Document:

Services Agreement - Ocean Park Advisors, LLC

 Exhibit 10.6 
 SERVICES AGREEMENT 
 THIS SERVICES AGREEMENT (this “Agreement”) dated as of
September 20, 2006, is made by and between Diametrics Medical, Inc. (“DMED” and, together with its subsidiaries now or hereafter existing, the “Company”) and Ocean Park Advisors, LLC, a California limited
liability company (“OPA”). 
 RECITALS 
 WHEREAS, the Company is in the process of raising preferred equity financing (the “Financing”) for the purpose of acquiring Vanguard Synfuels, LLC (“Vanguard”), a producer of biodiesel fuel located
in Louisiana, and for working capital and growth capital purposes; 
 WHEREAS, the Company currently expects the closing of the Financing and
of its acquisition of Vanguard (collectively, the “Closing”) to occur in mid-September; and 
 WHEREAS, the prospective investors
for the Financing seek, and have conditioned their investment in the Company upon, the continuation of management services by the principals of OPA; the parties hereto desire to enter into this Agreement to set forth the basis on which, contingent
upon the occurrence of the Closing, OPA will perform management services for the Company, all as set forth more fully in this Agreement. 
 AGREEMENT 
 NOW, THEREFORE, in consideration of the premises and covenants set forth herein, and intending to be legally bound
hereby, the parties to this Agreement hereby agree as follows: 
 1. Effectiveness of the Agreement. This Agreement shall become
effective as of the date of the Closing (the “Closing Date”). 
 2. Engagement. The Company hereby engages OPA to perform
management services for the benefit of the Company on the terms and conditions set forth in this Agreement. The Company is hereby obtaining from OPA the services set forth on Schedule 1 (the “Management Services”). All
compensation for provision of the Management Services by OPA and the persons utilized by OPA to provide the Management Services shall be paid to OPA, and OPA shall indemnify the Company against any claims by any individual for unpaid services.

 3. Duties. 
 (a) The
provision of Management Services by OPA shall be subject to DMED’s Charter, Bylaws (including without limitation the provision that the business and affairs of DMED shall be managed by its Board of Directors (the “Board”)) and
other governing documents, including committee charters, as well as applicable laws and regulations, including the regulations of any securities exchange on which DMED’s 

 securities are listed or traded. For purposes of this Agreement, the Charter and Bylaws of DMED shall be deemed to mean
the Charter and Bylaws of DMED as they exist today and, after the merger of DMED into Nexoil, Inc., shall be deemed to mean the Charter and Bylaws of DMED as they shall exist thereafter from time to time (including any future amendments).

 (b) The parties acknowledge that W. Bruce Comer III (“Comer”) has previously been designated to serve as the Chief Executive
Officer of DMED and Heng Chuk (“Chuk”) has previously been designated to serve as the Chief Financial Officer of DMED and that both serve in those capacities as of the date of this Agreement. Except as expressly set forth in this
Agreement, DMED shall take all necessary actions so that Comer and Chuk will continue to serve in those capacities at DMED throughout the Term (as defined below) of this Agreement, including by adopting all necessary resolutions of the Board.
Notwithstanding the preceding sentence, DMED shall have the right to remove Comer or Chuk from any position in the event that he is found by order of a court of competent jurisdiction finding directly liable for gross negligence or willful
misconduct in connection with the provision of Management Services. 
 (c) Subject to the provisions of Section 3(a) and applicable law,
OPA, Comer and Chuk (each such person, a “Representative” and collectively, the “Representatives”) shall be authorized to make decisions with respect to all aspects of the management and operation of the
Company’s business, including without limitation organization and human resources, marketing and sales, logistics, finance, administration of day-to-day operations and such other areas as they may identify, in such manner as they deem necessary
or appropriate in their reasonable judgment in a manner consistent with the business judgment rule and the provisions of applicable law. 
 (d) During the Term, OPA shall be entitled to nominate two directors to the Board (the “OPA Directors”). If any OPA Director is not elected to the Board or for any reason is not serving as a DMED director during the Term,
then OPA shall have the right to nominate another person to serve as a director of DMED. As of the date of this Agreement, Comer and Chuk serve as directors of DMED. 
 (d) OPA shall cause its representatives, including expressly Comer and Chuk, to furnish such time at such locations as are reasonably necessary to perform the Management Services. Consequently, it is hereby understood
and agreed that no individual person is required to devote his full time to this engagement, although it is expected that Comer, Chuk and several other persons employed by OPA will be devoting a substantial portion of their working time to the
provision of Management Services during the Term. In furtherance of the foregoing, DMED shall include the OPA nominees in any proxy statement relating to the election of directors. If for any reason the OPA nominees are not elected to the Board, the
Board shall create a vacancy on the Board and appoint the OPA directors to fill such vacancies in accordance with the bylaws of the Company. 
 (e) In undertaking to provide the services set forth herein, none of OPA or any other person or entity guarantees or otherwise provides any assurances that their efforts to 
  

 2 

 build the Company’s operational and financial health and stability will be successful and, except for the amount
referenced in Section 5(b), DMED’s obligation to provide the compensation specified under Section 5 hereof shall not be conditioned upon any particular results being obtained. 
 4. Term. 
 (a) The initial term of
OPA’s engagement hereunder (the “Term”) shall be for one year commencing on the date of the Closing. The Term shall continue thereafter on a month-to-month basis unless terminated by either party upon 30 days’ advance
written notice. 
 (b) If Milestones 7 and 8 as set forth on Schedule 4 have not been achieved by June 30, 2007, DMED shall have
the unilateral option, exercisable by delivery of written notice to OPA on or before such date expressly referencing this Agreement and this Section 4(b), to extend the Term through December 31, 2007. 
 (c) DMED shall have the right to terminate the Management Services, effective upon 15 days advance written notice, if either Comer or Chuk, prior to the
engagement of a new CEO and CFO, respectively, as contemplated by the terms of Schedule 1, are not actively engaged in the provision of Management Services whether due to death, disability or by reason of a material breach of this Agreement
by OPA (it being understood and agreed that each of Comer and Chuk, in addition to pursuing other activities not related to or for the benefit of the Company may be on personal vacation for up to five weeks a year). 
 (d) Notwithstanding Section 4(b) above, OPA shall have the right to terminate the Management Services, effective upon 15 days advance written
notice, at any time after the Milestones numbered 1 through 8 set forth on Schedule 4 have been achieved. If OPA does terminate this Agreement pursuant to this Section 4(d), then DMED shall have the right to, and OPA agrees to provide
for a period not to exceed 60 days after the termination date, a transition of the Management Services reasonably requested by DMED at an hourly rate of $350/hour for services rendered by Comer or Chuk and $150/hour for services rendered by other
persons utilized by OPA in the provision of the Management Services. 
 5. Compensation. The following compensation shall be payable
to OPA for provision of the Management Services by OPA: 
 (a) Base Fee. DMED shall pay OPA a monthly fee (the “Base
Fee”) of $75,000, pro-rated for partial months and payable in advance no later than the first day of every month during the Term. If the Term is extended pursuant to Section 4(b), the Fee shall be increased to $125,000 for such
extended Term. 
 (b) Bonus Fees. DMED shall pay to OPA the following bonuses (collectively, the “Bonus Fees”).

  

 3 

 (i) Commencing January 1, 2008, for each fiscal year ending during the Term, OPA
will be eligible to receive bonus fees based on achievement of performance criteria established by the Board or the compensation committee thereof as soon as administratively practicable prior to the beginning of each such fiscal year. DMED
shall pay the bonus fees for each fiscal year in accordance with procedures established by the Board, but in no event later than two and a half months following the end of such fiscal year. 
 (ii) OPA is eligible to receive bonus fees (the “Initial Bonus Fees”) based on achievement of the performance criteria
set forth on Schedule 4. The Initial Bonus Fees, which, in aggregate, shall not exceed $400,000, shall be paid as set forth on Schedule 4. 
 (c) Stock Option Grant. The Company shall grant to OPA a stock option to purchase 2,069,109 shares of Company common stock at the strike price and vesting schedule as set forth in Schedule 2 (the
“Stock Option”). The terms and conditions of the Stock Option shall be governed by and subject to the award agreement to be entered into between OPA and DMED, substantially in the form set out in Schedule 3, and shall be subject to
the terms and conditions of DMED’s 2006 Incentive Compensation Plan. The Stock Option shall be granted on the date of this Agreement. OPA shall be eligible to be granted additional equity compensation awards as determined by the Board in its
sole discretion. 
 (d) Expenses. During the Term, DMED shall reimburse OPA for all reasonable business expenses incurred in
connection with the provision of Management Services in accordance with DMED’s policies in effect from time to time with respect to travel, entertainment and other business expenses for senior executives. The Company shall continue to lease
office space and parking that shall be made available for use by OPA in connection with the provision of the Management Services. 
 (e)
Potential Business Development Compensation. Promptly after the date hereof, the Company intends to engage a third-party compensation consultant to design a program to reward employees and consultants with potential additional compensation
that may be paid in cash or equity securities for the development of new Company biodiesel projects. OPA will be eligible to participate in that program, and it will have the opportunity to discuss any proposed program with such consultant to the
extent it reasonably desires to do so. OPA will have the opportunity to earn bonuses based on the development of such other projects according to the parameters set forth in such program. 
 (f) Other Benefits. Comer, Chuk and other persons performing Management Services shall also be entitled to coverage for services rendered to the
Company while they serve as directors or officers of the Company under director and officer liability insurance policy(ies) maintained by the Company from time to time. No person rendering Management Services on behalf of OPA shall be entitled to
receive other benefits (including, without limitation, employee welfare benefits) by virtue of this Agreement. 
  

 4 

 (g) In the event of any breach of this Agreement by the Company, the aggregate amount of (i) unpaid
Base Fees, Bonus Fees and any other earned but unpaid compensation, (ii) unpaid expense reimbursements or other cash entitlement, (iii) Base Fees for the remaining Term and (iv) the aggregate of all unpaid Bonus Fees shall become
immediately due and payable to OPA, irrespective of whether the corresponding milestones have been achieved. In addition, in such event, all DMED stock options issued to OPA shall become immediately vested notwithstanding the terms thereof.

