Document:

Exhibit 10.4

                              EMPLOYMENT AGREEMENT

      Agreement made as of July 1, 2004, between MEDASORB TECHNOLOGIES, LLC, a
Delaware Limited Liability Company with offices at 7 Deer Park Drive, Suite K,
Monmouth Junction, NJ 08852 ("MEDASORB") and DR. JAMES WINCHESTER, an individual
residing at 1323 Pine Tree Road, McLean, Virginia 22101-2416 ("WINCHESTER")

                                    RECITALS

      WHEREAS, MEDASORB is engaged in the development and sale of certain
medical technology including the development and production of a polymer resin
useful in the treatment of blood purification, and

      WHEREAS, MEDASORB desires to employ WINCHESTER, and WINCHESTER desires to
serve MEDASORB as its Chief Medical Officer ("CMO") with administrative and
technical responsibilities.

                               TERMS OF AGREEMENT

In consideration of the foregoing and the mutual promises set forth below, the
parties agree as follows:

1.    TERM:

      1.1   The term of this Agreement shall be one (1) year commencing July 1,
            2004 ("Effective Date") and expiring on June 30, 2005 (the "Term").
            The Term of this Agreement shall be automatically renewed for
            successive one year periods thereafter unless within 90 days prior
            to the end of the initial term or the end of any renewal year,
            either party gives the other written notice of its intention not to
            renew in which event this Agreement shall terminate at the end of
            the initial Term or the end of that renewal year term.

2.    EMPLOYMENT DUTIES:

      2.1   So long as this Agreement continues in effect, WINCHESTER will
            devote his full business time and energies to the business and
            affairs of MEDASORB as CMO and shall not engage in any other-part or
            full-time outside employment or business activity (other than
            passive investment) unless specifically agreed to in writing by
            MEDASORB or as otherwise set forth on Exhibit A. WINCHESTER will use
            his best efforts, skill and abilities to promote MEDASORB's
            interests and perform the customary duties of a CMO including,
            without limitation: overseeing all clinical trials conducted by
            MEDASORB, which shall include interfacing with MEDASORB's product
            development department and patients, clinicians and technicians;
            organizing, implementing and managing pre-clinical studies and other
            clinical research; assisting in the management of MEDASORB by
            participating in decisions relating to product manufacture and/or
            sourcing, product development and qualification, vendor selection,
            development of technical specifications, and long-term research and
            development; and any other duties which may be reasonably assigned
            to him by the Board of Managers.

<PAGE>

3.    REMUNERATION:

      3.1   Salary: MEDASORB will pay WINCHESTER, for his services hereunder a
            base salary ("Base Salary") of One Hundred Twenty Thousand Dollars
            ($120,000) per annum, payable in accordance with the usual payroll
            practices of MEDASORB, but not less frequently than bimonthly
            installments.

      3.2   Performance Bonus Plan: WINCHESTER shall at the discretion of the
            Managers, be entitled to participate in any bonus plan provided to
            senior executives including stock option plans, profit sharing plans
            and/ or their equivalent.

4.    BENEFITS:

      4.1   Insurance

            MEDASORB will not be responsible for WINCHESTER's life, medical, or
            disability insurance. MEDASORB will continue WINCHESTER's insurance
            coverage currently in place for a period of up to 120 days from the
            date of this Agreement until such time as WINCHESTER notifies
            MEDASORB that he has established his own private insurance plan.

      4.2   Travel Expenses

            During the Term of this Agreement MEDASORB will reimburse
            WINCHESTER for approved business travel expenses incurred.

5.    VACATION TIME:

      WINCHESTER will be entitled to vacation time in accordance with the
      customary practices of MEDASORB regarding senior executives which time,
      however, shall not be less than three weeks per year. WINCHESTER shall
      take vacation hereunder during each year of this Agreement at reasonable
      times considering the business activities of MEDASORB.

6.    EXPENSES:

      MEDASORB will pay or reimburse WINCHESTER for all reasonable and necessary
      expenses incurred or paid by Employee in connection with the performance
      of his services under this Agreement, on presentation pf expense
      statements or vouchers and such other supporting information as is
      customarily required by MEDASORB.

7.    DISABILITY:

<PAGE>

      7.1   If during the Term, WINCHESTER, by reason of physical or mental
            disability or incapacity, shall be unable to perform his duties
            hereunder for ninety (90) successive days or a period of one hundred
            twenty (120) days in the aggregate in any year of the Term,
            MEDASORB, at its option, may terminate this Agreement by written
            notice to WINCHESTER given within fifteen (15) days after the end of
            such ninety (90) or one hundred twenty (120) day period.

      7.2   If this Agreement is terminated under Section 7.1, MEDASORB shall
            pay WINCHESTER his salary through the date of termination.

8.    DEATH

      If WINCHESTER should die during the Term, MEDASORB shall pay to such payee
      or payees as he has designated by written notice to MEDASORB, or in
      default of such designation then to his estate, all Base Salary and
      Benefits through the date of death.

9.    TERMINATION OF EMPLOYMENT:

      9.1   Notwithstanding any other provision of this Agreement, WINCHESTER's
            employment may be terminated prior to the end of the Term hereof as
            follows:

            9.1.1 Automatically upon the death of WINCHESTER, in which event the
                  provisions of Article 8 hereof shall govern;

            9.1.2 Upon a finding of disability of WINCHESTER pursuant to Article
                  7, in which event the provisions of that Article shall govern;

            9.1.3 At MEDASORB's option, on dismissal of WINCHESTER for "Cause".
                  "Cause" shall mean one or more of the following:

                  (a)   The willful commission by WINCHESTER of a dishonest , or
                        tortuous act, as such is reasonably and in good faith
                        determined by the Managers, with respect to MEDAORB or
                        any subsidiary or affiliate thereof; or

                  (b)   WINCHESTER is convicted of a criminal act (MEDASORB may
                        suspend WINCHESTER without pay upon indictment for
                        commission of a crime); or

                  (c)   WINCHESTER's failure to perform a substantial portion of
                        his duties and responsibilities hereunder, which failure
                        continues for more than ten (10) days after receipt by
                        WINCHESTER of written notice given by the Managers of
                        MEDASORB, setting forth in reasonable detail the nature
                        of such failure; or

<PAGE>

                  (d)   Alcoholism or drug abuse; or

                  (e)   Breach by WINCHESTER of any material provisions of this
                        Agreement or the rules or policies established by the
                        Managers; or

                  (f)   Willful misconduct or negligence by WINCHESTER in the
                        performance of his duties under this Agreement.

            9.1.4 On dissolution of MEDASORB or on cessation by MEDASORB of
                  active operations, provided in either case, not in connection
                  with the conversion of MEDASORB from a Limited Liability
                  Company to a "C" corporation.

10.   NON-DISCLOSURE OF CONFIDENTIAL INFORMATION; INVENTIONS; SHOP RIGHTS:

      10.1  WINCHESTER shall not use or disclose to any person or entity any
            confidential information relating to MEDASORB including, but not
            limited to, technical, scientific or medical information, or
            information relating to its business operations including, but not
            limited to, its customer list, financial information, sales and
            marketing data, or its manufacturing methods and/or arrangements,
            obtained during the course of his employment, without MEDASORB's
            prior written consent.

      10.2  Every invention, discovery or improvement made or conceived by
            WINCHESTER during his employment by MEDASORB, whenever or wherever
            made or conceived, and whether or not during business hours, of any
            product, tool, device, formula, or process, software program similar
            to, or which constitutes an improvement, on those heretofore, now or
            at any time during his employment, developed or used by MEDASORB in
            connection with the development, design, or process of any product
            related to MEDASORB's business, or of any product which shall or
            could reasonably be developed, designed, or marketed in the
            reasonable expansion of the business of MEDASORB, shall be and
            continue to remain MEDASORB's exclusive property without any added
            compensation or any reimbursement for expenses to WINCHESTER, and
            upon the conception of any and every such invention, discovery or
            improvement and without waiting to perfect or complete it,
            WINCHESTER promises and agrees that he will immediately disclose it
            to MEDASORB and to no one else and thenceforth will treat it as the
            property and secret of MEDASORB. WINCHESTER will also execute any
            instruments reasonably requested from time to time by MEDASORB to
            vest in MEDASORB complete title and ownership to such invention,
            discovery or improvement and will, at the request of MEDASORB, do
            such acts and execute such instruments as MEDASORB may require but
            at MEDASORB's expense to obtain Letters Patent in the United States
            and foreign countries, for such invention, discovery or improvement
            and for the purpose of vesting title thereto in MEDASORB, without
            any additional compensation of any kind to WINCHESTER.

