Document:

Exhibit 10.2

 

	
  

  	
  LIMITED LIABILITY PARTNERSHIP

  

 

 

MS JESSIE ANNE EVANS

 

AND

 

MEDICOR LTD.

 

 

 

PUT AND CALL OPTION AGREEMENT

 

 

 

THIS
AGREEMENT is made on                                                        2006

 

BETWEEN:

 

(1)         MEDICOR LTD., a
company existing and organized under the laws of the State of Delaware, having
its registered office at 4560 S. Decatur Blvd, Ste 300, Las Vegas, Nevada,
89103-5253 (“MediCor”); and

 

(2)         JESSIE ANNE EVANS (known as Nancy Evans), of 1 Sea Cliff Road, Onchan, Isle of Man IM3
2JE (“NE”).

 

WHEREAS:

 

(A)        Pursuant to the Share Purchase
Agreement, the Sellers agreed to sell and MediCor agreed to purchase all of the
Shares on the terms and subject to the conditions contained in the Share
Purchase Agreement.

 

(B)         The Purchase Price under the
Share Purchase Agreement was satisfied in part by the issue of the
Consideration Shares by MediCor to the Sellers.

 

(C)         MediCor and the Sellers have
agreed to grant each other put and call options in respect of the Consideration
Shares.

 

(D)        NE is the registered and
beneficial owner of the Option Shares. This Agreement sets out the terms and
conditions pursuant to which MediCor and NE have agreed to grant each other put
and call options in respect of the Option Shares.

 

THE
PARTIES AGREE as follows:

 

1.           INTERPRETATION

 

1.1         In this Agreement:

 

“Call Expiry Date” means
the earlier of: (a) the first date on which the closing price of the
Common Stock as reported on the principal stock exchange or automated quotation
system on which it is traded has been equal to or greater than US$20.00 for 30
out of the 45 previous consecutive trading days; and (b) the first date on
which NE no longer holds any Option Shares pursuant to transactions made in
accordance with this Agreement;

 

“Call Option” means the
right granted to MediCor by clause 3.1;

 

“Call Option Notice” means
the written notice in the form set out in Schedule 2;

 

“Commercialisation Date”
means the date that the BioSil inflatable saline breast implant is approved by
the United States Food and Drug Administration for unrestricted commercialisation
in the United States;

 

“Exercise Date” means the
date falling eighteen months after the Commercialisation Date;

 

1

 

“Option Shares” means any
of the 965,250 shares of Common Stock issued to NE (or her nominee) in
accordance with the Share Purchase Agreement held by NE (or her nominee) from
time to time, together with any additional or replacement shares issued to NE
as a consequence of the operation of clause 5;

 

“Nine-Month Date” means
the date falling nine months after the Commercialisation Date;

 

“Option Date” means the
date on which a Call Option Notice pursuant to clause 2.2 or a Put Option
Notice pursuant to clause 3.2, is deemed to be given to either NE or MediCor,
as the case may be, by virtue of clause 8;

 

“Public Offer” means an offer by any person
to acquire the whole of the issued share capital of MediCor, whether structured
as a tender offer, merger or otherwise;

 

“Put Expiry Date” means
earliest of: (a) the first date on which the closing price of the Common
Stock as reported on the principal stock exchange or automated quotation system
on which it is traded has been equal to or greater than US$10.00 for any 30 out
of the previous 45 consecutive trading days; (b) the first date on which
NE no longer holds any Option Shares; and (c) 30 days after the Put Option
becomes exercisable pursuant to clause 2.8;

 

“Put Option” means the right granted to NE by clause 2;

 

“Put Option Notice” means the written notice in the form set out in schedule 1;

 

“Recommended Offer” means a Public Offer
which the Directors of MediCor have recommended MediCor shareholders to accept;

 

“Reorganisation” means any transaction instigated by MediCor,
whether at the direction of its board of directors or of one or more of its
shareholders, that causes the holders of Common Stock in MediCor as a whole
(and including NE in particular), without making or receiving any payment of
cash, to hold a different number and/or class of securities in MediCor
after the transaction than they held before the transaction;

 

“Share Purchase Agreement”
means the share purchase agreement dated 13 September 2005 entered into
between MediCor and the Sellers; and

 

“Silicone Approval Date”
means the date that any approval is obtained from the United States Food and
Drug Administration (or any successor authority) for the commercialisation of
silicone filled breast implants in the United States, other than the existing
approvals for such commercialisation for compassionate use.

 

1.2         In this Agreement, a reference to a clause,
paragraph or schedule, unless the context otherwise requires, is a reference to
a clause or paragraph of, or schedule to, this Agreement.

 

2

 

1.3         Terms defined in the Share Purchase Agreement
shall have the same meanings in this Agreement.

 

1.4         The headings in this Agreement do not affect its
interpretation.

 

2.           PUT OPTION

 

2.1         In consideration of the mutual promises contained
in this Agreement, and subject to the terms of this Agreement, MediCor grants
to NE an option to sell, and to require MediCor to buy, all or any of the
Option Shares.

 

2.2         The Put Option may be exercised on the terms
of this Agreement by NE from time to time on or after the Exercise Date until
the Put Expiry Date (the “Put Option Period”)
by NE delivering to MediCor a Put Option Notice, provided that if the Put
Expiry Date occurs prior to the Exercise Date then NE shall have no right to
exercise the Put Option.

 

2.3         NE may at any time, upon notice to MediCor,
elect to terminate the Put Option when, notwithstanding clause 2.2 the Put
Option shall terminate and, notwithstanding clause 3.2, the Call Option shall
also terminate.

