Document:

Exhibit 10.2

Exhibit 10.2

EXECUTION VERSION

INDEMNIFICATION AGREEMENT

THIS INDEMNIFICATION AGREEMENT (this “Agreement”) is made as of September 25, 2009 by and
among SANUWAVE, Inc. (“SANUWAVE”), a Delaware corporation, Rub Music Enterprises, Inc., a Nevada
corporation (“RME”) and David N. Nemelka (“Nemelka”), an individual resident of the State of Utah.

RECITALS

WHEREAS, SANUWAVE, RME, and RME Delaware Merger Sub, Inc., a Delaware Corporation (“Merger
Sub”) entered into that certain Agreement and Plan of Merger, dated as of September 25, 2009 (the
“Merger Agreement”) whereby Merger Sub will merge with and into SANUWAVE, with SANUWAVE as the
surviving corporation (the “Merger”);

WHEREAS, Nemelka will directly benefit from the Merger; and

WHEREAS, the Merger Agreement requires, as one of the conditions to the obligation of SANUWAVE
to close the transactions contemplated by the Merger Agreement, that Nemelka provide the
indemnification detailed in this Agreement.

NOW, THEREFORE, in consideration of the foregoing, the mutual covenants hereinafter set forth
and other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, Nemelka agrees to be legally bound as follows:

	 	1.	 	Definitions.

	 	a.	 	All capitalized terms not defined in this Agreement shall have the meanings
given such terms in the Merger Agreement.

	 	b.	 	“Contract Documents” means the Merger Agreement and any and all other documents
comprising the entire documentation relating to, pertaining to or delivered in
connection with, the Merger Agreement.

	 	c.	 	“Loss” or “Losses” means any and all damages (including incidental, punitive,
exemplary and consequential damages), fines, fees, penalties, deficiencies, diminution
in value, losses and expenses (including the fees of attorneys and accountants) whether
or not arising from a Third Party Claim.

	 	2.	 	Survival. Notwithstanding the provisions of the Merger Agreement with respect to survival,
or the merger clause set forth in the Merger Agreement, for purposes of this Agreement, all
representations and warranties contained in Article III of the Merger Agreement and
all covenants of RME and Merger Sub contained in the Merger Agreement shall survive the
Closing.

 

 

	 	3.	 	Indemnification by Nemelka. Subject to the other provisions of this Agreement, from and
after the Closing, Nemelka shall indemnify, hold harmless and reimburse RME, SANUWAVE and
its officers, directors, agents and representatives (each an “Indemnified
Party” and collectively, the “Indemnified Parties”) from and against and in respect of any and
all Losses that may be imposed on, sustained, incurred or suffered by or assessed against each
Indemnified Party, directly or indirectly, to the extent relating to or arising out of or in
connection with:

(i) any breach of any of the representations or warranties contained in Article III
of the Merger Agreement;

(ii) any failure by RME or Merger Sub to perform or comply with their covenants and
agreements contained in the Merger Agreement;

(iii) any liability or obligation of RME existing as of the Closing Date, other than those
liabilities and obligations set forth on Exhibit A; or

(iv) any Third Party Claim (defined below) asserted against any Indemnified Party related to
the operation of RME’s business, the sale or transfer of RME’s securities (including repurchases
and cancellations of securities effected immediately prior to the closing of the Merger) prior to
the closing of the Merger.

	 	4.	 	Timing of Delivery of Notice of Claim. Nemelka’s obligations under Paragraph 3 of
this Agreement shall terminate at midnight on the first anniversary of the Closing Date
except with respect to any Claim asserted pursuant to this Agreement by an Indemnified Party
prior to such time and date, which shall survive until such Claim has been satisfied or
otherwise finally resolved as provided in this Agreement.

	 	5.	 	Limitation of Liability. The Indemnified Party’s maximum aggregate indemnification
liability pursuant to Paragraph 3 shall be an amount equal to one hundred thousand
dollars ($100,000) plus the net proceeds value of the RME stock held by Nemelka and his
Affiliates or his family members at the time a payment is made hereunder, plus the amount of
any proceeds Nemelka and his Affiliates or his family members have received from the sale of
RME stock at any time after the date hereof until midnight on the first anniversary of the
Closing Date.

