Document:

Exhibit
10.11

 

ENPATH
MEDICAL, INC.

1999
NON-EMPLOYEE DIRECTOR AND MEDICAL ADVISORY BOARD STOCK OPTION

 

THIS AGREEMENT is by and between Enpath Medical, Inc. (“Company”)
and          (“Optionee”).

 

RECITALS:

 

Pursuant to the Company’s 1999 Non-Employee Director
and Medical Advisory Board Stock Option Plan (“Plan”), adopted in July 1999,
for the purpose of encouraging ownership of shares of the Common Stock of the
Company (“Common Shares”) by Non-Employee Directors and Medical Advisory Board
Members (as defined in the Plan), the Company desires to afford Optionee an
option to purchase Common Shares.  This
option does not qualify as an incentive stock option under Section 422A of
the Internal Revenue Code of 1986, as amended.

 

NOW, THEREFORE, in consideration of the promises and
covenants contained herein, Company and Optionee hereby agree as follows:

 

1.                                       OPTION. 
Company grants to Optionee on                  (“Date
of Grant”) the option (“Option”) to purchase an aggregate of          of
the Common Shares (“Shares”) of the Company upon the terms and conditions set
forth herein and in the Plan.

 

2.                                       OPTION PRICE. 
Subject to any adjustments pursuant to the provisions of Section 8,
the purchase price of the Shares subject to the Option (“Option Price”) is                per
share, which represents the fair market value on the Date of Grant.

 

3.                                       TIME OF EXERCISE.  This
Option will become exercisable, in accordance with the vesting schedule set
forth in Section 4, any time prior to                 
(“Exercise Period”), unless terminated prior thereto pursuant to the provisions
of Section 7.   The Option will
become void and expire as to all unexercised Shares at 12:00 a.m. (midnight,
Central Standard Time) at the end of such Exercise Period.

 

4.                                       VESTING OF OPTIONS.  This
Option vests in amounts of one-third of the Shares on the date of grant and
one-third upon each subsequent annual re-election to the Board.  In the event the Company or the stockholders
of the Company enter into an agreement to dispose of all or substantially all
of the assets or stock of the Company by means of a sale, merger,
reorganization, liquidation or otherwise, this Option shall become immediately
exercisable with respect to the full number of Shares.

 

5.                                       EXERCISE OF OPTION - MANNER. 
Subject to the terms and conditions hereof, the Option may be exercised
by written notice to the Company at its offices in Plymouth, Minnesota, signed
by the Optionee (or Optionee’s heirs, legal representative(s) or
guardian).  Notice of exercise of the
Option will be accompanied by payment in full of the Option Price of the Shares
as to which the Option is to be exercised and the Company will issue and
deliver a certificate or certificates representing such Shares as soon as
practicable after such notice and payment are received.  Payment of such Option Price will be made by
a check payable to the order of the Company.

 

6.                                       DELIVERY OF STOCK.  The
exercise of the Option shall be conditioned upon the receipt from Optionee (or
Optionee’s heirs, legal representative(s) or guardian) of a representation
that, at the time of such exercise, it is the intent of such person to acquire
the Shares for investment and not with a view to distribution, or the receipt
of an opinion of counsel satisfactory to the Company that the issuance of
shares in conjunction with the exercise of this Option would not constitute a
violation by the Optionee or the Company of any applicable law or regulation of
any governmental authority; provided, however, that the receipt of this
representation will not be required upon exercise of the Option in the event,
at the time of such exercise, the Shares subject to the Option are covered by
an effective registration statement under the Securities Act of 1933, as
amended.  The certificates for
unregistered shares issued for investment will be restricted by the Company as
to transfer unless the Company receives an opinion of counsel satisfactory to
the Company that such restriction is not necessary.

 

 

7.                                       TERMINATION AS DIRECTOR.

 

(a)                                  The right to exercise this Option will be suspended upon formal written
notice to the Optionee by the Chief Executive Officer of the Company of his or
her belief that an act of misconduct has been committed by Optionee.  If the Board (excluding Optionee) determines
that such misconduct has occurred, then neither the Optionee nor Optionee’s
estate shall be entitled to exercise any Option whatsoever.  Optionee shall be notified of such finding in
writing.  “Misconduct” is defined in
Paragraph 12 of the Plan.

 

(b)                                 If Optionee ceases to be a director of the Company, the Option may, within
one year after Optionee’s death or termination as a director, be exercised to
the extent that Optionee was entitled to exercise the Option on the date of
Optionee’s termination, by the Optionee or the person or persons to whom
Optionee’s rights under the Option pass by will or the applicable laws of
descent or distribution, or Optionee’s personal representative, as may be
appropriate, but in no case after the expiration of the term of this Option.