 

2.4         Subject to clause 5, where sold pursuant to the
Put Option, the purchase price per Option Share (the “Put Option Price”) shall be as follows:

 

2.4.1         US$5.50 if the Silicone Approval Date has occurred on or before the
Nine-Month Date;

 

2.4.2         US$6.50 if the Silicone Approval Date has occurred after the
Nine-Month Date and on or before the Exercise Date; or

 

2.4.3         US$7.50 if the Silicone Approval Date has not occurred on or before
the Exercise Date.

 

2.5         The Option Shares shall be sold with full title
guarantee free from any Encumbrance and with all rights attaching to the Option
Shares at the date on which the Put Option is exercised including, without
limitation, the right to receive any dividend, distribution or return of
capital declared, paid or made in respect of the Option Shares in respect of
periods starting on or after the date on which the Put Option is exercised.

 

2.6         Subject to clause 2.9, NE agrees that at any time:

 

2.6.1         the maximum number of Option Shares in respect of which NE may serve
a Put Option Notice; and

 

2.6.2         the maximum number of Option Shares which NE may otherwise transfer
to a third party (other than a Seller or connected person of any Seller),

 

shall be 660,000 less the aggregate of

 

3

 

2.6.3         the aggregate number of shares of Common Stock obliged to be
acquired by MediCor from NE or any of the other Sellers, whether under this
Agreement or any Put and Call Option Agreement entered into by MediCor with any
of the other Sellers, in the three months prior to the date of the Put Option
Notice; and

 

2.6.4         the aggregate number of Consideration Shares transferred to third
parties (other than a Seller or any connected person of a Seller) by NE or any
of the other Sellers in the three months prior to the date of the Put Option
Notice,

 

and any Put Option Notice shall be deemed null and void to the extent
that it purports to require the acquisition by MediCor of a number of Option
Shares in excess of this amount.

 

2.7         For the avoidance of doubt, NE may exercise
the Put Option more than once.

 

2.8         Notwithstanding anything else in this Agreement,
if following a Public Offer, but prior to the Exercise Date (unless the Put
Expiry Date has first occurred), a person becomes entitled to compulsorily
acquire the Common Stock which it does not own, then the Put Option shall
become immediately exercisable and the Put Option Price shall be:

 

2.8.1         the price set out in clause 2.4 if the Silicone Approval Date and
the Commercialisation Date have both occurred by that time; and

 

2.8.2         $6.50 otherwise.

 

2.9         Notwithstanding the provisions of clause 2.6,
while any Recommended Offer remains open for acceptance NE may:

 

2.9.1         accept the Recommended Offer for any number of Option Shares; or

 

2.9.2         transfer any number of Option Shares to the person making the
Recommended Offer.

 

3.           CALL OPTION

 

3.1         In consideration of the mutual promises contained
in this Agreement, and subject to the terms of this Agreement, NE grants to
MediCor an option to buy, and to require NE to sell, all or any of the Option
Shares.

 

3.2         Subject to clause 3.3, the Call Option may be
exercised by MediCor from time to time on or after the Commercialisation Date
until the Call Expiry Date (the “Call Option
Period”) by MediCor delivering to NE a Call Option Notice provided
that if the Call Expiry Date occurs prior to the Commercialisation Date then
MediCor shall have no right to exercise the Call Option.

 

3.3         Notwithstanding clause 3.2, the Call Option will
automatically terminate upon termination by NE of the Put Option in accordance
with clause 2.3.

 

4

 

3.4         Subject to clause 5, where sold pursuant to the
Call Option, the purchase price per Option Share  (the “Call Option Price”) shall be as follows:

 

3.4.1         US$7.50 if the Call Option is exercised on or before the Nine-Month
Date;

 

3.4.2         US$10.00 if the Call Option is exercised after the Nine-Month Date
but on or before the Exericse Date;

 

3.4.3         US$15.00 if the Call Option is exercised after the Exercise Date.

 

3.5         The Option Shares shall be sold with full title
guarantee free from any Encumbrance and with all rights attaching to the Option
Shares at the date on which the Call Option is exercised including, without
limitation, the right to receive any dividend, distribution or return of
capital declared, paid or made in respect of the Option Shares in respect of
periods starting on or after the date on which the Call Option is exercised.

 

3.6         NE acknowledges that MediCor may cancel the
Option Shares which are the subject of the Call Option upon completion of the
exercise of the Call Option in accordance with this Agreement, without the
requirement for any actions whatsoever to be taken by NE.

 

3.7         For the avoidance of doubt, MediCor may exercise
the Call Option more than once.

 

4.           RESTRICTIONS

 

NE acknowledges that her rights
under this Agreement are personal to her and that the following or
substantially similar wording may be included on the share certificates
representing the Option Shares:

 

“The Shares represented by this certificate are
subject to a Put and Call Option Agreement with MediCor. The rights granted to
the holder of the Shares represented by this certificate under the Put and Call
Option Agreement may not be transferred, assigned, encumbered or otherwise
disposed of other than in accordance with the terms of the Put and Call Option
Agreement. A copy of the Put and Call Option Agreement is on file at the
principal executive office of MediCor.”

 

Upon any permitted transfer of the Option Shares, the foregoing legend
shall be removed from the certificates representing such shares and the Put
Option and the Call Option shall terminate with respect to such Option Shares.

 

5.           REORGANISATIONS

 

5.1         The Put Option Price and the Call Option Price
shall each be adjusted following any Reorganisation so that the amount payable
by MediCor to NE upon the exercise in full of the Put Option or the Call Option
would be the same after as before such Reorganisation, taking into account any
MediCor securities or rights attaching to or deriving from the Option Shares to
receive MediCor securities, in either case received as a result of such
Reorganisation and which shall all be subject to the Call Option and the Put
Option on such terms as are necessary to give effect to this provision. Clause 2.6

 

5

 

shall be amended correspondingly.
MediCor shall promptly notify NE of any such adjustments following consummation
of any Reorganisation.

