Document:

Sublease Agreement

 Exhibit 10.17 
 CARDIOVASCULAR BIOTHERAPEUTICS, INC. 
 SUBLEASE AGREEMENT 
 This sublease agreement was entered into on November 2005 between CadioVascular BioTherapeutics, Inc., a Delaware corporation, referred to as
“lessee,” and Phage Biotechnology Corporation, a Delaware corporation, referred to as “sublessee”. 
 RECITALS

 The parties recite and declare: 
  

	 	A.	Lessee has leased space in an office building. 

  

	 	B.	Sublessee desires to obtain office space in the geographical area in which the building is located. 

  

	 	C.	The parties desire to enter a sublease agreement defining all rights, duties, and liabilities of the parties. 

 In consideration of the mutual covenants contained in this sublease agreement, the parties agree as follows: 
 ARTICLE 1 
 DESCRIPTION OF PREMISES

  

	1.1	Lessee has leased approximately 6,325 square feet of office space on the second floor of a building from Howard Hughes Properties, Limited Partnership, lessor, of 1635 Village
Center Circle, Las Vegas, Nevada, 89134. 

  

	1.2	Lessee shall demise to sublessee the 3,000 square feet of the building, all located on the second floor, as more fully described in Exhibit “A” of the original lease
agreement between lessee and lessor (Plaza West Summerlin Lease Agreement), which is attached to and made a part of this sublease agreement. 

 ARTICLE 2 
 PURPOSE OF SUBLEASE 
  

	2.1	The premises demised under this sublease agreement are to be used by sublessee in the conduct of the business of Biotechnology and Pharmaceutical Industry, and all tasks related to
that business. 

  

	2.2	Sublessee shall not use the demised premises for any illegal, immoral, or ultra-hazardous activity, whether within or outside the scope of the business of sublessee.

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 ARTICLE 3 
 TERM OF SUBLEASE 
  

	3.1	The term of this sublease agreement shall be for an initial period of              [number] years,
commencing on              [date], and terminating on              [date], unless earlier terminated
by breach of the terms and conditions of this sublease agreement or as provided in Articles 7 or 17. 

  

	3.2	Lessor concurs that sublessee may remain in possession of the demised premises for the full term of this sublease agreement, despite any change that may occur in the status of
lessee or the lease agreement between lessee and lessor. 

 ARTICLE 4 
 RENT 
 Sublessee shall pay to lessee a base rent as
determined from Article 1.3 of the original lease between lessee and lessor (Plaza West Summerlin Lease Agreement – attached). Sublessee shall also pay all other sums due as additional rental under the provisions of this sublease agreement and
Article 5.3 of the original lease between lessee and lessor (Plaza West Summerlin Lease Agreement – attached) and subject to Article 6 original lease between lessee and lessor (Plaza West Summerlin Lease Agreement – attached). 

ARTICLE 5 
 SERVICES AND
UTILITIES 
 Lessee shall furnish all water and sewer services to sublessee at the expense of lessee. All other utilities required by sublessee on the
demised premises, including gas, electricity, and telephone services shall be obtained by and at the expense of sublessee. Sublessee shall also obtain and pay the expense of all janitorial services required on the demised premises. 
 ARTICLE 6 
 ACCIDENTAL DAMAGE OR
INJURY 
 Lessor and lessee shall not be liable for any damage to property or any injury to persons, sustained by sublessee or others, caused by
conditions or activities on the demised premises. Sublessee shall indemnify lessor and lessee against all claims arising from such damages or injuries and shall carry liability insurance insuring lessee, sublessee, and lessor against any claims in
amounts to be approved by lessor. 
  

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 ARTICLE 7 
 CASUALTY DAMAGE OR INJURY 
 If the demised premises shall be destroyed or damaged by any acts of war, the elements,
including earthquake, or fire, to such an extent as to render the demised premises untenantable in whole or in substantial part, lessor has the option of rebuilding or repairing the demised premises by giving notice to that effect to lessee within
30 days after the occurrence of any damage of the intent of lessor to rebuild or repair the demised premises or the part so damaged. If lessor elects to rebuild or repair the demised premises and does so without unnecessary delay, sublessee shall be
bound by this sublease agreement, except that during the period of repair the rent of the demised premises shall be abated in the same proportion that the part of the demised premises rendered unfit for occupancy by sublessee shall bear to the whole
of the subleased premises. If lessor fails to give notice of the intent to repair, sublessee shall have the right to declare this sublease agreement terminated. 
 ARTICLE 8 
 COMPLIANCE WITH ORIGINAL LEASE AND LAWS 
  

	8.1	Sublessee shall not cause or allow any undue waste on the demised premises and shall comply with all applicable laws and ordinances respecting the use and occupancy of the demised
premises relating to matters not covered elsewhere in this sublease agreement, provided that sublessee shall not be required to make any alterations, additions, or improvements to the demised premises in order to conform with this sublease
agreement. 

  

	8.2	Sublessee shall perform and observe the terms and conditions to be performed on the part of lessee under the provisions of the original lease agreement between lessee and lessor
(Plaza West Summerlin Lease Agreement – attached), excepting the covenant for the payment of rent reserved thereby, and to indemnify lessee against any and all claims, damages, costs, and expenses in respect to the nonperformance or
nonobservance of any such terms or conditions. 

 ARTICLE 9 
 REPAIRS 
 Subject to the obligations of lessor under Article 9 of the original lease agreement
(Plaza West Summerlin Lease Agreement – attached), lessee, unless specified to the contrary in this sublease agreement, shall maintain the demised premises in good repair and tenantable condition during the continuance of this sublease
agreement, except in case of damage arising from acts or negligence of sublessee or the agents of sublessee. 
  

