Document:

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                                 [LOGO] DIOMED

                                                                   Exhibit 10.11

                     EVLT MARKETING AND PROMOTION AGREEMENT

             EVLT Marketing and Promotion Agreement entered into as of August
      29, 2001 between Diomed, Inc., a Delaware corporation having its principal
      offices at 1 Dundee Park, Andover, MA 01810 ("Diomed"), Dr. Steven E.
      Zimmet of Austin, Texas (the "Doctor"), and Endovenous Associates, L.P., a
      Texas limited partnership with a principal office at 1801 N. Lamar Blvd.,
      Suite 103, Austin, Texas 78701 (the "LP").

     RECITALS

             WHEREAS, Diomed is in the business of developing, marketing,
      manufacturing and selling laser systems for medical applications;

             WHEREAS, Diomed has filed a patent application covering design and
     function of optical fibers, application number 85.70.75122 15 June 2001,
     entitled medical laser device (such patent application, together with all
     inventions, discoveries or improvements authored, conceived, developed,
     reduced to practice, or otherwise obtained by the Doctor that are
     referenced thereinor relate thereto are referred to collectively as the
     "Fiber Patent").

             WHEREAS, the Doctor is trained and knowledgeable in the use of
     lasers for the Endovenous treatment of varicose veins ("EVLT") (EVLT is a
     Diomed Trademark);

             WHEREAS, the Doctor has formed a single member LP for the purpose
     of conducting the activities contemplated by this Agreement;

             WHEREAS, Diomed desires to market and sell lasers worldwide for use
     in EVLT and is in the process of obtaining FDA approval for the use of its
     lasers to perform EVLT;

             WHEREAS, the Doctor, acting through the LP, is willing to train
     other physicians in the use of the Diomed laser for EVLT and is otherwise
     willing to promote the use of the Diomed laser for EVLT all as more
     specifically set forth in this Agreement;

             WHEREAS, Diomed wishes to engage the Doctor, acting through his LP,
     to help maximize Diomed's sales worldwide of lasers for EVLT and the Doctor
     and the LP, wish to provide assistance to Diomed in connection with the
     marketing and promotion of the lasers for EVLT, all on the terms and
     conditions herein set forth;

             WHEREAS, For the purpose of this contract EVLT is defined as any
     internal Varicose Vein Treatment performed with a laser and a optical
     fiber;

              NOW, THEREFORE, the parties hereby agree as follows:

     I.       MARKETING OBLIGATIONS OF THE PARTIES

              1.1     Covenant to Promote the Product for EVLT. Subject to the
                      terms and conditions of this Agreement, Diomed, the Doctor
                      and the LP shall work together and use their respective
                      best efforts to promote the use of the Diomed lasers for
                      EVLT throughout the world during the Term (as hereinafter
                      defined).

Diomed, Inc. One Dundee Park, Suites 5&6, PO Box 97, Andover MA 01810 USA
Tel: +1 978 475 7771

Fax: +1 978 475 8488     a    Email: diomed@diomed-lasers.com
http://www.diomed-lasers.com

UK: Diomed Limited. Cambridge Research Park, Ely Road, Cambridge CB5 9TE,
United Kingdom       a        Tel:+44 1223 729300        Fax:+44 1223 729329
Email: info@diomed-lasers.com

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              1.2     Exclusive Promotion. The Doctor and the LP each agrees
                      that, during the Term (and thereafter as provided in
                      Section 5.7), he and it shall not actively promote to
                      third parties any product for EVLT other than Diomed
                      lasers, optical fibers and associated EVLT kits.

              1.3     Proprietary Rights.

                      1.3.1   The Doctor hereby assigns, grants, conveys and
                              transfers to Diomed any and all right, title and
                              interest he has or may have in and to the Fiber
                              Patent. The Doctor will from time to time execute
                              and deliver to Diomed such documentation and take
                              such other reasonable action, at Diomed's expense,
                              which Diomed may request in order to effectively
                              carry out this Section and invest in Diomed the
                              Fiber Patent and title thereto. The Doctor will
                              assist Diomed in every proper way (but at Diomed's
                              expense) to obtain and from time to time enforce
                              rights with respect to the Fiber Patent in any and
                              all countries, and will execute all documents
                              reasonably necessary or appropriate for this
                              purpose. In the event that Diomed is unable for
                              any reason whatsoever to secure the Doctor's
                              consent to any document reasonably necessary or
                              appropriate for any of the foregoing purposes,
                              (including renewals, extensions, continuations,
                              divisions or continuations in part), the Doctor
                              hereby irrevocably designate and appoint Diomed
                              and its duly authorized officers and agents, as
                              his agents and attorneys in fact to act for and on
                              his behalf and instead of him, for the purpose of
                              executing and filing any such document and doing
                              all other lawfully permitted acts to accomplish
                              the foregoing purposes with the same legal force
                              and effect as if executed by him.

