Document:

Exhibit 10.24

    Exhibit
      10.24

     

    EMPLOYMENT
      AGREEMENT

    

    

    This
      Agreement is made and entered into as of the 28th day of February, 2007, by
      and
      between SOUTHERN CONNECTICUT BANCORP., INC. and it subsidiary, THE BANK OF
      SOUTHERN CONNECTICUT, having its principal place of business in New Haven,
      Connecticut (hereinafter referred to as the “Employer”) and Michael M. Ciaburri,
      residing in Guilford, Connecticut (hereinafter referred to as the
“Employee”).

     

    W
      I T N E
      S S E T H

     

    WHEREAS,
      the Employee is experienced in the operation and management of a bank;
      and

     

    WHEREAS,
      the Employer desires to secure the services of the Employee on the terms herein
      set forth; and

     

    WHEREAS,
      the Employee is willing to enter into this Agreement on said terms;

     

    NOW,
      THEREFORE, in consideration of the promises and the mutual covenants herein
      contained, the parties hereto, intending to be legally bound, do hereby mutually
      covenant and agree as follows:

     

    1.
      Employment:
      The
      Employer agrees to employ the Employee as President and Chief Executive Officer
      of the Employer beginning July 1, 2007, for the Term of Employment as defined
      in
      Section 2, and the Employee accepts said employment and agrees to serve in
      such
      capacity upon the terms and conditions hereinafter set forth. Between March
      1,
      2007 and June 30, 2007 Employee shall be President and Chief Operating Officer.
      

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    2.
      Term
      of Employment:
      The
      Term of Employment shall commence on March 1, 2007, and shall end on December
      31, 2009. The Term of Employment shall be extended through December 31, 2010,
      unless the Employer notifies the Employee in writing of its desire to terminate
      the Agreement before December 31, 2008 or unless by mutual notification. If
      a
“Business Combination” as defined in Paragraph 5(b) occurs, the Term of
      Employment shall be automatically extended to December 31, 2010. Notwithstanding
      the foregoing, the term of Employment shall end if sooner terminated as provided
      in Section 5.

     

    3.
      Duties
      of Employment:
      The
      Employee agrees that, so long as he shall be employed by the Employer, the
      Employee shall perform all duties assigned or delegated to him under the by-laws
      of the Employer and/or from time to time by the independent Board of Directors
      of the Employer consistent with his position as President and Chief Operating
      Officer from March 1, 2007, or President and Chief Executive Officer of the
      Employer from July 1, 2007 through December 31, 2009 or 2010 if the option
      is
      exercised. The Employee shall be responsible for and perform all acts and
      services customarily associated with such position including the overall
      management of the Employer, devoting his full time, best efforts and attention
      to the advancement of the interests and business of the Employer. The Employee
      understands that the independent Board of Directors may establish an Executive
      Committee which will provide advice and/or guidance, but further understands
      that any adverse employment decision, up to and including termination, may
      only
      occur by vote of the full Board. The Employee shall also serve as a member
      of
      the Board of Directors of the Employer. The Employee shall not be engaged in
      or
      concerned with any other duties or pursuits which are competitive or
      inconsistent with the interests and business of the Employer. It is understood
      that the Employee may have other 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    directorships
      which may, from time to time, require minor portions of his time but which
      shall
      not interfere or be inconsistent with his duties hereunder; PROVIDED, HOWEVER,
      that each such directorship shall be subject to the approval of the independent
      Board of Directors of the Employer, which approval shall to be unreasonably
      withheld.

     

    4.
      Compensation:
      During
      the Term of Employment, the Employer shall pay to the Employee as compensation
      for the services to be rendered by him hereunder the following:

     

    (a)
      The
      Employer shall pay to the Employee a base salary at the rate of ONE HUNDRED
      SEVENTY-ONE THOUSAND FIVE HUNDRED DOLLARS ($171,500.00) from March 1, 2007
      to
      June 30, 2007, and ONE HUNDRED EIGHTY-ONE THOUSAND DOLLARS ($181,000.00) from
      July 1, 2007 to December 31, 2007, both pro-rated. The Employer shall pay to
      the
      Employee a base salary of ONE HUNDRED NINETY-THREE THOUSAND DOLLARS
      ($193,000.00) for the calendar year 2008 and TWO HUNDRED TEN THOUSAND DOLLARS
      ($210,000.00) for the calendar year 2009. The Employer shall pay to the Employee
      a base salary of TWO HUNDRED TWENTY THOUSAND DOLLARS ($220,000.00), if the
      Agreement is extended for the fourth year. Such compensation shall be payable
      in
      accordance with normal payroll practices of the Employer. 

