Document:

Asset Purchase Agreement

 Exhibit 10.1 
 EXECUTION COPY 
 ASSET PURCHASE AGREEMENT 
 dated as of September 19, 2008 
 among 
 ARROW SPEED ACQUISITION CORP. 
 ARROW SPEED WAREHOUSE, INC. 
 STREETSIDE AUTO, LLC 
 BCGG REAL ESTATE COMPANY LLP 
 and

 SOLELY FOR PURPOSES OF SECTION 3.3, 
 KEYSTONE AUTOMOTIVE OPERATIONS, INC. 

 TABLE OF CONTENTS 
  

							
	 	 	 	  	 	  	Page
	ARTICLE I DEFINITIONS AND RULES OF CONSTRUCTION	  	1
		 	1.1	  	Definitions	  	1
		 	1.2	  	Rules of Construction	  	12
		
	ARTICLE II PURCHASE AND SALE; ASSUMPTION OF CERTAIN LIABILITIES	  	12
		 	2.1	  	Purchase and Sale of Assets	  	12
		 	2.2	  	Assignment and Assumption of Liabilities	  	14
		 	2.3	  	Excluded Assets	  	14
		 	2.4	  	No Other Liabilities Assumed	  	15
		 	2.5	  	Deemed Consents	  	16
		 	2.6	  	Obligations in Respect of Required Consents	  	16
		 	2.7	  	Post-Closing Assignment of Contracts	  	16
		
	ARTICLE III BASIC TRANSACTION	  	16
		 	3.1	  	Payment of Purchase Price	  	16
		 	3.2	  	Further Assurances	  	19
		 	3.3	  	Deposit	  	19
		
	ARTICLE IV REPRESENTATIONS AND WARRANTIES OF SELLERS	  	19
		 	4.1	  	Validity of Agreement	  	20
		 	4.2	  	Organization, Standing and Power	  	20
		 	4.3	  	No Conflicts or Violations	  	20
		 	4.4	  	Financial Statements and Related Matters	  	21
		 	4.5	  	Title to Assets; Assets Necessary to Business	  	21
		 	4.6	  	Employee Benefit Plans	  	21
		 	4.7	  	Labor Matters	  	22
		 	4.8	  	Litigation, Orders	  	22
		 	4.9	  	Subsidiaries and Affiliates; Ownership Interests	  	22
		 	4.10	  	Real Property Assets	  	23
		 	4.11	  	Taxes	  	23
		 	4.12	  	Compliance with Law	  	24
		 	4.13	  	Cure Amounts	  	24
		 	4.14	  	Environmental Matters	  	24
		 	4.15	  	Inventory	  	25
		 	4.16	  	Absence of Undisclosed Liabilities	  	25
		 	4.17	  	Affiliated Transactions	  	25
		 	4.18	  	Intellectual Property	  	25
		 	4.19	  	Insurance	  	27
		 	4.20	  	Contracts	  	27
		 	4.21	  	Relationships with Customers and Suppliers	  	28
		 	4.22	  	Brokers	  	28
		 	4.23	  	Bankruptcy	  	28
		 	4.24	  	Absence of Certain Changes	  	28

  

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	ARTICLE V REPRESENTATIONS AND WARRANTIES OF PURCHASER	  	30
		 	5.1	  	Organization	  	30
		 	5.2	  	Authority	  	30
		 	5.3	  	Consents	  	30
		 	5.4	  	Brokers	  	30
		 	5.5	  	No Conflicts or Violations	  	30
		 	5.6	  	Disclosure	  	30
		
	ARTICLE VI COVENANTS OF SELLERS; OTHER AGREEMENTS	  	31
		 	6.1	  	Consents and Approvals	  	31
		 	6.2	  	Access to Information and Facilities; Interim Financials	  	31
		 	6.3	  	Conduct of the Business Pending the Closing	  	32
		 	6.4	  	Notification of Certain Matters	  	34
		 	6.5	  	Commercially Reasonable Efforts; Further Assurances	  	34
		 	6.6	  	Bankruptcy Actions	  	35
		 	6.7	  	Assignment of Contracts	  	36
		 	6.8	  	Cure of Defaults	  	36
		 	6.9	  	Subject to Entry of Sale Order	  	36
		 	6.10	  	Exclusivity; No Solicitation of Transactions	  	36
		 	6.11	  	Taxes	  	37
		
	ARTICLE VII COVENANTS OF PURCHASER	  	37
		 	7.1	  	Assumed Obligations	  	37
		 	7.2	  	Further Assurances	  	37
		
	ARTICLE VIII CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER	  	38
		 	8.1	  	Warranties True as of Both Present Date and Closing Date; Covenants	  	38
		 	8.2	  	Bankruptcy Condition	  	38
		 	8.3	  	Material Adverse Change	  	39
		 	8.4	  	Cure Costs	  	39
		 	8.5	  	Financial Statements	  	39
		 	8.6	  	Litigation	  	39
		 	8.7	  	DIP Financing	  	39
		 	8.8	  	Key Customers	  	39
		 	8.9	  	Pay-off Letters	  	40
		 	8.10	  	Closing Deliveries	  	40
		
	ARTICLE IX CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLERS	  	40
		 	9.1	  	Warranties True as of Both Present Date and Closing Date	  	40
		 	9.2	  	Bankruptcy Court Approval	  	40
		 	9.3	  	Litigation	  	40
		 	9.4	  	Closing Deliveries	  	40
		
	ARTICLE X CLOSING	  	41
		 	10.1	  	Closing	  	41
		 	10.2	  	Deliveries by Sellers	  	41
		 	10.3	  	Deliveries by Purchaser	  	42

  

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	ARTICLE XI TERMINATION; TERMINATION PAYMENT	  	42
		 	11.1	  	Termination	  	42
		 	11.2	  	Payment of Amounts Owed to Purchaser	  	43
		 	11.3	  	Effect of Termination or Breach	  	43
		
	ARTICLE XII ADDITIONAL POST-CLOSING COVENANTS	  	44
		 	12.1	  	Employees	  	44
		 	12.2	  	WARN Act	  	44
		 	12.3	  	Joint Post-Closing Covenant of Purchaser and Sellers	  	45
		 	12.4	  	Receipt of Excluded Assets	  	45
		 	12.5	  	Certain Consents	  	45
		 	12.6	  	Name Changes	  	45
		 	12.7	  	Tax Matters	  	46
		
	ARTICLE XIII MISCELLANEOUS	  	46
		 	13.1	  	Expenses	  	46
		 	13.2	  	Amendment	  	46
		 	13.3	  	Notices	  	46
		 	13.4	  	Waivers	  	47
		 	13.5	  	Counterparts and Execution	  	48
		 	13.6	  	Headings	  	48
		 	13.7	  	SUBMISSION TO JURISDICTION	  	48
		 	13.8	  	Governing Law	  	48
		 	13.9	  	Binding Nature; Assignment	  	48
		 	13.10	  	No Third Party Beneficiaries	  	49
		 	13.11	  	Construction	  	49
		 	13.12	  	Public Announcements	  	49
		 	13.13	  	Entire Understanding	  	49
		 	13.14	  	Closing Actions	  	49
		 	13.15	  	Conflict between Transaction Documents	  	49
		 	13.16	  	Confidentiality Agreement	  	49
		 	13.17	  	Survival	  	50

  

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 EXHIBITS 
  

					
	 Exhibit A
	  	-	  	Form of Bidding Procedures Order
	 Exhibit B
	  	-	  	Form of Sale Order
	 Exhibit C
	  	-	  	Form of Bill of Sale
	 Exhibit D
	  	-	  	Form of Assignment and Assumption of Lease
	 Exhibit E
	  	-	  	Transition Services Agreement
	 Exhibit F
	  	-	  	Non Competition Agreement
			
	SCHEDULES	  		  	
			
	 Schedule 2.1(a)(v)
	  	-	  	Assumed Executory Contracts
	 Schedule 2.3(j)
	  	-	  	Excluded Assets relating to Certain Prepaid Assets
	 Schedule 2.3(n)
	  	-	  	Excluded Assets relating to Proceedings
	 Schedule 4.2
	  	-	  	Organization, Standing and Power
	 Schedule 4.3
	  	-	  	No Conflicts or Violations
	 Schedule 4.4
	  	-	  	Financial Statements and Related Matters
	 Schedule 4.5(b)
	  	-	  	Title to Assets; Assets Necessary to Business
	 Schedule 4.6(a)
	  	-	  	Employee Benefit Plans
	 Schedule 4.6(b)
	  	-	  	Employee Benefit Plans
	 Schedule 4.7
	  	-	  	Labor Matters
	 Schedule 4.8
	  	-	  	Litigation, Orders
	 Schedule 4.10
	  	-	  	Real Property Assets
	 Schedule 4.11(c)
	  	-	  	Taxes
	 Schedule 4.13
	  	-	  	Cure Amounts
	 Schedule 4.14
	  	-	  	Environmental Matters
	 Schedule 4.15
	  	-	  	Inventory
	 Schedule 4.16
	  	-	  	Absence of Undisclosed Liabilities
	 Schedule 4.17
	  	-	  	Affiliated Transactions
	 Schedule 4.18
	  	-	  	Intellectual Property
	 Schedule 4.19
	  	-	  	Insurance
	 Schedule 4.20(a)
	  		  	Contracts
	 Schedule 4.21
	  	-	  	Relationships with Customers and Suppliers
	 Schedule 4.24
	  	-	  	Absence of Certain Changes
	 Schedule 5.5
	  	-	  	No Conflict or Violations
	 Schedule 6.3
	  	-	  	Conduct of the Business Pending the Closing

  

 iv 

 ASSET PURCHASE AGREEMENT 
 THIS ASSET PURCHASE AGREEMENT is made and entered into as of this 19th day of September, 2008, by and between (i) Arrow Speed Acquisition
Corp., a Delaware corporation (“Purchaser”), (ii) Arrow Speed Warehouse, Inc., a Missouri corporation (“Arrow”), Streetside Auto, LLC, a Kansas limited liability company (“Streetside”), and
BCGG Real Estate Company LLP, a Missouri limited liability partnership (“BCGG” and with Arrow and Streetside, each a “Seller” and collectively, “Sellers”), and (iii) solely for purposes of
Section 3.3, Keystone Automotive Operations, Inc., a Pennsylvania corporation (“Keystone”). 
 In consideration
of the mutual covenants, agreements and warranties herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows: 
 ARTICLE I 
 DEFINITIONS AND RULES OF
CONSTRUCTION 
 1.1 Definitions. Unless otherwise defined herein, terms used herein shall have the meanings set forth below:

 “Accounting Firm” shall have the meaning set forth in Section 3.1(d). 
 “Acquired Assets” shall have the meaning set forth in Section 2.1(a). 
 “Acquired Vehicles” shall have the meaning set forth in Section 2.1(a)(ix). 
 “Acquisition Proposal” means a proposal (other than by Purchaser or its Affiliates) relating to any merger, consolidation, business
combination, sale or other disposition of 10% or more of the Acquired Assets pursuant to one or more transactions, the sale of 10% or more of the outstanding shares of capital stock or equity interests of any Seller (including, by way of a tender
offer, foreclosure or plan of reorganization, merger or liquidation) or a similar transaction or business combination involving one or more third parties and any Seller. 
 “Affiliate” of any particular Person means any other Person controlling, controlled by or under common control with such particular Person, where “control” means the possession, directly or
indirectly, of the power to direct the management and policies of a Person whether through the ownership of voting securities or otherwise, or as otherwise defined in Section 101(2) of the Bankruptcy Code. 
 “Affiliated Group” means an affiliated group as defined in Section 1504 of the Code (or any analogous combined, consolidated or
unitary group defined under state, local or foreign income Tax Law) of which any Seller is or has been a member. 
 “Agreement” means this Asset Purchase Agreement, including all the Exhibits and the Schedules, as the same may be amended from time to time in accordance with its terms. 
 “Allocation” shall have the meaning set forth in Section 12.7. 

 “Applicable Rate” means the prime rate of interest reported from time to time in The
Wall Street Journal. 
 “Arrow” shall have the meaning set forth in the preamble hereto. 
 “Assignment and Assumption of Lease” shall have the meaning set forth in Section 10.2(d). 
 “Assumption and Assignment Order” means the Final Order of the Bankruptcy Court, in form and substance acceptable to Purchaser,
(i) approving the assumption and assignment to Purchaser of the Assumed Executory Contracts, without adequate assurance of future performance liability pursuant to section 365(f)(2) of the Bankruptcy Code, except Purchaser’s promise
to perform its obligations under the Assumed Executory Contracts following the Closing; (ii) transferring and assigning the Assumed Executory Contracts such that the Assumed Executory Contracts will be in full force and effect from and after
the Closing with non-debtor parties being barred and enjoined from asserting against Purchaser, among other things, defaults, breaches or claims of pecuniary losses existing as of the Closing or by reason of the Closing; and (iii) providing
that the provisions of Rules 6004(g) and 6006(d) are waived and there will be no stay of execution under Rule 62(a) of the Federal Rules of Civil Procedure. 
 “Assumed Contracts” means all Contracts identified in Schedule 2.1(a)(v) under the heading “Assumed Contracts”. 
 “Assumed Equipment Leases” means all equipment leases identified in Schedule 2.1(a)(v) under the heading “Assumed
Equipment Leases”. 
 “Assumed Executory Contracts” means the Assumed Contracts and the Assumed Leases. 

“Assumed Facility Lease” means the Amended Lease Agreement by and among Arrow and BCGG LLC, to be dated as of the Closing Date, with
respect to the Kansas City Facility. 
 “Assumed Leases” means the Assumed Equipment Leases and the Assumed Facility Lease.

 “Assumed Obligations” shall have the meaning set forth in Section 2.2(a). 
 “Auction” means the auction conducted by Sellers pursuant to the Bidding Procedures Order and Section 8.2(c) for
substantially all of the Acquired Assets. 
 “Bankruptcy Code” means title 11 of the United States Code. 
 “Bankruptcy Court” means the United States Bankruptcy Court for the Western District of Missouri. 
 “Baseline Inventory Amount” means $17,330,000. 
  

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 “BCGG” has the meaning set forth in the preamble. 
 “Bidding Procedures Order” means the order of the Bankruptcy Court, substantially in the form of Exhibit A, or otherwise
acceptable to Purchaser, (i) authorizing and directing the Sellers to assume this Agreement pursuant to section 365 of the Bankruptcy Code, (ii) setting a deadline for the filing of objections to the entry of the Sale Order,
(iii) providing that the Auction shall be held on or one day prior to the Sale Hearing, (iv) scheduling the Sale Hearing, (v) providing for bidding procedures pursuant to which Qualifying Bids may be solicited, made and accepted and
containing the terms specified in Sections 8.2(c) and 11.2, and (vi) approving and implementing the provisions of Sections 6.6, 8.2(c) and 11.2. 
 “Business” means the activities carried on by Sellers and any of their Affiliates relating to the marketing, distribution and the sale
of parts and supplies to the automotive aftermarket, including the Sellers’ business relationship with respect to O’Reilly Automotive, Inc., CSK Auto Corp and CARQUEST Corporation. 
 “Cash” shall have the meaning set forth in Section 2.3(d). 
 “Cash Portion” shall have the meaning as set forth in Section 3.1(a). 
 “CERCLA” means the Comprehensive Environmental Response, Compensation and Liability Act of 1980, as amended (42 U.S.C. §9601 et
seq.) and any regulations promulgated thereunder. 
 “Chapter 11 Cases” means the cases commenced in the Bankruptcy
Court by Sellers under chapter 11 of the Bankruptcy Code. 
 “Claim” shall have the meaning set forth in section 101(5)
of the Bankruptcy Code. 
 “Closing” shall have the meaning set forth in Section 10.1. 
 “Closing Balance Sheet” shall have the meaning set forth in Section 3.1(d). 
 “Closing Date” shall have the meaning set forth in Section 10.1. 
 “Closing Inventory Amount” means the amount of Inventory of Sellers (excluding all Inventory coded (or, in a manner consistent with past
practice, that would have been coded) ADV, APA, CAT, DEF, KON, LIT, MTX, PCC, SUR, TBS or TOP) located at the Primary Facilities as of the Closing Date as shown on the closing Balance Sheet (as prepared in accordance with
Section 3.1(d)). 
 “COBRA” shall have the meaning set forth in Section 4.6(b). 
 “Code” means the United States Internal Revenue Code of 1986, as amended. 
 “Confidentiality Agreement” means the agreement, dated June 22, 2007, between Keystone and Arrow. 
  

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 “Contract” means any agreement, contract, license, commitment or other binding
arrangement or understanding, whether written or oral, to which any Seller is a party and which any Seller is permitted under the Bankruptcy Code to assume and assign. 
 “Customer Records” means all records and lists of Sellers including: (i) all merchandise, analysis reports, marketing reports and advertising, marketing and promotional and creative materials in
whatever form or medium pertaining to the Acquired Assets, the Facilities or the Business, (ii) all records relating to customers, suppliers or personnel of Sellers (including, customer lists, mailing lists, e-mail address lists, recipient
lists, sales records, correspondence with customers, customer files and account histories, supply lists and records of purchases from and correspondence with suppliers), (iii) all records relating to all product, business and marketing plans of
any Seller, and (iv) all books, ledgers, files, reports, plans, drawings and operating records of every kind of Sellers; provided, however, that Customer Records shall not include the originals of any Seller’s minute books,
stock books and Tax Returns. 
 “Dallas Facility” shall have the meaning set forth in Section 10.2(h).

 “Defective Inventory” means, collectively, all Inventory as of the Closing Date that (i) does not conform to the
specifications set forth in the applicable product documentation, (ii) has defects in design, workmanship, materials, or packaging, (iii) is not manufactured in a good, workmanlike manner, (iv) is not of good and merchantable quality,
(v) is not fit or sufficient for its intended use or for the purposes stated on any packaging, labeling, or advertising materials, (vi) has been returned by a customer and identified as defective and for which a customer is seeking a
credit or (vii) would be deemed defective based on the methodologies used by Sellers in accordance with their past customs and practices, in each case as determined by Purchaser in its reasonable discretion. 
 “DIP Financing” means any financing agreement entered into by Sellers as of or after the commencement of the Chapter 11 Cases, including
any post-petition financing entered into pursuant to section 364 of the Bankruptcy Code. 
 “Dollars” or
“$” means dollars of the United States of America. 
 “Employee Benefit Plan” means each “employee
benefit plan” (including each” employee benefit plan” as defined in ERISA §3(3)), profit sharing, deferred compensation, bonus, stock option, stock purchase, vacation pay, holiday pay, pension, retirement plans, medical and any
other form of compensation or benefit plan, program or arrangement of any kind regardless of whether any such plan is written or oral or provided under an employment, collective bargaining or other similar arrangement maintained or contributed to by
Sellers or any ERISA Affiliate or with respect to which Sellers or any of their ERISA Affiliates have any Liability. 
 “Environmental Laws” means, whenever in effect, all federal, state, provincial, local and foreign statutes, regulations, ordinances, directives and other provisions having the force or effect of Law, all judicial and
administrative orders and determinations, all contractual obligations and all common law, in each case concerning public health and safety, worker health and safety, pollution or protection of the environment, including all those relating to the

  

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presence, use, production, generation, handling, transportation, treatment, storage, disposal, distribution, labeling, testing, processing, discharge,
Release, threatened Release, control, or cleanup of any hazardous materials, substances or wastes (including CERCLA and analogous state laws), each as amended or in effect prior to, on or after Closing. 
 “Environmental Permits” shall have the meaning set forth in Section 4.14(a). 
 “ERISA Affiliate” means each entity which is treated as a single employer with any Seller for purposes of Code §414. 
 “ERISA” means the Employee Retirement Income Security Act of 1974, as amended, and all regulations issued thereunder. 
 “Escrow Agent” means UMB Bank, N.A. or any other escrow agent that is mutually acceptable to Purchaser and Sellers. 
 “Escrow Agreement” means an escrow agreement in form and substance reasonably satisfactory to Purchaser, Sellers and the Escrow Agent
that is consistent with the terms of this Agreement (including Sections 3.1(e) and 11.3). 
 “Escrow Deposit
Amount” means $1,166,000. 
 “Escrow Funds” means the amount of cash held from time to time by the Escrow Agent
pursuant to the Escrow Agreement. 
 “Estimated Inventory Amount” shall have the meaning set forth in
Section 3.1(b). 
 “Estimated Purchase Price” shall mean the Cash Portion, as determined by using the Estimated
Inventory Amount for purposes of making the calculations pursuant to Sections 3.1(a)(i)(B) and 3.1(a)(i)(C). 
 “Excluded Assets” shall have the meaning set forth in Section 2.3. 
 “Excluded
Contracts” shall have the meaning set forth in Section 2.3(b). 
 “Excluded Environmental Liabilities”
means any Liability or investigatory, corrective or remedial obligation, whenever arising or occurring, arising under Environmental Laws with respect to Sellers or any predecessor or Affiliate of any Seller, the Business, the Acquired Assets or the
Facilities (including any arising from the on-site or off-site Release, threatened Release, treatment, storage, disposal, or arrangement for disposal of Hazardous Substances) whether or not constituting a breach of any representation or warranty
herein and whether or not set forth on any Schedule. 
 “Excluded Leases” shall have the meaning set forth in
Section 2.3(b). 
 “Excluded Proceeds” shall have the meaning set forth in Section 12.4. 

 

 5 

 “Executive Officer” of a Person means its chairman, chief executive officer, financial
officer, president, any vice president, controller, treasurer or general counsel. 
 “Exhibit” or
“Exhibits” means the exhibit or exhibits attached hereto. 
 “Facilities” means any land, buildings,
structures, improvements, fixtures or other interest in real property which is used or intended to be used by Sellers or used or intended to be used in, or otherwise related to, the Business. 
 “Facility Leases” means all of Sellers’ right, title and interest in all leases, subleases, licenses, concessions and other
agreements (written or oral) and all amendments, extensions, renewals, guaranties and other agreements with respect thereto, pursuant to which Sellers hold a leasehold or subleasehold estate in, or are granted the right to use or occupy a Facility.

 “Final Determination” shall have the meaning set forth in Section 3.1(d). 
 “Final Order” means an Order as to which the time to file an appeal, a motion for rehearing or reconsideration or a petition for writ of
certiorari has expired and no such appeal, motion or petition is pending. 
 “Final Purchase Price” shall have the meaning
set forth in Section 3.1(e). 
 “Financial Statements” shall have the meaning set forth in
Section 4.4. 
 “GAAP” means United States generally accepted accounting principles as in effect from time to
time, consistently applied. 
 “Governmental Authority” means any federal, state, local or foreign government, any
subdivision, agency, commission or authority thereof, including any quasi-governmental or private body exercising any regulatory or taxing authority thereunder or any judicial authority (or any department, bureau or division thereof). 
 “Hazardous Substances” means any pollutants, contaminants or chemicals, and any industrial, toxic or otherwise hazardous materials,
substances or wastes with respect to which Liability or standards of conduct are imposed under any Environmental Laws petroleum and petroleum-related substances, products, by-products and wastes, asbestos, urea formaldehyde and lead-based paint,
noise and odors. 
 “Indebtedness” means, with respect to any Person, any obligation of such Person for borrowed money, and
in any event shall include (i) any obligation incurred for all or any part of the purchase price of property or other assets or for the cost of property or other assets constructed or of improvements thereto, other than accounts payable
included in current liabilities and incurred in respect of property purchased in the Ordinary Course of Business, (ii) the face amount of all letters of credit issued for the account of such Person, (iii) obligations (whether or not such
Person has assumed or become liable for the payment of such obligation) secured by Liens, (iv) capitalized lease obligations, (v) all guarantees and similar obligations of such Person, (vi) all premium payments and any obligations
under any insurance policy owned, 

  

 6 

 
held, or maintained by the Sellers or insuring the Acquired Assets, (vii) all accrued interest, fees and charges in respect of any indebtedness and (viii)
all prepayment premiums and penalties, and any other fees, expenses, indemnities and other amounts payable as a result of the prepayment or discharge of any indebtedness. 
 “Insider” means any Executive Officer, director, governing body member, stockholder, partner or Affiliate, as applicable, of any Seller (or any predecessor or Affiliate of any Seller) or any
individual related by marriage or adoption to any such individual or any entity in which any such Person owns any beneficial interest or any other Person or entity identified in Bankruptcy Code Section 101(31). 
 “Intellectual Property” means all of the following in any jurisdiction throughout the world: (i) patents, patent applications and
patent disclosures, together with all reissuances, continuations, continuations-in-part, divisionals, revisions, extensions and reexaminations thereof, (ii) trademarks, service marks, trade dress, logos, slogans, trade names, internet domain
names and corporate names, together with all goodwill associated therewith, and applications, registrations and renewals in connection therewith, (iii) copyrights, mask works and copyrightable works, and applications, registrations and renewals
in connection therewith, (iv) trade secrets and confidential business information (including ideas, research and development, know-how, inventions, formulas, compositions, algorithms, industrial models, methods, processes and techniques,
designs, drawings, specifications, customer and supplier lists, pricing and cost information and business and marketing plans and proposals), (v) computer software (including source code, executable code data, websites, databases and
documentation, software enabling search engine optimization and capability, pay per click functionality, network infrastructure, switches, modems, APs and RF devices); (vi) copies and tangible embodiments of any of the foregoing in whatever
form or medium; and (vii) all other intellectual property. 
 “Inventory” means all inventory of any kind or nature in
any condition, whether or not prepaid, and wherever located, including items returned prior to the Closing, held or owned by any Seller including all raw materials, work in process, semi-finished and finished products, replacement and spare parts,
packaging materials, operating supplies, and fuels and other and similar items. For all purposes of this Agreement, calculations of the amount of Inventory shall be determined on a “first-in, first-out” (FIFO) basis using a weighted
average cost methodology in accordance with GAAP. 
 “Inventory Financing” means, at any time, any amounts due and payable
to Keystone or its Affiliates pursuant to the vendor agreement pursuant to which Keystone agrees to act as a vendor to Arrow and provide Arrow with inventory and inventory financing, in order to sustain Arrow’s operations following the Petition
Date. 
 “Inventory Reduction” means, as of the Closing Date and in each case as shown on the Closing Balance Sheet, an
amount equal to the sum of (i) 50% of the amount (if any) by which the amount of the Slow Moving Inventory exceeds the lesser of $5,000,000 or 30.0% of the Closing Inventory Amount, (ii) 50% of the amount (if any) by which the amount of
the Defective Inventory exceeds the lesser of $1,000,000 or 5.0% of the Closing Inventory Amount and (iii) 50% of the amount (if any) by which the amount of the Private Label Inventory exceeds the lesser of $2,000,000 or 10.0% of the Closing
Inventory Amount. 
  

 7 

 “Kansas City Facility” shall mean the Facility located at 686 South Adams, Kansas City,
Kansas. 
 “Keystone” shall have the meaning set forth in the preamble. 
 “Knowledge of Sellers” shall mean the actual knowledge (after reasonable inquiry and investigation) of any director, governing body
member or Executive Officer of Sellers. 
 “Latest Balance Sheet” shall have the meaning set forth in
Section 4.4. 
 “Law” means any law, statute, regulation, ruling or Order of, administered or enforced by or on
behalf of, any Governmental Authority, or common law. 
 “Liability” means any liability (whether known or unknown, whether
asserted or unasserted, whether absolute or contingent, whether accrued or unaccrued, whether liquidated or unliquidated, and whether due or to become due and regardless of when asserted), including any liability for Taxes. 
 “Lien” or “Liens” means any lien (statutory or otherwise), hypothecation, encumbrance, Claim, Liability, security
interest, interest, mortgage, pledge, restriction, charge, instrument, license, preference, priority, security agreement, easement, covenant, encroachment, option, right of recovery, Tax (including foreign, federal, state and local Tax), Order of
any Governmental Authority, of any kind or nature (including (i) any conditional sale or other title retention agreement and any lease having substantially the same effect as any of the foregoing, (ii) any assignment or deposit arrangement
in the nature of a security device, (iii) any claim based on any theory that Purchaser is a successor, transferee or continuation of Sellers or the Business, and (iv) any leasehold interest, license or other right, in favor of a Third
Party or a Seller, to use any portion of the Acquired Assets), whether secured or unsecured, choate or inchoate, filed or unfiled, scheduled or unscheduled, noticed or unnoticed, recorded or unrecorded, contingent or non-contingent, material or
non-material, known or unknown. 
 “Material Adverse Change” or “Material Adverse Effect” means any event,
change, condition, development or effect that individually or in the aggregate, is or is reasonably likely to be materially adverse to (i) the Acquired Assets, Assumed Obligations, the Business or the operations, results of operations or
condition (financial or otherwise) of Sellers or (ii) the ability of Sellers to perform their obligations under this Agreement; provided, however, that the filing of the Chapter 11 Cases and reasonably anticipated effects
thereof shall not be taken into account in determining whether there has been or will be a Material Adverse Change or Material Adverse Effect. 
 “Material Contract” shall have the meaning set forth in Section 4.20(a). 
 “Motion to Shorten
Time” shall have the meaning set forth in Section 6.6(a)(ii). 
 “No Fee Event” means Arrow’s
termination of this Agreement pursuant to Section 11.1(c). 
 “Non Competition Agreement” shall have the meaning
set forth in Section 10.2(i). 
  

 8 

 “Notice of Disagreement” shall have the meaning set forth in Section 3.1(d).

 “Notice Parties” shall have the meaning set forth in Section 6.6(a)(ii). 
 “Order” means any decree, order, injunction, rule, judgment, consent of or by any Governmental Authority. 
 “Ordinary Course of Business” means the operation of the Business by Sellers in the usual and ordinary course in a manner substantially
similar to the manner in which Sellers operated prior to the commencement of the Chapter 11 Cases (including with respect to quantity and frequency). 
 “Owner” shall mean Ronald L. Coppaken. 
 “Permits” means licenses,
permits, approvals, certificates of occupancy, authorizations, operating permits, registrations, plans and the like. 
 “Permitted
Liens” means easements, covenants, conditions, restrictions and other similar matters of record on real property, leasehold estates or personalty that do not, and would not reasonably be expected to, in any material respect detract from the
value thereof and do not individually or in the aggregate in any material respect interfere with the present use of the real property subject thereto. 
 “Person” means any corporation, partnership, joint venture, limited liability company, organization, entity, authority or natural person. 
 “Petition Date” means the date on which the Chapter 11 Cases are commenced. 
 “PNC” means PNC Bank, National Association. 
 “Primary Facilities” means, collectively, (i) the Dallas Facility, (ii) the Kansas City Facility, (iii) the Facility located at 589 Golden Oaks Boulevard, Houston, Texas, (iv) the
Facility located at 2525 Fairview Avenue North, St. Paul, Minnesota and (v) the Facility located at 3710 Vulcan Drive, Nashville, Tennessee. 
 “Private Label Inventory” means, collectively, the amount of all Inventory that constitutes a “private label” product of Seller (including all Inventory coded BLL-0 through BLL-25 or otherwise included in the
“Bullet” line), as determined as of the Closing Date in a manner consistent with past practice. 
 “Proceeding”
means any action, charge, complaint, suit, grievance, arbitration, investigation, inquiry, audit, or other proceeding of any kind whatsoever, whether at law or in equity. 
 “Purchase Price” shall have the meaning set forth in Section 3.1(a). 
 “Purchase Price Calculation” shall have the meaning set forth in Section 3.1(d). 
  

 9 

 “Purchaser” shall have the meaning set forth in the preamble hereto. 
 “Release” shall have the meaning set forth in CERCLA. 
 “Residual Value” means, with respect to the Acquired Vehicles, the lesser of (i) the aggregate amounts that would be owed by Sellers as of the Closing Date to the third party lessors under each
of the leases (as in effect on the date hereof) for the Acquired Vehicles if Sellers had complied in all respects with its obligations under such leases and (ii) $350,000. 
 “Rule” or “Rules” means the Federal Rules of Bankruptcy Procedure. 
 “Sale Hearing” means the hearing of the Bankruptcy Court to approve this Agreement and the transactions contemplated herein. 

“Sale Motion” shall have the meaning set forth in Section 6.6(a)(i). 
 “Sale Order” means the Final Order of the Bankruptcy Court, substantially in the form of Exhibit B or otherwise reasonably
acceptable to PNC and Purchaser, to be entered by the Bankruptcy Court pursuant to sections 363 and 365 of the Bankruptcy Code, (i) approving this Agreement and the transactions contemplated hereby, (ii) approving, with specific
findings of fact in support thereof, the sale of the Acquired Assets to Purchaser free and clear of all Liens (other than Permitted Liens) pursuant to section 363(f) of the Bankruptcy Code, (iii) finding, with specific findings of fact in
support thereof, that Purchaser is a good-faith purchaser entitled to the protections of section 363(m) of the Bankruptcy Code, (iv) confirming with specific findings of fact in support thereof, that Purchaser is acquiring the Acquired
Assets free and clear of the Unassumed Liabilities and providing for a full release of Purchaser with respect to the Unassumed Liabilities, (v) providing that the provisions of Rules 6004(g) and 6006(d) are waived and there will be no stay of
execution of the Sale Order under Rule 62(a) of the Federal Rules of Civil Procedure, (vi) retaining jurisdiction of the Bankruptcy Court to interpret and enforce the terms and provisions of this Agreement, and (vii) authorizing and
approving the results of the Auction. 
 “Schedule” or “Schedules” means the schedule or schedules attached
hereto. 
 “Seller” and “Sellers” shall have the meaning set forth in the preamble hereto; provided, that BCGG shall
only constitute a Seller for purposes of Article I, Sections 2.1(a)(ix), 3.2, 4.1, 4.2, 4.3, 4.5, 4.20, 6.1, 6.3(a), 6.3(d), 6.3(e), 6.3(f), 6.3(k),
6.3(u), 6.5(b), 6.10, 10.2(f), 12.5 and Article XIII. 
 “Seller Intellectual
Property” shall have the meaning set forth in Section 4.18(b). 
 “SKU” means the classification used
by the Sellers with respect to each item of Inventory held by the Sellers, as determined in a manner consistent with the past customs and practices of the Sellers. 
 “Slow Moving” means, with respect to each SKU, the excess of (i) the aggregate number of units of such SKU on hand as of the Closing Date over (ii) the aggregate number of 

  

 10 

 
units of such SKU sold during the twelve month period ending on August 25, 2008, as reduced by the aggregate number of units of such SKU that had been
returned (whether prior to, on or after the Closing Date) to the Sellers; provided, that if the aggregate number of units of any SKU returned during such twelve-month period exceeds the aggregate number of units sold during such twelve-month
period, then, for purposes of this definition, the aggregate number of units of such SKU sold during the twelve month period ending on August 25, 2008 shall be deemed to be zero. 
 “Slow Moving Inventory” means, collectively, all Inventory (other than Defective Inventory and Private Label Inventory) that is Slow
Moving as of the Closing Date. 
 “Streetside” shall have the meaning set forth in the preamble hereto. 
 “Subsidiary” means, with respect to any Person, any corporation a majority of the total voting power of shares of stock of which is
entitled (without regard to the occurrence of any contingency) to vote in the election of directors, managers or trustees thereof is at the time owned or controlled, directly or indirectly, by that Person or one or more of the other Subsidiaries of
that Person or a combination thereof, or any partnership, limited liability company, association or other business entity a majority of the partnership or other similar ownership interest of which is at the time owned or controlled, directly or
indirectly, by that Person or one or more Subsidiaries of that Person or a combination thereof. For purposes of this definition, a Person is deemed to have a majority ownership interest in a partnership, limited liability company, association or
other business entity if such Person is allocated a majority of the gains or losses of such partnership, limited liability company, association or other business entity or is or controls the managing director or general partner of such partnership,
limited liability company, association or other business entity. 
 “Systems” shall have the meaning set forth in
Section 4.18(i). 
 “Tax” and, with correlative meaning, “Taxes” means all (i) United
States federal, state or local or non-United States taxes, assessments, charges, duties, levies or other similar governmental charges of any nature, including all income, franchise, profits, capital gains, capital stock, transfer, sales, use,
occupation, property, excise, severance, windfall profits, stamp, stamp duty reserve, license, payroll, withholding, ad valorem, value added, alternative minimum, environmental, customs, social security (or similar), unemployment, sick pay,
disability, registration and other taxes, assessments, charges, duties, fees, levies or other similar governmental charges of any kind whatsoever, whether disputed or not, together with all estimated taxes, deficiency assessments, additions to tax,
penalties and interest; (ii) any liability for the payment of any amount of a type described in clause (i) arising as a result of being or having been a member of any consolidated, combined, unitary or other group or being or having been
included or required to be included in any Tax Return related thereto; and (iii) any liability for the payment of any amount of a type described in clause (i) or clause (ii) as a result of any obligation to indemnify or otherwise
assume or succeed to the liability of any other Person. 
 “Tax Return” means any report, return, declaration, claim for
refund or other information or statement supplied or required to be supplied by any Seller relating to Taxes, including any schedules or attachments thereto and any amendments thereof. 
  

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 “Third Party” means any Person other than Sellers, Purchaser or any of their respective
Affiliates. 
 “Transaction Documents” means this Agreement, and all other agreements, instruments, certificates and other
documents to be entered into or delivered by any party in connection with the transactions contemplated to be consummated pursuant to this Agreement. 
 “Transferred Employees” shall mean each employee of Sellers hired by Purchaser. 
 “Transition Services Agreement” shall have the meaning set forth in Section 10.2(h). 
 “Unassumed Liabilities” shall have the meaning set forth in Section 2.4(a). 
 “WARN
Act” shall have the meaning set forth in Section 12.2. 
 1.2 Rules of Construction. Unless the context otherwise
clearly indicates, in this Agreement: 
  

	 	(a)	the singular includes the plural; 

  

	 	(b)	“includes” and “including” are not limiting; 

  

	 	(c)	“may not” is prohibitive and not permissive; and 

  

	 	(d)	“or” is not exclusive. 

 ARTICLE II

 PURCHASE AND SALE; ASSUMPTION OF CERTAIN LIABILITIES 
 2.1 Purchase and Sale of Assets. 
 (a)
Subject to the terms and conditions set forth in this Agreement, at the Closing, Purchaser shall purchase, acquire and take assignment and delivery of, for the consideration specified in Section 3.1, and Sellers shall sell, convey,
assign, transfer and deliver to Purchaser, free and clear of all Liens, Claims, and other interests and encumbrances (whether arising prior to or subsequent to a petition for a Chapter 11 Case and prior to the Closing) (except for the Assumed
Obligations and Permitted Liens), all rights, titles and interests of every kind and nature, owned, licensed or leased by Sellers (including indirect and other forms of beneficial ownership) as of the Closing Date, whether tangible or intangible,
real or personal and wherever located and by whomever possessed all of the following assets (all of the assets to be sold, assigned, transferred and delivered to Purchaser hereunder herein called the “Acquired Assets”;
provided, that, for purposes of clarity, the Acquired Assets shall not include the Excluded Assets retained by Sellers pursuant to Section 2.3): 
 (i) all Inventory; 
 (ii) all Customer Records; 
  

 12 

 (iii) all Intellectual Property (including all of the Intellectual Property set forth on
Schedule 4.18), along with all goodwill associated therewith and the business symbolized thereby, all income, royalties, products, proceeds, damages and payments due or payable to Sellers as of the Closing or thereafter, including,
damages and payments for past, present or future infringements, misappropriations or other conflicts therewith, in each case that now or hereafter, may be secured throughout the world and all copies and tangible embodiments of any such Intellectual
Property in Sellers’ possession or control; 
 (iv) all telephone numbers, email addresses and business-to-business and
business-to-customer points of contact (including all website addresses, URLs, and order points of entry); 
 (v) all of Sellers’
rights existing under the Assumed Executory Contracts including all claims, deposits, prepayments, warranties, guarantees, indemnities, refunds, reimbursements, causes of action, rights of recovery, rights of set-off and rights of recoupment of
every kind and nature (whether or not known or unknown or contingent or non-contingent); 
 (vi) all of Sellers’ rights existing under
the Assumed Facility Lease including all rights to security deposits held pursuant thereto; 
 (vii) all office supplies, production
supplies, spare parts, other miscellaneous supplies, other tangible property of any kind, and all machinery, equipment (including all transportation and office equipment, WMS hardware and devices to interact with WMS systems, and marketing and
publishing hardware), fixtures, trade fixtures, computer and information technology equipment (including disaster recovery systems, tapes, wireless equipment, passwords, firewall and security infrastructure, and catalog data and software) and
related data, telephone systems and furniture owned by Sellers wherever located, including, all such items which are located in any building, warehouse, office or other space leased, owned or occupied by Sellers or used in connection with the
Business as listed on Schedule 2.1(a)(vii), including the book value attributable thereto; 
 (viii) all prepaid assets except
as set forth on Schedule 2.3(j); 
 (ix) all rolling stock and other titled vehicles listed under “Vehicle Leases” on
Schedule 4.20(a) (the “Acquired Vehicles”); 
 (x) the right to receive and retain mail, and other communications
related to the Acquired Assets (other than mail and other communications solely related to accounts and notes receivable or collections thereof); 
 (xi) all transferable Permits, licenses, certifications and approvals from all permitting, licensing and certifying agencies, and the rights to all data and records held by such permitting, licensing and certifying agencies to the extent
related to the Acquired Assets; and 
  

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 (xii) all insurance policies relating to the Business or the Acquired Assets (other than any “key
man” insurance policies and any rights relating to refunds from insurance policies for premiums paid prior to the Closing). 
 (b)
Notwithstanding anything in this Agreement to the contrary, Purchaser may revise the Schedules setting forth the Acquired Assets and the Excluded Assets to (i) eliminate any Contract at any time on or before ten (10) days prior to the Sale
Hearing (other than the Assumed Leases) or (ii) add any lease, Contract, or asset at any time before ten (10) days prior to the Sale Hearing, and to require Sellers to give notice to the parties to any such lease or Contract within
twenty-four hours of such addition or elimination; provided, that such change shall not affect the amount of the Purchase Price; provided, further, that no revision, elimination or addition by Purchaser of any lease, Contract or
asset by Purchaser pursuant to clause (ii) above shall increase any cure costs to Sellers. 
 2.2 Assignment and Assumption of
Liabilities. 
 (a) Subject to the terms and conditions set forth in this Agreement, including Section 2.4, Purchaser shall
only assume from Sellers and thereafter be responsible for the payment, performance or discharge of the following Liabilities of Sellers or any of their respective predecessors in interest (all such Liabilities herein called the “Assumed
Obligations”): 
 (i) obligations under the Assumed Executory Contracts first arising after the Closing; and 
 (ii) any cure obligations (pursuant to section 365 of the Bankruptcy Code) with respect to any Assumed Executory Contract assumed and assigned to
Purchaser pursuant to Section2.7. 
 (b) Notwithstanding anything in this Agreement to the contrary, Sellers hereby acknowledge and
agree that Purchaser is not assuming from Sellers, or is in any way responsible for, the Unassumed Liabilities. 
 (c)
Section 2.2(a) shall not limit any claims or defenses Purchaser may have against any party other than Sellers. The transactions contemplated by this Agreement shall in no way expand the rights or remedies of any Third Party against
Purchaser or Sellers. 
 2.3 Excluded Assets. Notwithstanding anything to the contrary in this Agreement, the following assets of
Sellers shall be retained by Sellers and are not being sold or assigned to Purchaser hereunder (all of the following are referred to collectively as the “Excluded Assets”): 
 (a) any and all rights under this Agreement and avoidance claims or causes of action arising under the Bankruptcy Code or applicable state Law, including
all rights and avoidance claims of any Seller arising under chapter 5 of the Bankruptcy Code; 
 (b) all leases other than the Assumed
Leases (the “Excluded Leases”) and all Contracts other than the Assumed Executory Contracts (the “Excluded Contracts”); 
  

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 (c) all accounts and notes receivable (whether current or noncurrent), including accounts and notes
receivable relating to products sold prior to Closing (whether or not billed prior to Closing), and all rights, claims and causes of action relating or pertaining to the collection thereof, including all records necessary for the collection thereof;

 (d) all cash (including checking account balances, certificates of deposit and other time deposits and petty cash) net of overdrafts
(“Cash”) and marketable and other securities; 
 (e) all Tax refunds, rebates, credits and similar items; 
 (f) income tax returns of Sellers and related materials; 
 (g) all assets maintained pursuant to or in connection with any Employee Benefit Plan; 
 (h) the equity
securities or other ownership interest of any Seller; 
 (i) the equity securities or other ownership interest of any of Sellers’
Affiliates; 
 (j) all security deposits and advances and prepaid assets set forth on Schedule (j); 
 (k) any “key man” insurance policies; 
 (l) all records and documents to the extent relating to the Excluded Assets; 
 (m) any rights relating to refunds from insurance
policies for premiums paid prior to the Closing; and 
 (n) any proceeds or payments received as a result of any of the causes of action or
proceedings set forth in Schedule 2.3(n). 
 2.4 No Other Liabilities Assumed. 
 (a) Subject to Section 2.2, each Seller acknowledges and agrees that pursuant to the terms and provisions of this Agreement, Purchaser will
not assume, or in any way be liable or responsible for, any Liability of any Seller (including Liabilities relating to the pre-petition or post-petition operation of the Business (including any warranty or products-related Liabilities), the Excluded
Assets or the Acquired Assets (and the use thereof) or any outstanding checks), whether relating to or arising out of the Business, the Excluded Assets or the Acquired Assets or otherwise, other than the Assumed Obligations. In furtherance and not
in limitation of the foregoing, neither Purchaser nor any of its Affiliates shall assume, and shall not be deemed to have assumed, any Indebtedness, Claim, Liability, Employee Benefit Plan, collective bargaining agreement, Excluded Environmental
Liability, Tax Liability or other obligation of any Seller or any predecessor or Affiliate of any Seller whatsoever, other than the Assumed Obligations (collectively, the “Unassumed Liabilities”). 
  