	 	6.	 	Notice of Claim. If the Indemnified Party shall become aware of any claim, proceeding or
other matter (a “Claim”), that may give rise to a Loss that will be taken into account for
purposes of calculating the amount of any indemnity obligation under this Agreement, the
Indemnified Party shall promptly give notice thereof to Nemelka. Such notice shall specify
whether the Claim arises as a result of a Claim by a third party against the Indemnified
Party (a “Third Party Claim”) or whether the Claim does not so arise as a result of a Claim
by a third party against the Indemnified Party (a “Direct Claim”), and shall also specify
with reasonable particularity (to the extent that the information is available) the factual
basis for the Claim and the amount of the Claim, if known. If the Indemnified Party does not
promptly give Notice of any Claim as specified above, such failure shall not affect the
Indemnified Party’s right to indemnification hereunder for Losses in connection with such
Claim, except and only to the extent Nemelka’s rights are prejudiced by such failure.

 

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	 	7.	 	Direct Claims. With respect to any Direct Claim, following receipt of notice from the
Indemnified Party of the Claim, Nemelka shall have ninety (90) days to make such
investigation of the Claim as he considers necessary or desirable. For the purpose of such
investigation, the Indemnified Party shall make available to Nemelka the information relied
upon by the Indemnified Party to substantiate the Claim, together with all such other
information as Nemelka may reasonably request. If all parties agree at or prior to the
expiration of such 90-day period (or any mutually agreed upon extension thereof) to the
validity and amount of such Claim, Nemelka shall immediately pay to the Indemnified Party the
full agreed upon amount of the Claim. If the parties do not agree, such dispute shall be
determined in accordance with Paragraph 19.

	 	8.	 	Third Party Claims.

i. With respect to any Third Party Claims as to which the Indemnified Party intends to
seek indemnity from Nemelka, Nemelka shall have the right, at his expense and at his election,
to assume control of the negotiation, settlement and defense of the Claim through counsel of
his choice; provided, however, that Nemelka shall have no right to assume
control of the negotiation, settlement or defense of any Third Party Claim (i) insofar as such
Third Party Claim would have a material adverse effect on the Indemnified Party if resolved
adversely to the interests of the Indemnified Party, or seeks as a remedy against the
Indemnified Person any injunctive or other equitable relief or criminal penalty, and (ii)
unless Nemelka acknowledges in writing to the Indemnified Party his liability hereunder to
indemnify, hold harmless and reimburse the Indemnified Party in accordance herewith for all
Losses arising in connection with such Third Party Claim. The election of Nemelka to assume
such control shall be made within thirty (30) days of receipt of notice of the Third Party
Claim, failing which Nemelka shall be deemed to have elected not to assume such control. If
Nemelka elects to assume such control, the Indemnified Party shall have the right to be
informed and consulted with respect to the negotiation, settlement or defenses of such Third
Party Claim and to retain counsel to act on its behalf, but the fees and disbursements of such
counsel shall be paid by the Indemnified Party unless Nemelka consents to the retention of such
counsel or unless the named parties to any action or proceeding include both Nemelka and the
Indemnified Party and a representation of both Nemelka and the Indemnified Party by the same
counsel would be inappropriate due to the actual or potential differing interests between them
(such as the availability of different defenses). If Nemelka, having elected to assume such
control, thereafter fails to defend the Third Party Claim within a reasonable period of time,
the Indemnified Party shall be entitled to assume such control, and Nemelka shall be bound by
the results obtained by the Indemnified Party with respect to the Third Party Claim.

ii. If Nemelka assumes control of the negotiation, settlement or defense of any Third
Party Claim, Nemelka shall not settle any such Third Party Claim without the written consent of
the Indemnified Party (which consent shall not be unreasonably withheld).

iii. The Indemnified Party and Nemelka shall cooperate fully with each other with respect
to Third Party Claims and, regardless of which party has control thereof as provided for
herein, shall keep each other reasonably advised with respect thereto.

