Document:

Exhibit 10.9

                            HRI SUBLICENSE AGREEMENT

THIS AGREEMENT (this "AGREEMENT") is made and entered into this 8th day of
November, 2000,

BETWEEN:

          QLT INC., a company duly constituted under the British Columbia
          COMPANY ACT having its principal place of business at 887 Great
          Northern Way, Vancouver, British Columbia, Canada V5T 4T5

          ("QLT-BC")

AND:

          QLT PHOTOTHERAPEUTICS INC., a subsidiary of QLT-BC, duly constituted
          under the laws of the State of Delaware having its principal place of
          business at 887 Great Northern Way, Vancouver, British Columbia,
          Canada, V5T 4T5

          ("QLT-US")

          (QLT-BC and QLT-US are collectively referred to as "QLT")

AND:

          DIOMED INC., a corporation duly constituted under the laws of Delaware
          having its principal place of business at 23 Main Street, Suite 240,
          Andover, Massachusetts, 01810, United States of America

          ("DIOMED")

WHEREAS:

A.   QLT and Health Research, Inc. ("HRI"), a non-profit corporation affiliated
     with the State of New York Department of Health, have entered into an
     agreement dated May 1, 1992 (the "HRI AGREEMENT"), a copy of which is
     attached hereto, providing QLT with the ability to commercialise,
     manufacture, use and distribute products covered by the Patent Rights (as
     hereinafter defined), including the OPTIGUIDE(R) fibre optic diffusers;

B.   Pursuant to the HRI Agreement QLT has acquired an exclusive license to
     certain fibre optic Patent Rights (as hereinafter defined);

C.   Pursuant to an OPTIGUIDE(R) Asset Purchase Agreement between QLT and Diomed
     dated October 16, 2000 (the "OPTIGUIDE(R) AGREEMENT"), QLT has agreed to
     sublicense to Diomed and Diomed has agreed to accept from QLT the
     non-exclusive sublicence of certain fibre optic patent rights under the HRI
     Agreement on the terms and conditions set out in this Agreement.

NOW THEREFORE, in consideration of the covenants, rights and obligations
contained in this Agreement, the preamble forming an integral part of this
Agreement, the parties agree as follows: I.

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                                       2

I.        DEFINITIONS

I.I       DEFINED TERMS. As used in this Agreement, the following words and
phrases shall have the following meanings unless the context dictates otherwise:

     (a)  "ACCOUNTING PERIOD" means the periods for which royalty payments are
          due as provided for in paragraph 5.3.

     (b)  "AFFILIATE" means a corporation, company or any other entity in
          whatever country organised in which a party to this Agreement has a
          financial interest whether through ownership of stock, by contract or
          otherwise or as to which the parties' relationship is such that, the
          Affiliate's business policies and activities are substantially
          influenced, directly or indirectly, by a party to this Agreement.

     (c)  "BUSINESS DAY" means any day other than a day which is a Saturday, a
          Sunday or a statutory holiday in British Columbia or Massachusetts.

     (d)  "NET SALES" means world-wide total gross sales made by Diomed less the
          following to the extent they are actually allowed and included in
          gross sales in accordance with recognised principles of accounting,
          and separately stated:

          (i) trade discounts,

          (ii) returns and freight allowances, and

          (iii) excise and sales taxes but not franchise or income taxes or any
                other kind of tax whatsoever.

          In case of a transfer or sale of a Royalty Based Product to or by a
          Subsidiary, Affiliate or Sublicensee, Net Sales shall also include the
          gross sales, less the exceptions set forth above, of the Royalty Based
          Product by the Subsidiary, Affiliate or Sublicensee.

          In the event any Royalty Based Product is sold as a component of a
          combination of active functional elements, the selling price for
          purposes of determining royalty payments on such combination shall be
          calculated by multiplying the selling price of that combination by the
          fraction A/(A+B), in which "A" is the gross selling price of the
          Royalty Based Product portion of the combination when sold separately
          during the Accounting Period in which the sale was made, and "B" is
          the gross selling price of the other active elements of the
          combination sold separately during the Accounting Period in question.
          In the event that no separate sale of either such above-designated
          Royalty Based Product or such above-designated elements of the
          combination is made during the Accounting Period in which the sale was
          made, the gross selling price which would be charged in accordance
          with normal business practices shall be used in making the foregoing
          calculation.