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 (b) The parties acknowledge and agree that disclosure of any obligation or Liability on any Schedule to
this Agreement shall not create an Assumed Obligation or other Liability of Purchaser, except where such disclosed obligation has been expressly assumed by Purchaser as an Assumed Obligation in accordance with the provisions of
Section 2.2 hereof. 
 2.5 Deemed Consents. For all purposes of this Agreement (including all representations and
warranties of Sellers contained herein), Sellers shall be deemed to have obtained all consents required in respect of the assignment of any Assumed Executory Contract if, and to the extent that, pursuant to the Assignment and Assumption Order or
other Bankruptcy Court Order, Sellers are authorized to assume and assign to Purchaser, and Purchaser is authorized to accept, such Assumed Executory Contracts pursuant to section 365 of the Bankruptcy Code. 
 2.6 Obligations in Respect of Required Consents. Except to the extent provided in Sections 2.1(b) and 2.7, to the extent that
any Assumed Executory Contract is subject to a cure pursuant to section 365 of the Bankruptcy Code, Sellers shall, jointly and severally, be responsible for such cure and pay any amounts related to such cure obligations. 
 2.7 Post-Closing Assignment of Contracts. With respect to any Contract which is not set forth on Schedule 2.1(a)(v) and to the extent
such Contract has not been rejected by Sellers pursuant to section 365 of the Bankruptcy Code, upon written notice(s) from Purchaser, as soon as practicable, Sellers shall take all actions reasonably necessary to assume and assign to Purchaser
pursuant to section 365 of the Bankruptcy Code any Contract(s) set forth in Purchaser’s notice(s), and any applicable cure cost shall be satisfied by Purchaser. Sellers agree and acknowledge that (i) they shall provide Purchaser with
reasonable advance notice of any motion(s) to reject any Contract and (ii) the covenant set forth in this Section 2.7 shall survive the Closing. Notwithstanding anything in this Agreement to the contrary, on the date any Contract is
assumed and assigned to Purchaser pursuant to this Section 2.7, such Contract shall be deemed an Assumed Executory Contract and deemed scheduled on Schedule 2.1(a)(v) under the appropriate heading for all purposes under this
Agreement. 
 ARTICLE III 
 BASIC TRANSACTION 
 3.1 Payment of Purchase Price. 
 (a) The aggregate purchase price (the “Purchase Price”) for the Acquired Assets (other than the Acquired Vehicles) shall be (i) an
amount in cash equal to (A) $11,660,000, plus (or minus) (B) 60% of the amount (if any) by which the Closing Inventory Amount is more (or less) than the Baseline Inventory Amount, minus (C) the Inventory Reduction
(the amount determined pursuant to this clause (i) shall be referred to as the “Cash Portion”), and (ii) the assumption of the Assumed Obligations. 
 (b) At least three (3) business days prior to Closing, Sellers shall deliver to Purchaser a schedule setting forth a good faith estimate of the
Closing Inventory Amount and the Inventory Reduction, in each case, as of the close of business on the immediately preceding day based on a true and correct derivation from the Sellers’ books and records and prepared in a 

  

 16 

 
manner consistent with the determination of the Baseline Inventory Amount (“Estimated Inventory Amount”), which shall be certified by an
Executive Officer of Arrow and otherwise shall be in form and substance satisfactory to Purchaser. 
 (c) At the Closing, Purchaser shall
purchase the Acquired Assets and Assumed Obligations and, in exchange, shall pay PNC by wire transfer of immediately available funds, to an account designated by PNC no less than three (3) Business Days prior to the Closing Date, an amount in
cash equal to the (A) Estimated Purchase Price minus (B) the Escrow Deposit Amount minus (C) the amount of cure payment made by Purchaser on behalf of Sellers with respect to Sellers’ obligations to pay all amounts
related to cure obligations pursuant to Section 2.6 minus (D) the Inventory Financing; provided, that Sellers acknowledge and agree that (i) the payments described in this Section 3.1(c) shall be made
directly to PNC (and not to Sellers), (ii) no payment shall be required to be made by Purchaser to Sellers at the Closing pursuant to this Agreement and (iii) none of Purchaser or its Affiliates shall have any liability or obligation to
Sellers with respect to any payments under this Section 3.1(c). 
 (d) Within 25 business days following the Closing Date,
Purchaser shall deliver to Arrow a schedule (in its final and binding form, the “Closing Balance Sheet”), setting forth the Closing Inventory Amount, the Inventory Reduction and a certificate setting forth the resulting Cash Portion
calculated with reference to the Closing Inventory Amount and the Inventory Reduction (in its final and binding form, together with the Closing Balance Sheet, the “Purchase Price Calculation”); provided, that Purchaser shall
give Sellers prior notice, and Sellers shall be entitled, at their sole cost and expense, to designate one (1) representative reasonably acceptable to Purchaser, to observe any physical counting of Inventory at any of the Primary Facilities
that is conducted by Purchaser (whether prior to or after the Closing Date) for purposes of preparing the Closing Balance Sheet so long as such representative does not interfere, or otherwise participate in any respect with such counting. The
Closing Balance Sheet shall include all known adjustments required in a year-end closing of the books and shall be prepared in a manner consistent with GAAP. Sellers shall cooperate as reasonably requested in connection with the preparation of the
Purchase Price Calculation. The Purchase Price Calculation shall become final and binding upon the parties on the twenty-fifth (25th) day following Arrow ‘s receipt thereof, unless Arrow gives written notice of its disagreement (a
“Notice of Disagreement”) to Purchaser prior to such date. Any Notice of Disagreement shall specify in reasonable detail the nature and dollar amount of any disagreement so asserted and shall be delivered only if (and to the extent
that) Arrow reasonably and in good faith determines that the Purchase Price Calculation and the resulting Cash Portion calculated with reference thereto delivered by Purchaser has not been determined in accordance with the guidelines and procedures
set forth in this Agreement. If a timely Notice of Disagreement is received by Purchaser, then the Purchase Price Calculation (as revised in accordance with clause (x) or (y) below) shall become final and binding upon the parties on the
earlier of (x) the date the parties resolve in writing any differences they have with respect to the matters specified in the Notice of Disagreement or (y) the date all matters in dispute are finally resolved in writing by the Accounting
Firm. During the 10-day period following delivery of a Notice of Disagreement, the parties shall seek in good faith to resolve in writing any differences which they have with respect to the matters specified in the Notice of Disagreement. Following
delivery of a Notice of Disagreement, Purchaser and its agents and representatives shall be permitted to review Arrow’s and its representatives’ working papers relating to the Notice of Disagreement. At the end of the 

  

 17 

 
10-day period referred to above, the parties shall submit in writing to an independent auditing firm of national recognition mutually selected by Purchaser
and Sellers (the “Accounting Firm”) for review and resolution of all matters (but only such matters) that remain in dispute and that were properly included in the Notice of Disagreement. The parties shall instruct the Accounting
Firm to make a final determination (the “Final Determination”) of the Closing Inventory Amount, the Inventory Reduction and the resulting Purchase Price calculated with reference to such amounts to the extent such amounts are in
dispute, solely in accordance with the guidelines and procedures set forth in this Agreement. The parties will cooperate with the Accounting Firm during the term of its engagement. The parties shall instruct the Accounting Firm to not assign a value
to the Final Determination other than the value assigned by Purchaser, on the one hand, or Arrow, on the other hand. The parties shall also instruct the Accounting Firm to make the Final Determination based solely on presentations by Purchaser and
Sellers which are in accordance with the guidelines and procedures set forth in this Agreement (i.e., not on the basis of an independent review). The Purchase Price Calculation, the determination of the Closing Inventory Amount and the
Inventory Reduction, and the resulting Purchase Price calculated with reference thereto shall become final and binding on the parties on the date the Accounting Firm delivers the Final Determination in writing to the parties (which shall be
requested by the parties to be delivered not more than 30 days following submission of such disputed matters). The fees and expenses of the Accounting Firm shall be allocated solely to the party whose value of the Purchase Price was determined
to be unsuccessful (it being understood that the party whose value of the Purchase Price was determined to be successful shall not be responsible for any portion of the fees or expenses of the Accounting Firm). 
 (e) Promptly after the Purchase Price Calculation becomes final and binding on the parties under Section 3.1(d) above, the Estimated Purchase
Price shall be recalculated by giving effect to the final and binding determination of the Closing Inventory Amount and the Inventory Reduction (as recalculated, the “Final Purchase Price”). If the Final Purchase Price is greater
than the Estimated Purchase Price, Purchaser shall, within three business days after the Purchase Price Calculation becomes final and binding on the parties, make payment by wire transfer to Sellers, to an account designated by Sellers, in
immediately available funds, of the amount of such difference, together with interest thereon at a rate per annum equal to the Applicable Rate, calculated on the basis of the actual number of days elapsed divided by 360, from the Closing Date
to the date of payment. If the Estimated Purchase Price is greater than the Final Purchase Price, Sellers shall (or shall cause the Escrow Agent to), within three business days after the Purchase Price Calculation becomes final and binding on the
parties, make payment by wire transfer to Purchaser in immediately available funds, to an account designated by Purchaser, of the amount of such difference, together with interest thereon at a rate per annum equal to the Applicable Rate, calculated
on the basis of the actual number of days elapsed divided by 360, from the Closing Date to the date of payment; it being understood that, pursuant to the Sale Order, if any amounts are owed by Seller to Purchaser under this Agreement after the
Closing Date in excess of the Escrow Deposit Amount, PNC shall, on behalf of Sellers, make such payment to Purchaser from proceeds received by PNC under this Agreement. Any Escrow Funds remaining after giving effect to any payment required to be
made pursuant to this Section 3.1(e) shall be distributed by wire transfer to PNC, on behalf of Sellers, no later than five (5) business days after the Purchase Price Calculation becomes final and binding on the parties under
Section 3.1(d). 
  

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 (f) At the Closing, Purchaser shall purchase the Acquired Vehicles and, in exchange, shall pay an
aggregate purchase price of $350,000. Such payment shall be made in immediately available funds to (i) First State Bank, Ford Motor Credit and GMAC, in each case, in the amount (but not to exceed $350,000 in the aggregate) set forth in their
respective pay-off letters, as delivered to Purchaser pursuant to Section 8.9, with respect to the Acquired Vehicles and (ii) to the extent that the amount paid pursuant to clause (i) hereof is less than $350,000, the remaining
balance shall be paid to BCGG. 
 (g) Payments made pursuant to this Section 3.1 shall be allocated among the assets purchased in
accordance with Section 12.7. 
 3.2 Further Assurances. From time to time after the Closing and without further
consideration, (i) Sellers, upon the request of Purchaser, shall execute and deliver such documents and instruments of conveyance and transfer as Purchaser may reasonably request in order to consummate more effectively the purchase and sale of
the Acquired Assets as contemplated hereby and to vest in Purchaser title to the Acquired Assets transferred hereunder, or to otherwise more fully consummate the transactions contemplated by this Agreement, and (ii) Purchaser, upon the request
of Sellers, shall execute and deliver such documents and instruments of contract or lease assumption as Sellers may reasonably request in order to confirm Purchaser’s Liability for the Assumed Obligations or otherwise to more fully consummate
the transactions contemplated by this Agreement. 
 3.3 Deposit. No later than 5:00 p.m. (Central time) on the second business
day immediately following entry of the Bidding Procedures Order on the Bankruptcy Court’s docket, Keystone shall (or shall cause Purchaser to) deposit with the Escrow Agent an amount equal to the Escrow Deposit Amount. The fees and charges of
the Escrow Agent shall be paid one-half by Sellers and one-half by Purchaser. 
 ARTICLE IV 
 REPRESENTATIONS AND WARRANTIES OF SELLERS 
 Sellers jointly and severally represent and warrant to Purchaser that the statements contained in this Article IV are correct and complete as of the date of this Agreement and as of the Closing Date, except as expressly set forth in
the Schedules delivered by Sellers to Purchaser on the date hereof. The information disclosed in the Schedules shall be deemed to qualify only the particular subsection or subsections specified for such item; provided, however, that
any item that is disclosed in a particular section or subsection of the Schedules shall be deemed to be disclosed in a particular section or subsection of the Schedules where such disclosure would otherwise be appropriate to the extent that it is
reasonably apparent from the express language of such disclosure that it applies to such other section or subsection. Nothing in the Schedules shall be deemed adequate to disclose an exception to a representation or warranty made herein, however,
unless the Schedule identifies the exception with reasonable particularity and describes the relevant facts in reasonable detail. The mere listing (or inclusion of a copy) of a document or other item shall not be deemed adequate to disclose an
exception to a representation or warranty made herein (unless the representation or warranty has to do with the existence of the document or other item itself). 
  

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 4.1 Validity of Agreement. Subject to any necessary authorization from the Bankruptcy Court, each
Seller has full power and authority to execute and deliver the Transaction Documents to which it is a party and to consummate the transactions contemplated hereby and thereby. The board of directors (or similar governing body) of each Seller has
duly approved the Transaction Documents to which such Person is a party and has duly authorized the execution and delivery of such Transaction Documents and the consummation of the transactions contemplated thereby. No other corporate or
organizational proceedings on the part of any Seller are necessary to approve and authorize the execution and delivery of the Transaction Documents to which such Person is a party and the consummation of the transactions contemplated thereby. All
Transaction Documents to which any Seller is a party have been duly executed and delivered by such Person, except such Transaction Documents that are required by the terms hereof to be executed and delivered by such Person after the date hereof, in
which case such Transaction Documents will be duly executed and delivered by such Person at or prior to the Closing, and, subject to any necessary authorization from the Bankruptcy Court, all Transaction Documents constitute, or will constitute, as
the case may be, the valid and binding agreements of Sellers, enforceable against Sellers in accordance with their terms. 
 4.2
Organization, Standing and Power. Each Seller is duly organized, validly existing and in good standing under the Laws of the state of its formation and, is qualified to do business in every jurisdiction where the failure to be so qualified
would have a Material Adverse Effect. All jurisdictions in which each Seller is qualified to do business are set forth on Schedule 4.2. Each Seller has full power and authority and all licenses, Permits and authorizations necessary to
own and operate its properties and to carry on the Business as now conducted by it. Correct and complete copies of each Seller’s articles of incorporation and by-laws have been furnished to Purchaser, which documents reflect all amendments made
thereto at any time prior to the date of this Agreement. Correct and complete copies of the minute books containing the records of meetings of the stockholders and board of directors, the stock certificate books and the stock record books of each
Seller have been furnished to Purchaser. No Seller is in default under or in violation of any provision of its articles of incorporation or by-laws. Subject to any necessary authorization from the Bankruptcy Court, each Seller has all requisite
corporate power and authority to own, lease and operate its properties, to carry on the Business as now being conducted and to execute and deliver the Transaction Documents, subject to Bankruptcy Court approval, and to perform its obligations
thereunder. 
 4.3 No Conflicts or Violations. Except as set forth on Schedule 4.3, the execution, delivery and
performance of the Transaction Documents and the consummation of the transactions contemplated thereby by Sellers do not and shall not (i) conflict with or result in any breach of any of the terms, conditions or provisions of,
(ii) constitute a default under, (iii) result in a violation of, (iv) give any Third Party the right to modify, terminate or accelerate any obligation under, (v) result in the creation of any Lien, Claim or Liability upon the
Acquired Assets, (vi) require any authorization, consent, approval, exemption or other action by or notice or declaration to, or filing with, any court or administrative or other Governmental Authority, or (vii) require any Seller to make
a payment to any Person as a result of the consummation of the transactions contemplated hereby, under the provisions of the articles of incorporation, by-laws or other constitutive documents of any Seller or any indenture, mortgage, lease, loan
agreement or other agreement or instrument to which any Seller is bound or affected, or any Law to which any Seller is subject or any Order to which any Seller is subject. 
  

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 4.4 Financial Statements and Related Matters. Set forth on Schedule 4.4 are copies of
Sellers’ (i) unaudited consolidated and consolidating balance sheet as of July 25, 2008 (the “Latest Balance Sheet”) and the related statements of income and cash flows for the eleven-month period then ended and
(ii) audited consolidated and consolidating balance sheets and statements of income and cash flows for the fiscal years ended August 25, 2006 and 2007. Each of the foregoing financial statements (including in all cases the notes thereto,
if any) (together with any financial statements delivered to Purchaser, the “Financial Statements”) is accurate and complete in all material respects, is consistent with the Customer Records (which, in turn, are accurate and
complete in all material respects), presents fairly Sellers’ financial condition and results of operations as of the times and for the periods referred to therein, and has been prepared in accordance with GAAP, subject in the case of unaudited
financial statements to changes resulting from normal year-end adjustments for recurring accruals (which shall not be material individually or in the aggregate) and to the absence of footnote disclosure. 
 4.5 Title to Assets; Assets Necessary to Business. 
 (a) Sellers have good and marketable title to, or a valid leasehold interest in, or a valid license agreement to use, the Acquired Assets. Since the date of the Latest Balance Sheet, no Seller has purchased any
material amount of assets except in the Ordinary Course of Business. 
 (b) Except as described on Schedule 4.5(b), the Acquired
Assets are in good operating condition and repair (ordinary wear and tear excepted for assets other than Inventory), and are fit for use in the Ordinary Course of Business. 
 (c) Sellers own or lease all buildings, machinery, equipment, and other tangible assets necessary for the conduct of the Business as presently conducted.
The Acquired Assets constitute all of the assets, agreements, licenses and properties owned by Sellers (other than the Excluded Assets) and are all assets (tangible and intangible), agreements, licenses and properties necessary to conduct the
Business as presently conducted. 
 (d) Subject to Bankruptcy Court approval, Sellers have the power and the right to sell, assign and
transfer and Sellers will sell and deliver to Purchaser, and upon consummation of the transactions contemplated by this Agreement, Purchaser will acquire good and marketable title to the Acquired Assets, free and clear of all Claims and Liens other
than Permitted Liens. 
 (e) This Agreement and the documents contemplated hereby, when duly executed and delivered by Sellers to Purchaser
at the Closing, will effectively vest in Purchaser good and marketable title to the Acquired Assets, subject only to the Assumed Obligations and Permitted Liens. 
 4.6 Employee Benefit Plans. 
 (a) Schedule 4.6(a) sets forth a complete and accurate list
of each Employee Benefit Plan. Sellers have made available to Purchaser true and correct copies of each Employee Benefit Plan and all material documents pursuant to which such Employee Benefit Plans are maintained, funded and administered.

  

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 (b) Except as set forth on Schedule 4.6(b), no Employee Benefit Plan is a “employee
benefit plan” (as such term is defined under Section 3(2) of ERISA) that is subject to Title IV or Section 302 of ERISA or Section 412 of the Code. Sellers and each ERISA Affiliate have complied with and are in compliance
with the health care continuation requirements of Part 6 of Subtitle B of Title I of ERISA, Section 4980B of the Code and any similar state Law (“COBRA”). 
 4.7 Labor Matters. Except as set forth in Schedule 4.7: 
 (a) No Seller is a party to any collective bargaining agreement or has any relationship with any labor organization; 
 (b) Each Seller is, and for the past three (3) years has remained, in compliance in all material respects with all applicable Laws relating to employment, employment practices, or the employment of labor
(including provisions thereof relating to wages, hours, equal opportunity, collective bargaining, immigration, workplace safety, and the payment of social security an other Taxes), and has not engaged in any unfair labor practice or unlawful
employment practice. In addition, there are no material employment-related Proceedings pending or threatened against any Seller, and no material Proceedings have occurred within the past three (3) years; 
 (c) To the Knowledge of Sellers, no union organizing or decertification efforts are underway or threatened, and no such activities have occurred since
January 1, 2005. Neither of the Sellers has suffered any work stoppage, strike, lockout or other material labor dispute since January 1, 2005, and, to the Knowledge of Sellers, no such activities are threatened or underway; 
 (d) With respect to this transaction, any notice required under any law or contract has been, or prior to closing will be, given, and all bargaining
obligations with any employee representatives have been, or prior to closing will be, satisfied; and 
 (e) No Seller has implemented any
plant closing or layoff of employees that could implicate the WARN Act. 
 4.8 Litigation, Orders. Except as set forth on
Schedule 4.8, there are no Proceedings or Orders pending or, to the Knowledge of any Seller, threatened against or affecting any Seller at law or in equity, in the United States or elsewhere, or before or by (or that could come before)
any arbitrator or Governmental Authority (including any Proceedings with respect to the transactions contemplated by this Agreement); nor have there been any such Proceedings or Orders pending against or affecting any Seller during the past
three (3) years, other than Proceedings which, either individually or in the aggregate, are not reasonably likely to have a Material Adverse Effect. No Seller is subject to any Order of any Governmental Authority (or settlement enforceable
therein). 
 4.9 Subsidiaries and Affiliates; Ownership Interests. No Seller has any direct or indirect ownership interest in any
Person (other than another Seller) or right (contingent or otherwise) to acquire any direct or indirect ownership interest in any Person (other than another Seller), nor is any Seller a member of (nor is any portion of the Business conducted
through) any partnership or a participant in any joint venture or similar arrangement. 
  

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 4.10 Real Property Assets. Schedule 4.10 sets forth a list and brief description of
each Facility Lease. Except as set forth in Schedule 4.10, with respect to each Facility Lease, (i) the applicable Seller has the right to quiet enjoyment of all the Facilities for the full term of the lease or similar agreement
(and any renewal option related thereto) relating thereto, and the leasehold or other interest of the applicable Seller in the Facilities is not subject or subordinate to any Lien except for Permitted Liens, (ii) each Facility Lease creates a
good and valid leasehold in the relevant Facility and is in full force and effect, and (iii) the consummation of the transactions contemplated by this Agreement does not require the consent of any other party to such Facility Lease or result in
a breach of or default under such Facility Lease. The Facilities compromise all of the real property used or intended to be used, or otherwise related to, the Business. 
 4.11 Taxes. 
 (a) Each Seller has filed all Tax Returns that it was required to file. All such Tax
Returns were correct and complete in all material respects. All Taxes owed by any Seller (whether or not shown on any Tax Return) have been paid. No Seller is the beneficiary of any extension of time within which to file any Tax Return. With respect
to each Seller, no claim has ever been made by a Governmental Authority in a jurisdiction where such Seller does not file Tax Returns that such Seller is or may be subject to taxation by that jurisdiction. 
 (b) Each Seller has withheld and paid all Taxes required to have been withheld and paid in connection with amounts paid or owing to any employee,
independent contractor, creditor, stockholder, or other Third Party, and all Forms W-2 and 1099 (or any other applicable form) required with respect thereto have been properly completed and timely filed. 
 (c) There is no dispute or claim concerning any Tax Liability of any Seller claimed or raised by any authority in writing or, to the Knowledge of
Sellers, orally, Schedule 4.11(c) lists all federal, state, local, and foreign income Tax Returns filed with respect to any Seller for taxable periods ended on or after December 31, 2003, indicates those Tax Returns that have been
audited, and indicates those Tax Returns that currently are the subject of audit. Sellers have delivered to Purchaser correct and complete copies of all federal income Tax Returns, examination reports, and statements of deficiencies assessed against
or agreed to by any Seller with respect to all taxable periods ending on or after December 31, 2003. 
 (d) None of Sellers has waived
any statute of limitations in respect of Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency. 
 (e) None
of the Assumed Liabilities is an obligation to make a payment that will not be deductible under §280G of the Code. No Seller is a party to any Tax allocation or sharing agreement. No Seller (A) has been a member of an affiliated group
filing a consolidated federal income Tax Return (other than a group the common parent of which was Arrow) and (B) has any Liability for the Taxes of any Person (other than any Seller) under Reg. §1.1502-6 (or any similar provision of
state, local, or foreign law), as a transferee or successor, by contract, or otherwise. 
  

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 4.12 Compliance with Law. Each Seller is in compliance in all material respects with, and is not
in default in any material respect with, any applicable Laws, and no Proceedings have been filed or initiated against any Seller alleging a violation of any such Laws, and no Seller has received notice of any such violations. 
 4.13 Cure Amounts. Schedule 4.13 sets forth all of the costs of cure that Sellers must satisfy to permit them to assume and assign the
Assumed Executory Contracts under section 365 of the Bankruptcy Code. 
 4.14 Environmental Matters. Except as set forth on
Schedule 4.14: 
 (a) Each Seller, with respect to the Acquired Assets, has complied with, and is in compliance in all material
respects with, all Environmental Laws (which compliance has included obtaining and complying with all permits, licenses and other authorizations required pursuant to Environmental Laws (“Environmental Permits”); 
 (b) Each Seller, with respect to the Acquired Assets, has not received oral or written notice with respect to any actual or alleged violation of
Environmental Laws, or any Liabilities or potential Liabilities arising under Environmental Laws; 
 (c) With respect to the Acquired Assets,
no Seller nor any predecessor or Affiliate of any Seller has generated, treated, stored, disposed of, arranged for or permitted the disposal of, transported, handled, Released, or exposed any Person to, any hazardous material, substance or waste or
owned or operated any property or facility (and no such property or facility is contaminated by any hazardous material, substance or waste) so as to give rise to any current or future Liabilities arising under Environmental Laws; 
 (d) Sellers have not, with respect to the Acquired Assets, either expressly or by operation of Law, assumed or undertaken any Liability, including any
obligation for corrective or remedial action, of any other Person relating to any Environmental Laws; 
 (e) No Seller nor any predecessor or
Affiliate of any Seller has any Liability with respect to the presence or alleged presence of asbestos or other hazardous materials in any product or item or at or upon any Facilities constituting Acquired Assets; 
 (f) Sellers have provided to Purchaser all environmental audits, reports, soil and groundwater studies, and other material environmental documents
relating to the Acquired Assets; 
 (g) None of the following exists at any of the Facilities: (i) underground storage tanks,
(ii) asbestos-containing material in any form or condition, (iii) materials or equipment containing polychlorinated biphenyls, or (iv) landfills, surface impoundments, or disposal areas; and 
 (h) Neither this Agreement nor the consummation of the transactions contemplated by this Agreement will result in any obligations for site investigation
or cleanup, or notification to or consent of any Governmental Authority or third parties, pursuant to any of the so-called “transaction-triggered” or “responsible property transfer” Environmental Laws. 
  

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 4.15 Inventory. Except for any defective or damaged item, the Inventory consists of materials and
goods useable or saleable in the Ordinary Course of Business (taking into account, without limitation, the quantity and quality of the Inventory) and is valued in a manner consistent with the determination of the Baseline Inventory Amount. None of
the Inventory is subject to any consignment, bailment, warehousing or similar agreement, except as set forth on Schedule 4.15. 
 4.16 Absence of Undisclosed Liabilities. Except as set forth in this Agreement or Schedule 4.16, no Seller has any obligations or Liabilities arising out of transactions entered into at or prior to the Closing, or any
action or inaction at or prior to the Closing, or any state of facts existing at or prior to the Closing, except (i) obligations under Material Contracts (but not Liabilities for breaches thereof), (ii) Liabilities reflected on the Latest
Balance Sheet, and (iii) Liabilities which have arisen after the date of the Latest Balance Sheet in the Ordinary Course of Business or otherwise in accordance with the terms and conditions of this Agreement (none of which is a Liability for
breach of contract, breach of warranty, tort or infringement or a claim or lawsuit or an environmental Liability). 
 4.17 Affiliated
Transactions. Except as disclosed on Schedule 4.17, no Insider is a party to any agreement, contract, commitment or transaction with any Seller or has any interest in the Acquired Assets or any property, real or personal or mixed,
tangible or intangible of any Seller. 
 4.18 Intellectual Property. 
 (a) Schedule 4.18 sets forth a complete and correct list of all of the following that are either owned by any Seller or used or held for use
in connection with the Business as presently conducted: 
 (i) patented or registered Intellectual Property and pending patent applications
or other applications for registration or patent of Intellectual Property (including Internet domain names); 
 (ii) trade names, and
corporate names and material unregistered trademarks and service marks; and 
 (iii) computer software (other than commercially available
off-the-shelf with a replacement cost and/or annual license fee of less than $10,000. 
 (b) Each Seller owns and possesses all right, title
and interest in and to, or has a valid and enforceable license to use pursuant to a written license agreement set forth on Schedule 4.20(a), all of the Intellectual Property necessary for or used or held for use in the operation of the
Business as presently conducted (including all of the Intellectual Property set forth on Schedule 4.18) (collectively, the “Seller Intellectual Property”). The Seller Intellectual Property is not subject to any Liens
(other than Liens that will be removed and stricken as against the Acquired Assets pursuant to the Sale Order), and is not subject to any restrictions or limitations regarding use or disclosure other than pursuant to a written license agreement set
forth on Schedule 4.20(a). 
  

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 (c) No Seller has infringed, misappropriated or otherwise conflicted with, and the operation of the
Business as presently conducted does not infringe, misappropriate or otherwise conflict with, any Intellectual Property of any Third Party. To the Knowledge of Sellers, there are no facts which indicate a likelihood of any of the foregoing and no
Seller has received any notices regarding any of the foregoing (including any demands or offers to license any Intellectual Property from any Third Party). 
 (d) Each Seller has taken all commercially reasonable actions to maintain, enforce and protect all of the Seller Intellectual Property and will continue to maintain, enforce and protect all of the Seller Intellectual
Property until the Closing. To the Knowledge of Sellers, the owners of any of the Intellectual Property licensed to Sellers have taken all necessary and desirable action to maintain, enforce and protect the Intellectual Property covered by such
licenses. 
 (e) To the Knowledge of Sellers, no Third Party has infringed, misappropriated or otherwise conflicted with any of the Seller
Intellectual Property. 
 (f) Immediately subsequent to the Closing, the Seller Intellectual Property and the Systems will be owned by or
available for use by Purchaser on terms and conditions identical to those under which Sellers owned or used the Seller Intellectual Property immediately prior to the Closing. 
 (g) All of the Seller Intellectual Property is valid, subsisting and enforceable, and no claim by any Third Party contesting the validity,
enforceability, use or ownership of any of the Seller Intellectual Property has been made, is currently outstanding or to the Knowledge of Sellers is threatened. 
 (h) No loss or expiration of any of the Seller Intellectual Property is pending or, to the Knowledge of Sellers, threatened or reasonably foreseeable, except for patents expiring at the end of their statutory terms
(and not as a result of any act or omission by any Seller, including a failure by any such Person to pay any required maintenance fees). 
 (i) The computer systems, including software, hardware, networks and interfaces used by Sellers (collectively, the “Systems”) are sufficient for the immediate needs of the Business (including as to capacity and ability to
process anticipated volumes in a timely manner). 
 (j) In the prior twelve (12) months, there have been no failures or bugs in or
breakdowns or continued substandard performance of the Systems (as a whole or with respect to any portion thereof) which have caused any substantial disruption or interruption in or use of the Systems (as a whole or with respect to any portion
thereof) and, to the Knowledge of Sellers, no fact or matter exists which may disrupt or interrupt or affect the use of the Systems following the Closing on the same basis as the Systems are presently used by Sellers. 
 (k) Except for hardware and software included in the Systems and licensed from a Third Party, the Systems used in connection with the Business are owned
and operated by and are under the control of Sellers and are not wholly or partly dependent on any facilities which are not included in the Acquired Assets or the Assumed Liabilities. 
  

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 (l) Each Seller owns and possesses the entire right, title and interest in and to all Intellectual
Property created or developed by, for or under the direction or supervision of the applicable Seller relating to the Business or to the actual or demonstratively anticipated research or development conducted by any Seller; and all Persons who have
participated in the creation or development of any such Intellectual Property have executed and delivered to the applicable Seller a valid and enforceable agreement (i) providing for the non-disclosure of such Person of any confidential
information of such Seller, and (ii) providing for the assignment by such Person to such Seller of any Intellectual Property rights arising out of such Person’s employment by, engagement by or other contract with such Seller. Except as set
forth on Schedule 4.18, after the Closing, it is not and will not be necessary for Purchaser to utilize any Intellectual Property owned by any current or former employees, consultants or independent contractors of Sellers. 
 4.19 Insurance. Schedule 4.19 lists and describes all policies of insurance owned, held, or maintained by or for the benefit of
Sellers or insuring the Acquired Assets, including the type and amount of coverage and the expiration dates of the policies. Sellers have made available to Purchaser all policies of insurance owned, held or maintained by or for the benefit of the
Acquired Assets. Except as set forth on Schedule 4.19, (a) current premiums and any other obligations under such insurance have been paid and all such policies are valid and enforceable and in full force and effect on the date
hereof and no Seller is in default with respect to its obligations under any such insurance policies, and (b) no Seller has received any notice within the last 90 days threatening suspension, revocation, modification or cancellation of any
insurance policy or a material increase in any premium in connection therewith. 
 4.20 Contracts. 
 (a) Except as set forth on Schedule 4.20(a), no Seller is a party to or bound by, whether written or oral, any contract or agreement of any
form material to the Acquired Assets, whether or not entered into in the Ordinary Course of Business, including any Contract involving any Intellectual Property (other than licenses for commercially available off-the-shelf with a replacement cost
and/or annual license fee of less than $10,000) (each, a “Material Contract”). 
 (b) Except as disclosed on
Schedule 4.20(b), (i) no Material Contract has been breached or canceled by the other party, (ii) except for defaults that will be cured through the cure payments listed on Schedule 4.13 or arising solely as a
consequence of the commencement of the Chapter 11 Cases, neither any Seller nor, to the Knowledge of Sellers, any other party thereto is in default or breach in any material respect under the terms of any Material Contract and, to the Knowledge
of Sellers, no event or circumstance has occurred that, with notice or lapse of time or both, would constitute a default or breach thereunder, (iii) no Seller has assigned, delegated or otherwise transferred to any Person any of its rights,
title or interest under any Material Contract, and (iv) each Material Contract is legal, valid, binding, enforceable and in full force and effect and, subject to the terms of this Agreement, will continue as such following the consummation of
the transactions contemplated hereby. 
 (c) Sellers have provided Purchaser with a true and correct copy of all Material Contracts, in each
case together with all amendments, waivers or other changes thereto (all of which are disclosed on Schedule 4.20(a)). Schedule 4.20(a) contains an accurate and complete summary of all material terms of any oral contracts
referred to therein. 
  

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 4.21 Relationships with Customers and Suppliers. Sellers have provided Purchaser with a true and
accurate list of (i) the names and addresses of the top twenty customers of Sellers (on a consolidated basis) (by dollar volume of sales to such customers) and (ii) a list of the names and addresses of the suppliers of Sellers (on a
consolidated basis) (by dollar volume of purchases from such suppliers), in each case for the fiscal years ended August 25, 2006 and 2007 and the eleven-month period ended since the date of the Latest Balance Sheet (and with respect to such
customers, the committed volume of purchases by such customers for the fiscal years ending August 25, 2008 and 2009). Except as disclosed on Schedule 4.21, as of the date of this Agreement, no Seller has received any indication from
any material customer of Sellers to the effect that such customer will stop, materially decrease the rate of, or materially change the terms (whether related to payment, price or otherwise) with respect to, buying materials, products or services
from any Seller and no Seller has received any indication from any supplier to any Seller to the effect that such supplier will stop, materially decrease the rate of, or materially change the terms (whether related to payment, price or otherwise)
with respect to, supplying materials, products or services to such Seller. 
 4.22 Brokers. No Seller has incurred any Liability to
any broker, finder or agent with respect to the payment of any commission regarding the consummation of the transactions contemplated hereby. 
 4.23 Bankruptcy. Each Seller shall file, no later than 5:00 pm (Central time) on the second business day after the date hereof, a petition for relief under Chapter 11 of the Bankruptcy Code in the Bankruptcy Court, and as of the
Closing Date, each Seller shall be a party to the Chapter 11 Cases. 
 4.24 Absence of Certain Changes. Since August 25,
2007, there has occurred no fact, event or circumstance which has had or would reasonably be expected to have a Material Adverse Effect. Except as expressly contemplated by this Agreement and as set forth on Schedule 4.24, since
August 25, 2007, Sellers have conducted the Business only in the Ordinary Course of Business and no Seller has: 
 (a) authorized for
issuance, issued, sold, delivered, or granted any notes, bonds or other debt securities or any capital stock or other equity securities or any securities or rights convertible, exchangeable or exercisable into any capital stock or other equity
securities; 
 (b) incurred any Indebtedness; 
 (c) discharged or satisfied any Lien or paid any material obligation or Liability, other than current Liabilities paid in the Ordinary Course of Business; 
 (d) declared, set aside or made any payment or distribution of cash or other property with respect to its capital stock or other equity securities or
purchased, redeemed or otherwise acquired any shares of its capital stock or other equity securities (including any warrants, options or other rights to acquire its capital stock or other equity securities); 
  

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 (e) sold, assigned, transferred, leased, licensed, failed to maintain or abandoned any of its assets,
tangible or intangible, or taken any action that could reasonably be expected to cause the loss, lapse or abandonment of any Seller Intellectual Property, except in the Ordinary Course of Business; 
 (f) made or granted any bonus or any wage or salary increase to, or changed any material employment or retention terms with, any employee or group of
employees or contractors, including salespersons (other than bonuses and wage increases in the Ordinary Course of Business), entered into or increased amount or duration of any severance arrangement, or made or granted any increase in any employee
benefit plan or arrangement, or amended or terminated any existing employee benefit plan or arrangement or adopted any new employee benefit plan or arrangement, or entered into, modified or terminated any collective bargaining agreement or
relationship; 
 (g) made capital expenditures or commitments therefor in excess of $25,000 in the aggregate (but has made all capital
expenditures required to be made in the Ordinary Course of Business to preserve and maintain the Business); 
 (h) made any loans or advances
to, guarantees for the benefit of, or any investments in, any Persons or formed any Subsidiary; 
 (i) suffered any damage, destruction or
casualty loss exceeding $10,000 in the aggregate, whether or not covered by insurance, or experienced any material changes in the amount and scope of insurance coverage; 
 (j) made any change in its cash management practices or in any method of accounting or accounting policies, or made any write-down in the value of its inventory that is material or outside of the Ordinary Course of
Business; 
 (k) other than compensation paid in the Ordinary Course of Business, directly or indirectly engaged in any transaction or
entered into, amended or terminated, any arrangement with any of its officers, directors, shareholders or other Affiliates; 
 (l) amended
its charter, bylaws or other organizational documents; 
 (m) taken any action or omitted to take any action which act or omission would
reasonably be expected to have a Material Adverse Effect; 
 (n) entered into any new line of business, or incurred or committed to incur any
capital expenditures, obligations or Liabilities in connection therewith; 
 (o) entered into any acquisition agreement or agreement to
acquire by merger, consolidation or otherwise, or agreement to acquire a substantial portion of the assets of, or in any other manner, any business of any other Person; 
 (p) cancelled or waived (i) any right material to the operation of the Business or (ii) any debts or claims against any of its Affiliates; 
  

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 (q) accelerated, terminated, modified or cancelled any agreement, contract, lease, license or other
arrangement involving more than $25,000; or 
 (r) agreed, whether orally or in writing, to do any of the foregoing. 
 ARTICLE V 
 REPRESENTATIONS AND
WARRANTIES OF PURCHASER 
 Purchaser represents and warrants to Sellers as follows: 
 5.1 Organization. Purchaser is validly existing and in good standing under the laws of the State of Delaware and has the full power and authority
to execute, deliver and perform this Agreement and to consummate all transactions contemplated hereby. 
 5.2 Authority. The
execution, delivery and performance by Purchaser of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary action on the part of Purchaser and do not and will not violate any provisions
of its organizational documents, any applicable Law or any contract or Order binding upon it. This Agreement constitutes a valid and binding agreement of Purchaser, enforceable against Purchaser in accordance with its terms, subject to applicable
bankruptcy, reorganization, insolvency, moratorium and other Laws affecting creditors’ rights generally from time to time in effect, and to general equitable principles. 
 5.3 Consents. No notice to, filing with, authorization of, exemption by, or consent (other than the approval of the Bankruptcy Court) of any
Person is required in order for Purchaser to consummate the transactions contemplated hereby. 
 5.4 Brokers. Purchaser has incurred
no Liability to any broker, finder or agent with respect to the payment of any commission regarding the consummation of the transactions contemplated hereby for which the Owner or any Seller has or could have any Liability. 
 5.5 No Conflicts or Violations. Except as set forth on Schedule 5.5, to the knowledge of Purchaser, the execution, delivery and
performance of the Transaction Documents and the consummation of the transactions contemplated thereby by Purchaser does not and shall not (i) conflict with or result in any breach of any of the terms, conditions or provisions of,
(ii) constitute a default under, (iii) result in a violation of, (iv) give any Third Party the right to modify, terminate or accelerate any obligation under or (v) require any authorization, consent, approval, exemption or other
action by or notice or declaration to, or filing with, any court or administrative or other Governmental Authority, under the provisions of the articles of incorporation, by laws or other constitutive documents of Purchaser or any other agreement or
instrument to which Purchaser is bound or affected, or any Law to which Purchaser is subject or any Order to which Purchaser is subject in such a way as to materially impair or delay the ability of Purchaser to consummate the transactions.

 5.6 Disclosure. As of the date of this Agreement, Purchaser has no actual knowledge of any fact or circumstance that would make any
of the representations and warranties made by Sellers in this Agreement or the Schedules untrue; provided, however, that no such knowledge shall prohibit Purchaser from asserting claims against Sellers relating to any breach of any
representation or warranty made by Sellers to the extent such breach resulted from the willful or intentional misconduct or misrepresentation of Sellers. 
  

