Document:

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                              EMPLOYMENT AGREEMENT

     AGREEMENT by and between PEROT SYSTEMS CORPORATION, a Delaware corporation
(the "Company"), and JEFF RENZI ("Associate"), dated as of the 14th day of March
2003.

     1. Employment Period. Associate's employment hereunder shall commence on
April 7, 2003 (the "Commencement Date") and shall continue until Associate's
employment terminates pursuant to this Agreement (the "Employment Period").

     2. Position and Duties.

          (a) Associate agrees to serve as the Vice President for Worldwide
     Sales and Marketing for the Company and perform such duties, which shall
     not be inconsistent with his position as Vice President , as are assigned
     to him from time to time.

          (b) During the Employment Period, and excluding any periods of
     vacation, holiday, personal leave and sick leave to which Associate is
     entitled, the Associate agrees to serve the Company faithfully and to the
     best of his ability and to devote the Associate's full business time,
     attention and efforts to the business and affairs of the Company.

          (c) Associate's primary office shall be located in Perot Systems
     offices in Plano, Texas.

     3. Compensation.

          (a) Base Salary. As his initial base compensation for all services he
     renders under this Agreement, Associate shall receive an annualized base
     salary ("Annual Base Salary") of $250,000. The Annual Base Salary shall be
     paid in accordance with the Company's normal payroll procedures and
     practices. The Annual Base Salary shall be reviewed, at least annually, and
     adjusted (upward only) in the sole discretion of the Company.

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          (b) Incentive Compensation. Associate shall be eligible to participate
     in the annual incentive plan according to applicable corporate and/or
     individual targets and goals. Such bonus shall nevertheless be payable in
     the sole discretion of the Company and shall be paid only if Associate is
     employed on the payment date. Associate's target incentive compensation
     shall be not less than one hundred percent (100%) of the Annual Base Salary
     ("Target Incentive"). The maximum amount of any annual incentive plan award
     shall be two times the Base Salary.

          (c) Signing Bonus. Associate will receive a signing bonus of forty
     thousand dollars ($40,000) paid on or before 30 days after the Commencement
     Date.

          (d) Guaranteed Bonus. For the first calendar year the guaranteed
     minimum bonus shall be seventy-five thousand dollars ($75,000) and such sum
     shall be paid at the same time as bonuses are normally paid to senior
     executives, provided Associate is employed by the Company on the date of
     payment.

          (e) Benefit Plans. During the Employment Period, Associate shall be
     entitled to participate in the employee benefits and perquisites offered
     generally by the Company.

          (f) Stock Options. As a long-term incentive, the Company will grant to
     Associate an option, vesting over five years, to purchase 75,000 shares of
     the Company's common stock with an exercise price equal to the fair market
     value of the stock on the Commencement Date pursuant to and in accordance
     with the terms of the Company's standard stock option agreement under the
     Company's 2001 Long-Term Incentive Plan (the "Plan", copies of the Plan and
     form agreement are attached as Exhibit A).

          (g) In each of the first two years following the year of the
     Commencement Date, the Company anticipates that it will award Associate, if
     Associate meets the criteria established by the Company, an additional
     stock option ("Merit Option") to purchase a total of 10,000 shares of
     Company stock, but whether the Merit Option is awarded is in the sole
     discretion of the Company. The Merit Option would vest over 5 years and
     will

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     be pursuant to and in accordance with a stock option agreement as
     determined by the Company and the Plan or a successor plan.

          (h) Expenses. During the Employment Period, Associate shall be
     entitled to reimbursement for all reasonable business expenses he incurs in
     carrying out his duties under this Agreement in accordance with the
     policies and practices of the Company.

     4. Termination of Employment. Associate's employment under this Agreement
may be terminated during the Employment Period as described in this Section 4.

          (a) Death or Disability. Associate's employment shall terminate
     automatically upon Associate's death. Associate's employment shall
     terminate for "Disability" if Associate, due to illness or physical or
     mental incapacity, is unable to perform the duties of Associate's position
     under this Agreement for a period of six (6) consecutive months.

          (b) Termination By the Company. The Company may terminate Associate's
     employment at any time for Cause or without Cause. For purposes of this
     Agreement, "Cause" shall mean Associate's (i) conviction of or plea of nolo
     contendre to a felony or to any crime involving moral turpitude; (ii)
     willful misconduct that causes, or creates a significant risk of,
     substantial injury to the Company; (iii) repeated failure to undertake
     communicated directives on substantial business matters issued through
     written instruction to do so; and (iv) any willful breach of this Agreement
     that causes or creates a significant risk of substantial injury to the
     Company.

          (c) Termination By the Associate. Associate may terminate his
     employment for Good Reason or without Good Reason. "Good Reason" will exist
     in the event that the Company, without curing after notice provided in the
     next sentence or without Associate's written consent: (i) institutes a
     material adverse change in Associate's title or in the duties assigned to
     Associate; (ii) requires Associate to relocate his principal residence to a
     location other than the Dallas metropolitan area; (iii) reduces the amount
     of

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     Associate's salary; or (iv) substantially fails to comply with the
     provisions of this Agreement. Associate shall have Good Reason to terminate
     his employment if (i) within forty-five (45) days following Associate's
     actual knowledge of the event which Associate determines constitutes Good
     Reason, he notifies the Company in writing that he has determined a Good
     Reason exists and specifies the event creating Good Reason, and (ii)
     following receipt of such notice, the Company fails to remedy such event
     within forty-five (45) days.