<PAGE>

11.   COVENANTS NOT TO COMPETE AND OTHER PROVISIONS

      11.1  "Competitive Activity" as used herein shall mean (i) engaging
            directly or indirectly, on behalf of himself or in any way on behalf
            of any other person, corporation or other entity, in any advising,
            investing, consulting or other business activity including becoming
            employed by, or acting as an agent or principal or any person, firm,
            corporation or other entity that is engaged in any business activity
            relating in any manner to any product, process, service or business
            activity that competes or potentially could compete with any
            product, process, service or business activity of MEDASORB or any
            product, service or activity being developed by MEDASORB or whose
            development, to the extent WINCHESTER knows or has reason to know,
            is being contemplated by MEDASORB, including but not limited to
            products or services relating to the detoxification of blood with
            adsorbent polymers or the use of adsorbent polymers in any other
            medical application; (ii) accepting employment with or being
            directly or indirectly involved as an independent contractor,
            consultant or otherwise with any company that is, or has been at any
            time in the prior twelve months, a customer or client of MEDASORB;
            (iii) soliciting for employment or consulting, employing or
            retaining, or assisting another person to employ or retain, directly
            or indirectly, any employees of MEDASORB or any person who was an
            employee of MEDASORB in the prior twelve months; provided, however,
            that employing or retaining, or assisting another person to employ
            or retain, any person whose employment with MEDASORB has been
            terminated without Cause shall not be considered Competitive
            Activity; (iv) soliciting, contacting, or otherwise doing business
            with any person that is, or at any time in the prior twelve months
            has been, a customer, licensor, licensee, client, agent, broker or
            dealer of or for MEDASORB.

      11.2  In consideration of this Agreement WINCHESTER agrees during the Term
            and for a period ending one year following the date of termination
            of this Agreement, not to engage in any Competitive Activity, except
            as consented to by MEDASORB in writing. Notwithstanding the
            foregoing, in no event will WINCHESTER be prohibited from engaging
            in the practice of medicine as a nephrologist.

      11.3  WINCHESTER acknowledges that MEDASORB will suffer irreparable harm
            in the event WINCHESTER reveals any confidential information
            relating to MEDASORB, or during any restricted period engages or
            threatens to engage in any Competitive Activity or any activity in
            violation of this Agreement, and therefore, agrees that in addition
            to its remedies by law, MEDASORB shall be entitled to injunctive
            relief as a consequence of a violation or threatened violation of
            the provisions of this Agreement.

<PAGE>

      11.4  On the expiration or earlier termination of the Term or WINCHESTER's
            resignation, discharge or earlier departure from MEDASORB,
            WINCHESTER shall promptly surrender to MEDASORB all of MEDASORB's
            books, records, documents, and customer lists and/or other of
            MEDASORB's materials or records he may have in his possession.

12.   NOTICES:

      All notices, requests, demands and other communications hereunder shall be
      in writing and shall be deemed to have been duly given if hand delivered
      or mailed, by certified mail, return receipt requested, as follows:

      To Company:

            MedaSorb Technologies, LLC
            7 Deer Park Drive, Suite K
            Monmouth Junction, NJ  08852

      To Attorney:

            Rubin Bailin Ortoli Mayer Baker & Fry LLP
            405 Park Avenue, 15th Floor
            New York, NY 10022
            Attn. Joseph Rubin, Esq.

      To Employee:

            Dr. James Winchester
            1323 Pine Tree Road
            McLean, VA 22101-2416

      With a copy to:

      and/or to such persons and addresses as any party shall have specified in
      writing to the other by notice as aforesaid.

13.   ASSIGNABILITY:

<PAGE>

      This Agreement (a) may not be assigned by WINCHESTER and (b) shall be
      binding on MEDASORB's successors and assigns.

14.   WAIVER:

      The failure of any party at any time or times to require the performance
      of any provisions of this Agreement will in no manner affect the right at
      a later time to enforce it. No waiver by any party of any condition or of
      the breach of any term contained in this Agreement, whether by conduct or
      otherwise, in any one or more instances, will be deemed to be or construed
      as a further or continuing waiver of the breach of any other term of this
      Agreement.

15.   SEVERABILITY:

      The invalidity or unenforceability of any provision of this Agreement will
      not affect any other provision, and the remainder of the Agreement will be
      construed as if the invalid and unenforceable provision were omitted.

16.   POWERS AND AUTHORITY:

      Each party represents and warrants that it has the right, power and
      authority to enter into this Agreement, and to fully perform its
      respective obligations hereunder.

17.   ENTIRE AGREEMENT:

      This Agreement sets forth the entire agreement and understanding of the
      parties in respect of the subject matter and supercedes any and all prior
      agreements, arrangements, understandings and representations relating to
      the subject matter.

18.   GOVERNING LAW:

      This Agreement will be governed by and construed in accordance with the
      laws of the State of New York applicable to contracts made and to be
      performed entirely within that State.

19.   MISCELLANEOUS:

      19.1  Binding Effect

            This Agreement will be binding on and inure to the benefit of the
            parties hereto and their respective heirs, legal representatives,
            successors and assigns.

      19.2  Headings

            Paragraph headings are inserted for convenience or reference only
            and do not form a party of this Agreement, and no construction or
            inference will be derived therefrom.

<PAGE>

      19.3  Counterparts

            This Agreement may be executed simultaneously in two or more
            counterparts, each of which will be deemed an original, but all of
            which together will constitute one and the same instrument.

      19.4  Amendment; Waiver, Etc.

            This Agreement may be amended, modified, superceded or canceled, and
            any of its terms may be waived, only by a written instrument
            executed by each party or, in the case of a waiver, by the party or
            parties waiving compliance.

      IN WITNESS WHEREOF, the parties have caused this Agreement to be duly
executed on the day and year first above written.

                                    MEDASORB TECHNOLOGIES, LLC

                                    By:   /s/ Al Kraus
                                          -------------------------------
                                          Al Kraus, President and CEO

                                    By:   /s/ James Winchester
                                          -------------------------------
                                          James Winchester, M.D.

<PAGE>

                                    Exhibit A

      Chief Nephrologist at Beth Israel Medical Center

      Professor at Beth Israel Medical Center, includes teaching, medical care
      and other activities in conjunction with the Renal Research Institute

      Editorial Work with respect to Advances in Renal Replacement Therapy

      Adjunct Professor at Down State Medical Center

      Invited Lecturer

      Expect Witness Assignments

      Medical Association Executive PositionsUNITED
      STATES DISTRICT COURT

    FOR
      THE EASTERN DISTRICT OF PENNSYLVANIA

    

    
      	
               

              BroTech
                Corporation, et al.,

               

              Plaintiffs,

               

              -against-

               

              White
                Eagle International Technologies Group, Inc. et al.,

               

              Defendants.

            	
               

              )

              )

              )

              )

              )

              )

              )

              )

              )

              )

            	
               

               

               

               

              Civil
                Action No. 03-232

               

              STIPULATED
                ORDER AND SETTLEMENT
                AGREEMENT

            

    

    

    

    

    STIPULATED
      ORDER AND SETTLEMENT AGREEMENT

    

    by
      and
      between

    

    BRO-TECH
      CORPORATION and PUROLITE INTERNATIONAL LTD.

    

    AND

    

    MEDASORB
      CORPORATION

    

    

    Effective
      August 7, 2006 

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    

    THIS
      STIPULATED ORDER AND SETTLEMENT AGREEMENT is made and deemed effective this
      7th
      day of August, 2006, by and between Bro-Tech Corporation (“Bro-Tech”), a
      Delaware corporation, and Purolite International Ltd. (“PIL”), a United Kingdom
      corporation, and any Affilates (collectively, “Purolite”), and MedaSorb
      Corporation, successor to MedaSorb Technologies, LLC, a Delaware limited
      liability company formerly known as RenalTech International, LLC, together
      with
      White Eagle International Technologies Group and any Affiliates and successors
      to any of the foregoing (collectively, “MedaSorb”). 

