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| A.   | On a monthly basis (or as needed and agreed to by the Company and Theorem), The Company and Theorem shall send the Escrow Agent a written notice executed by the parties, in the format attached hereto as Exhibit B (the “Release Notice”), advising the Escrow Agent to disburse funds solely to the Company in accordance with such notice.  The Disbursement Notice must be executed by Theorem and the Company.  If the Disbursement Notice is not executed by all applicable parties, the Escrow Agent will not be required to follow the instructions therein. |
|----------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| B.   | Upon receipt by the Escrow Agent of the fully executed Release Notice, the Escrow Agent shall deliver the funds solely to the Company as directed herein. |
|----------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------|

| C.   | The Escrow Agent will be paid a fee of 1% of the gross amounts deposited into the Escrow Agent’s account. |
|----------------|-----------------------------------------------------------------------------------------------------------------|

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| OXIS INTERNATIONAL, INC.                                                                                                                                                                                                                                                                                                                                                                                                                                |   |
|--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|--------|
| By:/s/ Anthony J. Cataldo______________     Name:  Anthony J. Cataldo     Title:  Chairman & CEO                                                                                                                                                                                                                                                                              |   |
|                                                                                                                                                                                                                                                                                                                                                                                                                                                         |   |
|   THEOREM CAPITAL LLC  By: /s/ Anshuman Dube_________________     Name:  Anshuman Dube     Title:    Managing Director  PURCHASER  By: /s/ Anshuman Dube_________________     Name:  Anshuman Dube     Title:    Managing Director    |   |
| ESCROW AGENT:                                                                                                                                                                                                                                                                                                                                                                                                                                           |   |
| LAW OFFICES OF JACQUES CHEN                                                                                                                                                                                                                                                                                                                                                                                                                        |   |
| By: /s/ Jacques Chen____________________     Name:  Jacques Chen     Title:                                                                                                                                                                                                                                                                                                            |   |

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|  To:   |  Law Offices of Jacques Chen                  |
|-------------|---------------------------------------------------------|
|  From: |  Oxis International, Inc.Theorem Capital LLC  |
|  Date: |  ____ ___, 2009                                    |
|  Re:   |  Disbursement of Funds                             |

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| OXIS INTERNATIONAL, INC.                                                                                                                       |
|-----------------------------------------------------------------------------------------------------------------------------------------------------|
| By:__________________________________________     Name:     Title:                           |
|                                                                                                                                                |
| THEOREM CAPITAL LLC  By:__________________________________________     Name:     Title: |