 

5.2         If a Reorganisation takes place after the Option
Date but before completion of the transfer or cancellation of the Option Shares
in connection with the exercise of the Put Option or Call Option (as the case may be),
NE shall either renounce or, where permissible and requested by MediCor, assign
to MediCor all rights deriving from the Option Shares which are the subject of
the Put Option or Call Option as a result of the Reorganisation.

 

6.           FURTHER ASSURANCE

 

Each
party shall, at the request of the other party, execute or procure the
execution of all documents and do or procure the doing of such acts and things
as may reasonably be required for the purpose of completing the transfer
of the Option Shares in accordance with the terms of this Agreement.

 

7.           GENERAL

 

7.1         Subject to clause 4, NE shall as soon as
reasonably practical and in any event with 5 Business Days inform MediCor
of any transfer by her of any Option Shares.

 

7.2         A variation of this Agreement is valid only if it
is in writing and signed by or on behalf of each party.

 

7.3         The failure to exercise or delay in exercising a
right or remedy provided by this Agreement or by law does not impair or
constitute a waiver of the right or remedy or an impairment of or a waiver of
other rights or remedies. No single or partial exercise of a right or remedy
provided by this Agreement or by law prevents further exercise of the right or
remedy or the exercise of another right or remedy.

 

7.4         No party may (and may not purport to)
assign or transfer or declare a trust of the benefit of or in any other way
alienate any of its rights under this Agreement in whole or in part.

 

8.           NOTICES

 

8.1         A notice or other communication under or in
connection with this Agreement (a “Notice”) shall
be:

 

8.1.1         in writing;

 

8.1.2         in the English language; and

 

8.1.3         delivered personally or sent by first class post (and air mail
if overseas) or by fax to the party due to receive the Notice to the address
set out in clause 8.3 or to another address, person or fax number
specified by that party by not less than 7 days’ written notice to the other
party received before the Notice was despatched.

 

6

 

8.2         Unless there is evidence that it was received
earlier, a Notice is deemed given if:

 

8.2.1         delivered personally, when left at the address referred to in
clause 8.3;

 

8.2.2         sent by mail, five Business Days after posting it; and

 

8.2.3         sent by fax, when confirmation of its transmission has been recorded
by the sender’s fax machine.

 

8.3         The address referred to in clause 8.1.3 is:

 

	
  Name
  of party

  	
   

  	
  Address

  	
   

  	
  Fax No.

  	
   

  	
  Marked for the

  attention of

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Nancy Evans

  	
   

  	
  Global
  House

  Isle of Man

  Business Park

  Douglas

  Isle of Man

  British Isles

  	
   

  	
  +44
  1624 661 656

  	
   

  	
  Sellers’
  Representative

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  With a copy to

  	
   

  	
  Brodies LLP
15 Atholl

  Crescent
Edinburgh
EH3 8HA

  	
   

  	
  +44 131 228 3878

  	
   

  	
  Mr Iain Young/Mr Grant Campbell

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MediCor

  	
   

  	
  4560 Decatur

  Boulevard

  Suite 300

  Las Vegas

  Nevada

  89103-5253

  USA

  	
   

  	
  +1 70 2932 4563

  	
   

  	
  Mr
  Donald K. McGhan

  

 

9.           GOVERNING LAW AND
JURISDICTION

 

9.1         This Agreement is governed by and shall be
construed in accordance with English law.

 

9.2         The parties irrevocably agree that the courts of
England have exclusive jurisdiction to settle any dispute arising from or
connected with this Agreement (a “Dispute”)
including a dispute regarding the existence, validity or termination of this
Agreement or the consequences of its nullity.

 

9.3         The parties agree that the courts of England are
the most appropriate and convenient courts to settle any Dispute and,
accordingly, that they will not argue to the contrary.

 

9.4         The parties agree that the documents which start
any proceedings and any other documents required to be served in relation to
those proceedings may be served on NE 

 

7

 

in accordance with clause 8. These
documents may, however, be served in any other manner allowed by law. This
clause applies to all proceedings wherever started.

 

9.5         MediCor irrevocably appoints Biosil Limited of
Tournament Way, Ivanhoe Industrial Estate, Off Smisby Road, Ashby de la Zouch,
Leicestershire (the “Agent”) or
such other person in England and Wales as MediCor may from time to time
nominate in writing to NE as agent to accept process in England in any legal
action or proceedings arising out of or in connection with this Agreement and
the documents to be entered into pursuant to it.

 

9.6         MediCor irrevocably agrees that any claim,
judgement, or other notice process or any written communication in connection
with this Agreement or the documents to be entered into pursuant to it shall be
sufficiently and effectively served on it if delivered to the Agent for the
time being at the UK address notified to NE whether or not forwarded to or
received by MediCor.

 

9.7         If the Agent ceases to be able to act as such or
ceases to have an office in England where process or written communications may be
served, in either case for any reason whatever, or MediCor elects to replace
such Agent, MediCor irrevocably agrees to appoint a new process agent in
England acceptable to the Sellers’ Representative (acting reasonably) and to
deliver to the Sellers’ Representative within 14 days a copy of written
acceptance of appointment by the process agent, some other person or persons
resident in England or Wales as its agent for the purposes of this clause and
forthwith to notify the Sellers’ Representative in writing of such appointment.
Nothing in this Agreement shall affect the right to serve process in any other
manner permitted by law.

 

10.         COUNTERPARTS

 

This
Agreement may be executed in any number of counterparts, each of which
when executed and delivered is an original and all of which together evidence
the same agreement.