     (e)  "PATENT RIGHT" means United States Patent No. 5,074,632 and Canadian
          Patent No. 2028757 or the equivalent of such registrations, including
          any divisions, continuations, or continuations-in-part thereof or any
          Letters Patent issuing thereon or reissues or extensions thereof;

     (f)  "PRODUCT" means the OPTIGUIDE(R) fibre optic diffuser or any other
          fibre optic diffuser described in or developed pursuant to the Patent
          Rights, and generally consisting of

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                                       3

          a single use sterile cylindrical treatment fibre assembly that can be
          connected directly to the lasers used for photodynamic therapy. For
          the purposes of this Agreement, the Product shall be deemed to include
          the 100 and 200 series OPTIGUIDE(R) fibre optic diffusers but shall
          exclude the 400 series OPTIGUIDE(R) fibre optic diffusers.

     (g)  "ROSWELL PARK" means the Roswell Park Division of HRI.

     (h)  "ROYALTY BASED PRODUCT" means the Product either:

          (i)  made by or for Diomed or any of its Subsidiaries, Affiliates or
               Sublicensees; or

          (ii) used or sold by Diomed or any of its Subsidiaries, Affiliates or
               Sublicensees;

          in accordance with the terms and conditions of this Agreement.

     (i)  "SALES", "SELL", "SOLD" or any variation thereof relating to sales by
          Diomed means any sale, transfer, lease or other conveyance of any
          Royalty Based Product by Diomed, its Subsidiaries, Affiliates or
          Sublicensees, for any purpose. Royalty Based Products shall be
          considered sold hereunder when paid. The date of sale shall be the
          date of payment.

     (j)  "SUBSIDIARY" means a corporation, company or any other entity in
          whatever country organised, who controls or is controlled by a party
          to this Agreement.

I.2       OTHER  DEFINITIONS.  Any words defined  elsewhere in this Agreement
shall have the particular meaning assigned thereto.

2.        CONFIDENTIALITY

2.1       Diomed agrees to hold in confidence and protect from disclosure all
confidential information received from QLT in any manner pursuant to this
Agreement to the same extent and in the same manner as if such confidential
information were Confidential Information under the OPTIGUIDE(R) Agreement. The
obligation set out in this paragraph shall survive termination of this Agreement
for whatever reason.

3.        SUBLICENSE

3.1       SUBLICENSE. To the extent QLT has rights therein, QLT grants to Diomed
a non-exclusive sublicense of the Patent Rights to make, have made, use and sell
the Product.

3.2       DEFAULT. In the event HRI concludes that QLT (through Diomed) has not
shown good faith efforts in commercialising the Product in any of the United
States, , Australia, Japan or the EEC, then in any such event, QLT shall have
the right to give written notice thereof to Diomed and upon Diomed's failure,
neglect or refusal to remedy the same to the satisfaction of HRI, the sublicense
granted to Diomed under paragraph 3.1 in any jurisdiction for which good faith
efforts have not been shown shall terminate 60 days after the giving of such
prior written notice by QLT.

3.3       SUBLICENSES. If and for so long as Diomed enjoys a non-exclusive
sublicense to make, use, and sell the Product pursuant to this Agreement, Diomed
shall be entitled to grant sublicenses upon the following terms and conditions:

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                                       4

     (a)  No such sublicense shall be granted by Diomed for a term or period
          longer than the term of the non-exclusive sublicense granted to Diomed
          hereunder;

     (b)  At the time of the granting of any such sublicense, Diomed hereby
          agrees to furnish to QLT an executed copy of the sublicense agreement;

     (c)  Diomed agrees to be responsible for the payment of all royalties due
          QLT as a result of any such sublicense; and

     (d)  It is understood and agreed that each such sublicense granted by
          Diomed pursuant to this paragraph 3.3 shall be subject to all of the
          terms of this Agreement.

4.        MAINTENANCE AND INFRINGEMENT

4.1       FAILURE TO PROSECUTE OR MAINTAIN. In the event QLT declines to
continue the maintenance of any Patent Right, QLT shall give Diomed 60 days
prior written notice, in sufficient time to permit Diomed to continue the
maintenance. Diomed may thereafter, at Diomed's option and expense, elect to
continue the maintenance. At the end of the 60 day notice period, such patent
applications and/or patents on which Diomed declines to continue maintenance
shall be excluded from the rights sublicensed to Diomed pursuant to paragraph
3.1

4.2       MAINTENANCE COSTS. Diomed shall promptly reimburse QLT for one-half of
all costs of maintenance of the Patent Rights, including the costs of obtaining
patent term extensions where appropriate, for so long as Diomed remains the
non-exclusive sublicensee under the Patent Rights.