 6. Confidentiality. OPA shall cause each person engaged by it to perform Management Services, including, without limitation, Comer
and Chuk, to enter into DMED’s form of Confidentiality and Invention Assignment Agreement attached hereto as Schedule 5 prior to performing any Management Services. 
 7. Representations and Warranties. Each party represents and warrants to the other party as follows: 
 (a) It is a legal entity duly organized and validly existing under the laws of the jurisdiction in which it was organized and has all requisite corporate
power to enter into this Agreement. 
 (b) Neither the execution and delivery of this Agreement nor the consummation of the transactions
contemplated herein nor compliance by it with any of the provisions hereof will: (i) violate any order, writ, injunction, decree, law, statute, rule or regulation applicable to it or (ii) require the consent, approval, permission or other
authorization of, or qualification or filing with or notice to, any court, arbitrator or other tribunal or any governmental, administrative, regulatory or self-regulatory agency or any other third party. 
 (c) This Agreement has been duly authorized, executed and delivered by it and constitutes its legal, valid and binding agreement. 
 8. Indemnification. 
 (a) The Company
shall indemnify and hold OPA, its principals, officers, shareholders, employees and agents harmless from and against any and all liability, demands, claims, actions, losses, interest, costs of defense and expenses (including, without limitation,
reasonable attorneys’ fees) which arise out of or in connection with the acceptance of this Agreement and the performance of its duties hereunder except such acts or omissions as may result from the willful misconduct or gross negligence of
OPA. Promptly after receipt by OPA of notice of any demand or claim or the commencement of any action, suit or proceeding relating to this Agreement, OPA shall promptly notify the Company in writing. IT IS EXPRESSLY THE INTENT OF THE COMPANY TO
INDEMNIFY OPA AND ITS DIRECTORS, OFFICERS, SHAREHOLDERS, MEMBERS AND EMPLOYEES AND AGENTS FROM ERRORS IN JUDGMENT OR OTHER ACTS OR OMISSIONS NOT AMOUNTING TO WILFULL MISCONDUCT OR GROSS NEGLIGENCE. 
  

 5 

 (b) The parties acknowledge that Comer and Chuk have each entered into Indemnification Agreements with
DMED dated as of August 4, 2006, in connection with their service as officers and directors of DMED (the “Indemnification Agreements”). Further, DMED shall, upon the execution and delivery of this Agreement, enter into an
indemnification agreement with OPA for the benefit of OPA and all persons employed by OPA who render Management Services on substantially similar terms as the Indemnification Agreements. 
 9. Insurance. 
 (a) DMED has furnished
to OPA a true, correct and complete copy of the following: Directors and Officers Go Forward Policy underwritten by National Union Fire Insurance Company of Pittsburgh, PA, Directors and Officers Runoff Policy underwritten by National Union Fire
Insurance Company of Pittsburgh, PA and Commercial Liability Insurance underwritten by Markel International Inc. Co., LTD. (collectively, the “Policies” or individually referred to as a “Policy”) issued to DMED by
various insurers as set forth herein (collectively, the “Insurer”). DMED represents that, to the best of DMED’s knowledge, the Policies are in full force and effect and that no event has occurred that constitutes or, with the passage
of time or giving of notice would constitute, an event of default thereunder or that would otherwise give the Insurer any right to cancel such Policies. Promptly after OPA’s written request, DMED shall notify the Insurer of the appointment of
any person performing Management Services who becomes an officer of DMED. DMED shall cause its insurance broker to send copies of all documentation and other communications regarding the Policies, including without limitation any renewal or
cancellation thereof, to the attention of OPA, in the manner set forth herein, and OPA, Comer, Chuk and any person performing Management Services who becomes an officer of DMED shall have all indemnities available to the officers of DMED pursuant to
DMED’s Charter and Bylaws. As long as the same can be done at a commercially reasonable cost, during the term of this Agreement, DMED shall maintain directors and officers liability insurance coverage, employment practices insurance coverage
and fiduciary liability insurance coverage comparable as to terms (including without limitation the provisions or any similar provision regarding extension of the discovery period thereunder) and amounts not lower than those provided under the
Policies, with any such replacement coverage being obtained from an insurer with a rating from a nationally recognized rating agency not lower than that of the Insurer presently providing such coverage. Upon any cancellation or nonrenewal of any
Policies by any Insurer, as long as the same can be done at a commercially reasonable cost, DMED shall exercise its rights under the applicable clause of the relevant Policy to extend the claim period for a one-year “discovery period” and
shall exercise such rights and pay the premium required thereunder within the 30-day period specified therein. DMED shall use commercially reasonable efforts, in connection with the next renewal of each Policy, to negotiate to obtain an option to
extend the discovery period set forth in such Policies from one to three years, as long as the same can be obtained at a commercially reasonable cost. 
 (b) If a Change of Control (as defined below) occurs after the date hereof with respect to the Company within six years of the later of (i) the termination of the Term or 
  

 6 

 (ii) the date that Comer or Chuk both cease to serve as officers or directors of the Company (such later date, the
“Termination Date”), then the Company shall purchase a “tail” directors and officers liability coverage policy that shall name Comer and Chuk as additional named insureds. The maximum coverage amount of such policy shall
be appropriate for a Company of the type and size of the Company or the date the policy is purchased, but in any event, not less than $10 million. The term of the policy shall be not less than six years less the period of time lapsed since the
Termination Date. “Change in Control” shall mean the first to occur of any of the following events: 
 (i) A transaction or series of transactions (other than an offering of equity securities by the Company) whereby any “person” or related “group” of “persons” (as such terms are used in Sections 13(d) and
14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (other than the Company, any of its subsidiaries, an employee benefit plan maintained by the Company or any of its subsidiaries or a
“person” that, prior to such transaction, directly or indirectly controls, is controlled by, or is under common control with, the Company) directly or indirectly acquires beneficial ownership (within the meaning of Rule 13d-3 under the
Exchange Act) of securities of the Company possessing more than 50% of the total combined voting power of the Company’s securities outstanding immediately after such acquisition; 
 (ii) During any twelve-month period, individuals who, at the beginning of such period, constitute the Board together with any new
director(s) (other than a director designated by a person who shall have entered into an agreement with the Company to effect a transaction described in Section 5(i)(ii)(A) or Section 5(i)(ii)(C)) whose election by the Board or nomination
for election by the Company’s stockholders was approved by a vote of at least a majority of the directors then still in office who either were directors at the beginning of the twelve-month period or whose election or nomination for election
was previously so approved, cease for any reason to constitute a majority thereof; or 
 (iii) The consummation by the Company
(whether directly involving the Company or indirectly involving the Company through one or more intermediaries) of (x) a merger, consolidation, reorganization, or business combination or (y) a sale or other disposition of all or
substantially all of the Company’s assets in any single transaction or series of related transactions or (z) the acquisition of assets or stock of another entity, in each case other than a transaction that results in the Company’s
voting securities outstanding immediately before the transaction continuing to represent (either by remaining outstanding or by being converted into voting securities of the Company or the person that, as a result of the transaction, controls,
directly or indirectly, the Company or owns, directly or indirectly, all or substantially all of the Company’s assets or otherwise succeeds to the business of the Company (the Company or such person, the “Successor Entity”))
directly or indirectly, at least a majority of the combined voting power of the Successor Entity’s outstanding voting securities immediately after the transaction. 
  

 7 

 10. Limitations on Liability. The Company agrees that OPA and its personnel will not be liable to
the Company for any claims, liabilities, or expenses relating to this engagement in excess of the fees paid by them to OPA pursuant to this Agreement, unless there is a final, nonappealable order of a Court of competent jurisdiction finding OPA or
its personnel performing Management Services liable for gross negligence or willful misconduct. In no event will OPA or any person or entity, or their personnel be liable for consequential, special, indirect, incidental, punitive or exemplary loss,
damages or expenses relating to the provision of Management Services. These limitations on liability provisions extend to the employees, representatives, agents and counsel of OPA. The limitation on liability contained in this Agreement and the
indemnification agreements referenced in Section 7 shall survive the completion or termination of this Agreement. 
 11.
Independent Contractor; Taxes. The parties intend that OPA shall render services hereunder as an independent contractor, and nothing herein shall be construed to be inconsistent with this relationship or status. OPA and any person providing
Management Services shall be solely responsible for any tax consequences by reason of this Agreement and the relationship established hereunder, and the Company shall not be responsible for the payment of any federal, state or local taxes or
contributions imposed under any employment insurance, social security, income tax or other tax law or regulation with respect to OPA’s performance of management services hereunder. Notwithstanding anything in this Agreement to the contrary, the
Company shall be entitled to effect any withholding from any amount payable by it pursuant to this Agreement to the extent required by law. 
 12. Non-Solicitation. 
 (a) OPA shall cause each person providing Management Services, including, without limitation, Comer
and Chuk, to agree in writing for the benefit of the Company that, during the Term and for one year thereafter (the “Restricted Period”), he or she shall not directly or indirectly through another person or entity (i) induce,
solicit, encourage or attempt to induce, solicit or encourage any employee of the Company (excluding Comer, Chuk and any employee of OPA, each of whom, for the avoidance of doubt, is not an employee of the Company) to leave the employ of the
Company, or in any way interfere with the relationship between the Company and any employee thereof; or (ii) induce, solicit, encourage or attempt to induce, solicit or encourage any customer, supplier, licensee, licensor, franchisee or other
business relation of the Company to cease doing business with the Company, or in any way interfere with the relationship between any such customer, supplier, licensee or business relation of the Company (including, without limitation, making any
negative or disparaging statements or communications regarding the Company). OPA covenants that it will not, and it will advise members of senior management of OPA not to, make any negative or disparaging statements or communications regarding the
Company or its employees or directors. 
 (b) During the Restricted Period, the Company shall not directly or indirectly through another
person or entity (i) induce, solicit, encourage or attempt to induce, solicit or encourage any employee of OPA (including, without limitation, Comer and Chuk) to leave the employ of OPA, or in any way interfere with the relationship between OPA
and 
  