     

    WHEREAS,
      Purolite, through its various affiliates, manufactures polymeric resin,
      particularly ion exchange products; and 

     

    WHEREAS,
      MedaSorb is the owner of the MedaSorb Patents (as hereafter defined) and of
      proprietary Know-How (as hereafter defined) relating to certain adsorbent
      polymers (the “Products,” as hereafter defined) and the use thereof, and is in
      the process of seeking FDA approval for certain uses of such Products; and
      

     

    WHEREAS,
      both PIL and MedaSorb have entered into agreements with Vadim Davankov for
      the
      performance of certain services; and 

     

    WHEREAS,
      Purolite has instituted a civil action in the United States District Court
      for
      the Eastern District of Pennsylvania, Civil Action No. 03-232, against MedaSorb,
      inter alia, challenging ownership rights in certain of the MedaSorb patents
      and
      for other complained of actions; and 

     

    WHEREAS,
      MedaSorb has denied any wrongdoing; and

     

    WHEREAS,
      the Parties wish to settle the aforementioned litigation on mutually agreeable
      terms without any admission of liability or wrongdoing; and 

     

    
      
        
        

      

      
        2

        
          

        

      

      
        
        

      

    

     

    NOW,
      THEREFORE, in consideration of the mutual promises herein contained and
      intending to be legally bound, the Parties agree as follows: 

    
      	1.  	
              DEFINITIONS
                

            

    

     

    As
      used
      in this Agreement, the following words and phrases shall have the following
      meanings: 

     

    “Affiliate”
      shall mean, with respect to any Person, any other Person which directly or
      indirectly through one or more intermediaries controls, is controlled by, or
      is
      under common control with, such Person. A Person shall be deemed to control
      another Person if such Person possesses, directly or indirectly, the power
      to
      direct or cause the direction of the management and policies of such Person,
      whether through the ownership of voting securities, by contract or otherwise.
      

     

    “Agreement”
      shall mean the present Stipulated Order and Settlement Agreement including
      all
      Exhibits. 

     

    “Civil
      Action” shall mean Civil Action No. 03-232 now pending in the United States
      District Court for the Eastern District of Pennsylvania. 

     

    “Competitive
      Product” shall mean a product incorporating a hemocompatible porous polymer
      designed or formulated to be used in connection with blood, and intended to
      be
      used in the medical treatment of a patient involving the extra-corporeal
      perfusion of the blood of that patient to remove toxic compounds from the blood
      of the patient, which product has been approved or applied for use with the
      US
      Food and Drug Administration for a specified indication. “Competitive Product”
shall exclude any product currently under development by Purolite with any
      Third
      Party. To Purolite’s knowledge, they are not currently developing any product
      with a third party intended for the medical treatment of a patient for sepsis
      or
      renal disease.

     

    
      
        
        

      

      
        3

        
          

        

      

      
        
        

      

    

     

    “Dale
      and
      Nikitin Assignment” shall mean the assignment to MedaSorb of Dale’s and
      Nikitin’s interests, if any, in certain inventions as specified in Section 2(a)
      below. 

    
       

    

    “Governmental
      Authority” shall mean any court, agency, authority, department, regulatory body
      or other instrumentality of any government or country or of any national,
      federal, state, provincial, regional, county, city or other political
      subdivision of any such government or any supranational organization of which
      any such country is a member, including, without limitation, the Food and Drug
      Administration, the Securities and Exchange Commission and any other regulatory
      agency that now regulates or may regulate MedaSorb. 

     

    “Know-How”
      shall mean any and all proprietary technical information, know-how, data, test
      results, knowledge, techniques, discoveries, inventions, specifications,
      designs, trade secrets, regulatory filings, and other information (whether
      or
      not patentable or patented) which is now or hereafter during the Term of this
      Agreement owned or controlled (for purposes of licensing) by, or is otherwise
      licensable by, MedaSorb, its predecessors, successors or assigns or its
      Affiliates. 

    

    “Licensee
      Sales” shall mean all arm’s length royalties, fees or other consideration paid,
      equitably attributable to or recognized by MedaSorb (or any successors or
      assigns) for licensing, sublicensing or continuing a license (other than any
      implied agreement by MedaSorb incident to the sale of Products) to permit a
      licensee or sublicensee to use the MedaSorb Patents or MedaSorb’s Know-How to
      make Products. Licensee Sales shall exclude revenue recognized and value
      received by such licensee or sublicensee in connection with sales of Product
      by
      such licensee or sublicensee but shall include, among other things, any
      royalties paid to MedaSorb in connection with such sales. Licensee Sales shall
      exclude revenue recognized and value received for the arm’s length sale, lease,
      distribution or other disposition of Products to a licensee or sublicensee.
      Licensee Sales shall also exclude any fees, consideration or other value
      recognized by MedaSorb in connection with the absolute and total sale of all
      its
      right and interests in the MedaSorb Patents and Know-How if MedaSorb assigns
      this Agreement to the assignee and the assignee agrees that it is bound under
      the terms of the Agreement in MedaSorb’s place.

     

    
      
        
        

      

      
        4

        
          

        

      

      
        
        

      

    

    “MedaSorb
      Assignment” shall mean the assignment to Bro-Tech of equal, undivided interests
      in certain of MedaSorb’s inventions as specified in Section 3(a) below.

     

    “MedaSorb
      License” shall mean the exclusive patent license granted by Purolite to MedaSorb
      as specified in Section 4(a) below.

     

    “Party”
      shall mean MedaSorb, Purolite, and their respective Affiliates. 

     

    “Person”
      shall mean and include an individual, shareholder, partnership, joint venture,
      limited liability company, a corporation, a firm, a trust, an unincorporated
      organization and a government or other department or agency thereof.

     

    “Products”
      shall mean biocompatible porous polymer or polymer based or derived product
      used
      in direct contact with blood, including, without limitation,
      CytoSorbÔ
      and
      BetaSorbÔ,
      that
      are manufactured by or for MedaSorb, its licensees, and sublicensees for the
      use, application and/or treatment of medical conditions and/or use in such
      applications including, without limitation, sepsis, the prevention of
      post-operative complications of cardiac surgery, the harvesting of organs from
      brain-dead donors, homeland security and battlefield applications, renal disease
      and veterinary applications. For the avoidance of doubt, “Products” shall
      include the porous polymer or polymer based or derived product which, if sold
      as
      part of an integral or unified device, shall include only the device which
      incorporates or retains the polymer suitable for sale directly to end users
      or
      for incorporation into a larger device or kit.

     

    
      
        
        

      

      
        5

        
          

        

      

      
        
        

      

    

    “Purolite
      Unpatented Technology” shall mean any of Purolite’s confidential or proprietary
      information, if any, currently in MedaSorb’s possession and necessary for the
      manufacture of a Product subject to payments to Purolite under Section 4 of
      this
      Agreement, but
      excluding
      any
      patents, trademarks, service marks, trade names, trade dress, domain names,
      logos and other source indicators. 

     

    “MedaSorb
      Patent Applications” shall mean the patent applications at issue in the Civil
      Action, namely U.S. Pat. App. Ser. No. 11/255,132; U.S. Pat. App. Ser. No.
      11/105,140; U.S. Pat. App. Ser. No.10/981,055; U.S. Pat. App. Ser.
      No.10/980,510; U.S. Pat. App. Ser. No. 10/038,053. 

     

    “MedaSorb
      Patents” shall mean the patents at issue in the Civil Action, namely U.S. Patent
      No. 6,878,127; U.S. Patent No. 6,303,702; U.S. Patent No. 6,159,377; U.S. Patent
      No. 6,156,851; U.S. Patent No. 6,153,707; U.S. Patent No. 6,136,424; U.S. Patent
      No. 6,133,393; U.S. Patent No. 6,114,466; U.S. Patent No. 6,087,300; U.S. Patent
      No. 5,904,663; U.S. Patent No. 6,127,311; and U.S. Patent No.
      5,773,384.