4.3       NOTICE OF INFRINGEMENT. Each party agrees to inform the other of any
suspected infringement of any Patent Right coming to its attention. QLT and HRI
shall have the right, but not the obligation, to take action against any such
infringer. If neither QLT nor HRI elect to take action, within six months after
being informed of this infringement, Diomed may take action at its sole expense
and QLT agrees that it may be named as a nominal party plaintiff at no cost to
QLT, where that may be necessary.

5.        ROYALTIES

5.1       ROYALTY AMOUNTS. Diomed hereby agrees to pay to HRI at the address
specified by QLT from time-to-time on behalf of QLT (with a statement setting
out such payments delivered to QLT simultaneously with such payments to HRI) a
royalty of:

     (a)  **CONFIDENTIAL TREATMENT REQUESTED** of the Net Sales of all Royalty
          Based Products wherever sold for use in therapeutic treatment of
          cancer;

     (b)  **CONFIDENTIAL TREATMENT REQUESTED** of the Net Sales of all Royalty
          Based Products wherever sold for use in detection of cancer; provided
          that, to the extent applicable to sublicensees of QLT, such royalty
          may be reduced in accordance with subsection 5.1(b) of the HRI
          Agreement in a given year by **CONFIDENTIAL TREATMENT REQUESTED** of
          additional royalties paid by Diomed to others during that year in
          order to sell such Royalty Based Product for use in detection of
          cancer, up to a maximum reduction of **CONFIDENTIAL TREATMENT
          REQUESTED** and any excess over such **CONFIDENTIAL TREATMENT
          REQUESTED** may not be deducted in any subsequent year; and

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                                       5

     (c)  **CONFIDENTIAL TREATMENT REQUESTED** of the Net Sales of all Royalty
          Based Products wherever sold for uses other than as set forth in
          subparagraphs (a) and (b) above.

Upon written notice to Diomed, QLT may request that all future royalty payments
be made directly to QLT instead of HRI. Diomed shall not have any minimum
royalty obligations. "CANCER" as used in subparagraphs (a) and (b) shall be
defined by reference to the generally recognised text CANCER MEDICINE, James F.
Holland and Emil Fri III, M.D., published by Lea and Febiger, Philadelphia,
Pennsylvania. Psoriasis, arterial plaque and the like are not meant to be
included in the definition of "cancer".

5.2       BOOKS AND RECORDS. Diomed shall keep, and shall cause each of its
Subsidiaries, Affiliates and Sublicensees, if any, to keep full and accurate
books of account containing all particulars that may be necessary for the
purpose of calculating all royalties payable to QLT or HRI on behalf of QLT.
Such books of account shall be kept at Diomed' s principal place of business and
the books and all necessary supporting data therefor shall be open at all
reasonable times for five years following the end of the calendar year to which
they pertain to the inspection of an independent certified public accountant
retained by QLT or HRI for the purpose of verifying Diomed's royalty statement
or Diomed's compliance in any respect with this Agreement.

5.3       REPORTS. Diomed, within 90 days after the first day of January, April,
July and October of each year, shall deliver to QLT a true and accurate report
giving such particulars of the business conducted by Diomed during the preceding
three months under this Agreement (or in the case of the initial payment, for
the period from the Effective Date until the end of the applicable period) as
are pertinent to an accounting for royalty under this Agreement. These shall
include at least the following:

     (a)  The period of time covered by the report;

     (b)  A description of each Royalty Based Product made, sold, leased or
          commercially used during this period;

     (c)  The total quantity of each Royalty Based Product made, sold, leased or
          commercially used (by country) by Diomed and its Subsidiaries,
          Affiliates or Sublicensees during the period;

     (d)  Total billings and Net Sales for each Royalty Based Product (by
          country);

     (e)  Quantities of each Royalty Based Product sold to the United States
          Government;

     (f)  Names and addresses of all Subsidiaries, Affiliates or Sublicensees of
          Diomed involved in the distribution of the Royalty Based Products; and

     (g)  Total royalties payable to QLT for HRI on behalf of QLT.

5.4       PAYMENT OF ROYALTIES. Simultaneously with the delivery of each report,
Diomed shall pay to HRI on behalf of QLT the royalty accrued for the period
covered by such report. If no royalties are due it shall be so reported. Every
such payment shall be supported by the accounting prescribed in paragraph and
shall be made in United States currency. Whenever conversion from any foreign
currency shall be required, such conversion shall be at the rate of exchange
published in the WALL STREET JOURNAL for the business day closest to the
applicable due date as the case may be.