 

11.         INVALIDITY

 

If at
any time any provision of this Agreement is or becomes illegal, invalid or
unenforceable in any respect under the law of any jurisdiction, that shall not
affect or impair:

 

11.1       the legality, validity or enforceability in that
jurisdiction of any other provision of this Agreement; or

 

11.2       the legality, validity or enforceability under the
law of any other jurisdiction of that or another provision of this Agreement.

 

12.         CONFIDENTIALITY AND
ANNOUNCEMENTS

 

12.1       Subject to clause 12.2, no party may, at any time
make or send a public announcement, communication or circular concerning the
transactions referred to in this Agreement 

 

8

 

unless it has first obtained each
other party’s prior written consent which may not be unreasonably withheld
or delayed.

 

12.2       Clause 12.1 does not apply to a public
announcement, communication or circular required by law by a rule of a
listing authority on which MediCor’s Shares are listed, a stock exchange on
which MediCor’s Shares are listed or traded or by a Governmental Authority or
other authority with relevant powers to which either party is subject or
submits, whether or not the requirement has force of law provided that any
public announcement, communication or circular will so far as is practicable be
made after consultation with the other party after taking into account the
reasonable requirements of the other party as to its timing, content and manner
of making or dispatch.

 

13.         COSTS

 

13.1       Each party shall pay its own costs and expenses
relating to the negotiation, preparation, execution, enforcement and
performance by it of this Agreement and of each document referred to in it.

 

14.         SUCCESSORS AND
ASSIGNS

 

14.1       MediCor agrees that the benefit of every provision
in this Agreement is given to NE for herself and for her successors in title. This
Agreement is personal to and otherwise not assignable by NE.

 

15.         PAYMENTS FREE OF
WITHHOLDING

 

15.1       If there is a deduction or withholding required by
law from a payment made pursuant to this Agreement, the sum due from the
relevant party shall be increased to the extent necessary to ensure that, after
the making of any deduction or withholding, the recipient receives a sum equal
to the sum it would have received had no deduction of withholding been made.

 

16.         CONTRACT (RIGHTS OF
THIRD PARTIES) ACT 1999

 

16.1       A person who is not a party to this Agreement has
no rights under the Contracts (Rights of Third Parties) Act 1999 to enforce any
term of this Agreement.

 

9

 

SCHEDULE 1

 

FORM OF PUT OPTION NOTICE

 

To:          MediCor Ltd.

4560 Decatur Boulevard

Suite 300

Las Vegas

Nevada 89103-5253

USA

 

Fax:

 

Attention: Mr Donald K. McGhan

 

Date:       [insert date]

 

PUT OPTION NOTICE

 

1.           I refer to the Put and Call Option Agreement dated                         2005 between Ms. Jessie
Evans and MediCor Ltd (the
“Option Agreement”).

 

2.           Terms defined in the Option Agreement shall have the same meanings
in this Put Option Notice unless the context requires otherwise.

 

3.           I hereby notify you pursuant to clause 2.2 of the Option Agreement
that I wish to exercise the Put Option in relation to [/[state number]] of
Option Shares at the Put Option Price of $• for an aggregate consideration of $• to be paid to [specify account].

 

4.           I certify that the number of Consideration Shares transferred in the
last three months, whether by myself or any of the other Sellers, is •.

 

5.           I enclose a stock certificate for [•] Option Shares and a duly executed stock power for [•] Option Shares. [Please issue me a new stock certificate for
[balance of] shares of Common Stock.]

 

6.           Please complete the acquisition of the above Option Shares on [no
fewer than 30 and no more than 60 Days later.]

 

 

	
   

  	
   

  
	
   

  	
   

  
	
  Signed
  by Jessie Anne Evans

  

 

10

 

SCHEDULE 2

 

FORM OF CALL OPTION NOTICE

 

[MEDICOR’S LETTERHEAD]

 

To:          Mr John A. Alsop

Global House

Isle of Man Business Park

Douglas

Isle of Man

British Isles

 

Fax:

 

Date:       [insert date]

 

CALL OPTION NOTICE

 

1.           We refer to the Put and Call Option Agreement dated                    2005 between Ms. Jessie
Evans and MediCor Ltd (the
“Option Agreement”).

 

2.           Terms defined in the Option Agreement shall have the same meanings
in this Call Option Notice unless the context requires otherwise.

 

3.           We hereby notify you pursuant to clause 3.2 of the Option Agreement
that we wish to exercise the Call Option in relation to [/[state number]] of
Option Shares at the Call Option Price of $• per share and for an aggregate consideration of $•.

 

4.           Within 10 Business Days of receiving this notice please:

 

4.1         send us the stock certificate for at least this number of Option
Shares and a duly executed stock power in respect of [•] Option Shares; and

 

4.2         notify us of the account to which the above consideration should be
paid.

 

5.           No later than 10 Business Days following your compliance with
paragraph 4 above, we will complete the sale and purchase, pay you the above
consideration and issue you (if applicable) with a new stock certificate,
provided that we reserve all rights to cancel these shares as permitted by
clause 3.6 of the Option Agreement whether or not paragraph 4 is complied with.

 

 

	
   

  	
   

  
	
   

  	
   

  
	
  Signed
  by [    ]

  
	
  for
  and on behalf of MediCor Ltd.

  

 

11

 

EXECUTED by the parties:

 

 

	
   

  	
    Signature

  
	
   

  	
   

  
	
  Ms
  Jessie Anne Evans

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signed
  by

  	
   

  	
  )

  
	
  for

  	
   

  	
  )

  
	
  and
  on behalf of

  	
   

  	
  )

  
	
  MediCor
  Ltd.:

  	
   

  	
  )

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
    SignatureExhibit 10.3

 

	
  

  	
  LIMITED LIABILITY PARTNERSHIP

  

 

 

MR JOHN
A.ALSOP

 

AND

 

MEDICOR
LTD.