     

    “Replacement
      Product” shall mean a Product that replaces or substitutes for a Product for
      which there has already been a commercial sale, and that has been designed
      or
      formulated by MedaSorb and that is marketed and promoted by MedaSorb for the
      use, application and/or treatment of the same medical condition and/or use
      in
      the same application (including, without limitation, sepsis, the prevention
      of
      post-operative complications of cardiac surgery, the harvesting of organs from
      brain-dead donors, homeland security and battlefield applications, renal disease
      and veterinary applications) as the Product that it replaces or for which it
      substitutes. A new Product shall also be deemed a Replacement Product, even
      if
      it was not so intended, if at least 45% of the Sales of a Product for which
      there has already been a commercial sale are replaced or substituted by Sales
      of
      such new Product. 

    

    
      
        
        

      

      
        6

        
          

        

      

      
        
        

      

    

    “Sales”
      shall mean all revenue recognized and value received by MedaSorb for the first
      arm’s length sale, lease, distribution or other disposition of Products in the
      Territory to an unrelated Third Party less sales and use taxes actually paid,
      import or export duties actually paid, transportation prepaid or allowed, and
      amounts allowed or credited due to returns, with such revenue recognized and
      value received being determined in accordance with US GAAP consistently applied.
      If MedaSorb recognizes revenue or receives value for the sale, lease,
      distribution or other disposition of Products sold in combination with other
      products, MedaSorb’s average selling price for the Products as actually sold on
      a standalone basis will be used for purposes of calculating Sales revenue.
      If
      MedaSorb does not have an average selling price for a Product sold on a
      standalone basis, then Sales revenue will be calculated by subtracting 120%
      percent of the cost of goods of the other products with which the Products
      are
      sold in combination from the total revenue recognized or value received for
      the
      sale, lease, distribution or other disposition of Products combined with other
      products.

     

    “Sales
      Reports” shall mean a written report showing MedaSorb’s revenue recognized in
      connection with any Products for the for the applicable reporting period, broken
      down by category/product, including a separate category for all Sales and
      Licensee Sales. 

     

    The
      “Term” of this Agreement shall commence as of the date hereof and, subject to
      earlier termination in event of breach, shall continue in full force and effect
      for a term of eighteen years from the Effective Date of this
      Agreement.

     

    “Territory”
      shall be worldwide. 

     

    
      
        
        

      

      
        7

        
          

        

      

      
        
        

      

    

    “Third
      Party” shall mean any Person who is not a Party or an Affiliate, predecessor, or
      successor. 

     

    “Unpatented
      Technology License” shall mean the non-exclusive license to the Purolite
      Unpatented Technology granted by Purolite to MedaSorb as specified in Section
      4(b) below.

     

    
      	2.  	
              DALE
                AND NIKITIN ASSIGNMENT

            

    

     

    a.  Assignment.
      Dr.
      James Dale and Mr. Nikita Nikitin (who are currently employed by Purolite)
      and
      Purolite hereby irrevocably sell, assign, and transfer to MedaSorb all their
      right, title and interest, if any, for the United States and its territorial
      possessions and in all foreign countries to (and the right to claim priority
      of)
      the inventions which are claimed in the MedaSorb Patents and to the inventions
      which are the subject of the MedaSorb Patent Applications.

     

    
      	3.  	
              MEDASORB
                ASSIGNMENT

            

    

     

    a.  Assignment.
      MedaSorb hereby irrevocably sells, assigns, and transfers to Bro-Tech an equal,
      undivided ownership interest for the United States and its territorial
      possessions and in all foreign countries to the inventions which are claimed
      in
      the MedaSorb Patents and to the inventions which are disclosed in the MedaSorb
      Patent Applications.

     

    
      	4.  	
              LICENSES
                AND PAYMENT 

            

    

     

    a.  Exclusive
      Patent License.
      Bro-Tech
      hereby grants to MedaSorb and its Affiliates an exclusive license in, under
      and
      to all of Purolite’s right, title and interest in the MedaSorb Patents and the
      MedaSorb Patent Applications, with the right to sublicense. Such license shall
      be exclusive even as to Purolite, and, subject to the provisions of Section
      6,
      shall continue for the Term of this Agreement. During such period as
      the MedaSorb License is exclusive, MedaSorb shall have the sole right to
      enforce the MedaSorb Patents and any patents issuing from the MedaSorb Patent
      Applications,
      and
      Purolite shall provide any further assurances as may be needed to confirm
      MedaSorb’s sole right. The Court, having retained jurisdiction, shall be
      empowered to order Purolite to provide such further assurances.

     

    
      
        
        

      

      
        8

        
          

        

      

      
        
        

      

    

    b.  Unpatented
      Technology License.
      Subject
      to payment of amounts owed under subsection (c) below, Purolite hereby grants
      to
      MedaSorb a perpetual, worldwide, irrevocable, non-exclusive license to practice
      under the Purolite Unpatented Technology for manufacture of Products. This
      license may be sublicensed only to a Person manufacturing Product solely on
      MedaSorb’s behalf for commercial sale by MedaSorb or otherwise with Purolite’s
      consent. Purolite acknowledges that the disclosures in the MedaSorb Patents
      and
      in the MedaSorb Patent Applications shall not be included within the definition
      of Purolite Unpatented Technology, and that MedaSorb shall not require a license
      from Purolite to use any or all of the information and other disclosures in
      the
      MedaSorb Patents and in the MedaSorb Patent Applications for all
      purposes.

    c.  Know-How
      License.
      Effective only upon the conditions set forth in Section 6(f) below, Purolite
      is
      hereby granted an irrevocable, fully paid-up, worldwide, non-exclusive license
      to use and practice under all of MedaSorb’s Know-How for the manufacture or sale
      of Products as it then exists on the date of a final order of a court rejecting
      or terminating this Agreement. In furtherance of this grant MedaSorb agrees
      that
      upon Purolite’s receipt of the notice specified in Section 6(f) below of
      MedaSorb’s intention to file a voluntary petition under the Bankruptcy Code
      Purolite shall have the right to demand that MedaSorb fully disclose its
      Know-How. Within thirty (30) days of the notice specified in Section 6(f) below
      or before the filing of the voluntary petition (whichever is earlier), MedaSorb
      shall fully disclose to an Escrow Agent reasonably acceptable to the parties
      and
      take such other further steps as reasonably necessary to make available to
      such
      Escrow Agent the Know-How necessary or useful for the manufacture of Products.
      If MedaSorb fails to provide the notice required under Section 6(f) below,
      the
      Know-How shall immediately and automatically be considered held by the United
      States District Court for the Eastern District of Pennsylvania as a substitute
      escrow agent so as to permit it to effectuate the purposes of this Stipulated
      Order and Settlement Agreement and to the extent such occurs, shall not be
      considered a breach by MedaSorb. The Escrow Agent shall be instructed that
      upon
      a termination or rejection specified in Section 6(f) and the effectiveness
      of
      the license granted in this Section, the escrow agent shall deliver such
      Know-How to Purolite. If no such termination or rejection occurs, the Escrow
      Agent shall return all information relating to the Know-How to MedaSorb. If,
      in
      providing the Know-How to Purolite under this license, MedaSorb identifies
      certain Know-How as confidential, then Purolite will maintain such Know-How
      in
      strictest confidence for so long as MedaSorb continues to identify that Know-How
      as confidential. 

     

    
      
        
        

      

      
        9

        
          

        

      

      
        
        

      

    

    d.  Royalties
      for Sales.
      MedaSorb will pay Purolite a royalty on all Sales by MedaSorb during the Term
      of
      this Agreement as follows:

     

    
      	i.  	
              2.5%
                of Sales of each Product for three (3) years beginning with the first
                commercial Sale of each defined
                Product;

            

    

    
      	 	 

    

    
      	ii.  	
              4%
                of Sales of each Product for the two (2) years after the completion
                of the
                period defined in (i) above for each defined Product;

            

    

    
      	 	 

    

    
      	iii.  	
              5%
                of Sales of each Product for the six (6) years after the completion
                of the
                period defined in (ii) above for each defined Product;

            

    

    
      	 	 

    

    
      	iv.  	
              4%
                of Sales of each Product for the four (4) years after the completion
                of
                the period defined in (iii) above for each defined Product;
                and

            

    

    
      	 	 

    

    
      	v.  	
              2.5%
                of Sales of each Product for the remainder of the Term after the
                completion of the period defined in (iv) above for each
                defined Product.