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                                       6

5.5       NO DUPLICATION.  Only one royalty shall be payable hereunder in
respect of any Royalty Based Product.

6.        INDEMNIFICATION

6.1       Diomed agrees to defend, at no cost to QLT, Roswell Park, HRI, The New
York Sate Department of Health or New York State and hold QLT, Roswell Park,
HRI, The New York Sate Department of Health or New York State and their
respective directors, officers, servants, employees and agents (in this
paragraph, the "INDEMNIFIED PARTIES") harmless against any action, suit, claim
or other proceeding which may be instituted by any third party against
Indemnified Parties and arising out of any activities of Diomed, its
Subsidiaries, Affiliates or Sublicensees pursuant to this Agreement including,
without limitation, the following:

     (a)  The manufacture, packaging, use, sale or other distribution of the
          Product by Diomed, any Subsidiary, Affiliate or Sublicensee or the use
          of a Process;

     (b)  Any representation made or warranty given by Diomed, any Subsidiary,
          Affiliate or Sublicensee with respect to the Product; or

     (c)  Patent, trademark or copyright infringement or alleged patent,
          trademark or copyright infringement with respect to the manufacture,
          use or sale of the Product by Diomed, any Subsidiary, Affiliate or
          Sublicensee;

and agrees to indemnify the Indemnified Parties against all costs, damages,
attorneys' fees on a solicitor and own client basis and any other monetary award
that may be imposed upon the Indemnified Parties as a result of any such
proceeding. Diomed shall not however pay for the fees and expenses of
independent counsel that the INDEMNIFIED PARTIES may retain from time to time.

7.        DURATION

7.1       Unless sooner terminated under any of the provisions of this
Agreement, the duration of this Agreement and of any sublicense granted to
Diomed pursuant to this Agreement shall extend for the eariler of the life of
the last to expire of any Patent Right or the termination of the HRI Agreement
for any reason.

8.        TERMINATION

8.1       TERMINATION. Diomed may terminate this Agreement in full at any time
during the term of this Agreement upon four months written notice to QLT, and
such termination still become effective at the end of the four months notice
period. Termination under this paragraph 8.1 shall not relieve Diomed of its
payment obligations incurred prior to the effective date of such termination.

8.2       BREACH. In case of the failure of Diomed or QLT to fulfil any of their
obligations under the other party shall have the right, without limitation of
any other right it has on account of the breach, to terminate this Agreement on
90 days prior written notice, provided, however, that if the breaching party
remedies the failure during the 90 day period, then the notice of termination
shall be null and void; otherwise, this Agreement shall be considered as
terminated on and after the expiration of the 90 day period.

8.3       INSOLVENCY. QLT shall have the right to terminate this Agreement in
the event that Diomed becomes insolvent and this Agreement shall terminate
automatically immediately prior to the

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                                       7

time Diomed makes an assignment for the benefit of creditors, files for or is
adjudged bankrupt or a receiver or trustee of Diomed property is appointed.

9.        ASSIGNMENT

9.1       This Agreement shall not be assignable by Diomed for any reason, by
operation of law or otherwise, without the prior written consent of QLT except
to a purchaser or successor in interest of the OPTIGUIDE(R) business of Diomed
or to a Subsidiary or Affiliate of Diomed. Any assignment, if QLT consent is
given, shall be upon the assumption of the terms and conditions of this
Agreement by the assignee.

10.       MISCELLANEOUS

10.1      NO WARRANTIES.  Nothing contained in this Agreement shall be construed
as:

     (a)  Requiring the filing of any patent application by QLT or Diomed, nor
          the securing of any patent, nor the maintaining of any patent in
          force, except as may be specifically provided elsewhere in this
          Agreement;

     (b)  A warranty or representation by QLT as to the validity or scope of any
          Patent Rights;

     (c)  A warranty or representation that any manufacture, sale, lease or use
          hereunder will be free from infringement of patents owned by others;
          or

     (d)  Requiring either party to bring or prosecute actions or suits against
          third parties for infringement.

     Except as expressly set out in this Agreement there are no warranties,
     representations, condition, or guarantees of any kind whatsoever, either
     express or implied by law or custom, made by either party to the other
     regarding the subject matter of this Agreement.

