Document:

exv10w39

 

EXHIBIT
10.39

LOAN RESTRUCTURE AGREEMENT

          This
LOAN RESTRUCTURE AGREEMENT (this “Agreement”) is made and
entered into this 7th day of
August, 2006 by and between Network Installation Corp., a Nevada corporation (the “Company”), and
Preston Capital Partners, LLC (“Preston”).

RECITALS

          A. The Company and Preston have entered into numerous loan, debenture and other agreements, a
list of which is attached hereto as Exhibit 1. The Company and Preston intend that this Agreement
govern all agreements between the Company and Preston and affiliates whether or not such agreements
are listed in Exhibit 1. The agreements listed in Exhibit 1 and any other agreements between the
Company and Preston are hereinafter referred to as the “Loan Documents.”

          B. Pursuant to the Loan Documents, from and after 2003, the Company has borrowed from Preston
approximately $375,000. The Loan Documents provide for certain prepayment premiums and other
penalties, some of which may have heretofore accrued.

          C. Certain of the Loan Documents provide that Preston is entitled to convert some or all of
the debt owed to it by the Company into common stock of the Company.

          D. The Company and Preston wish to restructure the Company’s obligations to Preston under the
Loan Documents upon the terms and conditions contained herein. In particular, the Company and
Preston wish to provide for the elimination of all obligations of the Company to issue stock to
Preston or any other entity.

          E. The Company and Preston intend that the restructuring provided for in this Agreement shall
be effective as of June 30, 2006. Preston takes no position with respect to the Company’s tax and
accounting treatment of the restructuring under this Agreement.

COVENANTS

     1. New Promissory Note. At or before the execution of this Agreement, the Company
shall execute and deliver to Preston a signed promissory note (the “New Note”), in the form
attached hereto as Exhibit 2, in the face amount of $375,000, payable as provided therein with
interest at the rate of 7% per annum. The New Note shall not provide for any prepayment penalty or
premium. The New Note shall supercede all prior evidences of indebtedness of the Company to
Preston, including all of the convertible debentures listed in the Loan Documents, except in the
event of default as set forth in section 5, below. The Company’s satisfaction of the terms of the
New Note shall constitute a full and complete accord and satisfaction of all of the debts of the
Company to Preston.

 

 

     2. Cancellation of Convertible Debentures. All convertible debentures and any other
agreements between the Company and Preston pursuant to which Preston may be entitled to acquire
stock of the Company, are hereby cancelled and shall be surrendered to the Company.

     3. Preston Waivers. Preston hereby waives:

	 	3.1	 	Any default under the Loan Documents that occurred prior to the
date of this Agreement.
	 
	 	3.2	 	Any penalty or premium that has accrued under the Loan
Documents prior to the date of this Agreement.
	 
	 	3.3	 	Any obligation to register any securities of the Company
imposed under the Loan Documents that arose prior to the date of this
Agreement.

     4. Enforceability of Loan Documents. Except as modified or supplanted by this
Agreement, the Loan Documents shall remain in force and effect.

     5. Default. In the event of the occurrence of a default or of an event of default,
under this Agreement or the New Note, Preston has the right to (1) declare the full unpaid balance
of the New Note to be immediately due and owing, and (2) enforce each of its remedies and rights of
collection under the Loan Documents, including conversion, without regard to provisions in this
Agreement and the New Note which would otherwise limit Preston’s rights under the Loan Documents.
All other rights, representations and warranties shall survive and be governed as agreed pursuant
to the Loan Documents. In the event of a default, the Company shall be obligated to issue to
Preston stock of the Company pursuant to the terms and conditions of the Loan Documents without
regard to any provisions in this Agreement or the New Note which would otherwise limit Preston’s
rights. After notice of default, the Company shall have a period to cure the default consisting of
the later of (i) 10 business days, or (ii) the cure period prescribed in the New Note and the Loan
Documents

     6. Notices. All communications required or permitted under this Agreement shall be in
writing and any communication or delivery hereunder shall be deemed to have been duly made if and
when actually delivered, or if mailed by registered or certified mail, postage prepaid, addressed
as set forth below, shall be deemed to have been duly made on the date mailed. Either party may,
by written notice so delivered to the other, change the address to which delivery shall thereafter
be made.

(a)     Notices to the Company:

Jeffrey Hultman

Network Installation Corp.

5625 S. Arville, Suite E

Las Vegas, Nevada 89118-2280

Telephone: (702) 889-8777

Facsimile: (702) 889-8237

 

 

With copy to:

Ross Plourde, Esq.

McAfee & Taft A Professional Corporation

10th Floor, Two Leadership Square

Oklahoma City, OK 73102

Telephone: (405) 235-9621

Facsimile: (405)235-0439

(b)     Notices to Preston:

Telephone:

Facsimile:

With copy to:

     7. Choice of Law: This Agreement shall be governed by and construed in accordance
with the internal laws of the state of Nevada, without respect to any choice of law provisions of
that state.

     8. Binding Effect. This Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns. No assignment by either party to
this Agreement, or their successors or assigns, shall relieve either party (or any successor or
assign) of any of its obligations under this Agreement.

     9. Counterparts. This Agreement may be executed in any number of counterparts, which
taken together shall constitute one and the same instrument and each of which shall be considered
an original for all purposes.

 

 

     10. Expenses. Except as otherwise provided in this Agreement, each party hereto will
bear and pay its own expenses of negotiating and consummating the transactions contemplated by this
Agreement

     11. Section Headings. The section headings contained in this Agreement are for
convenient reference only and shall not in any way affect the meaning or interpretation of this
Agreement.

     12. Superseding Effect. This Agreement supersedes any prior agreement and
understanding between the parties with respect to the subject matter of this Agreement.

     13. Time of the Essence. Time is of the essence of each and every provision of this
Agreement.

     14. Effective Date. This Agreement shall be effective as of June 30, 2006. Preston
takes no position with respect to the Company’s tax and accounting treatment of the restructuring
under this Agreement.

	 	 	 	 	 
	 

	 	NETWORK INSTALLATION CORP.
	 	 
	 
	 	 	 	 
	 
	 	/s/ Jeffrey R. Hultman	 	 
	 
	 	 

By:
	 	 
	 
	 	 	 	 
	 

	 	PRESTON CAPITAL PARTNERS, LLC	 	 
	 
	 	 	 	 
	 
	 	/s/ John P. Wykoff	 	 
	 

	 	 

By:
	 	 

 

 

EXHIBIT 1

LOAN DOCUMENTS

	1.	 	Debenture between the Company and Preston Capital Partners, LLC, dated February 3, 2005
	 
	2.	 	Debenture between the Company and Preston Capital Partners, LLC, dated February 10,
2005
	 
	3.	 	Debenture between the Company and Preston Capital Partners, dated May 26, 2005
	 
	4.	 	Debenture between the Company and Preston Capital Partners, dated June 20, 2005
	 
	5.	 	Debenture between the Company and Preston Capital Partners, dated July 20, 2005
	 
	6.	 	Debenture between the Company and Preston Capital Partners, dated August 17, 2005
	 
	7.	 	Investment Agreement between the Company and Preston Capital Partners, LLC, dated
January 21, 2004
	 
	8.	 	Registration Rights Agreement between the Company and Preston Capital Partners, LLC,
dated January 21, 2004
	 
	9.	 	Attached is a spreadsheet indicating the dates that debentures were issued by the
Company to Preston. All agreements related to the issuance of debentures on those dates
are hereby incorporated by reference to the extent not otherwise listed in this exhibit.

 

 

EXHIBIT 1 — Continued

Network Installation Corp

Schedule of Convertible Debentures

At August 3, 2006

	 	 	 	 	 	 	 	 	 
	 	 	Date Issued	 	Price
	Preston Capital Partners
	 	 	2003	 	 	$	25,000	 
	 
	 	 	2/3/2005	 	 	$	50,000	 
	 
	 	 	2/10/2005	 	 	$	25,000	 
	 
	 	 	5/26/2005	 	 	$	30,000	 
	 
	 	 	06/20/05	 	 	$	50,000	 
	 
	 	 	07/20/05	 	 	$	50,000	 
	 
	 	 	08/17/05	 	 	$	100,000	 
	 
	 	 	10/13/05	 	 	$	45,000	 
	 
	 	 	 	 	 	 	 	 
	 
	 	Total	 	$	375,000	 

 

 

EXHIBIT 2

PROMISSORY NOTE

	 	 	 
	$375,000

	 	August 7, 2006

     FOR VALUE RECEIVED, the undersigned, Network Installation Corp. (the “Maker”), promises to pay
to the order of Preston Capital Partners (the “Holder”),
c/o John P. Wykoff, or at such
other place as the Holder hereof may from time to time designate in writing, the principal amount
of $375,000, together with interest thereon from the date hereof at the rate of seven percent (7%)
per annum. Maker shall make payments in accordance with the amortization schedule attached as
Exhibit A.

     This note may be prepaid in whole or in part at any time without premium or penalty. Partial
prepayments shall be applied in the manner designated by Maker at the time such payment is made or,
in the absence of such designation, in the discretion of the Holder.

     This Note is given pursuant to and is subject to the terms and provisions of that certain Loan
Restructure Agreement of even date herewith.

     Any amount not paid when due hereunder shall bear interest at a rate equal to the lesser of
(i) 10% per annum, or (ii) the maximum amount that may be collected under law, until paid. During
the existence of any default hereunder, the Holder of this note may apply payments received on any
amount due hereunder, or any other instrument now or hereafter evidencing or securing the
indebtedness evidenced hereby, as the Holder, in their sole discretion, may determine.

          The entire principal indebtedness evidenced by the Note and all accrued interest thereon shall
become and be immediately due and payable, at the option of the Holder hereof, upon the occurrence
of any of the following events of default: (i) the Maker’s failure to timely make payment of any
amount due hereunder or under the Loan Restructure Agreement that is not cured within 10 business
days after notice in writing to the Company, or (ii) the Maker’s failure to comply with any other
provisions or conditions of the Note, the Loan Restructure Agreement, or any other instrument,
including, the surviving provisions of the Loan Documents referred to in the Loan Restructure
Agreement, now or hereafter evidencing or securing the indebtedness evidenced hereby as modified by
the Loan Restructure Agreement that is not cured within the later of (a) 10 business days or (b)
the cure period prescribed in the instrument pursuant to which the default occurred, after notice
in writing of any such default.

     The failure of the Holder hereof to exercise any of the remedies or options set forth in this
note, the Loan Restructure Agreement, or in any instrument now or hereafter evidencing or securing
the indebtedness evidenced hereby (as modified by the Loan Restructure Agreement) upon the
occurrence of one or more events of default shall not constitute a waiver of the right to exercise
any such remedy or option or any other remedy or option at any subsequent time in respect to the
same or any other event of default. The acceptance by the Holder hereof of any payment which is
less

 

 

than the total amount due and payable at the time of such payment shall not constitute a waiver of
the right to exercise any of the foregoing remedies or options at that time or at any subsequent
time or nullify any prior exercise of any such remedy or option.

     As often as this note is placed in the hands of an attorney for collection or to defend or
enforce any of the Holder’s rights hereunder, the Maker will pay to the Holder hereof its
reasonable attorneys’ fees, together with all court costs and other expenses incurred in connection
therewith.

     The Maker, endorsers, sureties, guarantors, and all other persons who are or may become liable
for all or any part of the indebtedness evidenced hereby waive presentment, protest, and notice of
dishonor.

     Notwithstanding any provisions herein or in the Loan Restructure Agreement to the contrary,
the total liability for payments in the nature of interest shall not exceed the limits imposed by
laws of the State of Nevada relating to maximum charges of interest, and Holder shall not be
entitled to receive, collect, or apply, as interest on the indebtedness evidenced hereby, any
amount in excess of the maximum legal rate of interest permitted to be charged by applicable law.
If the Holder ever receives, collects, or applies, as interest, any such excess, the amount that
would be excessive interest shall be applied to reduce the unpaid principal balance of the
indebtedness evidenced hereby, and if the unpaid principal balance of such indebtedness is paid in
full, any remaining excess shall be immediately paid to the Maker.

          IN WITNESS WHEREOF, the Maker has executed this note the day and year first written above.

	 	 	 	 	 
	 

	 	Network Installation Corp.	 	 
	 
	 	 	 	 
	 
	 	/s/ Jeffrey R. Hultman 	 	 
	 

	 	 

By:
	 	 

 

 

EXHIBIT A to Promissory Note

Network Installation Corporation

Note Payable — Preston

As of August 3, 2006

	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Interest	 	 	 
	 	 	 	 	 	 	 	Rate	 	Principal	 
	Date/Payment Number	 	 	Payment	 	7.00%	 	Balance	 
	 	 	 	 	 	 	 	 	 	 	 	375,000.00	 
	August 3, 2006 - 1	 	$	2,000.00	 	$	2,187.50	 	 	375,187.50	 
	September 1, 2006 -2	 	 	2,000.00	 	 	2,188.59	 	 	375,376.09	 
	October 1, 2006 - 3	 	 	2,000.00	 	 	2,189.69	 	 	375,565.79	 
	November 1, 2006 - 4	 	 	2,000.00	 	 	2,190.80	 	 	375,756.59	 
	December 1, 2006 - 5	 	 	2,000.00	 	 	2,191.91	 	 	375,948.50	 
	January 1, 2007 - 6	 	 	2,000.00	 	 	2,193.03	 	 	376,141.53	 
	February 1, 2007 - 7	 	 	2,000.00	 	 	2,194.16	 	 	376,335.69	 
	March 1, 2007 - 8	 	 	2,000.00	 	 	2,195.29	 	 	376,530.98	 
	April 1, 2007 - 9	 	 	2,000.00	 	 	2,196.43	 	 	376,727.42	 
	May 1, 2007 - 10	 	 	2,000.00	 	 	2,197.58	 	 	376,924.99	 
	June 1, 2007 - 11	 	 	2,000.00	 	 	2,198.73	 	 	377,123.72	 
	July 1, 2007- 12	 	 	2,000.00	 	 	2,199.89	 	 	377,323.61	 
	August 1, 2007 - 13	 	 	2,000.00	 	 	2,201.05	 	 	377,524.66	 
	September 1, 2007 - 14	 	 	2,000.00	 	 	2,202.23	 	 	377,726.89	 
	October 1, 2007 - 15	 	 	2,000.00	 	 	2,203.41	 	 	377,930.30	 
	November 1, 2007 - 16	 	 	2,000.00	 	 	2,204.59	 	 	378,134.89	 
	December 1, 2007 - 17	 	 	2,000.00	 	 	2,205.79	 	 	378,340.68	 
	January 1, 2008 - 18	 	 	2,000.00	 	 	2,206.99	 	 	378,547.67	 
	February 1, 2008 -19	 	 	8,000.00	 	 	2,208.19	 	 	372,755.86	 
	March 1, 2008 -20	 	 	8,000.00	 	 	2,174.41	 	 	366,930.27	 
	April 1, 2008 -21	 	 	8,000.00	 	 	2,140.43	 	 	361,070.70	 
	May 1, 2008 - 22	 	 	8,000.00	 	 	2,106.25	 	 	355,176.94	 
	June 1, 2008 - 23	 	 	8,000.00	 	 	2,071.87	 	 	349,248.81	 
	July 1, 2008- 24	 	 	8,000.00	 	 	2,037.28	 	 	343,286.09	 
	August 1, 2008 - 25	 	 	8,000.00	 	 	2,002.50	 	 	337,288.59	 
	September 1, 2008 - 26	 	 	8,000.00	 	 	1,967.52	 	 	331,256.11	 
	October 1, 2008 - 27	 	 	8,000.00	 	 	1,932.33	 	 	325,188.44	 
	November 1, 2008 - 28	 	 	8,000.00	 	 	1,896.93	 	 	319,085.37	 
	December 1, 2008 - 29	 	 	8,000.00	 	 	1,861.33	 	 	312,946.70	 
	January 1, 2009 - 30	 	 	8,000.00	 	 	1,825.52	 	 	306,772.22	 
	February 1, 2009 - 31	 	 	8,000.00	 	 	1,789.50	 	 	300,561.73	 
	March 1, 2009 - 32	 	 	8,000.00	 	 	1,753.28	 	 	294,315.01	 
	April 1, 2009 - 33	 	 	8,000.00	 	 	1,716.84	 	 	288,031.84	 
	May 1, 2009 - 34	 	 	8,000.00	 	 	1,680.19	 	 	281,712.03	 
	June 1, 2009 - 35	 	 	8,000.00	 	 	1,643.32	 	 	275,355.35	 
	July 1, 2009 - 36	 	 	8,000.00	 	 	1,606.24	 	 	268,961.59	 
	August 1, 2009 - 37	 	 	8,000.00	 	 	1,568.94	 	 	262,530.53	 
	September 1, 2009 - 38	 	 	8,000.00	 	 	1,531.43	 	 	256,061.96	 
	October 1, 2009 - 39	 	 	8,000.00	 	 	1,493.69	 	 	249,555.65	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Interest	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Rate	 	 	Principal	 
	Date/Payment Number	 	 	 	 	Payment	 	 	7.00%	 	 	Balance	 
	November 1, 2009 - 40	 	 	 	 	 	 	8,000.00	 	 	 	1,455.74	 	 	 	243,011.40	 
	December 1, 2009 - 41	 	 	 	 	 	 	8,000.00	 	 	 	1,417.57	 	 	 	236,428.96	 
	January 1, 2010 - 42	 	 	 	 	 	 	8,000.00	 	 	 	1,379.17	 	 	 	229,808.13	 
	February 1, 2010 - 43	 	 	 	 	 	 	8,000.00	 	 	 	1,340.55	 	 	 	223,148.68	 
	March 1, 2010 - 44	 	 	 	 	 	 	8,000.00	 	 	 	1,301.70	 	 	 	216,450.38	 
	April 1, 2010 - 45	 	 	 	 	 	 	8,000.00	 	 	 	1,262.63	 	 	 	209,713.01	 
	May 1, 2010 - 46	 	 	 	 	 	 	8,000.00	 	 	 	1,223.33	 	 	 	202,936.33	 
	June 1, 2010 - 47	 	 	 	 	 	 	8,000.00	 	 	 	1,183.80	 	 	 	196,120.13	 
	July 1, 2010 - 48	 	 	 	 	 	 	8,000.00	 	 	 	1,144.03	 	 	 	189,264.16	 
	August 1, 2010 - 49	 	 	 	 	 	 	8,000.00	 	 	 	1,104.04	 	 	 	182,368.20	 
	September 1, 2010 - 50	 	 	 	 	 	 	8,000.00	 	 	 	1,063.81	 	 	 	175,432.02	 
	October 1, 2010 - 51	 	 	 	 	 	 	8,000.00	 	 	 	1,023.35	 	 	 	168,455.37	 
	November 1, 2010 - 52	 	 	 	 	 	 	8,000.00	 	 	 	982.66	 	 	 	161,438.03	 
	December 1, 2010 - 53	 	 	 	 	 	 	8,000.00	 	 	 	941.72	 	 	 	154,379.75	 
	January 1, 2011 - 54	 	 	 	 	 	 	8,000.00	 	 	 	900.55	 	 	 	147,280.30	 
	February 1, 2011 - 55	 	 	 	 	 	 	8,000.00	 	 	 	859.14	 	 	 	140,139.43	 
	March 1, 2011 - 56	 	 	 	 	 	 	8,000.00	 	 	 	817.48	 	 	 	132,956.91	 
	April 1, 2011 - 57	 	 	 	 	 	 	8,000.00	 	 	 	775.58	 	 	 	125,732.49	 
	May 1, 2011 - 58	 	 	 	 	 	 	8,000.00	 	 	 	733.44	 	 	 	118,465.93	 
	June 1, 2011 - 59	 	 	 	 	 	 	8,000.00	 	 	 	691.05	 	 	 	111,156.99	 
	July 1, 2011 - 60	 	 	 	 	 	 	111,805.41	 	 	 	648.42	 	 	 	(0.01	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	475,805.41	 	 	 	100,805.40	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Payments Made in 2006	 	 	 	 	 	10,000.00	 	 	 	 	 	 	 	 	 
	Total Payments Made in 2007	 	 	 	 	 	24,000.00	 	 	 	 	 	 	 	 	 
	Total Payments Made in 2008	 	 	 	 	 	90,000.00	 	 	 	 	 	 	 	 	 
	Total Payments Made in 2009	 	 	 	 	 	96,000.00	 	 	 	 	 	 	 	 	 
	Total Payments Made in 2010	 	 	 	 	 	96,000.00	 	 	 	 	 	 	 	 	 
	Total Payments Made in 2011	 	 	 	 	 	159,805.41	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total	 	 	 	 	 	475,805.41exv10w1

 

Exhibit 10.1

THIS AGREEMENT is made on 17 May 2006

Between

	(1)	 	COLOPLAST A/S (registered number CVR-nr 69 74 99 17) whose registered office is at Holtedam
1, 3050 Humlebaek, Denmark (Coloplast);
	 
	(2)	 	COLOPLAST LIMITED (registered in England and Wales with number 01094405) whose registered
office is at Peterborough Business Park, Peterborough, Cambridgeshire, PE2 6FX (CP UK);
	 
	(3)	 	MENTOR MEDICAL LIMITED (registered in England and Wales with number 04318120) whose
registered office is at 10 Commerce Way, Lancing, West Sussex BN15 8TA (MML);
	 
	(4)	 	ROCHESTER MEDICAL CORPORATION, a Minnesota corporation with its principal place of business
at One Rochester Medical Drive, Stewartville, MN 55976, USA (RMC); and
	 
	(5)	 	ROCHESTER MEDICAL LIMITED (registered in England and Wales with number 5779226) whose
registered office is at 21 Wilson Street, London EC2M 2TD (the Purchaser).