            

    

    
      	  	 

    

    e.  Royalties
      for Replacement Products.
      Upon
      Purolite first becoming aware of a first commercial sale of any new Product
      or
      Replacement Product, Purolite shall have the right to request and obtain from
      MedaSorb sufficient details concerning the Product and its intended marketing
      and promotion to evaluate whether or not it is a Replacement Product. The
      royalty rate for a Replacement Product shall be the same as the royalty rate
      for
      the Product that it replaces or for which it substitutes. Upon the first
      commercial sale of a Replacement Product, that Replacement Product shall be
      deemed to be a Product for all other purposes under this Agreement. If Purolite
      is of the reasonable opinion that a new Product should be deemed a Replacement
      Product, then it shall provide notice to MedaSorb as provided in Section 12(f)
      below, and the parties shall meet and confer in good faith to seek to amicably
      resolve the matter. If the parties are unable to resolve the matter, the dispute
      shall be submitted exclusively by motion to the United States District Court
      for
      the Eastern District of Pennsylvania (or a Magistrate Judge in that District)
      for a binding, non-appealable determination. 

     

    f.  Payments
      to Purolite for Licensee Sales.
      MedaSorb
      will pay Purolite 20% of all Licensee Sales received by MedaSorb for the
      duration of the Term, and 20% of all Licensee Sales owed to but not received
      by
      MedaSorb before the expiration or termination of this Agreement when received
      by
      MedaSorb provided that MedaSorb uses commercially reasonable efforts to collect
      such monies owed.

     

    
      
        
        

      

      
        10

        
          

        

      

      
        
        

      

    

    g.  Payment
      Terms.
      The
      royalties and payments payable under Sections 4(c) and (d) above shall be paid
      in arrears by MedaSorb to Purolite by wire transfer of immediately available
      funds to an account specified by Purolite within forty-five (45) days of the
      end
      of every calendar quarter for the Term of this Agreement beginning with the
      end
      of the first calendar quarter in which MedaSorb first makes a commercial Sale
      of
      any Product. MedaSorb shall also submit a Sales Report to Purolite within
      forty-five (45) days of the end of each such calendar quarter.

     

    h.  Yearly
      Audits.
      During
      the Term of this Agreement and for such period reasonably necessary to conduct
      the final audit for examination, after the close of each fiscal year, Purolite’s
      auditors may, within forty-five (45) days of the close of each fiscal year
      provide reasonable prior written notice identifying the date, time and scope
      of
      the audit, audit MedaSorb’s books and records relating to Sales of Products,
      Licensee Sales and any other revenue relating to Products to verify MedaSorb’s
      Sales Reports. Each such audit shall be limited to the immediately preceding
      fiscal year, shall be strictly limited in scope to that necessary to accomplish
      the stated objective of verifying MedaSorb’s Sales Reports, and shall be
      completed promptly with the least disruption to MedaSorb as is reasonable under
      the circumstances. If Purolite does not provide the required notice within
      forty-five (45) days of any given fiscal year, it shall not be entitled to
      audit
      MedaSorb’s books and records for that fiscal year, provided however, that in the
      event any audit uncovers an understatement of Sales of Licensee Sales of more
      than 7.5%, Purolite shall have the right to audit any previously un-audited
      years books. In no event shall Purolite have the right to contact, involve
      or
      interfere with MedaSorb’s customers as part of such audit or examination.

     

    
      
        
        

      

      
        11

        
          

        

      

      
        
        

      

    

    i.  Audit
      Costs.
      All
      costs of any such audit shall be borne by Purolite, provided that if any audit
      reveals an understatement of Sales of more than 7.5% of the correct amount,
      MedaSorb shall reimburse Purolite’s reasonable costs of such audit.

     

    
      	5.  	
              PUROLITE’S
                NON-COMPETITION

            

    

    
      	 	 

    

    a.  Non-Competition
      Agreement.
      During
      the term of the Agreement, Purolite will not sell or offer for sale any
      Competitive Product to any Third Party intended for use in the approved or
      applied for indication: For the thirty-six month period beginning with the
      Effective Date of this Agreement, Purolite will not sell or offer for sale
      a
      Competitive Product to any Third Party. If, by the expiration of that thirty-six
      month period, MedaSorb has paid Purolite Two Million Five Hundred Thousand
      ($2,500,000) Dollars in royalties or other payments, then Purolite will not
      sell
      or offer for sale any Competitive Product to any Third Party intended for use
      in
      the approved or applied for indication for the succeeding twelve month period
      between the third and fourth anniversaries of the Effective Date of this
      Agreement. If, by the end of each twelve month period thereafter MedaSorb has
      paid Purolite Two Million Five Hundred Thousand ($2,500,000) Dollars for that
      twelve month period, then Purolite will not sell or offer for sale Competitive
      Product to any Third Party intended for use in the approved or applied for
      indication for the succeeding twelve month period. For the purpose of
      determining whether MedaSorb has paid Purolite Two Million Five Hundred Thousand
      ($2,500,000) Dollars in any twelve month period after the fourth anniversary
      of
      the Effective Date of this Agreement, there shall be added to the amount
      actually paid to Purolite in that twelve month period the difference, if any,
      between what MedaSorb actually paid Purolite in the immediately preceding twelve
      month period and Two Million Five Hundred Thousand ($2,500,000) Dollars. For
      example, if in the twelve month period between the fourth and fifth
      anniversaries of the Effective Date of this Agreement MedaSorb actually paid
      Purolite Three Million ($3,000,000) Dollars, MedaSorb can satisfy the Two
      Million Five Hundred Thousand ($2,500,000) Dollar requirement for the twelve
      month period between the fifth and sixth anniversaries of the Effective Date
      of
      this Agreement by adding a Five Hundred Thousand ($500,000) credit from the
      prior twelve month period ($3,000,000 minus $2,500,000) to Two Million
      ($2,000,000) Dollars in actual payments to Purolite in the twelve month period
      between the fifth and sixth anniversaries of the Effective Date of this
      Agreement.  

    
      
        
        

      

      
        12

        
          

        

      

      
        
        

      

    

    b.  Termination
      of Non-Competition Agreement.
      Purolite
      can terminate its non-competition obligation at any time by notifying MedaSorb
      as provided in Section 12(f) below of such termination. Upon delivery of such
      notice by Purolite, MedaSorb will owe no further royalties under Section 4(c)
      above or payments specified in Section 4(d) above, and subject to payment of
      any
      amounts owed and outstanding at the date of delivery of the notice, the MedaSorb
      License and Unpatented Technology License will be deemed fully paid-up. All
      other terms of this Agreement will remain in force, unchanged. Without prejudice
      to MedaSorb’s rights in the event of a material breach, no other termination of
      Purolite’s covenant not to compete, for any reason, shall in any way relieve
      MedaSorb’s payment obligations hereunder.

     

    c.  Nothing
      in Sections 5(a) or (b) above which may otherwise permit Purolite to sell or
      offer for sale Competitive Products without violation of its covenant not to
      compete shall be construed as granting any right or permission for Purolite
      to
      practice under any patent that is otherwise enforceable by MedaSorb (including
      the MedaSorb Patents and any patents that issue from the MedaSorb Patent
      Applications).

     

     

    
      	6.  	
              TERMINATION
                

            

    

     

    a.  No
      Termination.
      This
      Agreement cannot be terminated before the end of the Term defined in Section
      1
      above, except with the consent of both Parties or as provided in this Section
      6.