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 ARTICLE 10 
 ALTERATIONS, ADDITIONS, OR IMPROVEMENTS 
  

	10.1	Sublessee shall not make any alterations, additions, or improvements on or to the demised premises without first obtaining the written consent of lessee. All alterations, additions,
and improvements that shall be made shall be at the sole expense of sublessee and shall become the property of lessee and shall remain on and be surrendered with the demised premises as a part of them at the termination of this sublease agreement
without disturbance, molestation, or injury. 

  

	10.2	Nothing contained in this section shall prevent sublessee from removing all office machines, equipment, and trade fixtures customarily used in the business of sublessee.

 ARTICLE 11 
 LIENS 
 Sublessee shall keep the demised premises free and clear of all liens arising out of any work performed, materials furnished, or
obligations incurred by sublessee. 
 ARTICLE 12 
 INSURANCE 
 Sublessee shall maintain a policy of Commercial General liability insurance insuring the lessor and
Sublessee against liability arising out of the ownership, use, occupancy or maintenance of the premises. Such insurance shall be on an occurrence basis providing single-limit coverage in an amount not less than Two Million Dollars ($2,000,000.00)
per occurrence. The initial amount of such insurance shall be subject to periodic increases upon reasonable demand by the lessor based upon inflation, increase liability awards, recommendation of professional insurance advisors, and other relevant
factors. However, the limits of such insurance shall not limit the subleasee’s liability nor relieve sublessee of any obligation hereunder. Sublessee shall comply with all provisions within Article 19 of the original lease agreement between the
lessee and lessor (Plaza West Summerlin Lease Agreement – attached) and this Article shall in no way be construed to be inconsistent with those provisions. 
 ARTICLE 13 
 ACCESS TO PREMISES 
 Sublessee shall allow lessor or lessee or the agents or employees of either the free access to the demised premises at all reasonable times for the purpose of inspecting or of making repairs, additions, or alterations
to the demised premises or any property owned by or under the control of either party. 
  

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 ARTICLE 14 
 ADVERTISEMENTS 
 All signs or symbols placed in the windows or doors of the demised premises, or on any exterior part
of the building by sublessee, shall be subject to the approval of lessee. If sublessee shall place signs or symbols on the exterior of the building or in the windows or doors where they are visible from the street that are not satisfactory to
lessee, lessee may immediately demand the removal of the signs or symbols. The refusal by sublessee to comply with any demand within a period of 24 hours will constitute a breach of this sublease agreement and entitle lessee immediately to recover
possession of the demised premises in the manner provided by law. Any signs so placed on the demised premises shall be so placed on the understanding and agreement that sublessee shall remove these signs or symbols at the termination of the tenancy
created in and by this sublease agreement and repair any damage or injury to the demised premises caused thereby. If not so removed by sublessee, then lessee may have the signs or symbols removed at the expense of sublessee. 
 ARTICLE 15 
 SALES, ASSIGNMENTS, AND
SUBLEASES 
  

	15.1	Sublessee shall not assign this sublease agreement, or sell or sublet the premises subleased, or any part of or interest in them, without the prior, express, and written consent of
lessee. 

  

	15.2	This sublease shall not be assigned by operation of law. 

  

	15.3	If consent is once given by lessee to the assignment of this sublease agreement or sublease of the demised premises or any interest in this sublease agreement, lessee shall not be
barred from subsequently refusing to consent to any further assignment or sublease. 

  

	15.4	Any attempt to sell, assign, or sublet without the consent of lessee, shall be deemed a default by sublessee, entitling lessee to reenter pursuant to Section Nineteen if lessee so
elects. 

 ARTICLE 16 
 QUIET ENJOYMENT 
 If sublessee performs the terms of this sublease agreement, lessee will warrant and defend
sublessee in the enjoyment and peaceful possession of the demised premises during the term of this sublease agreement without any interruption by lessee or lessor or either of them or any person rightfully claiming under either of them. 

 

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 ARTICLE 17 
 CONDEMNATION 
  

	17.1	If the demised premises or any part of the demised premises are appropriated or taken for any public use by virtue of eminent domain or condemnation proceedings, or if by reason of
law, ordinance, or court decree, whether by consent or otherwise, the use of the demised premises by sublessee for any of the specific purposes referred to in this sublease agreement shall be prohibited, sublessee shall have the right to terminate
this sublease on written notice to lessee, and rental shall be paid only to the time when sublessee surrenders possession of the demised premises. 

  

	17.2	In the event of partial appropriation, sublessee may elect to continue in possession of that part of the demised premises not so appropriated under the same terms and conditions of
this sublease agreement, except that in those cases sublessee shall be entitled to an equitable reduction of the rental payment under this sublease agreement. 

  

	17.3	Any rental paid in advance beyond the time that the property has been taken from sublessee shall be returned by lessee to sublessee on demand. 

  

	17.4	Sublessee does not waive any right to recover from the condemnation authority for any damage that may be suffered by sublessee by reason of any condemnation.

 ARTICLE 18 
 OPTION TO RENEW 
 Subject to the receipt by lessee of an extension of the original lease agreement for a sufficient duration to include this
renewal, at any time before the commencement of the last calendar month of the first term of this sublease agreement, sublessee is granted the option and privilege of extending and renewing the term of this sublease agreement for an additional
            -year period at an annual rental to be agreed on or arbitrated as provided in this sublease agreement. 
 ARTICLE 19 
 DEFAULT BY LESSOR OR LESSEE 
 If lessor or lessee fails or neglects to perform under the provisions of this sublease agreement or of the original lease between them (Plaza West Summerlin Lease
Agreement – attached), then sublessee may, after reasonable notice in writing of not less than 30 days, terminate this sublease agreement. 
  