          (d) Date of Termination. "Date of Termination" means (i) if
     Associate's employment is terminated by the Company (other than for death
     or Disability) or by Associate the day after the mailing or otherwise
     providing the notice of termination or (ii) if Associate's employment
     terminates by reason of death, the date of death of Associate, or if by
     reason of Disability, the date of the determination of Disability by the
     Company as set forth in Section 4(a).

     5. Compensation and Payments upon Termination.

          (a) Without Cause; Good Reason. Subject to Section 6, if, during the
     Employment Period, the Company terminates Associate's employment without
     Cause, or if Associate terminates employment for Good Reason, or if
     Associate's employment is terminated by Disability, then the Associate
     shall be entitled to receive the following severance benefits for
     termination occurring during the first twelve (12) months of this
     agreement:

               (i) payment of an amount which is 50% of the sum of the
          Associate's then Annual Base Salary for the current fiscal year, less
          all required withholding and deductions, to be paid in one lump cash
          sum; and

               (ii) payment of the Associate's Annual Base Salary earned through
          the Date of Termination, and any Incentive Plan incentive earned and
          due, but not yet paid, less all required withholding and deductions,
          to be pain in one lump cash sum.

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          The Associate shall also receive for such termination other benefits
     and perquisites to be paid or provided to the Associate in accordance with
     generally applicable plans and programs of the Company.

          (b) Cause; Without Good Reason. If Associate's employment is
     terminated by the Company for Cause or Associate voluntarily terminates his
     employment without Good Reason, or Associate dies while an employee, the
     Company shall pay to Associate (or his estate) any Annual Base Salary
     earned through the Date of Termination. The Company shall have no further
     obligations under this Agreement.

     6. Confidential Information. Associate acknowledges that Associate will
receive confidential information and training from Company, its affiliates,
customers and suppliers because of Associate's relationship of mutual confidence
and trust. This confidential information will include all business, financial
and technical information, including information that Associate develops,
relating to the business activities, products or services of Company, its
customers or suppliers, whether or not such information is identified as
confidential. Confidential information does not include any information that
Company approves for unrestricted public disclosure or is otherwise in the
public domain. Associate agrees not to disclose or use, and will take reasonable
precautions to prevent the disclosure or use of, any of this confidential
information, except in the good faith performance of Associate's duties, or as
required by law, and Associate agrees to return all confidential information to
Company at its request.

     7. Proprietary Rights. All copyrights, patent rights and other intellectual
property rights in and to all works of authorship, including software programs,
and inventions that Associate produces, working alone or jointly with others,
while employed by Company, together with all related ideas, know-how and
techniques will be owned solely by Company, except for

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works of authorship or inventions that both (i) Associate develops on
Associate's own time without using Company's resources or confidential
information, and (ii) does not relate to Associate's work for the Company or the
Company's business or actual or demonstrably anticipated research or
development. Associate agrees to disclose and assign to the Company, and waive
(to the maximum extent permitted by law) all moral or similar rights in, all
such works of authorship and inventions, and will sign, without additional
compensation, all necessary documents and otherwise assist the Company, at its
expense, to register and enforce all copyrights, patents and other intellectual
property rights. Associate appoints the Company as Associate's attorney-in-fact
for the sole purpose of executing all necessary documents relating to the
registration or enforcement of the Company's copyrights, patents and other
intellectual property rights. The Company can waive its rights in any work of
authorship or invention only through a written instrument signed by an officer
of the Company after Associate has fully disclosed in writing the existence and
nature of that work of authorship or invention.

     8. No Competition. Because of Associate's access to Confidential
Information, for one year after Associate's employment by the Company ends for
any reason, Associate agrees not to solicit or perform services as an employee,
independent contractor or otherwise, for any person (including any affiliates or
subsidiaries of that person) that is or was a customer or prospect of Company
during the one (1) year period prior to that date if Associate solicited
business from or performed services for that customer or prospect while employed
by Company. If a court finds this paragraph to be unreasonable, then this
paragraph will be amended to provide the broadest scope of protection to Company
that such court will allow.

     9. No Solicitation. For one year after Associate's employment with the
Company ends, for any reason, Associate agrees not to recruit, hire or help
anyone to recruit or hire anyone who was an employee of the Company or any of
its customers within the six months before

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Associate's employment by the Company ended. The parties agree that this
paragraph shall not be violated by the general advertising for employees or the
hiring of employees by institutions with which Associate is employed so long as
he is not involved in recruiting, soliciting or the inducing of any employee to
leave the Company and joining any entity to which Employee is employed. If a
court finds this paragraph to be unreasonable, then this paragraph will be
amended to provide the broadest scope of protection to Company that such court
will allow.

     10. Outside Activities. Associate shall not serve on any Board of Directors
(other than a non-profit Board) without obtaining the consent of the Company.
Associate represents to the best of his knowledge and belief that the
performance of Associate's duties will not violate any obligations that
Associate has to any former employer or other person.

     11. Policies. As an employee of the Employer, Associate agrees to read,
review, and comply with all written policies of Company, including its Standards
and Ethical Principles and all other policies published on The Real Time
Associate Network (TRAIN).