 8 

 any employee thereof; or (ii) induce, solicit, encourage or attempt to induce, solicit or encourage
any customer, supplier, licensee, licensor, franchisee or other business relation of OPA to cease doing business with OPA, or in any way interfere with the relationship between any such customer, supplier, licensee or business relation of OPA
(including, without limitation, making any negative or disparaging statements or communications regarding OPA). The Company covenants that it will not, and it will advise members of senior management of the Company and its board of directors not to,
make any negative or disparaging statements or communications regarding OPA or any person performing Management Services, including, without limitation, Comer and Chuk. 
 (c) If, at the time of enforcement of this Section 12, a court shall hold that the duration, scope or area restrictions stated herein are unreasonable under circumstances then existing, the parties agree
that the maximum duration, scope or area reasonable under such circumstances shall be substituted for the stated duration, scope or area and that the court shall be allowed to revise the restrictions contained herein to cover the maximum period,
scope and area permitted by law. Each party acknowledges that the restrictions contained in this Section 12 are reasonable and that it has reviewed the provisions of this Agreement with its legal counsel. 
 (d) Each party acknowledges that in the event of the breach or a threatened breach by the other party or any person performing Management Services of any
of the provisions of this Section 12, the other party would suffer irreparable harm, and, in addition and supplementary to other rights and remedies existing in its favor, the non-breaching party shall be entitled to specific performance
and/or injunctive or other equitable relief from a court of competent jurisdiction in order to enforce or prevent any violations of the provisions hereof (without posting a bond or other security). In addition, in the event of a breach or violation
by the Company, OPA or any person of this Section 12, the Restricted Period shall be automatically extended by the amount of time between the initial occurrence of the breach or violation and when such breach or violation has been duly
cured. 
 13. Jurisdiction. Each of OPA and the Company hereby irrevocably and unconditionally (a) submits for itself and its
property in any legal action or proceeding relating to this Agreement, to the non-exclusive general jurisdiction of the State of California, the Courts of the United States of America for the Central District of California located in Los Angeles
County, California, and appellate courts from any thereof; (b) consents that any such action or proceeding may be brought in such courts and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in
any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; (c) agrees that service of process in any such action or proceeding may be effected in any manner permitted by law
and agrees that nothing herein shall affect the right to effect service of process in any manner permitted by law or shall limit the right to sue in any other jurisdiction; and (d) waives, to the maximum extent not prohibited by law, any right
it may have to claim or recover in any legal action or proceeding referred to in this subsection any special, exemplary or punitive or consequential damages. 
  

 9 

 14. Survival of Agreement. Except as provided in this Agreement, the obligations set forth
Sections 5, 10, 12 and 13 shall survive the expiration, termination, or supersession of this Agreement. 
 15. Amendments. Any
amendment to this Agreement shall be made in writing and signed by the parties hereto. 
 16. Enforceability. If any provision of this
Agreement shall be invalid or unenforceable, in whole or in part, then such provision shall be deemed to be modified or restricted to the extent and in the manner necessary to render the same valid and enforceable, or shall be deemed excised from
this Agreement, as the case may require, and this Agreement shall be construed and enforced to the maximum extent permitted by law as if such provision had been originally incorporated herein as so modified or restricted or as if such provision had
not been originally incorporated herein, as the case may be. 
 17. Construction. This Agreement shall be construed and interpreted in
accordance with the internal laws of the State of California. 
 18. Notices. All notices, requests, consents and other communications
hereunder to any party shall be deemed to be sufficient if contained in a written instrument delivered in person or duly sent by certified mail, postage prepaid or by an overnight delivery service, charges prepaid; addressed to such party at the
address set forth below or such other address as may hereafter be designated in writing by the addressee to the addressor: 
  

			
	 If to the Company:
	  	Diametrics Medical, Inc.
		  	6033 West Century Blvd., Suite 850
		  	Los Angeles, California 90045
		  	 Attention: Chairman of the Board

		
		  	 with a copy to:

		
		  	 Sidley Austin LLP

		  	 555 West Fifth Street; 40th Floor

		  	Los Angeles, California 90013
		  	 Attn: Stephen D. Blevit, Esq.

		
	 If to OPA:
	  	Ocean Park Advisors, LLC
		  	5710 Crescent Park East, Suite 334
		  	Playa Vista, California 90094
		  	Attention: W. Bruce Comer III

 Any party may from time to time change its address for the purpose of notices to that party by a similar notice
specifying a new address, but no such change shall be deemed to have been given until it is actually received by the party sought to be charged with its contents. 
  

 10 

 19. Waivers. No claim or right arising out of a breach or default under this Agreement shall be
discharged in whole or in part by a waiver of that claim or right unless the waiver is supported by consideration and is in writing and executed by the aggrieved party hereto or his or its duly authorized agent. A waiver by any party hereto of a
breach or default by the other party hereto of any provision of this Agreement shall not be deemed a waiver of future compliance therewith, and such provisions shall remain in full force and effect. 
 20. Counterparts. This Agreement may be executed in several counterparts, each of which shall be deemed an original, and all of which shall
together constitute one and the same instrument. 
 21. Entire Agreement. This Agreement and the other documents delivered pursuant
hereto constitute the full and entire understanding and agreement among the parties hereto with regard to the subjects hereof and thereof and no party shall be liable or bound to any other in any manner by any representations, warranties, covenants
and agreements except as specifically set forth herein and therein. 
 22. No Third Party Beneficiaries. This Agreement is for the
sole and exclusive benefit of the Parties hereto and nothing herein, expressed or implied, shall give or be construed to give any person or entity, other than the parties hereto, any legal or equitable rights hereunder. 
 23. Assignment. Except as specifically stated in this Agreement, neither this Agreement nor any of the rights, interests or obligations of any
party hereunder shall be assigned or delegated by either party without the prior written consent of the other party, not to be unreasonably withheld. Any unauthorized assignment or delegation shall be null and void. Notwithstanding the foregoing,
OPA may assign this Agreement to an affiliated entity for tax or organizational reasons, so long as the Management Services and the principal individuals providing such services (i.e. Comer and Chuk) shall be as contemplated herein. Furthermore,
either party may, without the other’s consent, assign this Agreement to a present or future affiliate, successor in a merger or similar transaction or purchaser of all or substantially all of such party’s assets. 
 [Signature page follows] 
  

 11 

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

  

			
	DIAMETRICS MEDICAL, INC.
		
	By:	 	 /s/ Paul A. Galleberg

	Name:	 	Paul A. Galleberg
	Title:	 	Director
	
	OCEAN PARK ADVISORS, LLC
		
	By:	 	 /s/ W. Bruce Comer III

	Name:	 	W. Bruce Comer III
	Title:	 	Chief Executive Officer

 Signature Page to OPA Services Agreement 

 Schedule 1 
 Management Services 
 OPA will provide executive management services (the “Management
Services”) to the Company, including, without limitation, fulfilling the duties typically performed by a chief executive officer and chief financial officer. The Management Services shall include: 
  

	 	•	 	Developing the Company’s business plan and strategy; 

  

	 	•	 	Establishing corporate infrastructure that is appropriate for a publicly-traded company at the Company’s stage of development; 

  

	 	•	 	Managing the day-to-day operations of the Company and overseeing the activities of the Company’s operating units; 

  

	 	•	 	Preparing the Company’s financial statements and disclosure filings as required by the SEC and applicable law; 

  

	 	•	 	Preparing for and holding Company board meetings; 

  

	 	•	 	Undertaking, as necessary, capital-raising efforts; and 

  

	 	•	 	Leading business development functions such as deal pipeline generation, conducting due diligence and negotiating transactions. 

 OPA shall provide during the Term approximately five full-time-equivalent persons (FTEs) to perform the Management Services. As noted in the Agreement,
it is hereby understood and agreed that no individual person is required to devote his full time to this engagement, although it is expected that Comer, Chuk and several other persons employed by OPA will be devoting a substantial portion of their
working time to the provision of Management Services during the Term. 
 It is understood and agreed that the Management Services to be
provided by OPA do not encompass all services required to manage the Company and that the Company will need to utilize, at the Company’s cost, additional specialists. These specialists may include, without limitation, legal, tax, environmental,
accounting, investor relations, website design and other advisory persons. 
 Schedule 1 

 Schedule 2 
 Stock Option Grant 
 DMED shall grant OPA a Stock Option to purchase 2,069,109 shares of DMED common stock, at
a strike price of $0.758754, vesting on the date that the following conditions are first satisfied: 
  

	 	a)	the majority of the voting power of eligible stockholders of DMED has approved a re-incorporation of DMED into Delaware, or any such action that results in an increase in the
authorized shares of Company common stock sufficient for or exceeding the maximum number of shares for which the Stock Option is exercisable, and 

  

	 	b)	the closing sale price of the Company’s Common Stock on the OTC Bulletin Board, the NASDAQ Stock Market, the New York Stock Exchange, the American Stock Exchange or any other
established United States stock exchange is greater than $1.33 per share. 

 Schedule 2 

 Schedule 3 
 Form of Stock Option 
 Schedule 3 

 Schedule 4 
 Initial Bonus Fees 
 OPA understands and agrees that not all of these Initial Bonus Fees are under the
unilateral control of OPA, but it agrees to use its reasonable commercial efforts to achieve each milestone as promptly as commercially practical. 
  

								
	 Milestone
 Number
	  	 Milestone
	  	Applicable
Initial
Bonus Fee	  	 Achievement Criterion

	1.	  	DMED stockholder meeting and vote	  	$	50,000	  	Hold DMED stockholder meeting and vote on re-incorporation in Delaware, increase in authorized common shares, etc.
				