                      1.3.2   The Doctor and LP hereby acknowledge that "EVLT"
                              is a trademark of Diomed, and that neither the
                              Doctor nor the LP has any rights therein. The
                              Doctor and the LP understand that Diomed intends
                              to register such trademark with the U.S. Patent
                              and Trademark Office, and agree to reasonably
                              cooperate with Diomed so as to permit Diomed to
                              obtain such registration.

         II.   Duties of The Doctor

               Subject to the terms and conditions of this Agreement, during the
               Term:

               2.1      EVLT Training of Other Physicians. The Doctor, acting
                        through the LP, agrees to use his best efforts to
                        personally train other qualified physicians, as set
                        forth in Exhibit B, and identified and approved by the
                        President or the Director of Marketing of Diomed in the
                        use of Diomed lasers for EVLT. The Doctor will provide
                        Diomed with a certification in the form attached hereto
                        as Exhibit A when each physician's training is complete.

                            2.2      Promotional Activities. The Doctor, acting
                                     through his LP, will use his best efforts
                                     to perform the promotional activities set
                                     forth in Exhibit B, as Exhibit B may be
                                     amended from time to time by written
                                     consent of Diomed and the Doctor.

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     2.3     Confidentiality. The Doctor and the LP each acknowledge that
             information about Product sales to be provided by Diomed to the
             Doctor and the LP hereunder and any other information provided to
             the Doctor or the LP and designated as confidential by Diomed at
             the time of disclosure constitute confidential and proprietary
             information of Diomed and the Doctor and the LP each agree that he
             and it will not use such information except in furtherance of the
             purposes of this Agreement and will hold such information in strict
             confidence. The obligations of the Doctor and the LP under this
             Section 2.3 shall be limited to a period of three years from the
             date of expiration or earlier termination of this Agreement.
             Neither the Doctor nor the LP shall have any obligation of
             confidentiality with respect to any information (a) in the public
             domain, other than by a breach of this Section 2.3 by either of
             them, (b) rightfully received from a third party without any
             obligation of confidentiality, or (c) generally made available to
             third parties by Diomed without restriction on disclosure.

     2.4     Personal Obligation. Notwithstanding the Doctor's use of the LP to
             provide services under this Agreement, all obligations of the
             Doctor and the LP under this Agreement shall be joint and several
             and such obligations may be fully enforced by Diomed against either
             the Doctor or the LP should the other party breach this Agreement.
             Notwithstanding anything to the contrary contained in this
             Agreement, in no event shall the total liability of the Doctor
             and/or the LP for damages arising out of this Agreement exceed the
             aggregate amount of consideration received by the Doctor and/or the
             LP (whether in cash, or exercised options or shares of capital
             stock) under this Agreement (it being understood that such
             limitation on liability for damages shall not limit Diomed's
             ability to seek injunctive or other equitable relief against either
             the Doctor or the LP in the event the Doctor breaches his
             obligations under Sections 1.2, 1.3, or 2.3).

III.  Obligations of Diomed

      Subject to the terms and conditions of this Agreement, during the Term
      Diomed agrees as follows:

3.1   Initial Payment. With in 60 days of execution of this Agreement, Diomed
      will pay the LP the sum of **CONFIDENTIAL TREATMENT REQUESTED**.

3.2   Payment for Training. Within thirty (30) days of receipt of certification
      in the form of Exhibit A from the Doctor that training of physicians
      pursuant to Section 2.1 has been completed, Diomed will pay the LP
      **CONFIDENTIAL TREATMENT REQUESTED** for each such approved training
      session per licensed physician. Within thirty (30) days of submission of
      receipts, Diomed will reimburse up to **CONFIDENTIAL TREATMENT REQUESTED**
      for foreign travel and **CONFIDENTIAL TREATMENT REQUESTED** for domestic
      travel for pre-approved lectures/workshops where discussion or
      presentation on EVLT is on the agenda.

3.3   Payments Based on Product Sales.

      3.3.1 From the Effective Date until termination of this Agreement (by
            expiration or earlier termination) or until total payments hereunder
            reach **CONFIDENTIAL TREATMENT REQUESTED** whichever first occurs,
            and except as described in Section 3.3.2 below, Diomed

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            will pay the LP **CONFIDENTIAL TREATMENT REQUESTED** for each
            Product (as hereinafter defined, and other than OEM Sales) sold in
            North America (defined as Canada and the United States) and
            **CONFIDENTIAL TREATMENT REQUESTED** for each Product (other than
            OEM Sales) sold in the rest of the world. Payment shall be made
            within thirty (30) days of the end of each calendar quarter
            following the Effective Date. In the case of OEM Sales (as defined
            below), Diomed will pay to the LP **CONFIDENTIAL TREATMENT
            REQUESTED** for each Product sold in North America and
            **CONFIDENTIAL TREATMENT REQUESTED** for each Product sold in the
            rest of the world. An "OEM Sale" shall mean any sale of a Product to
            a purchaser under an agreement where the Product is delivered
            without a Diomed logo and the purchaser has the rights to separately
            brand the Product. Reductions shall be allowed for returned Products
            and uncollected accounts. Each payment will be accompanied by a
            report as set forth in Section 3.8.

