Document:

ex10_35.htm

     

      
        

      

    

    Exhibit
10.35

     

    � Deacons

    

    ***Sections
3.3(2), 3.3(3), 3.3(7), 3.3(8) and 4.1, Schedule 1 and Annexures A and B in
their entirety have been omitted pursuant to a request for confidential
treatment and have been filed separately with the U.S. Securities and Exchange
Commission.

    

    

     

    Dated
October 25, 2007

    

     

    Manufacturing
and development agreement

    

    

    Parties

    

    

    

    MiniFAB
(Aust) Pty Ltd

    ACN 100
768 474

    

     

    OcuSense,
Inc.

    

    

    

    Contact

     

    Bernard O'Shea

    Partner

    Level 15,
RACV Tower, 485 Bourke Street, Melbourne, Victoria 3000

    
      	
               
      

            	
              Telephone:

            	
              +61
      (0)3 8686 6573

            

    

    
      	
               
      

            	
              Email:

            	
              bernard.oshea@deacons.com.au

            

    

    
      	
               
      

            	
              Website:

            	
              www.deacons.com.au

            

    

    
      	
               
      

            	
              Our
      ref:

            	
              2626784

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	Contents	 	 
	 	 	 
	
              1.

            	
              Definitions
      and interpretation

            	
              1

            
	
              2.

            	
              Development
      of the First Product

            	
              6

            
	
              3.

            	
              Supply
      of Products

            	
              6

            
	
              4.

            	
              Price

            	
              13

            
	
              5.

            	
              Development
      of New Products

            	
              14

            
	
              6.

            	
              OcuSense
      Licence

            	
              18

            
	
              7.

            	
              Obligations
      of MiniFAB

            	
              20

            
	
              8.

            	
              Meeting

            	
              20

            
	
              9.

            	
              Payment
      and invoicing

            	
              21

            
	
              10.

            	
              Amendments
      to Specifications

            	
              21

            
	
              11.

            	
              Registrations,
      safety and Product liability

            	
              22

            
	
              12.

            	
              Insurance

            	
              23

            
	
              13.

            	
              Warranties

            	
              23

            
	
              14.

            	
              Third
      party licensors and contractors; Technology Transfer.

            	
              23

            
	
              15.

            	
              Term,
      breach and termination

            	
              26

            
	
              16.

            	
              Liability
      and indemnity

            	
              27

            
	
              17.

            	
              Goods
      and services tax

            	
              29

            
	
              18.

            	
              Confidentiality

            	
              29

            
	
              19.

            	
              Disputes

            	
              31

            
	
              20.

            	
              Force
      Majeure

            	
              33

            
	
              21.

            	
              Notices

            	
              33

            
	
              22.

            	
              General

            	
              34

            
	
              Schedule
      1 First Product

            	
              36

            
	
              Schedule
      2 Form of Development Order

            	
              37

            

    

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    Manufacturing and Development
Agreement dated October 25, 2007

    

    

    
      	
            	
              Parties

            	
              MiniFAB (Aust) Pty Ltd
      ACN 100 768 474

            

    

    of 9 The
Centreway, Mount Waverley, Victoria  3149, Australia (MiniFAB)

    

     

    OcuSense,
Inc.

    of 12707
High Bluff Dr., Suite 200, San Diego, CA 92130,

    U.S.A.
(OcuSense)

     

    Introduction

    

     

    
      	
               
      

            	
              A.

            	
              MiniFAB
      is a micro-nano-bio company that offers customised manufacturing
      and advanced product development
services.

            

    

     

    
      	
               
      

            	
              B.

            	
              OcuSense
      is an in-vitro diagnostics company that is developing and desires to
      commercialise a proprietary tear testing platform, TearLabTM, capable of
      accurately and rapidly diagnosing various eye diseases at the
      point-of-care.

            

    

     

    
      	
               
      

            	
              C.

            	
              MiniFAB
      and OcuSense are parties to that certain development agreement for a tear
      collection interface (“TCI”) device comprised of
      Terms of Business and the Project Proposal for Project Tear-Sense (Stage
      0), each dated 17 November 2006 (collectively, the "Development
      Agreement").

            

    

     

    
      	
               
      

            	
              D.

            	
              OcuSense
      wishes to acquire the services of MiniFAB in the manufacture and
      supply  of the TCI Device developed under the Development
      Agreement, as well as potential development and manufacture of other TCI
      Devices, and MiniFAB has agreed to provide such services, on the terms of
      this Agreement.

            

    

     

    It
is agreed

     

    
      	
            	
              1.

            	
              Definitions
      and interpretation

            

    

     

    
      	
            	
              1.1 

            	
              Definitions

            

    

     

    In this
Agreement:

     

    
      	
               
      

            	
              (1)

            	
              Agreement means this
      document, including any schedule or annexure to
  it;

            

    

     

    
      	
               
      

            	
              (2)

            	
              Annual Production
      Capacity means, in respect of each Product, the
      quantity

            

    

    
      	
               
      

            	
              of
      the Product that MiniFAB is reasonably capable of manufacturing each year,
      and as varied in accordance with clause 3.5. The Annual Production
      Capacity for the First Product is specified in Schedule 1 and the Annual
      Production Capacity for the New Products is to be agreed between the
      parties pursuant to clause 5.8;

            

    

     

    
      	
               
      

            	
              (3)

            	
              Business Day means a day
      that is not a Saturday, Sunday or any other day which is a public holiday
      or a bank holiday in Melbourne,
Australia;

            

    

     

    
      	
               
      

            	
              (4)

            	
              cGMP means current Good
      Manufacturing Practices, as established by
  the FDA;

            

    

     

    
      	
               
      

            	
              (5)

            	
              Commencement Date means
      October 19, 2007;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (6)

            	
              Commercially Reasonable
      Efforts means the exercise of such efforts and commitment of
      such resources by MiniFAB as would be expended on, or committed by MiniFAB
      for, a comparable development or manufacturing program of a similar scope
      and at a similar stage in development or product lifecycle, comparable
      profit margin and potential, competitive landscape, and risk profile, in
      each case with due regard to the nature of efforts and cost required for
      such development or manufacturing and taking into account payments made by
      OcuSense, or obligated to be made by OcuSense, under this
      Agreement;

            

    

     

    
      
        	
                 
      

              	
                (7)

              	
                Confidential Information
      of a party means any Information (and all tangible and intangible
      embodiments thereof of any kind whatsoever) provided by that party or its
      Representatives to the other party or its Representatives whether provided
      orally or in any form and is marked, identified as or otherwise
      acknowledged to be confidential at the time of disclosure to the other
      party; provided, however, that information, data and results generated by
      MiniFAB under the Development Agreement, or in the course of performing
      activities under this Agreement, that relate to OcuSense's technology or
      to the development of Products or prototypes thereof shall be deemed the
      Confidential Information of
OcuSense;

              

      

    

     

    
      	
               
      

            	
              (8)

            	
              Default Rate means 10%
      per annum;

            

    

     

    
      	
               
      

            	
              (9)

            	
              Delivery Point means the
      premises of MiniFAB located at 1 Dalmore Drive, Scoresby, Victoria,
      AUSTRALIA;

            

    

     

    
      	
               
      

            	
              (10)

            	
              Development Expenses
      means all costs and expenses incurred by MiniFAB for the development
      of a New Product as more particularly described in clause 5.5(1)(a),
      but does not include the capital expenditures referred to in clause 5.5(1)(b);

            

    

     

    
    

    
    

    
      	
               
      

            	
              (11)

            	
              Development Order means
      a document substantially in the form set out in Schedule 2 executed
      by or on behalf of MiniFAB and OcuSense which details a New Product
      to be developed by MiniFAB in accordance with clause
  5;

            

    

     

    
      	
               
      

            	
              (12)

            	
              Development Request has
      the meaning given in clause 5.2;

            

    

     

    
      	
               
      

            	
              (13)

            	
              EXW means "ex works",
      according to the Incoterms 2000 published by the International
      Chamber of Commerce (ICC) as amended from time to
  time;

            

    

     

    
      	
               
      

            	
              (14)

            	
              FDA means the United
      States Food and Drug
Administration;

            

    

     

    
      	
               
      

            	
              (15)

            	
              First Product means the
      TCI Device developed under the Development Agreement, together with
      the capsule and applicable packaging, all as further described in Schedule
      1;

            

    

     

    
      	
               
      

            	
              (16)

            	
              Force Majeure means any
      cause which is not within the reasonable control of the party affected by
      it including, but not limited to, acts of God, war declared or undeclared,
      civil disturbance, acts or omissions of government or other competent
      authority, fire, lightning, explosion or flood, but excludes any cause due
      to lack of demand or market success for the
  Products;

            

    

     

    
      	
               
      

            	
              (17)

            	
              Governmental Agency
      means any court, administrative agency or commission or other
      governmental agency, body or instrumentality, domestic or
      foreign;

            

    

     

    
      	
               
      

            	
              (18)

            	
              Information means any
      information or know-how pertaining to, or in the possession or
      control of, a party including, but not limited to,
      information concerning its business, systems, technology and afairs,
      such as:

            

    

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (a)

            	
              financial,
      technological, strategic or business information, concepts, plans,
      strategies, directions or
systems;

            

    

    
    

     

    
      	
               
      

            	
              (b)

            	
              research,
      development, operational, legal, marketing or accounting information,
      concepts, plans, strategies, directions or
  systems;

            

    

    
    

     

    
      	
               
      

            	
              (c)

            	
              technology,
      source and object codes for computer sofware, intellectual property
      rights and technical and historical information relating
      thereto;

            

    

    
    

     

    
      	
               
      

            	
              (d)

            	
              customer
      and supplier information; and

            

    

     

    
      	
               
      

            	
              (e)

            	
              information
      relating to the Products;

            

    

     

    
      	
               
      

            	
              (19)

            	
              Insolvency Event in the
      context of a person means:

            

    

     

    
      	
               
      

            	
              (a)

            	
              a
      receiver, receiver and manager, official manager,
      trustee, administrator, other controller (as defined in the Corporations Act
      2001 (Cth)) or similar official is appointed, or steps are
      taken for such appointment, over any of the equipment or undertaking
      of the person;

            

    

     

    
      	
               
      

            	
              (b)

            	
              the
      person is or becomes unable to pay its debts when they are due or is
      or becomes unable to pay its debts within the meaning of the Corporations Act
      2001 (Cth) or is presumed to be insolvent under the Corporations Act
      2001 (Cth);

            

    

     

    
      	
               
      

            	
              (c)

            	
              the
      person ceases or threatens to cease to carry on business;
    or

            

    

     

    
      	
               
      

            	
              (d)

            	
              an
      application or order is made for the liquidation of the person or a resolution
      is passed or any steps are taken to liquidate or pass a resolution for the
      liquidation of the person otherwise than for the purpose of an
      amalgamation or
reconstruction;

            

    

    
    

     

    
      	
               
      

            	
              (20)

            	
              Intellectual Property
      means any copyright, design (whether registered or unregistered),
      trademark (whether registered or unregistered), patent or patent
      application or invention, circuit layout, know-how, confidential
      information (whether such information is in writing or recorded in any
      other form) and other proprietary or personal rights arising from
      intellectual activity in the business, industrial, scientific or artistic
      fields;

            

    

     

    
      	
               
      

            	
              (21)

            	
              Supply Start Date has
      the meaning given in clause 3.2(2);

            

    

     

    
      	
               
      

            	
              (22)

            	
              Loss means any loss,
      damage, cost, interest, expense, fee, penalty, fine, forfeiture,
      assessment, demand, liability or damages incurred by a person to the
      extent resulting from any action, suit, claim, proceeding or cause of
      action brought against such party by a third
  party.

            

    

     

    
      	
               
      

            	
              (23)

            	
              Minimum Orders means, in
      respect of each Product, the minimum quantity of Product that
      OcuSense must purchase from MiniFAB during a specified period. The
      Minimum Orders are specified in clause
3.3(7);

            

    

     

    
      	
               
      

            	
              (24)

            	
              New Products means any
      TCI Devices developed pursuant to this Agreement and any other goods
      that the parties agree are New Products. For the avoidance of doubt,
      New Products do not include the First
Product;

            

    

     

    
      	
               
      

            	
              (25)

            	
              OcuSense IP has the meaning
      given in clause 6.1;

            

    

     

    
      	
               
      

            	
              (26)

            	
              Price means, in respect
      of each Product, the price payable by OcuSense to MiniFAB for the
      supply of that Product, inclusive of all packaging, labelling and all
      other handling charges (other than the freight
  costs);

            

    

     

    
      	
               
      

            	
              (27)

            	
              Products means the First
      Product and any New Products;

            

    

     

    
      	
               
      

            	
              (28)

            	
              Prototype First Product
      means a pre-production prototype of the First Product conforming to
      the First Product Requirement Definitions, and mayinclude prototype units
      of the First Product at different stages of development (such
      as, for example, alpha prototypes and beta
    prototypes).

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (29)

            	
              Purchase Order has the
      meaning given in clause 3.4;

            

    

     

    
      	
               
      

            	
              (30)

            	
              Quarter means a period
      of three months commencing on 1 January, 1 April, 1 July or 1
      October;

            

    

     

    
      	
               
      

            	
              (31)

            	
              R&D Services means
      those development services for New Products as specified in clause
      5.1;

            

    

     

    
      	
               
      

            	
              (32)

            	
              Registrations means all
      registrations or approvals required from the relevant Regulatory
      Authority or Authorities for the export, import, storage,
      promotion, supply, sale or other distribution in the of the
      Products;

            

    

     

    
      	
               
      

            	
              (33)

            	
              Regulatory Authority
      means any Governmental Agency having responsibility for the
      regulation of, oversight of or whose approval is required for
      the manufacture, marketing, sale or supply of the Products or the
      facilities in which it is
manufactured;

            

    

     

    
      	
            	
              (34) 

            	
              Regulatory Requirements
      means, collectively:

            

    

     

    
      	
            	
              (a)

            	
              all
      laws and regulations and any and all other requirements of the FDA or
      any other Regulatory Authority that are mandatory to the manufacture,
      packaging, labelling, storage, handling and shipment of the Products by
      MiniFAB and, subject to clause 2.1, includes cGMP;
  and

            

    

     

    
      	
            	
              (b)

            	
              all
      standards set by the International Organization for Standardization (ISO)
      that are mandatory to the manufacture, packaging, labelling, storage,
      handling and shipment of the Products by MiniFAB, including without
      limitation ISO 13485:2003 (Medical Devices Quality Management System), ISO
      10993-1 (Biocompatibility), ISO 10993-5 (Biocompatibility: Cytotoxicity),
      and ISO 10993-10 (Biocompatibility: Sensitization and Irritation), but
      excludes

            

    

     

    
      	
            	
              (c)

            	
              any
      law, regulation, requirement or standards that apply to the design,
      trials, marketing, sales or supply of the Products (and which do not also
      apply to the manufacture of Products and/or to MiniFAB's supply to
      OcuSense hereunder);

            

    

     

    
      	
               
      

            	
              (35)

            	
              Representative of a
      party means the employees, directors, agents or advisors of that
      party;

            

    

     

    
      	
               
      

            	
              (36)

            	
              Requirement Definitions
      means, with respect to any Product, the written documentation guiding
      MiniFAB's development of such Product, including detailed requirement
      definitions for such Product, as agreed by the parties. The initial
      Requirement Definitions for the First Product have been agreed by the
      parties as of the Commencement Date. The Requirement Definitions may be
      modified from time to time by mutual agreement of OcuSense and MiniFAB in
      the course of development work for such Product, and MiniFAB agrees to use
      Commercially Reasonable Efforts to accommodate changes to the Requirement
      Definitions as OcuSense may from time to time
  request;

            

    

     

    
      	
               
      

            	
              (37)

            	
              Second Product means the
      first New Product developed pursuant to this Agreement, which the parties
      intend to be a TCI Device similar to the First Product, provided that such
      product would be designed to measure either (i) a marker other than
      osmolarity, or (ii) both osmolarity and one other additional
      marker;

            

    

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    
      	
               
      

            	
              (38)

            	
              Specifications means,
      with respect to any Product, the definitive written documentation
      guiding MiniFAB's manufacture, packaging, labelling, storage and handling
      of such Product, prepared and agreed in accordance with clause 3.1; in
      each case, and as modified from time to time by mutual agreement of
      OcuSense and MiniFAB in accordance with clause
  10;

            

    

     

    
      	
               
      

            	
              (39)

            	
              Successful Completion
      has the meaning provided in clause
5.10;

            

    

     

    
      	
               
      

            	
              (40)

            	
              TCI Device means any tear
      collection interface device or any microfluidicbased
    device;

            

    

     

    
      	
               
      

            	
              (41)

            	
              Technical Agreement
      means the technical agreement entered into between MiniFAB and OcuSense
      with respect to each Product, as may be amended from time to time, which
      specifies their respective responsibilities for quality control and
      quality assurance and related activities and qualifications with respect
      to the applicable Product. The Technical Agreement for the First Product
      shall be entered into concurrently with this Agreement. Mutually agreed
      Technical Agreements for other Products shall be entered into prior to
      commercial manufacture and supply of such
  Products;

            

    

     

    
      	
               
      

            	
              (42)

            	
              Term means the term of
      this Agreement, including any extended term underclause 15.1;
      and

            

    

     

    
      	
               
      

            	
              (43)

            	
              Wholesale Price of a
      Product at a particular time means the highest wholesale price at
      which OcuSense has sold such Product to third parties during the
      previous 3 months period.