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 ARTICLE 20 
 DEFAULT OF SUBLESSEE 
  

	20.1	If any rents reserved, or any part of them, shall be and remain unpaid when they shall become due, or if sublessee violates or defaults in any of the provisions of this sublease
agreement, then lessee may cancel this sublease agreement by giving the required notice, and reenter the demised premises. 

  

	20.2	In spite of any reentry, the liability of sublessee for the rent shall not be extinguished for the balance of the term of this sublease agreement, and sublessee shall make good to
lessee any deficiency arising from a reentry and reletting of the demised premises at a reduced rental. 

  

	20.3	Sublessee shall pay any deficiency on the first day of each month immediately following the month in which the amount of deficiency is ascertained by lessee.

 ARTICLE 21 
 INSOLVENCY OR BANKRUPTCY 
 If sublessee becomes insolvent, voluntarily or involuntarily bankrupt, or if a receiver, assignee, or other
liquidating officer is appointed for the business of sublessee, then lessee may terminate this sublease agreement at the option of lessee. 
 ARTICLE 22 
 WAIVER OF BREACH 
 The waiving of any of the provisions of this sublease agreement by any party shall be limited to the particular instance involved and shall not be deemed to waive any other rights of the same or any other terms of this sublease agreement.

 ARTICLE 23 
 TERMINATION AND SURRENDER 
  

	23.1	Sublessee shall surrender the demised premises within 30 days from receipt of notice of termination of this sublease agreement, or on the last day of the term of this sublease
agreement. 

  

	23.2	Lessee shall have the right to place and maintain on the demised premises “For Rent” or “For Sale” signs during the last 30 days of the term of this sublease
agreement. 

  

	23.3	Sublessee shall, at the expiration of this sublease agreement, surrender the keys to the demised premises to lessee. 

  

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	23.4	If sublessee shall surrender the demised premises at the election of sublessee, the liability for all duties and obligations required of sublessee shall continue until the surrender
has been accepted by lessee in writing. 

 ARTICLE 24 
 REMOVAL OF PERSONAL PROPERTY 
  

	24.1	Sublessee shall have the right to remove all personal property, trade fixtures, and office equipment, whether attached to the demised premises or not, provided that these items can
be removed without serious damage to the building or the demised premises. 

  

	24.2	All holes or damages to the building or the demised premises caused by removal of any items shall be restored or repaired by sublessee promptly. 

  

	24.3	Sublessee shall be entitled to remove any electrical service connections installed by sublessee that were designed specifically for sublessee. 

  

	24.4	If lessee or lessor reenters or retakes possession of the demised premises prior to the normal expiration of this sublease agreement, lessee or lessor shall have the right, but not
the obligation, to remove from the demised premises all personal property located on the premises belonging to sublessee. Either party may place the property in storage in a public warehouse at the expense and risk of sublessee.

 ARTICLE 25 
 HOLDING OVER 
  

	25.1	Any holding over at the expiration of this sublease agreement with the consent of lessee shall be on a month-to-month basis, which tenancy may thereafter be terminated as provided
by the laws of Nevada. 

  

	25.2	During any holdover tenancy, sublessee shall pay the same rate of rental on a monthly basis as is in effect at the time of the termination of this sublease agreement and shall be
bound by all the terms and conditions of this sublease agreement. 

 ARTICLE 26 
 INTEREST OF SUCCESSORS 
 The covenants and agreements
of this sublease agreement shall be binding on the successors and assigns of lessee and on the successors and assigns of sublessee but only to the extent specified in this sublease agreement. 
  

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 ARTICLE 27 
 NOTICES 
 Except where otherwise required by statute, all notices given pursuant to the provisions of this sublease
agreement may be sent by certified mail, postage prepaid, to the last known mailing address of the party for whom the notice is intended. 
 ARTICLE 28 
 ARBITRATION 
 If any controversy develops that is to be submitted to arbitration according to the terms of this sublease agreement, it shall be arbitrated in accordance with the arbitration laws of Nevada, as supplemented by the rules then
obtaining of the American Arbitration Association. Judgment on any award rendered may be entered in any court having jurisdiction over the parties and the property. 
 ARTICLE 29 
 COSTS OF LITIGATION 
 If any legal action is instituted to enforce this sublease agreement, or any part of this sublease agreement, the prevailing party shall be entitled to recover reasonable attorney fees and court costs from the other
party. 
 ARTICLE 30 
 VENUE 
 At the option of either party, venue of any action may be established in Las Vegas, Nevada. Personal service either within or
without Nevada shall be sufficient to give that court jurisdiction. 
 ARTICLE 31 
 ACKNOWLEDGMENT BY LESSOR 
 This sublease agreement is
made with the full knowledge and agreement of lessor of the demised premises, and lessor accepts this sublease agreement but retains all rights to disapprove any future sublease between lessee and sublessee or between lessee and any other party.

 ARTICLE 32 
 GOVERNING LAW 
 It is agreed that this sublease agreement shall be governed by, construed, and enforced in accordance with the laws of the
state of Nevada. 
  

