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Exhibit 10.2  

  VOTING AGREEMENT         

    THIS VOTING AGREEMENT ("Agreement") is made and entered into as of September 12, 2000, by and among Reuter
Manufacturing, Inc., a Minnesota corporation (the "Company"), certain existing holders of the Company's common stock, $.1875 par value per share (the
"Common Stock"), whose names, addresses and respective ownership positions in the Company are listed in Schedule
1 attached hereto (the "Shareholders"), and Activar, Inc., a Minnesota corporation (the
"Investor"). The Company, the Shareholders and the Investor are individually referred to as a "Party"
and collectively referred to as the "Parties." 

RECITALS  

    WHEREAS, the Company is negotiating a Securities Purchase Agreement (the "Purchase Agreement") pursuant to
which the Company intends to issue and sell shares of the Company's Common Stock and Series A Preferred Stock to the Investor in exchange for $800,000. 

    WHEREAS,
capitalized terms used herein without definition have the meanings specified in the Purchase Agreement. 

    WHEREAS,
the Investor has required, as a condition to the closing under the Purchase Agreement, that the Shareholders enter into this Agreement. 

    NOW,
THEREFORE, in consideration of the foregoing recitals and the mutual agreements contained herein, and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the Parties hereby agree as follows: 

	1.
	Voting Agreement.  Each of the Shareholders hereby agrees, on behalf of itself and any of such Parties' heirs,
beneficiaries, successors or assigns, to vote all shares of Common Stock, now owned or hereafter acquired of record or beneficially by each such Shareholder (collectively, the
"Shares"):

	1.1
	for
the election of designees of the Investor to the Board of Directors of the Company (the "Board"); and

	1.2
	as
directed by the Investor on all matters which are, at any time and from time to time, presented for a vote to the Company's shareholders at any regular or special meeting of
shareholders. 

	2.
	Waiver of Right to Abstain or Be Absent From a Meeting.  Each of the Shareholders hereby expressly waives any right
which such Shareholder would otherwise have to abstain, except as expressly provided herein, from any action taken at, or to be absent from, a duly held meeting of the Company's shareholders.

	3.
	Irrevocable Proxy.  To secure the Shareholders' obligations to vote the Shares in accordance with this Agreement, each
Shareholder hereby appoints the Investor, from time to time, or its designees, as such Investor's true and lawful proxy and attorney, with the power to act alone and with full power of substitution,
to vote all of the Shares in favor of the matters set forth in Section 1 hereof (as applicable) if, and only if, such Shareholder fails to vote all of
such Shareholder's shares in accordance with the applicable provisions of Section 1 hereof. The proxy and power granted by each Shareholder pursuant to this Section 3 are coupled with an interest and
are given to secure the performance of such Party's duties under Sections 1 and 2 of this Agreement. Each such proxy will be irrevocable for the term hereof. The proxy, so long as any Party hereto is
an individual, will survive the death, incompetency and disability of such Party or any other individual holder of Shares and, so long as any Party hereto is an entity, will survive the merger or
dissolution of such Party or any other entity holding any Shares. 

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	4.
	Limitations on Transfer.  No Shareholder shall sell, transfer, assign, distribute or otherwise dispose of such Party's
Shares to any person or entity, other than to the Investor or the Company, unless and until such person or entity shall agree in writing to take such Shares subject to, and shall accept and agree to
be bound in writing by, the terms and conditions of this Agreement, in which case such person or entity shall be deemed to be a Shareholder for purposes of this Agreement.

	5.
	Legend.  The Company agrees that each certificate evidencing the Shares subject to the provisions of this Agreement
and each certificate issued in exchange for or upon the transfer of any such Shares will, upon the Investor's request, during the term of this Agreement, be endorsed with a legend in substantially the
following form or to the following effect: 

THE
SHARES EVIDENCED BY THIS CERTIFICATE AND ANY TRANSFER THEREOF ARE SUBJECT TO THE TERMS OF A VOTING AGREEMENT DATED AS OF SEPTEMBER 12, 2000 BETWEEN REUTER MANUFACTURING, INC. AND CERTAIN OF ITS
SHAREHOLDERS (INCLUDING THE HOLDER OF THIS CERTIFICATE). SUCH VOTING AGREEMENT CONTAINS CERTAIN RESTRICTIONS ON VOTING AND TRANSFER OF THE SHARES. A COPY OF SUCH VOTING AGREEMENT IS ON FILE AT THE
PRINCIPAL EXECUTIVE OFFICE OF THE COMPANY AND WILL BE FURNISHED BY THE COMPANY UPON REQUEST AND WITHOUT CHARGE. 

