DIAMETRICS MEDICAL INC
EX-10.5
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<TYPE>EX-10.5
<SEQUENCE>17
<FILENAME>exhibit16.htm
<DESCRIPTION>EX-10.5
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<P align="right" style="font-size: 10pt"><FONT style="font-size: 11pt"><FONT style="font-variant: SMALL-CAPS">Exhibit&nbsp;10.5</FONT></FONT>



<P align="center" style="font-size: 11pt"><FONT style="font-variant: SMALL-CAPS"><B>TRADEMARK SECURITY AGREEMENT</B></FONT>



<P align="left" style="font-size: 11pt; text-indent: 8%">TRADEMARK SECURITY AGREEMENT, dated as of December&nbsp;15, 2004, by Diametrics Medical, Inc., a
Minnesota corporation (&#147;<U>Grantor</U>&#148;), in favor of Barbara R. Mittman (&#147;<U>Collateral
Agent</U>&#148;), acting on behalf of certain obligees of Grantor, namely Longview Equity Fund, LP,
Longview Fund L.P., Longview International Equity Fund L.P., Mercator Momentum Fund III L.P.,
Mercator Momentum Fund L.P., Monarch Pointe Fund, Ltd., and Camden International (collectively with
Collateral Agent referred to herein as the &#147;<U>Note Holders</U>&#148;).


<P align="center" style="font-size: 11pt"><FONT style="font-variant: SMALL-CAPS"><B>W I T N E S S E T H:</B></FONT>



<P align="left" style="font-size: 11pt; text-indent: 8%">WHEREAS, Grantor, Barbara R. Mittman, Longview Equity Fund, LP, Longview Fund L.P., Longview
International Equity Fund L.P., Mercator Momentum Fund III L.P., Mercator Momentum Fund L.P.,
Monarch Pointe Fund, Ltd., and Camden International are parties to that certain Subscription
Agreement, dated as of December&nbsp;14, 2004; and


<P align="left" style="font-size: 11pt; text-indent: 8%">WHEREAS, Grantor agreed to grant a security interest to Barbara R. Mittman as Collateral Agent
for the Note Holders in all of Grantor&#146;s right, title and interest in and to all Collateral as
defined in, and pursuant to a Security and Pledge Agreement, dated as of December&nbsp;15, 2004
(&#147;<U>Security Agreement</U>&#148;); and


<P align="left" style="font-size: 11pt; text-indent: 8%">NOW, THEREFORE, in consideration of the premises and mutual covenants herein contained and for
other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Grantor hereby agrees as follows:


<P align="left" style="font-size: 11pt; text-indent: 4%"><FONT style="font-size: 12pt">1. </FONT><FONT style="font-size: 11pt"><U>GRANT OF SECURITY INTEREST IN TRADEMARK COLLATERAL</U>. Grantor hereby
grants to Collateral Agent, on behalf of itself and the Note Holders, a continuing first priority
security interest in all of Grantor&#146;s right, title and interest in, to and under the following,
whether presently existing or hereafter created or acquired (collectively, the &#147;<U>Trademark
Collateral</U>&#148;):</FONT>


<P align="left" style="margin-left:4%; margin-right:4%; font-size: 11pt; text-indent: 4%"><FONT style="font-size: 12pt">(a) </FONT><FONT style="font-size: 11pt">all of its trademarks, trade names, trade styles, corporate
names, business names, service marks, logos, internet domain names, other sources of
business identifiers, prints and labels on which any of the foregoing have appeared
or appear, and trademark and service mark applications (&#147;<U>Trademarks</U>&#148;) and
all licenses and rights to use any of the Trademarks (&#147;<U>Trademark Licenses</U>&#148;)
to which it is a party including but not limited to those referred to on Schedule&nbsp;1
hereto which Grantor represents and warrants is a complete list of all such
Trademarks and Trademark Licenses owned by Grantor as of the date hereof;</FONT>


<P align="left" style="margin-left:8%; margin-right:4%; font-size: 11pt"><FONT style="font-size: 12pt">(b) </FONT><FONT style="font-size: 11pt">all reissues, continuations or extensions of the foregoing;</FONT>


<P align="left" style="margin-left:4%; margin-right:4%; font-size: 11pt; text-indent: 4%"><FONT style="font-size: 12pt">(c) </FONT><FONT style="font-size: 11pt">all goodwill of the business connected with the use of, and
symbolized by each Trademark and each Trademark License; and</FONT>


<P align="left" style="margin-left:4%; margin-right:4%; font-size: 11pt; text-indent: 4%"><FONT style="font-size: 12pt">(d) </FONT><FONT style="font-size: 11pt">all products and proceeds of the foregoing, including, without
limitation, any claim or right to claim by Grantor against third parties for past,
present or future (i)&nbsp;infringement or dilution of any Trademark or Trademark
licensed under any Trademark License or (ii)&nbsp;injury to the goodwill associated with
any Trademark or any Trademark licensed under any Trademark License.</FONT>


<P align="left" style="font-size: 11pt; text-indent: 4%"><FONT style="font-size: 12pt">2. </FONT><FONT style="font-size: 11pt"><U>SECURITY AGREEMENT</U>. The security interests granted pursuant to this
Trademark Security Agreement are granted in conjunction with the security interests granted to the
Collateral Agent and the Note Holders, pursuant to the Security Agreement. Grantor hereby
acknowledges and affirms that the rights and remedies of the Collateral Agent with respect to the
security interest in the Trademark Collateral made and granted hereby are more fully set forth in
the Security Agreement, the terms and provisions of which are incorporated by reference herein as
if fully set forth herein.</FONT>


<P align="center" style="font-size: 11pt">&#091;signature page follows&#093;



<P align="center" style="font-size: 10pt; display: none">1
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<P align="left" style="font-size: 11pt; text-indent: 8%"><B>IN WITNESS WHEREOF</B>, the parties hereto have caused this Trademark Security Agreement to be
executed as of the date and year first written above.