     

    (b)
      In
      addition to the base salary set forth in (a) above, the Employee shall be
      entitled to salary increases and other such merit bonuses reflecting job
      performance achievements, and/or such other form(s) of merit compensation,
      as
      the independent Board of Directors of the Employer may in its discretion
      determine at the end of each calendar year(s) during such Term of Employment.
      The independent Board of Directors may establish one or more individual or
      corporate goals for each such year, the achievement of which may be made a
      condition to the 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    payment
      of such additional compensation to the Employee. Such goals shall be
      communicated to the Employee and shall be stated to be a condition to the
      payment of such additional compensation to the Employee. 

     

    (c)
      The
      Employee shall be entitled to receive SEVENTY-FIVE HUNDRED (7,500) SHARES of
      restricted stock, vesting 40% on December 31, 2007; 30% on December 31, 2008;
      and 30% on December 31, 2009.

     

    (d)
      At
      the end of each month during the term of this Agreement, the Employer shall
      reimburse the Employee for reasonable business related travel and entertainment
      expenses, bank related education, other ordinary business expenses and
      convention expenses incurred by Employee in the course of performing his duties
      for the Employer hereunder.

     

    (e)
      The
      Employer shall provide group life insurance, comprehensive health insurance
      and
      Major Medical coverage for the Employee comparable to such coverage provided
      for
      officers of the Employer generally. The Employee shall be eligible to
      participate in any profit sharing plan or Section 401(k) plan of the Employer
      in
      accordance with the terms thereof.

     

    (f)
      The
      Employer shall pay for the lease payments not in excess of SIX HUNDRED FIFTY
      DOLLARS ($650.00) per month until the remaining term of this Agreement, plus
      insurance and personal property tax on the Employee’s car and all other
      reasonable car expenses including gasoline, related to the business activities
      of the Employer. 

     

    (g)
      The
      Employer shall pay the monthly membership fee of the Employee at the Quinnipiack
      Club in New Haven, Connecticut.

     

    (h)
      The
      Employer shall pay all cell phone, Blackberry or similar wireless device
      expenses. 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    5.
      Termination
      of Employment.

     

    (a)
      The
      Employer shall have the right to terminate this Agreement upon the occurrence
      of
      any one of the following events:

    

    
      	 	
              (1)

            	
              The
                Employee’s conviction of a felony or any other crime involving the
                Employee’s morals or honesty.

            

    

    

    
      	 	
              (2)

            	
              Dereliction
                in the performance of the Employee’s duties hereunder.
                

            

    

    

    
      	 	
              (3)

            	
              Failure
                of the Employee to adhere to the policies set forth by the Board
                of
                Directors of the Employer.

            

    

    

    
      	 	
              (4)

            	
              Failure
                of the Employee to qualify for a
                bond.

            

    

    

    
      	 	
              (5)

            	
              Death,
                total disability, or drug abuse or alcoholism, which prevents the
                Employee
                from performing his functions under this
                Agreement.

            

    

     

    (b)
      In
      the event the Employee’s position as President and Chief Operating Officer or
      President and Chief Executive Officer shall end or the Employee’s
      responsibilities shall be significantly reduced as a result of a “Business
      Combination”, (1) the entity remaining after the “Business Combination” occurs
      shall pay the Employee a lump sum payment of an amount equal to three times
      the
      total of his then current base annual compensation plus the amount of his bonus
      for the prior calendar year. Such payment shall be in addition to any
      compensation otherwise due the Employee under the following subparagraph (c)
      or
      any other provision of this Agreement; and (2) all of the Employee’s stock
      options and restricted stock previously granted to the Employee by the Employer
      shall immediately become fully vested. As a condition of the closing or
      acquisition of stock resulting in a “Business Combination” the entity remaining
      shall agree in writing to honor and comply with this paragraph 5(b). A “Business
      Combination” for purposes 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    of
      this
      Agreement shall be defined as the sale by the Employer of all or substantially
      all of its assets, the acquisition of fifty-one (51%) of the Employer’s
      outstanding voting stock, or the merger of the Employer with another corporation
      as a result of which the Employer is not the surviving entity.