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 ARTICLE 33 
 PARAGRAPH HEADINGS 
 The titles to the paragraphs of this sublease agreement are solely for the convenience of the
parties and shall not be used to explain, modify, simplify, or aid in the interpretation of the provisions of this sublease agreement. 
 ARTICLE 34 
 COUNTERPARTS 
 This sublease agreement may be executed in any number of counterparts, each of which shall be deemed to be an original, but all of which together shall constitute but one and the same instrument. 
 In witness, each party to this sublease agreement has caused it to be executed at
            [place of execution] on the date indicated below. 
  

							
	 LESSEE:
	 	SUBLESSEE:
		
	CardioVascular BioTherapeutics, Inc.,	 	Phage Biotechnology Corp.
	A Delaware corporation	 	A Delaware corporation
				
	By:	 	 /s/    MICKAEL A.
FLAA        
	 	By:	 	 /s/    JACK W.
JACOBS        

	Print:	 	 Mickael A. Flaa
	 	Print:	 	 Jack W. Jacobs

	Title:	 	CFO	 	Title:	 	COO

  

 Page 10 of 10Agency Agreement with Fleming Securities, Inc

 Exhibit 10.30 
 OPTICAL SENSORS INCORPORATED 
 SELLING AGENCY AGREEMENT 
  

			
	FLEMING SECURITIES INCORPORATED	 	February 6, 2006

 17797 North Perimeter Drive, Suite 105 
 Scottsdale, Arizona 85255 
 Gentlemen: 
 The undersigned, OPTICAL SENSORS INCORPORATED d/b/a väsamed, a Delaware corporation with its principal office located at 7615 Golden Triangle Drive,
Suite C, Eden Prairie, Minnesota 55344 (the “Company”), confirms its agreement with you as follows: 
 1. Description of
Securities and Offering. 
 (a) The Company proposes to issue and sell in a private placement solely to accredited
investors, as such term is defined in Rule 501(a) promulgated under the Securities Act of a 1933, as amended (“1933 Act”) (“Purchasers”), a series of convertible promissory notes in the aggregate principal amount of $4,500,000
(the “Notes”) with detachable warrants (the “Warrants”), the Notes and Warrants, collectively, being referred to herein as (the “Securities”). The Securities will be sold pursuant the terms of a Note and Warrant
Purchase Agreement between the Company and each Purchaser in the form annexed hereto as Exhibit “A” (the “Purchase Agreement”). The minimum investment is $100,000, although the Company reserves the right to accept purchases of
Securities for such lesser amounts as it may determine in its sole discretion. The Notes are convertible into shares of the Company’s Series C Preferred stock (“Series C Stock”) at a conversion price of $90.00 per share. Each share of
Series C Stock by its terms is initially convertible into 40 shares of the Company’s common stock at a conversion price of $2.25 per share. The initial Warrant exercise price is $2.25 per share and is subject to adjustment if the Company issues
securities at a price of less than $2.25 per share, subject to customary exceptions, as set forth in the Warrant. The Warrants are exercisable for a period of five years from the date of issuance. The Purchasers are also entitled to demand and
piggyback registration rights with respect to the shares of Common Stock underlying the Series C Preferred Stock issuable upon conversion of the Note and the Common Stock issuable upon exercise of the Warrants. 
 (b) You have advised the Company that Fleming Securities, Inc. (“Fleming Securities” or “Agent”) will act as exclusive
agent for the Company for the offering of the Securities. You will offer the Securities on a “best efforts” basis. The Company shall accept or reject a Purchase Agreement signed by a Purchaser and the funding offered thereby as such
agreement is presented to 

 
the Company by Agent up to the aggregate principal amount of $4,500,000. The Company retains the right to reject any Purchase Agreement in whole or in part
in its reasonable discretion. Each acceptance by the Company will constitute a closing on the accepted Purchase Agreement, and the Company shall promptly issue to the Purchaser a Note and Warrant pursuant to the Purchase Agreement. A final closing
shall be held no later than seven (7) business days after termination of the private placement of the Securities for the purpose of closing any remaining sales, paying commissions and expenses to Agent and issuing Placement Agent’s
Warrants, as set forth below (the “Closing Date”, and on such date the final “Closing” shall occur). You are authorized to offer the Securities until and including April 6, 2006, which period may be extended for thirty
(30) days upon written request to the Company or additional periods as mutually agreed to by the Agent and the Company. The term “Offering Period,” as used herein, shall include the entire period during which the Securities may be
offered. 
 In addition, upon the final Closing Date, the Company agrees to sell to Fleming Securities for an aggregate price of $100,
warrants (“Placement Agent’s Warrants”) for the purchase of that number of shares of Common Stock that is equal to 10% of the number of shares of Common Stock that may be purchased pursuant to warrants sold in this bridge financing
pursuant to the Purchase Agreement (“Placement Agent’s Shares”). The Placement Agent’s Warrants will be exercisable at a price of $2.70 per Placement Agent’s Share for a period of ten (10) years commencing as of the
final Closing Date, such price being adjustable as provided in the Placement Agent’s Warrants which shall be in the form attached hereto as Exhibit “B.” 
 2. Representations, Warranties and Agreements of the Company. The Company represents, warrants to and agrees with you that: 
 (a) Applications or other filings necessary to qualify the Securities for sale or to obtain a valid exemption from qualification in the
states set forth in Schedule 2(b) or as you may reasonably designate from time to time (the “Designated States”), including an exemption from federal securities laws, have been or will be timely filed to permit the lawful offer and sale of
the Securities in such states. These applications or other filings, as they may be amended from time to time, are referred to herein as the “Blue Sky Applications”. The Blue Sky Applications shall be prepared and filed by Company counsel
and will be accomplished in a timely manner. The Company shall timely prepare and file a Form D in connection with the offering contemplated hereby. 
 (b) The Company knows of no outstanding claims for services either in the nature of a finder’s fee or origination fee with respect to the sale of the Securities hereunder resulting from its acts for which you or
the Company may be responsible. 
 (c) This Agreement has been duly authorized by all necessary corporate action of the
Company and, when executed and delivered, will be a legal, valid and binding obligation of the Company, enforceable in accordance with its terms, except to the extent that the enforceability hereof may be limited by bankruptcy, insolvency,
moratorium or similar laws affecting creditors’ rights generally or by general principles of equity, and except that the indemnification provisions of the Agreement may be held to be in violation of public policy under either federal or state
laws in the context of the offer or sale of securities. 
  