     

    b.  Bankruptcy.
      All
      rights and licenses granted under or pursuant to this Agreement are, and shall
      otherwise be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy
      Code and any similar laws in any other country in the Territory, licenses of
      rights to “intellectual property” as defined under Section 101(35A) of the U.S.
      Bankruptcy Code. The Parties agree that all intellectual property rights
      licensed hereunder, including, without limitation, any patents or patent
      applications in any country of a Party covered by the license grants under
      this
      Agreement, are part of the “intellectual property” as defined under Section
      101(35A) of the Bankruptcy Code subject to the protections afforded the
      non-terminating Party under Section 365(n) of the Bankruptcy Code, and any
      similar law or regulation in any other country. 

     

    c.  Material
      Breach.
      In the
      event either Party materially breaches this Agreement, the non-breaching Party
      may terminate this Agreement upon 30 days notice if during such notice period
      the breach has not been fully cured.

     

    d.  Willful
      Non-Payment.
      If,
      after the expiration of any cure period as specified in Section 6(c) above,
      the
      Parties disagree whether there has been a default in payment by MedaSorb which
      has failed to be cured in a timely manner (regardless of the cause for
      disagreement or non-payment), Purolite shall have the right to bring a legal
      action in the United States District Court for the Eastern District of
      Pennsylvania seeking an award of damages and remedies that would be available
      to
      it for breach of contract under Pennsylvania law as well as an order that the
      “exclusive” Patent License grant of Section 4(a) be converted to a
“non-exclusive” grant.

     

     

    
      
        
        

      

      
        13

        
          

        

      

      
        
        

      

    

     

    
      	i.  	
              If,
                as a result of a final ruling of that Court, MedaSorb is found to
                have
                willfully failed to pay Purolite amounts due under this Agreement
                and that
                such failure to pay was not as a result of a good faith disagreement
                concerning whether one Party has materially breached and failed to
                cure in
                a timely manner one or more obligations of this Agreement, then,
                in
                addition to all the remedies which may otherwise be available under
                applicable law, the exclusivity provision in the MedaSorb License
                shall be
                cancelled. If the exclusivity provision in the MedaSorb License is
                cancelled under this Section 6(d)(i), Purolite will not offer to
                license
                or license any rights in, under or to the MedaSorb Patents or the
                MedaSorb
                Patent Applications to any existing licensee of MedaSorb with whom
                there
                is an existing, valid license, nor to any Third Party for any product
                that
                competes with any Product manufactured, sold or offered for sale
                by any
                Third Party under an existing and subsisting exclusive license from
                MedaSorb, so long as any such MedaSorb Third Party licensee pays
                directly
                to Purolite the payments to which Purolite would otherwise be entitled
                from MedaSorb under this Agreement as a result of such license from
                MedaSorb to such Third Party. The provisions of this Section 6(d)(i)
                shall
                apply only if MedaSorb willfully fails to pay Purolite amounts due
                under
                this Agreement, and shall not apply if there is a good faith dispute
                between MedaSorb and Purolite about the amounts due under this Agreement,
                even if the Court should find that MedaSorb owes Purolite additional
                amounts as a result of that good faith dispute. Nothing in this Section
                6(d)(i) shall grant or be construed to grant Purolite any license
                in or
                other right to use MedaSorb’s Know-How nor is anything in this Section
                6.d. intended to limit or restrict Purolite from enforcing this Stipulated
                Order and Settlement Agreement .

            

    

    
        

    

    
      	ii.  	
              The
                remedies available to Purolite under this Section shall not include
                terminating the MedaSorb License and Purolite shall not be entitled
                to
                terminate the MedaSorb License even if, as a result of a final ruling
                of
                the Court, MedaSorb is found to have willfully failed to pay Purolite
                amounts due under this Agreement.

            

      	 	 

    

    
      	iii.  	
              If,
                in the course of a legal action pursuant to Section 6(d)(i), the
                Court
                finds a Party’s conduct to be sanctionable, then the Parties agree that
                the Court could award as a sanction an upward or downward prospective
                adjustment in the royalties specified in Section 4(d) above or the
                payments specified in Section 4(f)
                above.

            

    

    
       

       

      e.  Effect
        of Termination.
        Subject
        to the provisions of Section 6(d), upon termination or expiration of this
        Agreement all rights and licenses granted hereunder terminate, with the
        exception only of the Purolite Unpatented Technology License under Section
        4(b)
        and the license to Know-How provided for in Section 4(c), which shall not
        terminate. Upon such termination the Parties shall immediately cease using
        any
        patented or proprietary technology belonging entirely to the other Party
        which
        is no longer the subject of a license granted hereunder.

      
 

      
        
          
            
            

          

          
            14

            
              

            

          

          
            
            

          

        

      

      

    

    f.  MedaSorb’s
      Bankruptcy.
      If
      MedaSorb voluntarily files a petition for reorganization under the Bankruptcy
      Code, it will do so only in the United States District Court for the Eastern
      District of Pennsylvania, and only upon at least twenty-four (24) hours prior
      notice to Purolite of its intention to do so. MedaSorb or its receiver or
      trustee shall have the absolute right to assume this Agreement and all its
      provisions in accordance with the applicable bankruptcy laws for the assumption
      of executory contracts, and Purolite hereby consents to such assumption by
      MedaSorb or its receiver or trustee. If this Agreement is terminated or rejected
      by MedaSorb or its receiver or trustee under applicable bankruptcy laws in
      whole
      or in part in any respect that substantially impairs Purolite’s material rights
      under this Agreement by a final order of a court of competent jurisdiction
      in
      connection with MedaSorb’s bankruptcy following a filing by MedaSorb of a
      voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code,
      then in addition to all other remedies that it might have under applicable
      state
      or federal law, Purolite’s right and license under Section 4(c) above shall
      become fully and automatically effective.

     

    
      	7.  	
              EXPANDED
                DEFINITION OF PRODUCTS.

            

    

     

    a.  At
      any
      time after the Effective Date of this Agreement, MedaSorb may, at its option
      and
      in its sole discretion, provide Purolite with notice as provided in Section
      12(f) below of its intention to revise the definition of “Products” to that
      stated in Section 7(c) below. Effective immediately upon the notice having
      been
      deemed given as provided in Section 12(f) below, the revised definition of
      “Products” as stated in Section 7(c) shall be deemed to be the applicable
      definition of “Products” for all purposes under this Agreement for the remainder
      of the Term of this Agreement.

     

    
      
        
        

      

      
        15

        
          

        

      

      
        
        

      

    

     

    b.  If
      MedaSorb’s first commercial sale to a Third Party is of a product that would
      otherwise fall within the definition of “Product” except that it is used in
      direct contact with a physiological fluid other than blood, then the revised
      definition of “Products” as stated in Section 7(c) shall be deemed to be the
      applicable definition of “Products” for all purposes under this Agreement for
      the remainder of the Term of this Agreement.

    c.  The
      revised definition of “Products” as provided in Sections 7(a) or 7(b) above
      shall be:

     

    “Products”
      shall mean biocompatible porous polymer or polymer based or derived product
      or
      device used in direct contact with physiological fluids, including, without
      limitation, CytoSorbÔ
      and
      BetaSorbÔ,
      that
      are manufactured by or for MedaSorb, its licensees, and sublicensees for the
      use, application and/or treatment of medical conditions and/or use in such
      applications including, without limitation, sepsis, the prevention of
      post-operative complications of cardiac surgery, the harvesting of organs from
      brain-dead donors, homeland security and battlefield applications, renal disease
      and veterinary applications. 
      For the
      avoidance of doubt, “Products” shall include the porous polymer or polymer based
      or derived product which,if sold as part of an integral or unified device,
      shall
      include only the device which incorporates or retains the polymer suitable
      for
      sale directly to end users or for incorporation into a larger device or
      kit.

     

    
      	8.  	
              WARRANTIES
                

            

    

     

    a.  Due
      Organization, Valid Existence and Due Authorization.
      Each
      Party hereto represents and warrants to the other Party as follows: (a) it
      is
      duly organized and validly existing under the laws of its place of organization;
      (b) it has full power and authority and has taken all action necessary to enter
      into and perform this Agreement; (c) the execution and performance by it of
      its
      obligations hereunder will not constitute a breach of, or conflict with, its
      organizational documents nor any other material agreement or arrangement,
      whether written or oral, by which it is bound; (d) it has complied in all
      respects with all laws applicable to it; (e) this Agreement is its legal, valid
      and binding obligation, enforceable in accordance with the terms and conditions
      hereof; and (f) no broker, finder or investment banker is entitled to any
      brokerage, finder’s or other fee in connection with this Agreement or the
      transactions contemplated hereby based on arrangements made by it or on its
      behalf.