	2.	  	DMED registration statement filing	  	$	25,000	  	File DMED registration statement with the SEC as contemplated by transaction documents
				
	3.	  	DMED registration statement effectiveness	  	$	50,000	  	SEC declares DMED registration statement “effective” after all required amendments are made
				
	4.	  	Establish finance and accounting function (recruit accounting professional(s) and establish appropriate accounting controls and procedures so that the Company has a functioning accounting
department appropriate for its size)	  	$	50,000	  	Achievement determined in reasonable discretion of the Compensation Committee of the Board. First review date shall be 12/1/2006.
				
	5.	  	Establish insurance and risk management function (to review the Company’s insurance program and renew or amend policies), and renew or replace D&O policy.	  	$	50,000	  	Achievement determined in reasonable discretion of the Compensation Committee of the Board. First review date shall be 12/1/2006.
				
	6.	  	Establish and maintain investor relations function to communicate appropriately with investors, create and manage a Company website, design a new corporate logo, etc.	  	$	50,000	  	Achievement determined in reasonable discretion of the Compensation Committee of the Board. First review date shall be 2/1/2007.

 Schedule 4 

								
	7.	  	Hiring of a replacement CEO approved by the DMED board.	  	$	37,500	  	Acceptance of the offer by the offeree.
				
	8.	  	Hiring of a replacement CFO approved by the DMED board.	  	$	37,500	  	Acceptance of the offer by the offeree.
				
	9.	  	Stock market listing	  	$	50,000	  	Effectiveness of listing on NASDAQ, AMEX, NYSE or London Stock Exchange

  

	 	•	 	Each Applicable Initial Bonus Fee shall be payable within five business days after fulfillment of the applicable Achievement Criterion, after direction by the Compensation Committee
of the DMED Board of Directors. 

  

	 	•	 	In order to receive each Applicable Initial Bonus Fee, fulfillment of the applicable Achievement Criterion must occur during the Term. 

  

	 	•	 	Milestones may be achieved in any order. 

 Schedule 4

 Schedule 5 
 Form Of Confidentiality And Invention Assignment Agreement 
 Schedule 5Series J Convertible Preferred Stock Subscription Agreement

 Exhibit 10.7 
 EXECUTION COPY 
 Diametrics Medical, Inc. 
 Shares of Series J Convertible Preferred Stock 
 SUBSCRIPTION AGREEMENT 
 September 20, 2006 
 M.A.G. Capital, LLC 
 Monarch Pointe Fund, Ltd. 
 Mercator Momentum Fund, L.P. 
 Mercator Momentum Fund III, L.P. 
 555 South Flower Street, Suite 4200 
 Los Angeles, California 90071 
 Ladies and Gentlemen: 
 Diametrics Medical, Inc., a Minnesota corporation
(the “Company”), hereby confirms its agreement with Monarch Pointe Fund, Ltd. (“Monarch”), Mercator Momentum Fund, L.P. (“MMF”), Mercator Momentum Fund III, L.P.
(“MMF III”), each of the undersigned additional accredited investors (each an “Accredited Investor; collectively, the “Accredited Investors”) and M.A.G. Capital, LLC (“MAG,” and
together with MMF III, Monarch, MMF and the Accredited Investors, the “Purchasers”), as set forth below (the “Agreement”). For the avoidance of doubt, the term “Company” does not include
Vanguard SynFuels, LLC (“VSF”). 
 1. The Securities. Subject to the terms and conditions contained herein, the Company
agrees to issue and sell to the Purchasers an aggregate of Two Thousand Eight Hundred Fifty (2,850) shares of its Series J Convertible Preferred Stock (the “Preferred Stock”), which shall be convertible into shares (the
“Conversion Shares”) of the Company’s Common Stock, par value $1.00 per share (the “Common Stock”), in accordance with the formula set forth in the Certificate of Designations of the Series J
Convertible Preferred Stock further described below, the issuance of which Conversion Shares is subject to the approval of the shareholders of the Company of either (i) an amendment to the Company’s Amended and Restated Articles of
Incorporation or (ii) the merger of the Company into a wholly owned subsidiary of the Company incorporated in the State of Delaware, in either case resulting in a sufficient number of authorized shares for the Company to reserve a sufficient
number of authorized but unissued shares of Common Stock to issue the Conversion Shares (either such shareholder approval being referred to herein as the “Shareholder Approval,” and such date as the Company obtains the
Shareholder Approval being referred to herein as the “Shareholder Approval Date”). The number of shares of Preferred Stock to be purchased by each of the Purchasers is set forth in Schedule A. The rights, preferences and
privileges of the Preferred Stock are as set forth in the Certificate of Designations of Series J Convertible Preferred Stock, as filed with the Secretary of State of the State of Minnesota (the “Certificate of Designations”)
in the form attached hereto as Exhibit A. The number of Conversion Shares that each Purchaser may elect to acquire at any time is subject to limitation in the Certificate of Designations, such that for any holder who so 

 elects, the aggregate number of shares of Common Stock of which such Purchaser, together with all persons affiliated with
such Purchaser have beneficial ownership (calculated pursuant to Rule 13d-3 of the Securities Exchange Act of 1934, as amended) does not at any time exceed 9.99% of the Company’s then outstanding Common Stock. 
 This Agreement, the Certificate of Designations, certain warrants to acquire up to 6,500,000 shares of Common Stock (subject to adjustment) to be issued
to MAG in connection with MAG’s assignment to the Company of certain rights to acquire VSF (respectively, the “Assignment Warrants” and “Assignment Warrant Shares”), those certain Voting
Agreements, each dated September 20, 2006, by and between the Company and the shareholders or subscribers for the Preferred Stock parties thereto, a certificate of designations for Series K Convertible Preferred Stock of the Company (the
“Series K Preferred Stock”), and the Registration Rights Agreement by and among the Company, the Purchasers and MAG entered into concurrently herewith and attached hereto as Exhibit B, are sometimes herein collectively referred to
as the “Transaction Documents.” 
 The Preferred Stock will be offered and sold to the Purchasers without such offers
and sales being registered under the Securities Act of 1933, as amended (together with the rules and regulations of the Securities and Exchange Commission (the “SEC”) promulgated thereunder, the “Securities
Act”), in reliance on exemptions therefrom. 
 In connection with the sale of the Preferred Stock, the Company has made
available (including electronically via the SEC’s EDGAR system) to the Purchasers its periodic and current reports, forms, schedules, proxy statements and other documents (including exhibits and all other information incorporated by reference)
filed with the SEC under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). The Company’s Annual Report on Form 10-KSB for the year ended December 31, 2005, its Quarterly Report on Form 10-QSB for
the quarter ended June 30, 2006 and all subsequent reports, forms, schedules, statements, documents, filings and amendments filed by the Company with the SEC under the Exchange Act, are collectively referred to as the “Disclosure
Documents.” All references in this Agreement to financial statements and schedules and other information which is “contained,” “included” or “stated” in the Disclosure Documents (or other references of like
import) shall be deemed to mean and include all such financial statements and schedules, documents, exhibits and other information which is incorporated by reference in the Disclosure Documents. 
 2. Representations and Warranties of the Company. Except as set forth on the Disclosure Schedule (the “Disclosure
Schedule”) delivered by the Company to Purchasers on the date hereof, the Company represents and warrants to and agrees with Purchasers as of the date of this Agreement and as of the Closing Date (as defined in Section 4 below), as
if such representations and warranties were remade on the Closing Date, as follows: 
 (a) The Disclosure Documents as of their respective
dates did not, and will not (after giving effect to any updated disclosures therein) as of the Closing Date, contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in the light of
the circumstances under which they were made, not misleading; provided, however, that no representation or warranty is made with respect to information contained in the Disclosure Documents about VSF. The Disclosure Documents and 

 the documents incorporated or deemed to be incorporated by reference therein, at the time they were filed or hereafter
are filed with the SEC, complied and will comply, at the time of filing, in all material respects with the requirements of the Securities Act and/or the Exchange Act, as the case may be, as applicable. 
 (b) Except as set forth on the Disclosure Schedule, there are no subsidiaries of the Company. The Company has been duly incorporated and the Company is
validly existing in good standing as a corporation under the laws of its jurisdiction of incorporation, with the requisite corporate power and authority to own or lease, as applicable, and operate its properties and conduct its business as now
conducted as described in the Disclosure Documents and is duly qualified to do business as a foreign corporation in good standing in each other jurisdiction where the ownership or leasing of its properties or the conduct of its business requires
such qualification. As of the date hereof, the Company has the authorized, issued and outstanding capitalization set forth in on Schedule B attached hereto (the “Company Capitalization”). The Board of Directors of the
Company (the “Board”) has authorized, subject to Shareholder Approval, an aggregate of 6,592,755 shares of Common Stock for issuance to employees, directors and consultants pursuant to the Company’s 2006 Incentive Compensation Plan.
Except as set forth in the Disclosure Documents or on the Disclosure Schedule, the Company does not have any subsidiaries or own directly or indirectly any of the capital stock or other equity or long-term debt securities of or have any
equity interest in any other person; all of the outstanding shares of capital stock of the Company have been duly authorized and validly issued, are fully paid and nonassessable and were not issued in violation of any preemptive or similar rights
and are owned free and clear of all liens, encumbrances, equities, and restrictions on transferability (other than those imposed by the Securities Act and the state securities or “Blue Sky” laws) or voting; except as set forth in the
Disclosure Documents or on the Disclosure Schedule, no options, warrants or other rights to purchase from the Company, agreements or other obligations of the Company to issue or other rights to convert any obligation into, or exchange any securities
for, shares of capital stock of or ownership interests in the Company are outstanding; and except as set forth in the Disclosure Documents or on the Disclosure Schedule, there is no agreement, understanding or arrangement among the Company and each
of its stockholders or any other person relating to the ownership or disposition of any capital stock of the Company or the election of directors of the Company or the governance of the Company’s affairs, and such agreements, understandings and
arrangements, if any, will not be breached or violated as a result of the execution and delivery of, or the consummation of the transactions contemplated by, the Transaction Documents. 
 (c) Except as set forth on the Disclosure Schedule, the Company has the requisite corporate power and authority to execute, deliver and perform its
obligations under the this Agreement and the Transaction Documents to which it is a party and to consummate the transactions contemplated hereby and thereby. Each of the Transaction Documents has been duly and validly authorized by all necessary
corporate and shareholder action on the part of the Company and, when executed and delivered by the Company, will constitute a valid and legally binding agreement of the Company, enforceable against the Company in accordance with its terms except as
the enforcement thereof may be limited by (i) bankruptcy, insolvency, reorganization, fraudulent conveyance, moratorium or other similar laws now or hereafter in effect relating to or affecting creditors’ rights generally or
(ii) general principles of equity and the discretion of the court before which any proceeding therefore may be brought (regardless of whether such enforcement is considered in a proceeding at law or in equity) (collectively, the
“Enforceability Exceptions”). 