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 (d) The Securities to be sold by the Company hereunder have been duly authorized. The
Securities, when issued and delivered pursuant to this Agreement, will be validly issued and delivered pursuant to this Agreement and will be valid and binding obligations of the Company, enforceable in accordance with their terms. A sufficient
number of shares of the Series C Stock and Common Stock of the Company have been reserved for issuance of all shares of Series C Stock and Common Stock that may be issued upon the conversion of the Note, the Series C Stock and upon the exercise of
the Warrants and Placement Agent’s Warrants. Upon payment for, and delivery of, the Securities pursuant to the Purchase Agreement, the Purchasers will acquire good and marketable title to the Securities, free and clear of all liens,
encumbrances or claims, except those created by the Purchasers. 
 (e) The Placement Agent’s Warrants and the Placement
Agent’s Shares to be issued upon exercise of the Placement Agent’s Warrants, when issued and delivered to you, will constitute valid and binding obligations of the Company in accordance with their terms. All Placement Agent’s Shares
issuable upon exercise of the Placement Agent’s Warrants, when issued in accordance with the terms of this Agreement upon the due exercise of the Placement Agent’s Warrants, will be fully paid and non-assessable, and subject to no
preemptive rights or similar rights on the part of any person or entity. 
 (f) Neither the Company nor any affiliate has
offered to sell, offered for sale or sold any securities, the offer to sell, offer for sale or sale of which would be integrated (as that term is used in Rule 502(a) of Regulation D promulgated under the 1933 Act (“Regulation D”)) with the
offers to sell, offers for sale and sales of the Securities so as to render the exemption upon which the Company is relying in connection with the sale of Securities unavailable with respect to the offering of the Securities hereunder. 

(g) The Company will perform its obligations with respect to the offering in a manner intended to be in compliance with the
requirements of Regulation D. The Company is not disqualified from claiming exemption under Regulation D by Rule 505(b)(2)(iii) of Regulation D and the offering meets the requirements to claim exemption under Rule 506 of Regulation D. 
 3. Appointment of Placement Agent and Representations, Warranties and Agreements Thereof. 
 (a) On the basis of the representations, warranties and agreements herein contained, and subject to the terms and conditions herein set
forth, the Company appoints you as its exclusive agent during the Offering Period to effect sales of the Securities for the account of the Company upon the other terms and conditions set forth herein and you agree to use your best efforts as such
agent to produce Purchasers for the Securities during the Offering Period upon the terms and conditions set forth herein. 
 (b) You may in your discretion use the services of other registered brokers or dealers (“Participating Dealers”) in connection with the offering and sale of the Securities, and you may allow and pay to such Participating Dealers
(but only as consideration for services rendered in placement of the Securities), out of the compensation payable to you by the Company on account of the sale of the Securities, an amount as determined by you in your discretion, provided that all
such 

  

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Participating Dealers are members in good standing of the National Association of Securities Dealers, Inc. (“NASD”) who are actually engaged in the
investment banking or securities business and who have executed and delivered to you the written agreement prescribed by Section 24(c) of Article III of the NASD’s Rules of Fair Practice. 
 (c) As compensation for your services hereunder, the Company will (i) pay to you as Agent, a selling commission equal to 10% of the
gross proceeds from the sales of the Notes and Warrants sold in this bridge financing; (ii) sell to the Agent, for an aggregate price of $100, ten-year warrants to purchase Common Stock at 120% of the exercise price of the warrants sold in this
bridge financing, a number of shares of Common Stock equal to 10% of the number of shares of Common Stock that may be purchased pursuant to warrants sold in this bridge financing; (iii) pay the Agent a non-accountable expense allowance equal to
3% of the gross proceeds from sales of Notes and Warrants in this bridge financing; and (iv) reimburse the Agent for its accountable expenses of this bridge financing not to exceed $50,000. Such amounts shall be paid to you at the time
of the final Closing Date of this offering. No compensation shall be payable under this Agreement with respect to the exercise of any of the Placement Agent’s Warrants. 
 (d) Your appointment by the Company as exclusive agent shall commence upon the date of the execution of this Agreement, and shall continue
until and through the last day of the Offering Period, unless (i) the Securities shall be completely sold prior to that date, (ii) the offering has been terminated by agreement between you and us, or (iii) this Agreement shall be
terminated at a prior date as provided herein. 
 (e) It is expressly understood and agreed that you are an independent
contractor and that neither you nor your agent or employees are in any manner employees of the Company and that the Company shall have no responsibility for unemployment insurance, social security or income tax withholding in connection with your
employees. 
 (f) You represent that you are a member in good standing of the NASD and a broker-dealer registered as such
under the Securities Exchange Act of 1934, as amended (“1934 Act”), and under the securities laws of the states in which the Securities will be offered or sold by you and in which states registration as a broker-dealer is required and/or
necessary. 
 (g) You will offer the Securities in accordance with the applicable provisions of the 1933 Act in a manner so as
to preserve the exemption from registration as provided in Rule 506 and Regulation D under the 1933 Act and will not take, or omit to take, any action in connection with offers and sales of the Securities which would cause the offering not to be
made in compliance therewith; you will not offer the Securities for sale in any jurisdiction unless and until the Company or your counsel shall have advised you that the Securities are exempt from registration under the state securities laws
applicable thereto; and you have not and will not take any action which would require registration of the Securities under any federal or state securities laws, or any other laws, orders, rules or regulations without the consent of the Company.