            

    

     

    
      	
               
      

            	
              1.2

            	
              Interpretation

            

    

     

    
      	
               
      

            	
              (1)

            	
              Reference
      to:

            

    

     

    
      	
            	
              (a)

            	
              one
      gender includes the others;

            

    

     

    
      	
            	
              (b)

            	
              a
      person includes a body corporate;

            

    

     

    
      	
            	
              (c)

            	
              a
      party includes the party's executors, administrators, successors
      and permitted assigns;

            

    

     

    
      	
            	
              (d)

            	
              a
      statute, regulation, code or other law or a provision of any of
      them includes:

            

    

     

    
      	
            	
              (i)

            	
              any
      amendment or replacement of it; and

            

    

     

    
      	
            	
              (ii)

            	
              another
      regulation or other statutory instrument made under it, or
      made under it as amended or replaced;
and

            

    

    
    

     

    
      	
               
      

            	
              (e)

            	
              dollars
      means Australian dollars unless otherwise
  stated.

            

    

     

    
      	
            	
              (2)

            	
              "Including"
      and similar expressions are not words of
  limitation.

            

    

     

    
      	
            	
              (3)

            	
              Where
      a capitalized word or expression is given a particular meaning,
      other parts of speech and grammatical forms of that capitalized word
      or expression have a corresponding
meaning.

            

    

     

    
      	
            	
              (4)

            	
              Headings
      and any table of contents or index are for convenience only and do not
      form part of this Agreement or affect its
  interpretation.

            

    

     

    
      	
            	
              (5)

            	
              A
      provision of this Agreement must not be construed to the disadvantage of a
      party merely because that party was responsible for the preparation of the
      Agreement or the inclusion of the provision in the
    Agreement.

            

    

     

    
      	
            	
              (6)

            	
              If
      an act must be done on a specified day which is not a Business Day, it
      must be done instead on the next Business
  Day.

            

    

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	
            	
              1.3

            	
              Parties

            

    

     

    
      	
               
      

            	
              (1)

            	
              If
      a party consists of more than 1 person, this Agreement binds each of
      them separately and any 2 or more of them
  jointly.

            

    

     

    
      	
               
      

            	
              (2)

            	
              An
      obligation, representation or warranty in favour of more than 1 person is
      for the benefit of them separately and
  jointly.

            

    

     

    
      	
               
      

            	
              (3)

            	
              A
      party which is a trustee is bound both personally and in its capacity as
      a trustee.

            

    

    

    
      	
            	
              2.

            	
              Development
      of the First Product

            

    

     

    
      	
            	
              2.1

            	
              Regulatory approvals and
      exemptions

            

    

     

    As
between the parties, OcuSense shall be responsible, in its discretion, for
activities in seeking Registrations and other regulatory approvals from
applicable Regulatory Authorities with respect to Products (including any CLIA
waiver from the FDA in respect of the FDA 510(k) application for the OcuSense
system which uses the Products developed under this Agreement).

     

    
      	
            	
              2.2

            	
              Design Development
      completed

            

    

     

    The
parties agree that the development of the design for the First Product has
been completed, and the Requirement Definitions of the First Product are as
annexed to Annexure A.

     

    
      	
            	
              2.3 

            	
              Prototype Acceptance
      Testing

            

    

     

    
      	
            	
              (1)

            	
              The
      parties agree that MiniFAB has manufactured and supplied to OcuSense
      sufficient units of the Alpha Prototype First Product for the purposes of
      testing on or about 26 July 2007, and that prior to the Commencement Date,
      OcuSense has tested such units to determine whether the Alpha Prototype
      First Product is as described in "Design Specification Stage 1 Work
      package

            

    

    1.1 Final
Report", and has generated and provided MiniFAB with feedback regarding areas of
improvement with respect to the First Product, to be addressed by MiniFAB prior
to manufacturing and supplying OcuSense with the Beta Prototype First
Product.

     

    
      	
            	
              (2)

            	
              The
      parties acknowledge that, as of the Commencement Date, manufacture, supply
      and testing of units of the Beta Prototype First Product has not yet
      occurred, and further acknowledge that the terms and conditions of the
      Development Agreement continue to apply with respect to such
      activities.

            

    

     

    
      	
            	
              (3)

            	
              MiniFAB
      will, in accordance with its obligations under the
      Development Agreement, develop and optimise its manufacturing process
      such that MiniFAB can manufacture the First Product to meet the
      Minimum Orders of the First
Product.

            

    

     

    
      
        	
              	
                3.

              	
                Supply
      of Products

              

      

    

     

    
      	
            	
              3.1

            	
              Specifications

            

    

     

    
      	
            	
              (1)

            	
              The
      initial Specifications for the First Product have been agreed by the
      parties prior to execution of this Agreement. Promptly after
      OcuSense's Acceptance of a New Product as set forth in clause 5.9, MiniFAB
      shall prepare, on the basis of the most recent Requirement Definitions for
      such New Product, and provide to OcuSense for approval, the definitive
      Specifications for the applicable Product, for MiniFAB's use to
      manufacture, package, label, store and handle the applicable
      Product.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (2)

            	
              OcuSense
      will review the Specifications submitted by MiniFAB under
      clause 3.1(1) and may request amendments or modifications to the
      Specifications if:

            

    

     

    
      	
               
      

            	
              (a)

            	
              the
      Specifications are inconsistent with the Requirement
      Definitions;

            

    

     

    
      	
            	
              (b)

            	
              the
      Specifications are inconsistent with the Regulatory
      Requirements;

            

    

     

    
      	
            	
              (c)

            	
              the
      requirements of the Specifications are unreasonable or uncommercial
      having regard to the Price or proposed Price of the relevant Product;
      or

            

    

     

    
      	
            	
              (d)

            	
              the
      requirements of the Specifications are unrelated to the
      Product.

            

    

     

    
      	
               
      

            	
              (3)

            	
              MiniFAB
      must act reasonably and accommodate any requests for amendment to the
      Specifications made by OcuSense under clause
  3.1(2).

            

    

     

    
      	
               
      

            	
              (4)

            	
              OcuSense
      must accept the Specifications when it is satisfied that the
      Specifications are consistent with the Requirement Definitions and the
      Regulatory Requirements, and are reasonable and commercial having regard
      to the Price or proposed Price of the relevant
  Product.

            

    

     

    
      	
               
      

            	
              (5)

            	
              The
      parties agree that the definitive Specifications for the First Product are
      set forth in Annexure B.

            

    

     

    
      	
               
      

            	
              (6)

            	
              The
      Specifications for any Product may be modified or amended by mutual
      written agreement of the Parties. In the event that OcuSense requests
      changes to the Specifications for reasons other than those set forth in
      clause 3.1(2) above, MiniFAB agrees to use Commercially Reasonable Efforts
      to accommodate such requested
changes.

            

    

     

    
      	
            	
              3.2

            	
              Capital investments and Supply
      Start Date

            

    

     

    
      	
            	
              (1) 

            	
              MiniFAB
      will:

            

    

     

    
      	
               
      

            	
              (a)

            	
              in
      respect of the First Product - from the Commencement Date;
    and

            

    

     

    
      	
               
      

            	
              (b)

            	
              in
      respect of each New Product - in accordance with the project
      plan specified in the Development Order for that New
      Product,

            

    

     

    use
Commercially Reasonable Eforts to acquire, construct or develop such plant,
equipment, raw materials, labour, utilities and capital improvements as are
necessary to manufacture the Product to meet the Minimum Orders of that Product.
MiniFAB shall set up the manufacturing process, manufacture the Products, and
assemble and package the Products, all in accordance with the Specifications and
all Regulatory Requirements. MiniFAB shall label the Products with such labels,
tradenames, and trademarks as directed by OcuSense.

     

    
      	
               
      

            	
              (2)

            	
              MiniFAB
      will notify OcuSense when MiniFAB reasonably believes that it has the
      necessary plant and equipment to manufacture a particular Product to meet
      the Minimum Orders of that Product. Promptly following such notification
      by MiniFAB, the parties shall mutually agree on and set the date (Supply Start Date for
      that Product) on which OcuSense may begin placing binding Purchase Orders
      for that Product pursuant to clause
3.4.

            

    

     

    
      	
               
      

            	
              (3)

            	
              It
      is the intention of the parties that the Supply Start Date for the First
      Product shall take place no later than March 15, 2008 (the initial "Cut-Off Date"). If the
      Supply Start Date for the First Product has not taken place on or prior to
      the Cut-Off Date, then, provided that MiniFAB has used Commercially
      Reasonable Efforts to meet the Cut-Off Date, the parties
    will:

            

    

     

    
      	
               
      

            	
              (a)

            	
              meet
      and discuss the reasons for the
failure;

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
            	
              (b)

            	
              negotiate
      a mutually agreed remedy plan to address the reasons for the failure;
      and

            

    

     

    
      	
            	
              (c)

            	
              acting
      reasonably, agree on a revised Cut-Off Date, subject to clause 3.2(4)
      .

            

    

     

    MiniFAB
must implement the remedy plan and use Commercially Reasonable Efforts to meet
the revised Cut-Off Date.

     

    
      	
               
      

            	
              (4)

            	
              The
      procedures described in clause 3.2(3) will apply for at least two times,
      but the revised Cut-Off Date shall not be later than sixty (60) days
      following the initial Cut-Off Date specified in clause 3.2(3), above. If
      MiniFAB fails to meet the Cut-Off Date for the third time, then OcuSense
      may immediately terminate this Agreement, which shall be effective upon
      written notice to MiniFAB.

            

    

     

    
      	
            	
              3.3 

            	
              Supply and Purchase
      Obligations

            

    

     

    
      	
               
      

            	
              (1)

            	
              MiniFAB
      shall manufacture the Products exclusively for OcuSense; and MiniFAB
      shall sell the Products exclusively to OcuSense or its designee; and
      MiniFAB shall not otherwise manufacture, sell, or distribute the Products
      to any third party. MiniFAB acknowledges that OcuSense may manufacture
      Products itself and/or engage one or more third parties in addition to
      MiniFAB to supply the Products to
OcuSense.

            

    

    

    ***Section
3.3(2) and 3.3(3) in their entirety have been omitted pursuant to a request for
confidential treatment and have been filed separately with the U.S. Securities
and Exchange Commission.

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              (4)

            	
              MiniFAB
      hereby acknowledges that OcuSense needs to obtain a reliable supply of the
      Products that meets certain quality, quantity and timing requirements, and
      agrees to comply with the following Supply
      Requirements:

            

    

     

    
      	
            	
              (a)

            	
              subject
      to clause 3.2(3), ensure that the Supply Start Date for the First Product
      occurs on or prior to the Cut-Off
Date;

            

    

     

    
      	
            	
              (b)

            	
              ensure
      that the Supply Start Date for the Second Product occurs on or prior to
      the applicable cut-off date as specified in the Development Order for the
      Second Product;

            

    

     

    
      	
            	
              (c)

            	
              ensure
      that each batch of Product are in full compliance with the Specifications
      (including without limitation any failure rates specified therein), the
      Technical Agreement, and the Regulatory Requirements;
  and

            

    

     

    
      	
            	
              (d)

            	
              ensure
      that, for each 3 month period, at least 95% of shipments of Products are
      delivered by the delivery date required under clause
  3.6.

            

    

     

    
      	
               
      

            	
              (5)

            	
              If
      MiniFAB fails to comply with the Supply Requirements then, subject
      to clause 3.3(6):

            

    

     

    
      	
            	
              (a)

            	
              MiniFAB
      must provide OcuSense with the reasons for
      the non-compliance;

            

    

     

    
      	
            	
              (b)

            	
              the
      parties must meet and discuss the reasons given by
  MiniFAB;

            

    

     

    
      	
            	
              (c)

            	
              the
      parties must, acting reasonably, negotiate a mutually agreed remedy
      plan to address the reasons for the non-compliance;
  and

            

    

     

    
      	
            	
              (d)

            	
              MiniFAB
      must implement the agreed remedy
plan.

            

    

     

    
      	
            	
              (6)

            	
              If
      MiniFAB fails to comply with the same Supply Requirement again within
      a period of 3 months after the first non-compliance, then MiniFAB is
      deemed to have committed a material breach of this Agreement for the
      purposes of clause 15.2(1).

            

    

     

    ***Section
3.3(7) and 3.3(8) in their entirety have been omitted pursuant to a request for
confidential treatment and have been filed separately with the U.S. Securities
and Exchange Commission.

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      
        	
              	
                (9)

              	
                OcuSense
      shall have no purchase obligations under this Agreement, except as
      expressly set forth in this clause 3.3. For the avoidance of doubt,
      subject to clauses 3.3(2), 3.3(7) and 3.3(8), OcuSense shall have the
      right to engage any third party to manufacture and supply any
      Products.

              

      

    

     

    
      	
            	
              3.4

            	
              Forecast and
      ordering

            

    

     

    
      	
               
      

            	
              (1)

            	
              Not
      less than 3 months prior to the Supply Start Date for a Product and on
      or before the 1st date of each calendar month thereafter, OcuSense
      must submit to MiniFAB a non-binding forecast of the quantity of each of
      the Products that OcuSense expects to purchase in each of the 3rd through
      the 6th month following the month for which the forecast is due (e.g., the
      forecast due on January 1, 2010 would contain a forecast for April through
      June of 2010).

            

    

     

    
      	
               
      

            	
              (2)

            	
              OcuSense
      must order the Products 45 days prior to their requested deliverydates (as
      determined in accordance with clause 3.6) by sending binding written
      purchase orders to MiniFAB stating the Product, unit quantities and any
      other information reasonably required by MiniFAB from time to time (Purchase Orders).
      OcuSense may begin placing Purchase Orders for any particular Product
      commencing with the Supply Start Date for that Product. OcuSense shall use
      reasonable endeavours to ensure that the quantities of Products set forth
      in its Purchase Orders are consistent with the then-current
      forecast.

            

    

     

    
      	
               
      

            	
              (3)

            	
              A
      Purchase Order constitutes an irrevocable offer made by OcuSense to
      MiniFAB for the supply of the Products specified in the Purchase Order on
      the terms and conditions of this Agreement. Once received by MiniFAB, the
      Purchase Order is firm and may not be cancelled or modified without
      MiniFAB's prior written consent.