 (d) The Preferred Stock has been duly authorized and, when issued upon payment thereof in accordance
with this Agreement, will have been validly issued, fully paid and non-assessable. Subject to approval by the shareholders of the Company, the Conversion Shares issuable with respect to the Preferred Stock will have been duly authorized and validly
reserved for issuance, and when issued upon conversion of the Preferred Stock in accordance with the terms of the Certificate of Designations, will have been validly issued, fully paid and non-assessable. The Common Stock of the Company conforms to
the description thereof contained in the Disclosure Documents. Except as set forth in the Disclosure Schedule, the stockholders of the Company have no preemptive or similar rights with respect to the Common Stock. 
 (e) Except for the consents set forth on the Disclosure Schedule, no consent, approval, authorization, license, qualification, exemption or order of any
court or governmental agency or body or third party is required for the execution, delivery, or performance of any obligations under the Transaction Documents by the Company or for the consummation by the Company of any of the transactions
contemplated thereby, or the application of the proceeds of the issuance of the Preferred Stock as described in this Agreement, except for such consents, approvals, authorizations, licenses, qualifications, exemptions or orders (i) as have been
obtained on or prior to the Closing Date, or (ii) as are not required to be obtained on or prior to the Closing Date that will be obtained when required. 
 (f) Except as set forth on the Disclosure Schedule, the Company is not (i) in material violation of its articles of incorporation or bylaws (or similar organizational document), (ii) in breach or violation
of any statute, judgment, decree, order, rule or regulation applicable to it or any of its properties or assets, or (iii) except as described in the Disclosure Documents, in default (nor has any event occurred which with notice or passage of
time, or both, would constitute a default) in the performance or observance of any obligation, agreement, covenant or condition contained in any contract, indenture, mortgage, deed of trust, loan agreement, note, lease, license, franchise agreement,
permit, certificate or agreement or instrument to which it is a party or to which it is subject. 
 (g) Except as set forth in the
Disclosure Schedule, the execution, delivery and performance by the Company of the Transaction Documents and the consummation by the Company of the transactions contemplated thereby and the fulfillment of the terms thereof will not (i) violate,
conflict with or constitute or result in a breach of or a default under (or an event that, with notice or lapse of time, or both, would constitute a breach of or a default under) any of (A) the terms or provisions of any contract, indenture,
mortgage, deed of trust, loan agreement, note, lease, license, franchise agreement, permit, certificate or agreement or instrument to which any of the Company is a party or to which any of their respective properties or assets are subject,
(B) the articles of incorporation or bylaws of the Company or of any the Subsidiaries (or similar organizational document) or (C) any statute, judgment, decree, order, rule or regulation of any court or governmental agency or other body
applicable to the Company or any of their respective properties or assets or (ii) result in the imposition of any lien upon or with respect to any of the properties or assets now owned or hereafter acquired by the Company or any of the
Subsidiaries. 

 (h) The audited consolidated financial statements included in the Disclosure Documents present fairly
the consolidated financial position, results of operations, cash flows and changes in shareholders’ equity of the entities, at the dates and for the periods to which they relate and have been prepared in accordance with generally accepted
accounting principles applied on a consistent basis; the interim unaudited consolidated financial statements included in the Disclosure Documents present fairly the consolidated financial position, results of operations and cash flows of the
entities, at the dates and for the periods to which they relate, subject to year-end audit adjustments, and have been prepared in accordance with generally accepted accounting principles applied on a consistent basis with the audited consolidated
financial statements included therein; the selected financial and statistical data included in the Disclosure Documents present fairly the information shown therein and have been prepared and compiled on a basis consistent with the audited financial
statements included therein, except as otherwise stated therein; and each of the auditors previously engaged by the Company or to be engaged in the future by the Company is or will be an independent certified public accountant as required by the
Securities Act for an offering registered thereunder. 
 (i) Except as described in the Disclosure Documents, there is not pending or, to
the knowledge of the Company, threatened any action, suit, proceeding, inquiry or investigation, governmental or otherwise, to which the Company is a party, or to which their respective properties or assets are subject, before or brought by any
court, arbitrator or governmental agency or body, that, if determined adversely to the Company, would, individually or in the aggregate, have a material adverse effect on the business, condition (financial or other), properties or results of
operations of the Company (any such event, a “Material Adverse Effect”) or that seeks to restrain, enjoin, prevent the consummation of or otherwise challenge the issuance or sale of the Preferred Stock to be sold hereunder or
the application of the proceeds therefrom or the other transactions contemplated by the Transaction Documents or described in the Disclosure Documents. 
 (j) The Company has not received any written notice of infringement of (or knows of any such infringement of) asserted rights of others with respect to any patents, trademarks, service marks, trade names, copyrights
or know-how that, if such assertion of infringement or conflict were sustained, would, individually or in the aggregate, have a Material Adverse Effect. 
 (k) The Company possesses all licenses, permits, certificates, consents, orders, approvals and other authorizations from, and has made all declarations and filings with, all federal, state, local and other
governmental authorities, all self-regulatory organizations and all courts and other tribunals presently required or necessary to own or lease, as the case may be, and to operate its properties and to carry on its business as now conducted
(“Permits”), except where the failure to obtain such Permits would not, individually or in the aggregate, have a Material Adverse Effect and the Company has not received any notice of any proceeding relating to revocation or
modification of any such Permit, except as described in the Disclosure Documents. 

 (l) Subsequent to June 30, 2006 and except for the Transaction Documents and the Contribution
Agreement, dated as of the date hereof, between the Company and the members of VSF (the “Contribution Agreement”), or as described in the Company’s Quarterly Report on Form 10-QSB for the quarter ended June 30, 2006
or in the Company’s Annual Report on Form 10-KSB for the year ended December 31, 2005: (i) the Company has not incurred any material liabilities or obligations, direct or contingent, or entered into any material transactions not in
the ordinary course of business; (ii) the Company has not purchased any of its outstanding capital stock, or declared, paid or otherwise made any dividend or distribution of any kind on any of its capital stock or otherwise; (iii) there
has not been any material increase in the long-term indebtedness of the Company; (iv) there has not occurred any event or condition, individually or in the aggregate, that has a Material Adverse Effect, and (v) the Company has not
sustained any material loss or interference with respect to its businesses or properties from fire, flood, hurricane, earthquake, accident or other calamity, whether or not covered by insurance, or from any labor dispute or any legal or governmental
proceeding. 
 (m) There are no material legal or governmental proceedings nor are there any material contracts or other documents required
by the Securities Act to be described in a prospectus that are not described in the Disclosure Documents and the Disclosure Schedule. Except as described in the Disclosure Documents and the Disclosure Schedule, the Company is not in default under
any of the contracts described in the Disclosure Documents, and the Company has not received a notice or claim of any such default nor does it have knowledge of any breach of such contracts by the other party or parties thereto. 
 (n) The Company has no owned real property. The Company has good and marketable title to the leasehold estate in the real property described in the
Disclosure Documents as being leased by it, free and clear of all liens, charges, encumbrances or restrictions, except, in each case, as described in the Disclosure Documents. Except as set forth in the Disclosure Schedule, all material leases,
contracts and agreements to which the Company is a party or by which it is bound are valid and enforceable against the Company and are, to the knowledge of the Company, valid and enforceable against the other party or parties thereto and in full
force and effect, in each case subject to the Enforceability Exceptions. 
 (o) The Company has filed all necessary federal, state and
foreign income and franchise tax returns, and has paid all taxes shown as due thereon; and other than tax deficiencies which the Company is contesting in good faith and for which adequate reserves have been provided in accordance with generally
accepted accounting principles, there is no tax deficiency that has been asserted against the Company. 
 (p) The Company is not, and
immediately after the Closing Date will not be, required to register as an “investment company” or a company “controlled by” an “investment company” within the meaning of the Investment Company Act of 1940, as amended
(the “Investment Company Act”). 
 (q) The Company has not, to the knowledge of any of the Company’s directors,
officers, employees, agents or controlling persons, taken, directly or indirectly, any action designed, or that might reasonably be expected, to cause or result in the stabilization or manipulation of the price of the Common Stock. 