(the Agreement).

Whereas:

(A) MML owns the Assets.

(B) Coloplast intends to purchase MML and the Licensed IP as part of Coloplast’s acquisition of
Mentor Corporation’s worldwide urology business.

(C) Coloplast, CP UK and MML (together the Selling Parties) have agreed to sell the Assets and
license the Licensed IP to the Purchaser or RMC for the consideration and upon the terms set out in
this agreement.

It is hereby agreed as follows:

1. Definitions

1.1 Words and expressions written with an initial capital letter and used in this Agreement shall
have the meanings set out in Schedule 1, unless the context requires otherwise or unless such words
and expressions are defined elsewhere in this Agreement.

1.2 The headings in this agreement shall not affect its interpretation.

2. Agreement to Sell and Price

2.1 The Selling Parties shall sell and transfer (or procure the sale and transfer of) and the
Purchaser shall purchase and take over the following:

Page 1

 

	(a)	 	the benefit (subject to the burden) of the Contracts;
	 
	(b)	 	the Licences and Permits;
	 
	(c)	 	the Property;
	 
	(d)	 	the Furniture, Fixtures and Equipment;
	 
	(e)	 	the Transferred IP;
	 
	(f)	 	the IT Systems
	 
	(g)	 	the Stock;
	 
	(h)	 	the Business Records; and
	 
	(i)	 	the Market Goodwill (together, the Assets);

but excluding the Liabilities and the Excluded Assets.

Nothing in this Agreement shall pass to the Purchaser or be construed as an acceptance by the
Purchaser of any liability or obligation of the Selling Parties other than as expressly set out in
this Agreement.

2.2 Coloplast shall licence the Licensed IP to the Purchaser pursuant to the terms of the Trade
Mark Licence.

2.3 Coloplast and CP UK covenant that, as of the Closing Date:

	(a)	 	they will have the unencumbered right to transfer the legal and beneficial title to all the
Assets; and
	 
	(b)	 	the Assets will at Closing be free from all Encumbrances other than Permitted Encumbrances.

2.4 The Purchaser shall not be obliged to complete the purchase of any of the Assets under this
Agreement unless it can purchase them all simultaneously.

2.5 In consideration for the sale and transfer by the Selling Parties of the Assets and the grant
of the licences of the Licensed IP, the Purchaser shall, subject to the terms of clause 13, pay to
Coloplast (for itself and as agent for the Selling Parties) the price set out in this clause (the
Purchase Price), which shall be satisfied as follows:

	(a)	 	$14,609,000, which shall consist of:

	 	(i)	 	$9,269,000 payable in cash at Closing (the Initial Payment);
	 
	 	(ii)	 	$5,340,000 in the form of the promissory note (the Loan Note) set
out in Schedule 6 (the Deferred Payment);

Page 2

 

	(b)	 	an amount for the Stock (the Stock Payment), as calculated and payable in cash in accordance
with Part B of Schedule 2; and
	 
	(c)	 	any Post Closing Adjustment, as calculated in accordance with Part A of Schedule 2.

3. Purchase Price Allocation

3.1 The Selling Parties and the Purchaser shall negotiate in good faith with a view to agreeing the
basis on which the Purchase Price shall be allocated as between the relevant Assets within 90 days
of Closing. If the parties are unable to agree on an allocation, each party shall be free to make
its own good faith allocation of the Purchase Price among the Assets for purposes of its accounting
records and Tax Returns. Notwithstanding the foregoing, all Parties acknowledge that the entire
Purchase Price shall be allocated between the Assets provided by MML. Any allocation made under
this clause, whether or not agreed between the Selling Parties and the Purchaser, shall include for
the avoidance of doubt a determination of how any sums payable under the Loan Note or the
Post-Closing Adjustment (if any) shall be allocated between the Assets.

3.2 Any payment made by the Selling Parties in respect of a breach of any of the Seller Warranties
or otherwise pursuant to this Agreement shall (and shall be deemed to) reduce the consideration
paid for the Assets under this Agreement by a matching amount. The reduction will be allocated as
nearly as possible to the Assets to which the breach relates or (if that is not practicable or
possible) as the Purchaser shall decide, acting reasonably.

4. Condition to Closing

Closing shall be conditional on completion of the purchase by Coloplast of the worldwide urology
business of Mentor Corporation at a closing to be held contemporaneously with the Closing.

5. Closing

5.1 Closing shall take place at the offices of Freshfields Bruckhaus Deringer, 65 Fleet Street,
London EC4Y 1HS, in accordance with clause 5.2.

5.2 At Closing, the Selling Parties shall cause to be delivered or made available to the Purchaser:

	(a)	 	a copy of the minutes of a meeting of the board of directors of each of the Selling Parties
(or, in the case of Coloplast, the equivalent Danish law documents) authorising the execution
by the relevant Selling Party of this Agreement and all other documents required by this
Agreement to be executed by such Selling Party, and the doing of all such things as are
incidental to its implementation (such copy minutes being certified as correct and of
continuing authority as at Closing by the secretary of the relevant Selling Party);

Page 3

 

	(b)	 	such deeds, documents, assurances, acts and things as the Purchaser may reasonably require to
complete the sale and purchase of the Assets (other than the Property) and to vest good title
to the Assets being transferred at Closing together with all deeds and documents of title
relating thereto, duly executed in agreed form;
	 
	(c)	 	the Transfer duly executed together with all those deeds and title documents in relation to
the Property held by the Selling Parties; and
	 
	(d)	 	subject to clause 5.10, possession of the Property and of the other tangible Assets agreed to
be sold under this Agreement.
	 
	5.3	 	At Closing, the Purchaser shall:
	 
	(a)	 	pay to Coloplast (for itself and as agent for the Selling Parties) the Initial Payment;
	 
	(b)	 	execute and deliver the Loan Note to Coloplast (for itself and as agent for the Selling
Parties);
	 
	(c)	 	execute and deliver to Coloplast the Trade Mark Licence in the form attached hereto at Part B
of Schedule 7;
	 
	(d)	 	execute and deliver to MML the Trade Mark Assignment in the form attached hereto at Part A of
Schedule 7;
	 
	(e)	 	execute and deliver to MML the Lease substantially in the form attached hereto at Part D of
Schedule 12; and
	 
	(f)	 	deliver or make available to the Selling Parties a copy of the minutes of a meeting of the
board of directors of the Purchaser authorising the execution by the Purchaser of this
Agreement and all other documents required by this Agreement to be executed by the Purchaser,
and the doing of all such things as are incidental to its implementation (such copy minutes
being certified as correct and of continuing authority as at Closing by the secretary of the
Purchaser);

5.4 At Closing, Coloplast shall execute and deliver to the Purchaser the Trade Mark Licence in the
form attached hereto at Part B of Schedule 7.

5.5 At Closing, MML shall execute and deliver to the Purchaser the Trade Mark Assignment in the
form attached hereto at Part A of Schedule 7.

5.6 At Closing, MML shall execute and deliver to the Purchaser the Lease in the form attached
hereto at Part D of Schedule 12.

5.7 From the date of this Agreement until (and including) the Closing Date, each of the Selling
Parties will make reasonable efforts to continue in full force all of the insurance policies
maintained by them in respect of the Assets or the Business.

Page 4

 

5.8 Upon Closing all insurance cover arranged in relation to the Assets by any of the Selling
Parties shall cease (in relation to insured events taking place after Closing) and the Purchaser
shall procure that no member of the Purchaser Group shall make any claim under any such policies.
The Selling Parties shall be entitled to make arrangements with their insurers to reflect this
clause.

5.9 If before Closing any Asset is lost, destroyed or damaged, the Purchaser may require the
consideration payable to the Selling Parties under this Agreement to be reduced by an amount
corresponding to the cost of replacing, repairing or reinstating the Asset, in which case all
insurance moneys received in respect of the loss, destruction or damage shall belong to the
relevant Selling Party.

5.10 Subject only to Closing the Purchaser hereby grants the Selling Parties a licence to have
reasonable access to the Property within Working Hours (such access to be granted upon the
reasonable request of the relevant Selling Party) as is reasonably necessary for the purpose of
removing the Excluded Assets from the Property and such licence shall terminate on the removal of
the Excluded Assets, provided that the Selling Parties will make good any physical damage to the
Property thereby occasioned.

6. Title and Supplementary Provisions

Title and risk in respect of the Assets shall pass to the Purchaser on Closing. Title to all
Assets which can be transferred by delivery shall pass on delivery and such delivery shall be
deemed to take place at the Closing.

7. Property

The provisions of Schedule 12 shall apply to the sale of the Property.

8. Employees

The provisions of Schedule 8 shall apply in respect of the Transferred Employees.

9. Contracts

The provisions of Schedule 10 shall apply in respect of the Contracts.

10. Liabilities and Post-Closing Obligations

10.1 Nothing in this Agreement shall make the Purchaser liable in any way for anything done or
omitted to be done in relation to the Business or any of the Assets before Closing or for the
Liabilities. The Selling Parties shall promptly discharge all of the Liabilities and shall
indemnify and hold the Purchaser harmless against all Losses and Expenses suffered or incurred by
it directly in connection with all such things done or omitted to be done in relation to any of the
Assets before Closing and all the Liabilities.

10.2 The benefit of all orders relating to the Contracts which are placed with any of the Selling
Parties on or after Closing, and all payments relating to or connected with

Page 5

 

them which are received by the Selling Parties after the Closing, shall belong to the Purchaser and
the Selling Parties undertake to promptly inform the Purchaser of the placing of any such orders
and to promptly forward to the Purchaser any documentation or payments received by them after
Closing in connection with the Contracts.

10.3 All periodical charges and periodical outgoings related to the Assets (other than those
specifically dealt with under the Lease) shall be apportioned on a time basis so that such part of
the relevant charges attributable to the period ending on the Closing Date shall be borne by the
Selling Parties and such part of the relevant charges attributable to the period commencing on the
day immediately following the Closing Date shall be borne by the Purchaser. All periodical
receipts relating to the Assets shall be apportioned between the Selling Parties and the Purchaser
on a like basis.

10.4 For three years following the Closing Date, the Selling Parties shall provide the Purchaser
(at the Purchaser’s cost) with reasonable access within Working Hours to (and the right to take
copies of) the records held by them immediately after Closing (such records to be maintained in
safekeeping by the Selling Parties (at their own cost) for the duration of the relevant period) to
the extent that they relate to the Business and to the period up to Closing to the extent that such
access is necessary for the purposes of complying with any applicable regulatory requirements.
This obligation is subject to the provisions of clause 19.

10.5 For three years following the Closing Date, the Purchaser shall provide the Selling Parties
(at the Selling Parties’ cost) with reasonable access within Working Hours to (and the right to
take copies of) the records held by it after Closing (such records to be maintained in safekeeping
by the Purchaser (at its own cost) for the duration of the relevant period) to the extent that they
relate to the Excluded Assets. This obligation is subject to the provisions of clause 19.

10.6 The parties to this Agreement shall if necessary enter into good faith negotiations, and
provide each other with all reasonable assistance, in order to produce such further documentation
as may be required by the Office of Fair Trading in relation to the Proposed Transaction.

10.7 From and after the Closing, the Selling Parties will afford the Purchaser and RMC and their
respective representatives reasonable access at reasonable times and upon reasonable notice to the
books and records and other information regarding MML and the Business, including the work papers
of MML’s independent auditors, solely for the purpose of preparing audited financial statements for
Purchaser in respect of the Business and Assets. Following the Closing MML shall cooperate with
the Purchaser in the preparation of audited financial statements for the Purchaser in respect of
the Business and Assets for the past three fiscal years and any interim periods specified in the
rules of the Securities Exchange Act of 1934, all at the Purchaser’s sole expense.

Page 6

 

11. Tax 

11.1 Any sums payable by the Purchaser to the Selling Parties under this Agreement are exclusive of
VAT.

11.2 The Selling Parties and the Purchaser agree that any supplies by Coloplast or CP UK to the
Purchaser will be subject to VAT and that, in the case of supplies by Coloplast to the Purchaser,
any such VAT would be payable to H.M. Revenue & Customs by the Purchaser and not by Coloplast.
Coloplast and CP UK agree that they shall, within ten Business Days of Closing, issue to the
Purchaser a valid VAT invoice for any supplies that they have made, and the Purchaser agrees that
it shall pay to the Selling Parties, in addition to any other sums payable under this Agreement, an
amount equal to any VAT specified in the invoice.

11.3 The Selling Parties and the Purchaser intend and shall use all reasonable endeavours to ensure
that section 49(1) VATA and article 5 of the Value Added Tax (Special Provisions) Order 1995 will
apply to the transfer of the Assets and accordingly:

	(a)	 	the Selling Parties and the Purchaser shall on the date of this Agreement or in any event not
later than the Closing Date jointly send a written application to H.M. Revenue & Customs
seeking a ruling as to whether the transfer of the Assets to the Purchaser pursuant to this
Agreement is to be treated as the transfer to the Purchaser of all or part of the business of
the Selling Parties as a going concern within article 5; and
	 
	(b)	 	on Closing, the Selling Parties shall deliver to the Purchaser all records referred to in
section 49 VATA and shall not make any request to HM Revenue & Customs for a direction that
such records be taken out of the custody of the Purchaser, and the Purchaser undertakes to
preserve such records for such period as may be required by law and during that time to permit
the Selling Parties or their agents reasonable access to inspect or copy them at the Selling
Parties’ expense.

11.4 If HM Revenue & Customs determine that all or part of the consideration for the sale and
purchase of the Assets is subject to VAT, the Selling Parties shall issue the Purchaser with a
proper VAT invoice and the Purchaser shall pay to the Selling Parties an amount equal to the VAT
specified in the invoice PROVIDED THAT no VAT shall be payable by the Purchaser in respect of any
part of the consideration attributable to the sale of the whole or any part of the Property if the
Selling Parties are in breach of warranties in clause11.6.

11.5 The Selling Parties and the Purchaser agree that any interest or penalties assessed by H.M.
Revenue & Customs on the Selling Parties as a result of the transfer of the Assets not falling
within Article 5 shall be borne equally between the Selling Parties on the one hand and the
Purchaser on the other. On production by the relevant Selling Party of evidence of the total amount
of any interest or penalties assessed, the Purchaser shall pay to the relevant Selling Party, in
addition to amounts payable under clause 11.4 above, an amount equal to one half of the amount
shown in such evidence.

Page 7

 

11.6 The relevant Selling Party represents and warrants to the Purchaser that:

	(a)	 	it is registered for the purposes of VAT; and
	 
	(b)	 	it has not made an election under paragraph 2 of Schedule 10 to the VATA to waive the
exemption from VAT in respect of the Property.

11.7 The Purchaser represents and warrants to the Selling Parties that:

	(a)	 	that it is a registered taxable person for the purposes of VAT; and
	 
	(b)	 	that with effect from Closing it intends to use the Assets to carry on the same kind of
business as that carried on by the relevant Selling Party in relation to the Assets.

11.8 The Selling Parties and the Purchaser shall, as soon as practicable after Closing, jointly
elect by notice pursuant to section 198 of the Capital Allowances Act 2001, and in accordance with
section 201 of the Capital Allowances Act 2001, with respect to any item of the Furniture, Fixtures
and Equipment which is a fixture (as defined in section 173(1) of the Capital Allowances Act 2001)
so as to fix the amount to be treated as expenditure by the Purchaser on the provision of such item
of the Furniture, Fixtures and Equipment in accordance with Part A of Schedule 9.

12. Warranties

12.1 Coloplast and CP UK jointly and severally warrant to the Purchaser in the terms of the
warranties set out in Schedule 3 (the Seller Warranties), and the Purchaser warrants to the Selling
Parties in the terms of the warranties set out in Schedule 4 (the Purchaser Warranties). Each of
the Seller Warranties set out in the separate paragraphs of Schedule 3 shall be separate and
independent and (except as expressly otherwise provided) shall not be limited by reference to any
other Seller Warranty or by anything in this Agreement or the Disclosure Documents. The Seller
Warranties are given subject to the limitations set out in Schedule 5 provided that such
limitations shall not apply in relation to the Seller Warranties set out in Part A of Schedule 3.

12.2 Notwithstanding any other provision of this Agreement, the provisions of Schedule 5 shall not
apply to any claim made against Coloplast or CP UK which arises (or to the extent that it is
increased) as a consequence of fraud or fraudulent misrepresentation by or on behalf of the Selling
Parties.

12.3 The Seller Warranties are deemed to be repeated on the Closing Date and any reference made to
the date of this Agreement (whether express or implied) in relation to any Warranty shall be
construed, in relation to any such repetition, as a reference to the Closing Date.

13. Remedies

13.1 Subject always to Schedule 5, Coloplast and CP UK undertake to the Purchaser (without
restricting the rights of the Purchaser or any remedy it may have

Page 8

 

on any basis available to it if any of the Seller Warranties is breached) to pay to the Purchaser
on demand the aggregate of:

	(a)	 	the full amount by which the value of any Asset (including any Asset warranted to exist which
does not exist) is or becomes less than it would have been if the Seller Warranties had not
been breached;
	 
	(b)	 	an amount equal to any other loss or liability suffered or incurred by the Purchaser directly
or indirectly as a result of any Seller Warranty being breached; and
	 
	(c)	 	all Losses and Expenses suffered or incurred by the Purchaser directly or indirectly as a
result of any Seller Warranty being breached.