     

    b.  Purolite’s
      and MedaSorb’s Current Activity.
      Purolite
      represents and warrants that it is not currently developing any product with
      any
      Third Party which, to Purolite’s knowledge, is related to the treatment of
      sepsis or renal dialysis. MedaSorb represents and warrants that it is not
      currently developing any product which, to MedaSorb’s knowledge, is intended to
      be used in connection with physiological fluids other than blood.

     

    c.  Disclaimer.
      Except
      as expressly set forth herein, no Party makes any express or implied warranties,
      statutory or otherwise, concerning the value, adequacy, freedom from fault
      of,
      quality, efficiency, stability, characteristics or usefulness of, or
      merchantability, or fitness for a particular purpose of the Products or the
      Unpatented Purolite Technology. 

     

    
      
        
        

      

      
        16

        
          

        

      

      
        
        

      

    

     

    
      	9.  	
              CONFIDENTIALITY
                

            

    

    a.  Confidentiality.
      This
      Agreement and each of its terms, the Unpatented Purolite Technology and the
      Know-How are confidential, and will be kept strictly confidential by the
      parties. 

     

    b.  Exceptions.
      The
      foregoing obligations of confidentiality shall not prevent the
      disclosure:

     

    
      	i.  	
              of
                the Unpatented Purolite Technology by Purolite or of MedaSorb’s Know-How
                by MedaSorb;

            

    

    
      	 	 

    

    
      	ii.  	
              of
                information in order to defend or enforce any of its rights or of
                information required by any Governmental Authority;
                

            

    

    
      	 	 

    

    
      	iii.  	
              of
                any amount directly payable by a Third Party to Purolite under Section
                6(d)(i); or

            

    

    
      	iv.  	
              of
                information that is or becomes available to the public through no
                fault of
                the party seeking to disclose or was known to a party prior to its
                disclosure by the other Party or an Affiliate.

            

    

     

    c.  Survival.
      The
      obligations of confidentiality set forth in this Section shall survive the
      termination of this Agreement. 

     

    d.  General
      Statement of End of Dispute.
      The
      Parties shall have the right to publicly disclose that they have achieved an
      amicable resolution to the Civil Action.

     

    
      	10.  	
              THE
                RUSSIAN SCIENTISTS 

               

            

    

    a.  Until
      the
      earlier of the termination or breach giving rise to termination of this
      Agreement or the expiration of the Term, and notwithstanding any conflicting
      contractual rights that Purolite might have (but subject to any other Third
      Party contractual rights and any existing or future obligations of
      confidentiality owed to Purolite), MedaSorb is free to engage the Russian
      Scientists (Vadim Davankov, Maria Tsyurupa, Ludmilla Pavlova and Dzidra Tur)
      as
      consultants restricted to the area of Products, and Purolite will not seek
      to
      enter into any arrangement with the Russian Scientists that would preclude
      MedaSorb from working with them in the area of Products. Purolite acknowledges
      that MedaSorb is free to engage the
      A. N.
      Nesmeyanov Institute of Element-Organic Compounds (known as “INEOS”) without
      restriction (but subject to any other Third Party contractual rights and any
      existing or future obligations of confidentiality owed to Purolite), other
      than
      for the
      services of the Russian Scientists, who may be engaged by MedaSorb, directly
      or
      through INEOS, only as provided in the preceding sentence.

      

    
      
        
        

      

      
        17

        
          

        

      

      
        
        

      

    

    b.  Purolite
      shall not claim any right, title or interest in any MedaSorb Know-How solely
      because MedaSorb has engaged the Russian Scientists or INEOS as consultants
      as
      provided in Section 10(a) above.

     

    c.  Purolite
      and MedaSorb each acknowledge that there is a risk that the Russian Scientists
      may, as a result of their consulting work for both parties, transfer
      confidential or proprietary technology belonging to one party to the other
      party. The parties shall put reasonable safeguards in place to minimize the
      transfer of any such confidential or proprietary technology. Notwithstanding
      the
      above, each party reserves their rights to their existing contractual
      relationships with the Russian Scientists and INEOS to protect confidentiality
      and trade secrets in all areas of non-Products. 

     

    
      	11.  	
              DISMISSAL
                OF CIVIL ACTION 

               

            

    

    a.  Dismissal
      With Prejudice.
      Upon the
      execution of this Agreement, the Parties shall instruct their outside counsel
      to
      execute and file a dismissal of the Civil Action with prejudice, substantially
      in the form of Attachment A hereto. 

     

    
      	12.  	
              GENERAL
                

               

            

    

    a.  Waiver.
      The
      failure of either Party to insist upon the performance of any of the provisions
      of this Agreement shall not be considered a waiver with respect to any breach
      or
      relinquishment of future compliance therewith; nor shall a waiver by either
      Party of any breach at one time of any provision operate as a waiver of any
      other provision or as a continuing waiver of such provision. 

     

    b.  Written
      Changes.
      This
      Agreement may not be altered, modified, changed or amended, or waived, in whole
      or in part, except in writing signed by the Parties and except as expressly
      set
      forth herein.  

     

    c.  Governing
      Law and Jurisdiction.

     

    
      
        
        

      

      
        18

        
          

        

      

      
        
        

      

    

     

    
      	i.  	
              This
                Agreement and the performance hereof shall be governed by and construed
                in
                accordance with the laws of the Commonwealth of Pennsylvania, USA
                which
                would be applicable to transactions executed and to be wholly performed
                in
                the Commonwealth of Pennsylvania, USA, among residents of the Commonwealth
                of Pennsylvania, USA. 

            

    

    
      	 	 

    

    
      	ii.  	
              This
                Agreement upon stipulation and adoption by the Court will be deemed
                entered as a final, binding, non-appealable order of the Court, and
                the
                United States District Court for the Eastern District of Pennsylvania
                will
                retain exclusive jurisdiction of the Parties and of this Agreement
                to
                enforce its terms and to resolve any dispute arising under this Agreement.
                The Parties agree that they will not begin any legal action relating
                to or
                arising from this Agreement, its enforcement or the resolution of
                any
                dispute except in the United States District Court for the Eastern
                District of Pennsylvania.

            

    

    
      	 	 

    

    d.  Entire
      Agreement.
      This
      Agreement constitutes the entire agreement and understanding between the Parties
      with respect to its subject matter and supersedes any prior agreement,
      statement, representation, warranty or understanding with respect thereto.
      

     

    e.  Force
      Majeure.
      Neither
      Party shall be held responsible for any failure of performance hereunder or
      for
      damages caused by any delay or default due to any contingency beyond its control
      preventing performance hereunder, including, without limitation, war, laws,
      embargoes, export, shipping or remittance restrictions implemented by
      governmental authorities, strikes, lockouts, accidents, fires, delays or
      defaults caused by carriers, floods or seizure, or control or rationing imposed
      by Governmental Authorities; provided, however, that such Party shall
      immediately notify the other Party hereto in writing of the occurrence of the
      event of force majeure (with reasonable particulars); provided further, that
      such Party shall thereafter take all commercially reasonable efforts with a
      view
      to its performance hereunder being resumed within the shortest possible time.
      

     

    f.  Notices.
      Notices
      required hereunder shall be in writing and shall be deemed to be given one
      business day after delivery to an overnight courier service (such as Federal
      Express) or upon transmission by telefax (provided that in each instance there
      is written evidence of delivery or transmission) to the following addresses
      or
      to such other address as either Party may designate by notice given in
      accordance herewith: 

     

     

    
      
        
        

      

      
        19

        
          

        

      

      
        
        

      

    

    If
      to
      Purolite: 

    

    Bro-Tech
      Corporation

    150
      Monument Road

    Bala
      Cynwyd, PA 19004

    Attention:
      Mr. Steve Brodie 

    Fax
      No.:
      (610) 688-8139 

    

    With
      copies (which shall not constitute notice) to: 

    

    White
      & Case, LLP

    1155
      Avenue of the Americas

    New
      York,
      NY 10036-2787  

    Attention:
      Steven M. Betensky, Esq. 