     12. Notice. Any notice, demand or request required or permitted to be given
or made under this Agreement will be in writing and will be deemed given or made
when delivered in person, when sent by United States registered or certified
mail, or postage prepaid, or when telecopied to a party at its address or
telecopy number specified below:

        If to the Company:

        Perot Systems Corporation
        Attention: Chief Executive Officer
        2300 Plano Parkway
        Plano, Texas 75075

        Telecopy number:  (972) 577-6109

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        With a copy to:

        Perot Systems Corporation
        Attention:  General Counsel
        2300 Plano Parkway
        Plano, Texas 75075
        Telecopy number: (972) 577-6085

        If to Employee:

        Jeff Renzi

        ----------

        ----------

     The parties to this Agreement may change their addresses for notice in the
manner provided above.

     13. RETURN OF PROPERTY/OFFSETS. AT THE END OF ASSOCIATE'S EMPLOYMENT,
ASSOCIATE WILL PROMPTLY RETURN ALL THE COMPANY'S PROPERTY AND CONFIDENTIAL
INFORMATION TO THE COMPANY. ASSOCIATE AUTHORIZES COMPANY TO OFFSET, TO THE
MAXIMUM EXTENT PERMITTED BY LAW, ANY AMOUNTS THAT ASSOCIATE OWES COMPANY
AGAINST, AND TO WITHHOLD SUCH AMOUNTS FROM, ANY AMOUNTS, INCLUDING SALARY,
BONUSES, COMMISSIONS AND EXPENSE REIMBURSEMENTS, COMPANY OWES ASSOCIATE.

     14. Severability. The paragraphs and provisions of this Agreement shall be
considered severable and the invalidity of all, or any paragraph or provision,
shall not render invalid or impair the binding nature and effect of any other
paragraph or provision contained herein. In addition, it is agreed that any
court of competent jurisdiction may modify any unlawful provision of this
Agreement in order to make the provision valid, reasonable, and enforceable.

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     15. Counterparts. This Agreement may be executed in counterparts, all of
which together will constitute one agreement binding on all the parties hereto,
notwithstanding that all such parties are not signatories to the original or the
same counterpart.

     16. Inventions; Developments. Associate agrees to notify the Company of any
discovery, invention, innovation, or improvement which is related to the
Business (collectively called "Developments") conceived or developed by
Associate during the term of the Associate's employment. All Developments,
including but not limited to, all written documents pertaining thereto, will be
the exclusive property of the Company, as the case may be, and will be
considered Confidential Information subject to the terms of this Agreement.
Associate agrees that when appropriate, and upon written request of the Company,
as the case may be, Associate will acknowledge that Developments are "works for
hire" and will file for patents or copyrights with regard to any or all
Developments and will sign documentation necessary to evidence ownership of
Developments in the Company or the Parent, as the case may be.

     17. ELECTRONIC FUNDS TRANSFERS. ASSOCIATE AGREES TO DESIGNATE A CHECKING OR
OTHER BANK ACCOUNT TO ALLOW COMPANY AND ITS AFFILIATES AND AGENTS, AND TO
EXECUTE SUCH DOCUMENTS AS MAY BE NECESSARY TO AUTHORIZE COMPANY AND ITS
AFFILIATES AND AGENTS, TO INITIATE (a) DIRECT DEPOSITS (CREDIT ENTRIES) TO SUCH
ACCOUNT FOR ALL PAYROLL, EXPENSE REIMBURSEMENT AND OTHER AMOUNTS PAYABLE TO
ASSOCIATE BY THE COMPANY, AND (b) WITHDRAWALS (DEBIT ENTRIES) FROM SUCH ACCOUNT
TO CORRECT ERRONEOUS CREDIT ENTRIES OR TO COLLECT AMOUNTS PAYABLE BY ASSOCIATE
TO COMPANY.

     18. ELECTRONIC NOTICES AND SIGNATURES. ASSOCIATE AGREES TO RECEIVE DELIVERY
OF ALL

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FUTURE NOTICES AND OTHER COMMUNICATIONS RELATING TO ASSOCIATE'S EMPLOYMENT AND
BENEFITS VIA E-MAIL AT THE ADDRESS ASSIGNED TO ASSOCIATE BY COMPANY, THROUGH
PUBLICATION ON TRAIN OR IN A LOCATION TO WHICH ASSOCIATE HAS ACCESS AND IS
DIRECTED BY E-MAIL OR BY COMPARABLE ELECTRONIC MEANS. ASSOCIATE AUTHORIZES THE
COMPANY AND ITS AFFILIATES (a) TO ACCEPT ASSOCIATE'S ELECTRONIC SIGNATURE AS
BINDING AND FINAL ON ALL FORMS OR AGREEMENTS RELATING TO ASSOCIATE'S EMPLOYMENT,
ASSOCIATE'S HEALTH, WELFARE OR INSURANCE BENEFITS, ASSOCIATE'S EXPENSE REPORTS,
AND ASSOCIATE'S PARTICIPATION IN ANY STOCK OPTION, STOCK PURCHASE OR OTHER
EQUITY INCENTIVE PLAN (INCLUDING ANY STOCK OPTION AGREEMENT AND ANY ENROLLMENT
OR WITHDRAWAL FORMS), AND (b) TO PROCESS ALL EMPLOYMENT-RELATED TRANSACTIONS OR
ANY OTHER ELECTRONIC SUBMISSION INITIATED USING AN ELECTRONIC SIGNATURE PROCESS.
ASSOCIATE'S ELECTRONIC SIGNATURE MAY BE REPRESENTED BY ACTIVATING, THROUGH ANY
SYSTEM OR NETWORK THAT IS PROTECTED BY A PASSWORD OR OTHER INDIVIDUAL IDENTITY
SECURITY METHOD, (1) AN ELECTRONIC "PUSH-BUTTON" DISPLAYED ON TRAIN, (2) AN
INTERACTIVE VOICE RESPONSE SYSTEM, OR (3) ANY COMPARABLE CONDUCT OR ELECTRONIC
PROCESS OR MECHANISM REASONABLY OR COMMONLY UNDERSTOOD TO REPRESENT A MEANS OF
ACKNOWLEDGEMENT OR ASSENT. WITHIN 10 BUSINESS DAYS AFTER ISSUING ASSOCIATE'S
ELECTRONIC SIGNATURE ASSOCIATE MAY REQUEST AND RECEIVE FROM COMPANY A PAPER OR
ELECTRONIC CONFIRMATION THAT ASSOCIATE'S ELECTRONIC SIGNATURE HAS BEEN RECEIVED.
ASSOCIATE AGREES THAT IT IS ASSOCIATE'S RESPONSIBILITY TO USE, PROTECT AND
UPDATE ASSOCIATE'S PASSWORD OR OTHER INDIVIDUAL IDENTITY SECURITY METHOD USED
FOR ELECTRONIC SIGNATURE PURPOSES.