 

 

 

PUT AND
CALL OPTION AGREEMENT

 

 

 

	
  THIS
  AGREEMENT is made on

  	
  2006

  

 

BETWEEN:

 

(1)         MEDICOR LTD., a
company existing and organized under the laws of the State of Delaware, having
its registered office at 4560 S. Decatur Blvd, Ste 300, Las Vegas, Nevada,
89103-5253 (“MediCor”); and

 

(2)         JOHN A.ALSOP,
of The Old Stables, Harbour Road, Onchan, Isle of Man, IM3 1BG (“JA”). 

 

WHEREAS:

 

(A)        Pursuant to the Share Purchase Agreement, the Sellers agreed to sell
and MediCor agreed to purchase all of the Shares on the terms and subject to
the conditions contained in the Share Purchase Agreement.

 

(B)         The Purchase Price under the Share Purchase Agreement was satisfied
in part by the issue of the Consideration Shares by MediCor to the Sellers. 

 

(C)         MediCor and the Sellers have agreed to grant each other put and call
options in respect of the Consideration Shares.

 

(D)        JA is the registered and beneficial owner of the Option Shares. This
Agreement sets out the terms and conditions pursuant to which MediCor and JA
have agreed to grant each other put and call options in respect of the Option
Shares. 

 

THE PARTIES AGREE as follows:

 

1.           INTERPRETATION

 

1.1         In
this Agreement:

 

“Call Expiry Date” means the earlier
of: (a) the first date on which the closing price of the Common Stock as
reported on the principal stock exchange or automated quotation system on which
it is traded has been equal to or greater than US$20.00 for 30 out of the 45
previous consecutive trading days; and (b) the first date on which JA no longer
holds any Option Shares pursuant to transactions made in accordance with this
Agreement; 

 

“Call Option” means the right granted
to MediCor by clause 3.1;

 

“Call Option Notice” means the written
notice in the form set out in Schedule 2;

 

“Commercialisation Date” means the
date that the BioSil inflatable saline breast implant is approved by the United
States Food and Drug Administration for unrestricted commercialisation in the
United States;

 

“Exercise Date” means the date falling
eighteen months after the Commercialisation Date; 

 

1

 

“Option Shares” means any of the
643,500 shares of Common Stock issued to JA (or his nominee) in accordance with
the Share Purchase Agreement held by JA (or his nominee) from time to time,
together with any additional or replacement shares issued to JA as a
consequence of the operation of clause 5; 

 

“Nine-Month Date” means the date
falling nine months after the Commercialisation Date; 

 

“Option Date” means the date on which
a Call Option Notice pursuant to clause 2.2 or a Put Option Notice pursuant to
clause 3.2, is deemed to be given to either JA or MediCor, as the case may be,
by virtue of clause 8; 

 

“Public Offer” means an offer by any person
to acquire the whole of the issued share capital of MediCor, whether structured
as a tender offer, merger or otherwise;

 

“Put Expiry Date” means earliest of:
(a) the first date on which the closing price of the Common Stock as reported
on the principal stock exchange or automated quotation system on which it is
traded has been equal to or greater than US$10.00 for any 30 out of the
previous 45 consecutive trading days; (b) the first date on which JA no longer
holds any Option Shares; and (c) 30 days after the Put Option becomes
exercisable pursuant to clause 2.8;

 

“Put Option” means the right granted to JA by clause 2;

 

“Put Option Notice” means the written notice in the form set out in schedule 1; 

 

“Recommended Offer” means a Public Offer
which the Directors of MediCor have recommended MediCor shareholders to accept;

 

“Reorganisation” means any transaction instigated by MediCor,
whether at the direction of its board of directors or of one or more of its
shareholders, that causes the holders of Common Stock in MediCor as a whole
(and including JA in particular), without making or receiving any payment of
cash, to hold a different number and/or class of securities in MediCor after
the transaction than they held before the transaction;

 

“Share Purchase Agreement” means the
share purchase agreement dated 13 September 2005 entered into between MediCor
and the Sellers; and

 

“Silicone Approval Date” means the
date that any approval is obtained from the United States Food and Drug
Administration (or any successor authority) for the commercialisation of
silicone filled breast implants in the United States, other than the existing
approvals for such commercialisation for compassionate use.

 

1.2         In
this Agreement, a reference to a clause, paragraph or schedule, unless the
context otherwise requires, is a reference to a clause or paragraph of, or
schedule to, this Agreement.

 

2

 

1.3         Terms
defined in the Share Purchase Agreement shall have the same meanings in this
Agreement.

 

1.4         The
headings in this Agreement do not affect its interpretation.

 

2.           PUT OPTION

 

2.1         In
consideration of the mutual promises contained in this Agreement, and subject
to the terms of this Agreement, MediCor grants to JA an option to sell, and to
require MediCor to buy, all or any of the Option Shares. 

 

2.2         The
Put Option may be exercised on the terms of this Agreement by JA from time to
time on or after the Exercise Date until the Put Expiry Date (the “Put Option Period”) by JA delivering to
MediCor a Put Option Notice, provided that if the Put Expiry Date occurs prior
to the Exercise Date then JA shall have no right to exercise the Put Option.

 

2.3         NE
may at any time, upon notice to MediCor, elect to terminate the Put Option
when, notwithstanding clause 2.2 the Put Option shall terminate and,
notwithstanding clause 3.2, the Call Option shall also terminate. 