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 ARTICLE VI 
 COVENANTS OF SELLERS; OTHER AGREEMENTS 
 6.1 Consents and Approvals. 
 (a) Sellers shall, at their sole cost and expense, use commercially reasonable efforts (i) to obtain all necessary consents and approvals, as
reasonably requested by Purchaser, to consummate the purchase and sale of the Acquired Assets and the assignment of the Assumed Obligations, together with any other necessary consents and approvals (including all Environmental Permits) to consummate
the transactions contemplated hereby, and (ii) to make, as reasonably requested by Purchaser, all filings, applications, statements and reports to all authorities that are required to be made prior to the Closing Date by or on behalf of Sellers
or any of their Affiliates pursuant to any applicable Regulation in connection with this Agreement and the transactions contemplated hereby. In the event that any Contract or other license or agreement necessary for the operation of the Business is
not transferable or replacements therefor are not obtainable on or before the Closing, but such Contracts or other licenses or agreements are obtainable after the Closing, Sellers shall continue to use commercially reasonable efforts in cooperation
with Purchaser after the Closing as may be required to obtain all required consents and approvals to transfer, or obtain replacements for, such Contracts or other licenses or agreements after Closing and shall do all things necessary to give
Purchaser the benefits that would be obtained under such Contracts or other licenses or agreements, in each case at Sellers’ sole cost and expense. 
 (b) Each of the parties shall give any other notices to, make any other filings with, and use commercially reasonable efforts to obtain, any other authorizations, consents and approvals of any Governmental Authority
in connection with the matters contemplated by this Agreement. 
 6.2 Access to Information and Facilities; Interim Financials.

 (a) Sellers agree that, prior to the Closing Date, Purchaser, Purchaser’s lender, and their respective advisors, representatives and
Affiliates (i) shall, upon reasonable notice and so long as such access does not unreasonably interfere with the business operations of any Seller, have full access during normal business hours to all customers and suppliers of the Business and
to all Facilities, and (ii) shall be entitled to make such reasonable investigation of the properties, businesses and operations of Sellers (including any environmental audits and investigations and a physical counting of Inventory) and such
examination of the Customer Records and financial condition of Sellers as it reasonably requests and to make extracts and copies to the extent necessary of the Customer Records; provided, that Sellers acknowledge and agree that Purchaser
shall be entitled, at its sole cost and expense, to provide for additional security personnel to be posted at each of the Facilities prior to the Closing Date to monitor Inventory; provided, further, that no investigation pursuant to
this Section 6.2 shall affect any representations or warranties made herein or the conditions to the obligations of the respective parties to consummate the transactions contemplated by this Agreement. 
  

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 (b) Sellers shall deliver to Purchaser copies of Sellers’ interim monthly and year-to-date
consolidated financial statements as soon as reasonably practicable (and in any event within 15 days) following the end of each monthly accounting period during the period between the date of this Agreement and the Closing Date. These financial
statements shall include consolidated and consolidating balance sheets, and related statements of income and thirteen-week cash flows (such statements of cash flows to be updated weekly until the Closing) for the Business, as well as an explanation
of the assumptions and the accounting policies and practices used in preparation thereof and such other matters as Purchaser may reasonably request and, if any, interim statements and operating reports filed with the United States Trustee or the
Bankruptcy Court. 
 6.3 Conduct of the Business Pending the Closing. Unless otherwise prohibited by the Bankruptcy Court, except as
otherwise expressly contemplated by this Agreement or with the prior written consent of Purchaser, from the date hereof until the Closing Date, Sellers shall (i) except as otherwise affected by the commencement of the Chapter 11 Cases, conduct
the Business in the Ordinary Course of Business (including with respect to the payment of accounts payable of Sellers), (ii) except as otherwise affected by the commencement of the Chapter 11 Cases, use commercially reasonable efforts to
preserve intact the Business, to keep available the services of its current employees and agents, and to maintain its relations and goodwill with its suppliers, customers, distributors and any others with whom or with which it has business
relations, (iii) use commercially reasonable efforts to maintain appropriate levels of Inventory (consistent with past practice) and (iv) not take any action inconsistent with this Agreement or with the consummation of the Closing. Without
limiting the generality of the foregoing, except as otherwise expressly contemplated by this Agreement or with the prior written consent of Purchaser or except as described on Schedule 6.3, from the date hereof until the Closing Date, to
the extent not prohibited by the Bankruptcy Court, each Seller shall: 
 (a) not sell, assign, transfer, convey, pledge, mortgage, lease,
license or otherwise dispose of or encumber any of the Acquired Assets, or any interests therein, other than in the Ordinary Course of Business; provided, that to the extent that any Acquired Asset is leased by Sellers on the date hereof
pursuant to a lease that, pursuant to its terms, expires on or prior to the Closing Date, Sellers hereby agree to exercise the purchase option (or any other similar right) with respect to such Acquired Asset in accordance with the terms of such
lease and pay all amounts owed thereunder to acquire title to such Acquired Asset; provided, however, that the foregoing shall not restrict Sellers from selling Defective Inventory and Slow Moving Inventory in any manner prior to the
Closing Date; 
 (b) not make any material change in its methods of management, marketing, accounting or operating (or practices relating to
payments); 
 (c) report periodically to Purchaser concerning the status of the Business, the Acquired Assets and its operations and
finances; 
 (d) not take any action which is inconsistent with its obligations under this Agreement; 
  

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 (e) maintain the Acquired Assets in good operating condition and repair, subject to ordinary wear and
tear; 
 (f) continue all existing policies of insurance (or comparable insurance) of or for the benefit of Sellers in full force and effect
and at least at such levels as are in effect on the date hereof, up to and including the Closing (and not cancel any such insurance or take, or fail to take, any action that would enable the insurers under such policies to avoid Liability for claims
arising out of occurrences prior to the Closing); 
 (g) not enter into any transaction or make or enter into any contract or commitment
(whether written or oral) or amend or terminate any material agreement or commitment, except in the Ordinary Course of Business; 
 (h)
purchase or place any order for Private Label Inventory; 
 (i) not enter into, or materially alter or amend any Material Contract, or
terminate or reject (whether pursuant to section 365 of the Bankruptcy Code or otherwise) any Contract or Facility Lease; 
 (j)
maintain the Customer Records in the usual, regular and ordinary manner and consistent with past practice; 
 (k) maintain compliance in all
material respects with all laws, rules and Regulations of all Governmental Authorities that relate to Sellers, the Business or the Acquired Assets; 
 (l) not implement any employee layoffs that could implicate the WARN Act; 
 (m) not incur any Liability, whether absolute, fixed or
contingent, except in the Ordinary Course of Business; 
 (n) not institute or settle any Proceeding or threatened Proceeding with any
Governmental Authority, or for an amount involving in excess of $25,000 in the aggregate, or involving equitable or injunctive relief; 
 (o)
not sell, transfer, license or otherwise dispose of, or agree to sell, transfer, license, abandon or otherwise dispose of, or permit to lapse, any Intellectual Property; 
 (p) not terminate, discontinue, close or dispose of any plant, Facility or business operation of Sellers; 
 (q) not, except as required by law or in connection with the Chapter 11 Cases, disclose the existence or the terms of this Agreement or the transactions contemplated hereby to the public or any customer, supplier or employee, without
obtaining the prior written approval of Purchaser (such approval not to be unreasonably withheld or delayed) relating to the contents and manner of presentation and publication thereof; provided, that Sellers shall, as soon as reasonably
practicable after making any such communication required by applicable law, give Purchaser a copy of the proposed disclosure; 
  

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 (r) not make, change or rescind any material Tax election, change an annual accounting period for Tax
purposes, adopt or change any accounting method for Tax purposes, file an amendment to any material Tax Return, enter into any closing agreement, settle or compromise any material Tax claim or assessment relating to Sellers, consent to any extension
or waiver of the limitation period applicable to any material Tax claim or assessment relating to Sellers, or take any similar action, if such election adoption, change, amendment, agreement, settlement, consent or other action would have the effect
of materially increasing the Tax liability of any of Sellers or decreasing any Tax attribute of any of Sellers (except to the extent that any such election , adoption, change, amendment, agreement, settlement, consent or other action or omission is
required by Law); 
 (s) not amend or modify their articles of incorporation, bylaws or constitutive documents; 
 (t) not change its cash management practices in any material respect; or 
 (u) not (i) take or agree or commit to take any action that would make any representation and warranty of Sellers hereunder inaccurate in any material respect at, or as of any time prior to, the Closing Date or
(ii) omit or agree to omit to take any action necessary to prevent any such representation or warranty from being inaccurate in any material respect at any such time. 
 6.4 Notification of Certain Matters. 
 (a) Sellers shall give prompt notice to Purchaser of (i) the occurrence or nonoccurrence of any event that would be likely to cause any representation or warranty of Sellers contained in this Agreement, or in connection with the
transactions contemplated hereunder, to be untrue or inaccurate in any material respect at any time from the date hereof to the Closing, (ii) any material failure of Sellers to comply with or satisfy any covenant, condition or agreement to be
complied with or satisfied by them hereunder, or (iii) the receipt of any Acquisition Proposal and shall deliver all written Acquisition Proposals to Purchaser as soon as practicable upon receipt thereof. Notwithstanding the foregoing, the
delivery of any notice pursuant to this Section 6.4(a) shall not (x) be deemed to amend or supplement any of the Schedules contemplated hereby, (y) be deemed to cure any breach of any representation, warranty covenant or
agreement or to satisfy any condition or (z) limit or otherwise affect the remedies available hereunder to the party receiving such notice. 
 (b) Sellers shall add Purchaser, and Purchaser’s counsel, to Sellers’ so-called “Rule 2002 notice list” and otherwise provide notice to Purchaser of all matters that are required to be served on Sellers’
creditors pursuant to the Bankruptcy Code and Rules. 
 6.5 Commercially Reasonable Efforts; Further Assurances. 
 (a) Sellers will use commercially reasonable efforts to obtain (i) the entry of the Bidding Procedures Order on the Bankruptcy Court’s docket
within ten (10) days of the Petition Date (but in no event later than the fifteenth (15th) day after the Petition Date) and (ii) the entry of the Sale Order on the Bankruptcy Court’s docket within forty (40) days of the
Petition Date (but in no event later than the forty-fifth (45th) day after the Petition Date). 
  

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 (b) Sellers shall execute such documents and use their commercially reasonable efforts to take or cause
to be taken all action and do or cause to be done all things necessary, proper or advisable to consummate the transactions contemplated by this Agreement (including to put Purchaser in actual possession and operating control of the Acquired Assets,
to effectuate, record or perfect the transfer of the Acquired Assets to Purchaser, to confirm the title of the Acquired Assets in Purchaser, to assist Purchaser in exercising rights relating thereto, to obtain all consents, approvals and
authorizations of third parties, to make all filings with and give all notices to third parties which may be necessary or required in order to effectuate the transactions contemplated hereby, and to obtain landlords’ estoppels and
landlords’ lenders’ waivers). Sellers shall use commercially reasonable efforts to fulfill or obtain the fulfillment of the conditions set forth in Article VIII of this Agreement. 
 6.6 Bankruptcy Actions. 
 (a) As soon
as practicable after the date hereof (and in no event later than 5:00 pm (Central time) on the second business day after the date hereof), Sellers shall make all filings necessary to initiate the Chapter 11 Cases in the Bankruptcy Court, and serve
notice thereof on interested parties as required by the Bankruptcy Code and Rules. 
 (i) Contemporaneous with commencing the Chapter 11
Cases, Sellers or an Affiliate of Sellers shall file with the Bankruptcy Court a motion in form and substance acceptable to Sellers and Purchaser (the “Sale Motion”) seeking, among other things, entry of the Bidding Procedures
Order, the Sale Order and the assumption of this Agreement. 
 (ii) Contemporaneous with filing the Sale Motion, Sellers shall:
(A) file a motion to shorten time of notice of the Sale Motion (the “Motion to Shorten Time”), and (B) provide, in form and substance acceptable to Purchaser, notice of hearing on the entry of the Bidding Procedures Order
pursuant to the Sale Motion and the Motion to Shorten Time as required by the Bankruptcy Code, the Rules and applicable local bankruptcy rules to all parties to Assumed Executory Contracts, all taxing, environmental and other governmental
authorities and agencies in each jurisdiction applicable to Sellers, all Persons asserting liens on the Acquired Assets, all potential bidders for the Acquired Assets identified by Sellers and to all other parties entitled to receive notice under
the Bankruptcy Code, the Rules and applicable local bankruptcy rules (collectively, the “Notice Parties”). 
 (iii) Within
five business days after commencing the Chapter 11 Cases, Sellers or an Affiliate of Sellers shall file with the Bankruptcy Court a motion seeking entry of the Assumption and Assignment Order. 
 (iv) Immediately after the Bankruptcy Court enters the Bidding Procedures order, or at such earlier time as Sellers shall determine (after notifying
Purchaser), Sellers shall serve notice on the Notice Parties disclosing the salient terms of this Agreement, the Bidding Procedures Order, the Expense Reimbursement, Purchaser’s identity and the transactions contemplated by this Agreement (the
“Sale Hearing Notice”); provided, that the Sale Hearing Notice shall be in form and substance acceptable to Purchaser. 
  

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 (b) Prior to filing with the Bankruptcy Court, Sellers shall provide Purchaser with a reasonable
opportunity to comment on all pleadings filed by Sellers with the Bankruptcy Court in connection with the commencement of the Chapter 11 Cases, DIP Financing, the Sale Motion, the Motion to Shorten Time and any other pleadings associated with this
Agreement and the transactions contemplated hereby or any other transaction(s) associated with the Acquired Assets, and each such pleading shall be acceptable to Purchaser. 
 6.7 Assignment of Contracts. 
 (a)
Sellers and Purchaser shall use commercially reasonable efforts to have included in the Assignment and Assumption Order an authorization for Sellers to assume the Assumed Contracts and the Assumed Leases and assign to Purchaser all Assumed Contracts
and Assumed Leases. In cases in which Sellers and Purchaser are unable to establish in good faith that a default exists, the relevant cure amount shall be set at $0.00. 
 (b) Subject to Section 2.1(b), Sellers shall, at Purchaser’s written direction (i) at any time prior to the eleventh (11th) day prior to the Sale Hearing, add any Contracts to
Schedule 2.1(a)(v) or (ii) at any time prior to the Sale Hearing, remove Assumed Executory Contracts from Schedule 2.1(a)(v). 
 (c) Purchaser shall be exclusively responsible for any Assumed Liabilities under all such Assumed Contracts and Assumed Leases, after Seller’s cure of all applicable monetary defaults in accordance with
Section 2.6. 
 6.8 Cure of Defaults. Sellers shall, at or prior to the Closing, cure any and all monetary defaults under
the Assumed Contracts and Assumed Leases, which defaults are required to be cured under the Bankruptcy Code in the amounts set forth in Schedule 2.6, respectively, so that such Assumed Contracts and Assumed Leases may be assumed by
Sellers and assigned to Purchaser in accordance with the provisions of section 365 of the Bankruptcy Code. 
 6.9 Subject to Entry of Sale
Order. This Agreement, and Sellers’ and Purchaser’s obligations hereunder, are subject to entry of the Sale Order or the Assignment and Assumption Order by the Bankruptcy Court and the consideration by Sellers of higher or better
competing bids pursuant to the Bidding Procedures Order and Section 8.2. 
 6.10 Exclusivity; No Solicitation of
Transactions. Sellers jointly and severally represent that, other than the transactions contemplated by this Agreement, no Seller is a party to or bound by any agreement with respect to a possible merger, sale, restructuring, refinancing or
other disposition of all or any material part of the Business or the Acquired Assets. As consideration for substantial expenditures of time, effort and expense undertaken and continuing by Purchaser in connection with the completion of its due
diligence review of the business and the preparation, negotiation, and execution of this Agreement, Sellers acknowledge and agree that (a) Purchaser shall be the stalking horse bidder at the Auction, (b) Sellers agree that no Person other
than Purchaser shall be the stalking horse bidder at the Auction and Sellers shall not participate in any negotiations for the purpose of naming any person other than Purchaser as the stalking horse bidder in the Auction, and (c) Sellers shall
actively oppose any effort by any other 

  

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Person to be the stalking horse bidder; provided, that consistent with their fiduciary duties to elicit the highest and best offer for the Acquired
Assets and to conduct the Auction, Sellers may solicit, encourage and negotiate higher or better offers for the Acquired Assets under the terms of the Bidding Procedures Order. 
 6.11 Taxes. 
 (a) On or prior to the
Closing (or after the Closing when due and payable to the extent such Taxes are due and payable after the Closing), Sellers shall pay all sales taxes, use taxes, payroll taxes, and Taxes which will be owed by Sellers and attributable to periods
prior to the Closing. 
 (b) Any sales, use, purchase, transfer, franchise, deed, fixed asset, stamp, documentary stamp, use or other Taxes
and recording charges due and which may be payable by reason of the sale of the Acquired Assets or the assumption of the Assumed Obligations under this Agreement or the transactions contemplated herein shall be borne and timely paid by Sellers, and
Sellers shall prepare and timely file all Tax Returns required to be filed in connection with such payments. 
 (c) All real property,
personal property, ad valorem or other similar Taxes with respect to the Acquired Assets for a taxable period which includes (but does not end on) the Closing Date shall be apportioned between Buyer, on the one hand, and Sellers, on the other hand,
based on the number of days included in such taxable period through and including the Closing Date and the number of days included in such period after the Closing Date. To the extent that any portion of a Tax required to be pro-rated under this
Section 6.11(c) is paid or required by law to be paid after the Closing Date but is required by the foregoing sentence to be borne by another party hereto, such other party shall pay or reimburse the party paying such Tax for the proper
portion of the Tax required to be so borne upon notice from the Tax-paying party of the amount of such Tax required to be paid or reimbursed. Each party shall timely and duly cause to be filed all Tax Returns and other documentation with respect to
all Taxes subject to this Section 6.11(c) which are required by applicable law to be filed by such party, and shall pay to the relevant Governmental Authority all such Taxes required to be paid by such party (subject to such
reimbursement as provided for herein). 
 ARTICLE VII 
 COVENANTS OF PURCHASER 
 7.1 Assumed Obligations. Subsequent to the Closing, Purchaser agrees
to be responsible for the payment and performance of the Assumed Obligations and shall indemnify and hold Sellers harmless with respect to the Assumed Obligations, including any loss, Liability, cost or expense (including legal fees, expenses and
court costs) arising out of or in connection with, or otherwise relating to, the Assumed Obligations. 
 7.2 Further Assurances.
Purchaser shall execute such documents and take such further actions as may be reasonably required to carry out the provisions of this Agreement and the transactions contemplated hereby. Purchaser shall use commercially reasonable efforts to fulfill
or obtain the fulfillment of the conditions set forth in Article IX. 
  

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 ARTICLE VIII 
 CONDITIONS PRECEDENT TO OBLIGATIONS OF PURCHASER 
 The obligations of Purchaser under this Agreement
are subject to satisfaction of the following conditions precedent on or before the Closing Date (which conditions may, in the sole discretion of Purchaser, be waived by Purchaser in writing). 
 8.1 Warranties True as of Both Present Date and Closing Date; Covenants. 
 (a) Each of the representations and warranties of Sellers (without regard to materiality, Material Adverse Effect, or similar qualifiers) shall be true
and correct in all material respects on and as of the Closing Date (except for representations and warranties made as of a specified date, which shall be true and correct in all material respects as of that date) with the same force and effect as
though made on and as of the Closing Date. 
 (b) Sellers shall have performed and complied in all material respects with the obligations and
covenants required by this Agreement to be performed or complied with by Sellers on or prior to the Closing Date. 
 8.2 Bankruptcy
Condition. 
 (a) The Bidding Procedures Order shall have been entered on the docket by the Clerk of the Bankruptcy Court no later than
the fifteenth (15th) day after the Petition Date. The Sale Order and Assignment and Assumption Order shall have been entered on the docket by the clerk of the Bankruptcy Court as soon as practicable and no later than the forty-fifth (45th)
day following the Petition Date and shall have become a Final Order. 
 (b) The Sale Order and Assignment and Assumption Order shall approve
and authorize the assumption and assignment of the Assumed Executory Contracts and the Assumed Executory Contracts shall have been actually assumed and assigned to Purchaser such that the Assumed Executory Contracts will be in full force and effect
from and after the Closing with non-debtor parties being barred and enjoined from asserting against Purchaser, among other things, defaults, breaches or claims of pecuniary losses existing as of the Closing or by reason of the Closing. 

(c) The Bidding Procedures Order shall, in addition to being substantially in the form of Exhibit A, or otherwise acceptable to Purchaser,
provide, among other things, that: 
 (i) upon the first to occur of (A) the date any Seller consummates the sale, transfer or other
disposition of the Acquired Assets pursuant to an Acquisition Proposal or otherwise, (B) the date that any Seller files a chapter 11 plan contemplating the sale or retention of the Acquired Assets by Sellers in any manner inconsistent with the
terms of this Agreement, (C) the termination of this Agreement for reasons other than a breach by Purchaser, or (D) the date any Seller consummates a plan under the Bankruptcy Code which is inconsistent with Purchaser acquiring the
Acquired Assets, Sellers shall immediately pay (in cash) to Purchaser, the Inventory Financing and an expense reimbursement of $400,000 (the “Expense Reimbursement”) with Sellers being jointly and severally liable for such payment,
which shall constitute compensation for all reasonable out of pocket expenses, including the reasonable fees and expenses of its attorneys, accountants and other advisors, all costs and expenses incident to travel expenses, telephone, and delivery
charges; and 
  

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 (ii) Sellers are authorized without further Bankruptcy Court action to pay any amounts that become due
and payable to Purchaser pursuant to this Agreement (including the Expense Reimbursement), and such amounts (including the Expense Reimbursement) owed to Purchaser pursuant to this Agreement shall: (x) constitute an allowed administrative
expense of the Sellers under Sections 503(b)(1) and 507(a)(2) of the Bankruptcy Code, respectively; and (y) have priority over any and all claims of holders of existing liens on proceeds payable in connection with the consummation of any
transaction contemplated by an Acquisition Proposal or the Acquired Assets, as the case may be. 
 (d) Notwithstanding Sections 8.2(a)
and 10.1, nothing in this Agreement shall preclude Purchaser or Sellers from consummating the transactions contemplated herein if Purchaser, in its sole discretion, waives the requirement that the Sale Order or any other Order shall have
become Final Orders. No notice of such waiver of this or any other condition to Closing need be given except to Arrow; it being the intention of the parties hereto that Purchaser shall be entitled to, and is not waiving, the protection of section
363(m) of the Bankruptcy Code, the mootness doctrine and any similar statute or body of law if the Closing occurs in the absence of Final Orders. 
 8.3 Material Adverse Change. There shall not have occurred a Material Adverse Change since the date of this Agreement. 
 8.4
Cure Costs. Sellers shall have paid all cure obligations (pursuant to section 365 of the Bankruptcy Code) with respect to the Assumed Executory Contracts. 
 8.5 Financial Statements. Sellers shall have delivered to Purchaser copies of Sellers’ interim monthly and year-to-date financial statements (including unaudited financial statements for the fiscal year
ended on August 25, 2008 which reflect normal year-end audit adjustments in accordance with GAAP) pursuant to Section 6.2 and Purchaser shall have been reasonably satisfied in all respects with such financial statements. 

8.6 Litigation. No Proceeding shall be pending before any Governmental Authority seeking or threatening to restrain or prohibit the
consummation of the transactions contemplated by this Agreement, or seeking to obtain damages in respect thereof, or involving a claim that consummation thereof would result in the violation of any Law or Order. 
 8.7 DIP Financing. Sellers shall have secured DIP Financing on terms and conditions satisfactory to Purchaser. 
 8.8 Key Customers. No Seller shall have received any indication from any of its top 7 customers or group accounts (based on sales volume for the
twelve-month period ending July 25, 2008) to the effect that such customer will stop, materially decrease the rate of, or materially change the terms (whether related to payment, price or otherwise) with respect to, buying materials, products
or services from any Seller or Keystone or its Affiliates. 
  

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 8.9 Pay-off Letters. Purchaser shall have received a fully executed pay-off letter and UCC-3
termination statements and other terminations, payoffs and releases of all Liens on all Acquired Assets (including the Acquired Vehicles), and evidence of the complete satisfaction of all outstanding Indebtedness of the Sellers with respect to the
Acquired Vehicles (including Indebtedness owed to each of First State Bank, Ford Motor Credit and GMAC with respect to the Acquired Vehicles). 
 8.10 Closing Deliveries. Sellers shall have delivered to Purchaser (i) a certificate signed by each Seller, dated the date of the Closing Date (in form and substance reasonably satisfactory to Purchaser), certifying that the
conditions specified in Sections 8.1 through 8.3 have been satisfied as of the Closing; (ii) copies of all third-party approvals and governmental approvals required by Section 6.1; (iii) certified copies of the
resolutions of the each Seller’s board of directors authorizing the execution, delivery and performance of this Agreement and the other agreements contemplated hereby and the consummation of the transactions contemplated hereby and thereby;
(iv) all of the closing deliveries set forth in Section 10.2; and (v) such other documents or instruments as are required to be delivered by any Seller at the Closing pursuant to the terms hereof or that Purchaser reasonably
requests prior to the Closing Date to effect the transactions contemplated hereby. 
 ARTICLE IX 
 CONDITIONS PRECEDENT TO OBLIGATIONS OF SELLERS 
 The obligations of Sellers under this Agreement are, at the option of Sellers, subject to the satisfaction of the following conditions precedent on or before the Closing Date. 
 9.1 Warranties True as of Both Present Date and Closing Date. The representations and warranties of Purchaser contained herein shall be true and
correct in all material respects on and as of the Closing Date (except for representations and warranties made as of a specified date, which shall be true and correct as of that date in all material respects) with the same force and effect as though
made by Purchaser on and as of the Closing Date. Purchaser shall have performed and complied in all material respects with the obligations and covenants required by this Agreement to be performed or complied with by Purchaser on or prior to the
Closing Date. 
 9.2 Bankruptcy Court Approval. Subject to Section 8.2(d), the Bankruptcy Court shall have entered the
Sale Order, Assignment and Assumption Order and Bidding Procedures Order. 
 9.3 Litigation. No Proceedings shall be pending before
any Governmental Authority seeking or threatening to restrain or prohibit the consummation of the transactions contemplated by this Agreement, or involving a claim that consummation thereof would result in the violation of any Law or Order.

 9.4 Closing Deliveries. Purchaser shall have delivered to Sellers (i) a certificate signed by Purchaser, dated the date of the
Closing (in form and substance reasonably satisfactory to Sellers) certifying that the conditions specified in Section 9.1 above have been satisfied as of the Closing and (ii) all of the closing deliveries set forth in
Section 10.3. 
  

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 ARTICLE X 
 CLOSING 
 10.1 Closing. Upon the terms and subject to the satisfaction of the conditions
contained in this Agreement, the closing of the transaction contemplated by this Agreement (the “Closing”) will take place at the offices of Shook, Hardy & Bacon LLP, 2555 Grand Boulevard, Kansas City, Missouri 64108 at
10:00 A.M. Eastern Standard Time on the first Wednesday following the date on which the conditions set forth in Article VIII and Article IX have been satisfied or waived, or on such other date or place as Purchaser and Arrow may
determine (the “Closing Date”); provided, that if the first Wednesday is less than two (2) business days following the date on which the conditions set forth in Article VIII and Article IX have been
satisfied or waived, then the Closing Date shall be the second Wednesday following the date on which the conditions set forth in Article VIII and Article IX have been satisfied or waived, or on such other date or place as Purchaser and
Arrow may determine. 
 10.2 Deliveries by Sellers. At the Closing, Sellers shall deliver or procure delivery to Purchaser of:

 (a) one or more bills of sale, substantially in the form attached hereto as Exhibit C, conveying in the aggregate all of the
owned personal property of Sellers included in the Acquired Assets, duly executed by Sellers; 
 (b) evidence satisfactory to Purchaser that
all Seller Intellectual Property has been assigned and transferred to Purchaser in accordance with this Agreement; 
 (c) an affidavit from
each Seller, dated as of the Closing Date, in form and substance required under the Treasury Regulations issued pursuant to Section 1445 of the Code certifying under penalties of perjury that such Seller is not a foreign person pursuant to
section 1445(b)(2) of the Code; 
 (d) an assignment and assumption agreement for the Assumed Facility Lease, substantially in the form
attached hereto as Exhibit D (the “Assignment and Assumption of Lease”), duly executed by the relevant Seller and BCGG LLC, on terms and conditions satisfactory to Purchaser; 
 (e) with respect to the Kansas City Facility and the Dallas Facility, any landlord estoppel letters and subordination, non-disturbance and attornment
agreements from landlord’s lenders, landlord lien waivers, collateral access agreements and landlord consents to leasehold mortgages or collateral assignments of leases, if reasonably required by Purchaser’s lender in form and substance
reasonably satisfactory to Purchaser’s lender; 
 (f) certificates of title and title transfer documents to all titled motor vehicles
included in the Acquired Assets (including the Acquired Vehicles); 
 (g) all the Customer Records, and any data related to the Acquired
Assets (other than records relating solely to the collection of accounts and notes receivable); 
  

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 (h) a duly executed transition services agreement, substantially in the form attached hereto as
Exhibit E (the “Transition Services Agreement”) that provides for the operation of the Facilities by Purchaser or its Affiliates for a three-month period following the Closing that are located in Dallas, Texas (the
“Dallas Facility”), Tulsa, Okalahoma, St. Paul, Minnesota, Houston, Texas, and Nashville, Tennessee, on terms and conditions satisfactory to Purchaser; 
 (i) a duly executed non competition agreement between Owner, Sellers and Keystone, substantially in the form attached hereto as Exhibit F (the “Non Competition Agreement”), on terms and
conditions satisfactory to Purchaser; 
 (j) such other instruments, in form and substance, reasonably satisfactory to Purchaser, as are
necessary to vest in Purchaser good and marketable title in and to the Acquired Assets in accordance with the provisions hereof; and 
 (k) a
certified copy of the Sale Order. 
 10.3 Deliveries by Purchaser. At the Closing, Purchaser will deliver to Sellers (A) the
Assignment and Assumption of Lease duly executed by Purchaser, (B) the Transition Services Agreement duly executed by Purchaser; (C) the Non Competition Agreement duly executed by Keystone and (D) an amount in cash equal to the
Estimated Purchase Price, less the Escrow Deposit Amount. 
 ARTICLE XI 
 TERMINATION; TERMINATION PAYMENT 
 11.1 Termination. This Agreement may
be terminated prior to the Closing as follows: 
 (a) by mutual written agreement of Purchaser and Arrow; 
 (b) by either Purchaser or Arrow if there shall be in effect a Final Order restraining, enjoining or otherwise prohibiting the consummation of the
transactions contemplated hereby; 
 (c) by either Purchaser or Arrow (provided, that the terminating party is not then in material
breach of any representation, warranty, covenant or other agreement contained herein), if there shall have been a material breach or misrepresentation of any of the representations or warranties or a material breach of any of the covenants set forth
in this Agreement on the part of the other party, which breach is not cured within ten days following written notice to the party committing such breach or which breach, by its nature, cannot be cured prior to the Closing; 
 (d) by Purchaser (provided, that Purchaser is not then in material breach of any representation, warranty, covenant or other agreement contained
herein) if it shall have reasonably determined that one or more conditions set forth in Article VIII (including Section 8.2(a)) has not been or cannot be fulfilled or satisfied prior to the date specified in such condition (if
such condition specifies a date other than the Closing Date by which such condition must be satisfied); 
  

 42 

 (e) by Purchaser if any Seller (i) seeks or supports Bankruptcy Court approval of an Acquisition
Proposal (other than to or by Purchaser) or (ii) executes and delivers an agreement or understanding of any kind with respect to an Acquisition Proposal; 
 (f) by Purchaser or Arrow if the Bankruptcy Court enters an order approving any Acquisition Proposal (other than the sale of the Business and the Acquired Assets to Purchaser), subject to the Bidding Procedures Order;

 (g) by Purchaser on any day on or after the fifty-fifth (55th) day following the date hereof if the Closing shall not have been
consummated by such date (or by such later date as shall be mutually agreed to by Purchaser and Arrow in writing), unless the Closing has not occurred due to a material failure of Purchaser to perform or observe its agreement as set forth in this
Agreement required to be performed or observed by it on or before the Closing Date; 
 (h) by Purchaser if the Sale Order fails to contain a
finding under Section 363(m) of the Bankruptcy Code or authorize the sale free and clear of Liens pursuant to Section 363(f) of the Bankruptcy Code; 
 (i) by Purchaser if Sellers do not obtain DIP Financing reasonably satisfactory to Purchaser within thirty (30) days following the Petition Date or if there is any “Event of Default” (as defined under
any agreement governing the DIP Financing) under the DIP Financing; and 
 (j) by
Arrow on any day on or after the one-hundred-twentieth (120th) day following the date hereof if the Closing shall not have been consummated by
such date (or by such later date as shall be mutually agreed to by Purchaser and Arrow in writing), unless the Closing has not occurred due to a material failure of any Seller to perform or observe its agreement as set forth in this Agreement
required to be performed or observed by it on or before the Closing Date. 
 11.2 Payment of Amounts Owed to Purchaser. 
 (a) Payment of the Expense Reimbursement shall be as set forth in the Bidding Procedures Order. 
 (b) Sellers’ obligation to pay the Expense Reimbursement, the Inventory Financing and any other amounts due under this Agreement pursuant to this
Section 11.2 shall survive termination of this Agreement and shall be subject to Section 8.2(c)(ii) hereof. 
 11.3
Effect of Termination or Breach. If the transactions contemplated hereby are not consummated (a) this Agreement shall become null and void and of no further force and effect, except (i) for this Section 11.3,
(ii) for the provisions of Sections 11.2, 13.1, 13.7, 13.8, 13.9, 13.10, and 13.12, and (iii) that the termination of this Agreement for any reason shall not relieve any party hereto
from any Liability which at the time of termination had already accrued to any other party hereto or which thereafter may accrue in respect of any act or omission of such party prior to such termination; (b) the payment of the Expense
Reimbursement shall be the sole and exclusive remedy (as liquidated damages) of Purchaser; (c) in the event this Agreement is terminated by Arrow pursuant to Section 11.1(c), the receipt by Sellers of the Escrow Deposit 

  

 43 

 
Amount shall be Sellers’ sole and exclusive remedy (as liquidated damages), which amount may only be disbursed to Sellers upon an Order of the
Bankruptcy Court, if the Chapter 11 Cases have been commenced; provided, that, for purposes of clarity, this Section 11.3 shall not limit or affect Sellers’ remedies under the Confidentiality Agreement, if any; and
(d) if this Agreement is terminated for any reason other than the termination of this Agreement by Arrow pursuant to Section 11.1(c), Sellers shall not be entitled to any damages, losses, or payment from Purchaser in connection with
this Agreement, Purchaser shall have no further obligation or Liability of any kind to Sellers, any of their Affiliates, or any Third Party on account of this Agreement, Sellers shall promptly instruct the Escrow Agent to return to Purchaser the
Escrow Funds, and the Escrow Agent shall immediately upon such instruction return to Purchaser the Escrow Funds. 
 ARTICLE XII

 ADDITIONAL POST-CLOSING COVENANTS 
 12.1 Employees. 
 (a) Immediately following the Closing, all employees of the Seller may apply for
employment with Purchaser. Sellers recognize that Purchaser may make offers of employment to certain employees of Sellers, on terms and conditions of employment that may be different from those provided by Sellers, and that it is uncertain how many
employees of Sellers will be made offers or accept employment with Purchaser. The number of offers of employment made by Purchaser, and the terms and conditions of such offers, shall be determined by Purchaser in its sole discretion and in
accordance with applicable law. Sellers shall be responsible for any and all wages, bonuses, commissions, employee benefits, retention or stay bonus arrangements, severance, and other compensation (including all obligations under any Employee
Benefit Plans) due to the employees of Sellers arising out of their employment with Sellers prior to and as of the Closing. 
 (b) Nothing
contained in this Agreement shall confer upon any Transferred Employee any right with respect to continuance of employment by Purchaser, nor shall anything herein interfere with the right of Purchaser to terminate the employment of any Transferred
Employees at any time, with or without notice, or restrict Purchaser, in the exercise of its business judgment in modifying any of the terms or conditions of employment of the Transferred Employees after the Closing. 
 12.2 WARN Act. In respect of notices and payments relating to events occurring on or prior to the first anniversary of the Closing Date, Sellers
shall be jointly and severally responsible for and assume all Liability for (and Sellers shall jointly and severally indemnify and hold Purchaser harmless from and against) any and all notices, payments, fines or assessments due to any Person or
Government Authority, pursuant to any applicable Law with respect to the employment, discharge or layoff of employees by Sellers as of or before the Closing, including the Worker Adjustment and Retraining Notification Act of 1988, as amended, and
any similar or related foreign, state or local Law, (jointly, referred to throughout this Agreement as the “WARN Act”). Likewise, provided that on or before the Closing Date Sellers supply Buyer with a list of employee layoffs, by
date and location, implemented by Sellers in the 90-day period preceding the Closing, in respect of notices and payments relating to events occurring after the Closing, Purchaser shall be responsible and assume all Liability for any and all notices,
payments, fines or 

  

 44 

 
assessments due to any Person or Government Authority, pursuant to the WARN Act, with respect to the employment, discharge or layoff of employees employed by
Purchaser after the Closing. 
 12.3 Joint Post-Closing Covenant of Purchaser and Sellers. Purchaser and Sellers jointly covenant and
agree that, from and after the Closing Date, Purchaser and Sellers will each use commercially reasonable efforts to cooperate with each other in connection with any action, suit, proceeding, investigation or audit of the other relating to
(a) the preparation of an audit of any Tax Return of any Seller or Purchaser for all periods prior to or including the Closing Date and (b) any audit of Purchaser and/or any audit of any Seller with respect to the sales, transfer and
similar Taxes imposed by the laws of any state or political subdivision thereof, relating to the transactions contemplated by this Agreement. In furtherance hereof, Purchaser and Sellers further covenant and agree to promptly respond to all
reasonable inquiries related to such matters and to provide, to the extent reasonably possible, substantiation of transactions and to make available and furnish appropriate documents and personnel in connection therewith. All costs and expenses
incurred in connection with this Section 12.3 referred to herein shall be borne by the party who is subject to such action. 
 12.4 Receipt of Excluded Assets. Purchaser covenants and agrees that if Purchaser, after the Closing, receives proceeds (such proceeds, the “Excluded Proceeds”) with respect to any transaction arising out of
(i) the collection of any accounts receivable relating to products sold by Sellers prior to Closing or (ii) any other Excluded Asset (in each case, as determined by Purchaser based on evidence reasonably satisfactory to Purchaser that
demonstrates that such proceeds were intended for the benefit of Arrow), Purchaser shall pay the Excluded Proceeds with respect to such transaction, net of all out-of-pocket costs and expenses incurred by Purchaser with respect to such transaction
and net of an administrative fee payable to Purchaser in an amount that is equal to $50.00 for each such transaction, to an account designated in writing by Seller to Purchaser within five (5) business days after such determination (it being
understood that Purchaser shall have no duty or obligation to investigate whether any proceeds it receives constitute Excluded Proceeds). 
 12.5 Certain Consents. If a consent of a Third Party which is required in order to assign any Acquired Asset (or Claim, right or benefit arising thereunder or resulting therefrom) is not obtained prior to the Closing Date, or if an
attempted assignment would be ineffective or would adversely affect the ability of any Seller to convey its interest in question to Purchaser, Sellers will cooperate with Purchaser and use commercially reasonable efforts in any lawful arrangement to
provide that Purchaser shall receive the interests of any Seller in the benefits of such Acquired Asset. If any such consent or waiver so required is not obtained before the Closing Date and the Closing is nevertheless consummated, each Seller
agrees to continue to use commercially reasonable efforts to obtain all such consents as have not been obtained prior to such date. 
 12.6
Name Changes. Except to the extent (and only to the extent that the Owner is not involved in any manner in connection therewith at any time after 120 day following the Closing Date) reasonably necessary to collect any accounts or notes
receivable or to pursue any rights, claims, or causes of action relating or pertaining to the collection of any accounts or notes receivable or any pending insurance and claims from and after the Closing (but in no event later 

  

 45 

 
than 120 days following the Closing Date), no Seller will, nor will it permit any of its respective Affiliates or authorize any Third Party to, use the
trademarks and service marks “Arrow Speed” or “Streetside Auto”, or any other trademark or service mark included in the Acquired Assets, or any trademarks or service marks similar thereto or derived therefrom, in any manner
(including as a company name or d/b/a, in any of its literature, sales materials or in connection with any products or services or otherwise). No later than 120 days following the Closing Date, each Seller shall take all necessary action to change
its name and the names of any Affiliates of Sellers to a name bearing no similarity to the names “Arrow Speed Warehouse, Inc.” or “Streetside Auto LLC”. 
 12.7 Tax Matters. Purchaser shall, within the later of (i) 120 days after the Closing Date, (ii) 30 days prior to the date by which
Sellers’ federal income Tax Returns must be filed, or (iii) ten (10) business days after there has been a final determination of the Purchase Price pursuant to Section 3.1(b), prepare and deliver to Sellers a schedule
allocating the Purchase Price (and any other items that are required for federal income tax purposes to be treated as part of the purchase price) among the respective Sellers and the Acquired Assets (such schedule, the
“Allocation”). Purchaser and Sellers shall report and file all Tax Returns (including amended Tax Returns and claims for refund) consistent with the Allocation, and shall take no position contrary thereto or inconsistent therewith
(including in any audits or examinations by any Governmental Authority or any other proceeding). Purchaser and Sellers shall cooperate in the filing of any forms (including Form 8594 under section 1060 of the Code) with respect to such
Allocation, including any amendments to such forms required pursuant to this Agreement with respect to any adjustment to the Purchase Price. If and to the extent the parties are unable to agree on such Allocation, the parties shall retain the
Accounting Firm to resolve such dispute. Notwithstanding any other provision of this Agreement, the terms and provisions of this Section 12.7 shall survive the Closing without limitation. 
 ARTICLE XIII 
 MISCELLANEOUS 

 13.1 Expenses. 
 (a)
Except as otherwise provided for herein, each party hereto shall bear its own costs and expenses, including attorneys’ fees, with respect to the transactions contemplated hereby. Notwithstanding the foregoing, in the event of any action or
proceeding to interpret or enforce this Agreement, the prevailing party in such action or proceeding (i.e., the party who, in light of the issues contested or determined in the action or proceeding, was more successful) shall be entitled to
have and recover from the non-prevailing party such costs and expenses (including all court costs and reasonable attorneys’ fees) as the prevailing party may incur in the pursuit or defense thereof. 
 13.2 Amendment. This Agreement may not be amended, modified or supplemented except by a written instrument signed by Arrow (on behalf of itself
and Sellers) and Purchaser. 
 13.3 Notices. Any notice, request, instruction or other document to be given hereunder by a party
hereto shall be in writing and shall be deemed to have been given, (a) when received if given in person, (b) on the date of transmission if sent by telex, telecopy, e-mail, or other wire 

  

 46 

 
transmission (with answer back confirmation of such transmission), (c) upon delivery, if delivered by a nationally known commercial courier service
providing next day delivery service (such as Federal Express), or (d) upon delivery, or refusal of delivery, if deposited in the U.S. mail, certified or registered mail, return receipt requested, postage prepaid: 
  

					
	To Sellers:	  	Arrow Speed Warehouse, Inc.
		  	686 S. Adams St.
		  	Kansas City, Kansas 66105
		  	Attn:	  	Ronald L. Coppaken
		  	Fax:	  	(913) 321-4864
		
	with copy to:	  	Shook, Hardy & Bacon LLP
		  	2555 Grand Blvd.
		  	Kansas City, Missouri 64108
		  	Attn:	  	Justin J. Johl
		  	Fax:	  	(816) 421-5547
		
	To Purchaser, to:	  	Arrow Speed Acquisition Corp.
		  	c/o Keystone Automotive Operations, Inc.
		  	44 Tunkhannock Avenue
		  	Exeter, PA 18643
		  	Attn:	  	Ed Orzetti
		  	Fax:	  	(570) 655-8203
	
	with a copy to (which shall not constitute notice to Purchaser):
		
		  	Bain Capital NY, LLC
		  	745 Fifth Avenue
		  	New York, NY 10151
		  	Attn:	  	Seth Meisel
		  	Fax:	  	(212) 421-2225
		
		  	Kirkland & Ellis LLP
		  	153 East 53rd Street
		  	New York, NY 10022
		  	Attn:	  	Eunu Chun
		  	Fax:	  	(212) 446-6460

 or to such other individual or address as a party hereto may designate for itself by notice given as herein
provided. 
 13.4 Waivers. The failure of a party hereto at any time or times to require performance of any provision hereof shall in
no manner affect its right at a later time to enforce the same. No waiver by a party of any condition or of any breach of any term, covenant, representation or warranty contained in this Agreement shall be effective unless in writing by Arrow, in
the case of a waiver by any Seller, or Purchaser, in the case of any waiver by Purchaser, and no waiver in 

  

 47 

 
any one or more instances shall be deemed to be a further or continuing waiver of any such condition or breach of other instances or a waiver of any other
condition or breach of any other term, covenant, representation or warranty. 
 13.5 Counterparts and Execution. This Agreement may be
executed simultaneously in counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Any counterpart may be executed by facsimile signature and such facsimile signature shall be
deemed an original. 
 13.6 Headings. The headings preceding the text of the Articles and Sections of this Agreement and the Exhibits
and the Schedules are for convenience only and shall not be deemed part of this Agreement. 
 13.7 SUBMISSION TO JURISDICTION. THE
PARTIES HEREBY AGREE THAT, IF SELLERS HAVE COMMENCED THE CHAPTER 11 CASE, ANY AND ALL CLAIMS, ACTIONS, CAUSES OF ACTION, SUITS, AND PROCEEDINGS RELATING TO THIS AGREEMENT OR THE OTHER AGREEMENTS CONTEMPLATED HEREIN SHALL BE FILED AND MAINTAINED ONLY
IN THE BANKRUPTCY COURT, AND THE PARTIES HEREBY CONSENT TO THE JURISDICTION OF SUCH COURT. IF, HOWEVER, SELLERS HAVE NOT COMMENCED THE CHAPTER 11 CASE, ANY AND ALL CLAIMS, ACTIONS, CAUSES OF ACTION, SUITS, AND PROCEEDINGS RELATING TO THIS AGREEMENT
OR THE OTHER AGREEMENTS CONTEMPLATED HEREIN SHALL BE FILED AND MAINTAINED IN ANY COURT OF COMPETENT JURISDICTION HAVING SITUS WITHIN THE STATE OF KANSAS, AND THE PARTIES HEREBY CONSENT TO THE JURISDICTION OF SUCH COURT. 
 13.8 Governing Law. Except to the extent that the Bankruptcy Code or Bankruptcy Rules apply, this Agreement shall be governed by and construed in
accordance with the laws of the State of Kansas (regardless of the laws that might otherwise govern under applicable Kansas principles of conflicts of law) as to all matters, including matters of validity, construction, effect, performance and
remedies. 
 13.9 Binding Nature; Assignment. This Agreement shall be binding upon and inure to the benefit of the parties hereto and
their respective successors and permitted assigns, but neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any of the parties hereto without prior written consent of the other parties (which shall
not be unreasonably withheld or delayed), except (i) that Purchaser may assign any of its rights and obligations hereunder to any Affiliate or Subsidiary of Purchaser (whether wholly owned or otherwise) or to its lender and, following the
Closing, in whole or in part to any successor-in-interest to any Person acquiring all or any portion of the Acquired Assets; (ii) the rights and interests of Sellers hereunder may be assigned to a trustee appointed under Chapter 11 or
Chapter 7 of the Bankruptcy Code; (iii) this Agreement may be assigned to any entity appointed as a successor to Sellers pursuant to a confirmed Chapter 11 plan; and (iv) as otherwise provided in this Agreement. Sellers hereby
agree that Purchaser may grant a security interest in its rights and interests hereunder to its lenders, and Sellers will sign a consent with respect thereto if so requested by Purchaser or its lender, and that the terms of this Agreement shall be
binding upon any subsequent trustee appointed under Chapter 11 or Chapter 7 of the Bankruptcy Code. 
  