     

    (c)
      In
      the event of a termination of employment of the Employee by the Employer
      (including a termination under subparagraph 5(b) above) other than a termination
      stated in subparagraph 5(a), the Employee shall be entitled to his compensation
      benefits under subparagraph 4(a) of this Agreement for the balance of the
      unexpired term of employment as such term exists immediately before such
      termination to be paid at the Employee’s option in a lump sum or ratably over
      the balance of said term. 

     

    6.
      Vacation.
      During
      the Term of Employment, the Employee shall be entitled each year to a vacation
      of at least three (3) weeks, and during such time his compensation shall be
      paid
      in full. The period of vacation selected each year shall be with approval of
      the
      Employer. Vacation time which is not taken by the Employee in any year may
      not
      be accumulated or carried over from year to year. The Employee shall be entitled
      to be paid for any accrued vacation time after termination of the Employee’s
      employment hereunder for the year of the Employee’s termination. Normal bank
      holidays, seminars or convention attendance, teaching at banking schools or
      speaking engagements shall not be considered as part of the Employee’s vacation
      period. The Employee shall comply with any banking regulations relating to
      the
      scheduling of vacation time.

     

    7.
      Incentive
      Stock Options.
      No
      further incentive stock options (“ISO’s”) within the meaning of Section 422 of
      the Internal Revenue Code of 1986, as amended, to purchase common 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    stock
      in
      Southern Connecticut Bancorp, Inc. under the stock option plan adopted for
      employees of the Employer have been promised the Employee. Any further grant
      of
      stock options shall be in the sole and absolute discretion of the Board of
      Directors of the Employer based upon criteria to be established by the Board
      of
      Directors.

     

    8.
      Notices.
      All
      notices under this Agreement shall be in writing and shall be deemed effective
      when delivered in person to the Employee or to the Secretary of the Employer
      and
      the Chairman of the Compensation Committee, or if mailed, postage prepaid,
      registered or certified mail, addressed, in the case of the Employee, to his
      last known address as carried on the personnel records of the Employer, and,
      in
      the case of the Employer, to the corporate headquarters, attention of the
      Secretary and to the Chairman of the Compensation Committee at his place of
      business, or to such other address as the party to be notified may specify
      by
      notice to the other party. 

     

    9.
      Successors
      and Assigns.
      The
      Rights and obligations of the Employer under this Agreement shall inure to
      the
      benefit of and shall be binding (except as to the positions and duties of the
      Employee) upon the successors and assigns of the Employer, including, without
      limitation, any corporation, individual or other person or entity which may
      acquire all or substantially all of the assets and business of Employer, or
      any
      division of the Employer for which the Employee has primary management
      responsibility, or with or into which the Employer may be consolidated or merged
      or any surviving corporation in any merger involving the
      Employer.

    10.
      Arbitration.
      Any
      dispute which may arise between the parties hereto shall be submitted to binding
      arbitration in New Haven, Connecticut, in accordance with the Employment Rules
      of the American Arbitration Association provided that any such dispute shall
      first be 

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    submitted
      to the Employer’s Board of Directors in an effort to resolve such dispute
      without resort to arbitration. A single arbitrator shall decide each dispute.
      In
      any dispute which is submitted to arbitration, the arbitration costs and
      attorney’s fees of the prevailing party shall be paid by the other
      party.

     

    11.
      Severability.
      If any
      of the terms or conditions of this Agreement shall be declared void or
      unenforceable by any court or administrative body or competent jurisdiction,
      such term of condition shall be deemed severable from the remainder of this
      Agreement, and the other terms and conditions of this Agreement shall continue
      to be valid and enforceable.

     

    12.
      Construction.
      This
      Agreement shall be construed under the laws of the State of Connecticut. Words
      of the masculine gender mean and include correlative words of the feminine
      gender. Section headings are for convenience only and shall be considered a
      part
      of the terms and provisions of the Agreement.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF, Employer has caused this Agreement to be executed by a duly
      authorized officer and Employee has hereunto set his hand, this 28th day of
      February, 2007.

    

    
      	
               

            	 	 	 	 	
              EMPLOYER:

            

    

    SOUTHERN
      CONNECTICUT BANCORP, INC.

    THE
      BANK
      OF SOUTHERN CONNECTICUT, INC.