      3.3.2 Notwithstanding the payments provided under Section 3.3.1 above, the
            parties agree that Diomed may reduce such specified payments should
            Diomed earn an overall Gross Margin on the Products of less that
            **CONFIDENTIAL TREATMENT REQUESTED**. Should on a quarterly basis,
            Diomed's Gross Margin fall below **CONFIDENTIAL TREATMENT
            REQUESTED** then the payments specified in Section 3.3.1 above shall
            be adjusted as follows:

        -   **CONFIDENTIAL TREATMENT REQUESTED** reduction when Gross Margin is
            below **CONFIDENTIAL TREATMENT REQUESTED** but above **CONFIDENTIAL
            TREATMENT REQUESTED**

        -   **CONFIDENTIAL TREATMENT REQUESTED** reduction when Gross Margin is
            below **CONFIDENTIAL TREATMENT REQUESTED** but above **CONFIDENTIAL
            TREATMENT REQUESTED**

        -   **CONFIDENTIAL TREATMENT REQUESTED** reduction when Gross Margin is
            below **CONFIDENTIAL TREATMENT REQUESTED** but above **CONFIDENTIAL
            TREATMENT REQUESTED**

        -   **CONFIDENTIAL TREATMENT REQUESTED** reduction when Gross Margin is
            below **CONFIDENTIAL TREATMENT REQUESTED** but above **CONFIDENTIAL
            TREATMENT REQUESTED**

        -   **CONFIDENTIAL TREATMENT REQUESTED** reduction when Gross Margin is
            below **CONFIDENTIAL TREATMENT REQUESTED** but above **CONFIDENTIAL
            TREATMENT REQUESTED**

        -   **CONFIDENTIAL TREATMENT REQUESTED** reduction when Gross Margin is
            below **CONFIDENTIAL TREATMENT REQUESTED**

            In no case shall the reduction exceed **CONFIDENTIAL TREATMENT
            REQUESTED**. For purposes of this Section, Gross Margin shall be
            determined quarterly under generally accepted accounting principles
            in the United States, with the payments under this Agreement
            included in cost of sales. The Gross Margin shall be computed to two
            places (e.g., ".48") with fractions of one half or less rounded down
            and fractions greater than one half rounded up. For example the
            number 49.55% would be rounded up to 50%. Should a reduction under
            this Section apply in any quarter, Diomed will provide documentation
            for the reduction and the LP may request that Diomed's independent
            auditors (at Diomed's expense) and as part of the annual audit,
            certify such computation. Such a request must be made in writing
            within 45 days of year end.

      3.3.3 In addition to payments for Products as provided for above, Diomed
            shall pay the LP **CONFIDENTIAL TREATMENT REQUESTED** for each
            optical fiber manufactured and sold by Diomed utilizing the unique
            fiber design components of the Fiber Patent (a "Qualified Fiber").
            Where a Qualified Fiber is included in a disposable Kit which
            contains other

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      components the amount paid shall be **CONFIDENTIAL TREATMENT REQUESTED**
      for each kit which includes a Qualified Fiber.

3.4   Certain Definitions. For purposes of this Agreement, "Product" or
      "Products" means the Diomed D15 plus and D30 plus lasers (and equivalents)
      that are sold with an EVLT application box and excludes all fibers,
      disposables and related services.

3.5   Initial Option Grant. In consideration of the undertakings by the Doctor
      and the LP herein, Diomed hereby grants to the LP an option (the "Initial
      Option") to purchase 30,000 shares of Diomed Common Stock at a purchase
      price of $2.25 per share under the 2001 Stock Option Plan adopted by
      Diomed (the "Plan"). The Initial Option shall be fully vested on issuance
      and exercisable for a period of two (2) years from the date of grant. The
      Initial Option will be non transferable and may only be exercised on the
      condition that the Doctor executes the Stockholder Agreement attached
      herewith as Exhibit C (as it may be amended from time to time). The
      Initial Option (and shares issued on exercise thereof) shall also be
      subject to all provisions of the Certificate of Incorporation and Bylaws
      of Diomed, or successor entity, as from time to time revised or amended or
      terms of any conversion of the options in connection with a merger or
      acquisition with another company so long as the holder is treated on a
      pari parsu basis.