 48 

 13.10 No Third Party Beneficiaries. Except as expressly provided herein, this Agreement is solely
for the benefit of the parties hereto and nothing contained herein, express or implied, is intended to confer on any Person other than the parties hereto or their successors and permitted assigns, any rights, remedies, obligations, Claims, or causes
of action under or by reason of this Agreement. 
 13.11 Construction. The language used in this Agreement will be deemed to be the
language chosen by the parties to this Agreement to express their mutual intent, and no rule of strict construction shall be applied against any party. Any reference to any federal, state, local or foreign statute or law shall be deemed also to
refer to all rules and Regulations promulgated thereunder, unless the context requires otherwise. 
 13.12 Public Announcements.
Except as required by law or in connection with the Chapter 11 Cases, neither Sellers nor Purchaser shall issue any press release or public announcement concerning this Agreement or the transactions contemplated hereby without obtaining the
prior written approval of the other parties hereto relating to the contents and manner of presentation and publication thereof, which approval will not be unreasonably withheld, delayed or conditioned. Prior to making any public disclosure required
by applicable law, the disclosing parties shall give the other party a copy of the proposed disclosure and reasonable opportunity to comment on the same. 
 13.13 Entire Understanding. This Agreement, the Exhibits and the Schedules set forth the entire agreement and understanding of the parties hereto in respect to the transactions contemplated hereby and the
Agreement, the Exhibits and the Schedules supersede all prior agreements, arrangements and understandings relating to the subject matter hereof and are not intended to confer upon any other Person any rights or remedies hereunder. 
 13.14 Closing Actions. All deliveries, payments and other transactions and documents relating to the Closing shall be interdependent, and none
shall be effective unless and until all are effective (except to the extent that the party entitled to the benefit thereof has waived satisfaction or performance thereof as a condition precedent to the Closing). 
 13.15 Conflict between Transaction Documents. The parties hereto agree and acknowledge that to the extent any terms and provisions of this
Agreement are in any way inconsistent with or in conflict with any term, condition or provision of any other agreement or document referred to herein, this Agreement shall govern and control. 
 13.16 Confidentiality Agreement. Notwithstanding anything contained to the contrary in the Confidentiality Agreement, the Sellers acknowledge and
agree that the Confidentiality Agreement shall terminate in all respects and shall be of no further force or effect as of the Closing Date; provided, that Section 7 of the Confidentiality Agreement is hereby terminated in all respects
and shall be of no further force or effect as of the date hereof. Any and all disputes arising out of the Confidentiality Agreement shall be governed by the terms and conditions contained therein. 
  

 49 

 13.17 Survival. None of the representations and warranties of Sellers and Purchaser contained in
this Agreement or in any instrument delivered in connection herewith shall survive the Closing. All of Sellers’ covenants set forth in this Article VI and under Article XII shall survive the Closing. All of Purchaser’s
covenants set forth in this Article VII and under Article XII shall survive the Closing. 
 * * * * * 
  

 50 

 IN WITNESS WHEREOF, the parties hereto have caused this Asset Purchase Agreement to be executed and
delivered on the date first above written. 
  

			
	PURCHASER:
	
	ARROW SPEED ACQUISITION CORP.
		
	By:	 	 /s/ Edward Orzetti

	Name:	 	Edward Orzetti
	Its:	 	President
	
	SELLERS:
	
	ARROW SPEED WAREHOUSE, INC.
		
	By:	 	 /s/ Ronald L. Coppaken

	Name:	 	Ronald L. Coppaken
	Title:	 	President
	
	BCGG REAL ESTATE COMPANY LLP
		
	By:	 	 /s/ Ronald L. Coppaken

	Name:	 	Ronald L. Coppaken
	Title:	 	
	
	STREETSIDE AUTO, LLC
		
	By:	 	 /s/ Ronald L. Coppaken

	Name:	 	Ronald L. Coppaken
	Title:	 	President
	
	SOLELY FOR PURPOSES OF SECTION 3.3:
	
	KEYSTONE AUTOMOTIVE OPERATIONS, INC.
		
	By:	 	 /s/ Edward Orzetti

	Name:	 	Edward Orzetti
	Its:	 	PresidentAsset Purchase Agreement

 Exhibit 10.22 
 ASSET PURCHASE AGREEMENT 
 THIS ASSET PURCHASE AGREEMENT (this “Agreement”) is made
as of April 29, 2008, by and between BioForm Medical, Inc., a Delaware corporation (“Buyer” or “BioForm”) and Advanced Cosmetic Intervention, Inc., a Colorado corporation (“Seller” or
“ACI”). ACI and BioForm may be referred to herein individually as a “Party” and collectively as the “Parties”. Certain other capitalized terms used in this Agreement are defined in Section 1.

 WHEREAS, Buyer desires to purchase from Seller, and Seller desires to sell to BioForm, substantially all of the assets of Seller,
including those assets related to the business of selling nerve ablation devices; 
 WHEREAS, Seller has entered into a license agreement
with JNJ Technology Holdings, LLC, a Colorado limited liability company (“JNJ”) under which JNJ granted to Seller a license under certain Intellectual Property Rights owned by JNJ; 
 WHEREAS, on even date herewith, Buyer and JNJ will enter into the JNJ APA (as defined below) whereby Buyer will purchase from JNJ substantially all of
JNJ’s assets, including those intellectual property rights currently licensed to Seller; 
 WHEREAS, the individual principals of JNJ
are also significant shareholders of Seller; 
 WHEREAS, Advanced Headache Intervention, Inc., a Colorado Corporation (“AHI”) is an
entity that was spun off from Seller to commercialize nerve ablation devices in the field of pain management; and 
 WHEREAS, Buyer and
Seller intend that Buyer will negotiate an agreement with AHI following the Closing with respect to selling nerve ablation devices in the field of pain management. 
 NOW THEREFORE, in consideration of the terms, covenants, and conditions hereinafter set forth, the Parties hereto agree as follows: 
 1. Definitions. For the purposes of this Agreement, unless the context otherwise requires, the following terms shall have the respective meanings set forth below and grammatical variations of such terms shall
have corresponding meanings: 
 1.1 “Affiliate” means, with respect to any person, any person that, directly
or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such person. For the purposes of this definition, “control” means the direct or indirect ownership of more than fifty percent
(50%) of the outstanding shares or other voting rights entitled to vote for the election of directors (or in the case of an entity that is not a corporation, for the election of the corresponding management authority). Seller shall not be
deemed for any purposes of this Agreement to be an Affiliate of Buyer. Neither JNJ nor AHI shall be deemed for any purpose of this Agreement to be an Affiliate of Seller. 

 1.2 “AHI” has the meaning given to it in the recitals. 
 1.3 “AHI Field” means the applications and indications for which Net Sales of Products will result in a royalty being due
to AHI under any agreement entered into between Buyer and AHI after Closing, as described in Section 8.3. The AHI Field will not be broader than the treatment of pain manifested in the head. For the avoidance of doubt, the AHI Field will not
include applications for which the primary purpose is aesthetic modification or therapeutic benefit other than the treatment of pain manifested in the head, even if such application also has an impact on pain manifested in the head. However, the AHI
Field may include applications for which the primary purpose is the treatment of pain manifested in the head, even if such application also has an aesthetic impact. 
 1.4 “Ancillary Agreements” means the Escrow Agreement, the Bill of Sale, the Assignment and Assumption Agreement, the
Intellectual Property Assignments, and all other ancillary agreements to this Agreement. 
 1.5 “Basket
Amount” means $75,000. 
 1.6 “Books and Records” means all papers and records (in paper or
electronic format) including, without limitation, all (i) purchasing and sales records; (ii) clinical study protocols, photographs, presentations, correspondence, results and records; (iii) customer and distributor lists and files;
(iv) corporate, investor, legal, accounting and financial records, and marketing and advertising documents and materials, including training materials and videos; (v) government filings and registrations; (vi) notes, notebooks,
project plans, design history files, results, reports and data generated in connection with research and development activities; (vii) manufacturing and quality assurance methods, processes, procedures, audits, results, records, supplier lists
and files; (viii) regulatory correspondence and files not included in Transferred Regulatory Approvals; and (ix) files related to the Transferred Intellectual Property Rights, including files maintained by intellectual property lawyers or
agents, and copies of nondisclosure agreements signed by employees and other Third Parties. 
 1.7 “Business”
means the development, manufacture and sale of Seller Products, either directly to customers or through distributors, licensees or other agents, as currently conducted by Seller. 
 1.8 “Business Day” (whether such phrase is capitalized or not) means any day, other than Saturday, Sunday, or a legal
holiday in California, that banks located in San Francisco, California are open for business. 
 1.9 “Calendar
Quarter” means the respective periods of three (3) consecutive calendar months ending on March 31, June 30, September 30, or December 31. 
 1.10 “Contract” or “Contracts” means any mortgage, indenture, lease, contract, covenant, arrangement,
agreement, instrument, commitment, purchase order or license. 
  

 -2- 

 1.11 “Documentation” means all documentation relating to any Product,
including without limitation marketing materials, maintenance manuals, manufacturing and technical specifications, and documentation that accompanies the Product when delivered to customers such as instructions, labeling, and training materials, and
web content and materials displayed or available on world wide web sites, which relate to those Uniform Resource Locators, Web site addresses and domain names listed on Schedule 2.1, and all copyrights and other Intellectual Property Rights
therein. 
 1.12 “Encumbrance” or “Encumbrances” means any encumbrance, lien, charge,
hypothecation, pledge, mortgage, adverse claim, option, preemptive right, or other security interest of any nature, or any contract to create any of the foregoing. 
 1.13 “Escrow Agent” means The Bank of New York. 
 1.14 “Escrow Agreement” means the escrow agreement by and among the Buyer, Seller and the Escrow Agent in substantially
the form of Exhibit A hereto. 
 1.15 “Exclusivity Payments” means $400,000, which Buyer paid to
Seller prior to the Closing Date as an advance on the Cash Consideration, in consideration for Seller and JNJ’s covenant to enter into exclusive negotiations with Buyer. 
 1.16 “Existing JNJ-ACI License” means the Technology License Agreement dated as of July 1, 2004 between JNJ and
Seller, which will be terminated as of the Closing Date as described herein. 
 1.17 “Fair Market Value”
means the cash consideration that Buyer or its Affiliate or Licensee would realize from an unaffiliated, unrelated buyer in an arm’s length sale of an identical item sold in the same quantity, under the same terms, and at the same time and
place. 
 1.18 “Filed Intellectual Property Rights” means all United States, international and foreign
Intellectual Property Rights that are the subject of an application, certificate, filing, registration or other document issued, filed with or recorded by any court, administrative agency or commission or other federal, state, county, local or
foreign governmental authority, instrumentality, agency or commission. 
 1.19 “First Commercial Sale” means
the date when a Product has been sold by Buyer or its Affiliate or Licensee in commerce and shipped to a customer and such customer has been invoiced for the price of such Product. 
 1.20 “GAAP” means United States generally accepted accounting principles. 
 1.21 “Intellectual Property Rights” means all intangible proprietary rights of any kind or nature throughout the world,
including without limitation the following and all statutory and/or common law rights in, arising out of, or associated therewith: (i) all Patent Rights; (ii) all works of authorship, copyrights, mask works, copyright and mask work
registrations and applications, copyrightable subject matter whether or not registration for any such copyright exists or is pending, and all other copyright interests accruing by reason of international copyright conventions pertaining thereto
(“Copyrights”); (iii) all Know-How; (iv) all industrial designs and any registrations and applications therefor; (v) all trade names, logos, trademarks and service 

  

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marks, trademark and service mark registrations and applications, and all other interests accruing by reason of international trademark conventions and all
goodwill associated therewith (“Trademarks”); (vi) all databases and data collections (including supplier or customer lists and supplier or customer databases); (vii) all rights in Software; and (viii) rights to
Uniform Resource Locators, Web site addresses and domain names. 
 1.22 “JNJ” has the meaning given to it in
the recitals. 
 1.23 “JNJ APA” means that certain Asset Purchase Agreement, in the form set forth at
Exhibit B, to be entered into between Buyer and JNJ on the Closing Date. 
 1.24 “JNJ Purchased Assets”
means all assets identified as “Purchased Assets” in the JNJ APA. 
 1.25 “JNJ Transferred Intellectual
Property Rights” means all assets identified as “Transferred Intellectual Property Rights” in the JNJ APA. 
 1.26 “JNJ Transferred Patent Rights” means the “Transferred Patent Rights” as identified in the JNJ APA. 
 1.27 “Key Executives” means each of Mike Janssen, James Newman, Jim Jones, Paul Maroon, and David Stevens. 
 1.28 “Know-How” means all information, data, materials, technologies, inventions, trade secrets, algorithms, concepts, system designs, engineering models, ideas, software, discoveries, processes,
standards, methods, compositions, formulae, procedures, protocol techniques, results of experimentation and testing, and other know-how, whether or not patentable or copyrightable. 
 1.29 “Knowledge of Seller” or “Seller’s Knowledge” means the actual knowledge of Paul Maroon, Mike
Janssen, Stan Dunavant, Warren Bisbee, Dwight Zurawski, James Newman, Jim Jones, and David Stevens; provided, however, that such person shall have made reasonable inquiry of those employees and consultants of Seller who would reasonably be
expected to have knowledge of the matter in question; provided further, however, that if any such person shall not make such reasonable inquiry, then such person shall be deemed to have actual knowledge of those facts or matters that such
person would reasonably be expected to have had such person made such inquiry. 
 1.30 “Licensee” means a
Third Party (other than AHI) to whom Buyer has granted a license under the JNJ Transferred Intellectual Property Rights and the Transferred Intellectual Property Rights to make, use, offer to sell, sell, or import Products in the Royalty Field, but
this shall not cover sales made by Buyer or its Affiliates or licensees to Third Party distributors. 
 1.31 “Material
Adverse Effect on Buyer” means a circumstance, state of facts, event, consequence or result that materially and adversely affects, or could reasonably be expected to affect materially and adversely, the financial condition or operating
results of Buyer, or the ability of Buyer to consummate the transactions which it is required to consummate under this Agreement and the JNJ APA. 
  

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 1.32 “Material Adverse Effect on Seller” means a circumstance, state of
facts, event, consequence or result that materially and adversely affects, or could reasonably be expected to affect materially and adversely, the Purchased Assets, the JNJ Purchased Assets, Seller’s financial condition, or Seller’s
operating results, or the ability of Seller to consummate the transactions which it is required to consummate under this Agreement. 
 1.33 “Net Sales” means the gross amount invoiced by Buyer, its Affiliates, and its Licensees for sales of Products in the Royalty Field to Third Parties (excluding sales by and between Buyer, its Affiliates, and its
Licensees) less the following: 
 (a) shipping, postage, freight, and transportation charges and other related charges, such
as insurance, directly chargeable to the sale of the Product; 
 (b) sales and excise taxes, customs duties, and other taxes,
duties and governmental charges (including any tax such as a value added or similar tax or government charge) levied on the sale, transportation, delivery, or exportation of the Product and actually paid by the seller, in accordance with GAAP, but
excluding any taxes and governmental charges calculated based on any profit or income earned by Buyer or its Affiliates or Licensees; 
 (c) governmental charges imposed upon the sale, manufacture, or use of the Products; 
 (d)
distributor’s fees, rebates (including cash and non-cash rebates), returns, and allowances; 
 (e) discounts (including
trade, quantity, and cash discounts), charge-backs, retroactive price reductions, refunds, returns, and billing errors; 
 (f)
allowances and credits on account of governmental requirements, rejections, recalls, defects, or returns; and 
 (g) other
similar or customary deductions taken in the ordinary course of business or in accordance with GAAP. 
 For clarity, use of the Products for promotional,
sampling or compassionate use purposes or for use in clinical trials shall not be considered in determining Net Sales, in each case so long as (i) such Products are provided or sold at less than the cost of goods; and (ii) the recipients
do not resell the Products. For purposes of this provision, compassionate use shall include any sales of Products to non-profit organizations operated for charitable purposes, provided that such sales meet the requirements of clauses (i) and
(ii) of the preceding sentence. 
 1.34 “Off the Shelf Software” means commercially available software
licensed to the Seller under generally available terms and conditions, other than software included in or necessary to operate any Product. 
  

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 1.35 “Patent Rights” means all (i) issued patents;
(ii) pending patent applications and rights to file applications, including without limitation, all provisional applications, substitutions, continuations, continuations-in-part, divisions, re-examinations, national phase PCT applications, PCT
international applications, and all foreign counterparts; (iii) patents-of-addition, reissues, renewals, revivals, reexamination certificates, and extensions and restorations by existing or future extension or restoration mechanisms, including,
without limitation, supplementary protection certificates and the equivalent thereof; (iv) inventor’s certificates; and (v) forms of government-issued rights substantially similar to any of the foregoing throughout the world.

 1.36 “Permitted Encumbrances” means (i) any lien for taxes that are not yet due or are being
contested in good faith, (ii) any carrier’s, warehouseman’s, mechanic’s, materialman’s, repairman’s, landlord’s, lessor’s or similar statutory lien incidental to the ordinary conduct of the Business, or
(iii) any municipal and zoning ordinance, recorded easement, covenant or restriction that does not prohibit or materially interfere with the present use, or materially affect the present value, of the Business or the Purchased Assets.

 1.37 “Person” means any individual, partnership, firm, corporation, association, trust, unincorporated
organization or other entity, as well as any syndicate or group of any of the foregoing. 
 1.38 “Product”
means any radio frequency nerve ablation product that uses or incorporates, or by the making, using or selling of which infringes, any Transferred Intellectual Property Rights or JNJ Transferred Intellectual Property Rights, including without
limitation the Products described on Schedule 2.1. 
 1.39 “Royalty Field” means all applications and
indications, other than the AHI Field. 
 1.40 “Royalty Rate” means (i) [*] with respect to Net Sales of a
Product in a country in which, at the time of sale, there is a Valid Claim included within the JNJ Transferred Patent Rights covering the manufacture, use, sale, offer for sale, or importation of such Product in such country; or (ii) [*] with
respect to Net Sales of a Product in a country in which, at the time of sale, there is no Valid Claim included within the JNJ Transferred Patent Rights covering the manufacture, use, sale, offer for sale, or importation of such Product in such
country. 
 1.41 “Royalty Period” means, on a Product-by-Product and country-by-country basis, the period of
time beginning on the date of the First Commercial Sale of a Product in a country and extending through and including the later of (i) the date on which the last Valid Claim included within the JNJ Transferred Patent Rights, which Valid Claim
would be infringed by the manufacture, use, or sale of the Product, ceases to be a Valid Claim (e.g., upon expiration, lapse, disclaimer, a holding that such claim is invalid or unenforceable, the abandonment or rejection of a pending
application that includes such claim, etc.) and (ii) December 31, 2029. 
 1.42 “Seller Payables”
means any and all accounts payable, notes and other amounts payable to creditors, customers and any other Persons arising from the conduct of the Business by Seller before the Closing as shown in Section 3.4 to the Disclosure Schedule, but
excluding any Assumed Liabilities. 
  

	[*]	Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

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 1.43 “Seller Product” or “Seller Products” means any and all
products of Seller that use or incorporate any of the Transferred Intellectual Property Rights or any JNJ Transferred Intellectual Property Rights, including any documentation that accompanies such product when delivered to Seller’s customers
such as instructions, labeling and training materials. 
 1.44 “Seller Receivables” means any and all
accounts receivable, notes and other amounts receivable arising from the sale and delivery of Products or the provision of services before the Closing Date. 
 1.45 “Software” means any and all computer software, in object code and source code, and all underlying Intellectual
Property Rights in connection therewith, used in connection with the operation of the Business. 
 1.46 “Tangible
Assets” means (i) all raw materials, works-in-process, finished-goods inventories, packaging materials, brochures, graphics, and artwork (in each case, in paper and electronic format) and UPC codes relating to the Business;
(ii) all prototypes, models (whether tangible or digital, including ERP and CAD files), test devices, lab notebooks, and other materials embodying any Transferred Intellectual Property Rights; (iii) all tools, jigs, dies, and equipment
relating to the Business; and (iv) all other tangible assets relating to the Business. 
 1.47 “Tax” or
“Taxes” means any and all federal, state, local and foreign taxes, assessments and other governmental charges, duties, impositions and liabilities, including taxes based upon or measured by gross receipts, income, profits, sales,
use and occupation, and value added, ad valorem, transfer, franchise, withholding, payroll, recapture, employment, excise and property taxes as well as public imposts, fees and social security charges (including but not limited to health,
unemployment and pension insurance), together with all interest, penalties and additions imposed with respect to such amounts and any obligation under any agreement or arrangement with any other Person with respect to such amounts and including any
liability for taxes of a predecessor entity. 
 1.48 “Third Part(y/ies)” means any Person(s) other than
Buyer, Seller or their respective Affiliates. 
 1.49 “Transferred Books and Records” means Books and Records
of Seller related to the Business; provided, however, that Transferred Books and Records shall not include Seller’s corporate minute book, general ledger, tax returns, Books and Records relating to Seller’s physical facilities,
directors, officers, shareholders, optionholders, financial and other accounting records necessary for the preparation of financial statements, tax returns or government-required filings, personnel records and other records that Seller is required
by law to retain in its possession (provided that to the extent consistent with law copies of such personnel records shall be provided to Buyer) and other Books and Records primarily related to Seller as a corporate entity. 
 1.50 “Transferred Contracts” means those Contracts listed on Schedule 2.1, which, for purposes of clarification
includes the Existing JNJ-ACI License which is being transferred to Buyer by way of termination of such agreement pursuant to the Termination Agreement and the execution of this Agreement and of the JNJ APA between JNJ and Buyer. 
  

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 1.51 “Transferred Intellectual Property Rights” means all Intellectual
Property Rights owned or transferable by Seller, including without limitation the Transferred Trademarks and other Intellectual Property Rights listed or described on Schedule 2.1, but excluding the Excluded Assets. 
 1.52 “Transferred Regulatory Approvals” means the pending and/or granted approvals and registrations that are owned or
controlled by the Seller as of the Closing for the investigation, manufacture, distribution, sale and/or marketing of any Product (including without limitation any pending and/or cleared 510(k) notifications or pre-marketing approvals (PMAs)) and
can be transferred to Buyer in accordance with the terms of this Agreement under applicable law, including without limitation those items set forth on Schedule 2.1, and all supplements and amendments thereto; and (ii) all dossiers,
reports, data and other written materials filed as part of such approvals or registrations, or maintained by the Seller or its contractors and relating to such approvals or registrations. 
 1.53 “Transferred Trademarks” means all registered Trademarks, pending applications for Trademark registrations, and
common law Trademarks of Seller in any jurisdiction in the world including without limitation the Trademarks listed on Schedule 2.1. 
 1.54 “Valid Claim” means (a) any claim included in an issued and unexpired U.S. or foreign patent that has not been held permanently revoked, unenforceable, or invalid by a decision of a court or
other governmental agency of competent jurisdiction, and that has not been admitted to be invalid or unenforceable through reissue, disclaimer, or otherwise; and (b) any claim included in a pending U.S. or foreign patent application that was
filed and is being prosecuted in good faith and has not been abandoned or finally disallowed without the possibility of appeal or re-filing of the application, provided that such claim has not been pending for more than seven (7) years from the
priority date of such patent application. 
 2. Purchase and Sale of the Purchased Assets. 
 2.1 Purchased Assets. Subject to the terms and conditions of this Agreement, Buyer hereby agrees to purchase from Seller, and
Seller hereby agrees to sell, convey, transfer and assign to Buyer, on the Closing Date (as defined in Section 2.8), all of Seller’s right, title and interest in and to the following assets, including without limitation all those assets
described on Schedule 2.1 attached hereto, but excluding the Excluded Assets (collectively the “Purchased Assets”): 
 (a) The Transferred Intellectual Property Rights; 
 (b) All rights of Seller under the
Transferred Contracts existing as of or arising after the Closing, but excluding for purposes of clarification the Seller Receivables; 
 (c) The Transferred Books and Records; 
  

 -8- 

 (d) All Documentation; 
 (e) All Tangible Assets, other than Excluded Assets set forth at Schedule 2.2; 
 (f) The Transferred Regulatory Approvals; 
 (g) All other assets of Seller used in the operation of the Business and not described in Section 2.2 below; 
 (h) Any rights under Contracts that are not Transferred Contracts (including without limitation employment agreements, consulting agreements, and employee assignment of inventions agreements) to the extent necessary
to enforce the Transferred Intellectual Property Rights; and 
 (i) All rights to recover past, present and future damages for
the breach, infringement or misappropriation, as the case may be, of any of the foregoing. 
 2.2 Excluded Assets.
Seller shall retain all assets of Seller that are not Purchased Assets (collectively, the “Excluded Assets”), which retained assets shall include, without limitation: 
 (a) All cash, cash equivalents and bank accounts owned by Seller on the Closing Date, including for purposes of clarification any pre-paid
deposits received by Seller from its customers; 
 (b) All pre-paid deposits made by Seller to a Third Party; 
 (c) All Contracts other than the Transferred Contracts; 
 (d) All rights of Seller under the Transferred Contracts existing as of or arising on or prior to the Closing, including all Seller
Receivables; 
 (e) All Books and Records other than Transferred Books and Records; 
 (f) All Tangible Assets set forth at Schedule 2.2; 
 (g) All of Seller’s insurance policies and rights of Seller thereunder; 
 (h) All rights of Seller under this Agreement and other agreements executed in conjunction herewith; and 
 (i) All rights to recover past, present and future damages for the breach, infringement or misappropriation, as the case may be, of any of
the foregoing. 
  

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 2.3 Assumption of Liabilities. As additional consideration for the Purchased
Assets, Buyer shall assume the following (collectively the “Assumed Liabilities”): 
 (a) All obligations of
Seller under the Byers Peak Contract (as defined on Schedule 2.1) whether arising before or after the Closing Date, and all obligations of Seller under all other Transferred Contracts that arise after the Closing Date; and 
 (b) All warranty and product liability liabilities of Seller (express or implied) arising with respect to the Seller Products, whether
arising before or after the Closing Date; provided, however, that if at any time within one year of the date of this Agreement Buyer is required to pay any amount or incur any cost to satisfy any warranty or product liability liabilities of
Seller arising with respect to Seller Products sold prior to the Closing, Buyer may offset such amount against royalties due to Seller under Section 7 and shall provide appropriate document supporting any such offset. 
 Except for the Assumed Liabilities, Buyer shall not be obligated to assume or perform and is not assuming or performing any liabilities or obligations of
Seller (including Seller Payables), whether known or unknown, fixed or contingent, certain or uncertain, and regardless of when such liabilities or obligations may arise or may have arisen or when they are or were asserted, including without
limitation all liabilities arising from (i) any agreement or arrangement (whether written or oral) between or among Seller, JNJ and/or AHI, or (ii) the operation of the Business prior to Closing (the “Retained
Liabilities”), and Seller shall remain responsible for all Retained Liabilities. 
 2.4 JNJ APA. On even date
herewith, Buyer and JNJ will enter into the JNJ APA, which is attached as Exhibit B. Seller acknowledges that it has reviewed the JNJ APA and that in consideration for Buyer entering into this Agreement and the JNJ APA, Seller expressly
consents to Buyer’s right to offset claims against JNJ under the JNJ APA against the Royalty Consideration (as defined in Section 7.1(a)) and the Success Milestone (as defined in Section 7.2) payable by Buyer to Seller under this
Agreement. 
 2.5 Transfer Documents. On the Closing Date, (i) the sale of the Tangible Assets, and any other
tangible assets included in the Purchased Assets by Seller to Buyer in accordance with this Agreement will be further evidenced by a Bill of Sale in substantially the form of Exhibit C hereto (the “Bill of Sale”);
(ii) the assignment of the Purchased Assets to Buyer and assumption of the Assumed Liabilities by Buyer in accordance with this Agreement will be further evidenced by an Assignment and Assumption Agreement (the “Assignment and
Assumption Agreement”) in substantially the form of Exhibit D hereto; (iii) the assignment of the Transferred Intellectual Property Rights from Seller to Buyer in accordance with this Agreement will be further evidenced by
assignment documents relating to Trademarks in the form attached as Exhibit E hereto (the “Intellectual Property Assignments”). 
 2.6 Consideration. The consideration for the sale to Buyer of the Purchased Assets under this Agreement and the sale to Buyer of
the JNJ Purchased Assets pursuant to the JNJ APA shall consist of (i) $11,960,000 (the “ACI Cash Consideration”, which is payable pursuant to this Agreement) and the JNJ Cash Consideration (as defined in and payable under the
JNJ APA) (collectively, the “Cash Consideration”); (ii) the assumption by Buyer of the Assumed Liabilities pursuant to this Agreement; (iii) the Royalty Consideration (as defined in Section 7.1(a)); and (iv) the
potential to earn a Success Milestone (as defined in Section 7.2 and together with the Cash 

  

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Consideration and Royalty Consideration, the “Purchase Price”). For the avoidance of doubt, Buyer will not be required to make any payments
other than the JNJ Cash Consideration to JNJ in consideration for the sale to Buyer of the JNJ Purchased Assets under the JNJ APA. 
 2.7 Escrow Amount. Notwithstanding anything contained in this Agreement to the contrary, Buyer will refrain from paying to Seller at Closing [*] of the Purchase Price (the “Escrow Amount”) for collateral payment of
any amounts owed to Buyer for indemnification pursuant to Section 9 of this Agreement or for indemnification under the JNJ APA as described at Section 9.3(g). The Escrow Amount will be distributed to Buyer and/or Seller in accordance with
the terms of the Escrow Agreement. 
 2.8 The Closing. The consummation of the transactions contemplated hereby (the
“Closing”) shall take place simultaneously with the execution of this Agreement (the “Closing Date”) at the offices of Ropes & Gray LLP, 525 University Avenue, Palo Alto, California, or at such other date
and place as the Parties may agree and shall be deemed to occur at 1:00 p.m., local time, on such date. 
 (a) Closing
Deliveries of Seller. At the Closing, Seller shall deliver, or cause to be delivered to Buyer, the documents and instruments set forth in Section 5.5, in form and substance reasonably satisfactory to Buyer and its counsel. 
 (b) Closing Deliveries of Buyer. At the Closing, Buyer shall deliver, or cause to be delivered: (i) an amount equal to the ACI
Cash Consideration minus the Exclusivity Payments plus [*] to cover Colorado sales tax, consisting of (x) to Seller, [*] in cash payable by wire transfer to such account as Seller may reasonably direct, or by such other method of payment as
Seller and Buyer may mutually agree, and (y) to the Escrow Agent, [*] in cash payable by wire transfer to be held in escrow pursuant to the Escrow Agreement; and (ii) the documents and instruments set forth in Section 6.4, in form and
substance reasonably satisfactory to Seller and its counsel. 
 2.9 Allocation of Purchase Price. The Purchase Price
shall be allocated consistent with the reasonable good faith determination of Buyer after consultation with Seller and JNJ within sixty (60) days following the Closing. The Parties and JNJ acknowledge that for financial reporting purposes,
Buyer is required to determine and allocate a purchase price for the acquisition of the Purchased Assets and the JNJ Purchased Assets in accordance with GAAP in the United States, and that Buyer’s determinations under GAAP will differ from the
requirements of Section 1060 of the Internal Revenue Code and the regulations promulgated thereunder. Buyer and Seller hereby agree that the amounts set forth in the Bill of Sale (Exhibit C) represent the fair market value of all
tangible assets included in Purchased Assets. These fair market values will be used in the allocation of the Purchase Price and in the determination of state or local taxes due as of the Closing. However, the value of inventory set forth in the Bill
of Sale reflects a preliminary valuation, and is subject to the final determination of the allocation to be performed during such sixty (60) day period. After the Closing, Buyer and Seller shall make consistent use of the allocation required
under Section 1060 of the Internal Revenue Code for all Tax purposes and in all filings, declarations and reports with the Internal Revenue Service or any other applicable 

  

	[*]	Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

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taxing authority in respect thereof. In any and all actions, suits, proceedings, arbitration, or governmental or regulatory investigations or audits related
to the determination of any Tax, neither Buyer nor Seller shall contend or represent that such allocation is not a correct allocation. 
 2.10 Transfer Taxes. Buyer shall pay Seller for any sales, use, excise or similar transfer taxes that Seller may owe in connection with the sale and purchase of the Purchased Assets. Seller acknowledges that
Buyer shall purchase all inventory for resale. 
 2.11 Consents. Nothing in this Agreement shall be construed as an
attempt or agreement to assign any Transferred Contract which is non-assignable without the consent of the party or parties thereto unless such consent shall have been obtained. Buyer and Seller shall use commercially reasonable efforts to obtain
the consents of any other party required in connection with the transfer of any Transferred Contract requiring such consent and Seller shall provide Buyer with all of the benefits enjoyed by Seller under any such Transferred Contract until consent
to the assignment thereof is obtained. Buyer also hereby agrees that following the date of this Agreement, it will use commercially reasonable efforts to obtain from all parties to any Transferred Contract (other than Seller) a release of Seller
from any obligations or liabilities arising with respect to such Transferred Contract, whether now known or unknown. Neither party shall be obligated to make payment or provide any other consideration to obtain such consent or such release.

 3. Representations and Warranties of Seller. Seller hereby represents and warrants to Buyer, subject to the exceptions specifically
disclosed in the attached schedule of exceptions (the “Disclosure Schedule”), as follows: 
 3.1 Authority
and Binding Effect. Seller has the full corporate power and authority to execute and deliver this Agreement and the Ancillary Agreements. This Agreement and the Ancillary Agreements, and the consummation by Seller of its obligations contained
herein and therein, have been duly authorized by all necessary corporate actions of Seller, and this Agreement and the Ancillary Agreements have been duly executed and delivered by Seller. This Agreement and the Ancillary Agreements are valid and
binding agreements of Seller, enforceable against Seller in accordance with their respective terms. 
 3.2 Organization and
Standing. Seller is a corporation duly organized, validly existing and in good standing under the laws of the State of Colorado, and Seller is qualified to do business in the state of Colorado, which is the only jurisdiction where such
qualification is necessary and where the failure of Seller to be so qualified would have a Material Adverse Effect on Seller. Seller has the requisite corporate power and authority to conduct the Business as now conducted and as currently proposed
to be conducted, to own or lease the Purchased Assets, to use such Purchased Assets in the conduct of its Business, and to perform all of its obligations under the Transferred Contracts. Seller has delivered to Buyer or its counsel a true and
correct copy of its certificate of incorporation and bylaws, each as amended to date and in full force and effect on the date hereof. 
  

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 3.3 Financial Statements. Seller has delivered to Buyer its audited balance sheet
for the period ended June 30, 2007, its audited statements of operations, statements of stockholders’ equity, and statements of cash flows for the period from June 28, 2004 to June 30, 2007, its unaudited balance sheets and
statements of operations for the six month period ended December 31, 2007, and its unaudited balance sheets and statements of operations for the three month period ended March 31, 2008 (collectively, the “Seller Financial
Statements”). The Seller Financial Statements are correct in all material respects and present fairly the financial condition and operating results of Seller as of the date(s) and during the period(s) indicated therein. The audited Seller
Financial Statements have been prepared in accordance with GAAP applied on a consistent basis throughout the period indicated, except as disclosed therein. The unaudited Seller Financial Statements do not contain additional financial statements and
footnotes required under GAAP, and are subject to normal year-end adjustments. 
 3.4 Seller Payables and Receivables.
Section 3.4 of the Disclosure Schedule is a true and complete list of Seller Payables and Seller Receivables as of the Closing. 
 3.5 Absence of Certain Changes. Since March 31, 2008 there has not been any sale, transfer, or other disposition of, or the incurrence or imposition of any Encumbrance of any kind, on or affecting the Business or any of the
Purchased Assets, except (i) as may be described in the written terms of the Transferred Contracts; (ii) the transfer to Buyer of the Purchased Assets contemplated by this Agreement; and (iii) sales of inventory in the ordinary course
of business. 
 3.6 The Purchased Assets. Seller has, and on the Closing Date will convey and transfer to Buyer all its
interest in the Purchased Assets, including but not limited to good and valid title, free and clear of all Encumbrances of any nature whatsoever, except for Permitted Encumbrances and Encumbrances arising by the terms of the Transferred Contracts.
Section 3.6 of the Disclosure Schedule lists all Tangible Assets owned or leased by Seller for use in the Business (except as set forth on Schedule 2.2) and that were purchased or leased by Seller for a price in excess of $1,000, and all
such Tangible Assets that are material to the operation of the Business are in good operating condition, regularly and properly maintained, subject to normal wear and tear. The Purchased Assets, together with the JNJ Purchased Assets, are sufficient
for the operation of the Business. 
 3.7 Transferred Contracts. Except as set forth on Schedule 2.2, the
Transferred Contracts are all executory Contracts between Seller and any Person used in the operation of the Business, and true and complete copies of all such Contracts have been delivered to Buyer. Except as set forth on Schedule 2.2, the
Transferred Contracts are all of the Contracts necessary for the operation of the Business. Except as would not have a Material Adverse Effect on Seller, each Transferred Contract is in full force and effect and Seller is not in breach, violation or
default thereunder nor is any Person obligated to Seller pursuant to any such Transferred Contract in breach, violation or default thereunder. Seller has not received notice that Seller has breached, violated or defaulted under, any of the terms or
conditions of any Transferred Contract. Immediately following the Closing, and except as would not have a Material Adverse Effect on Seller, Buyer will be permitted to exercise all of the rights Seller had immediately prior to the Closing under the
Transferred Contracts without the payment of any additional amounts or consideration other than ongoing fees or payments which Seller would otherwise be required to pay pursuant to the terms of such Transferred Contracts had the transactions
contemplated by this Agreement not occurred; provided, however, that Seller makes no representation or warranty as to 

  

 -13- 

 
restrictions that may exist, or payments that may be required, by virtue of any condition applicable to Buyer or any action or inaction taken by Buyer and
the Existing JNJ-ACI License will be terminated pursuant to the Termination Agreement. Other than the Transferred Contracts and other than as contemplated by the Termination Agreement, there is no agreement (not to compete or otherwise), commitment,
judgment, injunction, order or decree to which Seller is a party relating to the Business or otherwise binding upon the Seller or the Business which has or may have the effect of prohibiting or impairing the transactions contemplated by this
Agreement, or affecting the validity, use or enforceability of the Purchased Assets. Other than the Transferred Contracts, Seller has not entered into any agreement which places any restrictions upon Seller with respect to selling, licensing or
otherwise distributing any of the Seller Products, the Transferred Intellectual Property Rights, or the JNJ Transferred Intellectual Property Rights to, or providing services to, customers or potential customers or any class of customers, in any
geographic area, during any period of time or in any segment of the market. To Seller’s Knowledge, no party to a Transferred Contract that requires consent to transfer has indicated to Seller that it is unwilling to provide such consent or to
provide a release of Seller in connection therewith. 
 3.8 Intellectual Property 
 (a) Each item of Transferred Intellectual Property Rights is held by Seller free and clear of any Encumbrances (including without
limitation any distribution rights and royalty rights), other than Permitted Encumbrances and Encumbrances arising by the terms of the Transferred Contracts or the JNJ APA. Except as provided in the Transferred Contracts, all Transferred
Intellectual Property Rights will be fully transferable, alienable or licensable by Buyer without restriction and without payment of any kind to any Third Party. The Transferred Intellectual Property Rights, the Transferred Contracts and the JNJ
Transferred Intellectual Property Rights constitute all of the Intellectual Property Rights used in or necessary for the operation of the Business. 
 (b) Schedule 2.1 accurately and completely identifies all Filed Intellectual Property Rights that are owned or transferable by Seller. All Filed Intellectual Property Rights included in the Transferred
Intellectual Property Rights are currently in compliance with formal legal requirements (including payment of filing, examination and maintenance fees and proofs of use), and are not subject to any unpaid maintenance fees or taxes or actions falling
due within ninety (90) days after the Closing Date. There are no proceedings or actions before any court, tribunal, administrative agency, or commission (including the United States Patent and Trademark Office or equivalent authority anywhere
in the world) related to any such Filed Intellectual Property Rights included in the Transferred Intellectual Property Rights. 
 (c) To the extent that any Transferred Intellectual Property Rights were originally owned or created by or for any Third Party, but excluding any Off the Shelf Software (i) the Seller has a written agreement with such Third Party or
Third Parties with respect thereto, pursuant to which the Seller has obtained complete, unencumbered and unrestricted ownership (except for Permitted Encumbrances and Encumbrances arising by the terms of the Transferred Contracts) and is the
exclusive owner of, all such Transferred Intellectual Property Rights by valid assignment or otherwise; (ii) the transfer of the Transferred Intellectual Property Rights from Seller to Buyer hereunder does not violate such Third Party 

  

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agreements; (iii) except as may be provided in the Transferred Contracts, such Third Parties have not retained and do not have any rights or licenses
with respect to the Transferred Intellectual Property Rights; and (iv) to the Knowledge of Seller, no valid basis exists for such Third Party to challenge or object to this Agreement. 
 (d) Except pursuant to any Transferred Contracts or as will be transferred to Buyer pursuant to the terms of this Agreement, Seller has
not transferred ownership of, or granted any license of or right to use, or authorized the retention of any rights to use, to any Third Party, (i) any Transferred Intellectual Property Rights or (ii) any JNJ Transferred Intellectual
Property Rights. 
 (e) No government funding, facilities of a university, college, other educational institution or research
center or funding from Third Parties was used by Seller in the development of the Transferred Intellectual Property Rights owned by Seller. To the Knowledge of Seller, no current or former employee, consultant or independent contractor of Seller,
who was involved in, or who contributed to, the creation or development of any Transferred Intellectual Property Rights has performed services for the government, a university, college, or other educational institution, or a research center, during
a period of time during which such employee, consultant or independent contractor was also performing services for Seller. 
 (f) Other than the Transferred Contracts and the proprietary rights agreements described in Section 3.8(j) below, there are no Contracts, whether written or oral, express or implied, to which Seller is a party with respect to any
Transferred Intellectual Property Rights. 
 (g) Neither the operation of the Business, including the making, using, selling,
licensing and distribution of Seller Products by Seller or immediately following the Closing by Buyer did, do, or will: (i) to Seller’s Knowledge, infringe or misappropriate the Intellectual Property Rights of any Person or (ii) to
Seller’s Knowledge, violate the rights of any Person (including rights to privacy or publicity). To the Knowledge of Seller, Seller has not received notice from any Person claiming that the Business, the Purchased Assets or the JNJ Purchased
Assets infringe or misappropriate the Intellectual Property Rights of any Person (nor does Seller have Knowledge of any valid basis therefor). To Seller’s Knowledge, no Person is infringing or misappropriating the Transferred Intellectual
Property Rights. 
 (h) There are no contracts, licenses or agreements between Seller and any other Person with respect to the
Transferred Intellectual Property Rights or the JNJ Transferred Intellectual Property Rights, under which there is any dispute or, to Seller’s Knowledge, any threatened dispute regarding the scope of such agreement or performance under such
agreement. 
 (i) Seller has taken all commercially reasonable steps that are required to protect Seller’s rights in
confidential information and trade secrets of Seller associated with or related to the Transferred Intellectual Property Rights and the JNJ Transferred Intellectual Property Rights. 
  