    

    
      	 	 	 	 	 	
              BY: 
                /s/ CARL BORRELLI

            

    

    CARL
      BORRELLI

    Chairman,
      Compensation Commisttee

    

    

    
      	 	 	 	 	 	
              EMPLOYEE:

            

    

     

    

    
      	 	 	 	 	 	
              /s/
                MICHAEL M. CIABURRI

            

    

    MICHAEL
      M. CIABURRIAutoCoded Document

Exhibit 10.2

SECURITIES
PURCHASE AGREEMENT

     THIS
SECURITIES PURCHASE AGREEMENT (this “Agreement”), dated
as of March 22, 2007, by and among DMI BIOSCIENCES, INC., a Colorado
corporation (the “Company”), and COGENCO INTERNATIONAL, INC.
(the “Buyer”). Each of the foregoing is a “Party” and
collectively they are the “Parties.”

RECITALS

     A.   
The Company and the Buyer are executing and delivering this Agreement in
reliance upon an exemption from securities registration pursuant to Section 4(2)
and/or Rule 506 of Regulation D (“Regulation D”) as
promulgated by the U.S. Securities and Exchange Commission (the
“SEC”) under the Securities Act of 1933, as amended (the
“Securities Act”);

     B.   
The Buyer has invested  $100,000 to purchase  100,000  shares of the Company’s
common stock (the  “Common Stock”) for a price of $1.00 per share.  This
Agreement confirms that transaction.

     NOW,
THEREFORE, in consideration of the mutual covenants and other agreements
contained in this Agreement the Company and the Buyer hereby agree as follows:

	 	     1.
PURCHASE AND SALE OF COMMON STOCK.

	 	     (a)
Purchase of Common  Stock.  The Buyer has invested  $100,000 to purchase  100,000  shares
of the Company’s  common stock (the “Common Stock”) for a price of $1.00
per share.  The Company acknowledges receipt of $100,000.

	 	     (b)
Closing Date. The Closing for each purchase will occur as the Buyer pays  funds to
the Company.

	 	     (c)
Adjustment. To the extent that the Company completes a stock split,  reverse stock
split, or stock dividend, the number of shares to be purchased by  the Buyer and the
purchase price to be paid by the Buyer will be appropriately  adjusted.

	 	     2.
BUYER’S REPRESENTATIONS AND WARRANTIES.

     The
Buyer represents and warrants that:

	 	     (a)
Investment Purpose. The Buyer has acquired the Common Stock for its own  account
for investment only and not with a view towards, or for resale in  connection with, the
public sale or distribution thereof, except pursuant to  sales registered or exempted
under the Securities Act; provided, however, that  by making the representations herein,
the Buyer reserves the right to dispose of  the Common Stock at any time in accordance
with all applicable legal  requirements.

	 	     (b)
Reliance on Exemptions. The Buyer understands that the Common Stock was  offered
and sold to it in reliance on specific exemptions from the registration  requirements of
United States federal and state securities laws and that the  Company is relying in part
upon the truth and accuracy of, and the Buyer’s  compliance with, the
representations, warranties, agreements, acknowledgments  and understandings of the Buyer
set forth herein in order to determine the  availability of such exemptions and the
eligibility of the Buyer to acquire such  securities.

	 	     (c)
Information. The Buyer and its advisors (and his or, its counsel), if  any, have
been furnished with all materials relating to the business, finances  and operations of
the Company and information he deemed material to making an  informed investment decision
regarding his purchase of the Common Stock which  have been requested by the Buyer. The
Buyer and its advisors, if any, have been  afforded the opportunity to ask questions of
the Company and its management.  Neither such inquiries nor any other due diligence
investigations conducted by  the Buyer or its advisors, if any, or its representatives
shall modify, amend or  affect the Buyer’s right to rely on the Company’s
representations and  warranties contained in Section 3 below. The Buyer understands that
its  investment in the Common Stock involves a high degree of risk. The Buyer is in a
position regarding the Company, which, based upon employment, family  relationship or
economic bargaining power, enabled and enables the Buyer to  obtain information from the
Company in order to evaluate the merits and risks of  this investment. The Buyer has
sought such accounting, legal and tax advice, as  it has considered necessary to make an
informed investment decision with respect  to its acquisition of the Common Stock.