	6.
	Effectiveness; Termination.  The provisions of this Agreement shall be effective immediately upon the closing under
the Purchase Agreement; provided, however, that if the Closing does not occur on or before October 31, 2000, then this Agreement shall be void and of no effect. This Agreement, if it becomes
effective, shall terminate upon the earlier to occur of:

	6.1
	the
date that the Investor owns more than fifty (50%) of the issued and outstanding shares of the Company's voting securities; or

	6.2
	the
third anniversary of the date of closing under the Purchase Agreement. 

	7.
	Remedies; Specific Performance.  The Company and each Party understands and agrees that a breach of the terms and
conditions of this Agreement will cause the other Parties irreparable harm which cannot be reasonably or adequately compensated by receipt of money damages at law, and that any Party or Parties may,
in their sole discretion, apply to any court of law or equity or competent jurisdiction for specific enforcement, injunctive relief and or other equitable remedies to prevent or remedy a breach
of this Agreement or any part hereof. All rights and remedies herein provided are cumulative and not exclusive of any remedy provided by law or by equity.

	8.
	Delays or Omissions.  Except as expressly provided herein, no delay or omission to exercise any right, power or remedy
accruing to any Party under this Agreement shall impair any such right, power or remedy of such Party nor shall it be construed to be a waiver of any such breach or default, or an acquiescence
thereto, or of a similar breach of default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter
occurring. Any waiver, permit, consent or approval of any kind or character on the part of any Party of any breach or default under the Agreement, or any waiver on the part of any Party of any
provisions or conditions of this Agreement, must be in writing and shall be effective only to the extent specifically set forth in such writing.

	9.
	Successors and Assigns.  The terms and conditions of this Agreement shall inure to the benefit of and be binding upon
and be enforceable by the respective heirs, successors and assigns of the Parties. Nothing in this Agreement, express or implied, is intended to confer upon any party, other than the Parties or their
respective heirs, successors and assigns, any rights, remedies, obligations or liabilities under or by reason of this Agreement, except as expressly provided in this Agreement. 

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	10.
	Waivers, Amendments and Approvals.  Any term or provision of this Agreement requiring performance by or binding upon
the Company or the Shareholders and Investor, or other terms of this Agreement may be amended, and the observance of any term of this Agreement may be waived (either generally or in a particular
instance and either retroactively or prospectively), only by a writing signed by each of the Parties. Any amendment or waiver effected in accordance with this Section 10 shall be binding upon the
Shareholders and Investor (including permitted assigns pursuant to Section 9 hereof).

	11.
	Severability.  Should any one or more of the provisions of this Agreement or of any agreement entered into pursuant to
this Agreement be determined to be illegal or unenforceable, all other provisions of this Agreement and of each other agreement entered into pursuant to this Agreement, shall be given effect
separately from the provision or provisions determined to be illegal or unenforceable and shall not be affected thereby. The parties further agree to replace such void or unenforceable provision of
this Agreement with a valid and enforceable provision which will achieve, to the extent possible, the economic, business and other purposes of the void or unenforceable provision.

	12.
	Attorneys' Fees.  Should suit be brought to enforce or interpret any part of this Agreement, the prevailing party
shall be entitled to recover, as an element of the costs of suit and not as damages, reasonable attorneys' fees to be fixed by the court (including, without limitation, costs, expenses and fees on any
appeal). The prevailing party shall be the party entitled to recover its costs of suit, regardless of whether such suit proceeds to final judgment. A party not entitled to recover its costs shall not
be entitled to recover attorneys' fees.

	13.
	Entire Agreement.  This Agreement, the schedules hereto, the documents referenced herein and the exhibits thereto,
constitute the entire understanding and agreement of the Parties with respect to the subject matter hereof and thereof and supersede all prior and contemporaneous agreements or understandings,
inducements or conditions, express or implied, written or oral, between the Parties with respect hereto and thereto. The express terms hereof control and supersede any course of performance or usage
of the trade inconsistent with any of the terms hereof.

