                                                                                                                                                                                                                                            |
| Amount:             | Fairhills      Capital shall commit to finance $1,800,000 (“Commitment Amount”) through      the purchase of notes from Issuer as follows: $600,000 in notes to be      purchased every three months over a nine month period with the first      purchase of $300,000 to be made at closing and the remainder to be      purchased upon the satisfaction of financial objectives to be mutually      determined by Investor and Issuer. |
| Interest      Rate: | 6%      per year.                                                                                                                                                                                                                                                                                                                                                                                                                                    |
| Maturity      Date: | 90      days from the date ofissuance.                                                                                                                                                                                                                                                                                                                                                                                                               |

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| Closing      Date:           | Date      on which definitive documents are signed by the Issuer and      Investor.                                                                                                                                                                                             |
|------------------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Repayment:                   | The      Investor shall be paid back first by any revenue or any other source of      income.Prepayment      of the outstanding Note available at 115% during the first 30 days, 120%      up to and including the 60th      day, 125% thereafter.                              |
| Default      Interest:       | 15%      per year                                                                                                                                                                                                                                                               |
| Right      of First Refusal: | The      Investor shall have a right of first refusal on future financing      transactions with the Issuer for as long as the Notes remain      outstanding.                                                                                                                   |
| Fees:                        | The      Issuer shall be responsible for all of its own fees and expenses incurred      in connection with the documentation and closing of this      transaction.                                                                                                              |
| Conditions:                  | Satisfactory      completion of all due diligence.                                                                                                                                                                                                                              |
| Use      of Proceeds:        | The      net proceeds to be received by the Issuer shall be used for working      capital.                                                                                                                                                                                      |
| Confidentiality:             | The      existence of this term sheet and the individual terms and conditions are      of a confidential nature and shall not be disclosed to anyone, except the      Issuer, the Issuer’s management, its Board of Directors and its legal and      accounting advisors. |
| Closing      Date:           | On      or about April 11, 2009. This term sheet expires at 5pm April 7,      2009.                                                                                                                                                                                             |
|                         |                                                                                                                                                                                                                                                                            |

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|                                                     | Sincerely,                                          |
|----------------------------------------------------------|-----------------------------------------------------|
|                                                     |                                                |
|                                                     | Fairhills      Capital Offshore, LLC                |
|                                                     |                                                |
|                                                     | By:      /s/ Ed Bronson                             |
|                                                     | Name:  Ed      Bronson                    |
|                                                     | Title:    Managing      Partner |
|                                                     |                                                |
| AGREED      TO AND ACCEPTED:                             |                                                |
|                                                     |                                                |
|                                                     |                                                |
| Paradigm      Medical Industries, Inc.                   |                                                |
|                                                     |                                                |
|  By:  /s/      Randall A. Mackey          |                                                |
| Name:  Randall      A. Mackey                  |                                                |
| Title:    Chairman      of the Board |                                                |
|                                                     |                                                |
| Dated:   April      7, 2009               |                                                |

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