DIAMETRICS MEDICAL INC
EX-10.16
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<TYPE>EX-10.16
<SEQUENCE>9
<FILENAME>exhibit8.htm
<DESCRIPTION>EX-10.16
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<P align="right" style="font-size: 10pt"><FONT style="font-size: 12pt">EXHIBIT 10.16</FONT>



<P align="center" style="font-size: 12pt"><FONT style="font-size: 14pt"><B>AMENDMENT</B></FONT>



<P align="left" style="font-size: 14pt; text-indent: 4%"><FONT style="font-size: 12pt">Reference is made to (i)&nbsp;the Subscription Agreement, dated as of May&nbsp;28, 2004 (the
&#147;Series&nbsp;G Subscription Agreement&#148;), among Diametrics Medical, Inc. (the &#147;Company&#148;) and BCC
Acquisition II, LLC, Mercator Momentum Fund, LP, Mercator Momentum Fund III LP and Monarch Pointe,
Ltd. (collectively, the &#147;Purchasers&#148;), and (ii)&nbsp;the Common Stock Purchase Warrants of the Company
dated May&nbsp;28, 2004, issued to the Purchasers (the &#147;Series&nbsp;G Warrants&#148;). <U>Schedule&nbsp;A</U> hereto
sets forth the number of Series&nbsp;G Warrants currently held by the Purchasers.</FONT>


<P align="left" style="font-size: 12pt; text-indent: 4%">This Amendment is being signed in connection with and as a condition precedent to the issuance
of up to $3,000,000 in aggregate principal amount of convertible notes (the &#147;Convertible Notes&#148;) to
be issued pursuant to that certain Subscription Agreement dated December&nbsp;14, 2004 among the Company
and the purchasers parties thereto.



<P align="left" style="margin-left:4%; font-size: 12pt">The Company and each Purchaser hereby agree as follows:


<P align="left" style="font-size: 12pt; text-indent: 4%">1.&nbsp;Paragraph&nbsp;1.1 of the Series&nbsp;G Warrants is hereby amended in its entirety to read as
follows:



<P align="left" style="margin-left:4%; font-size: 12pt; text-indent: 4%">&#147;This Warrant is exercisable in whole or in part (but not as to any fractional share of
Common Stock), at any time and from time to time, but prior to 6:00 p.m. on the Expiration
Date set forth above.&#148;


<P align="left" style="font-size: 12pt; text-indent: 4%">2.&nbsp;Paragraph&nbsp;1.2 of the Series&nbsp;G Warrants is hereby amended in its entirety to provide that
the exercise price shall be $0.025 per share.


<P align="left" style="font-size: 12pt; text-indent: 4%">3.&nbsp;Each Purchaser acknowledges and agrees that any pledge of assets by the Company in
connection the issuance of the Convertible Notes shall not be deemed as a liquidation pursuant to
paragraph (d)(iii) of the Certificate of Designations of Series&nbsp;G Convertible Preferred Stock of
the Company.


<P align="left" style="font-size: 12pt; text-indent: 4%">4.&nbsp;Except as hereby amended, all other terms of the Series&nbsp;G Subscription Agreement and the
Series&nbsp;G Warrants remain in full force and effect.


<P align="left" style="font-size: 12pt; text-indent: 4%">5.&nbsp;The validity, construction and enforceability of this Amendment shall be governed by the
internal law of the State of Minnesota, without regard to conflict of law principles.


<P align="left" style="font-size: 12pt; text-indent: 4%">6.&nbsp;This Amendment may be executed in any number of counterparts and by the different parties
on separate counterparts, and each such counterpart shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same document.


<P align="left" style="font-size: 12pt; text-indent: 4%">7.&nbsp;This Amendment shall be binding upon the Company, the Purchasers and their respective
successors and assigns, and shall inure to the sole benefit of the Company, the Purchasers and the
successors and assigns of the Company and the Purchasers.

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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Dated: December&nbsp;15, 2004
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">DIAMETRICS MEDICAL, INC.<BR>
By: /s/ David B. Kaysen<BR>
Name: David B. Kaysen<BR>
Title: President and CEO</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">BCC ACQUISITION II, LLC<BR>
By: /s/ Fred Craves<BR>
Name: Fred Craves<BR>
Title: Managing Director, Bay City Capital<BR>
Management LLC</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MERCATOR MOMENTUM FUND, LP<BR>
By: /s/ David Firestone<BR>
Name: David Firestone<BR>
Title: Managing Member, Mercator Advisory<BR>
Group LLC</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MERCATOR MOMENTUM FUND III, LP<BR>
By: /s/ David Firestone<BR>
Name: David Firestone<BR>
Title: Managing Member, Mercator Advisory<BR>
Group LLC</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MONARCH POINTE, LTD.<BR>
By: /s/ David Firestone<BR>
Name: David Firestone<BR>
Title: Managing Member, Mercator Advisory<BR>
Group LLC</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">
&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MERCATOR ADVISORY GROUP, LLC<BR>
By: /s/ David Firestone<BR>
Name: David Firestone<BR>
Title: Managing Member</TD>
</TR>

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    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
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<P align="center" style="font-size: 10pt; display: none">1
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<P align="right" style="font-size: 12pt"><B>Schedule&nbsp;A</B>



<P align="center" style="font-size: 12pt"><B>Series&nbsp;G Warrants</B>


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    <TD><DIV style="margin-left:10px; text-indent:-10px">BCC Acquisition II LLC</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">1,000,000</TD>
    <TD>&nbsp;</TD>
</TR>

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    <TD><DIV style="margin-left:10px; text-indent:-10px">Mercator Momentum Fund, LP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83,333</TD>
    <TD>&nbsp;</TD>
</TR>

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    <TD><DIV style="margin-left:10px; text-indent:-10px">Mercator Momentum Fund III, LP</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83,333</TD>
    <TD>&nbsp;</TD>
</TR>

<TR valign="bottom" style="font-size: 12pt">
    <TD><DIV style="margin-left:10px; text-indent:-10px">Monarch Pointe, Ltd.</DIV></TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="right">83,334</TD>
    <TD>&nbsp;</TD>
</TR>

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<P align="center" style="font-size: 10pt; display: none">2


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