     19. GOVERNING LAW AND VENUE. THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS
OF THE STATE OF TEXAS WITHOUT GIVING EFFECT TO ANY RULES OF CONFLICTS OF LAW.
ANY LEGAL ACTION RELATING TO CLAIMS, INCLUDING ANY STATUTORY CLAIMS, ARISING OUT
OF OR RELATING TO ASSOCIATE'S

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EMPLOYMENT SHALL BE BROUGHT ONLY IN A COURT OF COMPETENT JURISDICTION IN DALLAS,
TEXAS, OR IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF
TEXAS. TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, THE PARTIES HERETO
SUBMIT TO THE PERSONAL JURISDICTION OF SUCH COURTS AND WAIVE ANY OBJECTION WHICH
THEY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE IN SUCH COURTS. NEITHER
PARTY WILL BE LIABLE TO THE OTHER FOR PUNITIVE DAMAGES FOR ANY SUCH CLAIMS AND
ASSOCIATE HEREBY WAIVES ANY CLAIMS AGAINST COMPANY FOR SUCH DAMAGES. TO THE
FULLEST EXTENT PERMITTED BY LAW, THE PARTIES HERETO WAIVE ANY RIGHT TO A JURY
TRIAL AND AGREE THAT ANY ISSUES BETWEEN THEM MAY BE DECIDED BY A JUDGE WITHOUT A
JURY.

     20. Continuing Obligations. Associate agrees that Associate's obligations
with respect to confidential information, proprietary rights, non-competition
and non-solicitation will continue after Associate's employment with Company
ends to the extend provided herein (one year after termination of employment).
Associate also agrees that Associate's breach of any of these obligations will
cause irreparable injury for which there are no adequate remedies at law and
that Company will be entitled to equitable relief in addition to all other
remedies that may be available.

     21. Entire Agreement. This Agreement represents the entire agreement of the
parties. It supersedes any prior discussions, promises, or agreements on these
subjects. It cannot be changed except in writing signed by an officer of the
Company and Associate.

     22. Miscellaneous. The captions of the Agreement are not part of the
provisions hereof and shall have no force or effect.

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     IN WITNESS WHEREOF, Associate has hereunto set Associate's hand and,
pursuant to the authorization of its Board of Directors, the Company has caused
this Agreement to be executed in its name on its behalf, all as of the day and
year first above written.

Perot Systems Corporation               Jeff Renzi

By: /s/ Brian T. Maloney                Signed: /s/ JEFF RENZI
    --------------------                        ---------------

Name: Brian T. Maloney
      ------------------

Date: March 26, 2003                    Date: March 14, 2003
      ------------------                      --------------

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EXHIBIT 10.19

ESCROW AGREEMENT

     THIS ESCROW AGREEMENT (this “Agreement”) dated November 25, 2002 is
entered into by and among Advanced Neuromodulation Systems, Inc., a Texas
corporation (“Parent”), Thomas E. Brust, as a duly appointed representative
(the “Representative”) of all of the shareholders of MicroNet Medical, Inc., a
Minnesota corporation (“Company”) and Computershare Trust Company, Inc. as
escrow agent (the “Escrow Agent”). Parent, the Representative and the Escrow
Agent are collectively referred to in this Agreement as the “parties.”

RECITALS

     Pursuant to that certain Agreement and Plan of Merger dated as of November
4, 2002, by and among Parent, MicroNet Acquisition, Inc., a Delaware
corporation and wholly-owned subsidiary of Parent (“Merger Sub”), Company and
certain shareholders of Company (the “Merger Agreement”), Merger Sub is merging
with and into Company (the “Merger”), with Company being the Surviving
Corporation and wholly-owned subsidiary of Parent. In accordance with the
terms of the Merger Agreement, the issued and outstanding shares of common
stock, $0.01 par value per share, of Company, other than those constituting
Dissenting Shares will be converted into the right to receive shares of common
stock, $0.05 par value, of Parent, all as set forth in the Merger Agreement.

     The Merger Agreement provides that an escrow fund comprised of shares of
Parent Common Stock to be issued to the shareholders of the Company as of the
Effective Time of the Merger (the “Company Shareholders”) will be established
to provide payment to the Company Shareholders if and when certain Milestones
are achieved as set forth in Article II of the Merger Agreement and (b)
security to Parent with respect to the potential indemnification obligations of
the Company Shareholders.