	 	     (d)
Transfer or Resale. The Buyer understands that: (i) the Common Stock have  not
been, and are not being, registered under the Securities Act or any state  securities
laws, and may not be offered for sale, sold, assigned or transferred  unless (A)
subsequently registered thereunder, or (B) the Buyer shall have  delivered to the Company
an opinion of counsel, in a generally acceptable form,  to the effect that such
securities to be sold, assigned or transferred may be  sold, assigned or transferred
pursuant to an exemption from such registration  requirements; and (ii) neither the
Company nor any other person is under any  obligation to register such securities under
the Securities Act or any state  securities laws or to comply with the terms and
conditions of any exemption  thereunder. The Company reserves the right to place stop
transfer instructions  against the shares and certificates for the Common Stock.

	 	     (e)
Legends. The Buyer understands that the certificates or other instruments
representing the Common Stock shall bear a restrictive legend in substantially  the
following form (and a stop transfer order may be placed against transfer of  such stock
certificates):

	 	THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES
ACT OF 1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES HAVE BEEN
ACQUIRED SOLELY FOR INVESTMENT PURPOSES AND NOT WITH A VIEW TOWARD RESALE AND MAY NOT BE
OFFERED FOR SALE, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE
REGISTRATION STATEMENT FOR THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR
APPLICABLE STATE SECURITIES LAWS, OR AN OPINION OF COUNSEL, IN A GENERALLY ACCEPTABLE
FORM, THAT REGISTRATION IS NOT REQUIRED UNDER SAID ACT OR APPLICABLE STATE SECURITIES
LAWS. 

2 

	 	     (f)
Authorization, Enforcement. This Agreement has been duly and validly  authorized,
executed and delivered on behalf of the Buyer and is a valid and  binding agreement of
the Buyer enforceable in accordance with its terms, except  as such enforceability may be
limited by general principles of equity or  applicable bankruptcy, insolvency,
reorganization, moratorium, liquidation and  other similar laws relating to, or affecting
generally, the enforcement of  applicable creditors’ rights and remedies.

	 	     (g)
Good Funds. All purchase payments transferred or that may be transferred  to the
Company pursuant to this Agreement originated directly from a bank or  brokerage account
in the name of the Buyer located within the United States of  America or another
Compliant Jurisdiction as defined in by the Financial Action  Task Force on Money
Laundering (found at http://www.oecd.org/fatf/).

	 	     (h)
No Legal Advice From the Company. The Buyer acknowledges, that it had the
opportunity to review this Agreement and the transactions contemplated by this  Agreement
with his or its own legal counsel and investment and tax advisors. The  Buyer is relying
solely on such counsel and advisors and not on any statements  or representations of the
Company or any of its representatives or agents for  legal, tax or investment advice with
respect to this investment, the  transactions contemplated by this Agreement or the
securities laws of any  jurisdiction.

     3.
REPRESENTATIONS AND WARRANTIES OF THE COMPANY.

     The
Company represents and warrants as of the date hereof to the Buyer that, except
as disclosed in the attached schedules:

	 	     (a)
Organization and Qualification. The Company and its subsidiaries are  corporations
duly organized and validly existing in good standing under the laws  of the jurisdiction
in which they are incorporated, and have the requisite  corporate power to own their
properties and to carry on their business as now  being conducted. Each of the Company
and its subsidiaries is duly qualified as a  foreign corporation to do business and is in
good standing in every jurisdiction  in which the nature of the business conducted by it
makes such qualification  necessary, except to the extent that the failure to be so
qualified or be in  good standing would not have a material adverse effect on the Company
and its  subsidiaries taken as a whole.

	 	     (b)
Authorization, Enforcement, Compliance with Other Instruments.  (i) The
Company has the requisite corporate power and authority to enter  into and perform this
Agreement and any related agreements (collectively the  “Transaction Documents”)
and to issue the Common Stock in  accordance with the terms hereof and thereof, (ii) the
execution and delivery of  this Agreement by the Company and the completion by it of the
transactions  contemplated hereby, including, without limitation, the issuance of the
Common  Stock have been duly authorized by the Company’s Board of Directors and no
further consent or authorization is required by the Company, its Board of  Directors or
its stockholders, (iii) this Agreement has been duly executed and  delivered by the
Company, (iv) this Agreement constitutes the valid and binding  obligations of the
Company enforceable against the Company in accordance with  its terms, except as such
enforceability may be limited by general principles of  equity or applicable bankruptcy,
insolvency, reorganization, moratorium,  liquidation or similar laws relating to, or
affecting generally, the enforcement  of creditors’ rights and remedies.