 (h) The offering of the Securities will be limited to persons who have executed a Purchase Agreement and who have otherwise
satisfied you as to such person’s status as an “accredited investor” as defined in Rule 501(a) promulgated under the 1933 Act. 
  

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 (i) You shall make no representations concerning the offering or the Securities, except
as set forth in the Purchase Agreement, and except for such supplemental information relating to the Company as shall be made available by the Company to offerees and their representatives as contemplated by Regulation D. 
 (j) You will not use any offering or selling materials other than materials furnished or approved by the Company. 
 (k) You will not offer the Securities by means of any form of general solicitation or general advertising. 
 (l) In placing, offering, offering to sell, offering for sale, negotiating for sale or selling Securities, you will comply with the
applicable provisions of the 1933 Act. 
 (m) You shall offer or sell the Securities only in those jurisdictions in which you
have advised the Company that offers and sales will occur. 
 4. Covenants of the Company. The Company covenants and agrees
with you that: 
 (a) The Company will use its reasonable efforts to cause the Blue Sky Applications in the Designated States
and any subsequent amendments thereto to become effective (which term as used in this Agreement shall include taking all reasonable steps necessary to obtain an exemption from registration of the Securities in a jurisdiction) as promptly as
possible; it will notify you promptly of any request by the Securities Exchange Commission (“SEC”) or the corporate or securities departments, divisions or agencies (“Securities Departments”) of any of the Designated States for
the amendment or supplementing of the Blue Sky Applications; Company counsel will, at the Company’s expense, promptly file such amendments or supplements to the Blue Sky Applications, as may be necessary to correct any statements or omissions
if any event shall have occurred as a result of which the Blue Sky Applications include an untrue statement of a material fact or omit to state any material fact necessary to make the statements therein not misleading. 
 (b) Promptly upon becoming aware thereof, the Company will advise you and, if requested, confirm such advice in writing (i) of the
effectiveness of the Blue Sky Applications; (ii) of the issuance of any orders affecting the effectiveness of the Blue Sky Applications, or of the initiation or threatening of any proceeding for that purpose; and (iii) of any orders or
other communications of any public authority addressed to the Company suspending or threatening to suspend qualification of the Securities for sale or any exemption therefrom and the Company will use all reasonable efforts to prevent the issuance of
any such order or to obtain lifting of such an order if such an order should be issued. 
 (c) The Company agrees to pay all
reasonable expenses in connection with (i) the preparation, printing, duplicating and filing of the Blue Sky Applications including the costs of all copies thereof and of any amendments or supplements thereto supplied to you in quantities as
hereinabove stated, (ii) the preparation and delivery of the instruments evidencing the Securities, and (iii) the legal and other expenses of the Company. 
  

 -5- 

 (d) The Company agrees that until the first to occur of the termination of this Agreement
or of the Offering Period it will not sell or offer for sale any Securities, except with your written consent. 
 (e) The
Company will file Form D (as defined in Regulation D) and all required amendments thereto in a timely manner with the SEC and the Securities Departments of the Designated States and deliver copies thereof to you, together with copies of all forms
and other documents or materials filed either before or after any Closing Date to comply with State securities laws, all in such reasonable quantities as you may from time to time request. 
 5. Conditions to Your Obligations. Your obligations to use your best efforts to sell the Securities as provided herein shall be subject to
the accuracy, at the date hereof and at all times thereafter up to and including the final Closing hereunder, of the representations and warranties of the Company contained herein, the performance by the Company of its obligations hereunder, and to
the following additional conditions, except to the extent you may specifically waive, in writing, any condition otherwise required: 
 (a) The Blue Sky Applications shall have become effective in all Designated States necessary to successfully commence sale of the Securities not later than the date required to make lawful the offer and sale of the Securities in such
states; and no order suspending the effectiveness thereof shall have been issued and no proceeding for that purpose shall have been initiated or, to the knowledge of the Company or you, threatened by the Securities Departments of any Designated
State, the SEC or any other governmental agency or commission, and any request of the Securities Departments of any Designated State or the SEC for additional information (to be included in the Blue Sky Applications or otherwise) shall have been
complied with to the satisfaction of your counsel. 
 (b) As of the final Closing, you shall have received from Oppenheimer
Wolff & Donnelly, LLP, counsel to the Company, an opinion, addressed to you and in the form to be mutually agreed to by the parties. 
 (c) You shall have received a certificate, dated and delivered as of the final Closing, addressed to you, from the President of the Company to the effect that she has made a careful examination as to the facts
hereinafter referred to and to the best of her knowledge and belief as to all relevant factual matters: 
 (i) The Company has
complied with all the agreements and satisfied all of the conditions on its part to be performed or satisfied pursuant to this Agreement at or prior to the final Closing; 
 (ii) No order suspending the effectiveness of the Blue Sky Applications has been issued or threatened of which you have not been
previously notified pursuant to Section 4(b) hereof; and 
 (iii) Each of the representations and warranties of the
Company in this Agreement is true and correct as in all material respects of such final Closing. 
  