13.2 For the avoidance of doubt, the rules of general law relating to claims for damages for breach
of warranty shall not apply to the extent that they might limit the calculation of any amount
payable under this clause 13, save where set out in Schedule 5.

13.3 Coloplast and CP UK further shall, jointly and severally, indemnify and hold the Purchaser
harmless from and against any and all Losses and Expenses which are suffered or incurred by the
Purchaser, in respect of or arising out of the Liabilities and/or the Excluded Assets.

13.4 The Purchaser shall be entitled to offset any amounts due to it under the terms of this clause
13 against the Deferred Payment under the Loan Note as and when such payments are to be made to the
Selling Parties under the terms of the Loan Note.

14. Sale of the Stock

The Purchaser shall ensure that its or its Affiliates sale of any Stock which is packaged under any
of the Selling Parties’ retained trade marks and trade dress, including the SIMPLA trade mark, is
sold in such a condition so as not to materially damage the reputation of the relevant Selling
Party’s trade mark or goodwill.

15. Termination

15.1 The Purchaser is entitled to treat this Agreement as terminated (in which case it will be
deemed to have been terminated on the terms of this clause), without prejudice to accrued rights
and obligations if:

	(a)	 	a Material Adverse Change occurs before Closing;
	 
	(b)	 	in the period between the date of this Agreement and the Closing Date the Selling Parties do,
suffer or permit to be done or agree to do in relation to the Business anything causing a
material breach of the provisions of Schedule 11 (Conduct Pre-Closing), except in accordance
with a prior waiver given by the Purchaser;

Page 9

 

	(c)	 	the Proposed Transaction is referred to the Competition Commission for further investigation
prior to Closing; or
	 
	(d)	 	prior to Closing there is a material breach of a material Seller Warranty which is not cured
by the Selling Parties prior to the Closing Date.

16. Payments

16.1 Any payment to be made pursuant to this Agreement by the Purchaser shall be made to
Coloplast’s Bank Account. Coloplast agrees to pay each of the Selling Parties that part of each
payment to which it is entitled in accordance with clause 3. Receipt of such sums in Coloplast’s
Bank Account shall be an effective discharge of the obligation of the Purchaser to pay such sums to
Coloplast or any of the Selling Parties, and the Purchaser shall not be concerned to see to the
application or be answerable for loss or misapplication of such amount.

16.2 Any payment to be made pursuant to this Agreement by Coloplast shall be made to the
Purchaser’s Bank Account. Receipt of such sums in the Purchaser’s Bank Account shall be an
effective discharge of the obligation of Coloplast to pay such sums to the Purchaser, and Coloplast
shall not be concerned to see to the application or be answerable for loss or misapplication of
such amount.

16.3 Payment under clause 16.1 and 16.2 shall be in immediately available funds by electronic
transfer on the due date for payment.

16.4 If any sum due for payment in accordance with this Agreement is not paid on the due date for
payment, the person in default shall pay Default Interest on that sum from but excluding the due
date to and including the date of actual payment calculated on a daily basis.

17. Assignment

Subject to the rights of the parties expressly set forth in the relevant Schedules to this
Agreement, unless the Selling Parties and the Purchaser specifically agree in writing, no person
shall assign or transfer this Agreement nor grant, declare, create or dispose of any right or
interest in it. Any purported assignment in contravention of this clause 17 shall be void.

18. Further assurance

18.1 The Selling Parties agree to perform (or procure the performance of) all further acts and
things, and execute and deliver (or procure the execution and delivery of) such further documents,
as may be required by law or as the Purchaser may reasonably require, whether on or after Closing,
to implement and/or give effect to this Agreement and the transaction contemplated by it and for
the purpose of vesting in the Purchaser the full benefit of the Assets to be transferred to the
Purchaser under this Agreement.

18.2 The Selling Parties shall procure, from Closing, that Mentor Corporation shall in the UK:

Page 10

 

	(a)	 	suspend use of the MENTOR CLEAR ADVANTAGE trade mark (UK registration number 1,494,286)
immediately on the Closing Date; and
	 
	(b)	 	at the discretion of Mentor Corporation, either withdraw the UK trade mark registration for
the MENTOR CLEAR ADVANTAGE mark or allow the registration to lapse.

19. Confidential information

19.1 Each party (other than MML) shall both during and after the arrangements contemplated by this
Agreement:

	(a)	 	keep confidential the terms of this Agreement and all information, whether in written or any
other form, which has been disclosed to it by or on behalf of the other parties in confidence
or which by its nature ought to be regarded as confidential (including any business
information in respect of the other parties which is not directly applicable or relevant to
the arrangements contemplated by this Agreement); and
	 
	(b)	 	procure that its officers, employees and representatives keep secret and treat as
confidential such information.

19.2 Clauses 19.1 and 19.4 do not apply to information:

	(a)	 	which shall after the date of this Agreement become published or otherwise generally
available to the public, except as a result of a breach of any provision of this agreement by
a party hereto;
	 
	(b)	 	to the extent made available to the recipient party by a third party who is entitled to
divulge the information and who is not under any obligation of confidentiality in respect of
such information to the other party or which has been disclosed under an express statement
that it is not confidential;
	 
	(c)	 	to the extent required to be disclosed by any applicable law or by any recognised stock
exchange or governmental or other regulatory or supervisory body or authority of competent
jurisdiction to whose rules the party making the disclosure is subject, whether or not having
the force of law, provided that the party disclosing the information shall notify the other
party of the information to be disclosed (and of the circumstances in which the disclosure is
alleged to be required) as early as reasonably possible before the disclosure must be made and
shall take all reasonable action to avoid and limit the disclosure;
	 
	(d)	 	which has been independently developed by the recipient party otherwise than in the course of
the exercise of that party’s rights under this Agreement or the implementation of this
agreement;
	 
	(e)	 	disclosed to any applicable Taxation Authority either to the extent required by a legal
obligation or to the extent reasonably required to assist the settlement

Page 11

 

	 	 	of the disclosing party’s tax affairs or those of any of its shareholders or any other
person under the same control as the disclosing party;

	(f)	 	which the recipient party can prove was already known to it before its receipt from the
disclosing party; or
	 
	(g)	 	which is disclosed with the written consent of the other parties.

19.3 Notwithstanding clause 19.1 above, the Selling Parties acknowledge and agree that, with the
prior written permission of CP UK and MML (which may not be unreasonably withheld) the Purchaser
may contact and notify wholesale, hospital and DAC customers of the Selling Parties in the United
Kingdom for the Products regarding the general scope of the transaction contemplated by this
Agreement at all times after the execution of this Agreement until its termination or the Closing
occurs.

19.4 MML shall both during and after the arrangements contemplated by this Agreement keep
confidential the terms of this Agreement. Coloplast, CP UK RMC and the Purchaser each expressly
acknowledge and agree that neither MML nor any of its employees, directors, representatives, agents
or affiliates received any confidential information of any parties hereto in connection with this
Agreement (other than the existence of this Agreement and the terms hereof).

20. Excluded Data

20.1 For the avoidance of doubt and without limitation, nothing in this Agreement shall be held to
transfer, license, assign or otherwise grant any rights over the Excluded Data to the Purchaser.

20.2 The Purchaser agrees with the Selling Parties that it shall not, and that it shall procure
that no other member or employee of the Purchaser Group shall, utilise the Excluded Data in
connection with any trade or business carried on by any member of the Purchaser Group, disclose or
distribute the data to any person or make any copy or record of the Excluded Data.

20.3 The Purchaser agrees that on demand by the Selling Parties it will return the Excluded Data to
the Selling Parties and then permanently destroy all remaining records of the Excluded Data and
expunge the Excluded Data from all computers or other devices containing the Excluded Data. The
destruction of the Excluded Data shall be certificated in writing by the Purchaser to the Selling
Parties.

21. Costs

21.1 Subject to clause 21.2 and except as otherwise provided in this Agreement (or any other
Transaction Document), the parties shall each be responsible for their own costs, charges and other
expenses incurred in connection with the Proposed Transaction.

21.2 The Purchaser or its Affiliates shall bear all stamp, notarisation fees or other documentary
or transaction duties, stamp duty reserve tax, stamp duty land tax and

Page 12

 

any other transfer taxes arising as a result of this Agreement or of any of the other Transaction
Documents.

22. Notices

22.1 Any notice in connection with this agreement shall be in writing in English and delivered by
hand, fax, registered post or courier using an internationally recognised courier company. A
notice shall be effective upon receipt and shall be deemed to have been received (i) at the time of
delivery, if delivered by hand, registered post or courier or (ii) at the time of transmission if
delivered by fax provided that in either case, where delivery occurs outside Working Hours, notice
shall be deemed to have been received at the start of Working Hours on the next following Business
Day.

22.2 The addresses and fax numbers of the parties for the purpose of clause 22.1 are:

Coloplast

Coloplast A/S

Holtedam 1

3050 Humlebaek

Denmark

Fax: +45 49 11 24 10

For the attention of: Peter Volkers (Legal Affairs Director)

Purchaser and RMC

Rochester Medical Corporation

One Rochester Medical Drive

Stewartville

MN 55976

USA

Fax: +1 507 533 9725

For the attention of: Antony J. Conway (President)

MML

Mentor Medical Limited

10 Commerce Way

Lancing

West Sussex

BN15 8TA

Fax: +44 1903 753981

Page 13

 

Prior to Closing, with a copy to

Mentor Corporation

201 Mentor Drive

Santa Barbara, California 94311 USA

Attention: General Counsel

Facsimile No.: (805) 879-6008

Phone: (805) 879-6000 (for confirmation purposes only)

CP UK

Coloplast Limited

Peterborough Business Park

Peterborough

Cambridgeshire

PE2 6FX

Fax +44 1733 390851

For the attention of: Graham Sethna

23. Entire agreement

This Agreement, including the schedules hereto, together with the other Transaction Documents, sets
out the entire agreement and understanding between the parties in respect of the sale and purchase
of the Assets. It is agreed that:

	(a)	 	no party has entered into this Agreement in reliance upon any representation, warranty or
undertaking of any other party which is not expressly set out or referred to in this
Agreement;
	 
	(b)	 	all terms and conditions which are implied under the Sale of Goods Act in a contract of sale
of goods to which that Act applies are expressly excluded from the sale and purchase under
this Agreement, save that this clause shall not exclude any liability under section 12 of the
Sale of Goods Act;
	 
	(c)	 	a party may claim in contract for breach of warranty under this Agreement but shall have no
claim or remedy under this Agreement in respect of misrepresentation (whether negligent or
otherwise, and whether made prior to, and/or in, this Agreement) or untrue statement made by
another party;

this clause shall not exclude any liability for, or remedy in respect of, fraudulent
misrepresentation.

24. Waivers, Rights and Remedies

Except as expressly provided in this Agreement, no failure or delay by any party in exercising any
right or remedy relating to this agreement or any of the Transaction Documents shall affect or
operate as a waiver or variation of that right or remedy or preclude its exercise at any subsequent
time. No single or partial exercise of any such

Page 14

 

right or remedy shall preclude any further exercise of it or the exercise of any other remedy.

25. Counterparts

This Agreement may be executed in any number of counterparts and by the parties to it on separate
counterparts, each of which is an original but all of which together constitute one and the same
instrument.

26. Variation

No variation of this Agreement (or of any of the documents referred to in this Agreement) shall be
valid unless it is in writing and signed by or on behalf of each of the parties to it. The
expression variation shall include any variation, amendment, supplement, deletion or replacement
however effected.

27. Severability

If any provision of this Agreement is held to be invalid or unenforceable, then such provision
shall (so far as it is invalid or unenforceable) be given no effect and shall be deemed not to be
included in this Agreement but without invalidating any of the remaining provisions of this
Agreement. The parties shall then use all reasonable endeavours to replace the invalid or
unenforceable provision by a valid and enforceable substitute provision the effect of which is as
close as possible to the intended effect of the invalid or unenforceable provision.

28. Third Party Enforcement Rights

A person who is not a party to this Agreement shall have no right under the Contracts (Rights of
Third Parties) Act 1999 to enforce any of its terms.

29. Governing Law and Arbitration

29.1 This Agreement and the relationship between the parties shall be governed by, and interpreted
in accordance with, English law.

	29.2	(a) 	All disputes arising in connection with this Agreement and all shall be finally settled
in London, England under the rules of conciliation and arbitration of the International
Chamber of Commerce (ICC) in the English language by three (3) arbitrators appointed in
accordance with said rules.

	 	(b)	 	All reasonable attorney’s fees and costs incurred by the prevailing party in
any arbitration pursuant to this Agreement, and the cost of such arbitration, shall be
paid by the other party to the arbitration within five (5) days after receipt of
written demand therefor from the prevailing party following the rendition of the
written decision of the arbitration tribunal, or as otherwise ordered by the
arbitration tribunal. On the application of such prevailing party before or after the
initial decision of the arbitration tribunal, and proof of its attorneys’ fees and

Page 15

 

	 	 	 	costs, the arbitration tribunal shall order the other party to the arbitration to
make the payments provided for in the preceding sentence.

	 	(c)	 	Any decision rendered by any arbitration tribunal pursuant to this clause
shall be final and binding on the parties thereto, and judgment thereon may be entered
by any court of competent jurisdiction. The parties specifically agree that any
arbitration tribunal shall be empowered to award and order equitable or injunctive
relief with respect to matters brought before it.
	 
	 	(d)	 	Arbitration shall be the exclusive method available for resolution of claims,
disputes and controversies described in this clause, and the parties stipulate that
the provisions hereof shall be a complete defense to any suit, action, or proceeding
in any court or before any administrative or arbitration tribunal with respect to any
such claim, controversy or dispute. The provisions of this clause shall survive the
termination or expiration of this Agreement.
	 
	 	(e)	 	Notwithstanding the terms of this clause or any contrary provisions in the
ICC rules, at any time before and after a demand for arbitration is presented, the
parties shall be free to apply to any court of competent jurisdiction for interim or
conservatory measures (including temporary conservatory injunctions). The parties
acknowledge and agree that any such action by a party shall not be deemed to be a
breach of such party’s obligation to arbitrate all disputes under this clause or
infringe upon the powers of any arbitral panel.

As witness this Agreement has been signed by or on behalf of the parties the day and year
first before written.

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SCHEDULE 1

DEFINITIONS AND INTERPRETATION

1. Definitions. In this agreement, the following words and expressions shall have the following
meanings:

Acquisition means the purchase by Coloplast of the worldwide urology business of Mentor at a
closing to be held contemporaneously with the Closing.

Adjustment Date has the meaning given to it in Part A of Schedule 2;

Affiliate means, with respect to any entity, any other entity controlled by, under common
control with, or which controls such entity through (a) the ownership, either directly or
indirectly, of more than 50% of the voting shares or equity interests of such entity, (b) the right
to elect the majority of the directors or members of any similar managing body of such entity
(except by reason of the occurrence of a contingency), or (c) the right to manage and control such
entity pursuant to contract.

Agreement has the meaning set forth in the first paragraph of this Agreement.

Assets has the meaning given to it in clause 2.1;

Base Volume has the meaning given to it in Schedule 2, Part A;

Business means the male external catheter business of the Selling Parties as carried on in the
United Kingdom immediately before exchange of this Agreement, but incorporating solely the Clear
Advantage, Freedom, Freedom+, Transfix and Uro-Flo brands;

Business Day means a day other than a Saturday or Sunday or public holiday in England and
Wales on which banks are open in London for general commercial business;

Business Records means all data bases relating to the regulatory history of the Business and
the customer history of the Business, except for patient records;

Claim means any claim under or for breach of this Agreement, except for any claim under Part A
of the Seller Warranties;

Closing means closing of the sale and purchase hereunder in accordance with clause 5;

Closing Date means the date on which the condition set out in clause 4 of this Agreement has
been fulfilled, or such other date as the Parties shall agree, and the Closing takes place;

Coloplast Adjustment Amount has the meaning given to it in Schedule 2, Part A;

Page 17

 

Coloplast’s Bank Account means Account number 5005810597 (US$), at Nordea in Copenhagen,
Torvegade 2, København (in the name of Coloplast A/S, Holtedam 1, 3050 Humlebaek, Denmark)

Competent Authority means (i) any person (whether autonomous or not) having legal and/or
regulatory authority; (ii) any court of law or tribunal in any jurisdiction; and/or (iii) any
Taxation Authority;

Connected Person means (i) a shareholder, officer, director or employee of the relevant Selling
Party, (ii) any member of the immediate family of any shareholder, officer, director or employee of
the Selling Parties or (iii) any entity in which any of the persons described in clause (i) or (ii)
owns any beneficial interest (other than less than one percent of the outstanding shares of capital
stock of any corporation whose stock is listed on a national securities exchange).

Consent means any authorisation, consent, approval, filing, waiver, exemption or other action by or
notice to any third party in relation to a Contract or any Competent Authority in respect of any
regulatory, Tax, license, Litigation or like matter.