 (r) Neither the Company nor any of its Affiliates (as defined in Rule 501(b) of Regulation D
under the Securities Act, but excluding MAG and any Purchaser) has directly, or through any agent, engaged in any form of general solicitation or general advertising (as those terms are used in Regulation D under the Securities Act) in
connection with the offering of the Preferred Stock or engaged in any other conduct that would cause such offering to be constitute a public offering within the meaning of Section 4(2) of the Securities Act. Assuming the accuracy of the
representations and warranties of the Purchasers in Section 3 hereof, it is not necessary in connection with the offer, sale and delivery of the Preferred Stock to the Purchasers in the manner contemplated by this Agreement to register any of
the Preferred Stock under the Securities Act. 
 (s) There is no strike, labor dispute, slowdown or work stoppage with the employees of the
Company or any of the Subsidiaries which is pending or, to the knowledge of the Company or any of the Subsidiaries, threatened. 
 (t) The
Company carries general liability insurance coverage as set forth in the policy previously made available for review by MAG. 
 (u) The
Company maintains internal accounting controls which provide reasonable assurance that (i) transactions are executed in accordance with management’s authorization, (ii) transactions are recorded as necessary to permit preparation of
its financial statements and to maintain accountability for its assets, (iii) access to its material assets is permitted only in accordance with management’s authorization and (iv) the values and amounts reported for its material
assets are compared with its existing assets at reasonable intervals. 
 (v) Except for certain fees owed to MAG set forth on the Disclosure
Schedule, the Company does not know of any claims for services, either in the nature of a finder’s fee, broker’s fee, financial advisory fee or other like fee, that it has incurred with respect to the offering of the Preferred Stock and
the transactions contemplated by the Transaction Documents. 
 (w) The Common Stock is eligible for trading on the Over-the-Counter Bulletin
Board (the “OTC Bulletin Board”). Except as described in the Disclosure Documents, the Company currently is not, to its knowledge, in violation of any rule of the National Association of Securities Dealers. The consummation
of the transactions contemplated by the Transaction Documents will not violate any rule of the National Association of Securities Dealers. 
 (x) The Company is eligible to use Form SB-2 for the resale of the Conversion Shares by Purchasers or their transferees. The Company has no reason to believe that it is not capable of satisfying the registration or qualification
requirements (or an exemption therefrom) necessary to permit the resale of the Conversion Shares under the securities or “blue sky” laws of any jurisdiction within the United States. 
 (y) Set forth on Schedule C is the Company’s intended use of the proceeds from this transaction. 

 (z) None of the officers or directors of the Company (i) has been convicted of any crime (other
than traffic violations or misdemeanors not involving fraud) or, to the Company’s knowledge, is currently under investigation or indictment for any such crime, (ii) has been found by a court or governmental agency to have violated any
securities or commodities law or to have committed fraud or is currently a party to any legal proceeding in which either is alleged, (iii) except as set forth in the Disclosure Schedule, has been the subject of a proceeding under
the bankruptcy laws or any similar state laws, or (iv) has been an officer, director, general partner, or managing member of an entity which has been the subject of such a proceeding. 
 3. Representations and Warranties of the Purchasers. Each of the Purchasers represents and warrants to the Company as of the date of this
Agreement and as of the Closing Date (as if such representations and warranties were remade on the Closing Date) as follows: 
 (a) Each of
the Purchasers represents and warrants to the Company that the Preferred Stock to be acquired by it hereunder (including the Conversion Shares that it may acquire upon conversion or exercise of the Preferred Stock) are being acquired for their own
account for investment and with no intention of distributing or reselling such Preferred Stock (including the Conversion Shares that it may acquire upon conversion or exercise thereof) or any part thereof or interest therein in any transaction which
would be in violation of the securities laws of the United States of America or any State. Nothing in this Agreement, however, shall prejudice or otherwise limit the right of each Purchaser to sell or otherwise dispose of all or any part of such
Conversion Shares under an effective registration statement under the Securities Act and in compliance with applicable state securities laws or under an exemption from such registration. By executing this Agreement, each Purchaser further represents
that such Purchaser does not have any contract, undertaking, agreement or arrangement with any person to sell, transfer or grant participation to any person with respect to any of the Preferred Stock. 
 (b) Each of the Purchasers understands that the Preferred Stock (including the Conversion Shares that it may acquire upon conversion or exercise
thereof, as the case may be) have not been registered under the Securities Act and may not be offered, resold, pledged or otherwise transferred except (a) pursuant to an exemption from registration under the Securities Act (and, if requested by
the Company, based upon an opinion of counsel acceptable to the Company) or pursuant to an effective registration statement under the Securities Act and (b) in accordance with all applicable securities laws of the states of the United States
and other jurisdictions. 
 Each of the Purchasers agrees to the imprinting, so long as appropriate, of the following legend on the Preferred
Stock (including the Conversion Shares that it may acquire upon conversion or exercise thereof, as the case may be): 
 The shares of
stock evidenced by this certificate have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered, sold, pledged or otherwise transferred (“transferred”) in the absence of such registration or an
applicable exemption therefrom. In the absence of such registration, such shares may not be transferred unless, if the Company 

 
requests, the Company has received a written opinion from counsel in form and substance satisfactory to the Company stating that such transfer is being
made in compliance with all applicable federal and state securities laws. 
 The legend set forth above may be removed if and when the
Conversion Shares are disposed of pursuant to an effective registration statement under the Securities Act or in the opinion of counsel to the Company experienced in the area of United States Federal securities laws such legends are no longer
required under applicable requirements of the Securities Act. The Preferred Stock, and the Conversion Shares shall also bear any other legends required by applicable Federal or state securities laws, which legends may be removed when in the opinion
of counsel to the Company experienced in the applicable securities laws, the same are no longer required under the applicable requirements of such securities laws. The Company agrees that it will provide any Purchaser, upon request, with a
substitute certificate, not bearing such legend at such time as such legend is no longer applicable. Each of the Purchasers agrees that, in connection with any transfer of the Conversion Shares by it pursuant to an effective registration statement
under the Securities Act, such Purchaser will comply with all prospectus delivery requirements of the Securities Act. The Company makes no representation, warranty or agreement as to the availability of any exemption from registration under the
Securities Act with respect to any resale of the Preferred Stock or the Conversion Shares. 
 (c) Each of the Purchasers represents and
warrants to the Company that it is an “accredited investor” within the meaning of Rule 501(a) of Regulation D under the Securities Act and that such Purchaser is not an “underwriter” within the meaning of Section 2(11) of
the Securities Act. Each of the Purchasers represents and warrants to the Company that such Purchaser has not learned of the opportunity to acquire Preferred Stock or any other security issuable by the Company through any form of general advertising
or public solicitation. 
 (d) Each of the Purchasers represents and warrants to the Company that it has such knowledge, sophistication and
experience in business and financial matters so as to be capable of evaluating the merits and risks of the prospective investment in the Preferred Stock, having been represented by counsel, and has so evaluated the merits and risks of such
investment and is able to bear the economic risk of such investment and, at the present time, is able to afford a complete loss of such investment. 
 (e) Each of the Purchasers represents and warrants to the Company that its overall commitment to investments which are not readily marketable is not disproportionate to its net worth, and its purchase of the Preferred
Stock will not cause such overall commitment to become excessive. 
 (f) Each of the Purchasers recognizes that the purchase of the
Preferred Stock involves a high degree of risk. 
 (g) Each of the Purchasers represents and warrants to the Company that (i) the
purchase of the Preferred Stock to be purchased by it has been duly and properly authorized and this Agreement has been duly executed and delivered by it or on its behalf and constitutes the valid and legally binding obligation of such Purchaser,
enforceable against such Purchaser in accordance with its terms, subject to the Enforceability Exceptions, (ii) the purchase 

 of the Preferred Stock to be purchased by it does not conflict with or violate its charter, by-laws or any law,
regulation or court order applicable to it; and (iii) the purchase of the Preferred Stock to be purchased by it does not impose any penalty or other onerous condition on such Purchaser under or pursuant to any applicable law or governmental
regulation. 
 (h) Each of the Purchasers represents and warrants to the Company that neither it nor any of its directors, officers,
employees, agents, partners, members, or controlling persons has taken, directly or indirectly, any actions designed, or might reasonably be expected to cause or result in the stabilization or manipulation of the price of the Common Stock.

 (i) Each of the Purchasers acknowledges that it or its representatives have reviewed and understand the Transaction Documents and
Disclosure Documents and further acknowledges that it or its representatives have been afforded (i) the opportunity to ask such questions as it has deemed necessary of, and to receive answers from, representatives of the Company concerning the
terms and conditions of the offering of the Preferred Stock, including the terms and conditions of the proposed Acquisition, and the merits and risks of investing in the Preferred Stock; (ii) access to information about the Company, the
proposed Acquisition and the Company’s financial condition, results of operations, business, properties, management and prospects sufficient to enable it to evaluate its investment in the Preferred Stock; and (iii) the opportunity to
obtain such additional information which the Company possesses or can acquire without unreasonable effort or expense that is necessary to verify the accuracy and completeness of the information in the Transaction Documents and the Disclosure
Documents. 
 (j) Each Purchaser represents and warrants to the Company that it has based its investment decision solely upon the
information contained in the Transaction Documents and the Disclosure Documents and such other information as may have been provided to it or its representatives by the Company in response to their inquiries, and has not based its investment
decision on any research or other report regarding the Company prepared by any third party (“Third Party Reports”). Each Purchaser understands and acknowledges that (i) the Company does not endorse any Third Party
Reports and (ii) its actual results may differ materially from those projected in any Third Party Report. 
 (k) Each of the Purchasers
understands and acknowledges that (i) any forward-looking information included in the Disclosure Documents supplied to such Purchaser by the Company or its management is subject to risks and uncertainties, including those risks and
uncertainties set forth in the Disclosure Documents; and (ii) the Company’s actual results may differ materially from those projected by the Company or its management in such forward-looking information. 
 (l) Each of the Purchasers understands and acknowledges that (i) the Preferred Stock is offered and sold without registration under the Securities
Act in a private placement that is exempt from the registration provisions of the Securities Act and (ii) the availability of such exemption depends in part on, and that the Company and its counsel will rely upon, the accuracy and truthfulness
of the foregoing representations and each of the Purchasers hereby consents to such reliance. 

 (m) Each of the Purchasers understands that no U.S. federal or state agency, or any agency or
governmental or regulatory authority in any other country, including without limitation, the U.S. Securities and Exchange Commission, has passed upon the Preferred Stock or made any finding or determination as to the fairness of this investment.