 -6- 

 (d) You shall have received, dated as of the final Closing, from the Secretary of the
Company a certificate of incumbency certifying the names, titles and signatures of the officers authorized to execute the resolutions of the Board of Directors of the Company authorizing and approving the execution, delivery and performance of this
Agreement, a copy of such resolutions to be attached to such certificate, certifying such resolutions and certifying that the Articles of Incorporation of the Company and the Bylaws of the Company have been validly adopted and have not been amended
or modified. 
 (e) You shall receive such other additional letters and certificates as may be reasonably requested by you and
by your counsel. 
 Subject to the foregoing, all such opinions, certificates, letters and documents will be in compliance
with the provisions hereof only if they are satisfactory to you and your counsel in your reasonable judgment. The Company will furnish you with such conformed copies of such opinions, certificates, letters and documents as you shall reasonably
request. 
 6. Conditions to the Company’s Obligations. The obligation of the Company to issue and deliver the Securities
shall be subject to the accuracy, at the date hereof and at all times thereafter up to and including the final Closing, of your representations and warranties contained herein, the performance by you of your obligations hereunder, and to the receipt
by the Company on the final Closing a certificate from one of your officers that your representations and warranties in this Agreement are true and correct, and you have complied with all the agreements and satisfied all of the conditions on your
part to be performed or satisfied at or prior to the final Closing. 
 7. Indemnification. 
 (a) The Company agrees to indemnify and hold harmless you, each of your officers, directors, employees and agents and each person, if any,
who controls you within the meaning of the 1933 Act, the 1934 Act or applicable state securities laws (collectively referred to as “indemnified persons”), against losses, claims, damages or liabilities, joint or several, to which you or
such indemnified persons may become subject under the 1933 Act, the 1934 Act, applicable state securities law or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any
untrue statement or alleged untrue statement of any material fact contained in the Blue Sky Applications or any amendment or supplement thereto, or arise out of or are based upon the omission or alleged omission to state therein a material fact
required to be stated therein or necessary to make the statements therein not misleading or out of any failure of the Company to have obtained or maintained an exemption from registration of the Securities under the securities laws of any Designated
State, other than untrue statements or omissions made in reliance upon and in conformity with the information furnished to the Company in writing by you or on your behalf specifically for use in the preparation of the Blue Sky Applications and
agrees to reimburse you and each indemnified person for any reasonable legal or other expenses reasonably incurred by you or such indemnified person in connection with investigating or defending any such loss, claim, damage, liability or action.
This indemnity agreement will be in addition to any liability that the Company may otherwise have. 
  

 -7- 

 (b) You will indemnify and hold harmless the Company, each of its officers, directors,
employees and agents and each person, if any, who controls the Company within the meaning of the 1933 Act, the 1934 Act or applicable state securities laws (collectively referred to as “Company Indemnified Persons”), against any losses,
claims, damages or liabilities, joint or several, to which the Company, or such Company Indemnified Persons may become subject under the 1933 Act, the 1934 Act, applicable state securities law or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereof) arise out of or are based upon any untrue or alleged untrue statement of any material fact contained in the Blue Sky Applications or any amendment or supplement thereto or arise out of or are based upon
the omission or the alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, in each case to the extent, but only to the extent, that such untrue statement or alleged
untrue statement or omission or alleged omission was made in the Blue Sky Applications, or such amendment or such supplement, in reliance upon and in conformity with information furnished to the Company in writing by the indemnifying party or on the
indemnifying party’s behalf specifically for use in the preparation thereof; and will reimburse any legal or other expense reasonably incurred by the Company or any such Company Indemnified Person in connection with investigation or defending
any such loss, claim, damage, liability or action. This indemnity agreement will be in addition to any liability that you may otherwise have. 
 (c) Promptly after receipt by an indemnified party, whether an indemnified person or a Company Indemnified Person, under this paragraph 7 of notice of the commencement of any action, such indemnified party will, if a
claim in respect thereof is to be made against an indemnifying party under this paragraph 7, notify the indemnifying party of the commencement thereof and the failure to notify the indemnifying party will relieve it from any liability under this
paragraph 7 if the failure to so notify materially prejudices the indemnifying party’s defense of such claim; but omission to notify the indemnifying party will not relieve it from any liability which it may have to any indemnified party
otherwise than under this paragraph 7. Upon the receipt of such notice, the indemnifying party shall assume the defense thereof, including the employment of counsel reasonably satisfactory to the indemnified party and payment of expenses. The
indemnifying party shall not be liable for any settlement of any such action effected without its written consent. 
 (d) In
the event you use the services of Participating Dealers as provided in Section 3(b), each such Participating Dealer and its officers, directors, employees, agents, attorneys and controlling persons shall be entitled to indemnification under
this Section 7 to the same extent as you and your indemnified persons, the effectiveness of any agreement into which either of you enters with any such Participating Dealer being specifically conditioned upon compliance with this Section.