    Fax
      No.:
      (212) 354-8113

    

    If
      to
      MedaSorb:

    

    MedaSorb
      International, LLC

    7
      Deer
      Park Drive 

    Suite
      K

    Monmouth
      Junction, NJ 08852

    Attention:
      Mr. Al Kraus

    Fax:
      (732) 329-8650

    

    With
      copies (which shall not constitute notice) to: 

    

    Rubin,
      Bailin, Ortoli, Mayer, Baker & Fry LLP 

    405
      Park
      Avenue, 15th Floor 

    New
      York,
      New York 10022-4405 

    Attention:
      Joseph Rubin, Esq. 

    Fax:
      (212) 826-9307 

     

    g.  Binding
      Effect; Assignment.
      This
      Agreement and all the provisions hereof shall be binding upon and shall inure
      to
      the benefit of the Parties hereto and their respective successors and permitted
      assigns. Neither this Agreement nor any of the rights, interests or obligations
      hereunder shall be assigned, directly or indirectly, including, without
      limitation, by operation of law, by any Party hereto without the prior written
      consent of the other Party hereto, provided, however, that either Party may
      (i)
      assign any or all of its rights and interests hereunder to one or more of its
      Affiliates; (ii) assign this Agreement in its entirety in connection with a
      merger, consolidation or sale involving a transfer of all or substantially
      all
      of the assets of the business of MedaSorb, or the business of Bro-Tech; and
      (iii) assign its rights under this Agreement to any of its or its Affiliates’
lenders as collateral security. Before any change in control (whether by merger,
      sale, reorganization or otherwise), MedaSorb will obtain and provide to Purolite
      the new owner’s written consent to assume the obligations under this Settlement
      Agreement.

     

    
      
        
        

      

      
        20

        
          

        

      

      
        
        

      

    

    h.  Headings.
      Headings
      used in this Agreement are for reference purposes only and shall not in any
      way
      affect the meaning or interpretation of this Agreement. 

     

    i.  English.
      This
      Agreement is entered into the English language and all notices and
      communications pursuant to this Agreement to be considered effective shall
      be in
      the English language. Should a translation of this Agreement into any other
      language be made for any reason, all matters involving interpretation shall
      be
      governed by the English text, except to the extent required by applicable law.
      

     

    j.  Severability.
      If one
      or more provisions of this Agreement are found by a court or arbitrator of
      competent jurisdiction, or any Governmental Authority with competent
      jurisdiction over the Parties hereto, to be illegal, invalid or unenforceable,
      in whole or in part, the remaining terms and provisions of this Agreement shall
      remain in full force and effect disregarding such illegal, invalid or
      unenforceable portion and such court, arbitrator or Governmental Authority
      shall
      be empowered to modify such illegal, invalid or unenforceable provision to
      the
      extent necessary to make this Agreement enforceable in accordance with the
      intent and purposes of the Parties expressed in this Agreement to the fullest
      extent practicable and as permitted by applicable law. 

     

    k.  Joint
      Drafting.
      This
      Agreement shall be deemed to have been drafted jointly by the Parties hereto
      and
      no presumption or rules of construction based upon drafting this Agreement
      shall
      be made in any legal proceedings arising in relation hereto. 

     

    l.  Expenses.
      Except
      as otherwise specifically provided herein or expressly agreed in writing by
      the
      Parties, each Party shall be responsible for its own costs and expenses related
      to its performance of this Agreement. 

     

    m.  Counterparts.
      This
      Agreement may be executed in any number of counterparts, each of which shall
      be
      deemed to be an original, but all of which together shall constitute one and
      the
      same agreement. 

     

    n.  Attachments.
      All
      attachments attached hereto are incorporated into this Agreement, as such
      exhibits and schedules may be amended in accordance with the terms hereof.
      

     

     

    
      
        
        

      

      
        21

        
          

        

      

      
        
        

      

    

     

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

     

    
      	
               

              BRO-TECH
                CORPORATION

               

              By:
                /s/ Stefan
                Brodie                               
                

               

              Name:
                Stefan
                Brodie                               
                

               

              Title:
                President                                        
                

            	
               

              PUROLITE
                INTERNATIONAL LTD.

               

              By:
                /s/ Stefan
                Brodie                               
                

               

              Name:
                Stefan
                Brodie                               
                

               

              Title:
                President                                        
                

            

    

    

    MEDASORB
      CORPORATION

     

    By:
      /s/ Al
      Kraus                                       

     

    Name:
      Al
      Kraus                                       

     

    Title:
      President and
      CEO                        

     

    AS
      TO
      SECTION 2 ONLY:

    

    /s/
      James
      Dale                                   

    James
      Dale

    

    /s/
      Nikita
      Nikitin                                

    Nikita
      Nikitin

    

    This
      Stipulated Order and Settlement Agreement is approved by the Court and adopted
      as a Final Order, this 31, date of , July 2006

     

    
      	 	/s/ John R.
              Padova                             
              
	 	
              U.S.D.J

            

    

     

    
      
        
        

      

      
        23

        
          

        

      

      
        
        

      

    

     

    UNITED
      STATES DISTRICT COURT

    FOR
      THE EASTERN DISTRICT OF PENNSYLVANIA

    

    
      	
               

              BroTech
                Corporation, et al.,

               

              Plaintiffs,

               

              -against-

               

              White
                Eagle International Technologies Group, Inc. et al.,

               

              Defendants.

            	
               

              )

              )

              )

              )

              )

              )

              )

              )

              )

              )

            	
               

               

               

               

              Civil
                Action No. 03-232

               

              STIPULATION OF
                DISMISSAL  WITH
                PREJUDICE

            

    

    

    Plaintiffs
      BroTech Corporation and Purolite International, Ltd. and defendants White
Eagle
      International Technologies Group, Inc., White Eagle International Technologies,
      L.P. and RenalTech International, LLC (which has been succeeded by Medasorb
      Corporation) hereby stipulate,
      by and through their undersigned counsel, to request the Court to enter the
      attached Stipulated
      Order and Settlement Agreement, which has been executed by the parties. Upon
      the
Court's
      entry of the Stipulated Order as the Court's final judgment on the merits in
      the
      above- captioned
      action, the Court's dismissal of this action on July 24, 2006, under local
      Rule
      41.1 (b) pursuant
      to parties' settlement will now become final and with prejudice. Notwithstanding
      the dismissal
      of the above-captioned action with prejudice, this Court retains jurisdiction
      over this matter to enforce the Stipulated Order and Settlement Agreement
      pursuant to the terms provided therein. The parties will bear their own
      costs

    

     

     

     

    
 

    EXHIBIT
      A

    

    
      
        
        

      

      
        24

        
          

        

      

      
        
        

      

    

    .

    
      	
               

               

              ________________________________

              SPECTOR
                GADON & ROSEN, P.C.

              Paul
                R. Rosen, Esquire

              Bruce
                Thall, Esquire

              1635
                Market Street, 7th
                Floor

              Philadelphia,
                PA 19103

              (215)
                241-8872

               

              Attorneys
                for Plaintiffs

               

               

              ________________________________

              WHITE
                & CASE

              Steven
                M. Betensky, Esquire

              1155
                Avenue of the Americas

              New
                York, NY 10036-2787

              (212)
                819-2497

               

              Attorneys
                for Plaintiffs

            	
               

               

              ________________________________

              ABELMAN,
                FRAYNE & SCHWAB

              Jeffrey
                A. Schwab, Esquire

              Richard
                L. Crisona, Esquire

              666
                Third Avenue

              New
                York, New York 10017

              (212)
                949-9022

               

              Attorneys
                for Defendants

            

    

     

     

    SO
      ORDERED:

    

    _____________________

    U.S.D.J.

    

    

    

    

    EXHIBIT
      A

     

     

    
      
        
        

      

      
        25

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