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 (j) Seller has and enforces a policy requiring each employee and consultant of Seller to
execute a proprietary rights agreement substantially in the form(s) set forth in Section 3.8(j) of the Disclosure Schedule and all current and former employees and consultants of Seller who have created or modified any of the Transferred
Intellectual Property Rights that are material to the operation of the Business have executed such an agreement. 
 (k) Seller
is not required to make or accrue any royalty payment to any Third Party in connection with any of the Purchased Assets, other than as contemplated by the Existing JNJ-ACI License. 
 3.9 Product Liabilities and Warranties. As of April 24, 2008 Seller has not received written notice from any Person claiming
that the Seller Products manufactured, sold, leased, licensed or delivered by Seller give rise to any liability for defective or improper design or manufacture, injury to individuals or property or breach of any contractual commitment of Seller or
of any express or implied warranties made by Seller, and to Seller’s Knowledge there is no valid basis for any such liability. No product manufactured, sold, leased, distributed, licensed or delivered by Seller directly to consumers is subject
to any guaranty, warranty, or other indemnity beyond Seller’s applicable standard terms and conditions of sale or lease, those implied or imposed by applicable law, or as set forth in the terms of the Transferred Contracts. 
 3.10 Conflicts; Consents. The execution and delivery by Seller of this Agreement and the Ancillary Agreements, and the consummation
of the transactions contemplated hereby and thereby, will not conflict with or result in any violation of, or default under, or give rise to a right of termination, cancellation, modification or acceleration of any obligation or loss of any benefit
under (any such event, a “Conflict”) (i) any provision of the certificate of incorporation or bylaws of Seller, each as amended to date; (ii) Contracts to which Seller or any of its properties or assets (including
intangible assets) is subject; or (iii) any judgment, order, decree, statute, law, ordinance, rule or regulation applicable to Seller or any of its properties or assets (tangible and intangible), except in any such case where it would not have
a Material Adverse Effect on Seller. Subject to the consent of Seller’s board of directors and shareholders (which consent shall be obtained prior to Closing), except as would not have a Material Adverse Effect on Seller, it is not necessary
for Seller to take any action or to obtain any approval, consent or release by or from any Third Party, governmental or other, to enable Seller to enter into or perform its obligations under this Agreement and the Ancillary Agreements. 

3.11 Compliance with Law/Permits. Except as may be required by any applicable bulk sales laws, the Seller is in compliance with
all, and is not in violation of any, law, ordinance, order, decree, rule or regulation of any governmental agency or authority, the violation of or noncompliance with which could have a Material Adverse Effect on Seller. No unresolved
(i) charges of violations of laws or regulations relating to Seller’s business have been made or threatened; (ii) proceedings or investigations relating to Seller’s business are pending or, to Seller’s Knowledge, have been
threatened; and (iii) citations or notices of deficiency have been issued or have been threatened, against Seller relating to or arising out of its business by any governmental authorities, which have had or could reasonably be expected to
have, individually or in the aggregate, a Material Adverse Effect on Seller; and, to Seller’s Knowledge, there are no facts or circumstances upon which any such charges, proceedings, investigations, citations, or deficiency notices reasonably
may validly be instituted, issued or brought hereafter. 
  

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 3.12 Litigation and Proceedings. There is no claim, action, suit, proceeding or
investigation (or any counter or cross-claim in an action brought by or on behalf of Seller), whether at law or in equity, or before or by any governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, or
before any arbitrator of any kind, that is pending or, to Seller’s Knowledge, threatened, against Seller, which (i) could reasonably be expected to adversely affect Seller’s ability to perform its obligations under this Agreement or
complete any of the transactions contemplated hereby; or (ii) involves the possibility of any judgment or liability, or which may become a claim, against Buyer, its business or the Purchased Assets or JNJ Purchased Assets. Seller is not subject
to any judgment, order, writ, injunction, decree or award of any court, arbitrator or governmental department, commission, board, bureau, agency or instrumentality having jurisdiction over Seller, any of the Purchased Assets or JNJ Purchased Assets
or the Business that affects, involves or relates to the Purchased Assets or the JNJ Purchased Assets. Without limiting the generality of the foregoing, to the Knowledge of Seller, no stockholder, director, officer, member, manager, or employee of
Seller, JNJ, or AHI has threatened or implied the possibility of, orally or in writing, any claim, action, suit, proceeding or investigation against Seller, JNJ, AHI, or Buyer relating to the transactions contemplated by this Agreement or the JNJ
APA. 
 3.13 Tax Matters. To the extent failure to do so would adversely impact Buyer or the Purchased Assets,
Buyer’s use of the Purchased Assets or JNJ Purchased Assets or operation of the Business, (a) as of the Closing Date, Seller will have paid all Taxes it is required to pay and will have withheld with respect to its employees all federal,
state and foreign income taxes and social security charges and similar fees under the Federal Insurance Contribution Act, Federal Unemployment Tax Act and other Taxes required to be withheld; and (b) Seller has not been delinquent in the
payment of any Tax, nor is there any Tax deficiency outstanding, assessed or proposed against Seller, nor has Seller executed any waiver of any statute of limitations on or extending the period for the assessment or collection of any Tax. To the
extent relevant to the Purchased Assets or the Business, (i) as of the Closing Date, Seller will have prepared and timely filed all required federal, state, local and foreign returns, estimates, information statements and reports
(“Returns”) relating to any and all Taxes concerning or attributable to Seller or its operations and required to have been filed on or before the Closing Date (taking into account extensions to file) and such Returns are or will be
true and correct and have been or will be completed in accordance with applicable law; and (ii) no audit or other examination of any Return of Seller is presently in progress, nor has Seller been notified of any request for such an audit or
other examination. Seller does not have, and to Seller’s Knowledge, there is no basis for, the assertion of any claim for any liabilities for unpaid Taxes for which Buyer would become liable as a result of the transactions contemplated by this
Agreement. There are (and immediately following the Closing there will be) no Encumbrances on the Purchased Assets relating to or attributable to Taxes, other than Permitted Encumbrances. To Seller’s Knowledge, there is no basis for the
assertion of any claim relating or attributable to Taxes which, if adversely determined, would result in any Encumbrance, other than Permitted Encumbrances, on the Purchased Assets. 
  

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 3.14 No Broker. Seller has not retained or used the services of an agent, finder
or broker in connection with the transactions contemplated by this Agreement. 
 4. Representations and Warranties of Buyer. Buyer
represents and warrants to Seller as follows: 
 4.1 Authority and Binding Effect. Buyer has the full corporate power
and authority to execute and deliver this Agreement and the Ancillary Agreements. This Agreement and the Ancillary Agreements, and the consummation by Buyer of its obligations contained herein and therein, have been duly authorized by all necessary
corporate actions of Buyer, and this Agreement and the Ancillary Agreements have been duly executed and delivered by Buyer. This Agreement and the Ancillary Agreements are valid and binding agreements of Buyer, enforceable against Buyer in
accordance with their respective terms. 
 4.2 Organization and Standing. Buyer is a corporation duly organized,
validly existing and in good standing under the laws of the State of Delaware, and Buyer is qualified to do business in each jurisdiction where such qualification is necessary and where the failure to be so qualified would have a Material Adverse
Effect on Buyer. Buyer has the requisite corporate power and authority to conduct its business as now conducted, to own or lease the Purchased Assets, to use such Purchased Assets in the conduct of its business, and to perform all of its obligations
under the Transferred Contracts. 
 4.3 Conflicts; Consents. The execution and delivery by Buyer of this Agreement and
the Ancillary Agreements, and the consummation of the transactions contemplated hereby, will not give rise to a Conflict with respect to (i) any provision of the certificate of incorporation or bylaws of Buyer, each as amended to date;
(ii) Contracts to which Buyer or any of its properties or assets (including intangible assets) is subject; or (iii) any judgment, order, decree, statute, law, ordinance, rule or regulation applicable to Buyer or any of its properties or
assets (tangible and intangible), except in any such case where it would not have a Material Adverse Effect on Buyer. It is not necessary for Buyer to take any action or to obtain any approval, consent or release by or from any Third Party,
governmental or other, to enable Buyer to enter into or perform its obligations under this Agreement and the Ancillary Agreements. 
 4.4 Compliance with Law/Permits. Buyer is in compliance with all, and is not in violation of any, law, ordinance, order, decree, rule or regulation of any governmental agency or authority, the violation of or noncompliance with which
could have a Material Adverse Effect on Buyer. No unresolved (i) charges of violations of laws or regulations relating to Buyer’s business have been made or threatened; (ii) proceedings or investigations relating to its business are
pending or, to Buyer’s knowledge, have been threatened; and (iii) citations or notices of deficiency have been issued or have been threatened, against Buyer relating to or arising out of its business by any governmental authorities, which
have had or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect on Buyer. 
 4.5
Litigation and Proceedings. There is no action, suit, proceeding or investigation (or any counter or cross-claim in an action brought by or on behalf of Buyer), whether at law or in equity, or before or by any governmental department,
commission, board, 

  

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bureau, agency or instrumentality, domestic or foreign, or before any arbitrator of any kind, that is pending or, to Buyer’s knowledge, threatened,
against Buyer, which (i) could reasonably be expected to adversely affect Buyer’s ability to perform its obligations under this Agreement or complete any of the transactions contemplated hereby; or (ii) to Buyer’s knowledge,
involves the possibility of any judgment or liability, or which may become a claim, against Seller, its business or the Excluded Assets. Buyer is not subject to any judgment, order, writ, injunction, decree or award of any court, arbitrator or
governmental department, commission, board, bureau, agency or instrumentality having jurisdiction over Buyer, any of the Purchased Assets or the JNJ Purchased Assets that affects, involves or relates to the Purchased Assets or the JNJ Purchased
Assets. 
 4.6 No Broker. Buyer has not retained or used the services of an agent, finder or broker in connection with
the transactions contemplated by this Agreement. 
 5. Conditions Precedent to the Obligations of Buyer. The obligation of Buyer to
consummate the purchase of the Purchased Assets from Seller is subject to the fulfillment, or the waiver by Buyer, at or prior to the Closing, of each of the following conditions precedent: 
 5.1 JNJ APA. Buyer and JNJ shall have executed the JNJ APA. 
 5.2 Representations and Warranties. The representations and warranties made by Seller in this Agreement (a) that are not
qualified by materiality or Material Adverse Effect on Seller will be true and correct, in all material respects, at and as of the Closing Date, and (b) that are qualified by materiality or Material Adverse Effect on Seller will be true and
correct in all respects at and as of the Closing Date (in each case, except for any such representations and warranties that are made as of a particular date, which will be true and correct in all material respects as of such particular date).

 5.3 Certificates. Buyer shall have received from Seller one or more certificates executed by an authorized officer
of Seller, dated as of the Closing Date and reasonably satisfactory in form and substance to Buyer, certifying that (i) the condition set forth at Section 5.2 above has been met; (ii) Seller has performed and complied, in all material
respects, with all of Seller’s covenants required to have been performed or complied with by Seller pursuant hereto on or prior to the Closing Date; (iii) attached to such certificate(s) are true and correct copies of Seller’s
certificate of incorporation, by-laws, and resolutions of the Board of Directors and stockholders of Seller approving the execution and delivery of this Agreement and the Ancillary Agreements and the consummation of the transactions contemplated
hereby and thereby; and (iv) attached to such certificate(s) are true and correct copies of the Seller Financial Statements. 
 5.4 Termination of Existing JNJ-ACI License. JNJ and Seller shall have executed the Termination Agreement between Seller and JNJ, which is attached as Exhibit F hereto (the “Termination Agreement”).

 5.5 Delivery of Additional Documents. On the Closing Date, Seller shall deliver, or cause to be delivered, to Buyer
the following documents and instruments, in form and substance satisfactory to Buyer and its counsel, unless waived in writing by Buyer: 
 (a) Bill of Sale. The Bill of Sale, duly executed by the Seller; 
  

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 (b) Assignment and Assumption Agreement. The Assignment and Assumption Agreement,
duly executed by the Seller; 
 (c) Intellectual Property Assignments. The Intellectual Property Assignments, duly
executed by the Seller; 
 (d) Escrow Agreement. The Escrow Agreement, duly executed by Seller; 
 (e) Good Standing Certificates. Good standing certificate of Seller, dated as of a date that is not more than five (5) days
prior to the Closing Date, from the Secretary of State of Colorado; 
 (f) Intellectual Property Documents. Evidence of
Seller’s authorization to its intellectual property counsel to deliver files relating to the Transferred Intellectual Property Rights and JNJ Transferred Intellectual Property Rights to Buyer’s counsel; and 
 (g) Other Documents. Such other documents and instruments as Buyer or Buyer’s counsel may reasonably request so as better to
evidence or effectuate the transactions contemplated hereby. 
 6. Conditions Precedent to Obligations of Seller. The obligation of
Seller to consummate the sale of the Purchased Assets to Buyer is subject to the fulfillment, or the waiver by Seller, at or prior to the Closing, of each of the following conditions precedent: 
 6.1 JNJ APA. Buyer and JNJ shall have executed the JNJ APA. 
 6.2 Representations and Warranties. The representations and warranties made by Buyer in this Agreement (a) that are not
qualified by materiality or Material Adverse Effect on Buyer will be true and correct, in all material respects, at and as of the Closing Date, and (b) that are qualified by materiality or Material Adverse Effect on Buyer will be true and
correct in all respects at and as of the Closing Date (in each case, except for any such representations and warranties that are made as of a particular date, which will be true and correct in all material respects as of such particular date).

 6.3 Certificates. Seller shall have received from Buyer a certificate executed by an authorized officer of Buyer,
dated as of the Closing Date and reasonably satisfactory in form and substance to Seller, certifying that (i) the condition set forth at Section 6.2 above has been met; (ii) Buyer has performed and complied, in all material respects,
with all of Buyer’s covenants required to have been performed or complied with by Buyer pursuant hereto on or prior to the Closing Date; and (iii) attached to such certificate are true and correct copies of Buyer’s certificate of
incorporation, by-laws, and resolutions of the Board of Directors of Buyer approving the execution and delivery of this Agreement and the Ancillary Agreements and the consummation of the transactions contemplated hereby and thereby. 
  

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 6.4 Delivery of Additional Documents. On the Closing Date, Buyer shall deliver, or
cause to be delivered, to Seller the following documents and instruments, in form and substance satisfactory to Seller and its counsel, unless waived in writing by Seller: 
 (a) Bill of Sale. The Bill of Sale, duly acknowledged by Buyer. 
 (b) Assignment and Assumption Agreement. The Assignment and Assumption Agreement, duly executed by Buyer. 
 (c) Escrow Agreement. The Escrow Agreement, duly executed by Buyer. 
 (d) Good Standing Certificates. A good standing certificate of Buyer, dated as of a date that is not more than five (5) days
prior to the Closing Date, from the Secretaries of States of Delaware and California; and 
 (e) Other Documents. Such
other documents and instruments as Seller or Seller’s counsel may reasonably request so as better to evidence or effectuate the transactions contemplated hereby. 
 7. Royalty Payments. 
 7.1 Royalties. 
 (a) Royalty Rate. Subject to the provisions in this Section 7.1 and Section 7.4, on a Product-by-Product and
country-by-country basis, Buyer will pay to Seller, on a quarterly basis, the Royalty Rate on Net Sales of any Product during the applicable Royalty Period (the “Royalty Consideration”). After expiration of the Royalty Period for a
Product, no further royalty payments will be payable in respect of sales of such Product. 
 (b) Cumulative Royalties.
The obligation to pay the Royalty Consideration will be imposed only once with respect to each unique Product, regardless of how many Valid Claims included within the JNJ Transferred Patent Rights would, absent the transfer by JNJ to Buyer of the
JNJ Transferred Patent Rights under the JNJ APA, be infringed by the manufacture, use, or sale of such Product. In no event will royalties be payable under this Agreement with respect to the sale of a Product for which royalties are due to AHI
pursuant to an agreement between Buyer and AHI as contemplated in Section 8.3. 
 (c) Combination/Bundled
Products. In the event that a Product is sold by Buyer or its Affiliates or Licensees in combination with one or more products which is itself not a Product (including without limitation the sale of a Product at a discounted price in
consideration for the customer’s simultaneous purchase of an additional product which is not itself a Product), then Net Sales shall be calculated by multiplying the sales price of such combination sale by the fraction A/(A+B) where A is the
Fair Market Value of the Product(s) and B is the Fair Market Value of the other product(s) in the combination sale. 
  

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 (d) Payment Obligations. After Buyer has made cumulative total payments of [*] in
Royalty Consideration under this Agreement and the JNJ APA, Buyer will have no further obligations to make royalty payments under Section 7.1(a). 
 7.2 Success Milestone. If the amount of Net Sales of Products for any calendar year between and including 2011 and 2014 is greater than sixty million dollars ($60,000,000), then Buyer will pay to Seller a
one-time milestone payment (the “Success Milestone”) of seven million five hundred thousand dollars ($7,500,000) within sixty (60) days after the end of the earliest such calendar year. For clarity, even if the amount of Net
Sales of Products is greater than sixty million dollars ($60,000,000) in more than one calendar year, Buyer will only be required to make the Success Milestone payment one time. 
 7.3 Royalty Buyout. During the period starting January 1, 2014 and ending December 31, 2014, Buyer will have the option
upon thirty (30) days’ notice to Seller to satisfy its obligations to pay the remaining Royalty Consideration due under this Agreement and the JNJ APA in a single payment (the “Royalty Buyout”), based on the following
formula: if the compounded annual growth rate (“CAGR”) of Royalty Consideration beginning January 1, 2011 and ending December 31, 2013 (i) is less than [*], the Royalty Buyout will be equal to [*] the average annual
Royalty Consideration paid during that period; (ii) is between [*], the Royalty Buyout will be equal to [*] the average annual Royalty Consideration paid during that period; and (iii) is greater than [*], the Royalty Buyout will be equal
to [*] the average annual Royalty Consideration paid during that period. If Buyer exercises its option to pay the Royalty Buyout in accordance with the terms of this Section 7.3, then as of the date Seller receives payment of the Royalty
Buyout, Buyer will have no further royalty obligations under this Agreement or the JNJ APA. 
 7.4 Royalty Adjustments and
Offsets. 
 (a) Third Party Licenses Necessary to Commercialize. If Buyer or its Affiliate or Licensee enters into
an agreement after the Effective Date with one or more Third Parties to obtain a license under a patent or other right that Buyer or its Affiliate or Licensee reasonably believes or expects to be necessary to practice the Transferred Intellectual
Property Rights or the JNJ Transferred Intellectual Property Rights with respect to Products in any country (including, e.g., rights under Third Party patent applications that, if issued, would be necessary) (each such Third Party license referred
to herein as a “Third Party License”), then any Royalty Consideration otherwise payable to Seller under this Agreement with respect to Net Sales of any Product in such country will be reduced by the amount of royalties or other
payments paid by Buyer or its Affiliate or Licensee to Third Parties pursuant to such additional Third Party Licenses. Notwithstanding the foregoing, in no event will the offsets taken pursuant to this Section 7.4(a) with respect to the first
Third Party License granted reduce the aggregate Royalty Consideration payable for any Calendar Quarter (calculated prior to any offsets or adjustments taken under this Section 7.4) by more than fifty percent (50%); provided, however,
that this limitation will not apply to Third Party Licenses granted from former employees of or consultants to Seller or its Affiliates. If Buyer or its Affiliate or Licensee enters into any additional Third Party Licenses, the aggregate Royalty
Consideration payable for any Calendar Quarter may be further reduced, subject to the limit set forth in Section 7.4(d). 
  

	[*]	Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

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 (b) Third Party Actions. In the event a Third Party commences any action against
Buyer alleging that a Product violates the Third Party’s Intellectual Property Rights, then any Royalty Consideration otherwise payable to Seller under this Agreement with respect to Net Sales of such Product will be reduced by the amount of
Buyer’s expenses related to the action, including attorneys’ fees and costs and experts’ fees and costs; provided, however, that if Buyer ultimately recovers attorneys’ fees or any other expenses that Buyer had previously
offset, then Buyer will reimburse Seller for such offset expenses. Notwithstanding the foregoing, in no event will the offsets taken pursuant to this Section 7.4(b) reduce the aggregate Royalty Consideration payable for any Calendar Quarter
(calculated prior to any offsets or adjustments taken under this Section 7.4) by more than fifty percent (50%). 
 (c)
Competitive Third Party Devices. If a directly competitive radio-frequency ablation device is commercialized by a Third Party in any country (a “Competitive Third Party Device”), and if after the first sale of such
Competitive Third Party Device in the applicable country Buyer experiences a twelve percent (12%) or more decrease in sales, market share, or average selling price, as determined by comparing the applicable Calendar Quarter to the twelve
(12) month average immediately prior to that Calendar Quarter, with respect to a Product sold by Buyer in that country, then the Royalty Rate with respect to such Product in such country will be reduced by fifty percent (50%) from the
Royalty Rate otherwise applicable to such Product in such country, until such Third Party ceases to sell Competitive Third Party Devices in that country, after which the Royalty Rate will revert to the level otherwise applicable under this
Agreement. Buyer, in its sole commercially reasonable judgment, will determine if the Competitive Third Party Device infringes a Valid Claim included within the JNJ Transferred Patent Rights and if enforcement actions should be taken. 
 (d) Maximum Offset. Notwithstanding anything to the contrary herein, and except as provided in the following sentence, in no event
will the aggregate Royalty Consideration payable for any Calendar Quarter, after all offsets and adjustments under this Section 7.4 have been applied (but excluding offsets allowed under other sections of this Agreement, including without
limitation offsets for indemnification claims under Section 9.3(e)), be less than [*] of aggregate Net Sales. The offsets and adjustments allowed under this Section 7.4 do not apply to Net Sales of a Product for which there is no Valid
Claim included within the JNJ Transferred Patent Rights covering the manufacture, use, sale, offer for sale, or importation of such Product in such country (in which case the Royalty Consideration for sales of such Product in such country will be
[*] of Net Sales without any offset or adjustment under this Section 7.4). All offsets will be taken in the Calendar Quarter in which such offset is incurred, and amounts that cannot be offset will be carried forward to future Calendar
Quarters. 
 7.5 Reports and Royalty Payments. Within sixty (60) days after the end of each Calendar Quarter
during the Royalty Period, Buyer will deliver to Seller a report setting forth for such Calendar Quarter the following information on a Product-by-Product and country-by-country basis: (i) the gross sales and Net Sales of each Product;
(ii) the number of units of Products sold by 

  

	[*]	Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

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Buyer, its Affiliates, and its Licensees; (iii) the basis for any adjustments to the royalty payments payable for the sale of each Product;
(iv) the royalty payments due under this Agreement for the sale of each Product; and (v) the applicable exchange rate as determined pursuant to Section 7.6(b). Buyer will remit the total royalty payments due for the sale of Products
during such Calendar Quarter at the time such report is made. No such reports or royalty payments will be due for any Product before the First Commercial Sale of such Product. 
 7.6 Payment Provisions Generally. 
 (a) Taxes and Withholding. All payments under this Agreement will be made without any deduction or withholding for or on account of any tax unless such deduction or withholding is required by applicable laws or
regulations. If Buyer is so required to deduct or withhold, Buyer will (i) promptly notify Seller of such requirement; (ii) pay to the relevant authorities the full amount required to be deducted or withheld promptly upon the earlier of
determining that such deduction or withholding is required or receiving notice that such amount has been assessed against Seller; (iii) promptly forward to Seller an official receipt (or certified copy) or other documentation reasonably
acceptable to Seller evidencing such payment to such authorities; (iv) make payments due to Seller net of such deductions or withholdings; and (v) provide all reasonable assistance to Seller in recovering or crediting such amounts for the
benefit of Seller. 
 (b) Payment and Currency Exchange. All amounts payable and calculations hereunder will be in
United States dollars. Whenever for the purposes of calculating the royalty payments payable under this Agreement conversion from any foreign currency will be required, all amounts will first be calculated in the currency of sale and then converted
into United States dollars using the rate of exchange quoted in the New York edition of The Wall Street Journal on the last Business Day of the applicable Calendar Quarter to which the payment relates. 
 7.7 Maintenance of Records; Audits. 
 (a) Record Keeping. Buyer will keep, and will cause its Affiliates and Licensees to keep, books and accounts of record in connection with the sale of Products and in sufficient detail to permit accurate
determination of all figures necessary for verification of royalty payments to be paid pursuant to this Agreement. Buyer will maintain, and Buyer will cause its Affiliates and Licensees to maintain, such records for a period of at least two
(2) years after the end of the calendar year in which they were generated. 
 (b) Audits. Upon thirty
(30) Business Days’ prior written notice from Seller, Buyer will permit an independent certified public accounting firm of nationally recognized standing selected by Seller and reasonably acceptable to Buyer, to examine, at Seller’s
sole expense, the relevant books and records of Buyer, its Affiliates, and its Licensees as may be reasonably necessary to verify the amounts reported by Buyer as royalty payments. An examination by Seller under this Section 7.7(b) will occur
not more than once in any calendar year and will be limited to the pertinent books and records for any Calendar Quarter ending not more than two (2) years before the date of the request. The selected accounting firm will be 

  

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provided access to such books and records at Buyer’s facility(ies) where such books and records are normally kept and such examination will be conducted
during Buyer’s normal business hours. Buyer may require the selected accounting firm to sign a standard non-disclosure agreement before providing such accounting firm access to Buyer’s facilities or records, provided that such agreement
shall permit disclosure to ACI as reasonably necessary under the terms of this Agreement and the JNJ APA, or disclosure as required by applicable law. Upon completion of the audit, the selected accounting firm will provide both Buyer and Seller a
written report disclosing any discrepancies in the reports submitted by Buyer, and, in each case, the specific details concerning any discrepancies. No other information will be provided to Seller. After Seller has performed an audit in accordance
with the provisions of this Section 7.7(b) with respect to a particular Calendar Quarter, Seller will have no right to conduct any additional audits with respect to such Calendar Quarter. 
 (c) Underpayments/Overpayments. If the accounting firm selected under Section 7.7(b) correctly concludes that additional
royalty payments were due to Seller pursuant to this Agreement, Buyer will pay to Seller the additional royalty payments within ten (10) days of the date Buyer receives such accountant’s written report so correctly concluding. If such
underpayment exceeds five percent (5%) of the royalty payments that were due to Seller, Buyer also will reimburse Seller for all reasonable expenses incurred in conducting the audit. If such accounting firm correctly concludes that Buyer
overpaid royalty payments to Seller, Seller will refund such overpayments to Buyer, within ten (10) days of the date Seller receives such accountant’s report so correctly concluding. 
 (d) Confidentiality. All financial information of Buyer that is subject to audit under Section 7.7(b) will be deemed to be
confidential information of Buyer subject to the provisions of Section 10.3 hereof, and Seller will not disclose such confidential information to any Third Party or use such confidential information for any purpose other than verifying payments
to be made or rectifying any underpayments hereunder or otherwise as allowed pursuant to Section 10.3 below. 
 8. Post-Closing
Covenants. 
 8.1 Commercially Reasonable Efforts. 
 (a) Buyer will use commercially reasonable efforts, consistent with its efforts in respect of other products which it owns or to which it
has rights, to develop and commercialize Products for the treatment of glabellar furrows during the Royalty Period; provided that Buyer will not be required to use any level of efforts to sell, market, or distribute Products in any
jurisdiction prior to receipt of all regulatory approvals reasonably deemed by Buyer to be necessary for the marketing and sale of Products in such jurisdiction. 
 (b) Buyer will spend a cumulative minimum of approximately [*] in operating expenses related to the Products and the JNJ Transferred
Intellectual Property Rights in the first two (2) years following the receipt of regulatory approval for the treatment of glabellar furrows, which investment may be in the form of research and development, acquisition of technology
enhancements, clinical studies, obtaining 

  

	[*]	Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

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regulatory approval, clinical education, sales and marketing efforts, and/or the assumption of certain employees of Seller and associated operating expenses.
The Parties agree that such investment will satisfy Buyer’s obligations under this Section 8.1 during that two year period; provided that Buyer may reasonably adjust such investment amount as a result of material unforeseen events,
including but not limited to, unfavorable developments related to regulatory approvals or Intellectual Property Rights. 
 (c)
Whether certain efforts by Buyer are deemed to be “commercially reasonable” under this Section 8.1 with respect to Products for the treatment of glabellar furrows will be determined in light of all relevant factors in the relevant
jurisdictions including (1) the market potential and rate of market growth of Products (including anticipated profit margin and the perceived market size); (2) the expense and difficulty of obtaining regulatory approval for Products in
each jurisdiction (including the extent of the indications, if any, for which Products have been approved); (3) in Buyer’s reasonable estimation, whether or not the sale of Products infringes or could infringe the Intellectual Property
Rights of Third Parties; and (4) the competitive position of Products vis-à-vis other products marketed and sold for the same indications, including with respect to the safety, efficacy, and cost of Products when compared to such other
products. Buyer’s reasonable commercial efforts may include, but are not limited to, one or more of the following: developing and using a variety of sales tools, promotions, and in-office marketing materials; organizing and sponsoring clinical
education programs; promoting Products through key opinion leader programs and customer outreach programs; promoting Products at major medical trade shows attended by plastic surgeons, facial plastic surgeons, ENT surgeons, occuloplastic surgeons,
and dermatologists; training, educating, supporting, and maintaining representatives to market and sell Products for the treatment of glabellar furrows; and applying reasonable financial, personnel, and facilities resources in support of its
Commercialization efforts. For purposes of determining whether or not Buyer is complying with its obligations under this Section 8.1, Buyer’s sales and marketing efforts for Products in all relevant jurisdictions will be considered in the
aggregate, and not by separate jurisdiction. 
 (d) Seller acknowledges and agrees that nothing in this Agreement (including,
without limitation, any schedules or attachments hereto) will be construed as representing an estimate or projection of either (i) the extent to which Products will be successfully commercialized by Buyer or (ii) the anticipated sales or
the actual value of any Product. BUYER MAKES NO REPRESENTATION OR WARRANTY, EITHER EXPRESS OR IMPLIED, THAT IT WILL BE ABLE TO SUCCESSFULLY COMMERCIALIZE ANY PRODUCT OR, IF COMMERCIALIZED, THAT IT WILL ACHIEVE ANY PARTICULAR SALES LEVEL OF SUCH
PRODUCT(S). 
 8.2 Patent Prosecution. Buyer will use good faith efforts to prosecute and maintain the JNJ Transferred
Patent Rights such that the JNJ Transferred Patent Rights cover the Products sold by Buyer. 
 8.3 Agreement with AHI.
Buyer will negotiate in good faith with AHI to enter into an agreement as outlined in the letter of intent sent by Buyer to AHI dated as of the date of this Agreement, a copy of which has been provided to Seller. Seller will not take any actions
that impede or interfere with the negotiations between Buyer and AHI. In the event that Buyer and 

  

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AHI execute an agreement as described in this Section 8.3 and Buyer is obligated to pay royalties to AHI on Products sold in the AHI Field, then
(i) Buyer will use reasonable efforts to determine whether the sale of a Product was in the Royalty Field or the AHI Field; (ii) Buyer will not be in breach of this Agreement or the JNJ APA as a result of failure to pay a royalty payment
with respect to a sale of a Product if Buyer has paid either AHI or Seller in good faith a royalty on such sale; and (iii) in the event of a dispute as to whether a Product sold by Buyer was sold in the AHI Field or the Royalty Field, the
Parties will submit the matter to dispute resolution proceedings in accordance with Section 10.11. 
 8.4 Records
Retention; Access and Investigation. After the Closing Date, Buyer shall retain the Transferred Books and Records for a period consistent with its current record-retention policies and practices, but in no event less than seven (7) years.
Buyer shall provide Seller and its representatives reasonable access to such Books and Records during normal business hours and upon reasonable notice, to enable Seller to (i) prepare financial statements or Tax returns or to act with respect
to Tax audits, (ii) prosecute or defend Third Party claims or litigation, (iii) collect Seller Receivables and (iv) take any other action reason reasonably related to this Agreement. For a period of sixty (60) days following the
Closing, upon the reasonable request of Seller, Buyer will allow a limited number of employees of Seller who are not hired by Buyer to continue to use the computer server, the computers assigned to such employees, and other necessary Purchased
Assets such as office furniture for purposes of winding down the Business (the “Remaining Assets”); provided, however ̧ that Buyer will retain sole ownership of the Remaining Assets as of the Closing, Buyer will have
full access to the Remaining Assets and the information stored thereon while they remain in Seller’s possession, and Seller will deliver such Remaining Assets to Buyer promptly upon the expiration of such forty-five (45) day period, or at
any time upon Buyer’s request. 
 8.5 Further Assurances. Seller shall provide all cooperation reasonably
requested by Buyer in connection with any effort by Buyer to establish, perfect, defend, or enforce its rights in or to the Purchased Assets and the JNJ Purchased Assets, including executing further consistent assignments, transfers, licenses, and
releases. Without limiting the generality of the foregoing, each Party will promptly notify the FDA of the transfer of the Transferred Regulatory Approvals to Buyer in a form reasonably acceptable to Buyer, and Seller cooperate with Buyer to ensure
ongoing regulatory compliance pending FDA recognition of the transfer, including providing reasonable correspondence to the FDA at the reasonable request of Buyer. In addition, to the extent Seller cannot transfer and assign any of the Transferred
Intellectual Property Rights, or any portion thereof, as of the Closing, then Seller will assign and transfer such Transferred Intellectual Property Rights at the first opportunity to do so. To the extent further transfer or assignment of any
Transferred Intellectual Property Rights is required and Seller has not, within fifteen (15) Business Days of the delivery of such assignment to Seller, (i) executed and returned to Buyer the form of assignment reasonably requested by
Buyer or (ii) delivered to Buyer a written objection to Buyer’s request, then Seller hereby irrevocably appoints Buyer as its attorney-in-fact with the right, authority, and ability to execute and enter into such assignment on behalf of
Seller. Seller stipulates and agrees that such appointment is a right coupled with an interest and will survive the incapacity or unavailability of Seller at any future time. To the extent that any of the Transferred Intellectual Property Rights
cannot be assigned and transferred by Seller, then Seller hereby grants Buyer an irrevocable, worldwide, fully-paid up, royalty-free, exclusive license, with the right to 

  

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sublicense through multiple tiers, to make, use, sell, improve, reproduce, distribute, perform, display, transmit, manipulate in any manner, create
derivative works based upon, and otherwise utilize in any manner the Transferred Intellectual Property Rights. In addition, Seller hereby releases, discharges, and covenants not to assert against Buyer or Buyer’s Affiliates, licensees, or
representatives, all claims, causes, and rights of action, whether now existing or hereinafter arising, and whether known or unknown, arising from any use or exploitation of the Transferred Intellectual Property Rights; provided, however,
that Seller does not release or covenant not to assert any claim, cause, or right of action based upon the breach of this Agreement or the JNJ APA by Buyer. Buyer shall provide all cooperation reasonably requested by Seller in connection with
any effort by Seller to establish, defend or enforce the assumption by Buyer of the Assumed Liabilities, including executing further consistent assumptions, assignments, transfers, licenses, and releases. To the extent Buyer cannot assume any of the
Assumed Liabilities, or any portion thereof, as of the Closing, then Buyer will assume such Assumed Liabilities at the first opportunity to do so. 
 8.6 Expenses. Except as otherwise provided herein, each Party shall pay all of its respective costs and expenses incurred or to be incurred by it in negotiating and preparing this Agreement and in carrying out
and closing the transactions contemplated by this Agreement, whether or not this Agreement or the transactions contemplated hereby are ever consummated. 
 8.7 Solicitation. Buyer shall have the right to solicit and offer employment or consulting engagements to Seller’s employees or consultants. Buyer will use commercially reasonable efforts to hire or
otherwise retain certain of the Seller’s sales and marketing employees, research and development employees, and/or consultants. Buyer will provide a compensation and benefits package to such hired or retained employees or consultants at least
economically comparable to that currently provided by Seller. Buyer will have no obligation or liability for employee related costs (e.g., employment benefits and severance payments) with respect to employees of Seller not hired by Buyer.
Seller further acknowledges and agrees that Buyer may freely solicit, and employ or engage, Seller’s former employees and consultants. 
 8.8 Consulting Agreements. Buyer shall negotiate in good faith with two of Seller’s employees, Dr. James Newman and Mr. Michael Janssen, for their services for at least two (2) years as
independent contractors to Buyer to assist in the future research and development and manufacturing efforts regarding Products. 
 8.9 Transition Support. Seller will provide commercially reasonable transition support to Buyer as follows in this Section 8.9, in each case at the expense of Buyer; provided, however, that it is acknowledged that (i) the
obligations of Seller set forth in this Section 8.9 apply only to the extent Seller continues to retain employees that are qualified and able to assist with the obligations set forth below; (ii) there is no affirmative obligation on the
part of Seller to retain such employees; and (iii) Seller shall be free to dismiss any employee without regard to the obligations set forth below. Notwithstanding the foregoing, Seller will not dismiss Carolyn Sterling as an employee, except
for cause, until forty-five (45) days after the Closing Date. 
  

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 (a) Books and Records; Access to Information. Seller will transfer the Transferred
Books and Records to Buyer within thirty (30) days after the Closing Date. From the Closing Date until forty-five (45) days following the Closing Date, upon reasonable notice received from Buyer and during normal business hours, Seller
shall afford Buyer and its representatives free and full access to Seller’s personnel, properties, Contracts, Books and Records and other documents and data (such rights of access to be exercised in a manner that does not unreasonably interfere
with the operations of Seller), and otherwise cooperate and assist Buyer in each case, to the extent reasonably necessary (i) to confirm that all Purchased Assets and Assumed Liabilities have been transferred to Buyer, (ii) for Buyer to
conduct the Business and use the Purchased Assets after the Closing, and (iii) for Buyer to carry out its covenants under this Agreement and the JNJ APA. Any information of Seller’s so reviewed by Buyer that does not constitute Purchased
Assets shall be kept strictly confidential by Buyer. 
 (b) Relationships. From the Closing Date until forty-five
(45) days following the Closing Date, Seller will cooperate with Buyer, at the reasonable request of Buyer, in its efforts to continue and maintain for the benefit of Buyer those relationships of Seller existing prior to the Closing Date and
specific to the Business, including relationships with regulatory authorities, licensors, customers and suppliers, and Seller will satisfy the Retained Liabilities in full as such liabilities become due and payable pursuant to their terms. Seller
will not take any action, directly or indirectly, that is designed or intended to have the effect of discouraging any supplier, distributor or customer of the Business from maintaining the same relationship with Buyer after the Closing as it
maintained with Seller prior to Closing. 
 (c) Access to Administrative Employees. From the Closing Date until
forty-five (45) days following the Closing Date, Seller will provide reasonable services of Seller’s administrative employees and any other key employees not hired by Buyer to assist with the transfer to and use by Buyer of the Purchased
Assets. 
 (d) Transfer of Quality Assurance System. From the Closing Date until forty-five (45) days following
the Closing Date, Seller will cooperate with Buyer and take commercially reasonable actions to support the transfer of Seller’s quality assurance system to Buyer or any Third Party designated by Buyer, including without limitation coordinating
such transfer with any necessary Third Parties. 
 (e) Inquiries. Seller agrees, for a period of one hundred eighty
(180) days following the Closing Date, to use good faith efforts to redirect to Buyer all inquiries concerning the Business made by any Person to Seller or any of its agents or representatives. 
 8.10 Delivery or Destruction of Copies. Promptly after transfer of the Purchased Assets to Buyer, and in no event later than sixty
(60) days following the Closing Date, Seller will determine whether any Purchased Assets or copies of Purchased Assets remain in Seller’s or its employees’ or agents’ possession (including without limitation information stored on
computer hardware) (collectively, the “Remaining Assets”). Seller will deliver to Buyer or destroy all Remaining Assets and will provide to Buyer a certificate signed by a duly authorized officer of Seller certifying such delivery
or destruction; provided, however, that Seller may destroy, rather than deliver, only those Remaining Assets that are exact copies of the Purchased Assets delivered to Buyer. 
  