     NOW, THEREFORE, for good, valid and binding consideration, the receipt and
adequacy of which is hereby acknowledged, the parties, intending to be legally
bound by this Agreement, agree as follows:

     1.     Except as otherwise defined in this Agreement, the capitalized terms
used in this Agreement have the meanings ascribed to them in the Merger
Agreement.

     2.     Pursuant to the terms and conditions of the Merger Agreement, 89,606
Shares (having an aggregate value of $3,000,000, based on the Average Trading
Price on the Closing Date) have been issued as part of the Merger Consideration
in the names of the respective Company Shareholders, in accordance with their
pro rata ownership of Company, and have been delivered to the Escrow Agent
(together with any shares of capital stock, cash or other property, such Shares
as may be converted or exchanged after the date hereof, by stock split or
otherwise, the “Escrowed Shares”). The Escrowed Shares will be held by the
Escrow Agent upon the terms and conditions contained in this Agreement and will
be released by the Escrow Agent in accordance with this Agreement. The
Escrowed Shares and all dividends or other economic benefits (but no other
benefits, including but not limited to voting or transfer rights) associated
with the Escrowed Shares will accrue to the Escrowed Shares for the benefit of
the applicable Company Shareholders from the Closing Date, will be deposited
into the Escrow Account and will be subject to forfeiture in the

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event the Milestones are not timely achieved, as provided in Section 2.01
of the Merger Agreement. The Escrow Agent agrees that it does not and will not
have any right of setoff or other rights or claims with respect to the Escrowed
Shares.

     3.     In accordance with Article II of the Merger Agreement, if and when each
Milestone is achieved, Parent will promptly instruct the Escrow Agent in
substantially the form of Exhibit A attached to this Agreement (a “Certificate
of Instruction”) that the applicable number of the Escrowed Shares, as set
forth in Exhibit B attached to this Agreement, plus any accrued dividends or
other economic benefits thereon, are to be released to the respective Company
Shareholders. The Escrow Agent, upon receipt of the Certificate of Instruction
from Parent, will, not later than ten business days following its receipt of
such Certificate of Instruction, release to the applicable Company Shareholders
such number of Escrowed Shares, plus any accrued dividends or other economic
benefits thereon.

     4.     In accordance with and subject to the limitations of Article VIII of
the Merger Agreement, Parent and the Surviving Corporation are authorized to
setoff and apply Claims of any Indemnified Party against Parent’s obligation to
release any or all of the Escrowed Shares from the Escrow Account. If Parent
notifies the Escrow Agent by a Certificate of Instruction of its intention to
apply the Escrowed Shares against any such Claim, the Escrow Agent will, not
later than three business days following its receipt thereof give written
notice to the Representative of its receipt, together with a copy of such
Certificate of Instruction. Concurrently with the delivery of the Certificate
of Instruction to the Escrow Agent, Parent will deliver to the Representative
written notice setting forth in reasonable detail the facts giving rise to
Parent’s right of setoff contained in the Certificate of Instruction.

          (a) If the Escrow Agent (i) has not, within 30 days after it has given
such notice to the Representative, received from the Representative a
certificate in substantially the form of Exhibit C attached to this Agreement
(an “Objection Certificate”) in respect of the Certificate of Instruction to
which such notice relates, or (ii) has received such an Objection Certificate
within such 30 days but thereafter receives a copy of a joint notice signed by
the Representative and by Parent, or a final award of an arbitrator pursuant to
Section 11.01 of the Merger Agreement to the effect that the Owed Amount (as
defined in the Certificate of Instruction) referred to in such Certificate of
Instruction or a specified portion thereof constitutes a Claim which may be
setoff and against which Parent may apply all or a portion of the Escrowed
Shares, such shares being valued for this purpose at the Average Trading Price
prior to the date of setoff, then the Escrow Agent will, on the business day
following the expiration of ten days or the receipt by the Escrow Agent of such
joint notice or award, as applicable, release to Parent a number of Escrowed
Shares valued at the Average Trading Share Price before the date of setoff.

          (b) Upon receipt of an Objection Certificate, the Escrow Agent will, not
later than three business days following receipt thereof, give written notice
to Parent of its receipt together with a copy of the Objection Certificate.
The Representative and Parent will resolve any Dispute with respect to all or a
specified portion of an Owed Amount in accordance with Section 11.01 of the
Merger Agreement. If Parent and the Representative engage in mediation and/or
arbitration, the Escrow Agent will have no duty or obligation with respect to
such mediation and/or arbitration other than to retain the Escrowed Shares in
safekeeping until it receives a copy of the arbitration award or a joint notice
as described in Section 4(a) of this Agreement. Each of the

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Parent (on the one hand) and the Representative (on the other) agrees to
pay 50% of such reasonable fees and expenses incurred, if any, in connection
with such dispute resolution process.

          (c) Upon receipt by the Escrow Agent of a copy of a joint notice from
Parent and the Representative, or an arbitration award to the effect that the
Owed Amount (or a specified portion thereof) referred to in a Certificate of
Instruction in respect of which the Escrow Agent had received an Objection
Certificate is not an amount properly payable as a Claim against which the
Escrowed Shares may be applied, such Certificate of Instruction (or such
specified portion of the Owed Amount set forth therein) will be deemed
canceled. The Escrow Agent will have no duty to determine if the arbitration
award is final or binding, but may act in accordance therewith.

          (d) Upon determining that it has no right of setoff with respect to an
Owed Amount referred to in a Certificate of Instruction or a specified portion
of the Owed Amount set forth therein, Parent will promptly give notice in
writing to the Escrow Agent to cancel such Certificate of Instruction (or such
specified portion).