            

    

     

    
      	
               
      

            	
              (4)

            	
              Subject
      to clauses 3.4(5) or 3.5, MiniFAB must accept a Purchase Order if the
      quantity of the Product the subject of the Purchase Order is between 80%
      and 150% of the most recent forecast. In addition, MiniFAB agrees to use
      Commercially Reasonable Efforts to accept and satisfy Purchase Orders
      exceeding 150% of the most recent forecast. In the event that OcuSense
      places a Purchase Order that exceeds 150% of the most recent forecast,
      MiniFAB shall (i) accept the Purchase Order with respect to quantities at
      least equal to 150% of the most recent Purchase Order, and (ii) notify
      OcuSense in writing of those quantities (if any) exceeding 150% of the
      most recent forecast with respect to which MiniFAB is rejecting the
      Purchase Order.

            

    

     

    
      	
               
      

            	
              (5)

            	
              If
      MiniFAB believes, on reasonable grounds, that a Purchaser Order is
      materially incorrect or, to the extent a Purchase Order exceeds 150% of
      forecast amounts, it is not capable of satisfying the Purchase Order with
      respect to excess amounts so ordered, then MiniFAB may reject the Purchase
      Order and must notify OcuSense as soon as possible. If MiniFAB does not
      reject to a Purchaser Order within 5 Business Days of receipt of the
      Purchase Order, then MiniFAB is deemed to have accepted the Purchaser
      Order. Any rejection by MiniFAB of a Purchase Order that is not provided
      for in this clause 3.4(5) or 3.5 is deemed to be a material breach of this
      Agreement for the purposes of clause
15.2(1).

            

    

     

    
      	
            	
              3.5

            	
              Annual Production
      Capacity

            

    

     

    
      	
            	
              (1)

            	
              Despite
      clause 3.4(4), MiniFAB may, in its absolute discretion, refuse
      to accept any Purchase Order for a particular Product if the Purchase
      Order would require MiniFAB to exceed the Annual Production Capacity of
      that Product during that year.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              (2)

            	
              The
      parties may, from time to time, vary the Annual Production Capacity of a
      particular Product by agreement in writing. If OcuSense requests MiniFAB
      to increase the Annual Product Capacity, the parties shall promptly confer
      and discuss such matter in good faith, and MiniFAB shall endeavor to
      inform OcuSense within thirty (30) days whether MiniFAB will agree to the
      requested increase in the Annual Production
  Capacity.

            

    

     

    
      	
            	
              3.6

            	
              Delivery

            

    

     

    MiniFAB
will manufacture and deliver the Products EXW (Incoterms 2000) the Delivery
Point within 45 days afer the date of Purchase Order, unless the Purchase Order
specifies a later delivery date. MiniFAB shall pay pre-pay all freight,
insurance charges, taxes, import and export duties, inspection fees and other
charges applicable to the transport and delivery of the Products, and add all
such charges to invoices to OcuSense as a separate line item at pass-through
cost.MiniFAB shall use such shipping method and carrier, and shall provide such
carrier with such shipping instructions, as specified by OcuSense. In the even
that any two or more consecutive shipments ordered by OcuSense in accordance
with clause 3.4 are delivered more than five (5) business days after the
delivery date indicated in the first sentence of this clause 3.6, then OcuSense
shall be entitled to a thirty percent (30%) discount on the Price of the actual
Products in such shipments which were not actually delivered by the required
delivery date. The parties acknowledge and agree that such discount is
independent of, and without prejudice to, other applicable remedies that may be
available to OcuSense for failures of MiniFAB to supply Products
in accordance with this Agreement.

     

    
      	
            	
              3.7

            	
              Inspection and Nonconforming
      Goods

            

    

     

    
      	
            	
              (1)

            	
              OcuSense
      must inspect the Products within 14 days after delivery (or
      such longer time as provided in the Technical Agreement) and must
      accept the Products if they meet the Specifications, the requirements
      of the Technical Agreement, and the Regulatory Requirements. If OcuSense
      fails to object in writing within the applicable period, then OcuSense
      must accept the delivered Products. OcuSense may reject the delivered
      Products only if the Products fail to meet the Specifications, the
      requirements of the Technical Agreement,and/or the Regulatory
      Requirements. If OcuSense rejects the delivered Products, OcuSense must
      provide MiniFAB in writing the reasons for the rejection and the
      reasonably available evidence to substantiate those reasons.
    

            

    

     

    
      	
            	
              (2)

            	
              If OcuSense rejects the
      relevant Product, then MiniFAB shall promptly supply conforming
      replacement Products as soon as possible, whether or not MiniFAB agrees
      that OcuSense properly rejected such Products. MiniFAB agrees to notify
      OcuSense in writing if such replacement Products will not be shipped
      within five (5) business days.

            

    

     

    
      	
            	
              (3)

            	
              If
      OcuSense properly rejected the original Products, then OcuSense's payment
      for the rejected Products shall be deemed payment for the replacement
      Products. If OcuSense was not entitled to reject the original Products,
      then OcuSense shall pay for both the rejected Products and the replacement
      Products.

            

    

     

    
      	
            	
              (4)

            	
              If
      the parties disagree whether OcuSense properly rejected the original
      Products, then the parties shall refer such matter to a mutually
      acceptable, independent testing laboratory (the Testing Lab) to
      determine whether such Products were properly rejected. The fees and costs
      of the Testing Lab shall be borne by OcuSense if the Testing Lab
      determines that the Products were improperly rejected and by MiniFAB if
      the Testing Lab determines that the Products were properly rejected. If
      the Testing Lab is unable to determine whether the rejected Products met
      the Specifications, the requirements of the Technical Agreement or the
      Regulatory Requirements, then either party may submit the matter to the
      dispute resolution process in clause
19.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
            	
              (5)

            	
              OcuSense
      may withhold payment for any rejected Products (and only the rejected
      Products) until:

            

    

     

    
      	
            	
              (a)

            	
              MiniFAB
      re-delivers conforming Products, or

            

    

     

    
      	
            	
              (b)

            	
              the
      Testing Lab or dispute resolution process determines that
      the Products rejected by OcuSense met the Specifications,
      the requirements of the Technical Agreement and the
      Regulatory Requirements.

            

    

     

    
      	
            	
              3.8

            	
              Technical
      Agreements

            

    

     

    MiniFAB
and OcuSense shall enter into a Technical Agreement with respect to the First
Product promptly following (and no later than sixty (60) days after) the
Commencement Date, and the manufacture, production and supply of the First
Product shall be conducted in accordance with such Technical Agreement. The
parties shall enter into a Technical Agreement with respect to each New Product
promptly following agreement upon the applicable Requirement Definitions, and no
later than ninety (90) days prior to the applicable Supply Start Date for such
New Product. MiniFAB and OcuSense shall determine in good faith those
subcontractors (if any) performing any manufacturing activities with respect to
Products with whom OcuSense shall enter into separate written technical or
quality agreements. Technical Agreement will address matters such as shelf life,
storage, release requirements, facility registrations, recordkeeping, retention
and review of documentation, annual product review, shipping products only upon
release, and the like, which are not addressed in this Agreement.

     

    
      	
            	
              3.9

            	
              Quality
      Control

            

    

     

    MiniFAB
shall conduct all quality control testing of the Products supplied hereunder
prior to shipment in accordance with the Technical Agreements and applicable
Laws. MiniFAB shall, and shall cause its subcontractors to, retain records and
samples of Products relating to such testing, and samples (identified by batch
number) of Products supplied to OcuSense, in each case in conditions and for
times as required by applicable Law (collectively, "Shipment Samples"), and
shall provide OcuSense with reasonable access to the Shipment Samples for
testing and other purposes on OcuSense's request. If OcuSense conducts quality
control testing of Products supplied
hereunder afer delivery thereof to OcuSense, OcuSense shall also use the same
analytical methodology as used by MiniFAB. Upon written request from OcuSense,
MiniFAB shall provide a reasonably detailed description of the analytical
methodology used by MiniFAB for quality control testing of the
Products.

     

    
      	
            	
              4.

            	
              Price

            

    

     

    ***Section
4.1 has been omitted in its entirety pursuant to a request for confidential
treatment and has been filed separately with the U.S. Securities and Exchange
Commission.

     

    
      	
            	
              4.2

            	
              Price
      revisions

            

    

     

    
      	
            	
              (1)

            	
              When
      the Minimum Orders requirement for the Second Product has
      been satisfied, the parties will meet and discuss any revision to the
      Price of the Second Product, with the intent that the price will be
      adjusted as mutually agreed by the parties to
  reflect:

            

    

     

    
      	
            	
              (a)

            	
              the
      fact that the initial capital expenses incurred by MiniFAB have
      been amortised;

            

    

     

    
      	
            	
              (b)

            	
              any
      further capital expenses incurred by MiniFAB to meet expected demand;
      and

            

    

     

    
      	
            	
              (c)

            	
              any
      cost savings and efficiency improvements (which will be
      shared equally unless otherwise agreed between the
      parties).

            

    

     

    
      	
            	
              (2)

            	
              The
      parties agree to act reasonably when negotiating the revision to the
      Price of the Second
Product.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
            	
              5.

            	
              Development
      of New Products

            

    

     

    
      	
            	
              5.1

            	
              R&D Services

            

    

     

    
      	
               
      

            	
              (1)

            	
              R&D
      Services for New Products include:

            

    

     

    
      	
            	
              (a)

            	
              project
      management services relating to the development of the
      New Product;

            

    

     

    
      	
            	
              (b)

            	
              assisting
      OcuSense in the development, validation and finalisation of the
      Requirement Definitions for the New
Product;

            

    

     

    
      	
            	
              (c)

            	
              assisting
      OcuSense in the development, validation and finalisation of the
      Specifications for the New Product;

            

    

     

    
      	
            	
              (d)

            	
              using
      Commercially Reasonable Efforts to develop processes, methodology and
      technology to manufacture the New Product;

            

    

     

    
      	
            	
              
                (e)

              

            	
              using
      Commercially Reasonable Efforts to evaluate and recommend appropriate
      technology necessary to manufacture the New
  Product;

            

    

     

    
      	
            	
              (f)

            	
              using
      Commercially Reasonable Efforts to develop and construct plant and
      equipment necessary to manufacture the New Product;
  and

            

    

     

    
      	
            	
              (g)

            	
              such
      other services as specified in a Development
  Order.

            

    

     

    
      	
            	
              (2)

            	
              R&D
      Services exclude:

            

    

     

    
      	
            	
              (a)

            	
              the
      initial formulation of and research on the Requirement
      Definitions for the New
Product;

            

    

     

    
      	
            	
              (b)

            	
              carrying
      out experiments, clinical tests or other validation methodologies in
      relation to the New Product;

            

    

     

    
      	
            	
              (c)

            	
              preparations
      or filings relating to obtaining Registration for the
      New Product;

            

    

     

    
      	
            	
              (d)

            	
              sales,
      distribution, marketing or public release of the New
    Product;

            

    

     

    
      	
            	
              (e)

            	
              patent
      review; and

            

    

     

    
      	
            	
              (f)

            	
              legal
      or other professional advisory
services.

            

    

     

    
      	
            	
              5.2

            	
              Request for
      development

            

    

     

    
      	
            	
              (1)

            	
              OcuSense
      may, from time to time, request MiniFAB in writing to provide
      R&D Services to develop a New Product (Development
      Request).

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
            	
              (2)

            	
              Subject
      to clause 5.2(4), if and when OcuSense elects, in its discretion,
      to develop a Second Product, OcuSense agrees that it will provide an
      opportunity for MiniFAB to provide the R&D Services with respect to
      the Second Product, as follows:

            

    

     

    
      	
            	
              (a)

            	
              OcuSense
      shall provide a written Development Request for the Second Product
      pursuant to clauses 5.2(1) and
5.2(3);

            

    

     

    
      	
            	
              (b)

            	
              the
      parties shall discuss in good faith the anticipated activities
      under the Development Request and capabilities required to perform
      such activities;

            

    

     

    
      	
            	
              (c)

            	
              if
      MiniFAB does not wish to undertake to perform the applicable R&D
      Services for the Second Product, MiniFAB agrees to promptly notify
      OcuSense in writing;

            

    

     

    
      	
            	
              (d)

            	
              if
      MiniFAB wishes to perform the applicable R&D Activities for the Second
      Product, MiniFAB shall propose the financial terms under which it is
      willing to undertake the R&D Services specified in the Development
      Request; and

            

    

     

    
      	
            	
              (e)

            	
              if
      MiniFAB has appropriate capability to perform such R&D Activities for
      the Second Product as set forth in the Development Request, and offers to
      perform such activities on financial terms that are at least as favorable
      to OcuSense as other bids for conducting such R&D Services OcuSense
      receives from third parties with capability of performing such R&D
      Services, then OcuSense shall engage MiniFAB for the conduct of such
      R&D Services for the Second Product. In such event, the parties shall
      prepare and sign a mutually agreed written Development Order, which shall
      set forth the activities to be conducted, timelines, deliverables,
      financial terms, and other mutually agreed terms and conditions regarding
      such R&D Services. Such Development Order shall be consistent with the
      intellectual property provisions and other applicable terms and conditions
      of this Agreement.

            

    

     

    Subject
to the foregoing, OcuSense may engage any other person to provide R&D
Services and OcuSense shall have no obligation to offer to MiniFAB the
opportunity, or to engage MiniFAB, to perform any R&D Services. For clarity,
OcuSense shall not be obligated to engage MiniFAB to perform R&D Services
for any New Product other than the Second Product.

     

    
      	
            	
              (3)

            	
              A
      Development Request must include:

            

    

     

    
      	
            	
              (a)

            	
              a
      detailed description of the New
Product;

            

    

     

    
      	
            	
              (b)

            	
              draft
      Requirement Definitions for the New Product;
and

            

    

     

    
      	
            	
              (c)

            	
              a
      draft project plan including a proposed
  timetable.

            

    

     

    
      	
            	
              (4)

            	
              MiniFAB
      will consider a Development Request and notify OcuSense in
      writing whether or not MiniFAB accepts the Development Request within
      20 Business Days of receipt of the request. If MiniFAB fails to respond
      within that time period, then it is deemed to have rejected the
      Development Request. To avoid doubt, MiniFAB is not required to provide
      any reason for rejecting a Development Request. It is understood that the
      Development Request is intended as an opportunity for the parties to
      negotiate terms and conditions on which MiniFAB may conduct the applicable
      R&D Services for OcuSense. Accordingly, (i) MiniFAB shall not be
      obligated to accept any Development Request, and (ii) except as expressly
      set forth in clause 5.2(2)(e) with respect to the Second Product, OcuSense
      shall not be obligated to engage MiniFAB to conduct R&D Services.
      Without limiting the foregoing, if MiniFAB rejects (or is deemed to have
      rejected) the Development Request for the Second Product, then despite
      clause 5.2(2), OcuSense may engage another service provider to provide
      R&D Services in respect of that Development Request. OcuSense shall
      have no obligation to offer to MiniFAB any further opportunity, or to
      engage MiniFAB, to perform any R&D Services except as expressly set
      forth under clause 5.2(2).

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
            	
              5.3

            	
              Development
      Order

            

    

     

    
      	
               
      

            	
              (1)

            	
              If
      MiniFAB accepts a Development Request,
then:

            

    

     

    
      	
            	
              (a)

            	
              MiniFAB
      will provide OcuSense with a revised draft project plan. including
      proposed milestones and payment milestones;
and

            

    

     

    
      	
            	
              (b)

            	
              the
      parties must meet within 20 Business Days of the acceptance to meet and
      discuss the Development Request with the intent to finalise a Development
      Order.

            

    

     

    
      	
               
      

            	
              (2)

            	
              The
      parties will act reasonably in negotiating the terms of the
      Development Order.

            

    

     

    
      	
               
      

            	
              (3)

            	
              To
      avoid doubt, neither party is bound by a Development Request,
      a Development Order or any obligations to develop a New Product until
      the relevant Development Order is signed by both
    parties.

            

    

     

    
      	
            	
              5.4

            	
              Provision of R&D
      Services

            

    

     

    
      	
               
      

            	
              (1)

            	
              MiniFAB
      will provide the R&D Services in accordance with the
      relevant Development Order in a diligent and ethical manner, with due
      care and skill and to a high professional standard, in accordance with
      this Agreement, and all applicable Regulatory
  Requirements.