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 8.11 Non-Competition. As of the Closing Date and for a period of five
(5) years thereafter, Seller covenants that Seller and each of the Key Executives will not, either by themselves or with, through or for the benefit of any Affiliate, licensee, or Third Party, make, use, sell, offer to sell, import, export, or
otherwise develop or commercialize any nerve ablation devices; provided, however, that if Buyer enters into a license agreement with AHI as contemplated in the letter of intent dated as of the date of this Agreement sent by Buyer to AHI, then
Seller and each of the Key Executives may engage in such activities, but only through or for the benefit of AHI, or its wholly-owned subsidiaries or licensees and solely in the AHI Field. The Parties acknowledge that the restriction contained
in this Section 8.11 is reasonable, valid, and necessary for the adequate protection of Buyer’s business and that Buyer would not have entered into this Agreement without the protection afforded it by this Section 8.11.
Notwithstanding the foregoing, the special exception provided on the signature page of this Agreement for Mr. Janssen will qualify the requirements of this Section 8.11 as they apply to Mr. Janssen. 
 9. Indemnification; Survival. 
 9.1 Indemnification of Buyer. Subject to the provisions of this Section 9, Seller shall indemnify and hold harmless Buyer, its stockholders, and its representatives (collectively, the “Buyer Indemnitees”), from
and against any and all damage, loss, liability and expense (including without limitation reasonable expenses of investigation and reasonable attorneys’ and consultants’ fees and expenses in connection with any action, suit or proceeding
or settlement of any of the foregoing) (collectively, “Losses”) incurred or suffered by a Buyer Indemnitee arising out of: 
 (a) any breach of the representations and warranties of Seller set forth in this Agreement; 
 (b) any breach of any covenant or agreement of Seller set forth in this Agreement or in any certificate, instrument, or other document delivered pursuant to this Agreement; 
 (c) any failure to comply with laws relating to bulk transfers or bulk sales with respect to the transactions contemplated by this
Agreement; 
 (d) claims by Seller’s or AHI’s stockholders or Seller’s or AHI’s current or former
employees that are related to this Agreement, the JNJ APA, or the transactions contemplated herein and therein; and 
 (e) the
Retained Liabilities. 
 Notwithstanding any other provision of this Agreement, the remedies provided for in this Section 9 shall
constitute the sole and exclusive remedy of Buyer and any other Buyer Indemnitee for any post-Closing claims made in connection with this Agreement or any other Losses as described in this Section 9.1, except for the actual fraud of Seller.

  

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 9.2 Indemnification of Seller. Subject to the provisions of this Section 9,
Buyer shall indemnify and hold harmless Seller, its stockholders, and its representatives (collectively, the “Seller Indemnitees”), from and against any and all Losses incurred or suffered by a Seller Indemnitee arising out of:

 (a) any breach of the representations and warranties of Buyer set forth in this Agreement; 
 (b) any breach of any covenant or agreement of Buyer set forth in this Agreement or in any certificate, instrument, or other document
delivered pursuant to this Agreement; 
 (c) the ownership or operation of the Purchased Assets or Business after the Closing;
and 
 (d) the Assumed Liabilities. 
 Notwithstanding any other provision of this Agreement, the remedies provided for in this Section 9 shall constitute the sole and exclusive remedy of Seller and any other Seller Indemnitee for any post-Closing
claims made in connection with this Agreement or any other Losses as described in this Section 9.2, except for the actual fraud of Buyer. 
 9.3 Limitations on Indemnification. 
 (a) Notwithstanding anything in Section 9.1
to the contrary, Seller shall not be obligated to indemnify Buyer or any other Buyer Indemnitee until aggregate Losses of Buyer and such Buyer Indemnitees under Section 9.1 have exceeded the Basket Amount, in which case Buyer and the other
Buyer Indemnitees shall be entitled to indemnification for the total amounts of such Losses. Notwithstanding the immediately preceding sentence, Buyer and Buyer’s Indemnitees shall be entitled to recover for, and the Basket Amount shall not
apply as a threshold to, (i) any Losses arising or resulting from fraud or fraudulent misrepresentation with respect to representations and warranties of Seller contained in this Agreement; or (ii) any liabilities for indemnification under
Section 9.1(c), 9.1(d), or 9.1(e). 
 (b) Notwithstanding anything in Section 9.2 to the contrary, Buyer shall not
be obligated to indemnify Seller or any other Seller Indemnitee until aggregate Losses of Seller and such Seller Indemnitees under Section 9.2 have exceeded the Basket Amount, in which case Seller and the other Seller Indemnitees shall be
entitled to indemnification for the total amounts of such Losses. Notwithstanding the immediately preceding sentence, Seller and Seller’s Indemnitees shall be entitled to recover for, and the Basket Amount shall not apply as a threshold to,
(i) any Losses arising or resulting from fraud or fraudulent misrepresentation with respect to representations and warranties of Buyer contained in this Agreement; (ii) Buyer’s obligations to pay the Purchase Price (including any
portion thereof to be paid after the Closing, such as the Royalty Consideration or Success Milestone); (iii) any liabilities for indemnification under Section 9.2(c) or 9.2(d); or (iv) any liability of Buyer under Section 2.10
(Transfer Taxes). 
 (c) The maximum liability of Seller for any Losses in the aggregate under Section 9.1(a) shall not
exceed eight million dollars ($8,000,000), except that there shall be no such limitation on Losses exceeding such amount that arise as a result of (i) a breach of the 

  

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representations and warranties in Section 3.1 (Authority and Binding Effect), 3.2 (Organization and Standing) or 3.10(i) or 3.10(iii) (Conflicts;
Consents); (ii) intentional, knowing or willful breach of this Agreement, fraud, or similar circumstances; or (iii) (for the avoidance of doubt) indemnification under Sections 9.1(b), 9.1(c), 9.1(d), or 9.1(e). 
 (d) No claim for indemnification shall be made pursuant to Section 9.1(a) after one year from the Closing Date; provided, however,
that claims for indemnification under Section 9.1(a) may be made for up to three (3) years from the Closing Date for Losses that arise as a result of a breach of the representations and warranties in Section 3.7 (Transferred
Contracts) and Section 3.8 (Intellectual Property). Notwithstanding the foregoing, any such claim for indemnification shall continue as to any matter as to which a claim is submitted in writing to Seller prior to such one or three-year period
and identified as a claim for indemnification pursuant to this Agreement, until such time as such claims and matters are resolved. In addition, any such claim for indemnification may be brought at any time to the extent it is based upon or involves
(i) fraud by the Indemnifying Party or (ii) claims made under Section 9.1(a) for a breach of Section 3.1 (Authority and Binding Effect), 3.2 (Organization and Standing) or 3.10(i) or 3.10(iii) (Conflicts; Consents). 

(e) Subject to the limitations set forth at this Section 9.3, Buyer may offset against the Royalty Consideration and Success
Milestone, as and when the Royalty Consideration and/or Success Milestone becomes due and payable, any amounts owed to Buyer for indemnification under Section 9.1. 
 (f) Amounts available pursuant to the Escrow Agreement and the royalty offset described in Section 9.3(e) shall be Buyer’s only
recourse for any liability of Seller under Section 9.1(a), except in the case of (i) intentional, knowing or willful breach of any representation, warranty, or covenant in this Agreement; (ii) fraud or similar circumstances; or
(iii) claims made under Section 9.1(a) for a breach of Section 3.1 (Authority and Binding Effect), 3.2 (Organization and Standing) or 3.10(i) or 3.10(iii) (Conflicts; Consents). 
 (g) Subject to the limitations set forth at Section 8.3 of the JNJ APA, Buyer may also offset against the Royalty Consideration and
Success Milestone, as and when the Royalty Consideration and/or Success Milestone becomes due and payable, any amounts owed to Buyer by JNJ for indemnification under Section 8.1 of the JNJ APA. Amounts available pursuant to the Escrow Agreement
will also be available to satisfy any liability of JNJ to Buyer under Section 8.1 of the JNJ APA. 
 9.4
Procedure. A Party seeking indemnification (the “Indemnitee”) will promptly notify the other Party (the “Indemnifying Party”) in writing of a claim or suit; provided that an Indemnitee’s failure to
give such notice or delay in giving such notice will not affect such Indemnitee’s right to indemnification under this Section 9 except to the extent that the Indemnifying Party has been prejudiced by such failure or delay. The Indemnitee
has the right to participate (a) at its own expense in the claim or suit with counsel of its own choosing and (b) in selecting counsel to be used by the Indemnifying Party in such claim or suit. The Indemnifying Party will consult with the
Indemnitee in good faith with respect to all non-privileged aspects of the defense strategy. The Indemnitee will cooperate with the Indemnifying Party as reasonably 

  

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requested, at the Indemnifying Party’s sole cost and expense. The Indemnifying Party will not settle any claim or suit without the Indemnitee’s
prior written consent unless such settlement is limited to the payment of cash by the Indemnifying Party and contains a full release of the Indemnitee. 
 10. Miscellaneous. 
 10.1 Public Announcements. Neither Party shall make any
public announcements concerning matters concerning this Agreement or the JNJ APA or the negotiation thereof without the prior written consent of the other Party unless such disclosure is required by law, in which case the announcing Party shall
provide the other Party with reasonable notice of such disclosure. 
 10.2 Assignment. This Agreement and the rights
and obligations hereunder may only be assigned by a Party upon the written consent of the other Party, and the obligations of such transferring Party will then transfer to the acquiring party upon any such assignment; provided, however, Seller may
assign this Agreement and the rights and obligations hereunder without the consent of Buyer to a liquidating trust established by Seller or its stockholders; and provided, further, that a change of control, merger, and/or purchase of substantially
all of the assets of either Party (or, in the case of Buyer, substantially all of the assets relating to the Product) shall not constitute an assignment requiring consent of the other Party. This Agreement will be binding upon the successors and
permitted assigns of the Parties and the name of a Party appearing herein will be deemed to include the names of such Party’s successors and permitted assigns to the extent necessary to carry out the intent of this Agreement. 
 10.3 Confidentiality. Each Party hereby agrees, and agrees to cause its stockholders, members, and representatives, to keep the
terms of this Agreement, the JNJ APA, and each of the Ancillary Agreements confidential and will treat and safeguard such terms with the same degree of care with which it treats its own confidential information and to limit access to such terms to
such employees, consultants, representatives and professional advisors of such Party who reasonably require such access in connection with the activities contemplated by this Agreement or otherwise to administer the terms of this Agreement. To the
extent practicable, in the event that a Party is required to disclose such terms pursuant to any law, regulation, or judicial or administrative directive, such Party will promptly notify the other Party in order to allow the other Party a reasonable
period of time to obtain protective or confidential treatment of such terms before they are disclosed. Either Party may disclose the terms of this Agreement and the Ancillary Agreements (i) to the extent required, in the reasonable opinion of
such Party’s legal counsel, to comply with applicable laws, including, without limitation, the rules and regulations promulgated by the United States Securities and Exchange Commission; and (ii) in connection with a prospective
acquisition, merger, financing, or license for such Party, to prospective acquirers or merger candidates or to existing or potential investors or licensees; provided that prior to such disclosure each such candidate or investor will agree to
be bound by obligations of confidentiality and non-use at least equivalent in scope to those set forth in this Section 10.3. Each Party acknowledges that it will be impossible to measure in money the damage to the other Party if such Party
fails to comply with the obligations imposed by this Section 10.3, and that, in the event of any such failure, the non-disclosing Party will not have an adequate remedy at law or in damages. Accordingly, each Party agrees that injunctive relief
or other equitable remedy, in addition to 

  

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remedies at law or damages, is an appropriate remedy for any such failure and will not oppose the granting of such relief on the basis that the disclosing
Party has an adequate remedy at law. Each Party agrees that it will not seek, and agrees to waive any requirement for, the securing or posting of a bond in connection with the non-disclosing Party seeking or obtaining such equitable relief.

 10.4 Severability. Any provision of this Agreement which is illegal, invalid or unenforceable shall be ineffective
to the extent of such illegality, invalidity or unenforceability, without affecting in any way the remaining provisions hereof. 
 10.5 Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California applicable to contracts executed in and to be performed in that jurisdiction, without giving effect to its
rules regarding conflicts of laws. 
 10.6 Entire Agreement; Amendment. This Agreement, the JNJ APA, the Exhibits and
Schedules hereto and thereto, and each additional agreement and document to be executed and delivered pursuant hereto constitute all of the agreements of the Parties with respect to, and supersede all prior agreements and understandings relating to
the subject matter of, this Agreement or the transactions contemplated by this Agreement. This Agreement may not be modified or amended except by a written instrument specifically referring to this Agreement signed by the parties hereto. 

10.7 Waiver. No waiver by one Party of the other Party’s obligations, or of any breach or default hereunder by any other
Party, shall be valid or effective, unless such waiver is set forth in writing and is signed by the party giving such waiver; and no such waiver shall be deemed a waiver of any subsequent breach or default of the same or similar nature or any other
breach or default by such other Party. 
 10.8 Interpretation; Headings. This Agreement is the result of arms-length
negotiations between the Parties hereto and no provision hereof, because of any ambiguity found to be contained therein or otherwise, shall be construed against a Party by reason of the fact that such Party or its legal counsel was the draftsman of
that provision. The section, subsection and any paragraph headings contained herein are for the purpose of convenience only and are not intended to define or limit or affect, and shall not be considered in connection with, the interpretation of any
of the terms or provisions of this Agreement. The plural will be deemed to include the singular, and the singular will be deemed to include the plural. The words “include,” “includes,” or “including” mean including, by
way of example and not by way of limitation. Words such as “herein,” “hereinafter,” “hereof,” and “hereunder” refer to this Agreement as a whole and not merely to a section or paragraph in which such words
appear, unless the context otherwise requires. The words “shall” and “will” are deemed to be synonyms. 
 10.9 Counterparts. This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
  

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 10.10 Notices. Unless otherwise provided herein, any notice, report, payment, or
document to be given by one Party to the other will be in writing and will be deemed given when actually received or when delivered personally, mailed by certified or registered mail, postage prepaid (such mailed notice to be effective on the date
that is five (5) Business Days after the date of mailing), sent by reputable overnight courier (such notice sent by courier to be effective one (1) Business Day after it is deposited with such courier), or by electronic facsimile (such
notice sent by facsimile to be effective on the first Business Day after transmission, provided that the successful transmission of the facsimile has been confirmed) to the address below, or to such other place as any Party may designate as to
itself by written notice to the other Party. 
 If to Seller: 
 Advanced Cosmetic Intervention, Inc. 
 6025 Highland Hills Court 
 Ft. Collins, Colorado 80528 
 Facsimile:
(970) 377-9812 
 Attention: David Stevens 
 with a copy to: 
 Heller Ehrman LLP 
 Times Square Tower 
 7 Times Square

 New York, NY 10036 
 Attn:
Stephen Davis 
 Fax: (212) 763-7600 
 If to Buyer: 
 BioForm Medical, Inc. 
 1875 South Grant St., Suite #110 
 San Mateo,
CA 94402 
 Attn: Chief Executive Officer 
 Fax: (650) 286-4090 
 with a copy to: 
 Ropes & Gray LLP 
 525 University Avenue, Suite 300 
 Palo Alto, CA 94301-1917 
 Attn: David J. Saul

 Fax: (650) 566-4232 
 10.11 Dispute Resolution. In the event that any dispute or controversy arises between the Parties out of or relating to this Agreement or any Ancillary Agreement (a “Dispute”), a Party shall
notify the other Party in writing of the existence of the Dispute, and the Parties shall meet and negotiate in good faith to attempt to resolve the matter. If such efforts do not within thirty (30) days resolve the Dispute, the Dispute shall be
resolved by binding arbitration as 

  

 -35- 

 
provided in this Section 10.11. Buyer and Seller shall each appoint an arbitrator of choice from a list of arbitrators recognized by the American
Arbitration Association. The appointed arbitrators shall appoint a third arbitrator from the list, and the three arbitrators shall hear the Parties and settle the Dispute. The proceedings shall be conducted under and governed by the Commercial Rules
of the American Arbitration Association, as in effect from time to time. All arbitration hearings shall be conducted in the jurisdiction selected by the Party not bringing the action, which jurisdiction shall either be the City and County of San
Francisco, California or the City and County of Denver, Colorado. All applicable statutes of limitation shall apply to any Dispute. The arbitrators shall have no power to award punitive or exemplary damages or to ignore or vary the terms of this
Agreement, and shall be bound to apply controlling law. The arbitrators may award costs and expenses incurred in connection with a Dispute (including reasonable attorney’s fees) to a Party, if it is determined by the arbitrator that the other
Party acted in bad faith. A judgment upon the award may be entered in any court having jurisdiction. 
 10.12 GAAP. All
questions of accounting under this Agreement shall be resolved under generally accepted accounting principles as recognized by the American Institute of Certified Public Accountants, as in effect from time to time, consistently applied and
maintained on a consistent basis for the applicable Person (or Persons on a consolidated basis, as the case may be) throughout the period indicated and consistent with such Person’s prior financial practices. 
 10.13 JNJ Agreement. Buyer hereby agrees that it will not amend the JNJ APA, or waive any provisions thereof, without Seller’s
prior written consent. 
 [Remainder of Page Intentionally Left Blank] 
  

 -36- 

 IN WITNESS WHEREOF, each of Buyer and Seller has caused a duly authorized representative to execute this
Asset Purchase Agreement on the date first written above. 
  

			
	BIOFORM MEDICAL, INC.
		
	By:	 	/s/ Steven L. Basta
	Name:	 	Steven L. Basta
	Title:	 	Chief Executive Officer

  

			
	ADVANCED COSMETIC INTERVENTION, INC. 
		
	By:	 	/s/ Paul Maroon
	Name:	 	Paul Maroon
	Title:	 	Chief Executive Officer

 [Signature Page to Asset Purchase Agreement] 
  

 To induce Buyer to enter into this Agreement, and in consideration thereof, each of the undersigned, on
behalf of himself as an individual, hereby agrees to comply with the non-competition covenants set forth in Section 8.11. Each individual below agrees that as of the Closing Date and for a period of five (5) years thereafter, each
individual will not, either by himself or with, through or for the benefit of any Affiliate, licensee, or Third Party, make, use, sell, offer to sell, import, export, or otherwise develop or commercialize any nerve ablation devices; provided,
however, that if Buyer enters into a license agreement with AHI as contemplated in the letter of intent dated as of the date of this Agreement sent by Buyer to AHI, then Seller and each of the Key Executives may engage in such activities, but
only through or for the benefit of AHI, or its wholly-owned subsidiaries or licensees and solely in the AHI Field. The undersigned acknowledge that the restrictions contained above and in Section 8.11 are reasonable, valid, and necessary for
the adequate protection of Buyer’s business and that Buyer would not have entered into this Agreement without the protection afforded it by these covenants. 
  

			
		
	By:	 	/s/ James Newman
	Name:	 	James Newman
	Date:	 	April 29, 2008

  

			
		
	By:	 	/s/ Jim Jones
	Name:	 	Jim Jones
	Date:	 	April 29, 2008

  

			
		
	By:	 	/s/ Paul Maroon
	Name:	 	Paul Maroon
	Date:	 	April 29, 2008

  

			
		
	By:	 	/s/ David Stevens
	Name:	 	David Stevens
	Date:	 	April 29, 2008

 [Signature Page to Asset Purchase Agreement] 

 To induce Buyer to enter into this Agreement, and in consideration thereof, the undersigned, on behalf of
himself as an individual, hereby agrees to comply with the non-competition covenants set forth on the previous page and in Section 8.11. The undersigned acknowledges that the restrictions contained in Section 8.11 and on the previous page
are reasonable, valid, and necessary for the adequate protection of Buyer’s business and that Buyer would not have entered into this Agreement without the protection afforded it by these covenants. 
 Notwithstanding the foregoing, the undersigned may request of Buyer special permission to consult for a Third Party entity engaged in the development
and/or commercialization of nerve ablation for applications for OB, prostate surgery and related areas (to be specified at the time of such request). Buyer will consider any such request in good faith, and will deny such request only if, in
Buyer’s reasonable judgment, such activity would be competitive with Buyer’s business interests. As a condition to granting any such permission, however, Buyer will require that such Third Party agrees in writing, using the form attached
as Exhibit G, prior to the initiation of any such consulting activity, that any technology or consulting activity in which the undersigned is in any way involved will be used only for those applications. Buyer’s special permission for
consulting activities for such applications will be granted to the undersigned on a case-by-case basis only after receipt by Buyer of such signed agreement from such Third Party entity. 
 In the event that Buyer grants the special permission described above, all products resulting from the undersigned’s consulting activities (each, an
“Other Product”) will provide for a mutual incompatibility with BioForm products so that: (a) the Other Product’s software is incompatible with BioForm products; (b) there is mechanical differentiation so that the Other
Product is physically incompatible with BioForm products; (c) there is a built-in electrical incompatibility so that it is impossible to utilize disposables from a BioForm product on the Other Product or a disposable from the Other Product on a
BioForm product; (d) the RF energy profile of the Other Product will produce therapeutically differentiated RF deliveries than BioForm products; (e) all disposable-based Other Products will utilize a differentiated connector further
preventing plug in or use of the Other Product with a BioForm product; and (f) the load curve of the Other Product will be different to ensure physiological and further incompatibility with BioForm products. 
 In addition, notwithstanding the foregoing, the undersigned will be free to develop products solely for cardiology applications (including interventional
cardiology including treatment of CTOs, electrophysiology and cardiothoracic surgery); provided that (a) all such products will provide for a mutual incompatibility with BioForm products by complying with the requirements in sections
(a) through (f) of the immediately preceding paragraph (for the purposes of such paragraph, each such cardiology product will be deemed an “Other Product”); and (b) all such products will (i) involve intravascular based
systems, (ii) utilize catheters introduced through blood vessels into the heart, and (iii) utilize newly developed RF generators and new software and hardware designed specifically for cardiology applications. 
  

			
		
	By:	 	/s/ Michael Janssen
	Name:	 	Michael Janssen
	Date:	 	April 29, 2008

 [Signature Page to Asset Purchase Agreement] 

  
  
 

 
 EXHIBIT A 
 ESCROW AGREEMENT 
 among 
 BIOFORM MEDICAL, INC. 
 ADVANCED COSMETIC INTERVENTION, INC. 
 as Seller 
 and 
 THE BANK OF NEW YORK 
 Dated as of
April 29, 2008 
 ACCOUNT NUMBER(S): 
 SHORT TITLE OF ACCOUNT: 
  
  
  

 ESCROW AGREEMENT made this 29th day of April, 2008, by and among THE BANK OF NEW YORK (“Escrow Agent”), ADVANCED COSMETIC INTERVENTION, INC., (the “Seller”), and BIOFORM
MEDICAL, INC. (the “Buyer”, and for ease of reference collectively with the Seller, the “Depositors”). Reference is made to that certain Asset Purchase Agreement (the “ACI APA”) of even date herewith between the Buyer
and the Seller and to that certain Asset Purchase Agreement (the “JNJ APA”) of even date herewith between the Buyer and JNJ Technology Holdings, LLC (“JNJ”). 
 The parties hereby agree that, in consideration of the mutual promises and covenants contained herein, Escrow Agent shall hold in escrow and shall
distribute Escrow Property (as defined herein) in accordance with and subject to the following Instructions and Terms and Conditions: 
 I.
INSTRUCTIONS: 
  

	1.	Escrow Property 

 The property and/or funds
deposited or to be deposited with Escrow Agent by the Buyer shall be as follows: [*] (the “Escrow Amount”). 
 The foregoing
property and/or funds, plus all interest, dividends and other distributions and payments thereon (collectively the “Distributions”) received by Escrow Agent, less any property and/or funds distributed or paid in accordance with this Escrow
Agreement, are collectively referred to herein as the “Escrow Property”. 
  

	2.	Investment of Escrow Property 

 The Escrow
Agent shall invest or reinvest the Escrow Property without distinction between principal and income, in The Bank of New York’s Deposit Reserve (the “BNYDR”) unless otherwise directed by written instrument signed by the Depositors.

 The Escrow Agent shall have no liability for any loss arising from or related to any such investment other than in accordance with
Section 3 of the Terms and Conditions. 
  

	3.	Distribution of Escrow Property 

 The Escrow Agent
is directed to hold and distribute the Escrow Property as set forth in this Section 3. 
  

	 	(a)	Other than as provided in clauses (b) and (c) below, the Escrow Agent shall distribute the Escrow Property only in accordance with (i) a written instrument delivered
to the Escrow Agent that is executed by the Seller and the Buyer and that instructs the Escrow Agent as to the disbursement of some or all of the Escrow Property, or (ii) a final non-appealable order of a court of competent jurisdiction, a copy
of which is delivered to the Escrow Agent by either the Seller or the Buyer and to the other party hereto, that instructs the Escrow Agent as to the disbursement of some or all of the Escrow Property. 

  

	[*]	Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

 -2- 

	 	(b)	In the event that the Buyer delivers a written certification to the Escrow Agent and the Seller asserting that the Buyer is entitled to receive all or any portion of the Escrow
Amount in respect of (i) any Losses (as defined in the ACI APA) for which any Buyer Indemnitee (as defined in the ACI APA) is entitled to indemnification by the Seller under Section 9 of the ACI APA or (ii) any Losses (as defined in
the JNJ APA) for which any Buyer Indemnitee (as defined in the JNJ APA) is entitled to indemnification by JNJ under Section 8 of the JNJ APA; which such certification shall include a description of the amount and nature of such Losses
(including reasonable detail of the facts giving rise to each claim, if known, and the provision of the ACI APA or JNJ APA under which the claim arises) and the Seller does not, in a written notice delivered to the Buyer and the Escrow Agent within
thirty (30) days after the delivery of the Buyer’s notice, dispute such assertion, then the Escrow Agent shall automatically distribute to the Buyer an amount equal to the portion of the Escrow Amount that the Buyer asserted it is entitled
to receive in such notice. 

  

	 	(c)	On April 29, 2010, the Escrow Agent shall automatically distribute to the Seller an amount equal to the then remaining Escrow Property less the Outstanding Claims Amount
as of April 28, 2010, if any. 

  

	 	(d)	If at least [*] of the Disinterested Shareholders of Seller have approved in writing the ACI APA and the JNJ APA, then the Buyer and the Seller agree to execute and deliver to the
Escrow Agent a written instrument in accordance with Section I.3(a)(i) instructing the Escrow Agent to distribute immediately to the Seller the lesser of (i) [*] or (ii) the remaining Escrow Amount less the Outstanding Claims Amount
as of such date. For purposes of this Escrow Agreement, “Disinterested Shareholders” means those shareholders of Seller who are not current board members of ACI, members of JNJ or family members thereof. The Escrow Agent will not take any
action with respect to this Section I.3(d) unless and until it receives such written instrument. 

  

	 	(e)	With respect to written certifications delivered by the Buyer to the Escrow Agent pursuant to Section I.3(b) on or after April 29, 2009, if the Buyer and the Seller have not
delivered notice to the Escrow Agent to make a distribution to the Seller in accordance with Section I.3(d) prior to the date of the certification, then the certification will be subject to the following: (i) with respect to Losses for which
any Buyer Indemnitee may be entitled to indemnification by Seller under Section 9.1(d) of the ACI APA based on claims by Seller’s stockholders or employees, Buyer may request distribution of the entire Escrow Amount then remaining; and
(ii) with respect to all other Losses, Buyer may request distribution of an amount not more than (A) the then remaining Escrow Amount less (B) [*]. 

  

	 	(f)	“Outstanding Claims Amount” means, as of a particular date, the sum of all pending and unpaid claims for indemnification made by Buyer pursuant to Section 9 of the
ACI APA or Section 8 of the JNJ APA, as certified to the Escrow Agent and the Seller in a written instrument executed by the Buyer, which instrument shall include a description (including reasonable detail of the facts giving rise to each
claim, if known, and the provision of the ACI APA or JNJ APA under which the claim arises) of the amount and nature of such claims; provided, however, that it is hereby agreed and acknowledged that any such claims for indemnification may only be
made by Buyer against any remaining Escrow Amount, and not against any Distributions. 

  

	[*]	Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

 -3- 

	 	(g)	Whenever the Escrow Agent will be required to make a payment from the Escrow Account, the Escrow Agent will pay such amounts by liquidating such investments of the Escrow Property
as will be directed in writing by the Depositors; provided, however, that if the Depositors have not furnished such direction to the Escrow Agent upon delivery of the certificate or other documentation delivered pursuant to this Section 3, the
Escrow Agent will pay such amounts by liquidating such investments of the Escrow Property as will be determined by the Escrow Agent in its sole discretion. 

  

	 	(h)	Amounts distributed pursuant to this Section 3 shall be paid to the applicable party in accordance with wire instructions furnished by such party to the Escrow Agent.

  

	4.	Addresses 

 Notices, instructions and other
communications shall be sent to Escrow Agent, Corporate Trust Administration, 101 Barclay Street, 8W, New York NY 10286 Attn.: Odell Romeo, facsimile – 212-815-5875/5877 and to the Depositors as follows: 
  

			
	 To the Seller at:
  
 Advanced Cosmetic Intervention, Inc.
 6025 Highland Hills Court
 Ft. Collins, Colorado 80528
 Facsimile: (970) 377-9812
 Attention: David Stevens
  
 with a copy (which shall not constitute notice) to:
  
 Heller Ehrman LLP
 Times Square Tower, 7 Times Square
 New York, NY 10036
 Facsimile: (212) 763-7600
 Attention: Stephen Davis
	  	 To the Buyer at:
  
 BioForm Medical, Inc.
 1875 South Grant St., Suite #110
 San Mateo, CA 94402
 Facsimile: (650) 286-4090
 Attention: Chief Executive Officer
  
 with a copy (which
shall not constitute notice) to:
  
 Ropes & Gray LLP
 525 University Avenue, Suite 300
 Palo Alto, CA 94301
 Facsimile: (650) 566-4232
 Attention: David J. Saul

  

 -4- 

 Notices or other communications hereunder shall be in writing and shall be delivered by hand or sent by
facsimile, or sent, postage prepaid, by registered, certified or express mail, or overnight courier service, or electronic transmission, i.e. “pdf” (except in the case of notices or communications to ACI, which shall not be delivered by
electronic transmission), and shall be deemed given when so delivered by hand, or the next business day if sent by facsimile (transmission confirmed), or if mailed, five business days after mailing (one business day in the case of express mail or
overnight courier service) to the addresses set forth above. 
  

	5.	Distribution of Escrow Property Upon Termination 

 This Escrow Agreement shall be terminated automatically either (a) on the date on which all Escrow Property has been distributed, or (b) on the later of (i) April 29, 2010 and (ii) the date on which there is no
Outstanding Claims Amount. The Escrow Agreement may also be terminated at any time by a written agreement executed by each of the Depositors. Upon termination of this Escrow Agreement, the Escrow Property then held hereunder, if any, shall be
distributed to the Seller. 
  

	6.	Compensation 

  

	 	(a)	Unless waived, the Buyer shall pay the Escrow Agent an annual fee of $3,500, payable upon execution of this Escrow Agreement and thereafter on each anniversary date of this Escrow
Agreement, provided that the annual fee shall be waived so long as the Escrow Property is invested in the BNYDR. The annual fee shall not be pro-rated for any portion of a year, but shall be subject to pro-ration to the extent the Escrow Property is
only invested in the BNYDR for a portion of a given year. 

  

	 	(b)	The Buyer shall pay all activity charges as per Escrow Agent’s current fee schedule, which is attached as Exhibit 6(b). 

  

	 	(c)	Except for amounts to be shared between the Buyer and the Seller as otherwise provided herein, the Buyer shall be responsible for and shall reimburse the Escrow Agent upon demand
for all reasonable and documented out-of-pocket expenses which may include, but are not limited to, telephone; facsimile; courier; copying; postage; supplies; and expenses of foreign depositaries. 

 II. TERMS AND CONDITIONS: 
  

	1.	The duties, responsibilities and obligations of the Escrow Agent shall be limited to those expressly set forth herein and no duties, responsibilities or obligations shall be
inferred or implied. The Escrow Agent shall not be subject to, nor required to comply with, any other agreement between the Depositors or to which any Depositor is a party, even though reference thereto may be made herein, or to comply with any
direction or instruction (other than those contained herein or delivered in accordance with this Escrow Agreement) from any Depositor or any entity acting on its behalf. The Escrow Agent shall not be required to, and shall not, expend or risk any of
its own funds or otherwise incur any financial liability in the performance of any of its duties hereunder. 

  

	2.	This Escrow Agreement is for the exclusive benefit of the parties hereto and their respective successors and permitted assigns hereunder, and shall not be deemed to give, either
express or implied, any legal or equitable right, remedy, or claim to any other entity or person whatsoever. 

  

 -5- 

	3.	(a) The Escrow Agent shall not be liable for any action lawfully taken or omitted or for any loss or injury resulting from its actions or its performance or lack of performance of
its duties hereunder in the absence of bad faith, gross negligence or willful misconduct on its part. In no event shall the Escrow Agent be liable (i) for acting in accordance with or relying upon any written instruction, notice, demand,
certificate or document from the Depositors (ii) for any consequential, punitive or special damages, (iii) for the acts or omissions of its nominees, correspondents, designees, subagents or subcustodians, or (iv) for an amount in
excess of the value of the Escrow Property. 

 (b) The Escrow Agent may consult legal counsel of its own choosing in the event
of any dispute or question as to the construction of this Escrow Agreement, or the Escrow Agent’s duties hereunder, and the Escrow Agent will incur no liability and will be fully protected with respect to any action taken or omitted in good
faith in accordance with the opinion and instructions of such counsel. Notwithstanding anything to the contrary herein, in no event shall the Escrow Agent be entitled to reimbursement of the expenses of such counsel with respect to any matter
arising from the Escrow Agent’s bad faith, gross negligence or willful misconduct. 
 (c) The Escrow Agent shall not incur any liability
for not performing any act or fulfilling any duty, obligation or responsibility hereunder by reason of any occurrence beyond the control of the Escrow Agent (including but not limited to any act or provision of any present or future law or
regulation or governmental authority, any act of God or war, or the unavailability of the Federal Reserve Bank wire or telex or other wire or communication facility). 
 (d) If at any time the Escrow Agent is served with any judicial or administrative order, judgment, decree, writ or other form of judicial or administrative process which in any way affects the Escrow Property
(including but not limited to orders of attachment or garnishment or other forms of levies or injunctions or stays relating to the transfer of Escrow Property), the Escrow Agent is authorized to comply therewith in any manner as it or its legal
counsel of its own choosing deems appropriate; and if the Escrow Agent complies with any such judicial or administrative order, judgment, decree, writ or other form of judicial or administrative process, the Escrow Agent shall not be liable to any
of the parties hereto or to any other person or entity even though such order, judgment, decree, writ or process may be subsequently modified or vacated or otherwise determined to have been without legal force or effect. 
  

	4.	Unless otherwise specifically set forth herein, the Escrow Agent shall proceed as soon as practicable to collect any checks or other collection items at any time deposited
hereunder. All such collections shall be subject to the Escrow Agent’s usual collection practices or terms regarding items received by the Escrow Agent for deposit or collection. The Escrow Agent shall not be required, or have any duty, to
notify anyone of any payment or maturity under the terms of any instrument deposited hereunder, nor to take any legal action to enforce payment of any check, note or security deposited hereunder or to exercise any right or privilege which may be
afforded to the holder of any such security. 

  

 -6- 

	5.	The Escrow Agent shall provide to Depositors monthly statements identifying transactions, transfers or holdings of the Escrow Property and each such statement shall be deemed to be
correct and final upon receipt thereof by the Depositors unless the Escrow Agent is notified in writing to the contrary within thirty (30) business days of the date of such statement. 

  

	6.	The Escrow Agent shall not be responsible in any respect for the form, execution, validity, value or genuineness of documents or securities deposited hereunder, or for any
description therein, or for the identity, authority or rights of persons executing or delivering or purporting to execute or deliver any such document, security or endorsement. 

  

	7.	Notices, instructions or other communications shall be in writing and shall be given to the address set forth in the “Addresses” provision herein (or to such other address
as may be substituted therefor by written notification to the Escrow Agent or the Depositors). Notices to the Escrow Agent shall be deemed to be given when actually received by Escrow Agent. The Escrow Agent is authorized to comply with and rely
upon any notices, instructions or other communications believed by it to have been sent or given by the Depositors or by a person or persons authorized by the Depositors. Whenever under the terms hereof the time for giving a notice or performing an
act falls upon a Saturday, Sunday, or banking holiday, such time shall be extended to the next day on which the Escrow Agent is open for business. 

  

	8.	The Seller and the Buyer shall jointly and severally be liable for and shall reimburse and indemnify the Escrow Agent and hold the Escrow Agent harmless from and against any and all
claims, losses, liabilities, costs, damages or expenses (including reasonable attorneys’ fees and expenses) (collectively, “Losses”) that may be incurred by it as a result of its involvement in any arbitration or litigation arising
from the performance of its duties hereunder, provided, however, that nothing contained herein shall require the Escrow Agent to be indemnified for Losses caused by its bad faith, gross negligence or willful misconduct. The Seller and the Buyer
agree that irrespective of any joint and several liability that either may have to the Escrow Agent under this Escrow Agreement, as between them, the Buyer shall be liable for one hundred percent (100%) of any Losses incurred by the Escrow
Agent which result in reimbursement or indemnification under this Section II.8. However, if the arbitration or litigation involves a dispute between the Buyer and Seller and if the Buyer is the prevailing party in any such arbitration or litigation,
then Seller shall be liable for one hundred percent (100%) of any Losses incurred by the Escrow Agent which result in reimbursement or indemnification under this Section II.8. 

  

	9.	(a) Depositors may remove the Escrow Agent at any time by giving to the Escrow Agent thirty (30) calendar days’ prior notice in writing signed by all Depositors. The
Escrow Agent may resign at any time by giving to the Depositors thirty (30) calendar days’ prior written notice thereof. Within ten (10) calendar days after giving the foregoing notice of removal to the Escrow Agent or receiving the
foregoing notice of resignation from Escrow Agent, the Depositors shall jointly agree on and appoint a successor escrow agent. If a successor to the escrow agent has not accepted such appointment by the end of such ten-day period, the Escrow Agent
may apply to a court of competent jurisdiction for the appointment of a successor to the Escrow Agent or for other appropriate relief. One-half of the costs and expenses (including reasonable attorneys’ fees and expenses) incurred by the Escrow
Agent in connection with such proceeding shall be paid by each of the Seller and the Buyer. 

  

 -7- 

 (b) Upon receipt of the identity of the successor escrow agent, the Escrow Agent shall either deliver the
Escrow Property then held hereunder to the successor escrow agent, less the Escrow Agent’s fees, costs and expenses or other obligations owed to the Escrow Agent, or hold such Escrow Property (or any portion thereof), pending distribution,
until all such fees, costs and expenses or other obligations are paid. 
 (c) Upon delivery of the Escrow Property to the successor escrow
agent, the Escrow Agent shall have no further duties, responsibilities or obligations hereunder. 
  

	10.	(a) In the event of any ambiguity or uncertainty hereunder or in any notice, instruction or other communication received by the Escrow Agent hereunder, the Escrow Agent may, in its
sole discretion, refrain from taking any action other than retain possession of the Escrow Property, unless the Escrow Agent receives written instructions, signed by both Depositors, which eliminates such ambiguity or uncertainty.

 (b) In the event of any dispute between or conflicting claims by or among the Depositors with respect to any Escrow Property,
the Escrow Agent shall be entitled, in its sole discretion, to refuse to comply with any and all claims, demands or instructions with respect to such Escrow Property so long as such dispute or conflict shall continue, and the Escrow Agent shall not
be or become liable in any way to the Depositors for failure or refusal to comply with such conflicting claims, demands or instructions. The Escrow Agent shall be entitled to refuse to act until, in its sole discretion, either (i) such
conflicting or adverse claims or demands have been determined by a final order, judgment or decree of a court of competent jurisdiction, which order, judgment or decree is not subject to appeal, or settled by agreement between the conflicting
parties as evidenced in a writing satisfactory to the Escrow Agent or (ii) the Escrow Agent has received security or an indemnity satisfactory to it sufficient to hold it harmless from and against any and all Losses which it may incur by reason
of so acting. The Escrow Agent may, in addition, elect, in its sole discretion, to commence an interpleader action or seek other judicial relief or orders as it may deem, in its sole discretion, necessary. The costs and expenses (including
reasonable attorneys’ fees and expenses) incurred in connection with such proceeding shall be paid by, and shall be deemed a joint and several obligation of, the Depositors. 
  

	11.	This Agreement shall be interpreted, construed, enforced and administered in accordance with the internal substantive laws (and not the choice of law rules) of the State of New
York. Each party hereto hereby submits to the personal jurisdiction of and each agrees that all proceedings relating hereto shall be brought in courts located within the City and State of New York. Each party hereto hereby waives the right to trial
by jury and to assert counterclaims in any such proceedings. To the extent that in any jurisdiction any party hereto may be entitled to claim, for itself or its assets, immunity from suit, execution, attachment (whether before or after judgment) or
other legal process, each hereby irrevocably agrees not to claim, and hereby waives, such immunity. Each party hereto waives personal service of process and consents to service of process by certified or registered mail, return receipt requested,
directed to it at the address last specified for notices hereunder, and such service shall be deemed completed ten (10) calendar days after the same is so mailed. 

  

 -8- 

	12.	Except as otherwise permitted herein, this Escrow Agreement may be modified only by a written amendment signed by all the parties hereto, and no waiver of any provision hereof shall
be effective unless expressed in a writing signed by the party to be charged. 

  

	13.	The rights and remedies conferred upon the parties hereto shall be cumulative, and the exercise or waiver of any such right or remedy shall not preclude or inhibit the exercise of
any additional rights or remedies. The waiver of any right or remedy hereunder shall not preclude the subsequent exercise of such right or remedy. 

  

	14.	Each Depositor and the Escrow Agent hereby represents and warrants (a) that this Escrow Agreement has been duly authorized, executed and delivered on its behalf and constitutes
its legal, valid and binding obligation and (b) that the execution, delivery and performance of this Escrow Agreement by such party does not and will not violate any applicable law or regulation. 

  

	15.	The invalidity, illegality or unenforceability of any provision of this Agreement shall in no way affect the validity, legality or enforceability of any other provision; and if any
provision is held to be enforceable as a matter of law, the other provisions shall not be affected thereby and shall remain in full force and effect. 

  

	16.	This Agreement shall constitute the entire agreement of the parties with respect to the subject matter and supersedes all prior oral or written agreements in regard thereto.

  

	17.	This Agreement shall terminate as provided for herein. The provisions of these Terms and Conditions shall survive termination of this Escrow Agreement and/or the resignation or
removal of the Escrow Agent. 

  

	18.	No printed or other material in any language, including prospectuses, notices, reports, and promotional material which mentions “The Bank of New York” by name or the
rights, powers, or duties of the Escrow Agent under this Agreement shall be issued by any other parties hereto, or on such party’s behalf, without the prior written consent of Escrow Agent, except as required by applicable law; provided
however, the parties may mention “The Bank of New York” by name or the rights, powers or duties of the Escrow Agent under this Agreement in the ACI APA, JNJ APA, Seller shareholder consents, JNJ shareholder consents and Seller shareholder
appraisal rights notice. 

  

	19.	The headings contained in this Agreement are for convenience of reference only and shall have no effect on the interpretation or operation hereof. 

  

	20.	This Escrow Agreement may be executed by each of the parties hereto in any number of counterparts, each of which counterpart, when so executed and delivered, shall be deemed to be
an original and all such counterparts shall together constitute one and the same agreement. 

  

	21.	 This Escrow Agreement and the rights of the parties hereunder may not be assigned and shall be binding on and inure to the benefit of the parties hereto, the legal
representatives and successors of Buyer and the Escrow Agent, and the legal representatives and 

  

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successors of the Seller, provided that Seller may assign this Escrow Agreement and the rights of the parties hereunder to a liquidating trust established by
Seller or its shareholders, provided further that the Buyer may (i) assign its rights under this Escrow Agreement to any affiliate, (ii) make a collateral assignment of this Escrow Agreement and its rights hereunder and its interests
herein to its lenders which, under certain circumstances, would permit such lenders to enforce this Escrow Agreement on behalf of the Buyer, and (iii) assign this Escrow Agreement to any entity which acquires substantially all of the assets of
the Buyer, by merger consolidation, or otherwise, and agrees to be bound hereto as a successor to the Buyer. 