     5.     On the fifth year anniversary of the Closing of the Merger (the
“Expiration Date”), the Escrow Agent will release to Parent for cancellation
any Escrowed Shares, together with all accrued dividends or economic benefits
arising therefrom, then remaining in the Escrow Account and the Company
Shareholders will have no rights with respect thereto. After such release, the
Parent will distribute any earned Escrowed Shares to the Company Shareholders,
if such Company Shareholders are so entitled. Notwithstanding the foregoing,
if prior to the Expiration Date, a Change in Control (as defined in Section
2.01(c)(v) of the Merger Agreement) occurs, Parent will immediately send a
Certificate of Instruction to the Escrow Agent authorizing the release of the
Escrowed Shares to the Company Shareholders. Upon the release by the Escrow
Agent to Parent or the Company Shareholders, as applicable, of all the Escrowed
Shares, together with any accrued dividends or other economic benefits thereon,
this Agreement will automatically terminate, except for the provisions
affecting the reimbursement of expenses, indemnity and fees of the Escrow
Agent.

     6.     The duties and obligations of the Escrow Agent will be determined
solely by the provisions of this Agreement, and the Escrow Agent will not be
liable except for the performance of such duties and obligations as are
specifically set forth in this Agreement, with no duties to be implied. In
furtherance and not in limitation of the foregoing:

          (a) the Escrow Agent will be fully protected in relying in good faith upon
any written certification, notice, direction, request, waiver, consent, receipt
or other document that the Escrow Agent believes to be genuine and duly
authorized, executed and delivered;

          (b) the Escrow Agent will not be liable for any error of judgment, or for
any act done or omitted by it, or for any mistake in fact or law, or for
anything that it may do or refrain from doing in connection therewith,
including its own mere negligence. The Escrow Agent will, however, be liable
for its willful misconduct, recklessness or gross negligence. The Company
Shareholders, through the Representative, and Parent, jointly and severally,
agree to indemnify Escrow Agent for, and to hold it harmless against, any
damages, liability or expense (including, without limitation, reasonable
attorneys’ fees) incurred by it without gross negligence, recklessness or
willful misconduct on its part arising out of or in connection with its
entering into this Agreement

3

 

and carrying out its duties hereunder, including the costs and expenses of
defending itself against any claim of liability arising out of this Agreement,
it being the express intent to indemnify and hold the Escrow Agent harmless
against its own mere negligence. The costs and expenses of enforcing the right
of indemnification will also be paid by Parent and the Company Shareholders
through the Representative, jointly and severally. This right of
indemnification will survive the termination of this Escrow Agreement and the
removal or resignation of the Escrow Agent;

          (c) the Escrow Agent may seek the advice of legal counsel in the event of
any dispute or question as to the construction of any of the provisions of this
Agreement or its duties hereunder, and it will incur no liability and will be
fully protected in respect of any action taken, omitted or suffered by it in
good faith in accordance with the opinion of such counsel;

          (d) in the event that the Escrow Agent is, in any instance and in good
faith, uncertain as to its duties or rights under this Agreement, it will be
entitled to refrain from taking any action in that instance and its sole
obligation, subject to those of its duties under this Agreement as to which
there is no such uncertainty, will be to keep safely all property held in
escrow until it is directed otherwise in writing by the Representative and
Parent or by a final order or judgment of a court of competent jurisdiction
which is accompanied by a legal opinion of the presenting party satisfactory to
the Escrow Agent to the effect that such opinion or judgment is final and
enforceable and is not subject to further appeal;

          (e) the Escrow Agent will not be required to institute legal proceedings
of any kind and will not be required to initiate or defend any legal
proceedings, which may be instituted against it in respect of the subject
matter of this Agreement. In the event of any conflicting or inconsistent
claims or demands being made in connection with the subject matter of this
Agreement, however, or in the event that the Escrow Agent is in doubt as to
what action it should take under this Agreement, the Escrow Agent is hereby
authorized to petition any court of competent jurisdiction for instructions or
to interplead the funds or assets so held into such court. The parties agree
to the jurisdiction of such court over their persons as well as the Escrowed
Shares, waive personal service of process, and agree that service of process by
certified or registered mail, return receipt requested, to the business
addresses set forth in this Agreement will constitute adequate service. The
Company Shareholders through the Representative, on the one hand, and Parent,
on the other hand, jointly and severally agree to indemnify and hold the Escrow
Agent harmless from any liability or damages occasioned thereby and to pay any
and all of its costs, expenses, and reasonable attorneys’ fees incurred in any
such action and agree that, upon the filing of such petition or interpleader
action, the Escrow Agent, its servants, agents, employees or officers will be
relieved of further liability; and

          (f) all parties acknowledge and agree that the Escrow Agent is acting
solely and exclusively as a custodian under this Agreement.

     7. The Escrow Agent is entitled to its reasonable fees and costs,
including reasonable attorneys’ fees, as set forth in Attachment I. Fees are
payable in advance as compensation for the ordinary administrative services to
be rendered under this Agreement, and Parent agrees to pay such fees and
expenses. In no case will the Escrow Agent satisfy such obligations by offset
against the Escrowed Shares.

4

 

     8.     The Representative and Parent severally agree to provide to the Escrow
Agent all instruments and documents within their respective powers to provide
which may be necessary for the Escrow Agent to perform its duties and
responsibilities hereunder.