 (e) If recovery is not available under the foregoing indemnification provisions of this Section for any reason other than
as specified therein, the parties entitled to indemnification by the terms thereof shall be entitled to contribution. In determining the amount of contribution to which the respective parties are entitled, there shall be considered the relative
benefits received by each party from the offering of the Securities (taking into account the relationship between the net proceeds of the offering of the Securities to the Company and the placement fee received by you), the parties’ relative
knowledge and access to information concerning the matter with respect to which the claim was asserted, the opportunity to correct and prevent any statement or omission, and any other equitable considerations appropriate under the circumstances. The
Company and you agree that it would not be 

  

 -8- 

 
equitable if the amount of such contribution were determined by pro rata or per capita allocation (even if you and the Participating Dealers were treated as
one entity for such purpose). 
 8. Representations and Agreements to Survive Delivery. All representations, warranties and
agreements of the Company and yourself herein or in certificates delivered pursuant hereto, and the indemnity agreements of the Company and you contained in paragraph 7 hereof, shall remain operative and in full force and effect regardless of any
investigation or statement as to the results thereof made by or on behalf of yourselves or any controlling person, or by or on behalf of the Company or any of its officers, directors, agents, employees, attorneys or any controlling persons, as the
case may be, and shall survive the termination of this Agreement, in each case, for a period of eighteen (18) months from the date hereof. 
 9. Effective Date of this Agreement and Termination. 
 (a) This Agreement shall become effective upon
its execution by each party hereto, and will continue until termination of the Offering Period, unless otherwise terminated as provided below. 
 (b) You shall have the right to terminate this Agreement at any time prior to the termination of the offering contemplated herein if any domestic or international event or act or occurrence has, in your reasonable
judgment, materially disrupted or will in the immediate future materially disrupt the nation’s securities markets, or if trading on the OTC Bulletin Board shall have been suspended, or if a banking moratorium has been declared by the State of
Arizona or the State of New York, or if the Company shall have sustained material loss by fire, flood, accident, hurricane, earthquake or other calamity which, regardless of whether said loss shall have been insured, will, in your reasonable
judgment, make it inadvisable to proceed with the offering or delivery of the Securities. If you elect to terminate this Agreement as provided in this paragraph, you shall promptly notify the Company by telephone or telegram, confirmed by letter.

 (c) This Agreement shall automatically terminate if you fail to continue to be registered and licensed as a broker-dealer
in good standing with the National Association of Securities Dealers, Inc. or to be duly qualified or registered as a broker-dealer in any state in which you have offered the Company’s Securities. 
 10. Notices. All notices, requests, demands and other communications under this Agreement shall be in writing and shall be deemed to have
been duly given on the date of delivery if delivered personally or sent by overnight courier, with acknowledgment of receipt, to the party to whom notice is to be given, or on the fifth day after mailing if mailed to the party to whom notice is to
be given, by registered or certified mail, return receipt requested, postage prepaid and properly addressed as follows: if to you, at the address of your principal office as shown in this Agreement; and if to the Company, at its principal office.
Any party may change its address for purposes of this paragraph by giving the other party written notice of the new address in the manner set forth above. 
 11. Parties. This Agreement shall inure to the benefit of and be binding upon you, the Company and your and its respective successors and assigns. Nothing expressed or mentioned in this Agreement is
intended or shall be construed to give any person or corporation, other than the parties hereto and their respective successors and assigns and the controlling persons, officers, directors, 

  

 -9- 

 
employees, agents and attorneys of the parties, any legal or equitable right, remedy or claim under or in respect of this Agreement or any provision herein
contained; this Agreement and all conditions and provisions hereof being intended to be and being for the sole and exclusive benefit of the parties hereto and their respective successors and assigns and said controlling persons, officers, directors,
employees, agents and attorneys, and for the benefit of no other person or corporation. No Purchaser of any of the Securities shall be construed as a successor or assign by reason of such purchase. No subrogee of a party shall be entitled to
benefits hereunder. 
 12. Attorneys’ Fees. If any action is necessary to enforce or interpret the terms of this
Agreement, the prevailing party shall be entitled to reasonable attorneys’ fees and costs, in addition to any other relief to which he is or may be entitled. This provision shall be construed as applicable to the entire agreement. 

13. Time of Essence. Time shall be of the essence of this Agreement. 
 14. Construction. This Agreement shall be construed in accordance with the internal laws of the State of Arizona. 
 15. Execution. This Agreement may be executed in any number of counterparts each of which taken together shall constitute one and the same
instrument. 
 16. Entire Agreement. This Agreement constitutes the entire understanding between the parties with respect to
the subject matter hereof. This Agreement can only be modified, including any extension of the Offering Period, by a written agreement duly signed by persons authorized to sign agreements on behalf of the respective parties. 
 17. Interpretation. No provision of this Agreement will be interpreted in favor of, or against, any of the parties hereto by reason
of the extent to which any such party or its counsel participating in the drafting thereof or by reason of the extent to which any such provision is inconsistent with any prior draft hereof or thereof. 
  

 -10- 

 If the foregoing is in accordance with your understanding, please sign below and return to us a counterpart hereof, and
upon your acceptance hereof, this letter and the acceptance hereof shall constitute a binding agreement between you and the Company. 
  

			
	Very truly yours,
	
	OPTICAL SENSORS INCORPORATED
		
	By:	 	/s/ Paulita LaPlante
		 	Paulita LaPlante - President and CEO

 Accepted and agreed to this 6th 
 day of February, 2006, by: 
  

			
	FLEMING SECURITIES, INC.
		
	By:	 	/s/ Hayden R. Fleming
		 	Hayden R. Fleming, President

  

 -11- 

 EXHIBIT A 
 Form of Note and Warrant Purchase Agreement 
 [attached] 
  

 -12- 

 EXHIBIT B 
 Form of Placement Agent’s Warrant 
 [attached] 
  

 -13- 

 SCHEDULE 2(b) 
 DESIGNATED STATES 
 ARIZONA 
 CALIFORNIA 
 FLORIDA 
 MINNESOTA 
 OKLAHOMA 
  

 -14-

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