10.2      ENTIRE AGREEMENT. This Agreement constitutes the entire understanding
between the parties with respect to the subject matter hereof, and supersedes
and replaces all prior agreements, understandings, writings and discussions
between the parties relating to the subject matter.

10.3      AMENDMENT. This Agreement may be amended and any of its terms or
conditions may be waived only by a written instrument executed by QLT and Diomed
or, in the case of a waiver, by the party waiving compliance. The failure of
either QLT or Diomed at any time or times to require performance of any
provision of this Agreement shall in no manner affect its rights to enforce the
same at a later time. No waiver by either party of any condition or term in
anyone or more instances shall be construed as a further or continuing waiver of
such condition or term or any other condition or term.

10.4      INUREMENT. This Agreement shall be binding upon and inure to the
benefit of and be enforceable by the parties hereto, the successors and assigns
of QLT and any permitted assigns of Diomed.

10.5      PUBLICITY. Diomed shall not use the name of QLT, HRI, Roswell Park,
The New York State Department of Health, New York State or of any staff member,
employee or student of HRI, Roswell Park, New York State Department of Health or
New York State, or adaptation, abbreviation or simulation thereof, in any
advertising, promotion or sales literature without the written approval of QLT
(as to the use of QLT's name) or HRI (as to the use of HRI's name or the other
names listed above.

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                                       8

10.6      SEVERABILITY. If any provision of this Agreement is or becomes
invalid, is ruled illegal by any court of competent jurisdiction or is deemed
unenforceable under the current applicable law from time to time in effect
during the term of this Agreement, it is the intention of the parties that the
remainder of this Agreement shall not be affected thereby. It is further the
intention of the parties that in lieu of each such provision there may be
substituted or added as part of this Agreement, a provision which shall be as
similar as possible in economic business objectives as intended by the parties
to such invalid, illegal or unenforceable provision, but which shall be valid,
legal and enforceable.

10.7      GOVERNING LAW. The  construction  and  performance of this Agreement
shall be governed by the laws of the State of New York.

10.8      NOTICE. All communication, notices and reports in connection with this
Agreement shall be in writing and either hand-delivered, mailed by registered or
certified mail, postage prepaid or sent by facsimile transmission (with
confirmation notices sent as described above). Any notice shall be deemed to
have been received on the date of the hand-delivery, if delivered by hand, on
the fifth Business Day following the date of mailing if sent by registered or
certified mail or on the next Business Day following the date of transmission if
sent by facsimile transmission. The parties' respective addresses for the
purpose of receiving notices are as follows:

     If to Diomed:      DIOMED INC.
                        Cambridge Research Park
                        Ely Road, Cambridge
                        United Kingdom
                        CB8 9TE

                        Attention:                         President and CEO

                        Facsimile number:

     With a copy to:    VAN WERT, ZIMMER, BONESTEEL,
                        CONLIN MCCANN, P.C.
                        One Militia Drive
                        Lexington, MA

                        USA .2421

                        Attention:                         Virginia Bonsteel

                        Facsimile number:                  (781) 862-1941

     If to QLT:         QLT INC.
                        887 Great Northern Way
                        Vancouver, BC
                        V5T 4T5

                        Attention:                         President and CEO

                        Facsimile number:                  (604) 875-0001

     With a copy to:    FARRIS, VAUGHAN, WILLS & MURPHY
                        P.O. Box 10026, Pacific Centre S
                        700 West Georgia Street

                        Vancouver, BC

                        V7Y 1B3

                        Attention:                         R. Hector MacKay-Dunn

                        Facsimile number:                  (604) 661-9349

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                                       9

Any party may at any time give notice of any change of address to the other and
the address specified therein shall be such party's address for the purpose of
receiving notices.

In the event of any dispute between HRI and QLT regarding the interpretation of
the HRI Agreement to be heard before a court or arbitration authority, if a
ruling on such dispute could reasonably effect the interpretation of this
Agreement, on reasonable notice from QLT, Diomed agrees either to join in such
proceeding and be bound by the interpretation thereof in respect of this
Agreement, or if Diomed fails to join in any such proceeding, hereby agrees to
be bound by the interpretation thereof in the interpretation of this Agreement.