 

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	 	9.	 	Effect of Investigation. The right to indemnification, payment of Losses of an Indemnified
Party or for other remedies based on any representation, warranty, covenant or obligation of
RME or Merger Sub contained in or made pursuant to the Merger Agreement shall not be affected
by (i) any investigation conducted with respect to, or any knowledge acquired (or capable or
being acquired) at any time, with respect to the accuracy or inaccuracy of or compliance
with, any such representation, warranty, covenant or obligation, or (ii) the waiver of any
condition based on the accuracy of any representation or warranty, or on the performance of
or compliance with any covenant or obligation.

	 
	 	10.	 	Notices. All notices, requests, demands, tenders or other communications required or
permitted hereunder must be in writing and are deemed to have been duly given if (a)
delivered personally, (b) mailed, certified or registered mail, return receipt requested,
postage prepaid, (c) sent by Federal Express or other nationally recognized overnight courier
service or overnight express U.S. Mail, postage prepaid, or (d) sent by facsimile or e-mail
transmission, followed with an original sent in accordance with (a), (b) or (c) above, as
follows:

	 	 	 	 	 
	 

	 	If to “Nemelka”
	 	If to “SANUWAVE” or “RME”
	 
	 	 	 	 
	 

	 	2662 Stonebury Loop Road
	 	SANUWAVE, Inc.
	 

	 	Springville, Utah 84663
	 	11680 Great Oaks Way, Suite 350
	 

	 	Fax: 801-489-7422
	 	Alpharetta, Georgia 30022
	 

	 	 	 	Attn: Barry Jenkins
	 

	 	 	 	Fax: 866-641-1182
	 
	 	 	 	 
	 

	 	With copies to (which shall not
constitute notice):
	 	With copies to (which shall not

constitute notice):
	 
	 	 	 	 
	 

	 	Cletha A. Walstrand, Esq.
	 	John C. Ethridge, Jr., Esq.
	 

	 	Attorney at Law
	 	Smith, Gambrell & Russell, LLP
	 

	 	1322 West Pachua Circle
	 	Promenade II, Suite 3100
	 

	 	Ivans, Utah 84738
	 	1230 Peachtree Street, N.E.
	 

	 	 	 	Atlanta, Georgia 30309-3592
	 

	 	 	 	Fax: 404-685-6934

Notices personally delivered or transmitted by facsimile (with confirmation of delivery) are
deemed to have been given on the date so delivered or transmitted; provided, that if the
confirmation of delivery sets forth a delivery time later than 5:00PM on any Business Day, then
the facsimile will be deemed delivered on the succeeding Business Day. Notices mailed are
deemed to have been given on the date three (3) Business Days after the date posted, and
notices sent in accordance with (c) above are deemed to have been given on the next Business
Day after delivery to the courier service or U.S. Mail (in time for next day delivery). The
parties may change their address for receipt of Notices by delivery of a Notice of change of
address in accordance with the terms of this Paragraph 10.

 

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	 	11.	 	Successors and Assigns. This Agreement shall be binding upon Nemelka and his heirs,
successors, and assigns and shall inure to the benefit of each Indemnified Party and the
heirs, successors and assigns of each respective Indemnified Party.

	 	12.	 	Conflict. To the extent there is any conflict between the provisions of this Agreement and
the Merger Agreement or the other Contract Documents, the terms of this Agreement shall
control.

	 	13.	 	No Waiver. No delay, forbearance or neglect by an Indemnified Party in the enforcement of
any of the conditions of this Agreement or any of the Indemnified Parties rights or remedies
hereunder shall constitute or be construed as a waiver thereof. No waiver of any provision
hereof, or any consent required hereunder, shall be effective unless made in writing signed
by or on behalf of the party to be charged with such waiver. No waiver shall be or be deemed
to be a continuing waiver or waiver in respect of any subsequent condition, breach or
default, either of a similar or different nature, unless expressly so stated in such writing
by an Indemnified Party.