 

2.4         Subject
to clause 5, where sold pursuant to the Put Option, the purchase price per
Option Share (the “Put Option Price”)
shall be as follows:

 

2.4.1         US$5.50 if the Silicone Approval Date has occurred on or before the
Nine-Month Date;

 

2.4.2         US$6.50 if the Silicone Approval Date has occurred after the
Nine-Month Date and on or before the Exercise Date; or

 

2.4.3         US$7.50 if the Silicone Approval Date has not occurred on or before
the Exercise Date. 

 

2.5         The
Option Shares shall be sold with full title guarantee free from any Encumbrance
and with all rights attaching to the Option Shares at the date on which the Put
Option is exercised including, without limitation, the right to receive any
dividend, distribution or return of capital declared, paid or made in respect
of the Option Shares in respect of periods starting on or after the date on
which the Put Option is exercised.

 

2.6         Subject
to clause 2.9, JA agrees that at any time:

 

2.6.1         the maximum number of Option Shares in respect of which JA may serve
a Put Option Notice; and 

 

2.6.2         the maximum number of Option Shares which JA may otherwise transfer
to a third party (other than a Seller or connected person of any Seller), 

 

shall be
660,000 less the aggregate of

 

3

 

2.6.3         the aggregate number of shares of Common Stock obliged to be
acquired by MediCor from JA or any of the other Sellers, whether under this
Agreement or any Put and Call Option Agreement entered into by MediCor with any
of the other Sellers, in the three months prior to the date of the Put Option
Notice; and 

 

2.6.4         the aggregate number of Consideration Shares transferred to third
parties (other than a Seller or any connected person of a Seller) by JA or any
of the other Sellers in the three months prior to the date of the Put Option
Notice,

 

and any
Put Option Notice shall be deemed null and void to the extent that it purports
to require the acquisition by MediCor of a number of Option Shares in excess of
this amount. 

 

2.7         For
the avoidance of doubt, JA may exercise the Put Option more than once.

 

2.8         Notwithstanding
anything else in this Agreement, if following a Public Offer, but prior to the
Exercise Date (unless the Put Expiry Date has first occurred), a person becomes
entitled to compulsorily acquire the Common Stock which it does not own, then
the Put Option shall become immediately exercisable and the Put Option Price
shall be:

 

2.8.1         the price set out in clause 2.4 if the Silicone Approval Date and
the Commercialisation Date have both occurred by that time; and

 

2.8.2         $6.50 otherwise.      

 

2.9         Notwithstanding
the provisions of clause 2.6, while any Recommended Offer remains open for
acceptance NE may:

 

2.9.1         accept the Recommended Offer for any number of Option Shares; or

 

2.9.2         transfer any number of Option Shares to the person making the
Recommended Offer.

 

3.           CALL OPTION 

 

3.1         In
consideration of the mutual promises contained in this Agreement, and subject
to the terms of this Agreement, NE grants to MediCor an option to buy, and to
require JA to sell, all or any of the Option Shares.

 

3.2         Subject
to clause 3.3, the Call Option may be exercised by MediCor from time to time on
or after the Commercialisation Date until the Call Expiry Date (the “Call Option Period”) by MediCor delivering
to JA a Call Option Notice provided that if the Call Expiry Date occurs prior
to the Commercialisation Date then MediCor shall have no right to exercise the
Call Option. 

 

3.3         Notwithstanding
clause 3.2, the Call Option will automatically terminate upon termination by JA
of the Put Option in accordance with clause 2.3.

 

4

 

3.4         Subject
to clause 5, where sold pursuant to the Call Option, the purchase price per
Option Share  (the “Call Option Price”)
shall be as follows:

 

3.4.1         US$7.50 if the Call Option is exercised on or before the Nine-Month
Date;

 

3.4.2         US$10.00 if the Call Option is exercised after the Nine-Month Date
but on or before the Exericse Date; 

 

3.4.3         US$15.00 if the Call Option is exercised after the Exercise Date.   

 

3.5         The
Option Shares shall be sold with full title guarantee free from any Encumbrance
and with all rights attaching to the Option Shares at the date on which the
Call Option is exercised including, without limitation, the right to receive
any dividend, distribution or return of capital declared, paid or made in
respect of the Option Shares in respect of periods starting on or after the
date on which the Call Option is exercised.

 

3.6         JA
acknowledges that MediCor may cancel the Option Shares which are the subject of
the Call Option upon completion of the exercise of the Call Option in accordance
with this Agreement, without the requirement for any actions whatsoever to be
taken by JA.

 

3.7         For
the avoidance of doubt, MediCor may exercise the Call Option more than once.

 

4.           RESTRICTIONS

 

JA acknowledges that his rights under this Agreement are personal to him
and that the following or substantially similar wording may be included on the
share certificates representing the Option Shares:

 

“The Shares represented by this certificate are subject to a
Put and Call Option Agreement with MediCor. 
The rights granted to the holder of the Shares represented by this
certificate under the Put and Call Option Agreement may not be transferred,
assigned, encumbered or otherwise disposed of other than in accordance with the
terms of the Put and Call Option Agreement. A copy of the Put and Call Option
Agreement is on file at the principal executive office of MediCor.”

 

Upon any
permitted transfer of the Option Shares, the foregoing legend shall be removed
from the certificates representing such shares and the Put Option and the Call
Option shall terminate with respect to such Option Shares.

 

5.           REORGANISATIONS

 

5.1         The
Put Option Price and the Call Option Price shall each be adjusted following any
Reorganisation so that the amount payable by MediCor to JA upon the exercise in
full of the Put Option or the Call Option would be the same after as before
such Reorganisation, taking into account any MediCor securities or rights
attaching to or deriving from the Option Shares to receive MediCor securities,
in either case received as a result of such Reorganisation and which shall all
be subject to the Call Option and the Put Option on such terms as are necessary
to give effect to this provision.  Clause
2.6

 

5

 

shall be amended correspondingly.  MediCor shall promptly notify JA of any such
adjustments following consummation of any Reorganisation.