10.9      ARBITRATION. Any controversy or claim arising out of or relating to
this Agreement, or breach of this Agreement, shall be referred first to senior
management of the parties for amicable resolution. In the event that amicable
resolution is not reached within a reasonable period of time (which in any event
shall not exceed 60 days), then the dispute shall be referred to arbitration.
Where the parties have agreed to resolve a dispute by arbitration, the
arbitration shall be conducted under Rules of the International Chamber of
Commerce (ICC) by a single arbitrator knowledgeable as to the subject matter of
the dispute, and judgement upon the award rendered may be entered in any court
having jurisdiction. The arbitrator shall have the right to order discovery as
he or she deems appropriate provided that such discoveries for each parties
shall not in the aggregate exceed 120 days. The prevailing party in any
arbitration or legal action arising out of or related to this Agreement shall be
entitled, in addition to any other rights and remedies it may have, to
reimbursement for its expenses incurred in such arbitration or action, including
court costs and reasonable lawyer's fees. The place of arbitration shall be
Vancouver, British Columbia if the requesting party is the Purchaser and
Montreal, Quebec if the requesting party is the Vendor and the language of
arbitration shall be English.

10.10     CO-OPERATION Each party hereto agrees to co-operate with the other to
insure that each may have and enjoy the fullest extent of all rights conveyed
under this Agreement. If at any time after the date hereof any party requests
further documents, instruments or assurances in order to carry out the
provisions hereof, then the party from which such assurances are requested shall
promptly execute and deliver any such documents, instruments and assurances and
do all things reasonably necessary to carry out the provisions hereof, all at
the cost and expense of the party requesting such assurance including, without
limitation the filing of a confirmation document of this Agreement with the
appropriate patent offices in any jurisdiction deemed appropriate by Diomed.

10.11     NO RELEASE. Termination of this Agreement under any provision herein
shall not affect the obligation of Diomed to pay QLT any royalty or other
payments which may be due and unpaid at the date of termination, nor shall the
same prejudice any other right of QLT under this Agreement. Within 90 days after
termination, Diomed shall render to QLT a written statement of the kind required
in paragraph 5.3 hereof respecting the due and unpaid royalties and shall
accompany such a statement with payment to cover same.

10.12     PATENT NOTICE. Diomed agrees to apply, or cause to be applied, an
appropriate patent notice on all Products manufactured or sold by Diomed, its
affiliates, subsidiaries or sublicensees hereunder and to accept the reasonable
suggestions of QLT with respect thereto.

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                                       10

10.13     US GOVERNMENT LICENSE. Diomed acknowledges and agrees that this
Agreement is subject and subordinate to all applicable governmental regulations
and requirements including but not limited to the grant by HRI of a world-wide,
non-exclusive, irrevocable royalty-free license to the United States Government
for certain Inventions, as defined in the HRI Agreement, by reason of partial
government funding in connection therewith.

IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the date
first written above.

DIOMED, INC.                           QLT INC.
by its authorised signatory:           by its authorised signatory:

           /s/ PETER KLEIN                 /s/ JULIA LEVY
-----------------------------          ---------------------------------------
Name:      Peter Klein                 Name:  Julia Levy
Title:     President                   Title: President and Chief Executive
                                              Officer

                                            /s/ EDWIN LEVY
                                        ---------------------------------------
                                        Name:  Edwin Levy

                                        Title: Senior Vice President, Corporate
                                               Development

QLT PHOTOTHERAPEUTICS INC.
by its authorised signatory:

   /s/ JULIA LEVY
--------------------------------------------
Name:  Julia Levy

Title: President and Chief Executive Officer[Logo] DIOMED

                     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. Robert Min of New York, New
York (the "Doctor"), and Endovenous Laser Associates, L.L.C., a New York limited
liability company with a principal office at 416 East 55th Street, New York, New
York 10022 (the "LLC").

RECITALS

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

         WHEREAS, the Doctor is a named co-inventor and co-owner under a process
patent,  application number 09/374,280,  entitled "Endovascular Laser Device and
Treatment of Varicose Veins" (the "Process Patent Rights");

         WHEREAS,  the Doctor is the named inventor  under a patent  application
covering  design and function of optical  fibers,  filed by Diomed,  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 therein are referred to collectively as the "Fiber Patent").

         WHEREAS:  the  Doctor  is  willing  to grant to  Diomed a  nonexclusive
license to use of the Process  Patent  Rights and to assign to Diomed all rights
he has or may have in 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 LLC 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 LLC, 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 LLC, to
help maximize Diomed's sales worldwide of lasers for EVLT and the Doctor and the
LLC, 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;

<PAGE>

                                [Logo] DIOMED

NOW, THEREFORE,  the parties hereby agree as follows:

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 LLC 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).

 1.2     EXCLUSIVE  PROMOTION.  The Doctor and the LLC 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     PATENT RIGHTS.