 3.6  Product Options. For each Product sold by Diomed beginning on the
      Effective Date and ending November 15, 2005, Diomed will grant to the LP
      under the Plan an option (a "Product Option") to purchase five (5) shares
      of Common Stock of Diomed up to an aggregate maximum of 45,000 shares
      (which number is inclusive of shares subject to options granted under
      Section 3.5). The Product Options shall be granted as of the end of each
      calendar quarter in which Product sales were sold (subject to adjustment
      for returns and uncollected accounts) and shall be fully vested on grant.
      The Product Options issued hereunder shall be subject to the same terms as
      the Initial Options issued under Section 3.5 except that the exercise
      price of each quarterly grant shall be based on fair market value of
      Diomed common stock at the time of grant as determined at the sole
      discretion of the Board of Director and consistent with other Employee
      options (if any) granted during the quarter.

 3.7  Quarterly Report. Diomed shall provide the Doctor with a report within
      thirty (35) days of the end of each calendar quarter specifying the number
      of Products sold for EVLT during the immediately prior calendar quarter
      (and specifying sales in North America and sales in the rest of the
      world), the number of stock options earned as a result of such sales, the
      exercise price of the stock options, and the aggregate number of stock
      options awarded the LP to the date of the report. For purposes of the
      Product Options, the number of Products sold in any given quarter shall
      equal the number of Products for which Diomed is obligated to make a
      payment under Section 3.3.

      3.8     Annual Verification. Within ninety (90) days of the close of each
              calendar year, Diomed will provide the Doctor with an annual
              report of the number of Products sold in the immediately preceding
              calendar year, verified by Diomed's auditors. The Doctor and/or
              the LP shall have the right to audit Diomed's books and records
              related to the transactions contemplated under this Agreement. In
              addition to any other sums that may be owing to the Doctor and/or
              the LP as a result of such audit, Diomed shall be responsible for
              the cost of such audit in the event a discrepancy of five percent
              (5%) of more is documented by the Doctor's and/or LP's auditor.

4     Investment Representations

      4.1   Option Grants Subject to Plan. The Doctor and the LP each
            acknowledges that the options granted and to be granted to the LP
            hereunder are being granted under and are subject to the Plan. All
            references to numbers of shares or price per share under this

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      Agreement shall be subject to adjustment in a number of circumstances such
      as merger, consolidation, reorganization, recapitalization,
      reclassification, stock dividend, stock split, combination of shares,
      exchange of shares, change in corporate structure or the like, as provided
      in the Plan.

4.2   Investment Intent. The Doctor and the LP each agrees that the LP is
      acquiring and will acquire the Options and the shares of Common Stock
      issuable thereunder for its own account and not with a view to, or for
      sale in connection with, any "distribution" thereof within the meaning of
      the Securities Act of 1933, as amended (the "Securities Act").

4.3   Adequate Investigation. The Doctor and the LP each acknowledges that
      Diomed has granted him and it the opportunity to make a thorough
      investigation of the business affairs of Diomed and he and it has availed
      himself and itself of such opportunity, either directly or through his or
      its authorized representatives. In particular, Diomed has made available
      to the Doctor and the LP and their respective representative, access to
      Diomed officers and employees for the purpose of discussing and responding
      to questions concerning Diomed and its business and Diomed has furnished
      to the Doctor and the LP all agreements, financial statements and other
      documents pertaining to Diomed and its business requested by him or it.
      The Doctor and the LP each acknowledges that he and it has made an
      independent investigation of Diomed and an independent evaluation of the
      risks and merits of acquiring the Options and entering into this Agreement
      and has received all the information that he or it has requested in
      connection with deciding whether to accept the Options.

4.4   Investment Sophistication. The Doctor and the LP each acknowledges that he
      and it (a) is knowledgeable and experienced in business matters, (b) is
      capable of independently evaluating the risks and merits of accepting and
      exercising the Options granted hereunder, (c) has independently determined
      that the investment is a suitable investment for the LP, and (d) has
      sufficient financial resources to bear the loss of the LP's investment in
      the Options.