     9.     Any notices or other communication required or permitted under this
Agreement must be in writing and must be delivered personally, sent by
facsimile transmission or sent by certified, registered or express mail,
postage prepaid. Notices will not be deemed to be given until actually
received.

	 	 	 	 	 
	 	 	(a)	 	If to Parent to:
	 	 	 	 	 
	 	 	 	 	Advanced Neuromodulation Systems, Inc.

6501 Windcrest Drive

Suite 100

Plano, Texas 75024

Facsimile No.: (972) 309-8150

Attention: Kenneth G. Hawari

	 	 	 	 	 
	 	 	 	 	with a copy to:
	 	 	 	 	 
	 	 	 	 	Hughes & Luce, LLP

1717 Main Street

Suite 2800

Dallas, Texas 75201

Facsimile No.: (214) 939-5849

Attention: Laura M. Kalesnik
	 	 	 	 	 
	 	 	
(b)
	 	If to the Representative to:
	 	 	 	 	 
	 	 	 	 	MicroNet Medical, Inc.

1839 Buerkle Road

St. Paul, Minnesota 55110

Facsimile No.: (651) 773-3190

Attention: Mr. Thomas E. Brust
	 	 	 	 	 
	 	 	 	 	with a copy to:
	 	 	 	 	 
	 	 	 	 	Oppenheimer, Wolff & Donnelly, LLP

Plaza VII Suite 3300

45 South Seventh Street

Minneapolis, Minnesota 55402

Facsimile No.: (612) 607-7100

Attention: D. William Kaufman
	 	 	 	 	 
	 	 	
(c)
	 	If to Escrow Agent to:
	 	 	 	 	 
	 	 	 	 	Computershare Trust Company, Inc.

350 Indiana Street

5

 

	 	 	 	 	 
	 	 	 	 	Suite 800

Golden, CO 80401

Facsimile No.: (303) 262-0700

Attention: John Wahl

     Any party may, by notice given in accordance with this Section 9 to the
other parties, designate another address or person for receipt of notices under
this Agreement.

     10.     The Escrow Agent may resign at any time by giving written notice of
its resignation to the other parties at their addresses set forth in this
Agreement at least ten business days prior to the date such resignation is to
take effect. Upon the effective date of such resignation, all property then
held by the Escrow Agent under this Agreement will be delivered by it to such
person as may be designated in writing by each of the other parties (and the
parties will use reasonable best efforts to name a successor escrow agent prior
to the date specified for the Escrow Agent’s resignation to take effect),
whereupon all of the Escrow Agent’s obligations under this Agreement will,
except as hereinafter provided, cease and terminate. If no successor escrow
agent has been designated by such date, all obligations of the Escrow Agent
under this Agreement will nevertheless, except as hereinafter provided, cease
and terminate. The Escrow Agent’s sole responsibility thereafter will be to
keep safely all property then held by it and to deliver the same to a person
designated by each of the other parties or in accordance with the directions of
a final order or judgment of a court of competent jurisdiction. A termination
under this paragraph will in no way discharge the provisions of this Agreement
affecting the reimbursement of expenses, indemnity and fees of the Escrow
Agent.

     11.     THIS AGREEMENT WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE SUBSTANTIVE LAWS (BUT NOT THE CHOICE OF LAW PROVISIONS) OF THE STATE OF
DELAWARE.

     12.     The obligations of the parties (including the Escrow Agent) are unique
in that time is of the essence, and any delay in performance under this
Agreement by any party will result in irreparable harm to the other parties.
Accordingly, any party may seek specific performance and/or injunctive relief
before any court of competent jurisdiction in order to enforce this Agreement
or to prevent violations of the provisions of this Agreement, and no party may
object to specific performance or injunctive relief as an appropriate remedy.
The Escrow Agent acknowledges that its obligations under this Agreement, as
well as the obligations of the Representative and Parent, are subject to the
equitable remedies of specific performance and injunctive relief.

     13.     This Agreement may be amended, superseded, canceled, renewed or
extended, and its terms may be waived, only by a written instrument executed by
the parties, or in the case of a waiver, by the party waiving compliance. No
delay on the part of any party in exercising any right, power or privilege
under this Agreement will operate as a waiver thereof, nor will any waiver on
the part of any party of any such right, power or privilege, or any single or
partial exercise of any such right, power or privilege, preclude any further
exercise thereof or the exercise of any other such right, power, or privilege.
No waivers of or exceptions to any term, condition or provision of this
Agreement, in any one or more instances, will be deemed to be, or construed as,
a further or continuing waiver of any such term, condition or provision.

6

 

     14.     This Agreement will be binding upon and inure to the benefit of the
parties and their respective successors and permitted assigns and legal
representatives. Neither this Agreement nor any of the rights, interests or
obligations under this Agreement may be assigned by any party without the prior
written consent of the other parties. No person or entity will be deemed a
third-party beneficiary of this Agreement, the Escrow Agent will have no duties
or obligations to any such person and the Escrow Agent may disregard any
instruction from such person.

     15.     This Agreement may be executed by the parties in separate
counterparts, each of which when so executed and delivered will be an original,
but all such counterparts will together constitute one and the same instrument.
Counterpart signature pages may be executed and delivered by facsimile
transmission.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

7

 

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

	 	 	 
	 	
ADVANCED NEUROMODULATION SYSTEMS, INC.
	 
	 	By:

 

Name:

Title:	
/s/ Christopher G. Chavez

Christopher G. Chavez

President and Chief Executive Officer
	 
	 	By:	
/s/ Thomas E. Brust

Thomas E. Brust,

in his individual capacity and as a Representative
	 
	 	
COMPUTERSHARE TRUST COMPANY, INC.
	 