	 	14.	 	Amendment. This Agreement may only be amended, changed or modified in a writing signed by
Nemelka and SANUWAVE.

	 	15.	 	Counterparts. This Agreement may be executed in one or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same
instrument. In the execution of this Agreement, facsimile or scanned and emailed manual
signatures shall be fully effective for all purposes.

	 	16.	 	Severability. Any term or provision of this Agreement that is held by a court of competent
jurisdiction or other authority to be invalid, void or unenforceable in any situation in any
jurisdiction shall not affect the validity or enforceability of the remaining terms and
provisions hereof or the validity or enforceability of the offending term or provision in any
other situation or in any other jurisdiction. Upon such determination that any term or other
provision is invalid, illegal or incapable of being enforced, the parties hereto shall
negotiate in good faith to modify this Agreement so as to effect the original intent of the
parties as closely as possible to the fullest extent permitted by applicable Law in an
acceptable manner to the end that the transactions are fulfilled to the extent possible.

	 	17.	 	Captions and Section Headings. Captions and section headings used herein are for
convenience only and shall not control or affect the meaning or construction of any provision
of this Agreement.

	 	18.	 	Interpretation. Words in the singular number shall be held to include the plural and vice
versa and words of one gender shall be held to include the other genders as the context
requires. The terms “hereof,” “herein” and “herewith” and words of similar import shall be
construed to refer to this Agreement in its entirety and not to any particular provision
unless otherwise stated.

 

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	 	19.	 	Governing Law. This Agreement shall be governed by and construed and interpreted in
accordance with the laws of the State of [Nevada] excluding its conflicts of laws provisions.

	 	20.	 	Construction. This Agreement shall be construed without regard to any presumption or rule
requiring construction against the party drafting any instrument or causing any instrument to
be drafted.

	 	21.	 	Entire Agreement. This Agreement represents the entire agreement of the undersigned
regarding the subject matter hereof, and supersedes all prior written or oral understandings
or agreements between the parties.

[Signature page follows]

 

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first
written above.

	 	 	 	 	 
	 	David N. Nemelka
 	 
	 	 	 
	 
	 	
SANUWAVE, Inc.
 	 
	 
	 	By:  	 	 
	 	 	Christopher M. Cashman 	 
	 	 	President and CEO 	 
	 
	 	RME

 	 
	 	By:  	 	 
	 	 	Cornelius Hofman

President 	 

Signature Page to the Indemnification Agreement

 

 

EXHIBIT A

Liabilities and Obligations

None.Exhibit 10.3

Exhibit 10.3

LOCK-UP AGREEMENT

THIS LOCK-UP AGREEMENT (this “Agreement”) is being executed and delivered as of this
 _____ 
day
of September, 2009 by and between [_____], an individual resident of the State of
[_____] (the “Shareholder”) in favor of and for the benefit of Rub Music Enterprises,
Inc., a Nevada corporation (the “Corporation”).

W I T N E S S E T H:

WHEREAS, the Shareholder, pursuant to that certain Class C Warrant Agreement, dated September

 _____ 
, 2009, is the holder of a warrant entitling the Shareholder to purchase from the Corporation
all or any part of                      shares (the “Warrant Shares”) of the Corporation’s common stock;

WHEREAS, SANUWAVE, Inc., a Delaware corporation (“SANUWAVE”), the Corporation, and RME
Delaware Merger Sub, Inc., a Delaware Corporation (“Merger Sub”) entered into that certain
Agreement and Plan of Merger, dated as of September
 _____, 2009 (the “Merger Agreement”) whereby
Merger Sub will merge with and into SANUWAVE, with SANUWAVE as the surviving corporation (the
“Merger”); and

WHEREAS, the Merger Agreement requires, as one of the conditions to the obligation of SANUWAVE
to close the transactions contemplated by the Merger Agreement, that the Shareholder agree to the
restrictions on the Warrant Shares detailed in this Agreement.