Contracts means those contracts listed in Schedule 10

DAC Licence means the Dispensing Appliance Contractor Licence granted by East Sussex PCSS to
MML;

Default Interest means interest at LIBOR plus 4 per cent;

Deferred Payment has the meaning given to it in clause 2.5(a)(ii);

Disclosure Documents means the documents provided to the Purchaser prior to the execution of
this Agreement, as set out in Exhibit 1;

Disclosed means disclosed by the Disclosure Documents with sufficient particularity to enable
the Purchaser to assess the full impact on the Assets of the matter disclosed;

Documents means, in relation to the Property, the conveyances and other deeds and documents
short particulars of which are set out in Schedule 12;

Employee Benefit Plan means (a) any plan, fund or agreement which provides medical, vision or
dental care benefits, or benefits in the event of sickness, accident or disability, death benefits
or severance benefits; (b) any incentive compensation plan, deferred compensation plan,
share-option or share-based incentive or compensation plan, or share purchase plan; (c) any change
of control agreements, or (d) any retention arrangements;

Employee Liabilities means any employee related costs (including wages, salaries, PAYE, NIS
payments, and redundancy costs), claims, damages, penalties, compensation awards or expenses;

Encumbrance means any interest or equity (other than by virtue of this Agreement) of any
person (including any right to acquire, option or right of pre-emption or

Page 18

 

conversion) or any mortgage, charge, pledge, lien, assignment, hypothecation, security interest,
title retention or any other security agreement or arrangement, or any agreement or arrangement to
create any of the above, other than the Permitted Encumbrances;

Environment means any and all organisms (including man), ecosystems, property and the following
media: air (including the air within buildings and the air within other natural or man-made
structures, whether above or below ground); water (including water under or within land or in
drains or sewers and coastal and inland waters); and land (including land under water);

Environment Agreements means any and all leases or licences or other agreements (including
agreements of the nature referred to at paragraph 44 of Chapter IV of the draft statutory Guidance
to Part IIA of the Environment Protection Act 1990) which relate to the Business in any respect but
only to the extent that they relate, either wholly or in part, to the protection of the Environment
and/or the prevention of Harm and/or Remediation Action;

Environment Law means any and all laws, whether civil, criminal or administrative applicable to the
Property and/or the conduct of the Business and which have as a purpose or effect the protection of
the Environment and/or the prevention of Harm and/or the provision of remedies in respect of Harm,
including: European Community or European Union regulations, directives, decisions and
recommendations; statutes and subordinate legislation; regulations, orders and ordinances; Permits;
Environment Agreements; codes of practice, circulars, guidance notes and the like; common law,
local laws and bye-laws; and judgments, notices, orders, directions, instructions or awards of any
Competent Authority;

Environment Liability means liability (including liability in respect of Remediation Action) on the
owner for the time being of the Business under Environment Laws;

Estimated Stock Volume has the meaning given to it in Schedule 2, Part B;

Excluded Assets means the Excluded Data and any and all assets owned or used by the Selling
Parties in connection with the Business or otherwise other than the Assets;

Excluded Data means any and all information, in any form whatsoever, concerning or in relation
to the customers of MML’s home delivery service;

Final Stock Volume has the meaning given to it in Schedule 2, Part B;

Furniture, Fixtures and Equipment means those Assets described according to Part A of Schedule
9;

Harm means material harm or damage to, or other interference with, the Environment and includes any
detrimental effects on the health of living organisms or other interference with the ecosystems of
which they form part and, in the case of man, includes offence caused to any of his senses or harm
or damage to his property;

Page 19

 

Hazardous Matter means any and all matter (whether alone or in combination with other matter)
including electricity, heat, vibration, noise or other vibration which may cause Harm;

Initial Payment has the meaning given to it in clause 2.5(a)(i);

Intellectual Property Rights means patents, trade marks, service marks, logos, get-up, trade
names, internet domain names, rights in designs, copyright (including rights in computer software)
and moral rights, database rights, semi-conductor topography rights, utility models, rights in
know-how and other intellectual property rights, in each case whether registered or unregistered,
and all rights or forms of protection having equivalent or similar effect anywhere in the world and
registered includes registrations and applications for registration;

IT Systems means the information and communications technologies described according to Part B
of Schedule 9;

Lease means a lease of the ground floor and part of the first floor of the Property,
substantially in the form annexed to this Agreement at Part D of Schedule 12;

Liabilities means all liabilities (whether actual or contingent), expenses and obligations
arising directly in connection with the Business or any of the Assets prior to Closing; including
those which:-

	(a)	 	are directly in connection with any act, event, default or omission of any of the Selling
Parties or any Connected Person, their employees, agents or sub-contractors; and
	 
	(b)	 	includes all debts, liabilities, expenses or obligations which are not expressly assumed by
the Purchaser under this Agreement (and no reference in this Agreement to the Purchaser’s
acquisition of the Assets shall imply to acquisition or acceptance of any such thing);

LIBOR means the display rate per annum of the offered quotation for deposits in dollars for a
period of one month which appears on the appropriate page of the Reuters Screen (or such other page
as the parties may agree) at or about 11.00 a.m. London time on the date on which payment of the
sum under this Agreement was due but not paid;

Licences and Permits means the licences necessary for the Business, including the DAC Licence;

Licenced IP shall mean the Intellectual Property Rights licensed by Coloplast under the terms
of the Trade Mark Licence;

Litigation means any actual or prospective proceedings, whether judicial, administrative,
investigative, tribunal, arbitral, criminal or similar and whether or not subject or intended to be
subject to alternative dispute resolution techniques;

Loan Note has the meaning given to it in clause 2.5(a)(ii);

Page 20

 

Losses and Expenses means actions, proceedings, losses, damages, liabilities, claims, demands,
costs and expenses, including fines, penalties, clean-up costs, legal and other professional fees
and any amount paid by the party claiming Losses and Expenses to any person in good faith, having
reasonably determined such payment to be due to that person and in that amount (whether it is or
not);

Market Goodwill means the UK market goodwill in relation to the Products, together with the
non-home delivery customer lists;

Material Adverse Change means a change occurring after the date of this Agreement that is
materially adverse to the value of the Assets taken as a whole. The term Material Adverse Change
shall be deemed to exclude the impact of (i) changes in UK GAAP, (ii) changes to general economic
conditions or interest rates, (iii) national or international political or social conditions, (iv)
financial, banking or securities markets (including the disruption thereof and any decline in the
price of any security or any market index), (v) changes in law, rules, regulations, orders, or
other binding directives issued by any governmental body, or (vi) any event, occurrence, or
circumstance with respect to which the Purchaser has actual knowledge, as of the date hereof;

Pension Scheme means the Group Personal Pension Scheme insured with Norwich Union;

Permits means any and all licences, consents, permits, registrations, filings, exemptions,
approvals, authorisations or the like, made or issued pursuant to or under, or required by,
Environment Laws in relation to the Assets;

Permitted Encumbrances means security interests (i) arising by operation of law; (ii) under the
contracts with title retention provisions and equipment leases with third parties entered into in
the ordinary course of business; (iii) for taxation and other governmental charges which are not
due and payable or which may be paid without penalty after they become due and payable;

Post Closing Adjustment has the meaning given to it in Part A of Schedule 2;

Products means the Clear Advantage, Transfix, Freedom/Freedom+ and Uro-Flo male external
catheter products;

Property mean the means the property described in Part B of Schedule 12;

Proposed Transaction means the transaction contemplated by the Transaction Documents;

Purchase Price has the meaning given to it in clause 2.5;

Purchaser Adjustment Amount has the meaning given to it in Schedule 2, Part A;

Purchaser Group means the Purchaser and its Affiliates from time to time;

Page 21

 

Purchaser’s Bank Account means such bank account as the Purchaser may notify to the other
parties in writing from time to time;

Purchaser Warranties has the meaning given to it in clause 12.1;

Remediation Action means (i) preventing, limiting, removing, remedying, cleaning-up, abating
or containing the presence or effect of any Hazardous Matter in the Environment (including the
Environment at the Property) or (ii) carrying out investigative work and obtaining legal and other
professional advice as is reasonably required in relation to (i);

Sale of Goods Act means the Sale of Goods Act 1979;

Seller Warranties has the meaning given to it in clause 12.1;

Standard Conditions means, in relation to the Property, the Standard Commercial Property
Conditions (Second Edition);

Stock means the stock of the Products, as identified by the Selling Parties, to be purchased
from the Selling Parties by the Purchaser in accordance with Schedule 2, Part B and Part C;

Stock Adjustment has the meaning given to it in Schedule 2, Part B;

Stock Payment has the meaning given to it in Schedule 2, Part B;

Stock Volume has the meaning given to it in Schedule 2, Part B;

Surviving Provisions means clauses 3 (Purchase Price Allocation) 10 (Liabilities and Selling
Parties’ Post-Completion Obligations) 11 (Tax), 13 (Remedies) 17 (Assignment), 19 (Confidential
Information) 21 (Costs), 22 (Notices), 23 (Entire Agreement), 24 (Waiver, Rights and Remedies), 26
(Variations), 27 (Severability), 28 (Third Party Enforcement Rights), 29 (Governing Law and
Arbitration) and Schedule 1 (Definitions and Interpretation);

Taxation or Tax or Taxes means:

	(a)	 	all forms of taxation and statutory, governmental, state, federal, provincial, local
government or municipal charges, duties, imposts, contributions, levies, withholdings or
liabilities wherever chargeable and whether of the UK or any other jurisdiction; and
	 
	(b)	 	any penalty, fine, surcharge, interest, charges or costs payable in connection with any
taxation within (a) above;

Taxation Authority means HM Revenue & Customs, the Department for Work and Pensions and any
other governmental or other authority whatsoever competent to impose any Taxation, whether in the
United Kingdom or elsewhere;

Third Party Consent means all consents, approvals, authorisations or waivers required from
third parties:-

Page 22

 

	(a)	 	for the assignment or novation of any Contract in favour of the Purchaser; or
	 
	(b)	 	to prevent such third party, in respect of any such Contract, from exercising any right of
termination, acceleration or other right which if exercised would adversely affect the value
of the Contract to the Purchaser;

Total Sales has the meaning given to it in Schedule 2, Part A;

Trade Mark Assignment means the agreement in the form set out at Part A of Schedule 7;

Trade Mark Licence means the agreement in the form set out at Part B of Schedule 7;

Transaction Documents means this agreement, the Trade Mark Assignment, the Trade Mark Licence
and the Lease;

Transfer means the transfer of the Property in the agreed form set out at Part C of Schedule
12;

Transferred Employees means the employees of the Selling Parties whose names are listed in
Schedule 8;

Transferred IP means the Intellectual Property Rights transferred by MML under the terms of
the Trade Mark Assignment;

Transfer Regulations means the Transfer of Undertakings (Protection of Employment) Regulations
2006;

TULCRA means the Trade Union and Labour Relations (Consolidation) Act 1992;

UK GAAP means generally accepted accounting principles applied in the UK, incorporating
Statements of Standard Accounting Practice, Financial Reporting Standards and Urgent Issues Task
Force Abstracts issued by the Accounting Standards Board Limited;

VATA means that Value Added Tax Act 1994;

VAT Invoice means an invoice that complies with the requirements of the Sixth Council
Directive of 17 May 1977 on the harmonisation of the laws of the Member States relating to turnover
taxes — common system of value added tax: uniform basis of assessment (77/388/EEC) as subsequently
amended and with the requirements of national VAT law in the country in which the invoice is
issued; and

Working Hours means 9.30 am to 5.30 pm in the relevant location on a Business Day.

	2.	 	Interpretation. In this Agreement, unless the context otherwise requires:

	(a)	 	references to a person include any individual, firm, body corporate (wherever incorporated),
government, state or agency of a state or any joint venture,

Page 23

 

	 	 	association, partnership, works council or employee representative body (whether or not
having separate legal personality);

	(b)	 	headings do not affect the interpretation of this Agreement; the singular shall include the
plural and vice versa; and references to one gender include all genders;
	 
	(c)	 	references to any English legal term or concept shall, in respect of any jurisdiction other
than England, be construed as references to the term or concept which most nearly corresponds
to it in that jurisdiction;
	 
	(d)	 	references to dollars or $ are references to the lawful currency from time to time of the
United States of America;
	 
	(e)	 	for the purposes of applying a reference to a monetary sum expressed in sterling, an amount
in a different currency shall be deemed to be an amount in sterling translated at the Exchange
Rate at the relevant date (which in relation to a Claim, shall be the date of the receipt of
notice of that Claim under Schedule 5); and
	 
	(f)	 	any statement in this Agreement qualified by the expression so far as the Selling Parties are
aware or to the best of the Selling Parties’ knowledge or any similar expression shall be
deemed to be made only on the basis of the actual knowledge, information and belief of the
Selling Parties after they have made all reasonable enquiries.
	 
	(g)	 	any phrase introduced by the terms including, include, in particular or any similar
expression shall be construed as illustrative and shall not limit the sense of the words
preceding those terms.

3. Enactments. Except as otherwise expressly provided in this Agreement, any express reference to
an enactment (which includes any legislation in any jurisdiction) includes references to: (i) that
enactment as amended, consolidated or re-enacted by or under any other enactment before or after
the date of this Agreement; (ii) any enactment which that enactment re-enacts (with or without
modification); and (iii) any subordinate legislation (including regulations) made (before or after
the date of this Agreement) under that enactment, as amended, consolidated or re-enacted as
described in (i) or (ii) above, except to the extent that any of the matters referred to in (i) to
(iii) occurs after the date of this Agreement and increases or alters the liability of the Seller
or the Purchaser under this Agreement.

4. Schedules and Exhibits. The Schedules and Exhibits comprise schedules and exhibits to this
Agreement and form part of this Agreement.

5. Inconsistencies. Where there is any inconsistency between the definitions set out in this
Schedule and the definitions set out in any clause or any other Schedule, then, for the purposes of
construing such clause or Schedule, the definitions set out in such clause or Schedule shall
prevail.

Page 24

 

SCHEDULE 2

PURCHASE PRICE

Part A

Post Closing Adjustment

1. The Purchase Price shall be adjusted depending upon the Purchaser’s (and its Affiliates’) sales
of male external catheters in the UK (excluding the Purchaser’s or its Affiliates’ private label
sales) post Closing (the Post Closing Adjustment). Any Post Closing Adjustment shall be calculated
following the fifth anniversary of the Closing Date (the Adjustment Date).

2. Any payment required to be made pursuant to this Part A shall be paid by Coloplast or the
Purchaser (as the case may be) within 30 Business Days of the Adjustment Date. Any such payment
shall be made in accordance with the provisions of clause 16.1 or 16.2 of this Agreement, as the
case may be.

3. The Post Closing Adjustment shall be calculated on the following basis:

Base Volume is a total volume of 17,550,000 units;

Coloplast Adjustment Amount means: (Base Volume — Total Sales) x $0.67 per unit;

Purchaser Adjustment Amount means: (Total Sales — Base Volume) x $0.67 per unit;

Total Sales is the total volume of male external catheters sold by the Purchaser and the
Purchaser’s Affiliates within the UK for the period from Closing until the fifth (5th)
anniversary of the Closing Date;

	(a)	 	If Total Sales > Base Volume then the Purchaser shall pay a Post Closing Adjustment equal
to the Purchaser Adjustment Amount to Coloplast.
	 
	(b)	 	If Total Sales < Base Volume then Coloplast shall pay a Post Closing Adjustment equal to
the Coloplast Adjustment Amount to the Purchaser.

4. The Purchaser shall provide Coloplast with total annual sales figures for male external
catheters sold by the Purchaser and the Purchaser’s Affiliates within 15 Business Days of each
anniversary of the Closing Date until 2010.

5. The Total Sales shall be calculated by the Purchaser in accordance with this paragraph within 20
Business Days of the Adjustment Date.

	(a)	 	A written statement of the amount of the Total Sales, together with details of its
calculation, shall be delivered to Coloplast upon completion of the calculation pursuant to
this paragraph, in the form of a certificate prepared by the Purchaser. If Coloplast accepts
the amount of Total Sales, it shall notify the Purchaser in writing of such acceptance. If
Coloplast disputes the certified Total Sales, it shall notify the Purchaser in writing of the
amount, nature and

Page 25

 

	 	 	basis of such dispute within 10 Business Days of delivery of the certificate to Coloplast.

	(b)	 	If Coloplast provides written notice of a dispute in accordance with paragraph 5(a) above,
the Purchaser and Coloplast agree to negotiate in good faith to resolve such dispute. If they
are unable to resolve the dispute within 21 days after delivery of the certificate to
Coloplast, the dispute shall immediately be submitted by either the Purchaser or Coloplast to
an independent UK accounting firm (the Expert) who shall either be agreed upon by the
Purchaser and Coloplast or, if they cannot agree within 5 days of the end of the 21 day
period, on the request of either the Purchaser or Coloplast, such Expert shall be appointed by
the President of the Institute of Chartered Accountants in England and Wales. The Expert
shall determine and deliver written notice of the determination of the amount of the Total
Sales to Coloplast and Purchaser within 30 days from the date of his appointment and, in doing
so, shall act as an expert and not as an arbitrator.
	 
	(c)	 	Coloplast and the Purchaser shall procure that the Expert has full access to the books and
records of the Purchaser as the Expert shall deem reasonably necessary for each to be able to
review in detail the calculation of the Total Sales (together with all supporting information
relied on in making the calculation).
	 
	(d)	 	The determination of the Total Sales by the Expert shall (except in the case of manifest
error) be final and binding on the parties. All determinations by the Expert shall be in
writing, and shall be delivered to Coloplast and the Purchaser. The fees and expenses of the
Expert shall be borne as the Expert shall determine.
	 
	(e)	 	The Total Sales shall be deemed to have been determined:

	 	(i)	 	if the Purchaser agrees the calculation with Coloplast, on the
day that they confirm such agreement in writing;
	 
	 	(ii)	 	if Coloplast and the Purchaser disagree as to any matters, but
resolve in writing their difference or dispute prior to (or at any time during)
the period of the appointment of the Expert, on the day that they so agree in
writing; or
	 
	 	(iii)	 	on the date that the Expert notifies Coloplast and Purchaser of
his determination.

	(f)	 	The parties agree that the Expert shall be entitled to determine, based upon the
circumstances of any dispute, that interest shall not be payable.

Part B

Stock Payment

1. The Purchaser shall purchase the Stock for $478,000 (the Stock Payment), based on the assumption
that the Stock volumes set out in Part C of this Schedule are

Page 26

 

correct (the Estimated Stock Volume). This amount shall be paid by the Purchaser to the Selling
Parties as follows:

	(a)	 	$239,000, to be paid to the Selling Parties within 3 calendar months of the Closing Date; and
	 
	(b)	 	$239,000, to be paid to the Selling Parties within 6 calendar months of the Closing Date (the
Final Stock Instalment).

2. Within 30 days of Closing, the Purchaser will perform a stock audit, and notify Coloplast of the
precise volume of the Stock (the Stock Volume).

3. If the Stock Volume is greater than the Estimated Stock Volume then the Final Stock Instalment
will be increased by the price for each unit of Stock set out in Part C of this Schedule per
additional unit of Stock over the Estimated Stock Volume. If the Stock Volume is less than the
Estimated Stock Volume then the Final Stock Instalment will be reduced by the price for each unit
of Stock set out in Part C of this Schedule per unit of Stock under the Estimated Stock Volume,
provided that in each case the amount of the Stock Volume is not disputed in accordance with
paragraph 4 below.

4. The Stock Volume shall be calculated by the Purchaser in accordance with this paragraph.

	(a)	 	A written statement of Stock Volume, together with details of its calculation, shall be
delivered to Coloplast upon completion of the audit pursuant to paragraph 2 above, in the form
of a certificate prepared by the Purchaser. If Coloplast accepts the amount of the Stock
Volume, it shall notify the Purchaser in writing of such acceptance. If Coloplast disputes
the certified Stock Volume, it shall notify the Purchaser in writing of the amount, nature and
basis of such dispute within 30 days after delivery of the certificate to Coloplast.
	 
	(b)	 	If Coloplast provides written notice of a dispute in accordance with paragraph 4(a) above,
the Purchaser and Coloplast agree to negotiate in good faith to resolve such dispute. If they
are unable to resolve the dispute within 21 days after delivery of the certificate to
Coloplast, the dispute shall immediately be submitted by either the Purchaser or Coloplast to
an independent UK accounting firm (the Expert) who shall either be agreed upon by the
Purchaser and Coloplast or, if they cannot agree within 5 days of the end of the 21 day
period, on the request of either the Purchaser or Coloplast, such Expert shall be appointed by
the President of the Institute of Chartered Accountants in England and Wales. The Expert
shall determine and deliver written notice of the determination of the amount of the Stock
Volume to Coloplast and Purchaser within 30 days from the date of his appointment and, in
doing so, shall act as an expert and not as an arbitrator.
	 
	(c)	 	Coloplast and the Purchaser shall each have and they shall procure that the Expert has full
access to the books and records of the Purchaser as they shall each deem reasonably necessary
for each to be able to review in detail the

Page 27

 

	 	 	calculation of the Stock Volume (together with all supporting information relied on in
making the calculation).

	(d)	 	The determination of the Stock Volume by the Expert shall (except in the case of manifest
error) be final and binding on the parties. All determinations by the Expert shall be in
writing, and shall be delivered to Coloplast and the Purchaser. The fees and expenses of the
Expert shall be borne as the Expert shall determine.
	 