 

8.                                       ADJUSTMENTS UPON CHANGES IN
CAPITALIZATION.  In the event of a merger, consolidation,
reorganization, stock dividend, stock split, or any other change in corporate
structure or capitalization affecting the Company’s Common Shares, appropriate
adjustment shall be made in the maximum number of shares available under the
Plan or to any one individual and in the number, kind, option, price, etc. of
shares subject to options granted under the Plan.

 

9.                                       NON-TRANSFERABILITY OF
OPTION.  The Option granted under this Agreement may
not be sold, pledged, assigned or transferred by the Optionee except by will or
the laws of descent and distribution. 
Any attempt to do so will void the Option.  The Option is exercisable during an Optionee’s
lifetime only by the Optionee or by the Optionee’s guardian.

 

10.                                 WITHHOLDING TAXES.  The
obligation to comply with related federal, state and local taxes is the
Optionee’s.

 

11.                                 RIGHTS AS A SHAREHOLDER.  No
rights of a shareholder of the Company will attach to Optionee with respect to any
of the Shares until this Option is duly exercised as to such Shares and the
person has become holder of record of the Shares.  No adjustments will be made for cash
dividends or other distributions or other rights as to which there is a record
date preceding the date such person becomes the holder of record of such
Shares.

 

12.                                 LIMITATION OF LIABILITY. 
Nothing in this Agreement shall confer on any Optionee any right to
continue as a director of the Company or affect, in any way, the right of the
Company to terminate his or her services as a director at any time.

 

13.                                 GOVERNING LAW.  This
Agreement will be construed in accordance with and governed by the laws of the
State of Minnesota.

 

IN WITNESS WHEREOF, Company and Optionee have executed this
Agreement as of the day and year first above written.

 

	
   

  	
  ENPATH MEDICAL, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
  Dated:

  	
   

  	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Its: President and Chief Executive Officer

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  OptioneeExhibit
10.12.4

 

February 9, 2005

 

 

Enpath Medical, Inc.

Attn: Mike Erdmann

15301 Highway 55 West

Minneapolis, MN 55447

 

Dear Mr.
Erdmann:

 

Pursuant to the provisions of Section 5.1(f)
of the Revolving Credit And Term Loan Agreement (the “Loan
Agreement”) dated October 17, 2003, the Borrower agreed it would maintain
Tangible Net Worth of not less than $10,000,000 at December 31, 2004.

 

Pursuant to the provisions of Section 5.1(g)
of the Loan Agreement and as amended via Letter Amendment No. 1 dated March 18,
2004 and Letter Amendment No. 2 dated July 19, 2004, the Borrower agreed
it would maintain a Senior Funded Debt Ratio to not be greater than 1.25 to 1.0
for the period ending December 31, 2004.

 

The Borrower’s financial statements for the
period ending 12/31/04 indicate the Borrower violated the aforementioned
Tangible Net Worth and Senior Funded Debt Ratio covenants.  The Borrower has requested waiver of such
covenant violations.

 

M&I Marshall & Ilsley Bank (the “Bank”)
hereby notifies the Borrower that the Bank agrees to waive, and by issuance of
this letter do hereby waive, the aforementioned covenant violations.  This waiver is solely for the requirements
described above and shall not constitute a waiver or amendment by the Bank of
any other covenant or term under the Loan Agreement.  The Loan Agreement remains
in full force and effect, except as specifically waived by the terms herein.

 

Sincerely,

	
  /s/ Steve Nolander

  	
   

  

Commercial Banking OfficerExhibit
10.17.1

 

AMENDMENT TO

ASSET PURCHASE AGREEMENT

 

This Amendment to Asset Purchase Agreement
(the “Amendment”) is entered into as of this 14th day of March, 2005
among Enpath Medical Inc., a Minnesota corporation formerly known as Medamicus,
Inc. (“Buyer”), Enpath Lead Technologies, Inc., a Minnesota corporation
formerly known as Medacquisition, Inc. and a wholly-owned subsidiary of Buyer (“Acquisition
Sub”), BIOMEC Inc., an Ohio corporation (“Parent”)and BIOMEC Technology Inc., a
Minnesota corporation formerly known as BIOMEC Cardiovascular Inc. (“Subsidiary”).

 

WHEREAS, the Buyer, Acquisition Sub, Parent,
and Subsidiary have previously entered into that certain Asset Purchase
Agreement dated as of July 21, 2003 (the “Agreement”), with respect to the
sale and purchase of the Assets and the assumption of the Assumed Liabilities
of the Business;

 

WHEREAS, the Agreement provided for a 2004
contingency payment based upon the level of Proprietary Sales payable in cash
and shares of Buyer, in such allocation as Buyer shall determine, provided that
the cash payment is at least equal to the lesser of (a) 25% of the total 2004
Contingent Payment or (b) $2.0 million;

 

WHEREAS, the
parties desire to enter into this amendment for purposes of amending and
restating certain provisions of the Agreement.