            

    

     

    
      	
               
      

            	
              (2)

            	
              MiniFAB
      will use Commercially Reasonable Efforts to meet any milestones agreed in
      the relevant Development Order. Each Development Order may specify the
      agreed-upon remedies that shall apply for any failure by MiniFAB to meet
      such milestones, or otherwise fail to perform the R&D Services in
      accordance with clause 5.4(1).

            

    

     

    
      	
            	
              5.5

            	
              Responsibilities of each
      party

            

    

     

    
      	
               
      

            	
              (1)

            	
              MiniFAB
      is responsible for and will bear the costs and expenses
      associated with:

            

    

     

    
      	
            	
              (a)

            	
              the
      provision of the R&D Services in accordance with the relevant
      Development Order (Development Expenses);
      and

            

    

     

    
      	
            	
              (b)

            	
              the
      construction and acquisition of any plant and equipment and other related
      capital expenditures relating to the R&D
  Services.

            

    

     

    
      	
            	
              (2)

            	
              OcuSense
      will develop, validate and finalise the Requirement Definitions and the
      Specifications of the New Product in consultation with MiniFAB. MiniFAB
      will assist OcuSense in accordance with the R&D
    Services.

            

    

     

    
      	
            	
              (3)

            	
              OcuSense
      is solely responsible for and will bear all costs and
      expenses associated with all activities relating to the research and
      development of the New Product that are not expressly included as
      part of R&D Services or that are expressly excluded from the
      R&D Services.

            

    

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	
            	
              5.6

            	
              Ownership of Requirement
      Definitions and
Specifications

            

    

     

    The
Requirement Definitions and the Specifications of any Product and all
Intellectual Property rights relating to any Product, the Requirement
Definitions and the Specifications therefor are and will remain to be owned
solely by OcuSense. MiniFAB hereby assigns all Intellectual Property subsisting
in the foregoing to OcuSense.

     

    
      	
            	
              5.7

            	
              Payment for R&D
      Services

            

    

     

    OcuSense
will pay MiniFAB for the provision of the R&D Services in accordance with
payment milestones specified in. the relevant Development Order.

     

    
      	
            	
              5.8

            	
              Other matters relating to
      Development Order

            

    

     

    Prior to
the Successful Completion of a New Product, the parties will meet and negotiate
(acting reasonably) the following items relating to the New
Product:

     

    
      	
            	
              (1)

            	
              the
      Price for the New Product (provided that the Price for the Second
      Product is set in accordance with clause
  4.1(2));

            

    

     

    
      	
            	
              (2)

            	
              the
      percentage applicable to calculating the amount payable under clause
      3.3(8)(c)

            

    

     

    
      	
            	
              (3)

            	
              the
      Minimum Orders requirement for the New Product, if any (provided
      that the Minimum Order for the Second Product is set in accordance
      with clause 3.3(7)(c)); and

            

    

     

    
      	
            	
              (4)

            	
              the
      Annual Production Capacity for the New
Product.

            

    

     

    
      
        	
              	
                5.9

              	
                Prototype
      Acceptance Testing

              

      

    

     

    
      	
               
      

            	
              (1)

            	
              If
      required under the relevant Development Order, the parties will
      conduct acceptance testing of the New Product in accordance with this
      clause 5.9.

            

    

    

    
      	
               
      

            	
              (2)

            	
              Promptly
      upon completion of the development of the New Product, MiniFAB shall
      manufacture and supply to OcuSense a reasonable number of prototype units
      for the purposes of OcuSense's testing and evaluation, together with such
      documentation (including without limitation the QA test report), materials
      and equipment reasonably necessary for OcuSense to perform testing and
      evaluation of the prototype. It is understood that the mutually agreed
      Development Order may provide for the supply and testing of multiple sets
      of prototype units for the New Product at different stages of development
      (such as, for example, alpha prototypes and beta
    prototypes).

            

    

     

    
      	
               
      

            	
              (3)

            	
              OcuSense
      may reject the prototype of the New Product only if it does not conform to
      the Requirement Definitions. OcuSense must accept the prototype of the New
      Product if it conforms to the Requirement
  Definitions.

            

    

     

    
      	
               
      

            	
              (4)

            	
              If
      OcuSense rejects the prototype then OcuSense must notify MiniFAB of the
      reasons for such rejection and MiniFAB will have thirty (30) days to cure
      such defect or non-conformance or dispute Ocusense's rejection pursuant to
      the dispute resolution process under clause 19. OcuSense may require
      MiniFAB to resubmit revised prototype units to OcuSense for testing and
      evaluation until the prototype fully conforms to the Requirement
      Definitions of the Product.

            

    

     

    
      	
               
      

            	
              (5)

            	
              Upon
      OcuSense's acceptance of the New Product (“Acceptance”),
      OcuSense shall promptly inform MiniFAB in
  writing.

            

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	
            	
              5.10

            	
              Successful
      Completion

            

    

     

    Successful
Completion in relation to a New Product means:

     

    
      	
            	
              (1)

            	
              if
      the relevant Development Order provides a definition - the
      meaning ascribed to that term in the Development Order;
      or

            

    

     

    
      	
            	
              (2)

            	
              the
      Acceptance of a New Product by OcuSense, as such term is defined
      in clause 5.9.

            

    

     

    
      	
               
      

            	
              5.11

            	
              Discontinuance - Unable to
      finalise Requirement
Definitions

            

    

     

    If the
parties are unable to finalise the Requirement Definitions for the New Products
by the deadline specified in the relevant Development Order (or after a
reasonable time if no such deadline is specified), then either party may
discontinue the relevant Development Order by notifying the other party in
writing, in which case OcuSense will be solely responsible for all Development
Expenses incurred up to that point in time and any other unavoidable costs
reasonably incurred by MiniFAB in connection with the
discontinuance.

     

    
      	
               
      

            	
              5.12

            	
              Discontinuance -
      OcuSense

            

    

     

    OcuSense
may discontinue the development of any New Product at any time upon written
notice, in which case MiniFAB will invoice, and OcuSense must pay, all
outstanding amounts that are payable in accordance with the payment milestones
specified in the Development Order for the R&D Services actually rendered by
MiniFAB prior to the termination of the relevant Development Order. It is
understood and agreed that any R&D Services with respect to the Second
Product and any other New Product will be undertaken in reasonable stages in
order to provide OcuSense an opportunity to evaluate the results of the R&D
Services in each such stage and to determine whether OcuSense, in its
discretion, wishes to cease development of the Second Product or other New
Product. In the event that OcuSense unilaterally discontinues development of the
Second Product and terminates the corresponding R&D Services (other than as
a result of MiniFAB's inability or unwillingness to conduct such R&D
Services, or as set forth in clause 15.2) prior to MiniFAB's shipment of beta
prototypes, then OcuSense agrees that it will provide an opportunity for MiniFAB
to provide the R&D Services with respect to development of its next
subsequent New Product (excluding any New Products then already under contract
for development by third parties) as set forth in clause 5.2(2), subject to the
terms of clause 5.2(4).

     

    
      	
               
      

            	
              6.

            	
              OcuSense
      Licence

            

    

     

    
      	
               
      

            	
              6.1

            	
              Limited
      licence

            

    

     

    
      	
            	
              (1)

            	
              Subject
      to the terms and conditions of this Agreement, OcuSense grants
      to MiniFAB during the Term a limited, royalty free, non-exclusive
      licence (without the right to sublicense) under any Intellectual Property,
      know-how and technical information owned (or licensed with the right to
      sublicense) by OcuSense relating to the development or manufacture of the
      Products (OcuSense
      IP) to use OcuSense IP to perform MiniFAB's obligations under this
      Agreement (OcuSense
      Licence).

            

    

     

    
      	
            	
              (2)

            	
              MiniFAB
      may only use OcuSense IP to the extent necessary or desirable
      to develop and manufacture the Products and New Products or
      otherwise necessary for the purposes of this
    Agreement.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
            	
              6.2

            	
              Provision of OcuSense IP
    materials

            

    

     

    OcuSense
will provide or otherwise make available all information and materials relating
to the OcuSense IP known to or possessed by OcuSense that are reasonably
necessary to enable MiniFAB to perform its obligations under this
Agreement.

     

    
      	
               
      

            	
              6.3

            	
              Ownership of OcuSense IP and Improvements to
      OcuSense IP

            

    

     

    All
OcuSense IP, and all improvements to OcuSense IP, including any
modifications and developments made thereto by MiniFAB shall be the sole
property of OcuSense and MiniFAB hereby assigns to OcuSense its entire right,
title and interest therein. Such improvements, modifications and developments
will be included in OcuSense IP and covered by the OcuSense Licence. All
injection moulds directed to the Products, and all rights in and to such
injection moulds, shall be owned by OcuSense and part of the OcuSense IP.
MiniFAB will cooperate with OcuSense in good faith to assist OcuSense in such
manner as OcuSense may reasonably request if such moulds are required to be
duplicated, but may otherwise retain them whilst MiniFAB has an obligation to
continue to manufacture the relevant Product. All OcuSense IP shall be
treated by MiniFAB as Confidential Information of OcuSense. MiniFAB shall
promptly disclose to OcuSense all improvements, modifications and developments
to OcuSense IP made or conceived by or on behalf of MiniFAB, and provide
OcuSense with copies of all information available to MiniFAB regarding such
improvements, modifications and developments. To the extent any of the rights
that the parties intend to be assigned by MiniFAB to OcuSense (as set forth in
clause 5.6 and this clause 6.3) cannot be assigned by MiniFAB to OcuSense,
MiniFAB hereby grants to OcuSense an exclusive, royalty-free, transferable,
irrevocable, worldwide license (with rights to sublicense through multiple tiers
of sub-licensees) to practice such non-assignable rights, title and interest. To
the extent any of such rights can be neither assigned nor licensed by MiniFAB to
OcuSense, MiniFAB hereby irrevocably waives and agrees never to assert such
non-assignable and non-licensable rights, title and interest against OcuSense or
any of OcuSense's licensees or successors in interest to such non-assignable and
non-licensable rights.

     

    
      	
               
      

            	
              6.4

            	
              IP Warranties and
      indemnity

            

    

     

    
      	
            	
              (1)

            	
              OcuSense
      warrants that OcuSense has the right and authority to grant MiniFAB
      the OcuSense Licence.

            

    

     

    
      	
            	
              (2)

            	
              OcuSense
      shall indemnify and at all times holds harmless MiniFAB against any Losses
      resulting from a third person's claim against MiniFAB alleging that the
      use of OcuSense IP by MiniFAB constitutes an infringement of any
      Intellectual Property of that third person; provided, however, that
      OcuSense shall not be obligated to indemnify MiniFAB, and MiniFAB shall
      indemnify and at all times hold harmless OcuSense against any such Losses
      (i.e., Loses arising from third party claims of infringement), to the
      extent the alleged infringement results from any modifications and
      developments made to OcuSense IP by MiniFAB other than in accordance with
      instructions contained in any
Specifications.

            

    

     

    
      	
            	
              6.5

            	
              Termination of
      licence

            

    

     

    The
OcuSense Licence terminates automatically upon the termination or expiry of
this Agreement for any reason.

     

    
      	
               
      

            	
              6.6

            	
              Infringement and protection of
      OcuSense IP

            

    

     

    OcuSense
is solely responsible for the protection, defence and maintenance of
the OcuSense IP. However, MiniFAB will promptly notify OcuSense if
MiniFAB is aware of any infringement of the OcuSense IP by any third
person.

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	
               
      

            	
              7.

            	
              Obligations
      of MiniFAB

            

    

     

    
      	
               
      

            	
              7.1

            	
              Cooperation with
      OcuSense

            

    

     

    MiniFAB
will (a) provide OcuSense with analytical and manufacturing documentation,
internal progress reports, regulatory compliance files and quality assurance
files, and other relevant information as requested by OcuSense regarding quality
control for the Products supplied under this Agreement, (b) reasonably cooperate
with OcuSense in responding to all requests for information from customers and
the relevant Regulatory Authorities having jurisdiction to make such requests,
and (c) on a quarterly basis, prepare and submit to OcuSense a production
capacity development plan addressing MiniFAB's efforts to increase production
capacity to meet OcuSense's forecasts, and participate in a review thereof with
OcuSense. OcuSense must bear any reasonable pre-approved out-of-pocket costs
incurred by MiniFAB pursuant to this clause 7.1. If OcuSense refuses to
pre-approve any such reasonable costs described in the preceding sentence on
request by MiniFAB, then MiniFAB is released from its obligations under this
clause 7.1 in respect of the obligations that are subject of, and to the extent
subject of, those costs that OcuSense refused to pre-approve.

     

    
      	
               
      

            	
              7.2

            	
              Regulatory
      licences

            

    

     

    MiniFAB
must at its own cost obtain and comply with all necessary licences, consents,
permits and regulations which may from time to time be required by the relevant
Regulatory Authorities in Australia to carry out its development and
manufacturing services under this Agreement. Without limiting the generality of
the foregoing, prior to commencing the manufacture of the First Product, MiniFAB
shall be certified to meet ISO 13485 for manufacturing. OcuSense is responsible
for obtaining
all Registrations and approvals for the export of the Products from Australia or
supply of the Products anywhere in the world.

     

    
      	
               
      

            	
              7.3

            	
              Batch
      records

            

    

     

    Without
limiting the generality of clause 7.1, on a monthly basis, MiniFAB must
retain and furnish to OcuSense for analysis by OcuSense's Quality
Department:

     

    
      	
            	
              (1)

            	
              samples
      of each batch of Products manufactured under this Agreement;
      and

            

    

     

    
      	
            	
              (2)

            	
              batch
      production and quality control
records,

            

    

     

    to the
extent required by the Specifications and all applicable Regulatory
Requirements.

     

    
      	
               
      

            	
              7.4

            	
              Facility
      Audits

            

    

     

    OcuSense
shall have the right, during normal business hours and upon reasonable notice,
to audit MiniFAB's facility at which the Products are manufactured for
compliance with the Specifications, the Regulatory Requirements, and the terms
and conditions of this Agreement. MiniFAB shall give OcuSense prior written
notice (whenever reasonably feasible) of any Governmental Agency inspection of
the MiniFAB facility, and MiniFAB shall permit a representative of OcuSense to
be present at such inspection. MiniFAB shall promptly provide to OcuSense copies
of all notices, correspondence and other materials delivered to or received from
the Governmental Agency regarding such MiniFAB facility or the
Products.

    

    
      	
               
      

            	
              8.

            	
              Meeting

            

    

     

    
      	
               
      

            	
              8.1

            	
              During
      the Term, the parties will endeavour to meet at least every 6 months to
      discuss and review the state of the relationship between
      them.  Each party must ensure that at least one of its senior
      representatives attend each meeting. Any meeting may be
      teleconferenced.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
               
      

            	
              8.2

            	
              Each
      party will alternate to organise the meeting. The party responsible
      for organising the meeting must prepare a formal agenda prior to the
      meeting and organise formal minutes to be taken and distributed to all
      attendees after the meeting takes place. Each party may provide its
      suggest agenda items. The compulsory topics for the agenda are as
      follows:

            

    

     

    
      	
            	
              (1)

            	
              review
      of previous minutes; and

            

    

     

    
      	
            	
              (2)

            	
              progress
      of any development and
registration.

            

    

    

    
      	
               
      

            	
              9.

            	
              Payment
      and invoicing

            

    

     

    
      	
               
      

            	
              9.1

            	
              Invoice

            

    

     

    
      	
            	
              (1)

            	
              In
      relation to the supply of Products, MiniFAB will invoice OcuSense on
      a monthly in arrears basis.

            

    

     

    
      	
            	
              (2)

            	
              In
      relation to the provision of R&D Services, MiniFAB will invoice
      OcuSense in accordance with the Development Agreement for the First
      Product and the payment milestone specified in the relevant Development
      Order for New Products.