	 	By:

 

Name:

Title:	
/s/ John M. Wahl

John M. Wahl

Trust Officer
	 
	 	By:

 

Name:

Title:	
/s/ K. Gwinn

K. Gwinn

VP

8

 

ATTACHMENT I

ESCROW AGENT FEE SCHEDULE

	 	 	 	 	 
	Account Acceptance Fee
	 	$	2,500	 
	Annual Administrative Fee
	 	$	2,500	 
	Overnight Delivery Charges
	 	At Cost
	Out-of-Pocket Expenses
	 	At Cost

1

 

EXHIBIT A

CERTIFICATE OF INSTRUCTION

TO

COMPUTERSHARE TRUST COMPANY, INC.,

as Escrow Agent

     The undersigned, Advanced Neuromodulation Systems, Inc., a Texas
corporation (“Parent”), pursuant to Section 3 or Section 4 of the Escrow
Agreement dated as of November 25, 2002 (the “Escrow Agreement”), by and among
Parent, the Representative and you as the Escrow Agent (terms defined in the
Escrow Agreement have the same meanings when used herein), hereby:

		
	 	     (a) certifies that (i)      Shares of Parent Common Stock are
owed to the Company Shareholders as payment for the achievement of a
Milestone pursuant to Section 3 of the Escrow Agreement, and (ii)
instructs you to release to the Company Shareholders from the Escrowed
Shares such number of shares of Escrowed Shares; or

		
	 	     (b) certifies that (i) $     (the “Owed Amount”) has been
incurred by Parent as a Claim, which may be setoff and against which
Parent may apply the Escrowed Shares pursuant to Section 4 of the Escrow
Agreement and Parent has given the Representative written notice thereof
and of its intent to apply the Escrowed Shares against such Claim, which
written notice sets forth in reasonable detail the facts giving rise to
the liability for such payment, and (ii) instructs you to release to
Parent from the Escrowed Shares      Shares of Parent Common Stock in
satisfaction of such Claim.

		
	 	     (c) certifies that Average Trading Price of the Escrowed Shares is
$          per share.

	 	 	 	 
	 	 	ADVANCED NEUROMODULATION SYSTEMS, INC.
	 
	 	 	By:	 

	 
	 	 	Name:	 

	 
	 	 	Title:	 

	 
	Date:            
             
	 

 

EXHIBIT B

ESCROWED SHARES SCHEDULE

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	DOLLAR	 	PERCENTAGE OF	 	NUMBER OF
	MILESTONE	 	VALUE	 	ESCROW PAYMENT	 	SHARES
	
	 	
	 	
	 	

	MILESTONE I
	 	 	 	 	 	 	 	 	 	 	 	 
	510(k) Submission
	 	$	250,000.00	 	 	 	8.333	%	 	 	7,467	 
	510(k) Clearance
	 	$	250,000.00	 	 	 	8.333	%	 	 	7,467	 
	PMA Submission
	 	$	250,000.00	 	 	 	8.333	%	 	 	7,467	 
	PMA Approval
	 	$	250,000.00	 	 	 	8.333	%	 	 	7,468	 
	
	 	 	 	 	 	 	 	 	 	 	 	 
	MILESTONE II
	 	 	 	 	 	 	 	 	 	 	 	 
	510(k) Submission
	 	$	250,000.00	 	 	 	8.333	%	 	 	7,467	 
	510(k) Clearance
	 	$	250,000.00	 	 	 	8.333	%	 	 	7,467	 
	PMA Submission
	 	$	250,000.00	 	 	 	8.333	%	 	 	7,467	 
	PMA Approval
	 	$	250,000.00	 	 	 	8.333	%	 	 	7,468	 
	
	 	 	 	 	 	 	 	 	 	 	 	 
	MILESTONE III
	 	 	 	 	 	 	 	 	 	 	 	 
	IDE Submission
	 	$	333,333.33	 	 	 	11.111	%	 	 	9,956	 
	PMA Submission
	 	$	333,333.33	 	 	 	11.111	%	 	 	9,956	 
	PMA Approval
	 	$	333,333.33	 	 	 	11.111	%	 	 	9,956	 
	
	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL
	 	$	3,000,000	 	 	 	100	%	 	 	89,606	 

 

EXHIBIT C

OBJECTION CERTIFICATE

TO

COMPUTERSHARE TRUST COMPANY, INC.,

as Escrow Agent

     The undersigned Representative, pursuant to Section 4 of the Escrow
Agreement dated as of November 25, 2002 (the “Escrow Agreement”), by and among
Parent, the Representative and you as the Escrow Agent (terms defined in the
Escrow Agreement have the same meanings when used herein), hereby:

		
	 	     (a) certifies that (i) the [Owed Amount/$         of the Owed Amount]
referred to in the certificate to you of dated          , 20     , is
not a Claim against which Parent may apply the Escrowed Shares in
accordance with the Escrow Agreement, and (ii) the undersigned has
delivered to Parent a written statement dated              , 20      ,
setting forth in reasonable detail the facts supporting the statement
contained in clause (i) above; and

		
	 	     (b) objects to your making payment, and instructs you to not make
such payment, to Parent of the [Owed Amount/$         of the Owed Amount]
as provided in such certificate of Parent.

	 	 	 	 	 	 	 
	 	 	 	 	By:	 

[            ], Representative
	 
	Date:

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