	14.
	Governing Law.  This Agreement shall be governed by and construed in accordance with, the laws of the State of
Minnesota, notwithstanding the laws of conflict of any jurisdiction.

	15.
	Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed to be an
original, but all of which taken together shall constitute one and the same agreement. 

(BALANCE OF PAGE INTENTIONALLY LEFT BLANK; SIGNATURE PAGE FOLLOWS NEXT.)  

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

	Company:	 	REUTER MANUFACTURING, INC.
	 

 	 
 	 

 	 

 
	 	 	By:	/s/ Michael Tate

	 	 	Name:	Michael Tate
	 	 	Its:	President and Chief Executive Officer
	 
 Investor:	 
 	 
 ACTIVAR, INC.
	 

 	 
 	 

By:	 

/s/ J.L. Reisser

	 	 	Name:	J.L. Reisser
	 	 	Its:	President and Chief Operating Officer
	 
 Shareholders:	 
 	 

 	 

 
	 	 	/s/ Kenneth E. Daugherty
 KENNETH E. DAUGHERTY
	 

 	 
 	 

/s/ Edward E. Strickland
 EDWARD E. STRICKLAND
	 

 

 	 
 
 	 

 

/s/ Richard W. Perksin
 RICHARD W. PERKINS
	 

 

 	 
 
 	 

 

 	 

 

 

(SIGNATURE PAGE VOTING AGREEMENT)  

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           SCHEDULE 1         

	Name and Address
 
	 	Number of Shares Held
	 	Number of Options Held
	 	Number of Warrants Held
	 	Total

	Kenneth E. Daugherty

1913 East Hunskor Road

Oak Harbor, WA 98277	 	347,689	 	21,000	 	25,000	 	393,689
	 

Edward E. Strickland

520 Warbass Way

Friday Harbor, WA 98250	 
 	 

375,958	 
 	 

48,000	 
 	 

50,000	 
 	 

473,958
	 

Richard W. Perkins

730 East Lake Street

Wayzata, MN 55391-1769	 
 	 

250,000	 
 	 

—	 
 	 

—	 
 	 

250,000

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VOTING AGREEMENT

SCHEDULE 1Prepared by MERRILL CORPORATION www.edgaradvantage.com

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Exhibit 10.3  

  REUTER MANUFACTURING, INC.
  CERTIFICATE OF DESIGNATION
  SERIES A CONVERTIBLE PREFERRED STOCK         

	1.
	Designation.  The designation of the series of shares is "Series A Convertible
Preferred Stock" (the "Series A Preferred" or the "Preferred Stock"), and the number of shares of
such series will be One Million (1,000,000). 

 
	2.
	Voting Rights.   

	2.1
	General.  At all meetings of the shareholders of the Corporation and in the case of any actions of shareholders in
lieu of a meeting, each holder of Series A Preferred shall have that number of votes on all matters submitted to the shareholders that is equal to the number of whole shares of Common Stock
into which such holder's shares of Series A Preferred are then convertible, as provided in Section 5, at the record date for the determination of the shareholders entitled to vote on
such matters or, if no such record date is established, at the date such vote is taken or any written consent of such shareholders is effected. This provision for determination of the number of votes
to which each holder of the Series A Preferred is entitled shall also apply in cases in which the holders of the Series A Preferred have the right to vote together as a separate class.
Except as may be otherwise provided in this Certificate or by agreement, the holders of the Common Stock and the holders of the Series A Preferred shall vote together as a single class on all
actions to be taken by the shareholders of the Corporation. 

 
	2.2
	Quorums.  The presence in person or by
proxy of the holders of a majority of the aggregate number of shares of Common
Stock and Series A Preferred then outstanding (on an as-if converted to Common Stock basis) shall constitute a quorum of the Common Stock and Series A
Preferred.

	3.
	Dividends.   

 
	3.1
	Dividends.  The holders of Series A Preferred then outstanding shall be entitled to receive cumulative cash
dividends, out of any funds and assets of the Corporation legally available therefor, prior and in preference to any declaration or payment of any dividend (other than a Common Stock Dividend) payable
on Common Stock of the Corporation at the annual rate of nine percent (9%) for the Series A Preferred, and such dividends shall be payable only if, as and when declared by the Board of
Directors of the Corporation (the "Board"). Other than as set forth in the preceding sentence, no dividend or other distribution shall accrue or be paid
with respect to any shares of capital stock of the Corporation for any period, whether before or after the effective date of this Certificate, unless and until declared by the Board. In the event any
dividend or distribution is declared or made with respect to outstanding shares of Common Stock, a comparable dividend or distribution shall be simultaneously declared or made with respect to the
outstanding shares of Series A Preferred (as if fully converted into Common Stock, including fractions of shares). Dividends on shares of capital stock of the Corporation shall be payable only
out of funds legally available therefor. 