 

5.2         If
a Reorganisation takes place after the Option Date but before completion of the
transfer or cancellation of the Option Shares in connection with the exercise
of the Put Option or Call Option (as the case may be), JA shall either renounce
or, where permissible and requested by MediCor, assign to MediCor all rights
deriving from the Option Shares which are the subject of the Put Option or Call
Option as a result of the Reorganisation. 

 

6.           FURTHER ASSURANCE

 

Each party
shall, at the request of the other party, execute or procure the execution of
all documents and do or procure the doing of such acts and things as may reasonably
be required for the purpose of completing the transfer of the Option Shares in
accordance with the terms of this Agreement.

 

7.           GENERAL

 

7.1         Subject
to clause 4, JA shall as soon as reasonably practical and in any event with 5
Business Days inform MediCor of any transfer by him of any Option Shares. 

 

7.2         A
variation of this Agreement is valid only if it is in writing and signed by or
on behalf of each party.

 

7.3         The
failure to exercise or delay in exercising a right or remedy provided by this
Agreement or by law does not impair or constitute a waiver of the right or
remedy or an impairment of or a waiver of other rights or remedies.  No single or partial exercise of a right or
remedy provided by this Agreement or by law prevents further exercise of the
right or remedy or the exercise of another right or remedy.

 

7.4         No
party may (and may not purport to) assign or transfer or declare a trust of the
benefit of or in any other way alienate any of its rights under this Agreement
in whole or in part.

 

8.           NOTICES

 

8.1         A
notice or other communication under or in connection with this Agreement (a “Notice”) shall be:

 

8.1.1         in writing;

 

8.1.2         in the English language; and

 

8.1.3         delivered personally or sent by first class post (and air mail if
overseas) or by fax to the party due to receive the Notice to the address set
out in clause 8.3 or to another address, person or fax number specified by
that party by not less than 7 days’ written notice to the other party received
before the Notice was despatched.

 

6

 

8.2         Unless
there is evidence that it was received earlier, a Notice is deemed given if:

 

8.2.1         delivered personally, when left at the address referred to in
clause 8.3;

 

8.2.2         sent by mail, five Business Days after posting it; and

 

8.2.3         sent by fax, when confirmation of its transmission has been recorded
by the sender’s fax machine.

 

8.3         The
address referred to in clause 8.1.3 is:

 

	
  Name of party

  	
   

  	
  Address

  	
   

  	
  Fax No.

  	
   

  	
  Marked for the

  attention of

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  John Alsop

  	
   

  	
  Global House

  Isle of Man

  Business Park

  Douglas

  Isle of Man

  British Isles

  	
   

  	
  +44 1624 661
  656

  	
   

  	
  Sellers’
  Representative

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  With a copy to

  	
   

  	
  Brodies LLP

  15 Atholl

  Crescent

  Edinburgh

  EH3 8HA

  	
   

  	
  +44 131 228 3878

  	
   

  	
  Mr Iain Young/Mr Grant Campbell

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  MediCor

  	
   

  	
  4560 Decatur

  Boulevard

  Suite 300

  Las Vegas

  Nevada

  89103-5253

  USA

  	
   

  	
  +1 70 2932 4563

  	
   

  	
  Mr Donald K.
  McGhan

  	
   

  

 

9.           GOVERNING LAW AND
JURISDICTION

 

9.1         This
Agreement is governed by and shall be construed in accordance with English law.

 

9.2         The
parties irrevocably agree that the courts of England have exclusive
jurisdiction to settle any dispute arising from or connected with this
Agreement (a “Dispute”) including a dispute
regarding the existence, validity or termination of this Agreement or the
consequences of its nullity.

 

9.3         The
parties agree that the courts of England are the most appropriate and
convenient courts to settle any Dispute and, accordingly, that they will not
argue to the contrary.

 

9.4         The
parties agree that the documents which start any proceedings and any other
documents required to be served in relation to those proceedings may be served
on JA

 

7

 

in accordance with clause 8.  These documents may, however, be served in
any other manner allowed by law.  This
clause applies to all proceedings wherever started.

 

9.5         MediCor
irrevocably appoints Biosil Limited of Tournament Way, Ivanhoe Industrial
Estate, Off Smisby Road, Ashby de la Zouch, Leicestershire (the “Agent”) or such other person in England and
Wales as MediCor may from time to time nominate in writing to JA as agent to
accept process in England in any legal action or proceedings arising out of or
in connection with this Agreement and the documents to be entered into pursuant
to it.

 

9.6         MediCor
irrevocably agrees that any claim, judgement, or other notice process or any
written communication in connection with this Agreement or the documents to be
entered into pursuant to it shall be sufficiently and effectively served on it
if delivered to the Agent for the time being at the UK address notified to JA
whether or not forwarded to or received by MediCor.

 

9.7         If
the Agent ceases to be able to act as such or ceases to have an office in
England where process or written communications may be served, in either case
for any reason whatever, or MediCor elects to replace such Agent, MediCor
irrevocably agrees to appoint a new process agent in England acceptable to the
Sellers’ Representative (acting reasonably) and to deliver to the Sellers’ Representative
within 14 days a copy of written acceptance of appointment by the process
agent, some other person or persons resident in England or Wales as its agent
for the purposes of this clause and forthwith to notify the Sellers’
Representative in writing of such appointment. 
Nothing in this Agreement shall affect the right to serve process in any
other manner permitted by law.

 

10.         COUNTERPARTS

 

This Agreement
may be executed in any number of counterparts, each of which when executed and
delivered is an original and all of which together evidence the same agreement.