4.5   Restricted Securities. The Doctor and the LP each acknowledges and
      understands that, because neither the Options nor the Common Stock to be
      received upon exercise of the Options will be registered under the
      Securities Act or applicable state securities laws (even after Diomed
      becomes a public company), the LP will not be able to dispose of the
      Common Stock received upon exercise of the Options unless the sale of the
      shares of Common Stock received by it is registered or exemptions from
      such registration are available. The Doctor and the LP each further
      acknowledges and understands that neither he nor it has any right to
      require Diomed to register the Common Stock the LP receives upon exercise
      of any Options granted hereunder under the Securities Act or applicable
      state securities laws and that the Company may, as a condition to the
      transfer of Common Stock received upon exercise of the Options, require an
      opinion of counsel, in form and substance reasonably satisfactory to
      Diomed to the effect that the proposed transfer does not result in
      violation of the Securities Act or applicable state securities laws,
      unless such transfer is covered by an effective registration statement
      under the Securities Act and all applicable state securities laws. In
      furtherance of the above, each certificate representing shares of Common
      Stock received upon exercise of Options will bear a legend to that effect
      as well as any legend required by the Stockholder Agreement signed by the
      LP.

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 4.6  Domicile. The legal domicile of each of the Doctor and the LP is Texas.

 4.7  Accredited Investor. The LP and the Doctor are an "accredited investor"
      within the meaning of Rule 501 of Regulation D promulgated under the
      Securities Act of 1933, as amended, and was not formed for the purpose of
      acquiring the Options.

5  Term and Termination

 5.1  Term. The Agreement shall be effective as of August 29, 2001 (the
      "Effective Date") and, unless earlier terminated as provided herein, shall
      automatically terminate on November 16, 2010 (the period from the
      Effective Date until expiration or earlier termination of this Agreement
      being referred to herein as the "Term").

 5.2  Termination by Diomed. This Agreement may be terminated in its entirety by
      Diomed effective upon the giving of notice of termination to the Doctor no
      later than January 31 following the end of any calendar year beginning
      with calendar year 2001 in which at least 50 Products are not sold
      worldwide for EVLT.

 5.3  Termination by the Doctor and the LP. This Agreement may be terminated by
      the Doctor (on behalf of himself and the LP) effective upon the giving of
      notice of termination to Diomed no later than January 31 following the end
      of any calendar year beginning with calendar year 2001 in which at least
      **CONFIDENTIAL TREATMENT REQUESTED** Products are not sold worldwide for
      EVLT. Also, this Agreement may be terminated by the Doctor (on behalf of
      himself and the LP) at any time after the **CONFIDENTIAL TREATMENT
      REQUESTED** anniversary of the Effective Date effective upon the giving of
      six (6) months prior written notice of termination.

 5.4  Termination for Breach. Diomed, on the one hand, and the Doctor (on behalf
      of himself and the LP), on the other, may terminate this Agreement if the
      other defaults in the performance of any agreement, condition or covenant
      in this Agreement and this default is not remedied within sixty (60) days
      after written demand to remedy the same has been given to the other party.
      For purposes of this Section 5.4, failure by the Doctor to perform his
      agreed upon duties as set forth in Exhibit B shall constitute a breach of
      this Agreement. Upon termination for default, the non-defaulting party
      shall be free to pursue any and all remedies available to him or it. No
      remedy is intended to be exclusive and each remedy shall be cumulative.

 5.5  Termination upon Death or Discontinuation of Medical Practice of the
      Doctor. This Agreement shall terminate upon the death of the Doctor. Also,
      Diomed, on the one hand, and the Doctor (on behalf of himself and the LP),
      on the other, may terminate this Agreement if the practice of medicine
      ceases to be the Doctor's primary professional activity.

 5.6  Survival. Notwithstanding termination of this Agreement, Diomed's
      obligations under Sections 3.2, 3.3 and 3.6 shall survive with respect to
      Product sales for EVLT prior to the date of termination, and the
      obligations of the Doctor and the LP under Section 1.2 shall survive until
      November 16, 2010. Article IV, Section 6.2 and Sections 7.7 and 7.8 shall
      survive termination of this Agreement.

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6    Representations, Warrants and Indemnification

     6.1   Authority and Enforcement. Each party to this Agreement warrants that
           he or it has full right, power and authority to enter into this
           Agreement and to perform the covenants and agreements contemplated
           hereby, that this Agreement has been duly executed and delivered by
           him or it and that the Agreement is enforceable against him or it in
           accordance with its terms, except as enforceability may be limited by
           bankruptcy, insolvency or other creditors' rights generally and the
           availability of equitable remedies, including specific performance.