 
	3.2
	Non-Cash Dividends.  Whenever a dividend provided for in this
Section 3 shall be payable in
property other than cash, the value of such dividend shall be deemed to be the fair market value of such property as determined in good faith by the Board.

	4.
	Liquidation Rights.   

 
	4.1
	No Preference of Series A Preferred.  In the event of any liquidation, dissolution or winding up of the
Corporation, whether voluntary or involuntary, the assets of the Corporation available for distribution to its shareholders, whether such assets are capital, surplus, or earnings, shall be distributed
equally, on a per share basis, among the holders of the Common Stock and the Series A Preferred (on an as-if converted to Common Stock basis).

	4.2
	Reorganization; Sale of Assets.  The merger, acquisition or consolidation of the Corporation into or with any other
entity or entities which results in the exchange of outstanding shares of the Corporation for securities or other consideration issued or paid or caused to be issued or paid by any such entity or
affiliate thereof pursuant to which the shareholders of the Corporation immediately prior to the transaction do not own a majority of the outstanding shares of the surviving corporation immediately
after the transaction, or any sale, lease, license (on an exclusive basis) or transfer by the Corporation of all or substantially all its assets, shall be deemed to be a liquidation, dissolution or
winding up of the Corporation within the meaning of the provisions of this Section 4. 

 
	4.3
	Determination of
Consideration.  To the extent any distribution pursuant to Section 4.1 consists of property
other than cash, the value thereof shall, for purposes of Section 4.1, be the fair value at the time of such distributions as determined in good faith by the Board.

	5.
	Conversion.  The holders of the Series A Preferred shall have the following conversion rights (the
"Conversion Rights"): 

 
	5.1
	Optional Conversion of the Series A Preferred.  The Series A Preferred shall be convertible, without the
payment of any additional consideration by the holder thereof and at the option of the holder thereof, at any time after the first issuance of shares of Series A Preferred by the Corporation,
at the office of the Corporation or any transfer agent for the Common Stock, into such number of fully paid and nonassessable shares of Common Stock as is determined by dividing $0.1777778 by the
Conversion Price, determined as hereinafter provided, in effect at the time of conversion and then multiplying such quotient by each share of Series A Preferred to be converted. The Conversion
Price at which shares of Common Stock shall be deliverable upon conversion without the payment of any additional consideration by the holder thereof (the "Conversion
Price") shall at the time of the filing of this Certificate initially be $0.1777778 in the case of the Series A Preferred. Such initial Conversion Price shall be subject
to adjustment, in order to adjust the number of shares of Common Stock into which the Series A Preferred is convertible, as hereinafter provided. 

 
	5.2
	Fractional Shares.  No fractional shares of Common Stock shall be issued upon conversion of the Series A
Preferred. In lieu of any fractional share to which any holder would otherwise be entitled upon conversion of the Series A Preferred owned by such holder, the Corporation shall pay cash equal
to such fraction multiplied by the then effective Conversion Price or round up to the nearest whole share. 

 
	5.3
	Mechanics of Optional
Conversion.  Before any holder of Series A Preferred shall be entitled to convert the
same into full shares of Common Stock, such holder shall surrender the certificate or certificates therefor, endorsed or accompanied by written instrument or instruments of transfer, in form
satisfactory to the Corporation, duly executed by the registered holder or by such holder's attorney duly authorized in writing, at the office of the Corporation or of any transfer agent for the
Common Stock, and shall give written notice to the Corporation at such office that such holder elects to convert the same and shall state therein such holder's name or the name of the nominees in
which such holder wishes the certificate or certificates for shares of Common Stock to be issued. The Corporation shall, as soon as practicable thereafter, issue and deliver at such office to such
holder of Series A Preferred, or to such holder's nominee or nominees, a certificate or certificates for the number of shares of Common Stock to which such holder shall be entitled as
aforesaid, together with cash in lieu of any fraction of a share. Such conversion shall be deemed to have been made immediately prior to the close of business on the date of such surrender of the
shares of Series A Preferred to be converted, and the person or persons
entitled to receive the shares of Common Stock issuable upon conversion shall be treated for all purposes as the record holder or holders of such shares of Common Stock on such date. From and after 

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such
date, all rights of the holder with respect to the Series A Preferred so converted shall terminate, except only the right of such holder, upon the surrender of his, her or its certificate
or certificates therefor, to receive certificates for the number of shares of Common Stock issuable upon conversion thereof and cash for fractional shares.