3 

	 	     (c)
Issuance of Securities. The Common Stock has been duly authorized and  reserved
for issuance and is duly issued, fully paid and nonassessable.

	 	     (d)
No Conflicts.

	(1) 	 	The
execution, delivery and performance of this Agreement by the Company and the  completion
by the Company of the transactions contemplated hereby will not (i)  result in a
violation of the Articles of Incorporation, any certificate of  designations of any
outstanding series of preferred stock of the Company or the  By-laws or (ii) conflict
with or constitute a default (or an event which with  notice or lapse of time or both
would become a default) under, or give to others  any rights of termination, amendment,
acceleration or cancellation of, any  agreement, indenture or instrument to which the
Company or any of its  subsidiaries is a party, or result in a violation of any law,
rule, regulation,  order, judgment or decree applicable to the Company or any of its
subsidiaries  or by which any property or asset of the Company or any of its subsidiaries
is  bound or affected. 

	(2) 	 	 Neither
the Company nor its subsidiaries is in violation of any term of or in  default under its
Articles of Incorporation or By-laws or their organizational  charter or by-laws,
respectively, or any material contract, agreement, mortgage,  indebtedness, indenture,
instrument, judgment, decree or order or any statute,  rule or regulation applicable to
the Company or its subsidiaries. 

	(3) 	 	 The
business of the Company and its subsidiaries is not being conducted, and  shall not be
conducted in violation of any material law, ordinance, or  regulation of any governmental
entity. 

	(4) 	 	 Except
as specifically contemplated by this Agreement and as required under the  Securities Act
and any applicable state securities laws, the Company is not  required to obtain any
consent, authorization or order of, or make any filing or  registration with, any court
or governmental agency in order for it to execute,  deliver or perform any of its
obligations under or contemplated by this  Agreement in accordance with the terms hereof.
All consents, authorizations,  orders, filings and registrations which the Company is
required to obtain  pursuant to the preceding sentence have been obtained or effected on
or prior to  the date hereof. Except as contemplated by this Agreement, the Company and
its  subsidiaries are unaware of any facts or circumstance, which might give rise to  any
of the foregoing. 

	 	     (e)
Accuracy of Information. The information about the Company that the  Company has
provided to the Buyer is accurate and complete in all material  respects. Such
information does not include any untrue statements of material  fact, nor do they omit to
state any material fact required to be stated therein  necessary to make the statements
made, in light of the circumstances under which  they were made, not misleading.

4 

	 	     (f)
Absence of Litigation. There is no action, suit, proceeding, inquiry or
investigation before or by any court, public board, government agency,  self-regulatory
organization or body known to be pending against or affecting  the Company, the Common
Stock or any of the Company’s subsidiaries, wherein  an unfavorable decision, ruling
or finding would (i) have a material adverse  effect on the transactions contemplated
hereby (ii) adversely affect the  validity or enforceability of, or the authority or
ability of the Company to  perform its obligations under, this Agreement or any of the
documents  contemplated herein, or (iii) have a material adverse effect on the business,
operations, properties, financial condition or results of operations of the  Company and
its subsidiaries taken as a whole.

	 	     (g)
No General Solicitation. Neither the Company, nor any of its affiliates,  nor any
person acting on its or their behalf, has engaged in any form of general  solicitation or
general advertising (within the meaning of Regulation D under  the Securities Act) in
connection with the offer or sale of the Common Stock.

	 	     (h)
No Integrated Offering. Neither the Company, nor any of its affiliates,  nor any
person acting on its or their behalf has, directly or indirectly, made  any offers or
sales of any security or solicited any offers to buy any security,  under circumstances
that would require registration of the Common Stock under  the Securities Act or cause
this offering of the Common Stock to be integrated  with prior offerings by the Company
for purposes of the Securities Act where  such integration would result in an exemption
not being available for the  transactions contemplated herein.

	 	     (i)
Employee Relations. Neither the Company nor any of its subsidiaries is  involved
in any labor dispute nor, to the knowledge of the Company or any of its  subsidiaries, is
any such dispute threatened. None of the Company’s or its  subsidiaries’ employees
is a member of a union and the Company and its  subsidiaries believe that their relations
with their employees are good.