  

	22.	The Escrow Agent does not have any interest in the Escrow Property deposited hereunder but is serving as escrow holder only and having only possession thereof. The Buyer shall pay
or reimburse the Escrow Agent upon request for any transfer taxes or other taxes relating to the Escrow Property incurred in connection herewith and shall indemnify and hold harmless the Escrow Agent for any amounts that it is obligated to pay in
the way of such taxes. Any payments of income from this Escrow Account shall be subject to withholding regulations then in force with respect to United States taxes. The parties hereto will provide the Escrow Agent with appropriate W-9 forms for tax
I.D., number certifications, or W-8 forms for non-resident alien certifications. It is understood that the Escrow Agent shall be responsible for income reporting only with respect to income earned on investment of funds which are a part of the
Escrow Property and is not responsible for any other reporting. It is expressly agreed and understood that the Escrow Property shall be treated as a grantor trust of the Buyer for tax purposes, provided, however, that the Escrow Agent shall not
distribute any amounts from the Escrow Fund except as expressly provided in this Agreement. Accordingly, for tax purposes, the assets and all earnings on the assets shall be considered owned by the Buyer and shall be reported as such for all tax
reporting purposes. In particular, it is agreed that all interest or other income earned on the Escrow Property shall be treated as earned by the Buyer and shall be reported by the Escrow Agent to the Buyer as income of the Buyer. This Section and
Section 8 shall survive notwithstanding any termination of this Escrow Agreement or the resignation of the Escrow Agent. 

  

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 IN WITNESS WHEREOF, each of the parties has caused this Escrow Agreement to be executed by a duly
authorized officer as of the day and year first written above. 
  

			
	 BIOFORM MEDICAL, INC.

		
	By:	 	/s/ Steven L. Basta
		 	Name: Steven L. Basta 
		 	Title: Chief Executive Officer
	
	 ADVANCED COSMETIC INTERVENTION, INC.

		
	By:	 	/s/ Paul Maroon
		 	Name: Paul Maroon 
		 	Title: Chief Executive Officer 
	
	THE BANK OF NEW YORK, as Escrow Agent 
		
	By:	 	/s/ Odell Romeo
		 	Name: Odell D. Romeo
		 	Title: Assistant Vice President

 Escrow Agreement Signature Page 

 EXHIBIT B 
 ASSET PURCHASE AGREEMENT 
 THIS ASSET PURCHASE AGREEMENT (this “Agreement”) is made
as of April 29, 2008, by and between BioForm Medical, Inc., a Delaware corporation (“Buyer” or “BioForm”) and JNJ Technology Holdings, LLC, a Colorado limited liability company (“Seller” or
“JNJ”). JNJ and BioForm may be referred to herein individually as a “Party” and collectively as the “Parties”. Certain other capitalized terms used in this Agreement are defined in Section 1.

 WHEREAS, on even date herewith, Buyer and Advanced Cosmetic Intervention, Inc., a Colorado corporation (“ACI”) will enter
into the ACI APA (as defined below) whereby Buyer will purchase from ACI substantially all of the assets of ACI, including those assets related to the business of selling nerve ablation devices; 
 WHEREAS, Seller has entered into a license agreement with ACI under which Seller granted to ACI a license under certain Intellectual Property Rights
owned by Seller; 
 WHEREAS, Buyer desires to purchase from Seller, and Seller desires to sell to BioForm, substantially all of the assets of
Seller, including those intellectual property rights currently licensed to ACI; 
 WHEREAS, the individual principals of Seller are also
significant shareholders of ACI; 
 WHEREAS, Advanced Headache Intervention, Inc., a Colorado Corporation (“AHI”) is an entity that
was spun off from Seller to commercialize nerve ablation devices in the field of pain management; and 
 WHEREAS, Buyer and Seller intend
that Buyer will negotiate an agreement with AHI following the Closing with respect to selling nerve ablation devices in the field of pain management. 
 NOW THEREFORE, in consideration of the terms, covenants, and conditions hereinafter set forth, the Parties hereto agree as follows: 
 1. Definitions. For the purposes of this Agreement, unless the context otherwise requires, the following terms shall have the respective meanings set forth below and grammatical variations of such terms shall
have corresponding meanings:  
 1.1 “ACI” has the meaning given to it in the recitals. 
 1.2 “ACI APA” means that certain Asset Purchase Agreement, in the form set forth at Exhibit A, to be entered into
between Buyer and ACI on the Closing Date. 
 1.3 “ACI Product” or “ACI Products” means any and all
products of ACI that use or incorporate any of the Transferred Intellectual Property Rights or any ACI Transferred Intellectual Property Rights, including any documentation that accompanies such product when delivered to ACI’s customers such as
instructions, labeling and training materials. 

 1.4 “ACI Purchased Assets” means all assets identified as
“Purchased Assets” in the ACI APA. 
 1.5 “ACI Transferred Intellectual Property Rights” means all
assets identified as “Transferred Intellectual Property Rights” in the ACI APA. 
 1.6 “Affiliate”
means, with respect to any person, any person that, directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with, such person. For the purposes of this definition, “control” means
the direct or indirect ownership of more than fifty percent (50%) of the outstanding shares or other voting rights entitled to vote for the election of directors (or in the case of an entity that is not a corporation, for the election of the
corresponding management authority). Seller shall not be deemed for any purposes of this Agreement to be an Affiliate of Buyer. Neither ACI nor AHI shall be deemed for any purpose of this Agreement to be an Affiliate of Seller. 
 1.7 “AHI” has the meaning given to it in the recitals. 
 1.8 “Ancillary Agreements” means the Bill of Sale, the Intellectual Property Assignments, and all other ancillary
agreements to this Agreement. 
 1.9 “Basket Amount” means $75,000. 
 1.10 “Books and Records” means all papers and records (in paper or electronic format) including, without limitation, all
correspondence and files related to the Intellectual Property Rights, including files maintained by intellectual property lawyers or agents, and copies of nondisclosure agreements signed by employees and other Third Parties. 
 1.11 “Business” means the development, manufacture and sale of ACI Products, either directly to customers or through
distributors, licensees or other agents, as currently conducted by ACI. 
 1.12 “Business Day” (whether such
phrase is capitalized or not) means any day, other than Saturday, Sunday, or a legal holiday in California, that banks located in San Francisco, California are open for business. 
 1.13 “Contract” or “Contracts” means any mortgage, indenture, lease, contract, covenant, arrangement,
agreement, instrument, commitment, purchase order or license. 
 1.14 “Encumbrance” or
“Encumbrances” means any encumbrance, lien, charge, hypothecation, pledge, mortgage, adverse claim, option, preemptive right, or other security interest of any nature, or any contract to create any of the foregoing. 
 1.15 “Escrow Agent” means The Bank of New York. 
  

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 1.16 “Escrow Agreement” means the escrow agreement by and among the
Buyer, ACI and the Escrow Agent in substantially the form of Exhibit B hereto. 
 1.17 “Existing JNJ-ACI
License” means the Technology License Agreement dated as of July 1, 2004 between Seller and ACI, which will be terminated as of the Closing Date as described herein. 
 1.18 “Filed Intellectual Property Rights” means all United States, international and foreign Intellectual Property Rights
that are the subject of an application, certificate, filing, registration or other document issued, filed with or recorded by any court, administrative agency or commission or other federal, state, county, local or foreign governmental authority,
instrumentality, agency or commission. 
 1.19 “GAAP” means United States generally accepted accounting
principles. 
 1.20 “Intellectual Property Rights” means all intangible proprietary rights of any kind or
nature throughout the world, including without limitation the following and all statutory and/or common law rights in, arising out of, or associated therewith: (i) all Patent Rights; (ii) all works of authorship, copyrights, mask works,
copyright and mask work registrations and applications, copyrightable subject matter whether or not registration for any such copyright exists or is pending, and all other copyright interests accruing by reason of international copyright conventions
pertaining thereto (“Copyrights”); (iii) all Know-How; (iv) all industrial designs and any registrations and applications therefor; (v) all trade names, logos, trademarks and service marks, trademark and service mark
registrations and applications, and all other interests accruing by reason of international trademark conventions and all goodwill associated therewith (“Trademarks”); (vi) all databases and data collections (including supplier
or customer lists and supplier or customer databases); (vii) all rights in Software; and (viii) rights to Uniform Resource Locators, Web site addresses and domain names. 
 1.21 “Know-How” means all information, data, materials, technologies, inventions, trade secrets, algorithms, concepts,
system designs, engineering models, ideas, software, discoveries, processes, standards, methods, compositions, formulae, procedures, protocol techniques, results of experimentation and testing, and other know-how, whether or not patentable or
copyrightable. 
 1.22 “Knowledge of Seller” or “Seller’s Knowledge” means the actual
knowledge of Mike Janssen, James Newman, and Jim Jones; provided, however, that such person shall have made reasonable inquiry of those employees and consultants of Seller who would reasonably be expected to have knowledge of the matter in
question; provided further, however, that if any such person shall not make such reasonable inquiry, then such person shall be deemed to have actual knowledge of those facts or matters that such person would reasonably be expected to have had
such person made such inquiry. 
 1.23 “Material Adverse Effect on Buyer” means a circumstance, state of
facts, event, consequence or result that materially and adversely affects, or could reasonably be expected to affect materially and adversely, the financial condition or operating results of Buyer, or the ability of Buyer to consummate the
transactions which it is required to consummate under this Agreement and the ACI APA. 
  

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 1.24 “Material Adverse Effect on Seller” means a circumstance, state of
facts, event, consequence or result that materially and adversely affects, or could reasonably be expected to affect materially and adversely, the Purchased Assets, Seller’s financial condition, or Seller’s operating results, or the
ability of Seller to consummate the transactions which it is required to consummate under this Agreement. 
 1.25 “Off
the Shelf Software” means commercially available software licensed to the Seller under generally available terms and conditions, other than software included in or necessary to operate any Product. 
 1.26 “Patent Rights” means all (i) issued patents; (ii) pending patent applications and rights to file
applications, including without limitation, all provisional applications, substitutions, continuations, continuations-in-part, divisions, re-examinations, national phase PCT applications, PCT international applications, and all foreign counterparts;
(iii) patents-of-addition, reissues, renewals, revivals, reexamination certificates, and extensions and restorations by existing or future extension or restoration mechanisms, including, without limitation, supplementary protection certificates
and the equivalent thereof; (iv) inventor’s certificates; and (v) forms of government-issued rights substantially similar to any of the foregoing throughout the world. 
 1.27 “Permitted Encumbrances” means (i) any lien for taxes that are not yet due or are being contested in good
faith, (ii) any carrier’s, warehouseman’s, mechanic’s, materialman’s, repairman’s, landlord’s, lessor’s or similar statutory lien incidental to the ordinary conduct of the Business, or (iii) any municipal
and zoning ordinance, recorded easement, covenant or restriction that does not prohibit or materially interfere with the present use, or materially affect the present value, of the Business or the Purchased Assets. 
 1.28 “Person” means any individual, partnership, firm, corporation, association, trust, unincorporated organization or
other entity, as well as any syndicate or group of any of the foregoing. 
 1.29 “Product” means any radio
frequency nerve ablation product that uses or incorporates any Transferred Intellectual Property Rights or ACI Transferred Intellectual Property Rights. 
 1.30 “Required Consent” means consent by all of the members of Seller to consummate this Agreement and the transactions contemplated herein. 
 1.31 “Software” means any and all computer software, in object code and source code, and all underlying Intellectual
Property Rights in connection therewith, owned or transferable by Seller. 
 1.32 “Tax” or
“Taxes” means any and all federal, state, local and foreign taxes, assessments and other governmental charges, duties, impositions and liabilities, including taxes based upon or measured by gross receipts, income, profits, sales,
use and occupation, and value added, ad valorem, transfer, franchise, withholding, payroll, recapture, employment, excise and 

  

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property taxes as well as public imposts, fees and social security charges (including but not limited to health, unemployment and pension insurance),
together with all interest, penalties and additions imposed with respect to such amounts and any obligation under any agreement or arrangement with any other Person with respect to such amounts and including any liability for taxes of a predecessor
entity. 
 1.33 “Third Part(y/ies)” means any Person(s) other than Buyer, Seller or their respective
Affiliates. 
 1.34 “Transferred Books and Records” means Books and Records of Seller related to the
Business; provided, however, that Transferred Books and Records shall not include Seller’s corporate minute book, general ledger, tax returns, Books and Records relating to Seller’s physical facilities, directors, officers,
shareholders, optionholders, financial and other accounting records necessary for the preparation of financial statements, tax returns or government-required filings, personnel records and other records that Seller is required by law to retain in
its possession (provided that to the extent consistent with law copies of such personnel records shall be provided to Buyer) and other Books and Records primarily related to Seller as a corporate entity. 
 1.35 “Transferred Contracts” means the Confidentiality, Non-Solicitation, and Invention Assignment Agreement between
Seller and each of Michael Janssen, James Jones, James Newman and Jeffrey Buske, as listed on Schedule 2.1. 
 1.36
“Transferred Intellectual Property Rights” means all Intellectual Property Rights owned or transferable by Seller, including without limitation the Transferred Patent Rights, all Intellectual Property Rights in and to the inventions
disclosed in the patent applications and draft applications listed or described on Schedule 2.1, and other Intellectual Property Rights listed or described on Schedule 2.1, but excluding the Excluded Assets. 
 1.37 “Transferred Patent Rights” means all Patent Rights owned or transferable by Seller, including without limitation
the patent applications and draft patent applications listed on Schedule 2.1, including without limitation any Patent Rights that claim priority to the applications identified on Schedule 2.1 and all patents issuing therefrom.

 2. Purchase and Sale of the Purchased Assets. 
 2.1 Purchased Assets. Subject to the terms and conditions of this Agreement, Buyer hereby agrees to purchase from Seller, and
Seller hereby agrees to sell, convey, transfer and assign to Buyer, on the Closing Date (as defined in Section 2.7), all of Seller’s right, title and interest in and to the following assets, including without limitation all those assets
described on Schedule 2.1 attached hereto, but excluding the Excluded Assets (collectively the “Purchased Assets”): 
 (a) The Transferred Intellectual Property Rights; 
 (b) All rights of Seller under the
Transferred Contracts existing as of or arising after Closing; 
  

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 (c) The Existing JNJ-ACI License (which is being transferred to Buyer by way of the
termination of such agreement pursuant to the Termination Agreement and the execution of this Agreement and of the ACI APA between ACI and Buyer); 
 (d) All tangible embodiments of the Transferred Intellectual Property Rights, including without limitation all documentation, software programs, test devices, prototypes, specifications, lab notebooks, and the like
related to the Transferred Intellectual Property Rights; 
 (e) Any rights under Contracts other than the Existing JNJ-ACI
License (including without limitation employment agreements, consulting agreements, and employee assignment of inventions agreements) to the extent necessary to enforce the Transferred Intellectual Property Rights; 
 (f) The Transferred Books and Records; and 
 (g) All rights to recover past, present and future damages for the breach, infringement or misappropriation, as the case may be, of any of the foregoing. 
 2.2 Excluded Assets. Seller shall retain all assets of Seller that are not Purchased Assets (collectively, the “Excluded
Assets”), which retained assets shall include, without limitation: 
 (a) All cash, cash equivalents and bank
accounts owned by Seller on the Closing Date; 
 (b) All Contracts other than the Transferred Contracts and the Existing
JNJ-ACI License; 
 (c) All rights of Seller under the Transferred Contracts existing as of or arising on or prior to the
Closing; 
 (d) All rights of Seller under the Existing JNJ-ACI License existing as of or arising on or prior to the Closing;

 (e) All of Seller’s insurance policies and rights of Seller thereunder; 
 (f) All rights of Seller under this Agreement and other agreements executed in conjunction herewith; and 
 (g) All rights to recover past, present and future damages for the breach, infringement or misappropriation, as the case may be, of any of
the foregoing. 
 2.3 Retained Liabilities. Other than the obligations of Seller under the Transferred Contracts that
arise after the Closing, Buyer shall not be obligated to assume or perform and is not assuming or performing any liabilities or obligations of Seller, whether known or unknown, fixed or contingent, certain or uncertain, and regardless of when such
liabilities or obligations may arise or may have arisen or when they are or were asserted, including without limitation all liabilities arising from any agreement or arrangement (whether written or oral) between or among Seller, ACI and/or AHI (the
“Retained Liabilities”), and Seller shall remain responsible for all Retained Liabilities. 
  

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 2.4 ACI APA. On even date herewith, Buyer and ACI will enter into the ACI APA,
which is attached as Exhibit A. Seller acknowledges that it has reviewed the ACI APA and expressly consents that all consideration payable by Buyer under this Agreement will be paid to ACI pursuant to the terms of the ACI APA, which payment
constitutes valuable consideration to Seller in compensation for the Purchased Assets sold to Buyer under this Agreement. 
 2.5 Transfer Documents. On the Closing Date, (i) the sale of all tangible assets included in the Purchased Assets by Seller to Buyer in accordance with this Agreement will be further evidenced by a Bill of Sale in substantially
the form of Exhibit C hereto (the “Bill of Sale”); and (ii) the assignment of the Transferred Intellectual Property Rights from Seller to Buyer in accordance with this Agreement will be further evidenced by
assignment documents relating to Patent Rights in the form attached as Exhibit D hereto (the “Intellectual Property Assignments”). 
 2.6 Consideration. The consideration for the sale to Buyer of the Purchased Assets under this Agreement and the sale to Buyer of
the ACI Purchased Assets under the ACI APA shall consist of (i) [*] (the “JNJ Cash Consideration”, which is payable pursuant to this Agreement) and the ACI Cash Consideration (as defined in and payable under the ACI APA)
(collectively, the “Cash Consideration”); (ii) the assumption by Buyer of the Assumed Liabilities as defined in the ACI APA; (iii) the Royalty Consideration (as defined in and payable under the ACI APA); and (iv) the
potential to earn a Success Milestone (as defined in and payable under the ACI APA, and together with the Cash Consideration and Royalty Consideration, the “Purchase Price”). For the avoidance of doubt, Buyer will not be required to
make any payments other than the JNJ Cash Consideration to Seller in consideration for the sale to Buyer of the Purchased Assets under this Agreement. 
 2.7 The Closing. The consummation of the transactions contemplated hereby (the “Closing”) shall take place simultaneously with the execution of this Agreement (the “Closing
Date”) at the offices of Ropes & Gray LLP, 525 University Avenue, Palo Alto, California, or at such other date and place as the Parties may agree and shall be deemed to occur at 1:00 p.m., local time, on such date. 
 (a) Closing Deliveries of Seller. At the Closing, Seller shall deliver, or cause to be delivered to Buyer, the documents and
instruments set forth in Section 5.5, in form and substance reasonably satisfactory to Buyer and its counsel. 
 (b)
Closing Deliveries of Buyer. At the Closing, Buyer shall deliver, or cause to be delivered: (i) [*], which amount is equal to the JNJ Cash Consideration plus [*] to cover Colorado sales tax, in cash payable by wire transfer to such
account as Seller may reasonably direct, or by such other method of payment as Seller and Buyer may mutually agree; and (ii) the documents and instruments set forth in Section 6.4, in form and substance reasonably satisfactory to Seller
and its counsel. 
  

	[*]	Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

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 2.8 Allocation of Purchase Price. The Purchase Price shall be allocated consistent
with the reasonable good faith determination of Buyer after consultation with Seller and ACI within sixty (60) days following the Closing. The Parties and ACI acknowledge that for financial reporting purposes, Buyer is required to determine and
allocate a purchase price for the acquisition of the Purchased Assets and the ACI Purchased Assets in accordance with GAAP in the United States, and that Buyer’s determinations under GAAP will differ from the requirements of Section 1060
of the Internal Revenue Code and the regulations promulgated thereunder. Buyer and Seller hereby agree that the amounts set forth in the Bill of Sale (Exhibit C) represent the fair market value of all tangible assets included in Purchased
Assets. These fair market values will be used in the allocation of the Purchase Price and in the determination of state or local taxes due as of the Closing. After the Closing, Buyer and Seller shall make consistent use of the allocation required
under Section 1060 of the Internal Revenue Code for all Tax purposes and in all filings, declarations and reports with the Internal Revenue Service or any other applicable taxing authority in respect thereof. In any and all actions, suits,
proceedings, arbitration, or governmental or regulatory investigations or audits related to the determination of any Tax, neither Buyer nor Seller shall contend or represent that such allocation is not a correct allocation. 
 2.9 Transfer Taxes. Buyer shall be responsible for the payment of, and shall pay when due, any sales, use, excise or similar
transfer taxes that may be payable in connection with the sale and purchase of the Purchased Assets. Seller acknowledges that Buyer shall purchase all inventory for resale. 
 3. Representations and Warranties of Seller. Seller hereby represents and warrants to Buyer, subject to the exceptions specifically disclosed in
the attached schedule of exceptions (the “Disclosure Schedule”), as follows: 
 3.1 Authority and Binding
Effect. Seller has the full company power and authority to execute and deliver this Agreement and the Ancillary Agreements. This Agreement and the Ancillary Agreements, and the consummation by Seller of its obligations contained herein and
therein, have been duly authorized by all necessary company actions of Seller, and this Agreement and the Ancillary Agreements have been duly executed and delivered by Seller. This Agreement and the Ancillary Agreements are valid and binding
agreements of Seller, enforceable against Seller in accordance with their respective terms. 
 3.2 Organization and
Standing. Seller is a limited liability company duly organized, validly existing and in good standing under the laws of the State of Colorado, and Seller is qualified to do business in the state of Colorado, which is the only jurisdiction where
such qualification is necessary and where the failure of Seller to be so qualified would have a Material Adverse Effect on Seller. Seller has the requisite company power and authority to own or lease the Purchased Assets and to perform all of its
obligations under the Existing JNJ-ACI License. Seller has delivered to Buyer or its counsel a true and correct copy of its organizational documents, each as amended to date and in full force and effect on the date hereof. 
 3.3 The Purchased Assets. Seller has, and on the Closing Date will convey and transfer to Buyer all its interest in the Purchased
Assets, including but not limited to good and valid title, free and clear of all Encumbrances of any nature whatsoever, except for Permitted Encumbrances and Encumbrances arising by the terms of the Existing ACI-JNJ License or the Transferred
Contracts. 
  

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 3.4 Contracts. Except as set forth on Schedule 2.2, the Existing JNJ-ACI
License and the Transferred Contracts are the only executory Contracts between Seller and any Person related to the Transferred Intellectual Property Rights. Except as would not have a Material Adverse Effect on Seller, the Existing JNJ-ACI License
and the Transferred Contracts are in full force and effect immediately prior to the Closing (after which time the Termination Agreement will take effect with respect to the Existing JNJ-ACI License) and Seller is not in breach, violation or default
thereunder nor is any Person obligated to Seller pursuant to the Existing JNJ-ACI License in breach, violation or default thereunder. Seller has not received notice that Seller has breached, violated or defaulted under, any of the terms or
conditions of the Existing JNJ-ACI License or the Transferred Contracts. Other than the Existing JNJ-ACI License or the Transferred Contracts, there is no agreement (not to compete or otherwise), commitment, judgment, injunction, order or decree to
which Seller is a party relating to the Purchased Assets or otherwise binding upon the Seller or the Purchased Assets which has or may have the effect of prohibiting or impairing the transactions contemplated by this Agreement, or affecting the
validity, use or enforceability of the Purchased Assets. Other than the Existing JNJ-ACI License, Seller has not entered into any agreement which places any restrictions upon Seller or ACI with respect to selling, licensing or otherwise distributing
any of the ACI Products, the Transferred Intellectual Property Rights, or the ACI Transferred Intellectual Property Rights to, or providing services to, customers or potential customers or any class of customers, in any geographic area, during any
period of time or in any segment of the market. 
 3.5 Intellectual Property 
 (a) Each item of Transferred Intellectual Property Rights is held by Seller free and clear of any Encumbrances (including without
limitation any distribution rights and royalty rights), other than Permitted Encumbrances and Encumbrances arising by the terms of the Existing JNJ-ACI License, the ACI APA, or the Transferred Contracts. All Transferred Intellectual Property Rights
will be fully transferable, alienable or licensable by Buyer without restriction and without payment of any kind to any Third Party. 
 (b) Schedule 2.1 accurately and completely identifies all Filed Intellectual Property Rights that are owned or transferable by Seller. All Filed Intellectual Property Rights included in the Transferred Intellectual Property Rights
are currently in compliance with formal legal requirements (including payment of filing, examination and maintenance fees and proofs of use), and are not subject to any unpaid maintenance fees or taxes or actions falling due within ninety
(90) days after the Closing Date. There are no proceedings or actions before any court, tribunal, administrative agency, or commission (including the United States Patent and Trademark Office or equivalent authority anywhere in the world)
related to any such Filed Intellectual Property Rights included in the Transferred Intellectual Property Rights. Seller has claimed small business status with respect to the Transferred Patent Rights. 
 (c) To the extent that any Transferred Intellectual Property Rights were originally owned or created by or for any Third Party, but
excluding any Off the Shelf Software, (i) the Seller has a written agreement with such Third Party or Third Parties with 

  

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respect thereto, pursuant to which the Seller has obtained complete, unencumbered and unrestricted ownership (except for Permitted Encumbrances and
Encumbrances arising by the terms of the Existing JNJ-ACI License or the Transferred Contracts) and is the exclusive owner of, all such Transferred Intellectual Property Rights by valid assignment or otherwise; (ii) the transfer of the
Transferred Intellectual Property Rights from Seller to Buyer hereunder does not violate such Third Party agreements; (iii) except as may be provided in the Existing JNJ-ACI License or the Transferred Contracts, such Third Parties have not
retained and do not have any rights or licenses with respect to the Transferred Intellectual Property Rights; and (iv) to the Knowledge of Seller, no valid basis exists for such Third Party to challenge or object to this Agreement. 

(d) Except pursuant to the Existing JNJ-ACI License or the Transferred Contracts, as will be transferred to Buyer pursuant to the terms
of this Agreement, Seller has not transferred ownership of, or granted any license of or right to use, or authorized the retention of any rights to use, to any Third Party, (i) any Transferred Intellectual Property Rights or (ii) any ACI
Transferred Intellectual Property Rights. 
 (e) No government funding, facilities of a university, college, other educational
institution or research center or funding from Third Parties was used by Seller in the development of the Transferred Intellectual Property Rights owned by Seller. To the Knowledge of Seller, no current or former employee, consultant or independent
contractor of Seller, who was involved in, or who contributed to, the creation or development of any Transferred Intellectual Property Rights has performed services for the government, a university, college, or other educational institution, or a
research center, during a period of time during which such employee, consultant or independent contractor was also performing services for Seller. 
 (f) Other than the Existing JNJ-ACI License, the Transferred Contracts, and the proprietary rights agreements described in Section 3.5(j) below, there are no Contracts, whether written or oral, express or
implied, to which Seller is a party with respect to any Transferred Intellectual Property Rights. 
 (g) To the Knowledge of
Seller, Seller has not received notice from any Person claiming that the Business, the Purchased Assets, or the ACI Purchased Assets infringe or misappropriate the Intellectual Property Rights of any Person (nor does Seller have Knowledge of any
valid basis therefor). To Seller’s Knowledge, no Person is infringing or misappropriating the Transferred Intellectual Property Rights. 
 (h) There are no contracts, licenses or agreements between Seller and any other Person with respect to the Transferred Intellectual Property Rights or with respect to the ACI Transferred Intellectual Property Rights,
under which there is any dispute or, to Seller’s Knowledge, any threatened dispute regarding the scope of such agreement or performance under such agreement. 
 (i) Seller has taken all commercially reasonable steps that are required to protect Seller’s rights in confidential information and
trade secrets of Seller associated with or related to the Transferred Intellectual Property Rights and the ACI Transferred Intellectual Property Rights. 
  

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 (j) All current and former employees or Third Parties who have created or modified any of
the Transferred Intellectual Property Rights that are material to the operation of the Business have executed a proprietary rights agreement substantially in the form(s) set forth in Section 3.5(j) of the Disclosure Schedule. 
 (k) Seller is not required to make or accrue any royalty payment to any Third Party in connection with any of the Purchased Assets.

 3.6 Conflicts; Consents. The execution and delivery by Seller of this Agreement and the Ancillary Agreements, and
the consummation of the transactions contemplated hereby and thereby, will not conflict with or result in any violation of, or default under, or give rise to a right of termination, cancellation, modification or acceleration of any obligation or
loss of any benefit under (any such event, a “Conflict”) (i) any provision of the organizational documents of Seller, each as amended to date; (ii) Contracts to which Seller or any of its properties or assets (including
intangible assets) is subject; or (iii) any judgment, order, decree, statute, law, ordinance, rule or regulation applicable to Seller or any of its properties or assets (tangible and intangible), except in any such case where it would not have
a Material Adverse Effect on Seller. Subject to the Required Consent, it is not necessary for Seller to take any action or to obtain any approval, consent or release by or from any Third Party, governmental or other, to enable Seller to enter into
or perform its obligations under this Agreement and the Ancillary Agreements. 
 3.7 Compliance with Law/Permits.
Except as may be required by any applicable bulk sales laws, the Seller is in compliance with all, and is not in violation of any, law, ordinance, order, decree, rule or regulation of any governmental agency or authority, the violation of or
noncompliance with which could have a Material Adverse Effect on Seller. No unresolved (i) charges of violations of laws or regulations relating to Seller’s business have been made or threatened; (ii) proceedings or investigations
relating to Seller’s business are pending or, to Seller’s Knowledge, have been threatened; and (iii) citations or notices of deficiency have been issued or have been threatened, against Seller relating to or arising out of its
business by any governmental authorities, which have had or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect on Seller; and, to Seller’s Knowledge, there are no facts or circumstances upon which
any such charges, proceedings, investigations, citations, or deficiency notices reasonably may validly be instituted, issued or brought hereafter. 
 3.8 Litigation and Proceedings. There is no claim, action, suit, proceeding or investigation (or any counter or cross-claim in an action brought by or on behalf of Seller), whether at law or in equity, or
before or by any governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, or before any arbitrator of any kind, that is pending or, to Seller’s Knowledge, threatened, against Seller, which
(i) could reasonably be expected to adversely affect Seller’s ability to perform its obligations under this Agreement or complete any of the transactions contemplated hereby; or (ii) involves the possibility of any judgment or
liability, or which may become a claim, against Buyer, its business or the Purchased Assets. Seller is not subject to any judgment, order, writ, injunction, decree or award of any court, arbitrator or governmental department, commission, board,
bureau, agency or instrumentality having jurisdiction over Seller or any of the Purchased Assets or ACI Purchased Assets or the Business that affects, involves or relates to the Purchased Assets or the ACI Purchased Assets. 
  

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 3.9 Tax Matters. To the extent failure to do so would adversely impact Buyer, the
Purchased Assets or the ACI Purchased Assets, Buyer’s use of the Purchased Assets or ACI Purchased Assets or operation of the Business, (a) as of the Closing Date, Seller will have paid all Taxes it is required to pay and will have
withheld with respect to its employees all federal, state and foreign income taxes and social security charges and similar fees under the Federal Insurance Contribution Act, Federal Unemployment Tax Act and other Taxes required to be withheld; and
(b) Seller has not been delinquent in the payment of any Tax, nor is there any Tax deficiency outstanding, assessed or proposed against Seller, nor has Seller executed any waiver of any statute of limitations on or extending the period for the
assessment or collection of any Tax. To the extent relevant to the Purchased Assets or the Business, (i) as of the Closing Date, Seller will have prepared and timely filed all required federal, state, local and foreign returns, estimates,
information statements and reports (“Returns”) relating to any and all Taxes concerning or attributable to Seller or its operations and required to have been filed on or before the Closing Date (taking into account extensions to
file) and such Returns are or will be true and correct and have been or will be completed in accordance with applicable law; and (ii) no audit or other examination of any Return of Seller is presently in progress, nor has Seller been notified
of any request for such an audit or other examination. Seller does not have, and to Seller’s Knowledge, there is no basis for, the assertion of any claim for any liabilities for unpaid Taxes for which Buyer would become liable as a result of
the transactions contemplated by this Agreement. There are (and immediately following the Closing there will be) no Encumbrances on the Purchased Assets relating to or attributable to Taxes, other than Permitted Encumbrances. To Seller’s
Knowledge, there is no basis for the assertion of any claim relating or attributable to Taxes which, if adversely determined, would result in any Encumbrance, other than Permitted Encumbrances, on the Purchased Assets. 
 3.10 No Broker. Seller has not retained or used the services of an agent, finder or broker in connection with the transactions
contemplated by this Agreement. 
 4. Representations and Warranties of Buyer. Buyer represents and warrants to Seller as
follows: 
 4.1 Authority and Binding Effect. Buyer has the full corporate power and authority to execute and deliver
this Agreement and the Ancillary Agreements. This Agreement and the Ancillary Agreements, and the consummation by Buyer of its obligations contained herein and therein, have been duly authorized by all necessary corporate actions of Buyer, and this
Agreement and the Ancillary Agreements have been duly executed and delivered by Buyer. This Agreement and the Ancillary Agreements are valid and binding agreements of Buyer, enforceable against Buyer in accordance with their respective terms.

 4.2 Organization and Standing. Buyer is a corporation duly organized, validly existing and in good standing under
the laws of the State of Delaware, and Buyer is qualified to do business in each jurisdiction where such qualification is necessary and where the failure to be so qualified would have a Material Adverse Effect on Buyer. Buyer has the requisite
corporate power and authority to conduct its business as now conducted, to own or lease the Purchased Assets, and to use such Purchased Assets in the conduct of its business. 
  

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 4.3 Conflicts; Consents. The execution and delivery by Buyer of this Agreement and
the Ancillary Agreements, and the consummation of the transactions contemplated hereby, will not give rise to a Conflict with respect to (i) any provision of the certificate of incorporation or bylaws of Buyer, each as amended to date;
(ii) Contracts to which Buyer or any of its properties or assets (including intangible assets) is subject; or (iii) any judgment, order, decree, statute, law, ordinance, rule or regulation applicable to Buyer or any of its properties or
assets (tangible and intangible), except in any such case where it would not have a Material Adverse Effect on Buyer. It is not necessary for Buyer to take any action or to obtain any approval, consent or release by or from any Third Party,
governmental or other, to enable Buyer to enter into or perform its obligations under this Agreement and the Ancillary Agreements. 
 4.4 Compliance with Law/Permits. Buyer is in compliance with all, and is not in violation of any, law, ordinance, order, decree, rule or regulation of any governmental agency or authority, the violation of or noncompliance with which
could have a Material Adverse Effect on Buyer. No unresolved (i) charges of violations of laws or regulations relating to Buyer’s business have been made or threatened; (ii) proceedings or investigations relating to its business are
pending or, to Buyer’s knowledge, have been threatened; and (iii) citations or notices of deficiency have been issued or have been threatened, against Buyer relating to or arising out of its business by any governmental authorities, which
have had or could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect on Buyer. 
 4.5
Litigation and Proceedings. There is no action, suit, proceeding or investigation (or any counter or cross-claim in an action brought by or on behalf of Buyer), whether at law or in equity, or before or by any governmental department,
commission, board, bureau, agency or instrumentality, domestic or foreign, or before any arbitrator of any kind, that is pending or, to Buyer’s knowledge, threatened, against Buyer, which (i) could reasonably be expected to affect
adversely Buyer’s ability to perform its obligations under this Agreement or complete any of the transactions contemplated hereby; or (ii) to Buyer’s knowledge, involves the possibility of any judgment or liability, or which may
become a claim, against Seller, its business or the Excluded Assets. Buyer is not subject to any judgment, order, writ, injunction, decree or award of any court, arbitrator or governmental department, commission, board, bureau, agency or
instrumentality having jurisdiction over Buyer, any of the Purchased Assets or the ACI Purchased Assets that affects, involves or relates to the Purchased Assets or the ACI Purchased Assets. 
 4.6 No Broker. Buyer has not retained or used the services of an agent, finder or broker in connection with the transactions
contemplated by this Agreement. 
 5. Conditions Precedent to the Obligations of Buyer. The obligation of Buyer to consummate the
purchase of the Purchased Assets from Seller is subject to the fulfillment, or the waiver by Buyer, at or prior to the Closing, of each of the following conditions precedent: 
 5.1 ACI APA. Buyer and ACI shall have executed the ACI APA. 
 5.2 Representations and Warranties. The representations and warranties made by Seller in this Agreement (a) that are not
qualified by materiality or Material Adverse Effect on Seller will be true and correct, in all material respects, at and as of the Closing Date, and (b) that are qualified by materiality or Material Adverse Effect on Seller will be true and
correct in all respects at and as of the Closing Date (in each case, except for any such representations and warranties that are made as of a particular date, which will be true and correct in all material respects as of such particular date).

  

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 5.3 Certificates. Buyer shall have received from Seller one or more certificates
executed by an authorized officer or member of Seller, dated as of the Closing Date and reasonably satisfactory in form and substance to Buyer, certifying that (i) the condition set forth at Section 5.2 above has been met; (ii) Seller
has performed and complied, in all material respects, with all of Seller’s covenants required to have been performed or complied with by Seller pursuant hereto on or prior to the Closing Date and (iii) attached to such certificate(s) are
true and correct copies of Seller’s organizational documents, governing agreements and resolutions of the members of Seller approving the execution and delivery of this Agreement and the Ancillary Agreements and the consummation of the
transactions contemplated hereby and thereby. 
 5.4 Termination of Existing JNJ-ACI License. ACI and Seller shall have
executed the Termination Agreement between Seller and ACI, which is attached as Exhibit E hereto (the “Termination Agreement”). 
 5.5 Delivery of Additional Documents. On the Closing Date, Seller shall deliver, or cause to be delivered, to Buyer the following documents and instruments, in form and substance satisfactory to Buyer and its
counsel, unless waived in writing by Buyer: 
 (a) Bill of Sale. The Bill of Sale, duly executed by the Seller;

 (b) Intellectual Property Assignments. The Intellectual Property Assignments, duly executed by the Seller;

 (c) Assignment and Assumption Agreement. The Assignment and Assumption Agreement, duly executed by the Seller;

 (d) Evidence of Consent. Evidence of the receipt of the Required Consent by Seller; 
 (e) Good Standing Certificates. Good standing certificate of Seller, dated as of a date that is not more than five (5) days
prior to the Closing Date, from the Secretary of State of Colorado; 
 (f) Intellectual Property Documents. Evidence
of Seller’s authorization to its intellectual property counsel to deliver files relating to the Transferred Intellectual Property Rights to Buyer’s counsel; and 
 (g) Other Documents. Such other documents and instruments as Buyer or Buyer’s counsel may reasonably request so as better to
evidence or effectuate the transactions contemplated hereby. 
  

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 6. Conditions Precedent to Obligations of Seller. The obligation of Seller to consummate
the sale of the Purchased Assets to Buyer is subject to the fulfillment, or the waiver by Seller, at or prior to the Closing, of each of the following conditions precedent: 
 6.1 ACI APA. Buyer and ACI shall have executed the ACI APA. 
 6.2 Representations and Warranties. The representations and warranties made by Buyer in this Agreement (a) that are not
qualified by materiality or Material Adverse Effect on Buyer will be true and correct, in all material respects, at and as of the Closing Date, and (b) that are qualified by materiality or Material Adverse Effect on Buyer will be true and
correct in all respects at and as of the Closing Date (in each case, except for any such representations and warranties that are made as of a particular date, which will be true and correct in all material respects as of such particular date).

 6.3 Certificates. Seller shall have received from Buyer a certificate executed by an authorized officer of Buyer,
dated as of the Closing Date and reasonably satisfactory in form and substance to Seller, certifying that (i) the condition set forth at Section 6.2 above has been met; (ii) Buyer has performed and complied, in all material respects,
with all of Buyer’s covenants required to have been performed or complied with by Buyer pursuant hereto on or prior to the Closing Date; and (iii) attached to such certificate are true and correct copies of Buyer’s certificate of
incorporation, by-laws, and resolutions of the Board of Directors of Buyer approving the execution and delivery of this Agreement and the Ancillary Agreements and the consummation of the transactions contemplated hereby and thereby. 
 6.4 Delivery of Additional Documents. On the Closing Date, Buyer shall deliver, or cause to be delivered, to Seller the following
documents and instruments, in form and substance satisfactory to Seller and its counsel, unless waived in writing by Seller: 
 (a) Bill of Sale. The Bill of Sale, duly acknowledged by the Seller; 
 (b) Good Standing Certificates.
A good standing certificate of Buyer, dated as of a date that is not more than five (5) days prior to the Closing Date, from the Secretaries of States of Delaware and California; and 
 (c) Other Documents. Such other documents and instruments as Seller or Seller’s counsel may reasonably request so as better to
evidence or effectuate the transactions contemplated hereby. 
 7. Post-Closing Covenants. 
 7.1 Commercially Reasonable Efforts. 
 (a) Buyer will use commercially reasonable efforts, consistent with its efforts in respect of other products which it owns or to which it has rights, to develop and commercialize Products for the treatment of
glabellar furrows during the Royalty Period (as defined in the ACI APA); provided that Buyer will not be required to use any level of efforts to sell, market, or distribute Products in any jurisdiction prior to receipt of all regulatory
approvals reasonably deemed by Buyer to be necessary for the marketing and sale of Products in such jurisdiction. 
  

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 (b) Buyer will spend a cumulative minimum of approximately [*] in operating expenses
related to the Products and the Transferred Intellectual Property Rights in the first two (2) years following the receipt of regulatory approval for the treatment of glabellar furrows, which investment may be in the form of research and
development, acquisition of technology enhancements, clinical studies, obtaining regulatory approval, clinical education, sales and marketing efforts, and/or the assumption of certain employees of ACI and associated operating expenses. The Parties
agree that such investment will satisfy Buyer’s obligations under this Section 7.1 during that two year period; provided that Buyer may reasonably adjust such investment amount as a result of material unforeseen events, including
but not limited to, unfavorable developments related to regulatory approvals or Intellectual Property Rights. 
 (c) Whether
certain efforts by Buyer are deemed to be “commercially reasonable” under this Section 7.1 with respect to Products for the treatment of glabellar furrows will be determined in light of all relevant factors in the relevant
jurisdictions including (1) the market potential and rate of market growth of Products (including anticipated profit margin and the perceived market size); (2) the expense and difficulty of obtaining regulatory approval for Products in
each jurisdiction (including the extent of the indications, if any, for which Products have been approved); (3) in Buyer’s reasonable estimation, whether or not the sale of Products infringes or could infringe the Intellectual Property
Rights of Third Parties; and (4) the competitive position of Products vis-à-vis other products marketed and sold for the same indications, including with respect to the safety, efficacy, and cost of Products when compared to such other
products. Buyer’s reasonable commercial efforts may include, but are not limited to, one or more of the following: developing and using a variety of sales tools, promotions, and in-office marketing materials; organizing and sponsoring clinical
education programs; promoting Products through key opinion leader programs and customer outreach programs; promoting Products at major medical trade shows attended by plastic surgeons, facial plastic surgeons, ENT surgeons, occuloplastic surgeons,
and dermatologists; training, educating, supporting, and maintaining representatives to market and sell Products for the treatment of glabellar furrows; and applying reasonable financial, personnel, and facilities resources in support of its
Commercialization efforts. For purposes of determining whether or not Buyer is complying with its obligations under this Section 7.1, Buyer’s sales and marketing efforts for Products in all relevant jurisdictions will be considered in the
aggregate, and not by separate jurisdiction. 
 (d) Seller acknowledges and agrees that nothing in this Agreement (including,
without limitation, any schedules or attachments hereto) will be construed as representing an estimate or projection of either (i) the extent to which Products will be successfully commercialized by Buyer or (ii) the anticipated sales or
the actual value of any Product. BUYER MAKES NO REPRESENTATION OR WARRANTY, EITHER EXPRESS OR IMPLIED, THAT IT WILL BE ABLE TO SUCCESSFULLY COMMERCIALIZE ANY PRODUCT OR, IF COMMERCIALIZED, THAT IT WILL ACHIEVE ANY PARTICULAR SALES LEVEL OF SUCH
PRODUCT(S). 
 7.2 Patent Prosecution. Buyer will use good faith efforts to prosecute and maintain the Transferred
Patent Rights such that the Transferred Patent Rights cover the Products sold by Buyer. 
  