	5.4
	Certain Adjustments to Conversion Price for Stock Splits, Dividends, Mergers, Reorganizations,
Etc.   

 

	A.
	Adjustment for Stock Splits, Stock Dividends and Combinations of Common Stock.  In the event the outstanding shares of
Common Stock shall, after the filing of this Certificate be further subdivided (split), or combined (reverse split), by reclassification or otherwise, or in the event of any dividend or other
distribution payable on the Common Stock in shares of Common Stock, the applicable Conversion Price in effect immediately prior to such subdivision, combination, dividend or other distribution shall,
concurrently with the effectiveness of such subdivision, combination, dividend or other distribution, be proportionately adjusted. 

 
	B.
	Adjustment
for Merger or Reorganization, Etc.  In the event of a reclassification, reorganization or exchange (other
than described in subsection 5.4.A. above) or any consolidation or merger of the Corporation with another Corporation (other than a merger, acquisition or other reorganization as defined in
Section 4.2, which shall be considered a liquidation pursuant to Section 4 above), each share of Series A Preferred shall thereafter be convertible into the number of shares of
stock or other securities or property to which a holder of the number of shares of Common Stock of the Corporation deliverable upon conversion of the Series A Preferred would have been entitled
upon such reclassification, reorganization, exchange, consolidation, merger or conveyance had the conversion occurred immediately prior to the event; and, in any such case, appropriate adjustment (as
determined by the Board) shall be made in the application of the provisions herein set forth with respect to the rights and interests thereafter of the holders of the Series A Preferred, to the
end that the provisions set forth herein (including provisions with respect to changes in and other adjustments of the applicable Conversion Price) shall thereafter be applicable, as nearly as
reasonably may be, in relation to any shares of stock or other property thereafter deliverable upon the conversion of the Series A Preferred. 

 
	C.
	Adjustments for Other Dividends and Distributions.  In the event the Corporation, at any time or from time to time
after the filing of this Certificate, makes, or fixes a record date for the determination of
holders of Common Stock entitled to receive, a dividend or other distribution payable in securities of the Corporation other than shares of Common Stock, then and in each such event, provision shall
be made so that the holders of Series A Preferred shall receive upon conversion thereof, in addition to the number of shares of Common Stock receivable thereupon, the amount of securities of
the Corporation which they would have received had their Series A Preferred been converted into Common Stock on the date of such event and had they thereafter, during the period from the date
of such event to and including the conversion date, retained such securities receivable by them as aforesaid during such period, subject to all other adjustments called for during such period under
this Section 5.4 with respect to the rights or the holders of the Series A Preferred.

	5.5
	Notices of Record Date.  In the event of any taking by the Corporation of a record of the holders of any class of
securities for the purpose of determining the holders thereof who are entitled to receive any dividend (other than a cash dividend which is the same as cash dividends paid in previous quarters) or
other distribution, any capital reorganization of the Corporation, any reclassification or recapitalization of the Corporation's capital stock, any consolidation or merger with or into another
Corporation, any transfer of all or substantially all of the assets of the Corporation or any dissolution, liquidation or winding up of the Corporation, the Corporation shall mail to each holder of
Series A Preferred at least ten (10) days prior to the date specified for the taking of a record, a notice specifying the date on which any such record is to be taken for the purpose of
such dividend or distribution.

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      SIGNATURES         

	 	 	REUTER MANUFACTURING, INC.
	 

Dated: October 12, 2000	 
 	 

By:	 
 	 

/s/ Michael J. Tate

	 	 	Michael Tate
	 	 	Its:	 	President and Chief Executive Officer

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REUTER MANUFACTURING, INC. CERTIFICATE OF DESIGNATION SERIES A CONVERTIBLE PREFERRED STOCK

SIGNATURES

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