	(e)	 	The Stock Volume shall be deemed to have been determined:

	 	(i)	 	if the Purchaser agrees the calculation with Coloplast, on the
day that they confirm such agreement in writing;
	 
	 	(ii)	 	if Coloplast and the Purchaser disagree as to any matters, but
resolve in writing their difference or dispute prior to (or at any time during)
the period of the appointment of the Expert, on the day that they so agree in
writing; or
	 
	 	(iii)	 	on the date that the Expert notifies Coloplast and Purchaser of
his determination.

	(f)	 	The parties agree that the Expert shall be entitled to determine, based upon the
circumstances of any dispute, that interest shall not be payable.

Part C

Estimated Stock Volume

Freedom/Freedom = 480,000 packaged units (priced at $0.53 per unit)

Clear Advantage = 912,000 units (priced at $0.20 per unit)

Transfix = 207,000 units (priced at $0.20 per unit)

Page 28

 

SCHEDULE 3

SELLER WARRANTIES

Part A: General

1. The Selling Parties are validly incorporated, in existence and duly registered under the laws of
their respective jurisdictions and have full power to conduct their respective businesses as
conducted at the date of this Agreement.

2. The Selling Parties have obtained all corporate authorisations required to empower them to enter
into and fully perform their respective obligations under this Agreement and every other document
and thing it is required under this Agreement to execute or do. This Agreement and all such
documents constitute (or will when executed constitute) valid binding and enforceable obligations
on the Selling Parties in accordance with their respective terms.

3. Entry into and performance by the Seller Parties of this Agreement and/or any other Transaction
Document to which they are a party will not breach any provision of their memorandum and articles
of association, articles or certificate of incorporation, by-laws or equivalent constitutional
documents.

Part B: The Assets

	4.	 	Ownership
	 
	(a)	 	The relevant Selling Parties are the sole legal and beneficial owners of the Assets all free
from hire or hire purchase agreement or leasing or factoring agreements or agreements for
payment or deferred terms. All the Assets are in the relevant Selling Party’s sole possession
and control and are in the United Kingdom. There is no Encumbrance on, over or affecting any
of the Assets or the Business or any part of it, and no claim has been made by any person to
be entitled to the benefit of any such Encumbrance.
	 
	5.	 	Condition
	 
	(a)	 	The Furniture, Fixtures and Equipment are in good repair and condition and free of any
material defects (except those resulting from normal wear and operation).
	 
	(b)	 	The Stock is in good condition, is not obsolete or unusable and is capable of being sold in
the ordinary course of the Business in accordance with its current price list without rebate
or allowance to a purchaser.
	 
	(c)	 	The IT Systems are in good working order, function in accordance with all applicable
specifications, and have been and are being properly and regularly maintained and replaced.

Page 29

 

Part C: The Contracts

	6.	 	Terms & Material Obligations
	 
	(a)	 	Each Contract is a valid and binding agreement of MML and is in full force and effect and
enforceable according to its terms.
	 
	(b)	 	MML has performed all material obligations required to be performed by it under the Contracts
and is not in breach or default in any material respect thereunder.
	 
	7.	 	Accuracy

True and complete copies of each Contract have been made available to the Purchaser.

Part H: Environment

	8.	 	Compliance with Environment Law
	 
	(a)	 	No state of affairs exists with respect to the Property that would constitute a violation in
any material respect of any Environmental Law.
	 
	(b)	 	To the best of the Selling Parties’ knowledge, no written notice or other communication has
been received which alleges that the Property has not been used at all times in compliance
with Environmental Law or alleges any actual or potential Environmental Liability.
	 
	(c)	 	To the best of the Selling Parties’ knowledge, no Remediation Action is or may be required
under any Environmental Law in relation to the Property.
	 
	9.	 	Permits
	 
	(a)	 	All Permits have been obtained and are in full force and effect and their terms and
conditions have been materially complied with.
	 
	(b)	 	No circumstance exists which is likely to result in modification, suspension, or revocation
of any Permit or is likely to result in any such Permit not being extended, renewed, granted
or (where necessary) transferred.
	 
	10.	 	Hazardous Matter

No Hazardous Matter has been generated, used, kept, treated, transported, spilled, deposited,
disposed of, discharged, emitted or otherwise dealt with or managed at, on, under or from the
Property by any of the Selling Parties.

	11.	 	Environmental Liability

To the best of the Selling Parties’ knowledge there are no events, states of affairs, conditions,
circumstances, activities, practices, incidents, or actions (including the generation, use,
treatment, storage, transport, deposit, disposal, discharge or management of Hazardous Matter)
which have occurred or are occurring or have been

Page 30

 

or are in existence at, in, under or about the Property which may give rise to Environmental
Liability.

12. No storage tanks

To the best of the Selling Parties’ knowledge, no storage tanks of any kind, including related
pipework, are or have been located at any time whatsoever on or under the Property.

13. Notice of claims

Within the two years prior to the date of this Agreement, none of the Selling Parties has had
knowledge of or received any notice claim or other communication alleging any actual or potential
Environmental Liability.

14. Assessments, audits etc

The Selling Parties have Disclosed copies of all material environmental or health and safety
assessments, audits, reports or investigations relating to the Property.

Part I: Insurance

15. Premiums and termination

	(a)	 	All premiums due and payable under all insurance policies relating to the Assets have been
paid, and the relevant Selling Party is otherwise in material compliance with the terms of
such policies.

	(b)	 	No Selling Party is aware of any circumstances which would lead to the termination of, or a
material increase in premium with respect to, any of the insurance policies relating to the
Assets.

Part J: Litigation

16. Litigation

Except as claimant in the collection of debts (not exceeding $50,000 in the aggregate) arising in
the ordinary course of trading, neither the Selling Parties nor any person for whose acts or
defaults it may be vicariously liable is now engaged in any Litigation, and no Litigation is
pending, threatened or expected, in relation to any of the Assets, whether by or against the
relevant Selling Party and so far as the Selling Parties are aware there is no matter or fact in
existence in relation to any of the Assets which would give rise to any Litigation.

17. The Selling Parties are not subject to any order or judgement or injunction given by any court,
tribunal or governmental agency relating to any of the Assets which is still in force and have not
given any undertaking to any court or tribunal or to any third party arising out of any Litigation
relating to any of the Assets.

Page 31

 

Part K: Products

18. Product regulatory requirements

At no time has the relevant Selling Party had knowledge of or received any notice, claim,
governmental enforcement action or other communication from any person alleging any defect in any
Products manufactured, marketed or supplied by it or any contravention of any applicable law or
standard in relation to any such goods.

Part L: Transferred Employees

19. Schedule 9 sets out a list of all Transferred Employees.

20. The Selling Parties do not recognise any trade union or other body representing the Transferred
Employees or any of them for collective bargaining or negotiating purposes.

21. The Selling Parties are not aware of any current dispute with any of the Transferred Employees
whether brought under the employer’s disciplinary or grievance procedure or otherwise, nor of any
matters that might give rise to such a dispute. No litigation is threatened, pending or ongoing
against the Selling Parties by on or on behalf of any of the Transferred Employees.

22. None of the Transferred Employees is currently on sick leave or maternity leave or any other
leave of absence apart from scheduled annual holiday.

23. None of the Transferred Employees is eligible for an enhanced redundancy payment under any
contractual or non-contractual policy operated by the Selling Parties.

24. None of the Transferred Employees is entitled to a period of notice of termination of
employment in excess of 12 weeks.

25. There are no outstanding appeals against dismissal in respect of any employees who are not
Transferred Employees.

Part M: Pension Schemes and Benefit Plans

26. Other than the state pension scheme, the Pension Scheme is the only arrangement under which the
MML provides or is liable to provide relevant benefits (as defined in section 612(1) of the Income
and Corporation Taxes Act 1988) in respect of any Transferred Employee.

27. The Disclosed Documents contain details of the Employee Benefit Plans maintained by, or
contributed to by the Selling Parties for the benefit of the Transferred Employees. A copy or
summary of each Employee Benefit Plan has been made available to the Purchaser.

Page 32

 

Part N: Intellectual Property

28. Ownership and rights

1.1 Schedule 7 contains a full and accurate list of all Transferred IP. Schedule 8 contains a full
and accurate list of all Licensed IP (for the purposes of this Part N, the Transferred IP and
Licensed IP being together the IP). The IP is valid, subsisting and enforceable and nothing has
been done or omitted to be done which may cause it to not be valid, subsisting and enforceable.

1.2 The relevant Selling Party is the sole legal and beneficial owner of all of the IP and the IP
has been validly granted to the relevant Selling Party free from any licence, encumbrance,
restriction on use or disclosure obligation.

29. Enforcement

1.1 There have been no written claims within the last four years asserting the invalidity, misuse
or unenforceability of the IP.

1.2 All IP has been properly maintained and all renewal fees have been paid on time.

1.3 The Selling Parties have taken reasonable steps to protect the know-how owned, used or
exploited by the relevant Selling Party for the purposes of the Business.

1.4 There is no currently pending, or to the Selling Parties’ knowledge threatened, adverse
judgment, decisions or claims in which any of the Selling Parties is a named party with respect to
any opposition, cancellation, injunction, or other claim or restriction concerning the IP.

1.5 Nothing has been done to diminish or otherwise materially adversely affect the reputation of
the unregistered IP.

30. Infringement

	(a)	 	So far as the Selling Parties are aware, the Business has not infringed and does not infringe
any Intellectual Property Rights of a third party.
	 
	(b)	 	So far as the Selling Parties are aware, they have not received written notice within the
last four years of any material claim that the conduct of the Business infringes,
misappropriates or otherwise violates the Intellectual Property Rights of a third party.

Part Q: Real Estate

31. The information in respect of the Property set out in Part B of Schedule 12 is true, accurate
and complete and not misleading in any material respect.

32. Possession and occupation. MML is in possession of the whole of the Property on an exclusive
basis, which is not vacant, and as far as the Selling Parties are aware no other person is in or
actually or conditionally entitled to possession, occupation, use or control of it.

Page 33

 

33. Title. So far as the Selling Parties are aware the Property is not the subject of a subsisting
contract for sale and no right to acquire or occupy the Property is in the process of being
granted. MML is the sole beneficial owner of, and otherwise absolutely entitled to the Property
and the proceeds of sale of it.

34. The Selling Parties or any Affiliate have disclosed true and complete copies of all the title
deeds and documents to the Property in their possession and control.

35. As far as the Selling Parties are aware, the Property (and the proceeds of sale from it) is
free from any mortgage debenture charge.

36. Notwithstanding that the Purchaser is minded to grant a lease of part of the Property to the
Selling Parties immediately thereafter the Property will be transferred with vacant possession on
the Closing Date.

Page 34

 

SCHEDULE 4

PURCHASER WARRANTIES

1. The Purchaser is validly incorporated, in existence and duly registered under the laws of its
jurisdiction and has full power to conduct its business as conducted at the date of this Agreement.

2. The Purchaser has obtained all corporate authorisations required to empower it to enter into and
fully perform its obligations under this Agreement and every other document and thing it is
required under this Agreement to execute or do. This Agreement and all such documents constitute
(or will when executed constitute) valid binding and enforceable obligations on the Purchaser in
accordance with their respective terms.

3. Entry into and performance by the Purchaser of this Agreement and/or any other Transaction
Document to which it is a party will not breach any provision of its memorandum and articles of
association, articles or certificate of incorporation, by-laws or equivalent constitutional
documents.

4. The Purchaser has available cash or available loan facilities which will at Closing provide in
immediately available funds the necessary cash resources to pay the Initial Payment and meet its
other obligations under this Agreement and, in the case of loan facilities, they involve no
material pre-conditions and the Purchaser will be able to satisfy all conditions of drawdown to
such loan facilities at or prior to Closing.

Page 35

 

SCHEDULE 5

LIMITATIONS ON LIABILITY

Time Limits. The liability of the Coloplast and CP UK in respect of any Claim under the Seller
Warranties shall cease 18 months after the Closing Date.

1. Thresholds for Claims. The Selling Parties shall not be liable for any single Claim:

	(a)	 	unless the amount of the liability pursuant to that single Claim exceeds $75,000; and

	(b)	 	unless the aggregate amount of the liability of the Selling Parties for all Claims exceeds
$250,000 (in which case the Purchaser shall be entitled to claim the whole amount of such
Claims and not merely the excess).

2. Maximum limit for all Claims. The aggregate amount of the liability of the Selling Parties for
all Claims shall not exceed the Purchase Price.

3. Matters disclosed. The Selling Parties shall not be liable for any Claim for breach of the
Seller Warranties if and to the extent that the fact, matter, event or circumstance giving rise to
such Claim is Disclosed by this Agreement or any other Transaction Document.

4. Contingent liabilities. If any Claim is based upon a liability which is contingent only,
Coloplast and CP UK shall not be liable to make any payment unless and until such contingent
liability gives rise to an obligation to make a payment (but the Purchaser has the right under
paragraph 1 of this Schedule 5 to give notice of that Claim before such time).

5. No liability for Claims arising from acts or omissions of Purchaser. Coloplast and CP UK shall
not be liable for any Claim to the extent that it would not have arisen but for, or has been
increased or not reduced as a result of, any voluntary act, omission or transaction carried out:

	(a)	 	after Closing by the Purchaser or its Affiliates (or its respective directors, employees or
agents or successors in title) otherwise than in the ordinary course of trading (unless such
act was required to comply with English law or UK GAAP); or

	(b)	 	before Closing by any of the Selling Parties’ at the specific written direction or request of
the Purchaser or any member of the Purchaser Group.

6. No double recovery. The Purchaser shall not be entitled to recover damages or obtain payment,
reimbursement, restitution or indemnity more than once in respect of any one liability, loss, cost,
shortfall, damage, deficiency, breach or other set of circumstances which gives rise to more than
one Claim.

Page 36

 

7. Purchaser’s duty to mitigate. The Purchaser shall procure that all reasonable steps are taken to
avoid or mitigate any loss or damage which it may suffer in consequence of any breach by the
Selling Parties of the terms of this Agreement or any fact, matter, event or circumstance likely to
give rise to a Claim.

8. Notwithstanding anything to the contrary herein, in no event shall MML have any liability under
this Agreement prior to Closing, except in respect of a breach by MML of its obligations under
Schedule 11.

9. In no event shall Mentor Corporation have any liability under this Agreement.

Page 37

 

SCHEDULE 6

FORM OF PROMISSORY NOTE

THIS UNSECURED LOAN NOTE DEED is made on _______ _______ 2006

Between:

	(1)	 	COLOPLAST A/S, whose registered office is at Holtedam 1, 3050 Humlebaek, Denmark (Coloplast);
and

	(2)	 	ROCHESTER MEDICAL LIMITED, whose registered office is at 21 Wilson Street, London EC2M 2TD
(the Purchaser).

Whereas:

(A) The Selling Parties and the Purchaser have entered into a sale and purchase agreement for the
sale and purchase of certain assets (the Asset Sale Agreement).

(B) On closing of the Asset Sale Agreement, the Purchaser has agreed to enter into this unsecured
loan note deed (the Loan Note).

(C) Capitalised terms used in this Loan Note shall bear the meanings given to them in the Asset
Sale Agreement save where the context requires otherwise.

It is agreed:

1. This Loan Note represents an unsecured obligation of the Purchaser in favour of Coloplast.

2. On issue, the Loan Note is for an outstanding principal amount of $5,340,000 and will reduce by
an amount equal to US$1,068,000 (each an Instalment) on each anniversary of Closing (each a Payment
Date). The Final Payment Date falls on the date falling on the 5th anniversary of the
Closing Date.

3. If any instalment is not payable by the Purchaser on the relevant Payment Date, Coloplast shall
have the right to set off the Instalment against any amounts owing by Coloplast to the Purchaser
under the agreement entered into on or about the date of the Asset Sale Agreement between Coloplast
and RCM concerning the worldwide supply of silicone male external catheters.

4. The Purchaser shall be entitled to offset any amounts payable to the Purchaser by Coloplast or
CP UK pursuant to clause 13 of the Asset Sale Agreement against any instalment when due and payable
on a Payment Date.

5. This Loan Note shall bear no interest on principal. Interest shall accrue on any unpaid
Instalment at the Default Rate, until such time as the Instalment (together with

Page 38

 

accrued interest) is paid by the Purchaser, or the Instalment (together with accrued interest) is
set off by the Seller in accordance with clause 3 above.

6. All payments made under this Loan Note shall be made to Coloplast’s Bank Account.

7. This Loan Note is non-transferable and the benefit of it may not be assigned.

8. This Loan Note is governed by English law.

	9.	(a) 	All disputes arising in connection with this Agreement and all shall be finally settled
in London, England under the rules of conciliation and arbitration of the International
Chamber of Commerce (ICC) in the English language by three (3) arbitrators appointed in
accordance with said rules.

	 	(b)	 	All reasonable attorney’s fees and costs incurred by the prevailing party in
any arbitration pursuant to this Agreement, and the cost of such arbitration, shall
be paid by the other party to the arbitration within five (5) days after receipt of
written demand therefor from the prevailing party following the rendition of the
written decision of the arbitration tribunal, or as otherwise ordered by the
arbitration tribunal. On the application of such prevailing party before or after the
initial decision of the arbitration tribunal, and proof of its attorneys’ fees and
costs, the arbitration tribunal shall order the other party to the arbitration to make
the payments provided for in the preceding sentence.
	 
	 	(c)	 	Any decision rendered by any arbitration tribunal pursuant to this clause
shall be final and binding on the parties thereto, and judgment thereon may be entered
by any court of competent jurisdiction. The parties specifically agree that any
arbitration tribunal shall be empowered to award and order equitable or injunctive
relief with respect to matters brought before it.
	 
	 	(d)	 	Arbitration shall be the exclusive method available for resolution of claims,
disputes and controversies described in this clause, and the parties stipulate that
the provisions hereof shall be a complete defense to any suit, action, or proceeding
in any court or before any administrative or arbitration tribunal with respect to any
such claim, controversy or dispute. The provisions of this clause shall survive the
termination or expiration of this Agreement.
	 
	 	(e)	 	Notwithstanding the terms of this clause or any contrary provisions in the
ICC rules, at any time before and after a demand for arbitration is presented, the
parties shall be free to apply to any court of competent jurisdiction for interim or
conservatory measures (including temporary conservatory injunctions). The parties
acknowledge and agree that any such action by a party shall not be deemed to be a
breach of such

Page 39

 

	 	 	 	party’s obligation to arbitrate all disputes under this clause or infringe upon
the powers of any arbitral panel.

	 	 	 	 	 	 	 	 	 	 	 
	EXECUTED and DELIVERED as a

	 	 	)	 	 	Name:	 	 	 	 
	DEED by

	 	 	)	 	 	 	 	 

	 	 
	COLOPLAST A/S acting by two directors/

	 	 	)	 	 	 	 	 	 	 
	a director and the secretary

	 	 	)	 	 	Signature	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Signature:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	EXECUTED and DELIVERED as a

	 	 	)	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	DEED by

	 	 	)	 	 	 	 	 	 	 
	ROCHESTER MEDICAL LIMITED

	 	 	)	 	 	 	 	 	 	 
	acting by two directors/

	 	 	)	 	 	Signature	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	a director and the secretary

	 	 	)	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Name:	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	Signature	 	 	 	 
	 

	 	 	 	 	 	 	 	 

	 	 

Page 40

 

SCHEDULE 7

PART A — FORM OF TRADE MARK ASSIGNMENT

AN ASSIGNMENT OF TRADE MARKS made on                      2006

Between

(1) MENTOR MEDICAL LIMITED whose registered office is at 10 Commerce Way, Lancing, West Sussex BN15
8TA (Assignor),

(2) ROCHESTER MEDICAL CORPORATION whose principal place of business is at One Rochester Medical
Drive, Stewartville, MN 55976 USA (Assignee)

Whereas

(A) Assignor is the owner and registered proprietor of the Trade Marks (as defined below).