         1.3.1    The Doctor and the LLC warrant and covenant that they have not
                  and will not license the  Process  Patent  Rights to any third
                  party  during  the Term and that  they have not  licensed  the
                  Fiber  Patent  to any  third  party.  The  Doctor  and the LLC
                  further  covenant  that they  shall not  become a party to any
                  agreement  or  arrangement  (written  or oral)  with any other
                  co-inventor  of the Process  Patent  Rights or any third party
                  that would  adversely  affect  the rights of Diomed  under the
                  license granted hereunder.

         1.3.2    The Doctor hereby grants to Diomed, to the full extent that he
                  has authority to do so, a royalty-free,  perpetual, worldwide,
                  non-exclusive  license to use and to  sublicense to others the
                  right to use the Process Patent Rights if and when such patent
                  issues._Notwithstanding  the foregoing, the rights and license
                  granted by the Doctor  hereunder  shall terminate in the event
                  this Agreement is terminated due to Diomed's breach.

         1.3.2    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

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                  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.

         1.3.4    The  Doctor  and  LLC  hereby  acknowledge  that  "EVLT"  is a
                  trademark  of Diomed,  and that neither the Doctor nor the LLC
                  has any rights therein. The Doctor and the LLC 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,

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 LLC,
         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 LLC, 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.

 2.3     CONFIDENTIALITY.   The  Doctor  and  the  LLC  each   acknowledge  that
         information  about Product sales to be provided by Diomed to the Doctor
         and the LLC hereunder and any other information  provided to the Doctor
         or the LLC and  designated  as  confidential  by  Diomed at the time of
         disclosure  constitute  confidential  and  proprietary  information  of
         Diomed  and the  Doctor  and the LLC 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 LLC 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 LLC
         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 LLC to
          hold patent  rights and provide  services  under this  Agreement,  all
          obligations  of the Doctor and the LLC under this  Agreement  shall be
          joint and several and such obligations may be fully enforced by Diomed
          against  either the Doctor or the LLC  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 LLC for damages  arising out of this  Agreement  exceed the
          aggregate  amount of  consideration  received by the Doctor and/or the
          LLC

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              (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 LLC in the event the Doctor  breaches  his  obligations  under
              Sections 1.2, 1.3.1, 1.3.3, 1.3.4 or 2.3).

     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 LLC 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 LLC
     **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 will pay the LLC **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  LLC  **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 **CONFIDENTIAL TREATMENT REQUESTED**
              on the Products of less that **CONFIDENTIAL TREATMENT REQUESTED**.
              Should on a quarterly  basis,  Diomed's  **CONFIDENTIAL  TREATMENT
              REQUESTED** fall below **CONFIDENTIAL  TREATMENT  REQUESTED** then
              the payments specified in Section 3.3.1 above shall be adjusted as
              follows:

**CONFIDENTIAL TREATMENT REQUESTED**

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             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.  **CONFIDENTIAL  TREATMENT  REQUESTED**.
             Should a reduction under this Section apply in any quarter,  Diomed
             will  provide  documentation  for  the  reduction  and  the LLC 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 LLC  **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 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 LLC  herein,  Diomed  hereby  grants  to the  LLC 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 LLC
      under the Plan an option (a "Product Option") to purchase twenty five (25)
      shares of Common  Stock of Diomed up to an  aggregate  maximum  of 180,000
      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.

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     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 LLC 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 LLC 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 LLC 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 LLC's auditor.

4    INVESTMENT REPRESENTATIONS

     4.1   OPTION  GRANTS   SUBJECT  TO  PLAN.  The  Doctor  and  the  LLC  each
           acknowledges  that the  options  granted and to be granted to the LLC
           hereunder are being  granted  under and are subject to the Plan.  All
           references  to  numbers  of  shares or price  per  share  under  this
           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 LLC each agrees that the LLC 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 LLC 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 LLC 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 LLC
           all agreements,  financial  statements and other documents pertaining
           to Diomed and its business requested by him or it. The Doctor and the
           LLC  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.

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     4.4   INVESTMENT  SOPHISTICATION.  The Doctor and the LLC 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 LLC, and (d) has sufficient financial resources to
           bear the loss of the LLC's investment in the Options.

     4.5   RESTRICTED  SECURITIES.  The Doctor and the LLC 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 LLC 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 LLC each
           further  acknowledges  and understands that neither he nor it has any
           right to require Diomed to register the Common Stock the LLC 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 LLC.