     6.2   Limitation on Liability. EXCEPT AS SPECIFICALLY PROVIDED HEREIN AND
           IN ANY WARRANTY DELIVERED WITH THE PRODUCT, DIOMED GIVES NO
           WARRANTIES WHATSOEVER WITH RESPECT TO THE PRODUCT INCLUDING, BUT NOT
           LIMITED TO, ANY IMPLIED WARRANTY OF MERCHANTABILITY OR FITNESS FOR A
           PARTICULAR PURPOSE. IN NO EVENT SHALL DIOMED ON THE ONE HAND OR THE
           DOCTOR AND/OR THE LP ON THE OTHER BE LIABLE TO THE OTHER FOR ANY
           INCIDENTAL, CONSEQUENTIAL OR SPECIAL DAMAGES THAT THE OTHER MAY
           SUFFER DIRECTLY OR INDIRECTLY AS A RESULT OF THE SALE OF THE PRODUCT
           FOR EVLT. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED IN THIS
           AGREEMENT, IN NO EVENT SHALL THE TOTAL LIABILITY OF THE DOCTOR AND/OR
           THE LP FOR DAMAGES ARISING OUT OF THIS AGREEMENT EXCEED THE AGGREGATE
           AMOUNT OF CONSIDERATION RECEIVED BY THE DOCTOR AND/OR THE LP (WHETHER
           IN CASH, OR EXERCISED OPTIONS OR SHARES OF CAPITAL STOCK) UNDER THIS
           AGREEMENT

7    Miscellaneous

     7.1   Assignment. This Agreement shall be binding upon and inure to the
           benefit of the parties and to their respective successors, personal
           representatives, executors or assigns. Neither this Agreement nor any
           part of it shall be assignable by the Doctor or the LP to any third
           party. Diomed may assign this Agreement to a parent, subsidiary or
           other affiliate and to any party that acquires the EVLT business from
           Diomed, provided that such assignee assumes the obligations of Diomed
           hereunder in a written instrument delivered to the Doctor and the LP.

     7.2   Notices. Unless otherwise agreed in writing, all notices, requests
           and other communications pursuant to this Agreement shall be in
           writing and addressed as follows:

                           If to Diomed:

                                  Diomed, Inc.
                                  1 Dundee Park
                                  Andover, MA 01810
                                  Attn: Peter Klein

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                      If to the Doctor or the LP:

                               Endovenous Associates, L.P.
                               1801 N. Lamar Blvd.
                               Austin, TX 78701
                               Attn: Steven E. Zimmet, M.D.

              Any notice or other communication under this Agreement shall be
              deemed to be sufficiently given if made in writing addressed as
              above and delivered (a) by hand or by recognized overnight
              delivery service, (b) by first class registered or certified mail,
              return receipt requested, or (c) by facsimile or electronic mail
              (with a confirmation copy dispatched as provided in subsection (a)
              or (b) above). Notice shall be deemed to have been given upon
              delivery if delivered under subsection (a) or (c) and at the
              expiration of five (5) business days after the date on which a
              notice is posted under subsection (b).

 7.3  Entire Agreement. This Agreement, together with the Exhibits attached
      hereto, represents the entire agreement between the parties with respect
      to the subject matter hereof and supersedes any other agreement or
      understanding, written or oral, that the parties heretofore may have had
      with respect thereto, including, without limitation, that certain Term
      Sheet dated as of December 18, 2000.

 7.4  Amendment. No amendment or other variation of this Agreement will be
      binding unless duly executed by an instrument in writing signed by the
      parties hereto.

 7.5  No Waiver. Failure by any party to enforce the performance of any of the
      provisions of this Agreement against another party shall neither
      constitute a waiver by it or him of its or his rights hereunder nor affect
      the validity of this Agreement in any way. Any waiver by a party hereto of
      a breach of this Agreement on the part of another party shall not
      constitute a precedent as to any subsequent breach on the part of such
      other party.

 7.6  Invalidity. In the event that any one or more of the provisions contained
      in this Agreement should be invalid, illegal or unenforceable in any
      respect, the validity, legality and enforceability of the remaining
      provisions contained herein shall not in any way be affected or impaired
      thereby.

7.7   Applicable Law. This Agreement shall be governed by the laws of the
      Commonwealth of Massachusetts without application of Massachusetts law
      with respect to conflicts of law.

7.8   Dispute Resolution. Any dispute that may arise between the parties in
      connection with or arising out of this Agreement must first be addressed
      by the President of Diomed and the Doctor who shall make a good faith
      effort to resolve the dispute. If, within thirty (30) days of written
      notice that a dispute exists there has been no resolution of the dispute,
      then such dispute shall be resolved exclusively by arbitration in
      accordance with the Commercial Arbitration Rules of the American
      Arbitration Association then in force. The arbitration shall take place in
      Boston, Massachusetts, or New York, New York, and shall be final and
      binding on the parties, shall not be subject to any appeal and shall
      address the question of costs of arbitration and the matters relating
      thereto. Judgment upon the

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           award rendered may be entered in any court having jurisdiction, or
           application may be made to such court for a judicial recognition of
           the award or any order of enforcement thereof, as the case may be.

     7.9   Counterparts. This Agreement may be executed in one or more
           counterparts, each of which shall be deemed to be an original, but
           all of which shall be considered one and the same instrument.