(B) Pursuant to the Asset Sale Agreement (as defined below), Assignor has agreed to assign the
Trade Marks together with the goodwill attaching to the Trade Marks to Assignee, on the terms and
conditions set out in this Assignment.

It is agreed as follows:

1. Interpretation

1.1 In this Assignment the following expressions shall have the following meanings:

Asset Sale Agreement means the agreement dated [· ] between, inter alia, the Assignor and
Assignee for the sale and purchase of certain assets;

Products means male urinary sheaths and parts and fittings for such sheaths;

Registered Trade Mark means the registered trade mark particulars of which are set out in
Appendix 1 Part A;

Trade Marks means the Registered Trade Mark and the Unregistered Trade Marks; and

Unregistered Trade Marks means the rights in the unregistered UK trade marks in relation to
the Products particulars of which are set out in Appendix 1 Part B.

	1.2	 	Schedule 1, paragraph 2 of the Asset Sale Agreement shall apply, mutatis mutandis to this
Assignment.
	 
	1.3	 	The Appendix comprises an appendix to this Assignment and forms part of this Assignment.

Page 41

 

2. Assignment

Pursuant to the Asset Sale Agreement and in consideration of the sum of £1.00 now paid by the
Assignee to the Assignor (the receipt of which the Assignor hereby acknowledges) the Assignor
hereby assigns to Assignee the Trade Marks, and exclusive benefit of each of them together with:

	(a)	 	all statutory and common law rights attaching to the Trade Marks,
	 
	(b)	 	the goodwill attaching to the Trade Marks; and
	 
	(c)	 	the right to sue (and to recover and retain) damages and other remedies in respect of any
infringement or unauthorised use of any of the Trade Marks which may have occurred before the
date of this Assignment

to hold the same unto the Assignee absolutely.

3. Assignor’s use of the FREEDOM and URO FLO marks

For the avoidance of doubt, the assignment of the Unregistered Trade Marks under this Assignment
shall not prevent the Assignor or any of its group companies from using the marks FREEDOM and URO
FLO on goods other than the Products in the UK.

4. Further Assurance

Assignor shall, at Assignee’s reasonable cost, perform all further acts and things, and execute and
deliver all further documents, as may be required by Assignee to enable the Assignee become
registered as proprietor of the Registered Trade Mark (at all relevant registries) and/or to secure
the benefit of all rights hereby assigned.

5. Waivers, Rights and Remedies

Except as expressly provided in this Assignment, no failure or delay by either party in exercising
any right or remedy relating to this Assignment shall affect or operate as a waiver or variation of
that right or remedy or preclude its exercise at any subsequent time and no single or partial
exercise of any such right or remedy shall preclude any further exercise of it or the exercise of
any other remedy.

6. Variation

No variation of this Assignment shall be valid unless it is in writing and signed by or on behalf
of both parties. The expression variation shall include any variation, supplement, deletion or
replacement however effected.

7. Severability

If any provision of this Assignment is held to be invalid or unenforceable, such provision (so far
as it is invalid or unenforceable) shall be given no effect and shall be deemed not to be included
in this Assignment but without invalidating any of the remaining provisions of this Assignment.

Page 42

 

8. Entire Agreement

This Assignment (and the Asset Sale Agreement and documents referred to therein) sets out the
entire agreement and understanding between the parties in respect of the subject matter of this
Assignment. It is agreed that:

	(a)	 	neither party has entered into this Assignment in reliance upon any representation, warranty
or undertaking of the other party which is not expressly set out in this Assignment or the
Asset Sale Agreement (or documents referred to therein);
	 
	(b)	 	neither party shall have any remedy in respect of misrepresentation or untrue statement made
by the other party which is not contained in this Assignment or the Asset Sale Agreement (or
documents referred to therein);
	 
	(c)	 	this clause shall not exclude any liability for, or remedy in respect of, fraudulent
misrepresentation.

9. Governing Law and Arbitration

1.1 This Assignment and the relationship between the parties shall be governed by, and interpreted
in accordance with, English law.

	1.2	 	(a)	 	All disputes arising in connection with this Agreement and all shall be finally settled
in London, England under the rules of conciliation and arbitration of the International
Chamber of Commerce (ICC) in the English language by three (3) arbitrators appointed in
accordance with said rules.
	 
	 	 	(b)	 	All reasonable attorney’s fees and costs incurred by the prevailing party in
any arbitration pursuant to this Agreement, and the cost of such arbitration, shall
be paid by the other party to the arbitration within five (5) days after receipt of
written demand therefor from the prevailing party following the rendition of the
written decision of the arbitration tribunal, or as otherwise ordered by the
arbitration tribunal. On the application of such prevailing party before or after the
initial decision of the arbitration tribunal, and proof of its attorneys’ fees and
costs, the arbitration tribunal shall order the other party to the arbitration to make
the payments provided for in the preceding sentence.
	 
	 	 	(c)	 	Any decision rendered by any arbitration tribunal pursuant to this clause
shall be final and binding on the parties thereto, and judgment thereon may be entered
by any court of competent jurisdiction. The parties specifically agree that any
arbitration tribunal shall be empowered to award and order equitable or injunctive
relief with respect to matters brought before it.
	 
	 	 	(d)	 	Arbitration shall be the exclusive method available for resolution of claims,
disputes and controversies described in this clause, and the

Page 43

 

	     	 	 	 	parties stipulate that the provisions hereof shall be a complete defense to any
suit, action, or proceeding in any court or before any administrative or
arbitration tribunal with respect to any such claim, controversy or dispute. The
provisions of this clause shall survive the termination or expiration of this
Agreement.
	 
	 	 	(e)	 	Notwithstanding the terms of this clause or any contrary provisions in the
ICC rules, at any time before and after a demand for arbitration is presented, the
parties shall be free to apply to any court of competent jurisdiction for interim or
conservatory measures (including temporary conservatory injunctions). The parties
acknowledge and agree that any such action by a party shall not be deemed to be a
breach of such party’s obligation to arbitrate all disputes under this clause or
infringe upon the powers of any arbitral panel.

10. Counterparts

This Assignment may be executed in any number of counterparts and by the parties to it on separate
counterparts, each of which is an original but all of which together constitute one and the same
instrument.

11. No Rights Under Contracts (Rights of Third Parties) Act 1999

A person who is not a party to this Assignment shall have no right under the Contracts (Rights of
Third Parties) Act 1999 to enforce any of its terms.

Page 44

 

IN WITNESS WHEREOF this Assignment has been signed by the authorised representatives of the parties
on the day and year first written above.

	 	 	 	 	 
	SIGNED by

	 	 	)	 
	on behalf of

	 	 	)	 
	MENTOR MEDICAL LIMITED

	 	 	)	 
	 
	 	 	 	 
	SIGNED by

	 	 	)	 
	on behalf of

	 	 	)	 
	ROCHESTER MEDICAL

	 	 	)	 
	CORPORATION

	 	 	)	 

Page 45

 

APPENDIX 1

Part A

Registered Trade Mark

	 	 	 
	TRANSFIX

	 	UK 2201911, Class 10

Part B

Unregistered Trade Marks

CLEAR ADVANTAGE for use in relation to the Products

FREEDOM PLUS for use in relation to the Products

URO FLO for use in relation to the Products

URO FLO II for use in relation to the Products

Page 46

 

SCHEDULE 7

Part B

Form of Trade Mark Licence

A TRADE MARK LICENCE made on                      2006

Between 

(1) COLOPLAST A/S whose registered office is at Holtedam 1 3050, Humlebaek, Denmark (Licensor)

(2) ROCHESTER MEDICAL CORPORATION whose principal place of business is at One Rochester Medical
Drive, Stewartville, MN 55976 USA (Licensee)

Whereas 

(A) The Licensor is the owner of the Trade Mark (as defined below).

(B) Pursuant to the Asset Sale Agreement (as defined below), the Licensor has agreed to grant the
Licensee a licence to use the Trade Mark, on the terms and conditions set out in this agreement.

It is agreed as follows:

1. Interpretation

1.1 In this agreement the following expressions shall have the following meanings:

Asset Sale Agreement means the agreement dated [· ] between, inter alia, the Licensor and
Licensee for the sale and purchase of certain assets;

Business Day means a day other than a Saturday or Sunday or public holiday in England and
Wales on which banks are open in London for general commercial business;

exclusive means the right to use the Trade Mark, to the exclusion of all other persons
including the Licensor;

Licensed Products means male urinary sheaths and parts and fittings for such sheaths;

Territory means the United Kingdom;

Trade Marks mean the mark FREEDOM details of which are set out at Appendix 1;

1.2 Schedule 1, paragraph 2 of the Asset Sale Agreement shall apply, mutatis mutandis to this
agreement.

Page 1

 

1.3 Appendix 1 comprises an appendix to this agreement and forms part of this agreement.

2. Grant of Licence

2.1 In consideration of and on the terms of this agreement, the Licensor hereby grants Licensee an
exclusive, royalty-free licence within the Territory to use the Trade Mark on or in relation to the
Licensed Products (including, without limitation, in relation to manufacture, promotion,
distribution and sale).

2.2 The Licensee shall (at its discretion) take reasonable steps, at its own cost, to record the
licence granted to it under clause 2.1 in any relevant registries.

2.3 Any recordal made under clause 2.2 shall be cancelled by the Licensor, at its own cost, on the
termination of this agreement. The Licensee shall assist the Licensor at the Licensor’s cost and
expense, as may reasonably be required by Licensor, to achieve such cancellation.

3. Maintenance of the Trade Mark

3.1 The Licensor shall take all reasonable steps to maintain and protect the registration
(including, without limitation, promptly paying any renewals or other fees as they become due) for
the Trade Mark, provided that the Licensee promptly provides all assistance as may reasonably be
required by the Licensor in connection with doing so.

3.2 If at any time the Licensor wishes to cease maintaining or protecting the Trade Mark, then it
shall follow the procedure set out in this clause, failing which it shall continue to be obliged to
maintain or protect the same. The Licensor may offer to assign the Trade Mark for a nominal
consideration, in exchange for the grant by the Licensee to the Licensor of a non-exclusive licence
to use the Trade Mark outside of the Territory. If, within 90 days of receipt of such notice, the
Licensee either notifies the Licensor that it does not wish to accept that offer, or fails to
respond at all, the Licensor may thereafter cease to maintain or protect the Trade Mark.

4. Licensee Duties

4.1 The Licensee shall:

	(a)	 	ensure that the Licensed Products comply with any quality standards which the Licensor may
from time to time reasonably require;
	 
	(b)	 	use the Trade Mark only in a manner which conforms to the reasonable directions and standards
notified to it by the Licensor from time to time;
	 
	(c)	 	not use, register or attempt to register any trade marks, company, business or trading names
or domain names which are identical or confusingly similar to (or which incorporate) the Trade
Mark, without the Licensor’s prior written consent;

Page 2

 

	(d)	 	not do anything which could, in the Licensor’s reasonable opinion, bring the Trade Mark or
the Licensor into disrepute or which could otherwise damage the goodwill attaching to the
Trade Mark;
	 
	(e)	 	not use the Trade Mark in a manner which could, in the Licensor’s reasonable opinion, result
in any of them becoming generic or in the Licensor’s rights in them becoming diluted, or which
could otherwise knowingly prejudice or invalidate a registration of the Trade Mark; and
	 
	(f)	 	ensure that its use of the Trade Mark comply with all applicable laws, regulations and
industry requirements and standards in force within the Territory.

4.2 The Licensee acknowledges and agrees that:

	(a)	 	the Trade Mark is and shall remain the exclusive property of the Licensor;
	 
	(b)	 	it shall not acquire, nor claim, any right, title or interest in or to the Trade Mark or the
goodwill attaching to it by virtue of this agreement or its use of the Trade Mark, other than
the rights specifically granted to it under clause 2.1;
	 
	(c)	 	all goodwill arising from use of the Trade Mark by the Licensee during the term of this
agreement shall accrue and belong to the Licensor, and the Licensee shall, at the Licensor’s
request and cost, promptly execute all documents reasonably required by the Licensor to
confirm this; and
	 
	(d)	 	all use of the Trade Mark by the Licensee shall be deemed to be use by the Licensor.

5. Infringement

5.1 Each party shall immediately notify the other in writing of any of the following matters which
comes to its attention (giving full particulars):

	(a)	 	any actual, suspected or threatened infringement of the Trade Mark;
	 
	(b)	 	any allegation or complaint made by any third party that the Trade Mark is invalid, that use
of the Trade Mark infringes any third party rights, or that use of the Trade Mark may cause
deception or confusion to the public;
	 
	(c)	 	any other form of attack or claim to which the Trade Mark may be subject.

5.2 The Licensee shall not make any admissions in respect of these matters other than to the
Licensor and shall, in each case, provide the Licensor with all relevant information in its
possession.

5.3 The Licensor shall decide, following consultation in good faith with the Licensee, in its
absolute discretion, whether or not to take action, and what action to take, in respect of any of
the matters in clause 6.1 and shall have exclusive control

Page 3

 

over any resulting claims, actions and proceedings. The provisions of section 30 of the Trade
Marks Act 1994 are expressly excluded.

5.4 The Licensee shall, at the Licensor’s cost, provide any assistance which the Licensor
reasonably requires (including bringing proceedings or lending its name to any proceedings brought
by the Licensor) in connection with any of the matters in clause 5.1. Any award of costs or
damages or other compensation payment recovered in connection with any of those matters shall be
for the account of the Licensor.

6. Indemnity

The Licensor shall indemnify and hold the Licensee harmless against all claims, liabilities, costs
(including legal costs) and expenses arising out of any claim that the Licensee’s use of the Trade
Mark in accordance with this agreement infringes the rights of any third party.

The Licensee shall not make any comment or admission to any third party in respect of this matter
and shall procure that its agents, sub-contractors and employees do not do so. The Licensor shall
have sole conduct of the matter giving rise to the obligation to indemnify. The Licensee shall
make no admission as to liability and shall not agree to any settlement or compromise of any action
to which this clause relates, in each case without the Licensor’s prior written consent.

7. Duration of Agreement

This agreement commences on the date of this agreement and shall continue in full force and effect
until terminated in accordance with clause 8.

8. Termination

8.1 On the occurrence of any of the following events, either party may (without prejudice to any
other right or remedy) by written notice to the other party terminate this agreement with immediate
effect:

	(a)	 	if the other party commits a material breach of any obligation under this agreement, and in
the case of a breach which is capable of remedy fails to remedy it within 30 days of receipt
of notice from the first party of such breach and of its intention to exercise its rights
under this clause; or
	 
	(b)	 	a petition is presented, or a meeting is convened for the purpose of considering a resolution
or any other steps are taken by any person with a view to the appointment of an administrator
(whether out of court or otherwise) against or for the winding up of the other party or an
administration order or a winding up order is made against or a provisional liquidator
appointed with respect to the other party ; or
	 
	(c)	 	an encumbrancer takes possession of, or a trustee or administrative receiver or similar
officer is appointed in respect of, all or any part of the business or assets of the other
party , or distress or any form of execution is levied or

Page 4

 

	 	 	enforced upon or sued out against any such assets and is not discharged within 7 days of
being levied, enforced or sued out; or
	 
	(d)	 	the other party is unable to pay its debts as they fall due or the value of its assets is
less than the amount of its liabilities, taking into account its contingent and prospective
liabilities, or it suspends or threatens to suspend making payments with respect to all or any
class of its debts; or
	 
	(e)	 	any voluntary arrangement is proposed under section 1 of the Insolvency Act 1986 (as amended,
re-enacted or replaced from time to time) in respect of the other party ; or
	 
	(f)	 	the other party proposes or makes any composition or arrangement or composition with, or any
assignment for the benefit of, its creditors; or
	 
	(g)	 	anything analogous to any of the events described in paragraphs (c) – (g), inclusive, occurs
under the laws of any applicable jurisdiction; or

8.2 Licensor may terminate this agreement if the Licensee (or its successors or assigns) ceases to
carry on the whole or any material part of its business and that cessation would affect adversely
the Licensee’s ability to observe any of its obligations under this agreement.

8.3 For the purposes of clause 8.1(a), a breach shall be considered capable of remedy if the party
in breach can comply with the provision in question in all respects other than as to time of
performance.

9. Consequences of Termination

9.1 On termination of this agreement for any reason, the licence granted under clause 2.1 shall
immediately cease and the Licensee shall immediately cease all use of the Trade Mark in or in
relation to the Licensed Products, including cancelling or transferring to the Licensor any
registrations in the name of the Licensee for any corporate, business, trade or domain names
incorporating the Trade Mark or any aspect of any of them.

9.2 Notwithstanding clause 9.1 for a period of six months following termination, the Licensee may
continue to use the Trade Mark for the purpose of selling the existing stocks of Licensed Products
(including, for the avoidance of doubt, packaging of and literature relating to the Licensed
Products) which are in its possession, custody or control on the date of termination of this
agreement.

9.3 Termination of this agreement (howsoever arising) shall not affect either party’s accrued
rights to damages arising out of any breach nor release either of the parties from any liability
which at the time of termination has already accrued to the other party, nor affect in any way the
survival of any other right, duty or obligation of the parties which is expressly stated elsewhere
in this agreement to survive such termination.

10. Assignment and Other Dealings

Page 5

 

10.1 The Licensee may assign or transfer all of its rights and obligations under this agreement to
a third party who acquires all or substantially all of the Licensee’s business in the Licensed
Products and assets relating to that business.

10.2 If the Licensee assigns or transfers all of its rights and obligations under this agreement it
shall notify the Licensor as soon as practicable after such assignment or transfer, together with
particulars of the assignee or transferee.

10.3 The Licensee may sub-license its rights under this agreement to any third party it engages to
manufacture or distribute the Licensed Products, provided that:

	(a)	 	the sub-licence shall be in writing on the same terms as this agreement (except that the
sub-licensee shall not have the right to sub-license its rights to any third party;
	 
	(b)	 	the permission to sub-licence under this clause shall automatically terminate in termination
of this agreement; and
	 
	(c)	 	the Licensee shall be liable for all acts and omissions of its sub-licensees.

10.4 The Licensor may assign its rights under (subject to the burden of all or the relevant part
of) this agreement only with the prior written consent of the Licensee, such consent not to be
unreasonably withheld or delayed.

11. Notices

11.1 Any notice in connection with this agreement shall be in writing in English and delivered by
hand, fax, registered post or courier using an internationally recognised courier company. A
notice shall be effective upon receipt and shall be deemed to have been received (i) at the time of
delivery if delivered by hand, registered post or courier or (ii) at the time of transmission if
delivered by fax provided that in each case where delivery by hand or by fax occurs outside working
hours, notice shall be deemed to have been received at the start of working hours on the next
following Business Day.