 

NOW THEREFORE, the parties, for good and
other valuable consideration, the receipt of which is hereby acknowledged,
covenant and agree as follows:

 

1.                                       Definitions.  Capitalized terms used but not defined in
this Amendment shall have the meaning ascribed to them in the Agreement.

 

2.                                       Section 2.4.  Section 2.4 is hereby amended and
restated in its entirety as follows:

 

2004 Contingent Payment.  Buyer
will make a payment to Subsidiary equal to the difference of the Proprietary
Sales (as defined in Section 2.5.1)
of the Acquisition Sub in the 2004 calendar year minus the combined Proprietary
Sales of Subsidiary and Acquisition Sub in the 2003 calendar year (as it may be
increased pursuant to the immediately following sentence, the “2004 Contingent Payment”.  The amount of the 2004 Contingent Payment
will be doubled if, on or before December 31, 2004, Acquisition Sub
executes a supply agreement with one or more of the companies listed on Schedule 2.4 having the minimum terms
listed on Schedule 2.4.  Buyer will pay the 2004 Contingent Payment on
or before March 31, 2005 in cash via wire transfer to a bank designated by
Subsidiary or in shares of Buyer Common Stock, which allocation shall be
determined solely by Buyer; provided
that the cash portion of the payment must be at least the lesser of (the “Payment Allocation”) (a) 25% of the
total 2004 Contingent Payment, any stock portion of which being valued in
accordance with Section 2.5.3,
or (b) $2.0 million; provided further, however,
that notwithstanding the foregoing, the Payment Allocation may be varied upon
the written mutual agreement of all of the parties.

 

 

2.                                       Section 2.5.3.  Section 2.5.3 is hereby amended and
restated in its entirety as follows:

 

Stock Values for
Contingent Payments.  The
number of shares of Buyer Common Stock to be delivered in connection with each
Contingent Payment, if any, will be equal to the value of the stock portion of
the applicable Contingent Payment, as determined by Buyer in accordance with Section 2.3 or 2.4, as the case may be, divided by the
average closing price of Buyer Common Stock for the period of 15 trading days
preceding the date on which Buyer makes its first public announcement of its
earnings for the fiscal year immediately prior to the year in which the
Contingent Payment is payable.  Buyer
shall pay Subsidiary cash in lieu of any fractional share, equal to the
fraction times the average price of Buyer Common Stock calculated in accordance
with the immediately preceding sentence.  Notwithstanding
the foregoing, the parties may mutually agree in writing to amend the manner in
which the stock values are computed for purposes of determining the number of
shares of Buyer Common Stock to be delivered in connection with each Contingent
Payment.

 

3.                                       Section 7.6.  Section 7.6 is hereby amended and
restated in its entirety as follows:

 

Board Representation.  Simultaneous with the Closing, Buyer will
increase the size of its board of directors and appoint Trevor O. Jones,
Chairman of Parent, or his successor as Chairman of Parent, as a director of
Buyer.  Buyer will continue to nominate
and solicit proxies for re-election of the Chairman of Parent until the later
of (a) the date on which the 2004 Contingent Payment is paid (or, if no 2004
Contingent Payment is due, March 31, 2005) or (b) such time as Sellers and their affiliates hold less than 5% in
the aggregate of the outstanding voting power of Buyer.  The board of directors of Buyer will take
appropriate action to elect the Chairman of Parent as Vice Chairman of the
board of directors of Buyer.  For purposes of this Section 7.6, the parties
shall cooperate and negotiate in good faith with respect to the designation of
the affiliates of Seller and the process for determining the ownership interests
of such affiliates.

 

[Remainder of this Page
Intentionally Left Blank].

 

 

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

 

 

	
   

  	
  ENPATH MEDICAL, INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   James D. Hartman

  	
   

  
	
   

  	
  Name:

  	
   James D. Hartman

  	
   

  
	
   

  	
  Title:

  	
    CEO

  	
   

  
	
   

  	
   

  
	
   

  	
  ENPATH LEAD TECHNOLOGIES, INC.

  
	
   

  	
  By:

  	
   

  	
   James D. Hartman

  	
   

  
	
   

  	
  Name:

  	
   James D. Hartman

  	
   

  
	
   

  	
  Title:

  	
    CEO

  	
   

  
	
   

  	
   

  
	
   

  	
  BIOMEC TECHNOLOGY INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  Trevor O. Jones

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Trevor O. Jones

  	
   

  
	
   

  	
  Title:

  	
   

  	
  Chairman

  	
   

  
	
   

  	
   

  
	
   

  	
  BIOMEC INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  Trevor O. Jones

  	
   

  
	
   

  	
  Name:

  	
   

  	
  Trevor O. Jones

  	
   

  
	
   

  	
  Title:

  	
   

  	
  Chairman

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