     4.6   DOMICILE. The legal domicile of each of the Doctor and the LLC is New
           York.

     4.7   ACCREDITED  INVESTOR.  The  LLC  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.

        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
           **CONFIDENTIAL TREATMENT REQUESTED** Products are not sold worldwide
           for EVLT.

     5.3   TERMINATION BY THE DOCTOR AND THE LLC. This Agreement may be
           terminated by the Doctor (on behalf of himself and the LLC) 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

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           and  the  LLC)  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 LLC),  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
           LLC), on the other,  may terminate  this Agreement if the practice of
           medicine ceases to be the Doctor's primary professional activity.

     5.6   SURVIVAL OF PATENT RIGHTS ON  TERMINATION.  Unless this  Agreement is
           terminated  due to Diomed's  breach,  the parties agree that Diomed's
           rights under  Section 1.3 (and the license and  assignment  of rights
           contained therein) shall survive such termination without limitation.
           With regards to the Process Patent, such retained rights shall be non
           exclusive.

     5.7   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 LLC under Section 1.2 shall
           survive until November 16, 2010. Article IV, Sections 6.2 and 6.3 and
           Sections 7.7 and 7.8 shall survive termination of this Agreement.

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   PATENT RIGHTS.  The Doctor and the LLC represent and warrant that (i)
           the Doctor is a named and actual  co-inventor  of the Process  Patent
           Rights,  (ii) the Doctor has  provided  Diomed with an  accurate  and
           complete copy of all written documents relating to the Process Patent
           Rights that are in his possession or control and a written summary of
           all other  agreements  and  arrangements  (whether  written  or oral)
           relating to the Process Patent Rights of which he has knowledge,  and
           (iii)  neither the Doctor nor the LLC is a party to any  agreement or
           arrangement  (whether written or oral) with any other  co-inventor of
           the Process  Patent Rights or any third party that would prohibit the
           Doctor from granting the license to the Process Patent Rights granted
           hereunder or require the

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           approval  or consent of any other  co-inventor  or any third party to
           the grant of such license.  The Doctor and the LLC further  represent
           and  warrant  that the  Doctor is the  inventor  of the Fiber  Patent
           Rights  and that he has the  right to grant  the  rights to the Fiber
           Patent hereunder.  The Doctor and the LLC agree to indemnify and hold
           Diomed   harmless  from  any  liability,   loss  or  cost  (including
           reasonable  attorney's  fees)  arising out of or  resulting  from any
           breach of any representation or warranty in this Section 6.2.

     6.3   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 LLC 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  LLC  FOR  DAMAGES  ARISING  OUT OF  THIS  AGREEMENT  EXCEED  THE
           AGGREGATE AMOUNT OF  CONSIDERATION  RECEIVED BY THE DOCTOR AND/OR THE
           LLC  (WHETHER  IN CASH,  OR  EXERCISED  OPTIONS  OR SHARES OF CAPITAL
           STOCK) UNDER THIS AGREEMENT

        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 LLC 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
           LLC.

     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

                         If to the Doctor or the LLC:

                                Endovenous Laser Associates, L.L.C.
                                416 East 55th Street New York, N.Y.
                                10022 Attn: Robert Min, M.D.

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           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 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.

                                                10

<PAGE>

                                  [Logo] DIOMED

     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  his  Agreement as of
the date first above written.

DIOMED, INC.

By;  PETER KLEIN: Title: CEO                      /s/  DR. Robert Min
   --------------------------                     -----------------------------
     PETER KLEIN                                       DR. Robert Min

                                                                      ENDOVENOUS
Title: CEO                                        LASER ASSOCIATES, L.L.C.

                                       By.

                                           Print Name:

                                       Title: Manager

                                                                       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.

                                       11

<PAGE>

                                  [Logo] DIOMED

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.

                                       12

<PAGE>

                                  [Logo] DIOMED

                                                                       EXHIBIT B

                                DUTIES OF DR. MIN

To train between 8 and 12 doctors per calendar year beginning with 2001, subject
to bona fide pre-existing commitments.

If requested by Diomed,  to speak and lecture on the use of the Product for EVLT
at a minimum of two major  medical  meetings  each  year,  at least one of which
shall be in an international forum.

To be available to answer questions from Diomed personnel related to EVLT for up
to five (5) hours per month during  normal  working  hours as agreed upon by the
parties  and  further  agrees  to  devote  up to three  (3)  hours  per month to
providing e-mail support with respect to EVLT as requested by Diomed.

                                       13

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