	 	     (j)
Intellectual Property Rights. The Company and its subsidiaries own or  possess
adequate rights or licenses to use all trademarks, trade names, service  marks, service
mark registrations, service names, patents, patent rights,  copyrights, inventions,
licenses, approvals, governmental authorizations, trade  secrets and rights necessary to
conduct their respective businesses as now  conducted. The Company and its subsidiaries
do not have any knowledge of any  infringement by the Company or its subsidiaries of
trademark, trade name rights,  patents, patent rights, copyrights, inventions, licenses,
service names, service  marks, service mark registrations, trade secret or other similar
rights of  others, and, to the knowledge of the Company there is no claim, action or
proceeding being made or brought against, or to the Company’s knowledge,  being
threatened against, the Company or its subsidiaries regarding trademark,  trade name,
patents, patent rights, invention, copyright, license, service  names, service marks,
service mark registrations, trade secret or other  infringement; and the Company and its
subsidiaries are unaware of any facts or  circumstances which might give rise to any of
the foregoing.

5 

	 	     (k)
Environmental Laws. The Company and its subsidiaries are (i) in  compliance with
any and all applicable foreign, federal, state and local laws  and regulations relating
to the protection of human health and safety, the  environment or hazardous or toxic
substances or wastes, pollutants or  contaminants (“Environmental Laws”),
(ii) have received all  permits, licenses or other approvals required of them under
applicable  Environmental Laws to conduct their respective businesses and (iii) are in
compliance with all terms and conditions of any such permit, license or  approval.

	 	     (l)
Insurance. The Company and each of its subsidiaries are insured by  insurers of
recognized financial responsibility against such losses and risks  and in such amounts as
management of the Company believes to be prudent and  customary in the businesses in
which the Company and its subsidiaries are  engaged. Neither the Company nor any such
subsidiary has been refused any  insurance coverage sought or applied for and neither the
Company nor any such  subsidiary has any reason to believe that it will not be able to
renew its  existing insurance coverage as and when such coverage expires or to obtain
similar coverage from similar insurers as may be necessary to continue its  business at a
cost that would not materially and adversely affect the condition,  financial or
otherwise, or the earnings, business or operations of the Company  and its subsidiaries,
taken as a whole.

	 	     (m)
Regulatory Permits. The Company and its subsidiaries possess all material
certificates, authorizations and permits issued by the appropriate federal,  state or
foreign regulatory authorities necessary to conduct their respective  businesses, and
neither the Company nor any such subsidiary has received any  notice of proceedings
relating to the revocation or modification of any such  certificate, authorization or
permit.

	 	     (n)
Tax Status. The Company and each of its subsidiaries has made and filed  all
federal and state income and all other tax returns, reports and declarations  required by
any jurisdiction to which it is subject and (unless and only to the  extent that the
Company and each of its subsidiaries has set aside on its books  provisions reasonably
adequate for the payment of all unpaid and unreported  taxes) has paid all taxes and
other governmental assessments and charges that  are material in amount, shown or
determined to be due on such returns, reports  and declarations, except those being
contested in good faith and has set aside  on its books provision reasonably adequate for
the payment of all taxes for  periods subsequent to the periods to which such returns,
reports or declarations  apply. There are no unpaid taxes in any material amount claimed
to be due by the  taxing authority of any jurisdiction, and the officers of the Company
know of no  basis for any such claim.

     4.
GOVERNING LAW: MISCELLANEOUS.

	 	     (a)
Governing Law. This Agreement shall be governed by and interpreted in  accordance
with the laws of the State of Colorado without regard to the  principles of conflict of
laws. The parties further agree that any action  between them shall be heard in the
District Court of Arapahoe County, Colorado  for the adjudication of any civil action
asserted pursuant to this Paragraph.

	 	     (b)
Counterparts. This Agreement may be executed in two or more identical
counterparts, all of which shall be considered one and the same agreement and  shall
become effective when counterparts have been signed by each party and  delivered to the
other party. In the event any signature page is delivered by  facsimile transmission, the
party using such means of delivery shall cause four  additional original executed
signature pages to be physically delivered to the  other party within five days of the
execution and delivery hereof.

6 

	 	     (c)
Headings. The headings of this Agreement are for convenience of reference  and
shall not form part of, or affect the interpretation of, this Agreement.

	 	     (d)
Severability. If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not  affect
the validity or enforceability of the remainder of this Agreement in that  jurisdiction
or the validity or enforceability of any provision of this  Agreement in any other
jurisdiction.