 (n) Except for certain fees owed to MAG set forth on the Disclosure Schedule, each of the Purchasers does not know of any claims for
services, either in the nature of a finder’s fee, broker’s fee, financial advisory fee or other like fee, that such Purchaser has incurred with respect to the offering of the Preferred Stock and the transactions contemplated by the
Transaction Documents. 
 4. Purchase, Sale, and Delivery of the Preferred Stock. 
 (a) On the basis of the representations, warranties, agreements and covenants herein contained and subject to the terms and conditions herein set forth,
the Company agrees to issue and sell to Purchasers, and Purchasers agree to purchase from the Company, a total of 2,850 shares of Preferred Stock at $10,000.00 per share, for a total consideration of Twenty-Eight Million Five-Hundred Thousand
Dollars ($28,500,000) (the “Purchase Price”). 
 (b) The closing of the transactions described herein (the
“Closing”) shall take place at a time and on a date (the “Closing Date”) to be specified by the parties, which will be no later than 5:00 p.m. (Pacific time) on September 20, 2006. The Closing
will occur when all documents and instruments necessary or appropriate to effect the transactions contemplated herein are exchanged by the parties and all actions taken at the Closing will be deemed to be taken simultaneously. 
 (c) On the Closing Date, the Company shall (i) deliver share certificates in definitive form for an aggregate of 2,850 shares of Preferred Stock
issued to the Purchasers in the respective amounts set forth on the signature pages hereto, duly executed on behalf of the Company, (ii) deliver this Subscription Agreement, duly executed on behalf of the Company, (iii) deliver the
Registration Rights Agreement, duly executed on behalf of the Company, and (iv) file or cause to be filed the Certificate of Designations with the Secretary of State of the State of Minnesota. On the Closing Date, each of the Purchasers shall
deliver this Subscription Agreement, the Voting Agreement and the Registration Rights Agreement, each duly executed on behalf of each such Purchaser, and shall pay the Purchase Price in accordance with Section 4(d) below. 
 (d) Purchasers shall pay the Purchase Price on the Closing Date by wire transfer of immediately available funds to an account as directed by the
Company. 
 5. Certain Covenants of the Company. The Company covenants and agrees with each Purchasers as follows: 
 (a) The Company will not sell, offer for sale or solicit offers to buy or otherwise negotiate in respect of any “security” (as defined in the
Securities Act) which could be integrated with the sale of the Preferred Stock in a manner which would require the registration under the Securities Act of the Preferred Stock. For the avoidance of doubt, the parties agree 

 that the conversion into Common Stock of the Company of the Series H Convertible Preferred Stock, Series I Convertible
Preferred Stock, and the outstanding $750,000 Convertible Secured Promissory Notes (the “Convertible Notes”) of the Company, and exercise for 732,064 shares of Common Stock of the Company of outstanding warrants of the Company (the
“Outstanding Warrants”) does not constitute any such transaction that would be so integrated with the sale of the Preferred Stock. 
 (b) The Company will use its commercially reasonable efforts to avoid becoming, at any time prior to the expiration of three years after the Closing Date, an open-end investment company, unit investment trust, closed-end investment company
or face-amount certificate company that is or is required to be registered under the Investment Company Act. 
 (c) Except as set forth in
the Disclosure Schedule, none of the proceeds of the Preferred Stock will be used to reduce or retire any insider note or convertible debt held by an officer or director of the Company. 
 (d) Subject to Section 9 of this Agreement, the Conversion Shares will be eligible for listing on the OTC Bulletin Board or such market on which
the Company’s shares are subsequently listed or traded, immediately following the effectiveness of the Registration Statement (as defined in Section 9). 
 (e) The Company will use its commercially reasonable efforts to ensure that no officer or director of the Company sells any shares of Company Common Stock from the Closing Date until the date that is 90 days following
the effective date of the Registration Statement, as defined in Section 10 below; provided, however, that this provision shall not restrict Ocean Park Advisors, LLC or the principals thereof (collectively, “OPA”)
or certain officers and directors of the Company from selling the shares of Common Stock issuable upon (i) the conversion of the Series I Preferred Stock held by OPA, (ii) the exercise of up to an aggregate of 339,568 options held by such
officers and directors prior to the date hereof or (iii) the exercise of 25 percent of the options issued to OPA pursuant to the Company’s 2006 Incentive Compensation Plan in connection with the acquisition of VSF. The Company represents
that each of its officers and directors is aware of this commitment and has agreed to use his or her best efforts not to sell any shares of Company Common Stock during this period. 
 (f) The Company will use commercially reasonable efforts to obtain the Shareholder Approval and to effect the reincorporation of the Company in Delaware
as promptly as possible, or in the event that such Shareholder Approval is not obtainable, the Company will use commercially reasonable efforts to obtain the Shareholder Approval to effect an amendment to the Company’s Amended and Restated
Articles of Incorporation as promptly as possible, in either case resulting in a sufficient number of authorized shares for the Company to reserve a sufficient number of authorized but unissued shares of Common Stock to issue the Conversion Shares.
The Company shall use commercially reasonable efforts to ensure that the Conversion Shares will be duly authorized and reserved for issuance, and that, when issued upon conversion of the Preferred Stock in accordance with the terms of the
Certificate of Designations, such Conversion Shares will be validly issued, fully paid and nonassessable. 

 (g) The Company shall use its reasonable commercial efforts to obtain consents from the Company’s
existing preferred stockholders and secured debt holders to convert the securities of the Company held by them, including the Series H Convertible Preferred Stock and the Series I Convertible Preferred Stock and the $750,000 Convertible Secured
Promissory Notes (the “Convertible Notes”), into Common Stock of the Company on the Closing Date. 
 (h) The Company shall use its
reasonable commercial efforts to obtain consents from the Company’s existing warrant holders such that all outstanding warrants shall be exercised prior to the Closing Date, or the holders thereof shall otherwise relinquish their rights under
the warrant agreements and the warrants shall be retired and extinguished upon the Closing Date. 
 (i) The Company agrees that for the
longer of (x) one year from the date hereof or (y) such time as the Preferred Stock has been mandatorily converted pursuant to paragraph (f)(ii) of the Certificate of Designations, the Company will permit a representative of the holders of
the Preferred Stock who is reasonably acceptable to the Company (the “Observer”) to attend all meetings of the Board, whether in person, via telephone, or otherwise, in a non-voting, observer capacity and shall provide to the Observer,
concurrently with the members of the Board and in the same manner, notice of such meeting and a copy of all materials provided to such members. A majority of the members of the Board shall be entitled to recuse the Observer from portions of any
Board meeting and to redact portions of any Board or Board committee materials delivered to the Observer where and to the extent that such majority determines, in good faith, that (i) such recusal is necessary to preserve attorney-client
privilege with respect to a material or sensitive matter, where the Board has been advised by counsel to the Company that such recusal is reasonably necessary to preserve attorney-client privilege, (ii) the presence of the Observer would
materially inhibit deliberations by the Board, (iii) there exists, with respect to any deliberation or Board materials, an actual or potential conflict of interest between the Observer and the Company, or (iv) the presence of the Observer
would otherwise be materially injurious to the Company in such circumstances. 
 (j) The Company will use its reasonable commercial efforts
to do and perform all things required to be done and performed by it under this Agreement and the other Transaction Documents and to satisfy all conditions precedent on its part to the obligations of the Purchasers to purchase and accept delivery of
the Preferred Stock. 
 6. Covenants of Purchasers. Each of the Purchasers, on behalf of itself, its affiliates, its successors and
assigns and any other direct or indirect transferee holding any of the Preferred Stock or the Conversion Shares, hereby covenants and agrees not to, directly or indirectly, offer to “short sell”, contract to “short sell” or
otherwise “short sell” or encourage others to “short sell” the securities of the Company. 
 7. Conditions of the
Purchasers’ Obligations. The obligation of each Purchaser to purchase and pay for the Preferred Stock is subject to the following conditions unless waived in writing by each Purchaser: 

 (a) The representations and warranties of the Company contained in this Agreement shall be true and
correct in all material respects (other than representations and warranties with a Material Adverse Effect qualifier, which shall be true and correct as written) on and as of the Closing Date; the Company shall have complied in all material respects
with all agreements and satisfied all conditions on its part to be performed or satisfied hereunder at or prior to the Closing Date. 
 (b)
None of the issuance and sale of the Preferred Stock pursuant to this Agreement or any of the transactions contemplated by any of the other Transaction Documents shall be enjoined (temporarily or permanently) and no restraining order or other
injunctive order shall have been issued in respect thereof; and there shall not have been any legal action, order, decree or other administrative proceeding instituted or, to the Company’s knowledge, threatened against the Company or any
Purchaser relating to the issuance of the Preferred Stock or any Purchaser’s activities in connection therewith or any other transactions contemplated by this Agreement, the other Transaction Documents or the Disclosure Documents. 

(c) The Purchasers shall have received certificates, dated the Closing Date and signed by the Chief Executive Officer and the Chief Financial Officer
of the Company, to the effect of paragraphs 5(a) and (b). 
 (d) The Purchasers shall have received an opinion of Dorsey & Whitney
LLP, counsel to the Company, with respect to the authorization of the Preferred Stock and the Conversion Shares and other customary matters in the form attached hereto as Exhibit C-1. 
 (e) The Purchasers shall have received an opinion of Sidley Austin LLP, counsel to the Company, with respect to the matters in the form attached hereto
as Exhibit C-2. 
 (f) All of the conditions precedent to the obligations of the Company contained in Article VIII of the
Contribution Agreement shall have been satisfied. 
 (g) The Company shall have entered into employment agreements with each of Darrell
Dubroc and Tim Collins, and employment or consulting agreements with each of Bruce Comer and Heng Chuk (together with Messrs. Dubroc and Collins, the “Management”). The equity compensation payable to the Management pursuant
to such employment and/or consulting agreements shall be substantially as set forth on Schedule B hereto. 
 8. Termination.