            

    

     

    
      	
               
      

            	
              9.2

            	
              Payment

            

    

     

    OcuSense
must pay all undisputed invoices within 40 days after receipt of the
invoice or, if later, within 40 days after delivery of the relevant
Products to the Delivery Point.

     

    
      	
               
      

            	
              9.3

            	
              Interest

            

    

     

    If
OcuSense fails to pay an amount on the due date for any undisputed
payment, OcuSense must pay MiniFAB interest at the Default Rate on that
amount, calculated and payable monthly, computed from the due date until
the amount is paid in full.

     

    
      	
               
      

            	
              10.

            	
              Amendments
      to Specifications

            

    

     

    
      	
               
      

            	
              10.1

            	
              Compliance with Regulatory
      Requirements

            

    

     

    In the
event that OcuSense or MiniFAB becomes aware of any changes or any pending
changes in any applicable Regulatory Requirements which could affect the
manufacture of a Product, OcuSense or MiniFAB, as applicable must promptly
notify the other party in writing of any such change or proposed change and the
Specifications of that Product must then, if necessary be amended by mutual
written agreement of the parties. Such change will become effective and binding
on MiniFAB from a date agreed by the parties. Costs and expenses reasonably
incurred by MiniFAB to implement the amendments to the Specifications required
under this clause 10.1 may be reflected in the Price of Products as set forth in
clause 10.3.

     

    
      	
            	
              10.2

            	
              Voluntary
      changes

            

    

     

    Either
party may suggest changes in the Specifications of any of the Products by
notifying the other party in writing in reasonable detail of such suggested
changes. The parties must negotiate in good faith with a view to agreeing to the
same and who will bear the cost of the same. If the parties agree in writing
upon the suggested changes, including the lead-time for implementing such
changes, the Specifications must be amended accordingly, and any such change
will become effective and binding on MiniFAB from a date agreed by the parties.
Notwithstanding the foregoing, OcuSense shall not be obligated to agree to any
change to Specifications proposed by MiniFAB.

     

    
      	
            	
              10.3

            	
              Cost of amendments to
      Specifications or changes in Regulatory
  Requirements

            

    

     

    Unless
otherwise agreed by the parties, it is understood that the Price of
applicable Products will be adjusted up or down by an amount equal to the
increase or decrease in
MiniFAB's costs (as determined by the parties' mutually agreed cost model, which
shall not include amounts allocable to other products or to facilities or
equipment not utilized for Products) as a result of changes in Regulatory
Requirements and/or changes in the Specifications. Subject to clauses 10.1 and
10.2, OcuSense is responsible for all pre-approved reasonable out-of-pocket
costs and expenses incurred by MiniFAB to implement any changes to the
Specifications under this clause 10. It is understood and agreed that if
OcuSense pays for the purchase of capital equipment under this clause 10.3, then
(i) OcuSense shall be the owner of such equipment, (ii) such equipment shall not
be used in the manufacture or testing of any products other than Products, and
(iii) and the parties shall reasonably cooperate to execute and file such
documents as are reasonably required to evidence and protect OcuSense's
ownership interest in such equipment. In the event MiniFAB proposes an upward
adjustment in the Price of any Product under this clause 10.3, OcuSense shall
have the right, at its sole cost, to designate an independent accounting firm
reasonably acceptable to MiniFAB to audit MiniFAB's books and records to verify
the amount of the cost increase claimed by MiniFAB to determine the rights of
the parties as described above in this clause 10.3.

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
      	
               
      

            	
              11.

            	
              Registrations,
      safety and Product liability

            

    

     

    
      	
               
      

            	
              11.1

            	
              Registrations of
      Products

            

    

     

    OcuSense
is responsible for the sales, marketing and distribution of the Products,
and is
also responsible for:

     

    
      	
            	
              (1)

            	
              obtaining
      all necessary Registrations for the Products;
  and

            

    

     

    
      	
            	
              (2)

            	
              maintaining
      records of all sales of Product sufficient to adequately administer a
      recall, market withdrawal or correction for such period as is required
      under applicable regulations.

            

    

     

    MiniFAB
agrees to maintain all applicable records relating to the manufacture of the
Products supplied hereunder for a period of 5 years after the Product is
supplied hereunder, as more particularly set forth in the Technical Agreement.
Thereafter, MiniFAB shall notify OcuSense in writing before destroying any such
records and, if requested by OcuSense, agrees to transfer all such records to
OcuSense or its designee at OcuSense's expense.

     

    
      	
            	
              11.2

            	
              Adverse
      events

            

    

     

    OcuSense
must promptly disclose to MiniFAB during the Term any information it acquires
which relates to the safety of the Product, including, inter alia, all side
effects, injury, toxicity or sensitivity reactions including unexpected or
increased incidence and severity thereof. All such information will be treated
as Confidential Information of OcuSense.

     

    
      	
            	
              11.3

            	
              Notification of
      defects

            

    

     

    In the
event that MiniFAB becomes aware of any defect in the Product it will
immediately
notify OcuSense in writing and provide it with a full disclosure of the
defect or
non-compliance.

     

    
      	
            	
              11.4

            	
              Recalls

            

    

     

    
      	
            	
              (1)

            	
              The
      parties each must notify the other promptly and in writing if any Product
      is requested or required to be the subject of a recall, market
      withdrawal or correction (Recall).

            

    

     

    
      	
            	
              (2)

            	
              OcuSense
      is solely responsible for the handling and disposition of any
      Recall and will assume all regulatory responsibility for such
      matters, including responsibility for all communications with the
      relevant Governmental Agencies. MiniFAB shall diligently cooperate
      with OcuSense in the administration of any
  recall.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
            	
              (3)

            	
              If
      a Recall is due to a non compliance with the Specifications or
      the Regulatory Requirements of the Product that is caused by the
      fault MiniFAB then MiniFAB will bear the reasonable cost of the
      Recall. In all other cases OcuSense is solely responsible for the
      cost of the Recall.

            

    

     

    
      	
            	
              12.

            	
              Insurance

            

    

     

    
      	
            	
              12.1

            	
              Required Insurance from
      MiniFAB

            

    

     

    MiniFAB
must take out prior to the Cut-Off Date, and thereafter maintain during
the Term:

     

    
      	
            	
              (1)

            	
              all
      insurances required by law, including workers compensation insurance in
      accordance
      with relevant law; and

            

    

    
    

     

    
      	
            	
              (2)

            	
              public
      liability insurance for an amount of not less than A$5 Million per claim
      and
      in the aggregate.

            

    

    
    

     

    
      	
            	
              12.2

            	
              Required Insurance from
      OcuSense

            

    

     

    OcuSense
must take out prior to the Cut-Off Date, and thereafter maintain during
the Term:

     

    
      	
               
      

            	
              (1)

            	
              all
      insurances required by law, including workers compensation insurance
      in accordance with relevant law;
and

            

    

     

    
      	
               
      

            	
              (2)

            	
              product
      liability insurance for an amount of not less than US$5 Million
      per claim in the aggregate.

            

    

     

    
      	
            	
              12.3

            	
              Evidence of
      insurance

            

    

     

    Each
party must, if reasonably requested by the other party, provide the other party
with
evidence that the each insurance required to be taken out by the party pursuant
to this
clause 12 exists and is current.

     

    
      	
            	
              13.

            	
              Warranties

            

    

     

    
      	
            	
              13.1

            	
              Product
      warranties

            

    

     

    MiniFAB
warrants that (a) the Products manufactured by MiniFAB under this Agreement will
comply with the Specifications of the Products and shall be free from defects in
material and workmanship, and (b) MiniFAB's facility for manufacture of Products
shall be maintained and operated in compliance with all applicable Regulatory
Requirements, and all Products shall be manufactured, packaged, labelled,
stored, handled, and shipped by MiniFAB in compliance with all applicable
Regulatory Requirements and the applicable Technical Agreement.

     

    
      	
            	
              14.

            	
              Third
      party licensors and contractors; Technology
  Transfer

            

    

     

    
      	
            	
              14.1

            	
              Sub-Contractors

            

    

     

    Except
with respect to laser ablation and etching and injection molding activities,
which activities shall be conducted at MiniFAB's facilities unless otherwise
agreed by the parties, MiniFAB may engage sub-contractors to perform MiniFAB's
obligations under this Agreement upon express prior written consent of OcuSense,
which consent shall not be unreasonably withheld. Without limitation, it is
agreed that if OcuSense is not comfortable that a proposed sub-contractor has
the requisite capabilities and that such proposed sub-contractor will protect
OcuSense's intellectual property rights and that such proposed sub-contractor
will comply with the terms and conditions set forth in this Agreement (including
assignment of intellectual property), or if such proposed sub-contractor is
involved in the manufacture, development or commercialization of products
competing with the Products, then it shall be reasonable for OcuSense to
withhold approval of such proposed subcontractor. The appointment of
sub-contractors shall not affect or diminish MiniFAB's responsibilities and
obligations under this Agreement, and MiniFAB shall ensure the compliance of
each such subcontractor with the confidentiality obligations and other
obligations of MiniFAB set forth in this Agreement. If OcuSense engages a third
party to manufacture the Products, it will impose similar restrictions to the
foregoing on that third party.

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
            	
              14.2

            	
              Cooperation with
      Sensortec

            

    

     

    MiniFAB
acknowledges that OcuSense has entered into that certain development and option
agreement with Sensortec Limited (“Sensortec”), pursuant to
which Sensortec may provide certain services and a license with respect to
certain of its technology, in each case pertaining to the manufacture of the
Products. MiniFAB agrees that upon request of OcuSense, MiniFAB shall coordinate
its activities under this Agreement with Sensortec, as may be necessary or
useful for MiniFAB's and Sensortec's performance of their respective
obligations to OcuSense regarding the Product. Upon request of MiniFAB, OcuSense
shall act as a liaison between MiniFAB and Sensortec to facilitate productive
cooperation between them.

     

    
      	
            	
              14.3

            	
              Non exclusive
      arrangement

            

    

     

    Nothing
in clause 14.2 prevents either party from contracting with Sensortec
independently for purposes unrelated to this Agreement.

     

    
      	
            	
              14.4

            	
              Evaluation and licensing of
      other third party technology

            

    

     

    If the
parties agree or MiniFAB recommends (pursuant to the provision of R&D
Services) that a particular technology is necessary to manufacture any New
Product, then OcuSense will evaluate such recommendation, and if OcuSense
determines in its sole discretion that licensing of such technology is
desirable, OcuSense will be solely responsible for procuring (at its own cost
and expenses) the requisite licences from the owner of that technology for the
purposes of including the relevant technology in the New Product.

     

    
      	
            	
              14.5

            	
              Technology Ownership and
      Licensing; Technology
Transfer

            

    

     

    
      	
            	
              (1)

            	
              OcuSense
      shall retain ownership of any pre-existing intellectual property rights in
      materials and information provided by OcuSense to MiniFAB for use by
      MiniFAB for the purposes of undertaking activities under this Agreement.
      MiniFAB shall retain ownership of any pre-existing intellectual property
      rights in materials, information, tools and methodologies provided by
      MiniFAB for the purposes of undertaking activities under this Agreement
      (and any improvements to them, except to the extent that those
      improvements comprise patented or unpatented intellectual property owned
      or controlled by OcuSense or that have application in the field of
      measuring osmolarity or osmolality of, or other characteristic of or any
      biomarker in, human tear fluid) (collectively, "MiniFAB Background IP")
      and MiniFAB hereby grants OcuSense a worldwide, non-exclusive,
      royalty-free license (with the right to grant and authorize sublicenses)
      to make, have made, use, offer for sale, sell and otherwise exploit
      MiniFAB Background IP as may be required to make, have made, use, offer
      for sale, sell and otherwise exploit Licensed Products or incorporated
      into processes or procedures for manufacturing or testing Licensed
      Products. As used herein, "Licensed Product" means
      any article, item, product, equipment, process, data, report or other
      deliverable designed or developed in whole or part for OcuSense by MiniFAB
      under the Development Agreement or this Agreement, whether or not such
      development or design is completed or successfully meets intended
      criteria, including without limitation the First Product, Second Product
      and any other New Products developed in whole or part under the
      Development Agreement or in R&D Services performed by MiniFAB under
      this Agreement.

            

    

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
            	
              (2)

            	
              Subject
      to clause 14.5(1) and the requirement for OcuSense to pay MiniFAB all
      outstanding fees and charges due to MiniFAB, MiniFAB agrees to assign and
      hereby assigns to OcuSense all right, title and interest in and to any
      trade dress, trademarks and design registrations or design patents, and
      any inventions, whether patentable or not, and any other discoveries,
      trade secrets or know-how which:

            

    

     

    
      	
            	
              (a)

            	
              are
      embodied in a Licensed Product; and

            

    

     

    
      	
            	
              (b)

            	
              were
      made, developed, conceived or first reduced to practice by or for MiniFAB
      as a direct result of MiniFAB undertaking activities under the Development
      Agreement or this Agreement

            

    

    
       

    

    along
with all patents, copyrights, and any other intellectual property rights
therein, including the right to apply for and maintain the rights described in
this clause 14.5(2) in all countries worldwide (such rights comprising the 'Project IP') and MiniFAB
will (at the OcuSense's request and cost) do those things that may be reasonably
necessary to effect the registration of such intellectual property. OcuSense
must provide to MiniFAB full details (including copies of all relevant
documentation) of any application for registration (whether as a registered
patent, a registered design or otherwise) of the Project IP or any part of
it.

     

    
      	
            	
              (3)

            	
              At
      any time during the term of this Agreement, or in the event of
      any termination of this Agreement, OcuSense shall have the right to
      require MiniFAB:

            

    

     

    
      	  
    	
              (a)

            	
              
                to
      provide all reasonable assistance as requested by OcuSense, including
      without limitation transfer of technology, materials, information
      and documentation, to enable OcuSense to manufacture the
      Products internally or to secure the production and supply of the Products
      by a third party contractor (whether or not all or part of such
      technology, materials, information and documentation falls within the
      MiniFAB Background IP owned by MiniFAB);
  and

              

            

    

     

    
      	   
      	
              (b)

            	
              
                to
      provide OcuSense with the consultancy services of all key engineering
      personnel of MiniFAB to effect or support such transfer of technology
      and/or the license to MiniFAB Background
      IP.

              

            

    

     

    OcuSense
shall pay MiniFAB for the time spent by MiniFAB's key personnel in conducting
such technology transfer activities as may be requested by OcuSense, at
MiniFAB's reasonable and customary rates for similar consultancy, and shall
reimburse MiniFAB's out-of-pocket expenses incurred in conducting such
technology transfer.

     

    
      	
            	
              (4)

            	
              All
      MiniFAB Background IP shall be treated by OcuSense and its sublicensees
       and their third party manufacturers as Confidential Information of
      MiniFAB;  provided, however, that (i) OcuSense may disclose the
      MiniFAB Background  IP to actual and potential investors,
      sublicensees, advisors and/or contract  manufacturers of Licensed
      Products, in each case under reasonable and  customary terms of
      confidentiality; and (ii) OcuSense and its sublicensees and  contract
      manufacturers may disclose such information as is reasonably
       necessary in seeking regulatory approvals in connection with the
      manufacture,  clinical development, use or commercialization of
      Licensed Products. For clarity, this clause 14.5(4) shall not be construed
      to prevent the use of MiniFAB Background IP in under authority of the
      license set forth in clause 14.5(1)
above.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
            	
              (5)

            	
              This
      clause 14.5 will survive termination of this
  Agreement.

            

    

     

    
      	
            	
              15.

            	
              Term,
      breach and termination

            

    

     

    
      	
            	
              15.1

            	
              Term

            

    

     

    
      	
            	
              (1)

            	
              This
      Agreement commences on the Commencement Date and continues for an
      initial period of ten (10) years after the Commencement
    Date.

            

    

     

    
      	
            	
              (2)

            	
              This
      Agreement shall automatically renew for additional terms of three
      (3) years
      each, unless either party provides the other party with a written notice
      of non-renewal
      at least 180 days prior to the scheduled expiration of the then
      current
      term.