11.2 The addresses and fax numbers of the parties for the purpose of clause 11.1 are:

Licensor

Address: [•]

Fax: [•]

For the attention of: [•]

Licensee

Address: [•]

Fax: [•]

For the attention of: [•]

12. Waivers, Rights and Remedies

Page 6

 

Except as expressly provided in this agreement, no failure or delay by either party in exercising
any right or remedy relating to this agreement shall affect or operate as a waiver or variation of
that right or remedy or preclude its exercise at any subsequent time. No single or partial
exercise of any such right or remedy shall preclude any further exercise of it or the exercise of
any other remedy.

13. Remedies Cumulative

The rights and remedies of each of the parties are cumulative, may be exercised as often as such
party considers appropriate and are in addition to its rights and remedies under general law.

14. Variation

No variation of this agreement shall be valid unless it is in writing and signed by or on behalf of
both parties. The expression variation shall include any variation, supplement, deletion or
replacement howsoever effected.

15. Severability

If any provision of this agreement is held to be invalid or unenforceable, then such provision (so
far as it is invalid or unenforceable) shall be given no effect and shall be deemed not to be
included in the agreement but without invalidating any of the remaining provisions of this
agreement.

16. Entire Agreement

This agreement (together with the Asset Sale Agreement and the documents referred to in it) sets
out the entire agreement and understanding between the parties in respect of the subject matter of
this agreement. It is agreed that:

	(a)	 	neither party has entered into this agreement in reliance upon any representation, warranty
or undertaking of the other party which is not expressly set out or referred to in this
agreement;
	 
	(b)	 	neither party shall have any remedy in respect of misrepresentation or untrue statement made
by the other party which is not contained in this agreement;
	 
	(c)	 	this clause shall not exclude any liability for, or remedy in respect of, fraudulent
misrepresentation.

17. Legal Relationship

Nothing in this agreement is deemed to constitute a partnership between the parties nor constitute
any party the agent of the other party for any purpose

18. Governing Law and Jurisdiction

18.1 This agreement and the relationship between the parties shall be governed by, and interpreted
in accordance with, English law.

Page 7

 

18.2 The courts of England and Wales are to have exclusive jurisdiction to settle any dispute which
may arise in connection with this agreement. For such purposes each party irrevocably submits to
the jurisdiction of the English courts, waives any objections to the jurisdiction of those courts
and irrevocably agrees that a judgment or order of the English courts in connection with this
agreement is conclusive and binding on it and may be enforced against it in the courts of any other
jurisdiction.

19. Counterparts

This agreement may be executed in any number of counterparts and by the parties to it on separate
counterparts, each of which is an original but all of which together constitute one and the same
instrument.

20. No Rights Under Contracts (Rights Of Third Parties) Act 1999

A person who is not a party to this Agreement shall have no right under the Contracts (Rights of
Third Parties) Act 1999 to enforce any of its terms.

IN WITNESS WHEREOF this agreement has been signed by the authorised representatives of the parties
on the day and year first written above.

	 	 	 	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	Name:
	 	 
	 

	 	 	 	 	 	 	 	 
	on behalf of

	 	 	)	 	 	 	 	 
	COLOPLAST A/S

	 	 	)	 	 	Signature:
	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	Name
	 	 
	 

	 	 	 	 	 	 	 	 
	on behalf of

	 	 	)	 	 	 	 	 
	ROCHESTER MEDICAL

	 	 	)	 	 	 	 	 
	CORPORATION

	 	 	)	 	 	Signature
	 	 
	 

	 	 	 	 	 	 	 	 

Page 8

 

APPENDIX 1

TRADE MARK

	 	 	 	 	 	 	 
	Mark	 	No	 	Date of Regn.	 	Class
	FREEDOM
	 	E165423	 	01.04.1996	 	Class 10

Page 9

 

SCHEDULE 8

TRANSFERRED EMPLOYEES

1. Relevant transfer

The parties acknowledge and agree that the sale of the Assets from the Selling Parties to the
Purchaser is a “relevant transfer” within the meaning of the Transfer Regulations.

If for any reason the contracts of employment of any of the Transferred Employees are not
automatically transferred to the Purchaser pursuant to the Transfer Regulations, the Purchaser
shall immediately offer to employ such persons on terms and conditions no less favourable to the
Transferred Employees than the terms on which they were employed immediately prior to Closing.

2. Selling Parties Obligations

The Selling Parties shall indemnify the Purchaser against any Employee Liabilities which are
attributable to any breach or default by the Selling Parties (or their predecessors as employer)
prior to the close of business on Closing in respect of any of their obligations or duties as
employer (in either case, whether arising under contract, common law, statute, or otherwise) to or
in relation to any of the Transferred Employees and which the Purchaser may incur or suffer as a
result of succeeding to the Selling Parties pursuant to the Transfer Regulations in relation to the
contracts of employment of the Transferred Employees. This shall include, but shall not be limited
to any failure by the Selling Parties to comply with their obligations under regulation 13(2) of
the Transfer Regulations, save to the extent that the Purchaser fails to comply with its
obligations under regulation 13(4) of the Transfer Regulations.

The Selling Parties shall indemnify the Purchaser against any Employee Liabilities incurred by the
Purchaser which are attributable to the termination or dismissal (or alleged termination or
dismissal) by any of the Selling Parties prior to the close of business on the Closing Date of the
employment of any person who is not a Transferred Employee.

3. Purchaser Obligations

The Purchaser shall indemnify the Selling Parties against any Employee Liabilities which arise from
the employment by the Purchaser (or any subsequent employer) of the Transferred Employees or
Additional Employees on or after Closing or are attributable to any act or omission (or alleged act
or omission) by the Purchaser in relation to any of the Transferred Employees or Additional
Employees. This shall include, but shall not be limited to, any Employee Liability arising out of
the termination of employment or dismissal of any Transferred Employee or Additional Employee after
the Closing, any failure by the Purchaser to offer terms and conditions of employment and working
conditions which are no less favourable than those which apply to the Transferred Employees or
Additional Employees up to Closing, and any

Page 10

 

failure by the Purchaser to comply with its obligations under regulation 13(4) of the Transfer
Regulations.

4. Apportionment

All amounts payable to or in relation to the Transferred Employees or Additional Employees by the
Selling Parties in respect of the period prior to the close of business on the Closing Date shall
be discharged by the Selling Parties and the Selling Parties shall indemnify the Purchaser against
any Employee Liabilities arising out of or in connection with such amounts. All necessary
apportionments shall be made to give effect to this paragraph.

5. Other employees

If any contract of employment of a person who is not a Transferred Employee has effect as if
originally made between the Purchaser and such person, then:

	(a)	 	the Purchaser may, within 1 month of becoming aware  of such contract having
effect as if originally made by the Purchaser, terminate such contract; and
	 
	(b)	 	the Selling Parties shall indemnify the Purchaser against any sums payable to or in relation
to such person under or in connection with his contract of employment (whether before or after
Closing) and against any Employee Liabilities arising out of or in connection with the
termination of the contract of employment of such person, provided always that the Purchaser
has used commercially reasonable efforts to minimise the amount of any such sums and/or
Employee Liabilities; and
	 
	(c)	 	if the Purchaser does not terminate the contract of employment of such a person in accordance
with this paragraph, he shall be treated as a Transferred Employee for the purposes of this
Schedule 10.

6. Additional Employees

1. The Purchaser may offer employment to such additional employees of the Selling Parties (the
Additional Employees) as may be agreed between the Selling Parties and the Purchaser between
signing of this Agreement and Closing and on terms and conditions no less favourable to the
Additional Employees than the terms on which they were employed immediately prior to Closing. Any
Employee Liabilities arising in connection therewith, including redundancy payments payable to such
employees, if any, shall be apportioned in accordance with paragraph 4 above.

7. Non-Solicitation

The Purchaser covenants with the Selling Parties that it shall not, whether directly or indirectly,
on its own behalf or on behalf of or in conjunction with any Affiliate for the period of 1 year
following the Closing Date, solicit or entice away or endeavour to solicit or entice away any
individual other than a Transferred Employee or an

Page 11

 

Additional Employee who was employed or engaged by MML as of the date of this Agreement.

Page 12

 

APPENDIX 1

List of Transferred Employees

	(a)	 	Medical Healthcare Team:

	 	(i)	 	Gill Downing;
	 
	 	(ii)	 	Phil Gibbs;
	 
	 	(iii)	 	Leah Leaves;
	 
	 	(iv)	 	Claire Gibbs; and
	 
	 	(v)	 	Alison Stubbs.

	(b)	 	Customer Service:

	 	(i)	 	Sam Baker;
	 
	 	(ii)	 	Sharon Moore; and
	 
	 	(iii)	 	Vicki Cox.

	(c)	 	Warehouse

	 	(i)	 	Terry Loversidge;
	 
	 	(ii)	 	Brian Jackson; and
	 
	 	(iii)	 	Barrie Lloyd

	(d)	 	IT – Joseph Baker-Coady

Page 13

 

SCHEDULE 9

Part A

Furniture, Fixtures and Equipment

The parties shall enter into good faith negotiations to finalise a document prior to Closing
setting out details of the furniture, fittings and equipment that shall be transferred to the
Purchaser at Closing.

Part B

IT Systems

The parties shall enter into good faith negotiations to finalise a document prior to Closing
setting out details of the IT Systems that shall be transferred to the Purchaser at Closing.

As of the date of this Agreement, the parties have agreed that

	 	•	 	The Purchaser will take all computer equipment primarily used by the Transferred
Employees and Additional Employees;
	 
	 	•	 	The Selling Parties will retain the 4 servers present in the Property, together with
all related equipment, telephone system, software and documentation; and
	 
	 	•	 	The Purchaser will take the computer network located in the Property, except for the
servers.

Page 14

 

SCHEDULE 10

CONTRACTS

1. Assignment of Contracts

1.1 To the extent that the benefit of any of the Contracts can be assigned without obtaining a
Third Party Consent, this Agreement shall constitute an assignment to the Purchaser of the benefit
of all of those Contracts with effect from Closing.

1.2 Nothing in this Agreement shall be construed as an attempt to assign or novate any Contract
which by its terms is not assignable without a Third Party Consent or would otherwise constitute a
breach of such contract until such Third Party Consent has been obtained.

2 Purchaser to complete Contracts and Purchaser’s indemnity

Subject always to the provisions of paragraph 4 below, the Purchaser shall from Closing perform all
the obligations of the relevant Selling Party under the Contracts (other than in respect of any
Contract which has been refused by the Purchaser pursuant to paragraph 6) and the Purchaser shall
indemnify the relevant Selling Party for any Losses and Expenses suffered or incurred by it
directly in connection with the Purchaser’s performance or non-performance of the relevant Selling
Party’s obligations under such Contracts after Closing PROVIDED THAT notwithstanding any other
provision of this Agreement or any assignment or novation between the relevant Selling Party or any
Connected Person and the Purchaser and any third party, the Purchaser shall not be liable or
responsible for any obligations or liabilities:-

(a) under the Contracts which are attributable to the negligence, default, act, event, omission,
breach or performance or non-performance of the Contracts on the part of the relevant Selling Party
or any Connected Person, or their employees, agents or sub-contractors prior to Closing;

(b) which arise as a result of the actions taken by the relevant Selling Party or any Connected
Person pursuant to this Schedule 10; or

(c) which arise as a result of any failure to obtain any Third Party Consent or from any breach of
any Contract caused by this Agreement or Closing.

3 The Selling Parties’ obligations and indemnity in respect of the Contracts

3.1 The Selling Parties shall or shall procure that from the date of this Agreement until Closing
they shall properly perform the Contracts in accordance with their respective terms and, following
Closing, the Selling Parties, shall indemnify and hold the Purchaser harmless against all Losses
and Expenses suffered or incurred by it directly in connection with the performance or
non-performance or negligent or defective performance between the date of this Agreement and
Closing.

Page 15

 

4 Contracts and requiring a Third Party Consent

4.1 If any Third Party Consent has not been obtained by Closing, then following the Closing and
until it is obtained:

(a) the Selling Parties shall use their best endeavours to obtain that Third Party Consent;

(b) the transfer of that Contract (to the extent that a Third Party Consent is required) shall not
take effect and the Selling Parties shall from Closing hold it on trust for the Purchaser and
account for and pay or deliver to the Purchaser (as soon as reasonably practicable after receipt)
any moneys, goods and other benefits which they receive after Closing to the extent that they
relate to such Contract (except in each case to the extent they comprise, or represent the proceeds
from, an Excluded Asset);

(c) the Purchaser shall (if sub-contracting is permissible and lawful under the Contract) perform
as the relevant Selling Party’s sub-contractor or, if sub-contracting is not permissible or lawful,
the Purchaser shall (if the appointment of an agent is permissible and lawful under the Contract)
perform as the relevant Selling Party’s agent, at the risk and cost and for the benefit of the
Purchaser, the obligations of the relevant Selling Party thereunder falling due after Closing; and

(d) the Selling Parties shall from Closing give all reasonable assistance to the Purchaser (at the
Purchaser’s request and expense) to enable the Purchaser to enforce its rights under the Contract.

4.2 If:

(a) the terms of any particular Contract do not permit the Purchaser to perform the relevant
Selling Parties’ obligations as sub-contractor or as agent; or

(b) any Third Party Consent is not obtained within 6 months after the Closing Date or is refused,

then the Selling Parties and the Purchaser shall in good faith negotiate a mutually acceptable
alternative solution by which the Purchaser shall receive the benefit of the relevant Contract and
assume the associated obligations.

Page 16

 

APPENDIX 1

Agreement between Barloworld Handling and Eschmann Bros &Walsh Ltd, dated 19

Contract between The NHS Logistics Authority and MML, contract ref AA104003

Contract between Nottingham City Primary Care Trust and MML, pursuant to Nottingham Community
Urology Formulary, [April 2006]

Contract between NHS Scotland Scottish Healthcare Supplies and MML, contract ref MRC015

Contract between Welsh Health Supplies and MML, contract ref AW3447a [as per extension of contract
by agreement dated 14 October 2005]

Short-term hire agreement with Crown Lift Trucks Limited, dated 28 February 2006

Preventative Maintenance Contract between Atlet Limited and MML, dated 15 April 1996

Page 17

 

SCHEDULE 11

CONDUCT PRE-CLOSING

In the period up to Closing, the Selling Parties shall not take any of the following actions or
suffer, permit or agree to be done any of the following by or in relation to the Assets, other than
in the ordinary course of business:

	(a)	 	any disposal of or removal from the Property of any Asset (other than an Excluded Asset and
sales of inventory in the ordinary course);
	 
	(b)	 	make any material change in the design, specification or method of manufacture of the
Products;
	 
	(c)	 	any entry into, modification, cancellation or intentional termination of any material
Contract or arrangement (for the avoidance of doubt, excluding expiration or non-renewal of a
contract by its existing terms);
	 
	(d)	 	commit any breach, not timely cured, of any term of any of the Contracts subsisting at the
date of this Agreement which gives rise to a right of termination by any other party to it or
which gives rise to a material claim for material damages or other material compensation by
any such party;
	 
	(e)	 	the giving of any guarantee, indemnity or other agreement to secure an obligation of a third
party;
	 
	(f)	 	the creation of any Encumbrance other than a Permitted Encumbrance over the Assets;
	 
	(g)	 	terminate the contract of employment of any Transferred Employee, other than for cause. If
any such contract of employment is terminated for cause then, with the consent of the
Purchaser (which shall not be unreasonably withheld) the Selling Parties may hire a
replacement employee;
	 
	(h)	 	any material alteration of the terms and conditions of contracts (including benefits) of any
Transferred Employees;
	 
	(i)	 	market or promote Coloplast or CP UK’s products through the Products;
	 
	(j)	 	price the products other than in the ordinary course of business;
	 
	(k)	 	the institution, settlement or agreement to settle any Litigation relating to the Assets; and
	 
	(l)	 	in relation to the Property:

	 	(1)	 	any application for or implementation of planning permission;
	 
	 	(2)	 	any alteration, addition or change of use.

Page 18

 

(m) in the period up to Closing, the Selling Parties shall pay as they fall due the premiums on all
insurance policies maintained in respect of the Assets or the Business, comply with the terms of
such insurance policies, take no affirmative action to terminate any of the insurance policies, and
otherwise use commercially reasonably efforts to continue all of the insurance policies in force.
If such an insurance policy is terminated by the insurer, in whole or in part, the Selling Parties
undertake to promptly notify the Purchaser.

Page 19

 

SCHEDULE 12

PROPERTY

Part A :

1. SALE AGREEMENT

MML shall sell the Property and the Purchaser will purchase the same with vacant possession on the
Closing Date subject to the provisions of this Schedule and the Purchaser will immediately
thereafter grant MML the Lease.

2. TITLE

2.1 In relation to the Property title shall comprise an official copy with title plan of the
registers relating to the Property and full copies of any documents referred to on the register
(where applicable) and such other documents listed on the Schedule hereto as may affect the
Property except charges or incumbrances registered or protected on the register which are to be
discharged or overreached at or prior to completion.

2.2 Title to the Property having been deduced to the Purchaser prior to the date hereof (as the
Purchaser hereby admits) the Purchaser shall be deemed to have accepted such title and shall not
raise any enquiries or requisitions thereon nor make any objections in respect thereof after the
date of this Agreement save for matters revealed by final searches carried out by the Purchaser
and/or except where the subject matter of the enquiry or requisition is registered at HM Land
Registry or the Central Land Charges Register after the date of this Agreement.

2.3 The MML sells the Property with full title guarantee as specified in the Transfer.

2.4 Standard Conditions 3.1.2(d), 6.1 to 6.3 (inclusive), 6.4.2, 6.6.2 and 6.6.5 shall not apply.

3. MATTERS AFFECTING THE PROPERTY

3.1 The Property is sold and the Lease is granted subject to the following matters so far as they
are still subsisting and capable of taking effect on the Closing Date:

	(a)	 	any matters contained or referred to in the Property Register or the Charges Register of the
registered title to the Property kept at HM Land Registry as at 11:36am on 10 May 2006 and/or
the Documents (as the case may be);
	 
	(b)	 	all rights of way, light and air, support, drainage and other rights, easements, quasi
easements, liabilities and public or private rights whatsoever and to any liability to repair
or contribute to the repair of sewers, drains, pipes, party structures and other like matters;

Page 20

 

	(c)	 	all matters in the nature of overriding interests as set out in Schedule 1 or Schedule 3 (as
appropriate) and sections 11(4)(c) and 90 of the Land Registration Act 2002 (as amended by
Schedule 12 of the Land Registration Act 2002 and the Land Registration (Transitional
Provisions) (No. 2) Order 2003);
	 
	(d)	 	all Local Land Charges (whether or not registered before the date of this Agreement) and all
matters capable of registration as Local Land Charges (whether or not actually registered);
	 
	(e)	 	all notices served and orders, demands, proposals, or requirements made by any local or other
public or competent authority;
	 
	(f)	 	all actual or proposed orders, directions, plans, notices, instruments, charges,
restrictions, conditions, agreements or other matters arising under any statute relating to
town and country planning and any laws and regulations intended to control or regulate the
construction, demolition, alteration or change of use of land or buildings or to preserve or
protect the environment; and
	 
	(g)	 	matters contained in the Disclosure Documents.

3.2 The Purchaser shall be deemed to purchase or accept a transfer with full knowledge and notice
of the matters aforesaid and shall not raise any objection or requisition whatsoever in respect of
the same.

3.3 Standard Condition 3.1 shall apply with the following modifications:

	(a)	 	in paragraph 3.1.2(c) delete the words “and could not reasonably”;

4. FORM OF TRANSFER AND LEASE

4.1 The Transfer shall be in the agreed form set out at Part C of this Schedule and the Lease shall
be substantially in the agreed form set out in Part D of this Schedule.