 (a) This Agreement may be terminated in the sole discretion of the Company by notice to each Purchaser if at the Closing Date:
(i) the representations and warranties made by the Purchasers in Section 3 are not true and correct in all material respects (other than representations and warranties with a Material Adverse Effect qualifier, which shall be true and
correct as written), or (ii) as to the Company, the sale of the Preferred Stock hereunder (x) is prohibited or enjoined by any applicable law or governmental regulation or 

 (y) subjects the Company to any penalty, or in its reasonable judgment, other onerous condition under or pursuant to
any applicable law or government regulation that would materially reduce the benefits to the Company of the sale of the Preferred Stock to Purchasers. 
 (b) This Agreement may be terminated by the Purchasers by notice to the Company given in the event that: (i) the Company shall have failed, refused or been unable to satisfy all conditions on its part to be
performed or satisfied hereunder on or prior to the Closing Date, or (ii) if after the execution and delivery of this Agreement and immediately prior to the Closing Date, trading in securities of the Company on the OTC Bulletin Board shall have
been suspended, or (iii) the representations and warranties made by the Company in Section 2 are not true and correct in all material respects (other than representations and warranties with a Material Adverse Effect qualifier, which shall
be true and correct as written). 
 (c) This Agreement may be terminated by mutual written consent of all parties. 
 9. Registration. The Company shall, no later than the later of (x) the date that is ninety (90) days from the date hereof or
(y) the date that is five (5) business days following the Shareholder Approval Date (such date of filing, the “Filing Date”), file with the SEC a registration statement on Form SB-2 or S-3 (the
“Registration Statement”), registering the resale of the maximum number of Conversion Shares issuable upon conversion of the Preferred Stock then issued to Purchasers, and shall use its commercially reasonable efforts to have
the Registration Statement declared effective no later than the date that is 60 days after the Filing Date in the event the SEC has no comments on the Registration Statement (or by the date that is 120 days after the Filing Date in the event the SEC
has comments on the Registration Statement) and to maintain the effectiveness of such Registration Statement thereafter, as set forth in the Registration Rights Agreement. 
 10. Registration Effectiveness Default. In the event that the Company fails to have the Registration Statement deemed effective by the SEC by the
date that is 60 days after the Filing Date, in the event the SEC has no comments on the Registration Statement, or by the date that is 120 days after the Filing Date in the event the SEC has comments on the Registration Statement, or maintain the
effectiveness of the Registration Statement thereafter (each, a “Registration Effectiveness Default”), then the Company shall pay Purchaser an amount equal to $6,250 for each day that such Registration Effectiveness Default
remains uncured; provided, however, that the obligation of the Company to pay such amount shall cease on the second anniversary of the Closing Date. 
 11. Notices. All communications hereunder shall be in writing and shall be hand delivered, mailed by first-class mail, couriered by next-day air courier or by facsimile and confirmed in writing (i) if to
the Company, at the addresses set forth below, or (ii) if to a Purchaser, to the address set forth for such party on the signature page hereto. 
 If to the Company: 
 Diametrics Medical, Inc. 
 6033 West Century Blvd., Suite 850 
 Los Angeles, CA 90045 
 Attention: W. Bruce Comer III 
 Telephone No.: (310) 670-2721 
 Facsimile No.: (310) 670-4107 

 with a copy to (which shall not constitute notice): 
 Sidley Austin LLP 
 555 West Fifth Street, Suite 4000 
 Los Angeles, CA 90013 
 Attention: Stephen D. Blevit, Esq. 
 Telephone No.: (213) 896-6029 
 Facsimile No.: (213) 896-6600 
 If to the Purchasers: 
 M.A.G. Capital, LLC 
 555 South Flower Street, Suite 4200 
 Los Angeles, California 90071 
 Attention: David Firestone 
 Facsimile: (213) 533-8285 
 with a copy to (which shall not constitute notice): 
 Justin O’Neill 
 Latham & Watkins LLP 
 633 West Fifth Street, Suite 4000 
 Los Angeles, California 90071 
 Facsimile: (213) 891-8763 
 All such
notices and communications shall be deemed to have been duly given: (i) when delivered by hand, if personally delivered; (ii) five business days after being deposited in the mail, postage prepaid, if mailed certified mail, return receipt
requested; (iii) one business day after being timely delivered to a next-day air courier guaranteeing overnight delivery; (iv) the date of transmission if sent via facsimile to the facsimile number as set forth in this Section or the
signature page hereof prior to 6:00 p.m. (New York time) on a business day, or (v) the business day following the date of transmission if sent via facsimile at a facsimile number set forth in this Section or on the signature page hereof after
6:00 p.m. (New York time) or on a date that is not a business day. Change of a party’s address or facsimile number may be designated hereunder by giving notice to all of the other parties hereto in accordance with this Section. 
 12. Survival Clause. If the Closing occurs, the respective representations, warranties, agreements and covenants of the Company and each Purchaser
set forth in this Agreement shall survive until the second anniversary of the Closing. 
 13. Fees and Expenses. On the Closing Date,
the Company shall pay (i) MAG’s legal expenses incurred in connection with the preparation and negotiation of the 

 Transaction Documents, up to a maximum amount of $25,000.00, and (ii) a due diligence fee to MAG payable by wire
transfer of $410,000.00 in immediately available funds to an account designated by MAG. 
 14. Attorneys’ Fees. If any action at
law or in equity is necessary to enforce or interpret the terms of this Agreement or the Certificate of Designations, the prevailing party or parties shall be entitled to receive from the other party or parties reasonable attorneys’ fees, costs
and necessary disbursements in addition to any other relief to which the prevailing party or parties may be entitled. 
 15.
Successors. This Agreement shall inure to the benefit of and be binding upon each Purchaser and the Company and their respective successors and legal representatives, and nothing expressed or mentioned in this Agreement is intended or shall
be construed to give any other person any legal or equitable right, remedy or claim under or in respect of this Agreement, or any provisions herein contained; this Agreement and all conditions and provisions hereof being intended to be and being for
the sole and exclusive benefit of such persons and for the benefit of no other person. The Company may not assign this Agreement or any rights or obligations hereunder without the prior written consent of a majority in interest of the Purchasers; no
Purchaser may assign this Agreement or any rights or obligations hereunder without the prior written consent of the Company. For the sake of clarity, the reincorporation of the Company in Delaware shall not be regarded to give rise to an assignment
for which consent of any Purchaser is required under this Section 15. 
 16. No Waiver; Modifications in Writing. No failure or
delay on the part of the Company or any Purchaser in exercising any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy preclude any other or further
exercise thereof or the exercise of any other right, power or remedy. The remedies provided for herein are cumulative and are not exclusive of any remedies that may be available to the Company or the Purchasers at law or in equity or otherwise. No
waiver of or consent to any departure by the Company or the Purchasers from any provision of this Agreement shall be effective unless signed in writing by the party entitled to the benefit thereof, provided that notice of any such waiver shall be
given to each party hereto as set forth below. Except as otherwise provided herein, no amendment, modification or termination of any provision of this Agreement shall be effective unless signed in writing by or on behalf of the Company and a
majority in interest of the Purchasers; provided, however, that no amendment, modification or termination of any provision of this Agreement shall be effective with respect to (i) a Purchaser if such amendment, modification or
termination disproportionately effects such Purchaser, unless signed in writing by such Purchaser, or (ii) the terms of the Certificate of Designations. Any amendment, supplement or modification of or to any provision of this Agreement, any
waiver of any provision of this Agreement, and any consent to any departure by the Company or any Purchaser from the terms of any provision of this Agreement shall be effective only in the specific instance and for the specific purpose for which
made or given. Except where notice is specifically required by this Agreement, no notice to or demand on the Company in any case shall entitle the Company to any other or further notice or demand in similar or other circumstances. 

 17. Entire Agreement. This Agreement, together with the Transaction Documents, constitutes the
entire agreement among the parties hereto and supersedes all prior agreements, understandings and arrangements, oral or written, among the parties hereto with respect to the subject matter hereof and thereof. 
 18. Severability. If any provision of this Agreement is held to be invalid or unenforceable in any respect, the validity and enforceability of the
remaining terms and provisions of this Agreement shall not in any way be affected or impaired thereby. 
 19. APPLICABLE LAW;
JURISDICTION. THE VALIDITY AND INTERPRETATION OF THIS AGREEMENT, AND THE TERMS AND CONDITIONS SET FORTH HEREIN SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO PROVISIONS RELATING
TO CONFLICTS OF LAW TO THE EXTENT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. To the fullest extent permitted by applicable law, the parties hereto hereby irrevocably submit to the non-exclusive jurisdiction of any
New York State court or federal court sitting in the Borough of Manhattan in respect of any suit, action or proceeding arising out of or relating to the provisions of this Agreement and irrevocably agree that all claims in respect of any such suit,
action or proceeding may be heard and determined in any such court. The parties hereto hereby waive, to the fullest extent permitted by applicable law, any objection that they may now or hereafter have to the laying of venue of any such suit, action
or proceeding brought in any such court, and any claim that any such suit, action or proceeding brought in any such court has been brought in an inconvenient forum. The parties hereto hereby waive, to the fullest extent permitted by applicable law,
any right to trial by jury with respect to any action or proceeding arising out of or relating to this Agreement. 
 20. Counterparts.
This Agreement may be executed in two or more counterparts and may be delivered by facsimile transmission, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 21. If the foregoing correctly sets forth our understanding, please indicate your acceptance thereof in the space provided below for that purpose,
whereupon this Agreement shall constitute a binding agreement between the Company and each of the Purchasers. 
  

			
	Very truly yours,
	
	Diametrics Medical, Inc.
		
	 By:
	 	 /s/ W. Bruce Comer III

		 	Name: W. Bruce Comer III
		 	Title: Chief Executive Officer

 [Counterpart Purchaser Signature Page Follows] 

 Schedules 
  
 Schedule A – Amount of Preferred Stock to be Purchased by Each Purchaser 
 Schedule B – Capitalization 
 Schedule C – Company’s Intended Use of Proceeds 
  

 -1- 

 Exhibit A 
 Form of Certificate of Designations 
 of 
 Diametrics Medical, Inc. 
 of 
 Series J Convertible Preferred Stock 
 Exhibit B 
 Form of Registration Rights Agreement 
 Exhibit C-1 
 Matters to be covered in Opinion of Minnesota Law Counsel 
 Exhibit C-2 
 Matters to be covered in
Opinion of Securities Law Counsel 
  

 -1-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00110-of-00352.parquet"}]]