<P align="left" style="margin-left:19%; font-size: 11pt"><B>GRANTOR</B>



<P align="left" style="margin-left:19%; font-size: 11pt">DIAMETRICS MEDICAL, INC.



<P align="left" style="margin-left:19%; font-size: 11pt">By: /s/ David Kaysen


<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 11pt; color: #000000; background: transparent">
    <TD width="19%" style="background: transparent">&nbsp;</TD>
    <TD width="1%" nowrap align="right">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>Name: David Kaysen<BR>
Title: Chief Executive Officer and President</TD>
</TR>

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<P align="left" style="margin-left:19%; font-size: 11pt"><B>THE SECURED PARTY</B>


<P align="left" style="font-size: 11pt">/s/ Barbara R. Mittman
<BR>
BARBARA R. MITTMAN, as Collateral Agent

<DIV align="center">
<TABLE style="font-size: 11pt" cellspacing="0" border="0" cellpadding="0" width="95%">
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<TR valign="bottom">
    <TD width="50%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="45%">&nbsp;</TD>
</TR>

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<TR valign="bottom" style="font-size: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">LONGVIEW EQUITY FUND, L.P.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">LONGVIEW FUND L.P.</TD>
</TR>

<TR valign="bottom" style="font-size: 11pt">
    <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: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By: /s/ Wayne H. Coleson<BR>
Its: Investment Advisor
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By: /s/ S. Michael Rudolph<BR>
Its: Investment Advisor</TD>
</TR>

<TR valign="bottom" style="font-size: 11pt">
    <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: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">LONGVIEW INTERNATIONAL EQUITY<BR>
FUND, L.P.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">CAMDEN INTERNATIONAL<BR>
<BR></TD>
</TR>

<TR valign="bottom" style="font-size: 11pt">
    <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: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By: /s/ Wayne H. Coleson<BR>
Its: Investment Advisor
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By: /s/ Deirdre M. McCoy<BR>
Its: Director</TD>
</TR>

<TR valign="bottom" style="font-size: 11pt">
    <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: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">MERCATOR MOMENTUM FUND III L.P.<BR>
By: Mercator Advisory Group, LLC<BR>
Its: General Partner
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">MERCATOR MOMENTUM FUND L.P.<BR>
By: Mercator Advisory Group, LLC<BR>
Its: General Partner</TD>
</TR>

<TR valign="bottom" style="font-size: 11pt">
    <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: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By: /s/ David Firestone<BR>
Its: Managing Member
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By: /s/ David Firestone<BR>
Its: Managing Member</TD>
</TR>

<TR valign="bottom" style="font-size: 11pt">
    <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: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">MONARCH POINTE FUND, LTD.
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR></TD>
</TR>

<TR valign="bottom" style="font-size: 11pt">
    <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: 11pt">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">By: /s/ David Firestone
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><BR></TD>
</TR>

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<P align="left" style="font-size: 11pt"><FONT style="font-size: 12pt">Its: Managing Member</FONT>


<P align="center" style="font-size: 10pt; display: none">2
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<P align="center" style="font-size: 12pt"><FONT style="font-size: 11pt"><FONT style="font-variant: SMALL-CAPS"><B>SCHEDULE 1</B></FONT></FONT>



<P align="center" style="font-size: 11pt"><FONT style="font-variant: SMALL-CAPS"><B>to</B></FONT>



<P align="center" style="font-size: 11pt"><FONT style="font-variant: SMALL-CAPS"><B>TRADEMARK SECURITY AGREEMENT</B></FONT>



<P align="center" style="font-size: 11pt"><FONT style="font-variant: SMALL-CAPS"><U><B>TRADEMARK REGISTRATIONS</B></FONT></U>



<P align="left" style="font-size: 11pt">MarkReg. No.&nbsp;Date


<P align="left" style="font-size: 11pt"><FONT style="font-size: 9pt">Diametrics Medical, Incorporated (trademark &#038; logo) 1,865,236, S/N 74/344,546 Renewal required
11.29.2004
<BR>
Diametrics Medical, Inc. 1,864,228, S/N 74-343,125 Renewal required 11.22.2004
<BR>
TrendCare 2,318,862, S/N 75- 611,207</FONT>


<P align="left" style="font-size: 9pt"><FONT style="font-size: 11pt">TRADEMARK APPLICATIONS</FONT>


<P align="left" style="font-size: 11pt">TRADEMARK LICENSES



<P align="center" style="font-size: 10pt; display: none">3


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