            

    

     

    
      	
            	
              15.2

            	
              Termination for
      cause

            

    

     

    Notwithstanding
clause 15.1, either party may terminate this Agreement effective immediately
upon the giving of written notice to the other party (Defaulting Party)
if:

     

    
      	
            	
              (1)

            	
              the
      Defaulting Party commits a material breach of this Agreement and fails to
      correct the breach within 30 days after written notice to do
      so;

            

    

     

    
      	
            	
              (2)

            	
              the
      Defaulting Party fails to carry out any material provision of this
      Agreement and the failure is not capable of remedy;
  and/or

            

    

     

    
      	
            	
              (3) 

            	
              an
      Insolvency Event occurs in relation to the Defaulting
    Party.

            

    

     

    In the
event that OcuSense is entitled to terminate this Agreement under clause 15.2(1)
or 15.2(2) above and the applicable default or breach relates to the R&D
Services under one or more Development Orders, OcuSense may, in its discretion,
elect to terminate such Development Orders without terminating this Agreement
with respect to manufacture and supply of Products.

     

    
      	
            	
              15.3

            	
              Effect of
      termination

            

    

     

    
      	
            	
              (1)

            	
              Upon
      termination or expiry of this Agreement for any reason other than
      for material breach by MiniFAB or due to an Insolvency Event in
      relation to OcuSense, MiniFAB will complete the delivery of all
      outstanding Purchase Orders.

            

    

     

    
      	
            	
              (2)

            	
              Upon
      termination of this Agreement for material breach by
      MiniFAB, OcuSense may elect to cause MiniFAB to complete the delivery
      of all outstanding Purchase Orders or to cancel any or all
      outstanding Purchase Orders (in whole or in
  part).

            

    

     

    
      	
            	
              (3)

            	
              Upon
      termination or expiry of this Agreement for any
  reason

            

    

     

    
      	
            	
              (a) 

            	
              OcuSense
      must pay all outstanding undisputed invoices for allcompleted
      Purchase Orders;

            

    

     

    
      	
            	
              (b)

            	
              all
      Development Orders are deemed to be discontinued
  and:

            

    

     

    
      	
            	
              (i)

            	
              if
      this Agreement is terminated under clause 15.2 and MiniFAB is the
      Defaulting Party, then MiniFAB will be responsible for
      all Development Expenses incurred;
and

            

    

     

    
      	
            	
              (ii)

            	
              if
      this Agreement is terminated for any other reason, then OcuSense must
      pay MiniFAB all Development Expenses incurred and any other
      unavoidable costs incurred by MiniFAB in connection with the
      termination, as set forth in clause 5.12;
and

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
            	
              (c)

            	
              each
      party must immediately return the Confidential Information of
      the other party to the other
party.

            

    

     

    
      	
            	
              (4)

            	
              Except
      as provided in clause 15.4, termination is without prejudice to
      the rights of either party for any prior
  breach.

            

    

     

    
      	
            	
              15.4

            	
              Termination
      Fee

            

    

     

    
      	
            	
              (1)

            	
              If
      this Agreement is terminated for any reason, other than where MiniFAB
      is the Defaulting Party, and the Minimum Orders requirements set
      forth in clause 3.3(7) have not been satisfied on or before the effective
      date of termination (other than as a result of the inability or failure of
      MiniFAB to timely supply conforming Products in quantities ordered by
      OcuSense), then OcuSense shall be deemed to have failed to meet the
      Minimum Orders requirement, and shall pay MiniFAB the amounts specified in
      clause 3.3(8) (Termination Fee);
      provided, however, the Termination Fee shall not include any amounts with
      respect to Minimum Orders requirements for Second Products as set forth in
      clause 3.3(7)(c) and 3.3(8)(c) unless such termination is effective after
      the date MiniFAB notifies OcuSense pursuant to clause 3.2(2) that MiniFAB
      has put in place the necessary plant and equipment to manufacture the
      Second Product to meet the Minimum Orders of that
  Product.

            

    

     

    
      	
            	
              (2)

            	
              The
      parties acknowledge and agree that (i) the Termination Fee is a genuine
      pre-estimate of the anticipated loss or damage which would be suffered by
      MiniFAB as a result of the early termination of this Agreement, (ii) the
      agreed upon Termination Fee shall be in lieu of any actual or alleged
      damages, losses or harm to MiniFAB resulting from such Termination and/or
      from any failure of OcuSense to order or purchase Products from MiniFAB
      under this Agreement (Termination Losses), and
      (iii) MiniFAB waives its right to seek recovery or reimbursement of all
      Termination Losses other than the Termination
  Fee.

            

    

     

    
      	
            	
              15.5

            	
              Survival

            

    

     

    All
clauses that by their nature survive expiration or termination of this Agreement
will remain in force. For the avoidance of doubt, clauses 1, 5.6, 6.3,
6.4(2), 11.1, 11.4, 13, 14.5, 15, 16, 17, 18, 19, 21 and 22 survive
termination.

     

    
      	
            	
              16. 

            	
              Liability
      and indemnity

            

    

     

    
      	
            	
              16.1 

            	
              Indemnity by
      OcuSense

            

    

     

    OcuSense
shall indemnify MiniFAB and its Representatives against all Lossesincurred
by them as result of claims by third persons against MiniFAB arising directly
or
indirectly as a result of:

     

    
      	
            	
              (1) 

            	
              any
      grossly negligent, unlawful, fraudulent or wilful misconduct committed
      byOcuSense
      or its Representatives in the performance of this
    Agreement;

            

    

     

    
      	
            	
              (2) 

            	
              the
      marketing, promotion, sale or supply of the Product by OcuSense;
      or

            

    

     

    
      
        
          
            
              	
                    	
                      (3)

                    	
                      OcuSense's failure
      to obtain, maintain or comply in any respect with any Registrations,

                    

            

          

        

      

    

     

    except,
in each case, to the extent Losses result from any event described
in clause 16.2.

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
            	
              16.2

            	
              Indemnity by
      MiniFAB

            

    

     

    MiniFAB
shall indemnify OcuSense and its Representatives against all Losses incurred by
them as a result of claims by third persons against OcuSense arising directly or
indirectly, to the extent resulting from:

     

    
      	
            	
              (1)

            	
              any
      grossly negligent, unlawful, fraudulent or wilful misconduct committed by
      MiniFAB or its Representatives in the performance of this
      Agreement;

            

    

     

    
      	
            	
              (2)

            	
              any
      manufacturing defect in any Product supplied by MiniFAB to OcuSense, or
      any failure of any such Product to conform to the Specifications or the
      Regulatory Requirements therefor;
or

            

    

     

    
      	
            	
              (3)

            	
              MiniFAB's
      failure to obtain and maintain all necessary governmental permits for the
      development and manufacture of Products
  hereunder.

            

    

     

    
      	
            	
              16.3

            	
              General provisions applicable
      to indemnities

            

    

     

    A party
(the "Indemnitee") that intends to claim indemnification under this clause 16
shall promptly notify the other party (the "Indemnitor") of any claim, demand,
action or other proceeding for which the Indemnitee intends to claim such
indemnification. The Indemnitor shall have the right to assume and control the
defense thereof with counsel selected by the Indemnitor; provided, however, that
the Indemnitee shall have the right to retain its own counsel to participate in
the defense, subject to Indemnitor's right to control the defense. The indemnity
obligations under this clause 16 shall not apply to amounts paid in settlement
of any Loss if such settlement is effected without the prior express written
consent of the Indemnitor, which consent shall not be unreasonably withheld or
delayed. The failure to deliver notice to the Indemnitor within a reasonable
time after notice of any relevant claim, or the commencement of any such action
or other proceeding shall not relieve such Indemnitor of all liability to the
Indemnitee under this clause 16 with respect thereto, but if such failure is
prejudicial to the Indemnitor's ability to defend such claim, and if such
prejudice results in Losses that otherwise would likely have been avoided or
reduced if timely notice had been given, then the Indemnitor shall be relieved
of said part of the Losses. The Indemnitor may not settle or otherwise consent
to an adverse judgment in any such claim, that diminishes the rights or
interests of the Indemnitee without the prior express written consent of the
Indemnitee, which consent shall not be unreasonably withheld or delayed (it
being understood that no consent by the Indemnitee is required for the
Indemnitor to obtain a full release of all claims by a third person against an
Indemnitee in exchange solely for the payment of a settlement amount by
Indemnitor). The Indemnitee, its employees and agents, shall reasonably
cooperate with the Indemnitor and its legal representatives in the investigation
of any claim covered by this clause 16. The indemnities contained in this clause
16 do not negate the obligation of the party having the benefit of such
indemnity to mitigate its losses; and are continuing obligations on each party,
separate and independent of any other obligation.

     

    
      
        	
              	
                16.4

              	
                No consequential
      damages

              

      

    

     

    Except
for any liability under clause 18 or the indemnity provided under clauses 16.1
or 16.2, to the extent permitted by law, neither party will be liable to the
other party in any circumstances for any special, incidental, punitive,
exemplary, consequential or any other indirect loss or damage, or in any event
for any loss of revenue, loss of production, loss of profit or loss of
data.

    

    
      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	
            	
              17.

            	
              Goods
      and services tax

            

    

     

    
      	
            	
              17.1

            	
              In
      this clause 17:

            

    

     

    
      	
            	
              (1)

            	
              GST means GST as
      defined in A New Tax System (Goods and Services Tax) Act
      1999 as amended (GST
      Act) or any replacement or other relevant legislation and
      regulations;

            

    

     

    
      	
            	
              (2)

            	
              words
      or expressions used in this clause which have a particular meaning
      in the
      GST
      law (as defined in the GST Act, and also including any
      applicable legislative
      determinations and Australian Taxation Office public rulings) have
      the
      same meaning, unless the context otherwise
  requires;

            

    

     

    
      	
            	
              (3)

            	
              any reference to GST payable
      by a party includes any corresponding GST payable by the representative
      member of any GST group of which that party is a
  member;

            

    

     

    
      	
            	
              (4)

            	
              any
      reference to an input tax credit entitlement by a party includes
      any corresponding
      input tax credit entitlement by the representative member of any GST group
      of which that party is a member;
and

            

    

     

    
      	
            	
              (5)

            	
              if
      the GST law treats part of a supply as a separate supply for the purpose
      of determining
      whether GST is payable on that part of the supply or for the purpose
      of determining the tax period to which that part of the supply is
      attributable,
      such part of the supply is to be treated as a separate
      supply.

            

    

     

    
      	
            	
              17.2

            	
              Unless
      GST is expressly included, the consideration to be paid or provided under
      any other clause of this Agreement for any supply made under or in
      connection with this Agreement does not include
  GST.

            

    

     

    
      	
            	
              17.3

            	
              To
      the extent that any supply made under or in connection with this Agreement
      is a taxable supply, the GST exclusive consideration otherwise to be paid
      or provided for that taxable supply is increased by the amount of any GST
      payable in respect of that taxable supply and that amount must be paid at
      the same time and in the same manner as the GST exclusive consideration is
      otherwise to be paid or provided. A party's right to payment under this
      clause is subject to a valid tax invoice being delivered to the recipient
      of the taxable supply.

            

    

     

    
      	
            	
              17.4

            	
              To
      the extent that one party is required to reimburse or indemnify another
      party for aloss, cost or expense incurred by that other party, that loss,
      cost or expense does notinclude any amount in respect of GST for which
      that other party is entitled to claim aninput tax
  credit.

            

    

     

    
      	
            	
              18.

            	
              Confidentiality

            

    

     

    
      	
            	
              18.1

            	
              Prohibited
      acts

            

    

     

    Neither
party may, without the other party's prior written consent, copy or disclose or
cause to be copied or disclosed any Confidential Information of the other party
other than to the extent that such Confidential Information must be
disclosed:

     

    
      	
            	
              (1)

            	
              to
      the party's sub-contractors, employees, legal advisers, auditors,
      investors or other consultants in order for this Agreement to be
      performed, provided that the recipients of the information undertake in
      writing to the party to keep that information strictly confidential;
      or

            

    

     

    
      	
            	
              (2)

            	
              to
      Regulatory Authorities as required to obtain or maintain any
      regulatory approvals.

            

    

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	
            	
              18.2

            	
              Permitted
      uses

            

    

     

    Each
party may only make use of Confidential Information of the other party to
the extent necessary to enable the party to perform its obligations or
exercise its rights under this Agreement.

     

    
      	
            	
              18.3

            	
              Excluded
      information

            

    

     

    For the
purposes of this clause, Confidential Information does not include
any information which the receiving party can establish:

     

    
      	
            	
              (1)

            	
              was
      in the public domain when it was disclosed to the receiving
      party;

            

    

     

    
      	
            	
              (2)

            	
              becomes,
      after being disclosed to the receiving party, part of the
      public domain, except through disclosure contrary to this
      Agreement;

            

    

     

    
      	
            	
              (3)

            	
              was
      already in the receiving party's possession when it was disclosed to the
      receiving party and was not otherwise acquired from the other party
      directly or indirectly; or

            

    

     

    
      	
            	
              (4)

            	
              was
      lawfully disclosed to the receiving party by a third party having the
      unrestricted legal right to disclose that information without requiring
      the maintenance of confidentiality.

            

    

     

    Prior to
making a disclosure of information which the receiving party alleges is no
longer or never was Confidential Information by virtue of falling within one of
the above exceptions, the receiving party must give to the other party 10
Business Days notice of the proposed disclosure and the reasons for the
exception applying.

     

    
      	
            	
              18.4

            	
              Compulsory
      disclosures

            

    

     

    The
obligations of confidentiality in this clause do not apply to a receiving party
where the receiving party is required under the lawful compulsion of any court,
tribunal, authority or regulatory body to disclose any Confidential Information
of the other party. Provided that before a party discloses any Confidential
Information pursuant to the foregoing it must provide the other party with
reasonable notice to enable it to seek a protective court order or other remedy
in respect of the Confidential Information, and it must provide the other party
with all assistance and co operation which the other party considers necessary
to obtain such protective court order or other remedy.

     

    
      	
               
      

            	
              18.5

            	
              Protection of
      information

            

    

     

    Each
party must notify the other party in writing immediately upon the discovery of
any apparent unauthorised use or disclosure of any Confidential Information and
take all reasonable steps to enforce the confidentiality obligations imposed or
required to be imposed by this clause 18 including diligently prosecuting at its
cost any breach or threatened breach of any such confidentiality obligations by
any person to whom it has disclosed or allowed access to the Confidential
Information or at the other party's option making all reasonable efforts to
assist the other party to help regain possession of the Confidential Information
and prevent any further unauthorised disclosure or use.

     

    
      	
               
      

            	
              18.6

            	
              Confidentiality of
      agreement

            

    

     

    The
parties must maintain absolute confidentiality concerning the existence and
subject matter of this Agreement and no public announcement or communication
relating to the negotiations of the parties or the existence, subject matter or
terms of this Agreement may be made or authorised by a party without the prior
written approval of the other party except that the following disclosures may be
made in relation to this Agreement:

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      	
            	
              (1)

            	
              by
      either party to its sub-contractors, employees, auditors,
      consultants, professional advisers, bankers, financial advisers,
      financiers, investors and potential investors upon those persons
      undertaking to keep confidential any information so disclosed;
      or

            

    

     

    
      	
            	
              (2)

            	
              to
      comply with any applicable law or requirement of any
      Governmental Agency or of any public stock exchange on which shares
      of the disclosing party are
listed.

            

    

     

    
      	
            	
              18.7

            	
              Return of Confidential
      Information

            

    

     

    Each
party agrees that on termination or expiration of this Agreement it will deliver
to that other party any and all materials containing or embodying that other
party's Confidential Information and any copies thereof; provided that each
party shall be entitled to retain one (1) copy of the other party's Confidential
Information, to be kept at such party's legal files for use solely for the
purpose of ensuring continued compliance with the terms of this
Agreement.

     

    
      	
            	
              19.

            	
              Disputes

            

    

     

    
      	
            	
              19.1

            	
              Attempt to
      Settle

            

    

     

    If a
dispute arises between the parties in connection with this Agreement then the
parties must use all reasonable endeavours acting in good faith to settle the
dispute as soon as practicable.