 

11.         INVALIDITY

 

If at any time
any provision of this Agreement is or becomes illegal, invalid or unenforceable
in any respect under the law of any jurisdiction, that shall not affect or impair:

 

11.1       the
legality, validity or enforceability in that jurisdiction of any other
provision of this Agreement; or

 

11.2       the
legality, validity or enforceability under the law of any other jurisdiction of
that or another provision of this Agreement.

 

12.         CONFIDENTIALITY AND
ANNOUNCEMENTS

 

12.1       Subject
to clause 12.2, no party may, at any time make or send a public announcement,
communication or circular concerning the transactions referred to in this
Agreement

 

8

 

unless it has first obtained each other party’s prior
written consent which may not be unreasonably withheld or delayed.

 

12.2       Clause
12.1 does not apply to a public announcement, communication or circular
required by law by a rule of a listing authority on which MediCor’s Shares are
listed, a stock exchange on which MediCor’s Shares are listed or traded or by a
Governmental Authority or other authority with relevant powers to which either
party is subject or submits, whether or not the requirement has force of law
provided that any public announcement, communication or circular will so far as
is practicable be made after consultation with the other party after taking
into account the reasonable requirements of the other party as to its timing, content
and manner of making or dispatch.

 

13.         COSTS

 

13.1       Each
party shall pay its own costs and expenses relating to the negotiation,
preparation, execution, enforcement and performance by it of this Agreement and
of each document referred to in it.

 

14.         SUCCESSORS AND
ASSIGNS

 

14.1       MediCor
agrees that the benefit of every provision in this Agreement is given to NE for
herself and for her successors in title. 
This Agreement is personal to and otherwise not assignable by JA.

 

15.         PAYMENTS FREE OF
WITHHOLDING 

 

15.1       If
there is a deduction or withholding required by law from a payment made
pursuant to this Agreement, the sum due from the relevant party shall be
increased to the extent necessary to ensure that, after the making of any
deduction or withholding, the recipient receives a sum equal to the sum it
would have received had no deduction of withholding been made.

 

16.         CONTRACT (RIGHTS OF
THIRD PARTIES) ACT 1999

 

16.1       A
person who is not a party to this Agreement has no rights under the Contracts
(Rights of Third Parties) Act 1999 to enforce any term of this Agreement.

 

9

 

SCHEDULE 1

 

FORM
OF PUT OPTION NOTICE

 

To:          MediCor Ltd.

4560 Decatur
Boulevard

Suite 300

Las Vegas

Nevada 89103-5253

USA

 

Fax:

 

Attention: Mr
Donald K. McGhan

 

Date:       [insert date]

 

PUT
OPTION NOTICE

 

1.           I refer to the Put and Call Option Agreement dated            2005
between Mr John A. Alsop and MediCor
Ltd (the “Option
Agreement”).

 

2.           Terms defined in the Option Agreement shall have the same meanings
in this Put Option Notice unless the context requires otherwise.

 

3.           I hereby notify you pursuant to clause 2.2 of the Option Agreement
that I wish to exercise the Put Option in relation to [/[state number]] of
Option Shares at the Put Option Price of $• for an aggregate consideration of $• to be paid to [specify account].

 

4.           I certify that the number of Consideration Shares transferred in the
last three months, whether by myself or any of the other Sellers, is •.

 

5.           I enclose a stock certificate for [•] Option Shares and a duly executed stock power for [•] Option Shares.  [Please
issue me a new stock certificate for [balance of] shares of Common Stock.]

 

6.           Please complete the acquisition of the above Option Shares on [no
fewer than 30 and no more than 60 Days later.]

 

 

	
   

  	
   

  
	
   

  	
   

  
	
  Signed by
  John A. Alsop

  

 

10

 

SCHEDULE
2

 

FORM
OF CALL OPTION NOTICE

 

[MEDICOR’S
LETTERHEAD]

 

To:          Mr John A. Alsop

Global House

Isle of Man
Business Park

Douglas

Isle of Man

British Isles

 

Fax:

 

Date:       [insert date]

 

CALL
OPTION NOTICE

 

1.           We refer to the Put and Call Option Agreement dated              2005
between Mr John A. Alsop and MediCor Ltd (the “Option Agreement”).

 

2.           Terms defined in the Option Agreement shall have the same meanings
in this Call Option Notice unless the context requires otherwise.

 

3.           We hereby notify you pursuant to clause 3.2 of the Option Agreement
that we wish to exercise the Call Option in relation to [/[state number]] of
Option Shares at the Call Option Price of $• per share and for an aggregate consideration of $•.

 

4.           Within 10 Business Days of receiving this notice please:

 

4.1         send us the stock certificate for at least this number of Option
Shares and a duly executed stock power in respect of [•] Option Shares; and

 

4.2         notify us of the account to which the above consideration should be
paid.

 

5.           No later than 10 Business Days following your compliance with
paragraph 4 above, we will complete the sale and purchase, pay you the above
consideration and issue you (if applicable) with a new stock certificate,
provided that we reserve all rights to cancel these shares as permitted by
clause 3.6 of the Option Agreement whether or not paragraph 4 is complied with.

 

 

	
   

  	
   

  
	
   

  	
   

  
	
  Signed by
  [    ]

  
	
  for and on
  behalf of MediCor Ltd.

  

 

11

 

	
  EXECUTED by the parties:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
    Signature

  	
   

  
	
   

  	
   

  
	
  Mr John A.
  Alsop

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Signed by

  	
  )

  	
   

  
	
  for

  	
  )

  	
   

  
	
  and on
  behalf of

  	
  )

  	
   

  
	
  MediCor
  Ltd.:

  	
  )

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
    Signature

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