NOW, THEREFORE, in consideration of Ten and No/100 dollars and other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

1. Representations and Warranties. The Shareholder represents and warrants to the
Corporation as follows:

(a) The Shareholder agrees that [he/she/it] shall not, directly or indirectly, contract to
sell, sell, grant any option for the sale of, assign, exchange, transfer, convey, pledge, mortgage,
hypothecate, encumber, distribute or otherwise dispose of (any of the foregoing, hereinafter
referred to as a “Transfer”) any of the Warrant Shares, without the consent of the Corporation.

(b) The limits set forth in Section 1(a) shall expire on January 1, 2011.

(c) The Shareholder understands and acknowledges that the representations, warranties and
covenants set forth in this Agreement will be relied upon by the Corporation and its successors and
assigns.

 

 

 

(d) The Shareholder has carefully read this Agreement and has discussed with [his/her/its]
counsel to the extent the Shareholder felt necessary, the limitations imposed on the Shareholder by
this Agreement.

(e) The Shareholder understands that Rule 144 promulgated under the Securities Act of 1933, as
amended requires, among other conditions, a minimum holding period prior to the resale of the
Warrant Shares.

(f) The Shareholder understands that the certificates representing the Warrant Shares will
bear a restrictive legend in substantially the follow form:

THE SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF
1933, AS AMENDED, OR APPLICABLE STATE SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE,
SOLD, TRANSFERRED OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR THE
SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND APPLICABLE STATE SECURITIES LAWS, OR
(B) AN OPINION OF COUNSEL, IN A REASONABLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED UNDER
SAID ACT OR APPLICABLE STATE SECURITIES LAWS, OR (II) UNLESS SOLD PURSUANT TO RULE 144 UNDER SAID
ACT. IN ADDITION, THE SECURITIES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO THAT CERTAIN
LOCK-UP AGREEMENT, DATED SEPTEMBER
 _____, 2009.

(g) The Shareholder understands that any transfer in violation of this Agreement is null and
void.

2. Specific Performance. The Shareholder agrees that in the event of any breach or
threatened breach by such Shareholder of any covenant, obligation or other provision contained in
this Agreement, the Corporation shall be entitled (in addition to any other remedy that may be
available to the Corporation) to (a) a decree or order of specific performance or mandamus to
enforce the observance and performance of such covenant, obligation or other provision, and (b) an
injunction restraining such breach or threatened breach.

3. Notices. All notices, requests, demands, tenders or other communications required
or permitted hereunder must be in writing and are deemed to have been duly given if (a) delivered
personally, (b) mailed, certified or registered mail, return receipt requested, postage prepaid,
(c) sent by Federal Express or other nationally recognized overnight courier service or overnight
express U.S. Mail, postage prepaid, or (d) sent by facsimile or e-mail transmission, followed with
an original sent in accordance with (a), (b) or (c) above, as follows:

if to the Corporation:

Rub Music Enterprises, Inc.

11680 Great Oaks Way, Suite 350

Alpharetta, Georgia 30022

Fax: 866-641-1182

 

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if to the Shareholder: at the address and via the facsimile telephone number for such
Shareholder set forth on the signature page to this Agreement.

Notices personally delivered or transmitted by facsimile (with confirmation of delivery) are
deemed to have been given on the date so delivered or transmitted; provided, that if the
confirmation of delivery sets forth a delivery time later than 5:00PM on any business day, then the
facsimile will be deemed delivered on the succeeding business day. Notices mailed are deemed to
have been given on the date three (3) business days after the date posted, and notices sent in
accordance with (c) above are deemed to have been given on the next business day after delivery to
the courier service or U.S. Mail (in time for next day delivery). The parties may change their
address for receipt of notices by delivery of a notice of change of address in accordance with the
terms of this Paragraph 3.