     

    
      	
            	
              19.2

            	
              Limitations on Court
      Proceedings

            

    

     

    A party
must not commence court proceedings in relation to a dispute arising in
connection with this Agreement until it has exhausted the procedures in this
clause 19, unless the party seeks urgent interlocutory relief.

     

    
      	
            	
              19.3

            	
              Disputes relating to
      Product

            

    

     

    If the
dispute relates to whether or not a particular Product meets the Specifications
and the Regulatory Requirements, then the parties must submit the dispute to an
independent laboratory, which will act as an expert in determining whether or
not the Product meets the Specifications and the Regulatory Requirements;
provided, however, that if it is not technically feasible to make such
independent laboratory determination in connection with a particular dispute
(e.g., if insufficient number of samples of a relevant batch of Products is
available), then such dispute shall be determined by arbitration under clause
19.5

     

    
      	
            	
              19.4

            	
              Other
      disputes

            

    

     

    If a
dispute does not relate to whether or not a particular Product meets the
Specifications and the Regulatory Requirements and the parties are unable in
good faith to settle the dispute within 20 Business Days after the dispute
arose, then either party may submit the matter to arbitration under clause
19.5.

     

    
      	
            	
              19.5 

            	
              Arbitration

            

    

     

    
      	
            	
              (1)

            	
              If
      any dispute arises under, or in connection with, this Agreement and/or any
      Development
      Order, or in connection with any breach or alleged breach of this
      Agreement or any Development Order, and such matter is not resolved
      pursuant to clause 19.1 or 19.3 or by other agreement of the parties, such
      matter shall be finally resolved through binding arbitration as set forth
      in this clause 19.5. Either party may initiate arbitration of such a
      matter, and the party initiating arbitration of such dispute must give to
      the other party or parties to the dispute notice specifying the dispute
      and requiring its resolution under this clause 19.5 (Notice of Dispute). Such
      Notice of Dispute shall be given in accordance with the arbitration rules
      specified under this clause
19.5.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
            	
              (2)

            	
              Each
      such dispute is by this clause 19.5 referred to binding arbitration for
      final resolution. The arbitration must be conducted
  in:

            

    

     

    
      	
            	
              (a)

            	
              Melbourne,
      Australia if the Notice of Dispute is given by
      OcuSense; and

            

    

     

    
      	
            	
              (b)

            	
              San
      Diego California, USA, if the Notice of Dispute is given
      by MiniFAB.

            

    

     

    
      	
            	
              (3)

            	
              If
      the parties have not agreed upon the arbitrator within 7 days after the
      Notice of Dispute is given, the arbitrator is the person appointed by the
      Chair of the Victorian Chapter of the Institute of Arbitrators and
      Mediators Australia (Principal Appointor) or
      the Principal Appointor's nominee, acting on the request of any party to
      the dispute.

            

    

     

    
      	
            	
              (4)

            	
              The
      arbitrator must not be a present or former member, officer, employee or
      agent of a party to the dispute or a person who has acted as a mediator or
      advised any party in connection with the
  dispute.

            

    

     

    
      	
            	
              (5)

            	
              The
      arbitration shall be conducted in accordance with the then-current rules
      of the International Centre for Dispute Resolution by one (1) arbitrator
      appointed in accordance with such rules. The arbitrator shall determine
      what discovery will be permitted, consistent with the goal of limiting the
      cost and time which the parties must expend for discovery; provided the
      arbitrator shall permit such discovery as the arbitrator deems necessary
      to permit an equitable resolution of the dispute. The arbitrator shall not
      order or require discovery against either party of a type or scope that is
      not permitted against the other party. The costs of the arbitration,
      including administrative and arbitrators' fees, shall be shared equally by
      the parties, and each party shall bear its own costs and attorneys' and
      witness' fees incurred in connection with the arbitration. Any arbitration
      subject to this Article shall be completed within one (1) year from the
      filing of notice of a request for such arbitration. No punitive damages
      may be granted by the arbitrator. The arbitration proceedings and the
      decision shall not be made public without the joint consent of the
      parties, and each party shall maintain the confidentiality of such
      proceedings and decision unless otherwise permitted by the other party,
      except to the extent (and solely to the extent) either party is required
      to disclose such information by applicable securities or other laws. The
      parties agree that the decision shall be the sole, exclusive and binding
      remedy between them regarding any and all disputes, controversies, claims
      and counterclaims presented to the arbitrator. Any award may be entered in
      a court of competent jurisdiction for a judicial recognition of the
      decision and applicable orders of enforcement, and either party may apply
      to any court of competent jurisdiction for appropriate temporary
      injunctive relief pending resolution of any arbitration proceeding. The
      arbitrator shall provide a written arbitration award setting forth the
      arbitrator's findings on material questions of law and of fact, including
      references to the evidence on which the findings of fact were based. Each
      party may be represented by a qualified legal practitioner or other
      representative.

            

    

     

    
      	
            	
              (6)

            	
              This
      clause 19.5 applies even where the Agreement is otherwise void
      or voidable.

            

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
            	
              19.6

            	
              Continuing
      Obligations

            

    

     

    
      	
            	
              19.7

            	
              Except
      as specifically provided in this Agreement, the parties must continue
      to perform their obligations under this Agreement despite the
      existence of a dispute or any steps being taken under this clause
      19.

            

    

     

    
      	
            	
              20.

            	
              Force
      Majeure

            

    

     

    
      	
            	
              20.1

            	
              Party not
      liable

            

    

     

    Where a
party is required under this Agreement to perform an obligation or do any act or
thing by a designated time or date (Obligation), the party is not
liable for any delay in performing or for failure to perform an Obligation where
the delay or failure arises from Force Majeure and that party has complied with
this clause.

     

    
      	
            	
              20.2

            	
              Notice of Force
      Majeure

            

    

     

    A party
who claims Force Majeure must:

     

    
      	
            	
              (1)

            	
              give
      the other party prompt notice of the Force Majeure with reasonably full
      particulars and an estimate of the extent and duration of its delay in
      performance, or inability to perform;
and

            

    

     

    
      	
            	
              (2)

            	
              use
      all possible diligence to resume normal performance of the delayed
      obligations as quickly as possible.

            

    

     

    
      	
            	
              20.3

            	
              Termination in case of Force
      Majeure

            

    

     

    If the
delay continues beyond 30 days after the notice given under clause 20.2, the
parties must meet to discuss in good faith a mutually satisfactory resolution of
the problem and, if unable to achieve such a resolution within a further 60
days, either party may elect to terminate this Agreement by 30 days prior
written notice to the other.

     

    
      	
            	
              21.

            	
              Notices

            

    

     

    
      	
            	
              21.1

            	
              A
      notice or other communication connected with this Agreement (Notice) has
      no legal effect unless it is in
writing.

            

    

     

    
      	
            	
              21.2

            	
              In
      addition to any other method of service provided by law, the Notice may
      be:

            

    

     

    
      	
            	
              (1)

            	
              sent
      by prepaid post to the address of the addressee set out in this
      Agreement or subsequently
notified;

            

    

     

    
      	
            	
              (2)

            	
              sent
      by facsimile to the facsimile number of the
  addressee;

            

    

     

    
      	
            	
              (3)

            	
              sent
      via email to the email address of the addressee;
  or

            

    

     

    
      	
            	
              (4)

            	
              delivered
      at the address of the addressee set out in this Agreement or subsequently
      notified.

            

    

     

    
      	
            	
              21.3

            	
              If
      the Notice is sent or delivered in a manner provided by clause 21.2, it
      must be treated as given to and received by the party to which it is
      addressed:

            

    

     

    
      	
            	
              (1)

            	
              if
      sent by facsimile or email, on the next Business Day at the place of
      receipt, unless a transmission failure notice is received by the
      sender; or

            

    

     

    
      	
            	
              (2)

            	
              if
      sent by post or otherwise, upon receipt by the
  addressee.

            

    

     

    
      	
            	
              21.4

            	
              Despite
      clause 21.3(1):

            

    

     

    
      	
            	
              (1)

            	
              a
      facsimile is not treated as given or received unless at the end of
      the transmission the sender's facsimile machine issues a report
      confirming the transmission of the number of pages in the
      Notice;

            

    

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    
      
        	
              	
                (2)

              	
                a
      facsimile is not treated as given or received if it is not received in
      full and in legible
      form and the addressee notifies the sender of that fact by the close of
      the
      Business Day on which it would otherwise be treated as given and
      received.

              

      

    

     

    
      	
            	
              22.

            	
              General

            

    

     

    
      	
            	
              22.1

            	
              Further
      assurance

            

    

     

    Each
party must promptly at its own cost do all things (including executing and if
necessary delivering all documents) necessary or desirable to give full effect
to this Agreement, to the extent commercially reasonable to do so.

     

    
      	
            	
              22.2

            	
              Entire
      understanding

            

    

     

    This
Agreement is the entire agreement and understanding between the parties on
everything connected with the subject matter of this Agreement and supersedes
any prior agreement or understanding on anything connected with that subject
matter. Notwithstanding the foregoing, the Development Agreement continues to
govern the development of the First Product; provided, however, that in the
event of a conflict between any provision of the Development Agreement and any
provision of this Agreement, the relevant provision of this Agreement shall
govern.

     

    
      	
            	
              22.3

            	
              Variation

            

    

     

    An
amendment or variation to this Agreement is not effective unless it is in
writing and signed by the parties.

     

    
      	
            	
              22.4

            	
              Waiver

            

    

     

    A party's
failure or delay to exercise a power or right does not operate as a waiver of
that
power or right. The exercise of a power or right does not preclude either its
exercise
in the future or the exercise of any other power or right. A waiver is not
effective
unless it is in writing. Waiver of a power or right is effective only in respect
of the
specific instance to which it relates and for the specific purpose for which it
is given.

     

    
      	
            	
              22.5

            	
              Costs and
      outlays

            

    

     

    Each
party must pay its own costs and outlays connected with the
negotiation, preparation and execution of this Agreement.

     

    
      	
            	
              22.6

            	
              Governing law and
      jurisdiction

            

    

     

    This
Agreement shall be governed and construed in accordance with the laws of
England,
United Kingdom.

     

    [Signature
page follows]

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    Executed
as an agreement.

    

    Executed
by MiniFAB (Aust) Pty
Ltd

    ACN 100
768 474 in accordance with

    section
127 of the
Corporations Act 

    2001:

    

    
      	
              /s/
      Michael Wilkinson

            	
              /s/
      Erol Harvey

            
	
              Director/company
      secretary

            	
              Director

            
	 
      	 
      
	
              Michael Wilkinson

            	
              Erol Harvey

            
	
              Name
      of director/company secretary

            	
              Name
      of director

            
	
              (BLOCK
      LETTERS)

            	
              (BLOCK
      LETTERS)

            

    

    

    

     

    Signed
for and on behalf of

    OcuSense, Inc. by its
authorised

    representative
in the presence of:

    

    

    
      	
              /s/
      Stephen Zmina

            	
              /s/
      Eric Donsky

            
	
              Signature
      of witness

            	
              Signature
      of authorised representative

            
	 
      	 
      
	
              Stephen Zmina

            	
              ERIC DONSKY,
      CEO

            
	
              Name
      of witness

            	
              Name
      of authorised representative

            
	
              (BLOCK
      LETTERS)

            	
              (BLOCK
      LETTERS)

            

    

    

     

    Address
of witness

     

    12707
High Bluff Dr. #200

    San
Diego, CA 92130

    U.S.A.

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    ***Schedule
1 in its entirety has been omitted pursuant to a request for confidential
treatment and has been filed separately with the U.S. Securities and Exchange
Commission.

    

      
        
           

        

        
           

          
            

          

        

        
           

        

      

    

     

    Schedule
2

    Form
of Development Order

    

     

    Development
Order made between MiniFAB and OcuSense pursuant to the Manufacturing and
Development Agreement dated ###

    

    Date of
Development Order

    

    
      	
            	
              1. 

            	
              Description of New
      Product

            

    

    ###

    

     

    
      	
               
      

            	
              2.

            	
              Draft New Product Development
      Requirements

            

    

    #Insert
draft#

     

     

    
      	
               
      

            	
              3.

            	
              Estimated Development
      Expenses

            

    

    ###

    

     

    
      	
               
      

            	
              4.

            	
              Project
    Plan

            

    

    #Please
insert a project plan for carrying out the development.#

     

     

    
      	
               
      

            	
              5.

            	
              Development Milestones and
      Payments (if not included in the Project
  Plan)

            

    

    #Each
payment milestone should specify the amount payable and when it is payable.
Other payment terms (if any) should be specified.#

     

     

    
      	
               
      

            	
              6.

            	
              Successful
      Completion

            

    

    #Please
insert criteria for Successful Completion. If this is left blank, then the
default provisions in clause 5.10 will apply.#

     

     

    
      	
               
      

            	
              7.

            	
              Other
    terms

            

    

    #Insert
any other applicable terms relevant to the development of the new
product.#

    

     

    MiniFAB
and OcuSense agree that MiniFAB will provide the R&D Services pursuant to
the Manufacturing and Development Agreement between the parties to develop the
New Product as detailed in this Development Order.

    

    

     

    Signed
for and on behalf of MiniFAB

    

    

     

    Signed
for and on behalf of OcuSense

    

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

     

    ***Annexures A
and B in their entirety have been omitted pursuant to a request for confidential
treatment and have been filed separately with the U.S. Securities and Exchange
Commission.Unassociated Document

    
      
        

      

    

    Exhibit
10.37

    
 

    
      *The
identity of the counterparty to this Agreement and certain other pieces of
information that could reasonably be expected to identify the counterparty to
this Agreement have been omitted pursuant to a request for confidential
treatment and have been filed separately with the U.S. Securities and Exchange
Commission.

      

      **Quantitative
information contained in Sections IV(c) of this Agreement and in Paragraphs 1
and 9 of Exhibit A to this Agreement has been omitted pursuant to a request for
confidential treatment and has been filed separately with the U.S. Securities
and Exchange Commission.

      

      ***Paragraphs
5 and 7 of Exhibit A to this Agreement have been omitted in their entirety
pursuant to a request for confidential treatment and have been filed separately
with the U.S. Securities and Exchange Commission.

      

      

      RESEARCH
AGREEMENT

      

      

      THIS AGREEMENT, made as of the
13th
day of December, 2007 (the “Effective Date”), by and between *, a Delaware corporation with
a principal place of business at * and OcuSense, Inc. (“Contractor”),
a Delaware corporation having its principal place of business at 12707 High
Bluff Dr, Suite 200, San Diego, California 92130.

      

      

      WITNESSETH:

      

      WHEREAS, * and Contractor desire to
engage in research regarding the clinical validation of Contractor’s TearLabTM
system for the measurement of osmolarity in the tear film (“TearLabTM System”);
and

      

      WHEREAS, * and the Contractor desire to
engage in such research in accordance with the terms and conditions contained
herein.

      

      NOW, THEREFORE, in
consideration of the mutual covenants and promises set forth herein, it is
agreed by and between *
and Contractor as follows:

      

      

      SECTION
I

      NATURE OF
RESEARCH

      

      * and Contractor shall engage
in research regarding Contractor’s TearLabTM System via validation activities and
clinical studies of osmolarity in ocular tears as set forth in Exhibit A (the
“Research”). * and
Contractor agree to use their commercially reasonable efforts on and to keep
each other informed regarding the Research. * and Contractor agree that
all Research shall be performed in accordance with Good Clinical Practices and
all applicable laws and regulations. Exhibit A is incorporated into this
Agreement and made an essential part of this Agreement by this
reference.

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

       

      SECTION
II

      TIME DEVOTED TO
RESEARCH

      

      The
parties agree that the amount of time devoted by Contractor in performance of
Research will be entirely within the control of Contractor, and that the amount
of time devoted by * in
performance of the Research will be entirely within the control of *.

      

      

      SECTION
III

      PAYMENT

      

      * will pay Contractor as set
forth in Exhibit A. Such payment shall be made within thirty (30) days of *’s receipt of Contractor’s
invoice.