4.2 The Purchaser shall prepare and execute the Transfer in duplicate and shall deliver the
executed Transfer and any other documents to be entered into between MML and the Purchaser (with or
without other parties) to MML no later than five Business Days before the Closing Date.

4.3 MML shall prepare the lease in counterpart and original and shall deliver the original to the
Purchaser for execution no later than the Closing Date and the Purchaser and MML shall execute the
counterpart and the original parts (as appropriate) prior to the Closing Date.

5. COMPLETION

5.1 Standard Condition 1.1.3(b) shall be varied by adding the words “or if reasonable evidence is
produced that the property will be released from all such mortgages on completion” after the words
“all mortgages”.

Page 21

 

5.2 Standard Condition 8.5.1 shall be varied by adding the words “but this obligation shall not
extend to any destroyed, missing or (to the extent of any incompleteness) incomplete document of
which the buyer is aware” after the words “documents of title”.

5.3 Standard Conditions 8.8 and 9 shall not apply

6. INSURANCE 

6.1 Insurance of the Property shall be continued by the Selling Parties in accordance with the
obligations in clause 5.7 of this Agreement and further the Selling Parties shall comply with
Standard Conditions 7.1.1 and 7.1.2(a) to (e).

6.2 Conditions 7.1.2(f) and (g), 7.1.3 and 7.1.4 do not apply.

7. RESTRICTION ON SUB SALE

MML shall not be required to transfer the Property for a greater consideration than the Purchase
Price nor to transfer the Property otherwise than by a single transfer of the whole interest in the
Property in favour of the Purchaser.

8. NON MERGER

Notwithstanding completion of the sale and purchase as contemplated by this Agreement, this
Schedule shall remain in full force and effect so far as anything contained herein remains to be
implemented.

9. STANDARD CONDITIONS

9.1 Part 1 of the Standard Conditions are incorporated into this Agrement save as varied by the
express terms of this Agreement and where this Agreement conflicts with the Standard Conditions the
provisions of this Agreement shall prevail.

9.2 Part 2 of the Standard Conditions shall not apply to this Agreement.

9.3 Conditions 1.3, 1.4, 2.2, 2.3 and 12 shall be deleted.

10. REGISTRATION OF THIS AGREEMENT

10.1 The Purchaser shall be entitled to protect this Agreement by way of unilateral notice or land
charge class Civ (as appropriate) only and shall not send or permit to be sent to H.M. Land
Registry or to the Land Charges Department a full copy of this Agreement.

10.2 If the Purchaser has protected this Agreement pursuant to paragraph 8.1 and this Agreement
either completes (so that no term remains to be implemented) or terminates the Purchaser shall
forthwith remove any such entry against MML or its title at H.M. Land Registry or the Land Charges
Department.

Page 22

 

10.3 The Purchaser agrees that it will register the Transfer as soon as reasonably practicable
after the Closing Date but in any event within two months of the Closing Date.

10.4 Where required and promptly provided by the Selling Parties, the Purchaser will submit with
its application to register the transfers the Selling Parties’ Form EX1 and/or EX1A together with
the appropriate fee which the Selling Parties agree to reimburse within 10 working days of demand
and the accompanying documents edited by the Selling Parties provided that this clause shall not
prevent the Purchaser from completing and submitting its own forms EX1 and EX1A together with an
edited accompanying documents containing the same or different edited information to that of the
Selling Parties

10.5 Where the Purchaser is required to disclose unregistered interests pursuant to Rule 28 or 57
of the Land Registration Rules 2003, the Purchaser will send to H.M. Land Registry with its Form DI
the Seller’s Form(s) EX1 and EX1A together with the appropriate fee and the accompanying documents
edited by the Selling Parties.

Part B

Description of the Property

ALL THAT freehold land known as Unit 3 Commerce Way Lancing registered at HM Land Registry with
title absolute under Title Number WSX17055

Particulars Of The Documents

	 	 	 	 	 	 	 	 	 
	 
	 	Date
	 	 Document
	 	Parties
	 	 

None

Part C

The Transfer

Please see Exhibit 2

Part D

Lease

LEASE

DATED                                                                2006

PARTICULARS

Page 23

 

	 	 	 
	LANDLORD:

	 	ROCHESTER MEDICAL LIMITED whose registered office is at 21
Wilson Street London EC2M 2TD (Company Number 5779226)
	 
	 	 
	TENANT:

	 	MENTOR MEDICAL LIMITED whose registered office is at 10 Commerce
Way Lancing West Sussex BN15 8TA (Company Number 04318120)
	 
	 	 
	PREMISES:

	 	The whole of the Ground floor and part first floor (as shown
edged blue on the attached plan) of, Unit 3 Commerce Way Lancing
	 
	 	 
	TERM:

	 	12 months commencing on and including the date hereof
(determinable as herein mentioned)
	 
	 	 
	RENT:

	 	[£4.50 psf] per annum exclusive of any Value Added Tax thereon
such sum to be payable quarterly in advance on the usual quarter
days in every year inclusive of service charge and insurance
costs

1. DEFINITIONS AND INTERPRETATION

Definitions

1.1 In this Lease unless the context otherwise requires the terms set out in the Particulars will
have the meanings given to them there and the following expressions shall have the following
meanings:

Business means the business of the Tenant in the United Kingdom at the date hereof;

Common Parts means the accessways entrances halls staircases passages toilets staff canteen staff
common-room IT-room sewers drains pipes watercourses cables and other conducting media plant and
equipment and such other parts of the Landlord’s Premises as shall from time to time during the
Term be allocated by the Landlord for use or used by the Tenant in common with the Landlord or
other occupants of the Landlord’s Premises;

Insured Risks means the usual commercial risks as a reasonable Landlord would from time to time
insure against (subject to any excesses exclusions and limitations imposed by the insurers);

Landlord’s Expenses means the costs outgoings and other expenditure paid or incurred by or on
behalf of the Landlord from time to time during the Term in connection with the Landlord’s
Premises;

Landlord’s Premises means the freehold premises known as Unit 3, Commerce Way, Lancing as
registered at the Land Registry under Title Number WSX17055 and any part of such premises;

Page 24

 

Premises includes window frames and glass doors and door frames finishes raised floors and
suspended ceilings and the voids above and below them light fittings and other Landlord’s fixtures
and fittings within the Premises but excluding any part of the main structure foundations roof or
exterior of the Landlord’s Premises;

Interpretation

1.2 This Lease shall unless the context otherwise requires be construed on the basis that:

	(a)	 	words importing the masculine gender only shall include the feminine gender and singular
shall include the plural and vice versa;
	 
	(b)	 	where the expression the Landlord or the Tenant includes more than one person covenants
expressed to be given by such persons are made jointly and severally; and
	 
	(c)	 	where this Lease obliges the Tenant not to do something, the Tenant is also obliged not to
permit it to be done by an invitee of the Tenant or any person under the Tenant’s control;

2. DEMISE

In consideration of the Tenant’s covenants contained in this Lease the Landlord DEMISES to the
Tenant the Premises TOGETHER WITH the rights set out in Part A of The Schedule EXCEPTED AND
RESERVED to the Landlord and to all other persons from time to time entitled to them the rights set
out in Part B of The Schedule and SUBJECT TO all covenants rights easements and privileges
affecting the Premises including any overriding interests as set out in Schedule 1 or Schedule 3
(as applicable), section 90 and Schedule 12 of the Land Registration Act 2002 TO HOLD the same for
the Tenant for the Term PAYING to the Landlord the Rent the first instalment(s) or an appropriate
proportion to be paid on the date of this Lease for the period from the date of this Lease to the
next rent day after the date of this Lease

3. TENANT’S COVENANTS

The Tenant COVENANTS with the Landlord:

	(a)	 	to pay the Rent and other sums payable under this Lease at the times and in the manner
specified in this Lease clear of all deductions set off or counterclaim and (if required) by
standing order;
	 
	(b)	 	to pay to the Landlord on demand the Value Added Tax (or any other tax replacing or
supplementing the same) which from time to time is or may be chargeable (by reason of an
election of the Landlord or otherwise) in respect of the rents reserved by this Lease and any
other sums payable under this Lease;
	 
	(c)	 	without prejudice to any other right or remedy of the Landlord if any moneys payable by the
Tenant to the Landlord under this Lease shall be paid late to

Page 25

 

	 	 	pay on demand to the Landlord interest thereon at a rate equal to three per centum (3%)
above the National Westminster Bank plc base rate from time to time such interest to be
calculated daily from the date when such moneys were due until the date such moneys are
paid to the Landlord (both dates inclusive);
	 
	(d)	 	to bear pay and discharge all water and general rates and other outgoings levies and
contributions whatsoever which are now or may during the Term be charged or imposed upon the
whole or part of the Premises or upon or payable by the owner or occupier except any payable
by the Landlord on the receipt of Rent or a dealing by the Landlord with its interest in the
Landlord’s Premises and in the absence of direct assessment on the Premises or the Tenant then
so far as the same is not comprised in the Landlord’s Expenses to pay to the Landlord on
demand a fair proportion of them (determined by the Landlord acting reasonably);
	 
	(e)	 	to pay for 30% of all electricity gas water and other services (other than telephone) and all
charges in respect of the Landlord’s Premises (including in all cases for the avoidance of
doubt any taxes chargeable on such amounts) and to observe all regulations and requirements of
the supply authorities;
	 
	(f)	 	to pay for all telephone charges attributable to the Tenant or persons under its control or
invitees (including in all cases for the avoidance of doubt any taxes chargeable on such
amounts) and to observe all regulations and requirements of the supply authorities;
	 
	(g)	 	if the Premises are destroyed by an Insured Risk to pay any applicable excess and any amounts
that shall not be recovered from the insurers by reason of the act or default of the Tenant or
a person under its control or any invitee;
	 
	(h)	 	to keep the Premises in a clean and tidy and tenantable condition and at the expiration or
sooner determination of the Term to yield up the Premises with vacant possession in no worse
state than as at the date of this Lease as evidenced by a schedule of condition attached
hereto (damage by Insured Risks excepted save to the extent any amount is not recoverable by
reason of the act or default of the Tenant or persons under its control or its invitees);
	 
	(i)	 	not to make any alterations or additions to the Premises without the consent of the Landlord
(such consent not to be unreasonably withheld or delayed) and to remove any alterations making
good any damage caused at the expiry of the Term or (in the case of unauthorised alterations)
on demand to the Landlord’s reasonable satisfaction;
	 
	(j)	 	not to hold on trust for another charge assign underlet or otherwise part with or share
possession or part with or share occupation of the whole or part of the Premises except that
the Tenant may share occupation with another company in its group (within the meaning of
section 42 of the Landlord and Tenant Act 1954) provided that the Landlord is notified in
writing as soon as reasonably practicable after such sharing of occupation has commenced;

Page 26

 

	(k)	 	from time to time during and at the expiry of the Term to make good to the reasonable
satisfaction of the Landlord all physical damage to the Premises which may be caused or
occasioned by the removal of any of the Tenant’s IT systems trade fixtures or fittings or
alterations from the Premises or otherwise;
	 
	(l)	 	to comply with all statutory requirements (including planning legislation) and requirements
of the insurers and supply authorities and not to apply for or implement any planning
permission nor to invalidate any insurance policy or do any thing which would increase the
insurance premiums;
	 
	(m)	 	to permit the Landlord and all persons authorised by it to enter the Premises for the
purposes set out in Part B of The Schedule ;
	 
	(n)	 	to give a copy to the Landlord as soon as practicable of any notice received by the Tenant
relating to the Premises or its use;
	 
	(o)	 	to perform and observe all the covenants conditions and provisions affecting the Landlord’s
Premises including the matters referred to in title number WSX17055 insofar as they relate to
the Premises are still subsisting and are capable of being enforced;
	 
	(p)	 	to indemnify and keep indemnified the Landlord against all actions proceedings claims costs
expenses and demands in consequence of or arising out of the breach of any of the Tenant’s
covenants in this Lease; and
	 
	(q)	 	to use the Premises only in connection with the Business

4. LANDLORD’S COVENANTS

The Landlord COVENANTS with the Tenant:

	(a)	 	that the Tenant paying the rents reserved by this Lease and performing and observing the
covenants conditions and agreements on the part of the Tenant contained in this Lease shall
peaceably hold and enjoy the Premises without any interruption by the Landlord or any person
lawfully claiming through under or in trust for the Landlord;
	 
	(b)	 	to use reasonable endeavours to keep the Common Parts in tenantable condition and service
media in working order;
	 
	(c)	 	to insure the Landlord’s Premises against the Insured Risks for the full cost of
reinstatement thereof;
	 
	(d)	 	to reinstate the Landlord’s Premises in a good and workmanlike manner as soon as reasonably
practicable following receipt of all insurance monies for such damage or destruction by an
Insured Risk save where all or part of the insurance monies are not recoverable by reason of
an act default or omission of the Tenant or persons under its control or invitees in which
event the Tenant shall pay to the Landlord such unrecoverable insurance monies on written
demand.

Page 27

 

5. PROVISOS

5.1 This Lease is made on the condition that if:

	(a)	 	the rents or any other sum due under this Lease shall be in arrear for 21 days (whether
formally demanded or not); or
	 
	(b)	 	the Tenant shall fail to observe or perform any of its material covenants or conditions in
this Lease; or
	 
	(c)	 	the Tenant goes into liquidation or an administrator or a receiver (including any
administrative receiver) is appointed over the whole or part of the property assets or
undertaking of the Tenant; or
	 
	(d)	 	the Tenant is struck off the Register of Companies or is dissolved or otherwise ceases to
exist under the laws of the country or state of its incorporation;

the Landlord may forfeit this Lease but without prejudice to any other remedy of the Landlord in
respect of any antecedent breach of any of the covenants or conditions contained in this Lease.

5.2 Nothing in this Lease shall operate expressly or impliedly to confer upon or grant to the
Tenant any easement right or privilege other than those expressly granted by this Lease.

5.3 If the Tenant wishes to determine this Lease and shall give to the Landlord not less than one
month’s notice in writing expiring at any time during the Term then upon the expiry of such notice
the Term shall immediately cease and determine but without prejudice to the respective rights of
either party in respect of any antecedent claim or breach of covenant.

5.4 Nothing in this Lease shall imply or be deemed to be a warranty that the use of the Premises
for the purposes specified in clause 3(5) is or may be in accordance with planning legislation now
or from time to time in force.

6. EXCLUSION OF SECTIONS 24-28 LANDLORD AND TENANT ACT 1954

6.1 The Tenant hereby confirms that before it became contractually bound to enter into the tenancy
created by this Lease:

	(a)	 	The Landlord served on the Tenant a notice dated                                           2006 in relation to the tenancy
created by this Lease (the Notice) in a form complying with the requirements of Schedule 1 to
the Regulatory Reform (Business Tenancies) (England and Wales) Order 2003 (the Order).
	 
	(b)	 	The Tenant, or a person duly authorised by the Tenant, in relation to the Notice made a
statutory declaration (the Declaration) dated                                           2006 in a form complying with the
requirements of Schedule 2 of the Order.

Page 28

 

6.2 The Tenant further confirms that, where the Declaration was made by a person other than the
Tenant, the declarant was duly authorised by the Tenant to make the Declaration on the Tenant’s
behalf.

6.3 The Landlord and the Tenant agree to exclude the provisions of section 24 to 28 (inclusive) of
the Landlord and Tenant Act 1954 in relation to the tenancy created by this Lease.

7. RECORD OF NEW TENANCY

The tenancy created by this Lease is a new tenancy within the meaning of section 1(3) of the
Landlord and Tenant (Covenants) Act 1995.

8. THIRD PARTY RIGHTS

A person who is not a party to this Lease shall have no right under the Contracts (Rights of Third
Parties) Act 1999 to enforce any of its terms.

EXECUTED AS A DEED and delivered on the date inserted on page 1

Page 29

 

SCHEDULE 13

PART A

RIGHTS GRANTED

The following rights (in common with the Landlord and all other persons now or hereafter granted
the like rights):

1. Access to and egress from the Premises on foot only and during such hours as the Landlord
(acting reasonably) shall determine over such parts of the Common Parts (and if appropriate for
escape in case of emergency over other parts of the Landlord’s Premises) as the Landlord shall from
time to time notify to the Tenant

2. To use half of the car parking spaces in the car park of and any service area within the
Landlord’s Premises from time to time designated by the Landlord.

3. To use such service media as serve the Premises as are necessary for its use and enjoyment or as
shall from time to time be designated by the Landlord.

4. To use such toilets at the Landlord’s Premises as the Landlord shall reasonably designate.

5. To use the staff canteen common-room and IT-room during usual business hours.

PART B

EXCEPTIONS AND RESERVATIONS

1. The free and uninterrupted passage of water electricity soil telecommunications and other
services through service media appliances and apparatus now or hereafter in on or passing through
the Premises.

2. At all reasonable times upon reasonable notice (where practicable) with or without workmen the
right to enter and remain upon the Premises with all necessary tools appliances and materials (the
person so entering making good all physical damage done thereby to the Premises) for the purpose of
any matter or thing connected with the management maintenance alteration repair or renewal of the
Landlord’s Premises or any fixture and fittings or service media from time to time therein or any
adjoining or neighbouring property or for any other purpose mentioned in this Lease.

3. The right in case of fire or other emergency to pass and repass through and over the Premises.

Page 30

 

	 	 	 	 	 	 	 	 	 
	EXECUTED as a DEED

	 	 	)	 	 	 	 	 
	by ROCHESTER MEDICAL LIMITED

	 	 	)	 	 	 	 	 
	acting by two directors/a

	 	 	)	 	 	 	 	 
	director and the secretary:

	 	 	)	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	EXECUTED as a DEED

	 	 	)	 	 	 	 	 
	by MENTOR MEDICAL LIMITED

	 	 	)	 	 	 	 	 
	acting by two directors/a

	 	 	)	 	 	 	 	 
	director and the secretary:

	 	 	)	 	 	 	 	 

Page 31

 

	 	 	 	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	Name:
	 	 
	 

	 	 	 	 	 	 	 	 
	on behalf of

	 	 	)	 	 	 	 	 
	COLOPLAST A/S

	 	 	)	 	 	Signature:
	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	Name:
	 	 
	 

	 	 	 	 	 	 	 	 
	on behalf of

	 	 	)	 	 	 	 	 
	COLOPLAST LIMITED

	 	 	)	 	 	Signature:
	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	Name:
	 	 
	 

	 	 	 	 	 	 	 	 
	on behalf of

	 	 	)	 	 	 	 	 
	MENTOR MEDICAL LIMITED

	 	 	)	 	 	Signature:
	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	Name
	 	 
	 

	 	 	 	 	 	 	 	 
	on behalf of

	 	 	)	 	 	 	 	 
	ROCHESTER MEDICAL

	 	 	)	 	 	 	 	 
	CORPORATION

	 	 	)	 	 	Signature
	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	SIGNED by

	 	 	)	 	 	Name
	 	 
	 

	 	 	 	 	 	 	 	 
	on behalf of

	 	 	)	 	 	 	 	 
	ROCHESTER MEDICAL

	 	 	)	 	 	 	 	 
	LIMITED

	 	 	)	 	 	Signature
	 	 
	 

	 	 	 	 	 	 	 	 

Page 32

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