4. Severability. Any term or provision of this Agreement that is held by a court of
competent jurisdiction or other authority to be invalid, void or unenforceable in any situation in
any jurisdiction shall not affect the validity or enforceability of the remaining terms and
provisions hereof or the validity or enforceability of the offending term or provision in any other
situation or in any other jurisdiction. Upon such determination that any term or other provision
is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good
faith to modify this Agreement so as to effect the original intent of the parties as closely as
possible to the fullest extent permitted by applicable law in an acceptable manner to the end that
the transactions are fulfilled to the extent possible.

5. Governing Law. This Agreement shall be governed by and construed and interpreted
in accordance with the laws of the State of Nevada excluding its conflicts of laws provisions.

6. Waiver. No failure on the part of any party hereto to exercise any power, right,
privilege or remedy under this Agreement, and no delay on the part of any party hereto in
exercising any power, right, privilege or remedy under this Agreement, shall operate as a waiver of
such power, right, privilege or remedy; and no single or partial exercise of any such power,
rights, privilege or remedy shall preclude any other or further exercise thereof or of any other
power, right, privilege or remedy. No party hereto shall be deemed to have waived any claim
arising out of this Agreement, or any power, right, privilege or remedy under this Agreement,
unless the waiver of such claim, power, right, privilege or remedy is expressly set forth in a
written instrument duly executed and delivered on behalf of such party; any such waiver shall not
be applicable or have any effect other than in the specific instance in which it is given.

7. Captions. The captions contained in this Agreement are for convenience of
reference only, shall not be deemed to be a part of this Agreement, and shall not be referred to in
connection with the construction or interpretation of this Agreement.

8. Further Assurances. The Shareholder shall execute and/or cause to be delivered to
the Corporation such instruments and other documents and shall take such other actions as the
Corporation may reasonably request to effectuate the intent and purposes of this Agreement.

 

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9. Entire Agreement. This Agreement sets forth the entire understanding of the
Corporation and the Shareholder relating to the subject matter hereof and thereof and supersede all
other prior agreements and understandings between the Corporation and the Shareholder relating to
the subject matter hereof and thereof.

10. Amendments. This Agreement may not be amended, modified, altered or supplemented
other than by means of a written instrument duly executed and delivered on behalf of the party to
be bound.

11. Assignment. Neither this Agreement nor any of the rights, interests or
obligations hereunder shall be assigned by any of the parties hereto (whether by operation of law
or otherwise) without the prior written consent of the other party. Subject to the preceding
sentence, this Agreement will be binding upon, inure to the benefit of and be enforceable by the
parties and their respective successors and assigns.

12. Attorneys’ Fees and Expenses. If any legal action or other legal proceeding
relating to the enforcement of any provision of this Agreement is brought against the Shareholder,
the prevailing party shall be entitled to recover reasonable attorneys’ fees, costs and
disbursements (in addition to any other relief to which the prevailing party may be entitled).

13. Construction. Each of the parties has agreed to the use of the particular
language of the provisions of this Agreement, and any questions of doubtful interpretation shall
not be resolved solely by any rule or interpretation against the draftsman, but rather in
accordance with the fair meaning thereof.

14. Expenses. The Shareholder shall bear [his/its] own expenses incurred with respect
to this Agreement and the transactions contemplated hereby.

15. Counterparts. This Agreement may be executed in one or more counterparts, each of
which shall be deemed an original, but all of which together shall constitute one and the same
instrument. In the execution of this Agreement, facsimile or scanned and emailed manual signatures
shall be fully effective for all purposes.

(signatures below)

 

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

	 	 	 	 	 	 	 	 	 
	 	 	RUB MUSIC ENTERPRISES, INC.:	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	By:	 	 	 	 	 	 
	 	 	 	 	 	 
	 	 	 	Name: Cornelius Hofman	 	 
	 	 	 	Title: President	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	SHAREHOLDER:	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	 
	 	 	[___________]	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 	 	Address:	 	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 
	 	 	Fax:	 	 	 	 	 
	 

	 	 	 	 	 	 

Signature Page to Lock-Up Agreement

 

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