    7.10   Headings. The headings in this Agreement are inserted for convenience
           only and shall not be used to interpret this Agreement or for any
           other purpose.

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

DIOMED, INC.

                                        /s/ STEVEN E. ZIMMET
                                        -------------------------
                                        DR. STEVEN E. ZIMMET

PETER KLEIN                             ENDOVENOUS ASSOCIATES, L.P.

Title: CEO

                                        By:_________________ Print Name:

                                        Title: Manager

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                                                                       EXHIBIT A

                  CERTIFICATION OF COMPLETION OF EVLT TRAINING

                            EVLT Training Certificate

                          This document certifies that Dr.

                             Street:
                             City:
                             ZIP, State:
                             Phone:
                             e-mail:

has successfully completed a one day training session on performing an EVLT
procedure.

The Training was performed by Dr.                     at the following location:

                    Street:
                    City:
                    ZIP, State:
                    Phone:
                    e-mail:

                       We thank you for your participation

 This certificate merely certifies that the above named physician has completed
 the training session described above, and does not certify that such physician
 possesses any particular level of skill, competency or experience with respect
                             to an EVLT procedure.

                                       11<PAGE>

                                                                    Exhibit 10.1

Confidential
------------

December 21, 2001

Peter Klein
Chief Executive Officer
Diomed Inc.
One Dundee Park
Andover, MA  01810

Dear Peter:

Pursuant to our discussions, we are pleased to confirm the arrangements under
which Verus Support Services Inc. ("Verus") is engaged by Diomed Inc. ("Diomed"
or the "Company") to act as the Company's RPO advisor to assist and support in
the Company's efforts to merger with a public company in transaction which
includes a private placement, ("RPO Transaction").

1.   Verus will act as a RTO Advisor as specified below:

o    Coordinate and assist the Company in preparing itself for a combined
     financing and merger transaction,

o    Identify potential partners, advisors and lead investors who will be able
     to contribute to the Transaction,

o    Advise the Company as to the timing, structure and pricing,

o    Assist the Company in negotiations between various parties,

o    Assist in preparation of Investor materials and related presentations,

o    Coordinate the activities of professional advisors and the drafting of
     documents,

o    Provide referrals for after market support and placement activities.

     The parties agree that significant past services have been provided under a
verbal agreement and that
     The "Effective Date" of this agreement shall be July 1, 2001.

     For acting as the RPO advisor the Company shall pay Verus a fixed fee of
     $750,000. This fee shall be paid in cash from proceeds in the RPO Closing
     escrow. Should the RPO not close by March 31, 2002 and an alternative
     financing is pursued, Diomed may elect to pay the Advisory fee in the form
     of common stock ( based on the alternative financing terms) or cash on
     closing the alternative financing Verus may at its election and with
     consent of the Company take up to 33% of its fee in equity of the Company
     on terms equivalent to the Private Placement.

2.   The term of the engagement to act as the Company's exclusive RPO advisor
     shall be for the period from the Effective Date to the earlier of one year
     or the Closing of an RPO or other financing of a minimum of $5 million.
     Verus may terminate the engagement hereunder at any time, with or without
     cause, by giving the Company at least 30 days prior written notice and the
     terms and conditions herein, except the

<PAGE>

     indemnification and confidentiality provisions which shall survive. If
     Verus terminates the agreement prior to one year or a RTO or other
     financing event its compensation shall be restricted to the lesser of
     $750,000 or its documented legal, travel, and other directly related
     expenses incurred on behalf of the Transaction.

3.   In connection with Verus' activities on the Company's behalf, Diomed will
     furnish Verus with all information which it may reasonably request and will
     provide Verus access to the officers, directors, accountants and counsel of
     Diomed. Diomed acknowledges that in rendering its services hereunder, Verus
     shall be solely using and relying on the information provided by the
     Company. Verus does not assume responsibility for the accuracy or
     completeness of any information. Any advice rendered by Verus pursuant to
     this agreement may not be disclosed publicly without its prior written
     consent.

4.   The Company agrees that Verus has the right to place advertisements in
     financial and other newspapers and journals describing its services to the
     Company hereunder upon review and approval by the Company.

5.   Verus will act under this letter agreement as an independent contractor
     with duties to the Company. Because Verus will be acting on the Company's
     behalf in this capacity, it is Verus' practice to receive indemnification.
     A copy of Verus' standard indemnification form is attached to this letter.

6.   Verus and Diomed mutually agree that they will not disclose any
     confidential information received from the other party to others except
     with the written permission of the other party or as such disclosure may be
     required by law.

7.   This agreement shall be governed by and construed in accordance with the
     laws of the State of New York applicable to contracts executed in and to be
     performed in that state.