      

      

      SECTION
IV

      TERM AND
TERMINATION

      

      This
Agreement shall begin on the Effective Date and shall expire on December 31,
2009. Notwithstanding the above, the Agreement may be terminated as
follows:

      

      
        	
                (a)

              	
                In
      the event that any material term or condition of this Agreement is
      breached by either party, the non-breaching party upon thirty (30) days’
      written notice to the other may terminate this Agreement. If any such
      breach is corrected within the applicable notice period, this Agreement
      shall continue in force.

              

      

      

      
        	
                (b)

              	
                * may terminate this
      Agreement at any time and for any reason upon written notice to
      Contractor. Upon such termination of the Agreement, * shall be entitled to
      retain all beta units of the TearLabTM System and associated test cards set
      forth in Paragraph 5 of Exhibit A and use such units solely for *’s internal business
      purposes.

              

      

      

      
        	
                (c)

              	
                Contractor
      may terminate the Agreement for safety reasons associated with the
      Research upon written notice to *. In the event of such
      termination by Contractor, *’s option set forth in
      Paragraph 9 of Exhibit A shall survive the termination by thirty (30)
      days. In the event of such termination by Contractor before the beginning
      of the Contractor clinical studies set forth in Paragraph 1 of Exhibit A,
      Contractor shall refund $** to *. In the event of such
      termination by Contractor before delivery of all beta units of the
      TearLabTM System and associated test cards as set forth in Paragraph 5 of
      Exhibit A, Contractor shall refund to * a pro rata portion of
      the $** payment
      made by * for the
      beta TearLabTM System and associated test cards. For the purposes of any
      such refund, $**
      shall be allocated to the beta TearLabTM Systems ($** per unit), and $** shall be allocated to
      the associated test cards ($** per
      unit).

              

      

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

      **Quantitative
information contained in Section IV(c) has been omitted pursuant to a request
for confidential treatment and has been filed separately with the U.S.
Securities and Exchange Commission.

      

      
        	
                 
      

              	
                (d)

              	
                In
      the event of any termination of this Agreement other than material breach
      by Contractor, all rights of * and obligations of
      Contractor under Paragraphs 2, 3, 4, and 6 of Exhibit A shall
      terminate.

              

      

      

      
        	
                 
      

              	
                (e)

              	
                In
      the event of any termination of this Agreement other than material breach
      by *, all rights
      of Contractor and obligations of * under Paragraph 7 of
      Exhibit A shall terminate.

              

      

      

      

      SECTION
V

      INDEPENDENT
CONTRACTOR

      

      In the
performance of the Research, the status of the parties, including their
respective employees and agents, shall be that of independent contractors and
not as employees or agents, or fiduciaries of the other party, and as such each
party shall have no right to make any commitments for or on behalf of the other
party. Nothing in this Agreement shall create any association, partnership, or
joint venture between the parties.

      

      

      SECTION
VI

      CONFIDENTIALLITY AND
DOCUMENTS

      

      The
parties entered into a confidentiality agreement dated November 26, 2007
regarding the potential use of the TearLabTM System in * and Contractor clinical
studies of osmolarity in ocular tears (the “Confidentiality Agreement”). The
parties hereby agree that the Confidentiality Agreement shall be applicable to
the Research and this Agreement; provided, however that the permitted use by
* and Contractor as
receiving parties of the Confidential Information of the other party shall
include the use of Confidential Information of the other party to the extent
necessary for the purposes of this Agreement.

      

      Each
party shall maintain records, in sufficient detail and in good scientific manner
appropriate for patent and regulatory purposes, which shall be complete and
accurate and shall fully and properly reflect all work done and results achieved
in the performance of the Research. Each party shall maintain such records and
all Confidential Information of the other party contained therein in confidence
in accordance with the Confidentiality Agreement. Subject to the terms and
conditions of this Agreement, all files, records, documents, and other materials
prepared by a party in connection with the Research are and shall remain the
exclusive property of such party.

      
        
           

        

        
          3

          
            

          

        

        
           

        

      

       

      Except as
expressly provided in this Agreement, nothing contained herein shall be
construed as conferring any license or other rights by implication, estoppel or
otherwise. Without limiting the generality of the non-use restrictions set forth
in the Confidentiality Agreement, neither party shall (or cause, assist or
permit any third party to): (a) use the Confidential Information of the other
party, or any data, information or materials derived directly therefrom, to
reproduce, generate, create or produce, through reverse-engineering or
otherwise, the technology of the party or any derivatives thereof, or (b) file,
prosecute, or maintain, in any country, any patent application which directly
claims, uses, or relies for support upon the Confidential Information of the
other party, or any data, information or materials derived directly therefrom.
For sake of clarity, the exceptions to the obligations of confidentiality and
non-use assumed by the parties on page 2 of the Confidentiality Agreement are
applicable to the immediately preceding sentence.

      

      

      SECTION
VII

      INDEMNIFICATION

      

      Contractor
shall indemnify, defend, and hold * harmless from and against
all third party claims and actions, and all expenses incidental to such claims
or actions, including reasonable attorney’s fees, based upon or arising out of
damage to property or injuries or death to persons or other tortious acts
directly caused or contributed to by Contractor or anyone acting under its
direction or control, or on its behalf in the course of the Research provided
Contractor’s aforesaid indemnity and hold harmless agreement shall not be
applicable to the extent any such claims or actions are based upon the
negligence or intentional malfeasance of *.

      

      * shall indemnify, defend, and
hold Contractor harmless from and against all third party claims and actions,
and all expenses incidental to such claims or actions, including reasonable
attorney’s fees, based upon or arising out of damage to property or injuries or
death to persons or other tortious acts caused or contributed to by * or anyone acting under its
direction or control, or on its behalf in the course of the Research provided
*’s aforesaid indemnity
and hold harmless agreement shall not be applicable to the extent any such
claims or actions are based upon the negligence or intentional malfeasance of
Contractor.

       

       

      SECTION
VIII

      NOTICE

      

      For the purposes of this Agreement,
notices and demands shall be deemed given when received at the following
address:

      

      
        	
                To
      *:

              	
                *

              	 
      	 
      
	 
      	 
      	 
      	 
      
	
                To
      Contractor:

              	 
      	
                OCUSENSE,
      INC.

              
	 
      	 
      	
                12070
      High Bluff Dr., Suite 200

              
	 
      	 
      	
                San
      Diego, California 92130

              
	 
      	 
      	
                Attention:

              	
                Eric
      Donsky, CEO

              

      

      
        
           

        

        
          4

          
            

          

        

        
           

        

      

       

      Either
party may change such address by giving the other party notice of such change in
the aforesaid manner, except notices of changes of address shall only be
effective upon receipt.

      

      

      SECTION
IX

      SEVERABILITY

      

      The
invalidity of any such provision or provisions of this Agreement shall not
affect any other provisions of this Agreement, which shall remain in full force
and effect, nor shall the invalidity of a portion of any provision of this
Agreement affect the balance of such provision.

      

      

      SECTION
X

      REMEDIES

      

      Nothing
in the Agreement shall be construed to limit the parties’ remedies at law or in
equity.

      

      

      SECTION
XI

      INSURANCE

      

      Contractor
and * shall maintain at
their expense appropriate insurance or self-insurance adequate to meet their
respective obligations under Section VII hereinabove. Each party shall furnish
certificates of insurance showing compliance with the foregoing requirement upon
the other party’s written request.

      

      

      SECTION
XII

      FORCE
MAJEURE

      

      Neither
party shall be responsible or liable for its failure to perform its obligations
during any period in which such performance is prevented by acts of God, fire,
flood, war, embargo, strikes, explosion, riots, or laws, rules, regulations,
instructions, or orders of any governmental authority not brought on by the
party unable to perform.

      

      

      SECTION
XIII

      MISCELLANEOUS

      

      No
provisions of this Agreement may be modified, waived, or discharged unless such
modification, waiver, or discharge is agreed to in writing signed by officers of
Contractor and *. No
waiver by either party hereto at any time of any breach by the other party
hereto or of compliance with any condition or provision of this Agreement to be
performed by such other party shall be deemed a waiver of similar or dissimilar
provisions or conditions at the same or at any prior or subsequent time. No
agreement or representations, oral, or otherwise, express or implied, have been
made by either party with respect to the subject matter hereof that are not set
forth expressly in this Agreement (other than the Confidentiality Agreement.)
This Agreement shall be governed by and construed in accordance with the laws of
the State of *. This
Agreement supersedes, amends, restates and replaces any prior agreement(s)
entered into between Contractor and * relating to the subject
matter hereof, and all such prior agreement(s) are hereby canceled and
terminated and are of no further force of effect, with the exception that the
Confidentiality Agreement shall remain in effect in accordance with its terms
and shall apply to the Research and this Agreement. Except as otherwise
specifically provided herein, neither party shall assign this Agreement or any
rights hereunder without the consent of the other party, such consent to not be
unreasonably withheld, and any attempted or purported assignment without such
consent shall be void, except that either party may assign this Agreement
without the other party’s consent to any parent, affiliate, or subsidiary of
such party, or in connection with a merger, acquisition, sale of controlling
interest, or similar event. This Agreement shall otherwise bind and inure to the
benefit of the parties hereto and their respective successors and assigns.
NEITHER PARTY SHALL BE LIABLE TO THE OTHER PARTY OR ANY THIRD PARTY IN ANY
MANNER, UNDER ANY THEORY OF LIABILITY, WHETHER IN CONTRACT, TORT (INCLUDING
WITHOUT LIMITATION NEGLIGENCE), INDEMNITY, BREACH OF WARRANTY OR OTHER THEORY,
FOR ANY INDIRECT, CONSEQUENTIAL, INCIDENTAL, EXEMPLARY, PUNITIVE, STATUTORY OR
SPECIAL DAMAGES ARISING IN CONNECTION WITH THIS AGREEMENT, INCLUDING LOST
PROFITS AND LOSS OF DATA, REGARDLESS OF WHETHER SUCH PARTY WAS ADVISED OF OR WAS
AWARE OF THE POSSIBILITY OF SUCH DAMAGES.

      
        
           

        

        
          5

          
            

          

        

        
           

        

      

       

      IN
WITNESS WHEREOF, this Agreement has been duly executed and delivered by the
parties as of the date first above written.

      

      

      *

      

      
        	
                By:

              	 	 
      
	 
      	
                *

              	 
      
	 
      	
                *

              	 
      
	
                Date:

              	
                12-13-07

              	 
      

      

      

      OCUSENSE,
INC.

      

      
        	
                By:

              	
                “Eric Donsky”

              	 
      
	 
      	
                Eric
      Donsky

              	 
      
	 
      	
                Chief
      Executive Officer

              	 
      
	
                Date:

              	
                12-13-07

              	 
      

      

      

        
          
             

          

          
            6

            
              

            

          

          
             

          

        

      

       

      EXHIBIT
A

      

      

      
        	
                1)

              	
                * shall pay Contractor
      $** for (a) the
      support of Contractor clinical studies of osmolarity in ocular tears using
      Contractor’s TearLabTM System, including without limitation the study
      entitled “A Prospective Study to Establish Normative Values, Demographic
      Variations, Referent Diagnostic Values, Disease Severity Correlations for
      Dry Eye Disease, and Tearlab Osmometry” ($**) and (b) the items
      outlined in Paragraph 5 ($**). Contractor shall
      invoice * for such
      payment upon execution of this
Agreement.

              

      

      

      **Quantitative
information contained in Paragraph 1 has been omitted pursuant to a request for
confidential treatment and has been filed separately with the U.S. Securities
and Exchange Commission.

      

      
        	
                2)

              	
                Contractor
      agrees that *
      shall be the sole third party corporate sponsor of such Contractor
      clinical studies and that * shall receive
      appropriate acknowledgement in the publication of such
      studies.

              

      

      

      
        	
                3)

              	
                Contractor
      agrees to provide *, under the
      confidentiality terms of the Agreement, access to all data at the
      completion of the supported clinical studies described in Paragraph 1
      above. * shall
      have the right to use such data solely for the purposes of evaluating same
      in connection with consideration of a continuing business relationship
      with Contractor relating to the results of the Research. * shall not make any
      other use of such data without the prior written consent of
      Contractor.

              

      

      

      
        	
                4)

              	
                * shall be the only
      third party corporate institution to have access to the data described in
      Paragraph 3 above prior to the publication of the data. Notwithstanding
      the foregoing, *
      agrees that such data can be shared with and presented by corporate
      entities that do not compete with * in the field of
      ophthalmology (or their Key Opinion Leaders) for the purpose of supporting
      product launch of the TearLabTM
System.

              

      

      

      ***Paragraph
5 in its entirety has been omitted pursuant to a request for confidential
treatment and has been filed separately with the U.S. Securities and Exchange
Commission.

      

      
        	
                6)

              	
                Contractor
      agrees to provide * with a limited
      exclusive access to Contractor’s TearLabTM System solely as follows: Until
      FDA clearance of the first 510(k) for Contractor’s TearLabTM System
      osmolarity equipment, Contractor agrees that * shall be only third
      party corporate entity that will have access to the beta units of the
      TearLabTM System osmolarity equipment for the purpose of conducting dry eye
      clinical studies for the commercial development of therapeutic compounds
      indicated for the treatment of dry eye in countries where the TearLabTM
      System is not approved for commercial sale and use. Contractor reserves
      the right to provide third parties with access to Contractor’s TearLabTM
      System in any manner that does not conflict with the foregoing
      restriction, including without limitation (a) providing commercial units
      of Contractor’s TearLabTM System to any third parties in countries where
      Contractor’s TearLabTM System is approved for commercial sale and use, (b)
      providing access to Contractor’s TearLabTM System to any academic or other
      non-profit institutions (but not for the purpose of participating in dry
      eye clinical studies of a third party for the commercial development of
      therapeutic compounds indicated for the treatment of dry eye), and (c)
      providing access to the beta units of the TearLabTM System to any third
      party, including countries where the TearLabTM System is not approved for
      commercial sale and use, for any purpose other than conducting clinical
      studies for the commercial development of therapeutic compounds indicated
      for the treatment of dry eye.

              

      

      
        
           

        

        
          7

          
            

          

        

        
           

        

      

       

      ***Paragraph
7 has been omitted in its entirety pursuant to a request for confidential
treatment and has been filed separately with the U.S. Securities and Exchange
Commission.

      

      
        	
                8)

              	
                If
      * desires to
      publish or make public any results of the Research or any data disclosed
      by Contractor to *
      under Paragraph 3 above, * shall first submit to
      Contractor for comment any such proposed manuscript or public release of
      information at least 45 days prior to its submission or release. No
      publication or presentation shall be made unless and until all of
      Contractor’s comments on the proposed publication or presentation have
      been considered by * and any Contractor
      Confidential Information has been removed. If requested in writing by
      Contractor, *
      shall withhold material from submission for publication or presentation
      for an additional 90 days to allow for the filing of a patent application
      or the taking of other measures to establish and preserve Contractor’s
      proprietary rights. In any publication of studies described in Paragraph
      7, * shall
      acknowledge Contractor’s provision of the beta
  units.

              

      

      

      
        	
                9)

              	
                During
      the term of the Agreement, Contractor hereby grants * an option to enter
      into a supply agreement for the purchase of up to ** commercial units of
      the Contractor’s TearLabTM System and up to ** commercial units of
      the associated test cards for use in * clinical studies at
      prices not to exceed $** per commercial unit
      of the TearLabTM System and $** per commercial unit
      of the test cards. *, in its sole
      discretion, shall exercise this option via written notice to the
      Contractor. Upon receipt of such notice, * and Contractor shall
      negotiate in good faith an appropriate supply agreement for such TearLabTM
      Systems and test cards with estimated quantity forecasts and other
      commercially reasonable terms and
conditions.

              

      

      

      **Quantitative
information contained in Paragraph 9 has been omitted pursuant to a request for
confidential information and has been filed separately with the U.S. Securities
and Exchange Commission.

       

       

       8

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