	 	     (e)
Entire Agreement, Amendments. This Agreement supersedes all other prior  oral or
written agreements between the Buyer, the Company, their affiliates and  persons acting
on their behalf with respect to the matters discussed herein, and  this Agreement and the
instruments referenced herein contain the entire  understanding of the parties with
respect to the matters covered herein and  therein and, except as specifically set forth
herein or therein, neither the  Company nor any Buyer makes any representation, warranty,
covenant or  undertaking with respect to such matters. No provision of this Agreement may
be  waived or amended other than by an instrument in writing signed by the party to  be
charged with enforcement.

	 	     (f)
Notices. Any notices, consents, waivers, or other communications required  or
permitted to be given under the terms of this Agreement must be in writing  and will be
deemed to have been delivered (i) upon receipt, when delivered  personally; (ii) upon
confirmation of receipt, when sent by facsimile; (iii)  three days after being sent by
U.S. certified mail, return receipt requested, or  (iv) one day after deposit with a
nationally recognized overnight delivery  service, in each case properly addressed to the
party to receive the same. The  addresses and facsimile numbers for such communications
shall be:

			
	If to the Company, to:	 	DMI Biosciences, Inc.	 	 	 
	 					
		 	Aurora, CO	 		
	 					
		 	Attention: Bruce Miller, President	 		
		 	Telephone: (303)	 		
		 	Facsimile: (303)	 		
	 					
	If to the Buyer:	 	Cogenco International, Inc.	 		
		 	Attention: David W. Brenman, President	 		
		 	6400 South Fiddler’s Green Circle - Suite 1840	 		
		 	Greenwood Village, CO 80112	 		
		 	Tel:	 		
		 	Fax:	 		
	 					
	With a copy to:	 	Burns, Figa & Will, P.C.	 		
		 	6400 South Fiddler’s Green Circle – Suite 1000	 		
		 	Greenwood Village, CO 80111	 		
		 	Attention: Herrick K. Lidstone, Jr., Esq.	 		
		 	Telephone: (303) 796-2626	 		
		 	Facsimile:  (303) 796-2777	 		 
	 					

7 

	 	     (g)
Successors and Assigns. This Agreement shall be binding upon and inure to  the
benefit of the parties and their respective successors and assigns. Neither  the Company
nor any Buyer shall assign this Agreement or any rights or  obligations hereunder without
the prior written consent of the other party  hereto.

	 	     (h)
No Third Party Beneficiaries. This Agreement is intended for the benefit  of the
parties hereto and their respective permitted successors and assigns, and  is not for the
benefit of, nor may any provision hereof be enforced by, any  other person.

	 	     (i)Survival. The representations and warranties of the Company and the Buyer contained
in Sections 2 and 3, shall survive through December 31, 2009.

	 	     (j)
Publicity. The Company and the Buyer shall have the right to approve,  before
issuance any press release or any other public statement with respect to  the
transactions contemplated hereby made by any party; provided, however, that  the Company
shall be entitled, without the prior approval of the Buyer, to issue  any press release
or other public disclosure with respect to such transactions  required under applicable
securities or other laws or regulations (the Company  shall use its best efforts to
consult the Buyer in connection with any such  press release or other public disclosure
prior to its release and Buyer shall be  provided with a copy thereof upon release
thereof).

	 	     (k)
Further Assurances. Each party shall do and perform, or cause to be done  and
performed, all such further acts and things, and shall execute and deliver  all such
other agreements, certificates, instruments and documents, as the other  party may
reasonably request in order to carry out the intent and accomplish the  purposes of this
Agreement and the consummation of the transactions contemplated  hereby.

	 	     (l)
No Strict Construction. The language used in this Agreement will be  deemed to be
the language chosen by the parties to express their mutual intent,  and no rules of
strict construction will be applied against any party.

[REMAINDER
PAGE INTENTIONALLY LEFT BLANK]

8 

     IN
WITNESS WHEREOF, the Buyers and the Company have caused this
Securities Purchase Agreement to be duly executed on March 28, 2007, as of the
date first written above.

		
	BUYER	 	COMPANY:	 
	COGENCO INTERNATIONAL, INC	 	DMI BIOSCIENCES, INC.	 
	 			
	 			
	By:  /s/ David W. Brenman	 	By:  /s/ Bruce Miller	 
	 			
	David W. Brenman, President	 	Bruce Miller, President	 

9

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00120-of-00352.parquet"}]]