If the terms of our engagement as set forth in this letter are satisfactory to
you, kindly sign and date the enclosed copy of this letter and indemnification
form and return it.

                                    Very truly yours,

                                    VERUS SUPPORT SERVICES INC.

                                    By:  /s/ Ajmal Khan
                                             Ajmal Khan
                                             Chief Executive Officer

<PAGE>

ACCEPTED AND AGREED TO as of the date hereof December 24, 2001.

DIOMED INC.

By:    /s/  Peter Klein
       Peter Klein
       Chief Executive Officer

<PAGE>

December 24, 2001

Verus Support Services Inc.
520 Madison Ave.
New York, NY 10022

Gentlemen:

This letter will confirm that we have engaged Verus Support Services Inc. to
advise and assist us in connection with the matters referred to in our RPO
Adviser agreement dated December 21, 2001 (the "Engagement Letter"). In
consideration of your agreement to act on our behalf in connection with such
matters, we agree to indemnify and hold harmless you and your affiliates and you
and their respective officers, directors, employees and agents and each other
person, if any, controlling you or any of your affiliates (you and each such
other person being an "Indemnified Person") from and against any losses, claims,
damages or liabilities related to, arising out of or in connection with the
engagement (the "Engagement") under the Engagement Letter, and will reimburse
each Indemnified Person for all expenses (including fees and expenses of
counsel) as they are incurred in connection with investigating, preparing,
pursuing or defending any action, claim, suit, investigation or proceeding
related to, arising out of or in connection with the Engagement, whether or not
pending or threatened and whether or not any Indemnified Person is a party. We
will not, however, be responsible for any losses, claims, damages or liabilities
(or expenses relating thereto) that are finally judicially determined to have
resulted from the bad faith or gross negligence of any Indemnified Person. We
also agree that no Indemnified Person shall have any liability (whether direct
or indirect, in contract or tort or otherwise) to us for or in connection with
the Engagement except for any such liability for losses, claims, damages or
liabilities incurred by us that are finally judicially determined to have
resulted from the bad faith or gross negligence of such Indemnified Person.

We will not, without your prior written consent, settle, compromise, consent to
the entry of any judgment in or otherwise seek to terminate any action, claim,
suit or proceeding in respect of which indemnification may be sought hereunder
(whether or not any Indemnified Person is a party thereto) unless such
settlement, compromise, consent or termination includes a release of each
Indemnified Person from any liabilities arising out of such action, claim, suit
or proceeding. No Indemnified Person seeking indemnification, reimbursement or
contribution under this agreement will, without our prior written consent,
settle, compromise, consent to the entry of any judgment in or otherwise seek to
terminate any action, claim, suit, investigation or proceeding referred to in
the preceding paragraph.

If the indemnification provided for in the first paragraph of this agreement is
judicially determined to be unavailable (other than in accordance with the third
sentence of the first paragraph hereof) to an Indemnified Person in respect of
any losses, claims, damages or liabilities referred to herein, then, in lieu of
indemnifying such Indemnified Person hereunder, we shall contribute to the
amount paid or payable by such Indemnified Person as a result of such losses,
claims, damages or liabilities (and expense relating thereto) (i) in such
proportion as is appropriate to reflect the relative benefits to you, on the one
hand, and us, on the other hand, of the Engagement or (ii) if the allocation
provided by clause (i) above is not available, in such proportion as is
appropriate to reflect not only the relative benefits referred to in such clause
(i) but also the relative fault of each of you and us, as well as any other
relevant equitable considerations; provided, however, in no event

<PAGE>

shall your aggregate contribution to the amount paid or payable exceed the
aggregate amount of fees actually received by you under the Engagement Letter.
For the purposes of this agreement, the relative benefits to us and you of the
Engagement shall be deemed to be in the same proportion as (a) the total value
paid or contemplated to be paid or received or contemplated to be received by us
or our shareholders, as the case may be, in the transaction or transactions that
are the subject of the Engagement, whether or not any such transaction is
consummated, bears to (b) the fees paid or to be paid to you under the
Engagement Letter.

The provisions of this agreement shall apply to the Engagement and any
modification thereof and shall remain in full force and effect regardless of any
termination or the completion of your services under the Engagement Letter.

This agreement and the Engagement Letter shall be governed by and construed in
accordance with the laws of the State of New York applicable to contracts
executed and to be performed in that state.

                                    Very truly yours,

                                    DIOMED INC.

                                    By:  /s/ Peter Klein
                                         Peter Klein
                                         Chief Executive Officer

ACCEPTED AND AGREED TO as of the date of December 24, 2001.

VERUS SUPPORT SERVICES INC.

By:  /s/ Ajmal Khan
     Ajmal Khan
     Chief Executive Officer

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