	[*]	Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

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 7.3 Agreement with AHI. Buyer will negotiate in good faith with AHI to enter into
an agreement as outlined in the letter of intent sent by Buyer to AHI dated as of the date of this Agreement, a copy of which has been provided to Seller. Seller will not take any actions that impede or interfere with the negotiations between Buyer
and AHI. In the event that Buyer and AHI execute an agreement as described in this Section 7.3 and Buyer is obligated to pay royalties to AHI on Products sold in the AHI Field, then (i) Buyer will use reasonable efforts to determine
whether the sale of a Product was in the Royalty Field or the AHI Field; (ii) Buyer will not be in breach of this Agreement or the ACI APA as a result of failure to pay a royalty payment with respect to a sale of a Product if Buyer has paid
either AHI or ACI in good faith a royalty on such sale; and (iii) in the event of a dispute as to whether a Product sold by Buyer was sold in the AHI Field or the Royalty Field (each as defined in the ACI APA), the Parties will submit the
matter to dispute resolution proceedings in accordance with Section 9.11. 
 7.4 Records Retention; Access and
Investigation. After the Closing Date, Buyer shall retain the Transferred Books and Records for a period consistent with its current record-retention policies and practices, but in no event less than seven (7) years. Buyer shall provide
Seller and its representatives reasonable access to such Books and Records during normal business hours and upon reasonable notice, to enable Seller to (i) prepare financial statements or Tax returns or to act with respect to Tax audits,
(ii) prosecute or defend Third Party claims or litigation, and (iii) take any other action reason reasonably related to this Agreement. 
 7.5 Further Assurances. Seller shall provide all cooperation reasonably requested by Buyer in connection with any effort by Buyer to establish, perfect, defend, or enforce its rights in or to the Purchased
Assets and the ACI Purchased Assets, including executing further consistent assignments, transfers, licenses, and releases. To the extent Seller cannot transfer and assign any of the Transferred Intellectual Property Rights, or any portion thereof,
as of the Closing, then Seller will assign and transfer such Transferred Intellectual Property Rights at the first opportunity to do so. To the extent further transfer or assignment of any Transferred Intellectual Property Rights is required and
Seller has not, within fifteen (15) Business Days of the delivery of such assignment to Seller, (i) executed and returned to Buyer the form of assignment reasonably requested by Buyer or (ii) delivered to Buyer a written objection to
Buyer’s request, then Seller hereby irrevocably appoints Buyer as its attorney-in-fact with the right, authority, and ability to execute and enter into such assignment on behalf of Seller. Seller stipulates and agrees that such appointment is a
right coupled with an interest and will survive the incapacity or unavailability of Seller at any future time. To the extent that any of the Transferred Intellectual Property Rights cannot be assigned and transferred by Seller, then Seller hereby
grants Buyer an irrevocable, worldwide, fully-paid up, royalty-free, exclusive license, with the right to sublicense through multiple tiers, to make, use, sell, improve, reproduce, distribute, perform, display, transmit, manipulate in any manner,
create derivative works based upon, and otherwise utilize in any manner the Transferred Intellectual Property Rights. In addition, Seller hereby releases, discharges, and covenants not to assert against Buyer or Buyer’s Affiliates, licensees,
or representatives, all claims, causes, and rights of action, whether now existing or hereinafter arising, and whether known or unknown, arising from any use or exploitation of the Transferred Intellectual Property Rights; provided, however,
that Seller does not release or covenant not to assert any claim, cause, or right of action based upon the breach of this Agreement or the ACI APA by Buyer. 
  

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 7.6 Expenses. Except as otherwise provided herein, each Party shall pay all of its
respective costs and expenses incurred or to be incurred by it in negotiating and preparing this Agreement and in carrying out and closing the transactions contemplated by this Agreement, whether or not this Agreement or the transactions
contemplated hereby are ever consummated. 
 7.7 Transition Support. Seller will provide commercially reasonable
transition support to Buyer as follows, in each case at the expense of Buyer: 
 (a) Access to Information. From the
Closing Date until forty-five (45) days following the Closing Date, upon reasonable notice received from Buyer and during normal business hours, Seller shall afford Buyer and its representatives free and full access to Seller’s personnel,
properties, Contracts, and other documents and data (such rights of access to be exercised in a manner that does not unreasonably interfere with the operations of Seller), and otherwise cooperate and assist Buyer, to the extent reasonably necessary
(i) to confirm that all Purchased Assets have been transferred to Buyer and (ii) for Buyer to use the Purchased Assets after the Closing, and (iii) for Buyer to carry out its covenants under this Agreement and the ACI APA. Any
information of Seller’s so reviewed by Buyer that does not constitute Purchased Assets shall be kept strictly confidential by Buyer. 
 (b) Retained Liabilities. Seller will satisfy the Retained Liabilities in full as such liabilities become due and payable pursuant to their terms. 
 (c) Inquiries. Seller agrees, for a period of one hundred eighty (180) days following the Closing Date, to use good faith
efforts to redirect to Buyer all inquiries concerning the Purchased Assets made by any Person to Seller or any of its agents or representatives. 
 7.8 Delivery or Destruction of Copies. Promptly after transfer of the Purchased Assets to Buyer, and in no event later than sixty (60) days following the Closing Date, Seller will determine whether any
Purchased Assets or copies of Purchased Assets remain in Seller’s or its employees’ or agents’ possession (including without limitation information stored on computer hardware) (collectively, the “Remaining Assets”).
Seller will deliver to Buyer or destroy all Remaining Assets and will provide to Buyer a certificate signed by a duly authorized officer of Seller certifying such delivery or destruction; provided, however, that Seller may destroy, rather
than deliver, only those Remaining Assets that are exact copies of the Purchased Assets delivered to Buyer. 
 7.9
Non-Competition. As of the Closing Date and for a period of five (5) years thereafter, Seller covenants that Seller will not, either by itself or with, through or for the benefit of any Affiliate, licensee, or Third Party, make, use,
sell, offer to sell, import, export, or otherwise develop or commercialize any nerve ablation devices; provided, however, that if Buyer enters into a license agreement with AHI as contemplated in the letter of intent dated as of the date of
this Agreement sent by Buyer to AHI, then Seller may engage in such activities, but only through or for the benefit of AHI, or its wholly-owned subsidiaries or licensees and solely in the AHI Field. The Parties acknowledge that the
restriction contained in this Section 7.9 is reasonable, valid, and necessary for the adequate protection of Buyer’s business and that Buyer would not have entered into this Agreement without the protection afforded it by this
Section 7.9. 
  

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 8. Indemnification; Survival. 
 8.1 Indemnification of Buyer. Subject to the provisions of this Section 8, Seller shall indemnify and hold harmless Buyer, its
stockholders, and its representatives (collectively, the “Buyer Indemnitees”), from and against any and all damage, loss, liability and expense (including without limitation reasonable expenses of investigation and reasonable
attorneys’ and consultants’ fees and expenses in connection with any action, suit or proceeding or settlement of any of the foregoing) (collectively, “Losses”) incurred or suffered by a Buyer Indemnitee arising out of:

 (a) any breach of the representations and warranties of Seller set forth in this Agreement; 
 (b) any breach of any covenant or agreement of Seller set forth in this Agreement or in any certificate, instrument, or other document
delivered pursuant to this Agreement; 
 (c) any failure to comply with laws relating to bulk transfers or bulk sales with
respect to the transactions contemplated by this Agreement; 
 (d) claims by Seller’s or AHI’s stockholders or
members or Seller’s or AHI’s current or former employees that are related to this Agreement, the ACI APA, or the transactions contemplated herein and therein; and 
 (e) the Retained Liabilities. 
 Notwithstanding any other provision of this Agreement, the remedies provided for in this Section 8 shall constitute the sole and exclusive remedy of Buyer and any other Buyer Indemnitee for any post-Closing claims made in connection
with this Agreement or any other Losses as described in this Section 8.1, except for the actual fraud of Seller. 
 8.2
Indemnification of Seller. Subject to the provisions of this Section 8, Buyer shall indemnify and hold harmless Seller, its members, and its representatives (collectively, the “Seller Indemnitees”), from and against any
and all Losses incurred or suffered by a Seller Indemnitee arising out of: 
 (a) any breach of the representations and
warranties of Buyer set forth in this Agreement; 
 (b) any breach of any covenant or agreement of Buyer set forth in this
Agreement or in any certificate, instrument, or other document delivered pursuant to this Agreement; and 
 (c) the ownership
or use of the Purchased Assets after the Closing. 
 Notwithstanding any other provision of this Agreement, the remedies provided for in this
Section 8 shall constitute the sole and exclusive remedy of Seller and any other Seller Indemnitee for any post-Closing claims made in connection with this Agreement or any other Losses as described in this Section 8.2, except for the
actual fraud of Buyer. 
  

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 8.3 Limitations on Indemnification. 
 (a) Notwithstanding anything in Section 8.1 to the contrary, Seller shall not be obligated to indemnify Buyer or any other Buyer
Indemnitee until aggregate Losses of Buyer and such Buyer Indemnitees under Section 8.1 have exceeded the Basket Amount, in which case Buyer and the other Buyer Indemnitees shall be entitled to indemnification for the total amounts of such
Losses. Notwithstanding the immediately preceding sentence, Buyer and Buyer’s Indemnitees shall be entitled to recover for, and the Basket Amount shall not apply as a threshold to, (i) any Losses arising or resulting from fraud or
fraudulent misrepresentation with respect to representations and warranties of Seller contained in this Agreement; or (ii) any liabilities for indemnification under Section 8.1(c), 8.1(d), or 8.1(e). 
 (b) Notwithstanding anything in Section 8.2 to the contrary, Buyer shall not be obligated to indemnify Seller or any other Seller
Indemnitee until aggregate Losses of Seller and such Seller Indemnitees under Section 8.2 have exceeded the Basket Amount, in which case Seller and the other Seller Indemnitees shall be entitled to indemnification for the total amounts of such
Losses. Notwithstanding the immediately preceding sentence, Seller and Seller’s Indemnitees shall be entitled to recover for, and the Basket Amount shall not apply as a threshold to, (i) any Losses arising or resulting from fraud or
fraudulent misrepresentation with respect to representations and warranties of Buyer contained in this Agreement; (ii) Buyer’s obligations to pay the Purchase Price under the ACI APA (including any portion thereof to be paid after the
Closing, such as the Royalty Consideration or Success Milestone); (iii) any liabilities for indemnification under Section 8.2(c); or (iv) any liability of Buyer under Section 2.9 (Transfer Taxes). 
 (c) The maximum liability of Seller for any Losses in the aggregate under Section 8.1(a) shall not exceed eight million dollars
($8,000,000) except that there shall be no such limitation on Losses exceeding such amount that arise as a result of (i) a breach of the representations and warranties in Section 3.1 (Authority and Binding Effect), 3.2 (Organization and
Standing) or 3.6(i) or 3.6(iii) (Conflicts; Consents); (ii) intentional, knowing or willful breach of this Agreement, fraud, or similar circumstances; or (iii) (for the avoidance of doubt) indemnification under Sections 8.1(b), 8.1(c),
8.1(d), or 8.1(e). 
 (d) No claim for indemnification shall be made pursuant to Section 8.1(a) after one (1) year
from the Closing Date; provided, however, that claims for indemnification under Section 8.1(a) may be made for up to three (3) years from the Closing Date for Losses that arise as a result of a breach of the representations and
warranties in Section 3.4 (Contracts) and Section 3.5 (Intellectual Property). Notwithstanding the foregoing, any such claim for indemnification shall continue as to any matter as to which a claim is submitted in writing to Seller prior to
such one or three-year period and identified as a claim for indemnification pursuant to this Agreement, until such time as such claims and matters are resolved. In addition, any such claim for indemnification may be brought at any time to the extent
it is based upon or involves (i) fraud by the Indemnifying Party; or (ii) claims made under Section 8.1(a) for a breach of Section 3.1 (Authority and Binding Effect), 3.2 (Organization and Standing) or 3.6(i) or 3.6
(iii) (Conflicts; Consents). 
  

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 (e) Subject to the limitations set forth at this Section 8.3, Buyer may offset
against the Royalty Consideration and Success Milestone, as and when the Royalty Consideration and/or Success Milestone becomes due and payable to ACI, any amounts owed to Buyer for indemnification under Section 8.1. 
 (f) Amounts available pursuant to the Escrow Agreement and the royalty offset described in Section 8.3(e) shall be Buyer’s only
recourse for any liability of Seller under Section 8.1(a), except in the case of (i) intentional, knowing or willful breach of any representation, warranty, or covenant in this Agreement; (ii) fraud or similar circumstances; or
(iii) claims made under Section 8.1(a) for a breach of Section 3.1 (Authority and Binding Effect), 3.2 (Organization and Standing) or 3.6(i) or 3.6 (iii) (Conflicts; Consents). 
 (g) Subject to the limitations set forth at Section 9.3 of the ACI APA, Buyer may also offset against the Royalty Consideration and
Success Milestone, as and when the Royalty Consideration and/or Success Milestone becomes due and payable, any amounts owed to Buyer by ACI for indemnification under Section 9.1 of the ACI APA. Amounts available pursuant to the Escrow Agreement
will also be available to satisfy any liability of ACI to Buyer under Section 9.1 of the ACI APA. 
 8.4
Procedure. A Party seeking indemnification (the “Indemnitee”) will promptly notify the other Party (the “Indemnifying Party”) in writing of a claim or suit; provided that an Indemnitee’s failure to
give such notice or delay in giving such notice will not affect such Indemnitee’s right to indemnification under this Section 8 except to the extent that the Indemnifying Party has been prejudiced by such failure or delay. The Indemnitee
has the right to participate (a) at its own expense in the claim or suit with counsel of its own choosing and (b) in selecting counsel to be used by the Indemnifying Party in such claim or suit. The Indemnifying Party will consult with the
Indemnitee in good faith with respect to all non-privileged aspects of the defense strategy. The Indemnitee will cooperate with the Indemnifying Party as reasonably requested, at the Indemnifying Party’s sole cost and expense. The Indemnifying
Party will not settle any claim or suit without the Indemnitee’s prior written consent unless such settlement is limited to the payment of cash by the Indemnifying Party and contains a full release of the Indemnitee. 
 9. Miscellaneous. 
 9.1 Public Announcements. Neither Party shall make any public announcements concerning matters concerning this Agreement or the ACI APA or the negotiation thereof without the prior written consent of the other Party unless such
disclosure is required by law, in which case the announcing Party shall provide the other Party with reasonable notice of such disclosure. 
 9.2 Assignment. This Agreement and the rights and obligations hereunder may only be assigned by a Party upon the written consent of the other Party, and the obligations of such transferring Party will then
transfer to the acquiring party upon any such assignment; provided, however, Seller may assign this Agreement and the rights and obligations hereunder without the consent of Buyer to a liquidating trust established by Seller or its members; and
provided, further, that a change of control, merger, and/or purchase of substantially all of the assets of either Party (or, in the case of Buyer, substantially all of the assets relating to the Product) shall not constitute 

  

 - 21 - 

 
an assignment requiring consent of the other Party. This Agreement will be binding upon the successors and permitted assigns of the Parties and the name of a
Party appearing herein will be deemed to include the names of such Party’s successors and permitted assigns to the extent necessary to carry out the intent of this Agreement. 
 9.3 Confidentiality. Each Party hereby agrees, and agrees to cause its stockholders, members, and representatives, to keep the
terms of this Agreement, the ACI APA, and each of the Ancillary Agreements confidential and will treat and safeguard such terms with the same degree of care with which it treats its own confidential information and to limit access to such terms to
such employees, consultants, representatives and professional advisors of such Party who reasonably require such access in connection with the activities contemplated by this Agreement or otherwise to administer the terms of this Agreement. To the
extent practicable, in the event that a Party is required to disclose such terms pursuant to any law, regulation, or judicial or administrative directive, such Party will promptly notify the other Party in order to allow the other Party a reasonable
period of time to obtain protective or confidential treatment of such terms before they are disclosed. Either Party may disclose the terms of this Agreement and the Ancillary Agreements (i) to the extent required, in the reasonable opinion of
such Party’s legal counsel, to comply with applicable laws, including, without limitation, the rules and regulations promulgated by the United States Securities and Exchange Commission; and (ii) in connection with a prospective
acquisition, merger, financing, or license for such Party, to prospective acquirers or merger candidates or to existing or potential investors or licensees; provided that prior to such disclosure each such candidate or investor will agree to
be bound by obligations of confidentiality and non-use at least equivalent in scope to those set forth in this Section 9.3. Each Party acknowledges that it will be impossible to measure in money the damage to the other Party if such Party fails
to comply with the obligations imposed by this Section 9.3, and that, in the event of any such failure, the non-disclosing Party will not have an adequate remedy at law or in damages. Accordingly, each Party agrees that injunctive relief or
other equitable remedy, in addition to remedies at law or damages, is an appropriate remedy for any such failure and will not oppose the granting of such relief on the basis that the disclosing Party has an adequate remedy at law. Each Party agrees
that it will not seek, and agrees to waive any requirement for, the securing or posting of a bond in connection with the non-disclosing Party seeking or obtaining such equitable relief. 
 9.4 Severability. Any provision of this Agreement which is illegal, invalid or unenforceable shall be ineffective to the extent of
such illegality, invalidity or unenforceability, without affecting in any way the remaining provisions hereof. 
 9.5
Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the State of California applicable to contracts executed in and to be performed in that jurisdiction, without giving effect to its rules regarding
conflicts of laws. 
 9.6 Entire Agreement; Amendment. This Agreement, the ACI APA, the Exhibits and Schedules hereto
and thereto, and each additional agreement and document to be executed and delivered pursuant hereto constitute all of the agreements of the Parties with respect to, and supersede all prior agreements and understandings relating to the subject
matter of, this Agreement or the transactions contemplated by this Agreement. This Agreement may not be modified or amended except by a written instrument specifically referring to this Agreement signed by the parties hereto. 
  

 - 22 - 

 9.7 Waiver. No waiver by one Party of the other Party’s obligations, or of
any breach or default hereunder by any other Party, shall be valid or effective, unless such waiver is set forth in writing and is signed by the party giving such waiver; and no such waiver shall be deemed a waiver of any subsequent breach or
default of the same or similar nature or any other breach or default by such other Party. 
 9.8 Interpretation;
Headings. This Agreement is the result of arms-length negotiations between the Parties hereto and no provision hereof, because of any ambiguity found to be contained therein or otherwise, shall be construed against a Party by reason of the fact
that such Party or its legal counsel was the draftsman of that provision. The section, subsection and any paragraph headings contained herein are for the purpose of convenience only and are not intended to define or limit or affect, and shall not be
considered in connection with, the interpretation of any of the terms or provisions of this Agreement. The plural will be deemed to include the singular, and the singular will be deemed to include the plural. The words “include,”
“includes,” or “including” mean including, by way of example and not by way of limitation. Words such as “herein,” “hereinafter,” “hereof,” and “hereunder” refer to this Agreement as a
whole and not merely to a section or paragraph in which such words appear, unless the context otherwise requires. The words “shall” and “will” are deemed to be synonyms. 
 9.9 Counterparts. This Agreement may be executed in separate counterparts, each of which shall be deemed an original, but all of
which together shall constitute one and the same instrument. 
 9.10 Notices. Unless otherwise provided herein, any
notice, report, payment, or document to be given by one Party to the other will be in writing and will be deemed given when actually received or when delivered personally, mailed by certified or registered mail, postage prepaid (such mailed notice
to be effective on the date that is five (5) Business Days after the date of mailing), sent by reputable overnight courier (such notice sent by courier to be effective one (1) Business Day after it is deposited with such courier), or by
electronic facsimile (such notice sent by facsimile to be effective on the first Business Day after transmission, provided that the successful transmission of the facsimile has been confirmed) to the address below, or to such other place as any
Party may designate as to itself by written notice to the other Party. 
 If to Seller: 
 JNJ Technology Holdings, LLC 
 PMB 513

 10940 S. Parker Road 
 Parker,
CO 80134-9901 
 Facsimile: (303) 799-1588 
 Attention: Mike Janssen 
  

 - 23 - 

 with a copy to: 
 Heller Ehrman LLP 
 Times Square Tower 
 7 Times Square 
 New York, NY 10036

 Attn: Stephen Davis 
 Fax:
(212) 763-7600 
 If to Buyer: 
 BioForm Medical, Inc. 
 1875 South Grant St., Suite #110 
 San Mateo, CA 94402 
 Attn: Chief Executive
Officer 
 Fax: (650) 286-4090 
 with a copy to: 
 Ropes & Gray LLP 
 525 University Avenue, Suite 300 
 Palo Alto, CA 94301-1917 
 Attn: David J. Saul 
 Fax: (650) 566-4232

 9.11 Dispute Resolution. In the event that any dispute or controversy arises between the Parties out of or relating
to this Agreement or any Ancillary Agreement (a “Dispute”), a Party shall notify the other Party in writing of the existence of the Dispute, and the Parties shall meet and negotiate in good faith to attempt to resolve the matter. If
such efforts do not within thirty (30) days resolve the Dispute, the Dispute shall be resolved by binding arbitration as provided in this Section 9.11. Buyer and Seller shall each appoint an arbitrator of choice from a list of arbitrators
recognized by the American Arbitration Association. The appointed arbitrators shall appoint a third arbitrator from the list, and the three arbitrators shall hear the Parties and settle the Dispute. The proceedings shall be conducted under and
governed by the Commercial Rules of the American Arbitration Association, as in effect from time to time. All arbitration hearings shall be conducted in the jurisdiction selected by the Party not bringing the action, which jurisdiction shall either
be the City and County of San Francisco, California or the City and County of Denver, Colorado. All applicable statutes of limitation shall apply to any Dispute. The arbitrators shall have no power to award punitive or exemplary damages or to ignore
or vary the terms of this Agreement, and shall be bound to apply controlling law. The arbitrators may award costs and expenses incurred in connection with a Dispute (including reasonable attorney’s fees) to a Party, if it is determined by the
arbitrator that the other Party acted in bad faith. A judgment upon the award may be entered in any court having jurisdiction. 
 9.12 GAAP. All questions of accounting under this Agreement shall be resolved under generally accepted accounting principles as recognized by the American Institute of Certified Public Accountants, as in effect from time to time,
consistently applied and maintained on a consistent basis for the applicable Person (or Persons on a consolidated basis, as the case may be) throughout the period indicated and consistent with such Person’s prior financial practices.

 [Remainder of Page Intentionally Left Blank] 
  

 - 24 - 

 IN WITNESS WHEREOF, each of Buyer and Seller has caused a duly authorized representative to execute this
Asset Purchase Agreement on the date first written above. 
  

			
	BIOFORM MEDICAL, INC.
		
	By:	 	/s/ Steven L. Basta
	 Name: Steven L. Basta

	 Title: Chief Executive Officer

	
	JNJ TECHNOLOGY HOLDINGS, LLC
		
	By:	 	/s/ Michael Janssen
	 Name: Michael Janssen

	 Title: Executive Director

 [Signature Page to Asset Purchase Agreement] 

 EXHIBIT A 
 ACI APA 

 EXHIBIT B 
 ESCROW AGREEMENT 

 EXHIBIT C 
 BILL OF SALE 

 EXHIBIT D 
 INTELLECTUAL PROPERTY ASSIGNMENTS 
  

 EXHIBIT E 
 TERMINATION AGREEMENT 

 EXHIBIT C 
 BILL OF SALE 
 This BILL OF SALE is from Advanced Cosmetic Intervention, Inc., a Colorado
corporation, (“Seller”) to BioForm Medical, Inc., a Delaware corporation, (“Buyer”). 
 WITNESSETH 

 Seller, for good and valuable consideration paid to it by Buyer, as more fully set forth in that certain Asset Purchase Agreement made as
of April 29, 2008 by and between Buyer and Seller (the “Asset Purchase Agreement”), the receipt and sufficiency of which are hereby acknowledged, has granted, bargained, sold, conveyed, assigned, transferred, set over and delivered,
and by these presents does hereby grant, bargain, sell, convey, assign, transfer, set over and deliver unto Buyer, and unto Buyer’s successors and assigns, forever, all of the Purchased Assets, including without limitation those assets set
forth on Exhibit A attached hereto. Capitalized terms used herein and not defined herein shall have the meanings ascribed thereto in the Asset Purchase Agreement. 
 TO HAVE AND TO HOLD, all and singular, the Purchased Assets are hereby sold, assigned, transferred and delivered unto Buyer and Buyer’s successors and assigns forever. 
 This Bill of Sale is in accordance with and is subject to all of the representations, warranties, covenants, exclusions and indemnities set forth in the
Asset Purchase Agreement, all of which are incorporated herein by reference. Seller and Buyer each acknowledge and agree that all representations and warranties given with respect to the sale of the Purchased Assets pursuant to this Bill of Sale are
as set forth in the Asset Purchase Agreement and that no warranties, express or implied, are provided herein and to the extent they are provided they are hereby disclaimed. Any action or claim arising out of this Bill of Sale shall be made only
pursuant to, and subject to, Section 9 of the Asset Purchase Agreement. Seller and Buyer each acknowledge and agree that any dispute or controversy that arises between Seller and Buyer out of or relating to this Bill of Sale shall be subject to
Section 10.11 of the Asset Purchase Agreement. In the event that any provision of this Bill of Sale is construed to conflict with a provision in the Asset Purchase Agreement, the provision in the Asset Purchase Agreement shall be deemed to be
controlling. 
 [Remainder of Page Intentionally Left Blank.] 

 IN WITNESS WHEREOF, Seller has caused this Bill of Sale to be duly executed as of April 29, 2008.

  

							
	ADVANCED COSMETIC INTERVENTION, INC.
	a Colorado corporation
			
		 	By	 	/s/ Paul Maroon
		 		 	Name:	 	Paul Maroon
		 		 	Title:	 	Chief Executive Officer

 Acknowledged: 
  

							
	BIOFORM MEDICAL, INC., a Delaware corporation
			
		 	By	 	/s/ Steven L. Basta
		 		 	Name:	 	Steven L. Basta
		 		 	Title:	 	Chief Executive Officer

 BILL OF SALE 

 Exhibit A 
 PURCHASE PRICE ALLOCATION 
  

				
	 Tangible Assets
	  	Purchase Price
Allocation
	 Computer Equipment
	  		
	 [*]
	  	 	[*]
	 [*]
	  	 	[*]
	 [*]
	  	 	[*]
	 [*]
	  	 	[*]
	 [*]
	  	 	[*]
	 [*]
	  	 	[*]
	 [*]
	  	 	[*]
	 [*]
	  	 	[*]
	 [*]
	  	 	[*]
	 [*]
	  	 	[*]
	 [*]
	  	 	[*]
	 [*]
	  	 	[*]
	 [*]
	  	 	[*]
	 [*]
	  	 	[*]
	 [*]
	  	 	[*]
	 [*]
	  	 	[*]
	 [*]
	  	 	[*]
	 [*]
	  	 	[*]
	 [*]
	  	 	[*]
		  	 	 
	 Total Computer Equip
	  	 	[*]
		  	 	 
	 Laboratory Equipment
	  		
	 [*]
	  	 	[*]
	 [*]
	  	 	[*]
	 [*]
	  	 	[*]
		  	 	 
	 Total Lab Equipment
	  	 	[*]
		  	 	 
	 All other Laboratory Equipment at ACI [*] not on capitalization table and <$1,000
	  	$	[*]
	 All Demonstration Equipment at ACI [*]
	  	$	[*]

  

	[*]	Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

			
	 Manufacturing Equipment
	  	
	 [*]
	  	[*]
	 [*]
	  	[*]
	 [*]
	  	[*]
	 [*]
	  	[*]
	 [*]
	  	[*]
	 [*]
	  	[*]
	 [*]
	  	[*]
	 [*]
	  	[*]
	 [*]
	  	[*]
	 [*]
	  	[*]
	 [*]
	  	[*]
	 [*]
	  	[*]
	 [*]
	  	[*]
	 [*]
	  	[*]
		  	 
		  	[*]
		  	 
	 [*]
	  	[*]
	 [*]
	  	[*]
	 [*]
	  	[*]
	 [*]
	  	[*]
	 [*]
	  	[*]
	 [*]
	  	[*]
		  	 
		  	[*]
		  	 
	 Total Manufacturing Equipment
	  	[*]
		  	 
	 All other Manufacturing Equipment either at ACI [*] not on capitalization table and <$1,000
	  	[*]
	 Inventory (at ACI [*])
	  	
	 [*]
	  	
	 [*]
	  	
	 [*]
	  	
	 [*]
	  	
	 [*]
	  	

  

	[*]	Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

				
	 All Marketing Materials at ACI (brochures, DVD’s, training materials)
	  	 	[*]
	 All Lab Books and Other Notebooks
	  	 	[*]
	 Office Furniture & Equipment
	  		
	 [*]
	  	 	[*]
	 [*]
	  	 	[*]
	 [*]
	  	 	[*]
		  	 	 
	 Total Office Furniture & Equipment
	  	 	[*]
		  	 	 
	 Total Property, Plant & Equipment
	  	$	228,162.05
		  	 	 
		
	 Inventory - Finished Goods
	  	Total Fair Value
		  	 	 
	 [*]
	  	$	[*]
	 [*]
	  	 	[*]
		  	 	 
	 Total Inventory - Finished Goods
	  	$	777,968
		  	 	 
		
	 Recap
	  	 
	 Total Property, Plant & Equipment [*]
	  	$	130,486
	 Total Property, Plant & Equipment [*]
	  	 	97,676
	 Inventory - Finished Goods
	  	 	777,968
	 Total tangible personal property
	  	$	1,006,130
		  	 	 

  

	[*]	Certain information in this document has been omitted and filed separately with the Securities and Exchange Commission. Confidential treatment has been requested with respect to the
omitted portions. 

 EXHIBIT D 
 ASSIGNMENT AND ASSUMPTION AGREEMENT 
 This Assignment and Assumption Agreement (the
“Assignment and Assumption Agreement”) is made, executed and delivered as of April 29, 2008, by and between Advanced Cosmetic Intervention, Inc., a Colorado corporation, (the “Assignor”) and BioForm Medical, Inc., a
Delaware corporation, (the “Assignee”, and together with Assignor, the “Parties”). 
 WITNESSETH 

 WHEREAS, the Assignor and the Assignee are parties to an Asset Purchase Agreement, dated April 29, 2008, by and between the Assignor and
the Assignee (the “Asset Purchase Agreement”), providing for, among other things, the assignment by the Assignor and the assumption by the Assignee of certain rights, liabilities and obligations of the Assignor, all as more fully
described in the Asset Purchase Agreement, on the terms and conditions provided in the Asset Purchase Agreement; 
 NOW, THEREFORE, in
connection with the Asset Purchase Agreement, for and in consideration of the premises and the mutual covenants contained herein, and for other good and valuable consideration, the receipt, adequacy, and legal sufficiency of which are hereby
acknowledged, the Parties do hereby agree as follows: 
 WITNESSETH 
 1. Definitions. Capitalized terms used but not defined herein shall have the meanings for such terms that are set forth in the Asset Purchase
Agreement. 
 2. Assignment and Assumption. Effective upon the Closing, the Assignor hereby assigns, sells, transfers, and sets over
to the Assignee all of such Assignor’s right, title, benefit, privileges, and interest in and to, and all of such Assignor’s burdens, obligations, and liabilities in connection with, the Purchased Assets and the Assumed Liabilities free
and clear of all liens, claims, licenses, pledges and encumbrances (other than those created by the Assignee or Permitted Encumbrances), in the case of the Purchased Assets. The Assignee hereby accepts and assumes and agrees to observe and perform
all of the duties, obligations, terms, provisions, and covenants of the Purchased Assets and the Assumed Liabilities, and to pay and discharge all of the Assumed Liabilities. 
 3. Limitations and Conflict of Terms. This Assignment and Assumption Agreement is in accordance with and is subject to all of the representations,
warranties, covenants, exclusions and indemnities set forth in the Asset Purchase Agreement, all of which are incorporated herein by reference. Seller and Buyer each acknowledge and agree that all representations and warranties given with respect to
the sale of the Purchased Assets pursuant to this Assignment and Assumption Agreement are as set forth in the Asset Purchase Agreement and that no warranties, express or implied, are provided herein and to the extent they are provided they are
hereby disclaimed. Any action or claim arising out of this Assignment and Assumption Agreement shall be made only 

 
pursuant to, and subject to, Section 9 of the Asset Purchase Agreement. Seller and Buyer each acknowledge and agree that any dispute or controversy that
arises between the Seller and Buyer out of or relating to this Assignment and Assumption Agreement shall be subject to Section 10.11 of the Asset Purchase Agreement. In the event that any provision of this Assignment and Assumption Agreement is
construed to conflict with a provision in the Asset Purchase Agreement, the provision in the Asset Purchase Agreement shall be deemed to be controlling. 
 4. Entire Agreement. This Assignment and Assumption Agreement, the Asset Purchase Agreement, the JNJ APA, and the other Ancillary Agreements together constitute the entire agreement and supersede all prior
agreements and understandings, both written and oral, between the Parties with respect to the subject matter hereof and is not intended to and shall not be construed to confer upon any persons other than the Parties any rights or remedies hereunder.

 5. Amendment and Modification. This Assignment and Assumption Agreement and any of the terms contained herein may be amended or
modified by the Assignor and the Assignee only in writing signed by each Party. 
 6. Assignment. This Assignment and Assumption
Agreement and the rights and obligations hereunder may only be assigned by a Party upon the written consent of the other Party, and the obligations of such transferring Party will then transfer to the acquiring party upon any such assignment;
provided, however, Assignor may assign this Assignment and Assumption Agreement and the rights and obligations hereunder without the consent of Assignee to a liquidating trust established by Assignor or its stockholders; and provided, further, that
a change of control, merger, and/or purchase of substantially all of the assets of either Party (or, in the case of Assignee, substantially all of the assets relating to the Product) shall not constitute an assignment requiring consent of the other
Party. This Assignment and Assumption Agreement will be binding upon the successors and permitted assigns of the Parties and the name of a Party appearing herein will be deemed to include the names of such Party’s successors and permitted
assigns to the extent necessary to carry out the intent of this Agreement. 
 7. Governing Law. This Assignment and Assumption
Agreement shall be governed by and construed in accordance with the laws of the State of California applicable to contracts executed in and to be performed in that jurisdiction, without giving effect to its rules regarding conflicts of laws.

 8. Counterparts. This Assignment and Assumption Agreement may be executed simultaneously in two or more counterparts, each of which
shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 [Remainder of Page Intentionally Left
Blank.] 

 IN WITNESS WHEREOF, each of the undersigned has caused this Assignment and Assumption Agreement to be
signed by its duly authorized officer as of the date first written above. 
  

											
	ASSIGNOR:	 	ADVANCED COSMETIC INTERVENTION, INC.,
		 	a Colorado corporation
					
		 		 		 	By:	 	/s/ Paul Maroon
		 		 		 		 	Name:	 	Paul Maroon
		 		 		 		 	Title:	 	Chief Executive Officer

  

											
	ASSIGNEE:	 	BIOFORM MEDICAL, INC., a Delaware corporation
					
		 		 		 	By:	 	/s/ Steven L. Basta
		 		 		 		 	Name:	 	Steven L. Basta
		 		 		 		 	Title:	 	Chief Executive Officer

 ASSIGNMENT AND ASSUMPTION AGREEMENT

  

 EXHIBIT E 
 FORM OF PATENT ASSIGNMENT 
 WHEREAS, JNJ Technology Holdings, LLC
(“Assignor”), a Colorado limited liability company with an address of 10940 S. Parker Road, Suite 513, Parker, CO 80134, is the owner of all rights, title, and interests in and to the patent applications shown on the attached
Exhibit 1 (the “Patents”); and 
 WHEREAS, BioForm Medical, Inc. (“Assignee”), a Delaware
corporation with an address of 1875 South Grant St., Suite #110, San Mateo, CA 94402, desires to acquire the entire right, title, and interest in and to the Patents and all the inventions and discoveries disclosed in the Patents (the
“Inventions”); 
 NOW THEREFORE, be it known that effective as of April 29, 2008, for good and valuable consideration,
the receipt and sufficiency of which are hereby acknowledged, Assignor hereby sells, assigns, transfers, and sets over unto Assignee (1) the entire right, title, and interest in all countries throughout the world in and to said Patents and
Inventions, including any renewals, revivals, reissues, reexaminations, extensions, continuations, continuations-in-part, and divisions of said Patents and any substitute applications therefor; (2) the entire right to file patent applications
(“New Applications”) in the name of Assignee or its designee on the aforesaid Inventions in all countries of the world; (3) the entire right, title, and interest in and to any patent which issued and may issue on the Inventions
in any country, and any renewals, revivals, reissues, reexaminations, and extensions thereof, and any patents of confirmation, registration, and importation of the same; (4) the right to sue and recover for, and the right to profits or damages
due or accrued in connection with, any and all past, present, or future infringements of the Patents and Inventions; and (5) the entire right, title, and interest in all convention and treaty rights of all kinds, including without limitation
all rights of priority in any country of the world, in and to the above Patents and Inventions; 
 AND, Assignor hereby authorizes and
requests the competent authorities to grant and to issue any and all patents on the Inventions throughout the world to Assignee, its successors, or assigns, whose rights, title, and interests in such patents are the same as would have been held and
enjoyed by Assignor had this assignment, sale, and transfer not been made. 
 [Remainder of Page Left Blank] 
  

 IN WITNESS WHEREOF, the Assignor has caused this Patent Assignment to be duly executed by its officer
thereunto duly authorized as of the              day of April, 2008. 
  

			
	JNJ TECHNOLOGY HOLDINGS, LLC
		
	By:	 	 
		 	 Name: Michael Janssen
 Title: Executive
Director

  

					
	STATE OF	 	)	 	
		 	: ss.:	 	
	COUNTY OF	 	)	 	

 On the              day of
            , 200_, before me the undersigned, personally appeared
                                         
   , personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by
his signature on the instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument. 
  

	
	
	  
	Notary Public

  

 3 

			
	Acknowledgement of Assignee:
	
	BIOFORM MEDICAL, INC.
		
	By:	 	 
		 	Name: Steven L. Basta
		 	Title: Chief Executive Officer

  

 4 

					
	STATE OF	 	)	 	
		 	: ss.:	 	
	COUNTY OF	 	)	 	

 On the              day of
            , 200_, before me the undersigned, personally appeared
                                        ,
personally known to me or proved to me on the basis of satisfactory evidence to be the individual whose name is subscribed to the within instrument and acknowledged to me that he executed the same in his capacity, and that by his signature on the
instrument, the individual, or the person upon behalf of which the individual acted, executed the instrument. 
  

	
	
	  
	Notary Public

  

 5 

 EXHIBIT F 
 TERMINATION AGREEMENT 
 THIS TERMINATION AGREEMENT (the “Agreement”), is dated as of
April 29, 2008, by and among JNJ Technology Holdings, LLC, a Colorado limited liability company (“JNJ”) and Advanced Cosmetic Intervention, Inc., a Colorado corporation (“ACI”). 
 Simultaneously with the execution and delivery of this Agreement, JNJ and BioForm Medical, Inc. (“BioForm”) have entered into an Asset
Purchase Agreement (the “JNJ Purchase Agreement”), providing for, among other things, the sale of substantially all of JNJ’s business and assets. 
 In addition, simultaneously with the execution and delivery of this Agreement, ACI and BioForm have entered into an Asset Purchase Agreement (the “ACI Purchase Agreement”), providing for, among other
things, the sale of substantially all of ACI’s business and assets. 
 JNJ and ACI are parties to that certain Technology License
Agreement dated as of July 1, 2004 (the “Existing JNJ-ACI License”) and desire to terminate such agreement in connection with the completion of the JNJ Purchase Agreement and ACI Purchase Agreement. 
 NOW, THEREFORE, to induce BioForm to enter into, and in consideration of its entering into, the JNJ Purchase Agreement and ACI Purchase Agreement, the
parties hereto agree as follows: 
 1. Agreement to Terminate and Assign. JNJ and ACI hereby terminate the Existing JNJ-ACI License
effective immediately prior to the consummation of the JNJ Purchase Agreement and the ACI Purchase Agreement. Notwithstanding anything to the contrary in the Existing JNJ-ACI License, upon such termination of the Existing JNJ-ACI License, all
existing rights and obligations of JNJ and ACI pursuant to the Existing JNJ-ACI License shall be of no further force or effect and JNJ and ACI shall not have any continuing rights, obligations or liabilities of any nature thereunder. 
 2. Further Actions. JNJ and ACI hereby agree to execute and deliver such further documents, and take such further actions, as may be required to
carry out the purposes of this Agreement. 
 3. Governing Law; Counterparts. This Agreement shall be governed by the laws of the State
of Colorado and may be executed in counterparts, which, when taken together shall constitute one and the same document. 
 [Signatures to
follow] 
  

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

			
	 ADVANCED COSMETIC INTERVENTION, INC.,
 a
Colorado corporation

		
	By:	 	/s/ Paul Maroon
	Name:	 	Paul Maroon
	Title:	 	Chief Executive Officer

  

			
	 JNJ TECHNOLOGY HOLDINGS, LLC,
 a Colorado
limited liability company

		
	By:	 	/s/ Michael Janssen
	Name:	 	Michael Janssen
	Title:	 	Executive Director

 Signature Page to Termination Agreement 
  

 EXHIBIT G 
 FORM OF NON-COMPETITION WAIVER 
 FOR OB, PROSTATE SURGERY, AND RELATED APPLICATIONS 

(insert date) 
 To: 
 CEO or CFO 
 BioForm Medical, Inc. 
 1875 South Grant Street, Suite 110 
 San Mateo, CA 94103 
 From: 
 (Company Name) 
 (Address) 
 I, a duly appointed officer of (insert Company Name) (
“Requestor”), hereby agree that if Requestor engages Michael Janssen as a consultant for Requestor: 
 (1) Mr. Janssen will advise and assist
Requestor in connection with the development or commercialization of nerve ablation devices or related technology only for (insert OB, prostate surgery, or related applications) applications and will not be involved in the development or
commercialization of any such technology outside of these applications; and 
 (2) All products resulting from Mr. Janssen’s consulting activities
(each, an “Other Product”) will provide for a mutual incompatibility with products of BioForm Medical, Inc. (“BioForm”) so that: (a) the Other Product’s software is incompatible with BioForm products; (b) there is
mechanical differentiation so that the Other Product is physically incompatible with BioForm products; (c) there is a built-in electrical incompatibility so that it is impossible to utilize disposables from a BioForm product on the Other
Product or a disposable from the Other Product on a BioForm product; (d) the RF energy profile of the Other Product will produce therapeutically differentiated RF deliveries than BioForm products; (e) all disposable-based Other Products
will utilize a differentiated connector further preventing plug in or use of the Other Product with a BioForm product; and (f) the load curve of the Other Product will be different to ensure physiological and further incompatibility with
BioForm products. 
 Requestor further represents and warrants that Requestor has not entered into a consulting or other arrangement with Mr. Janssen as
of the date of this letter and will only enter into such arrangement following the receipt of the approval as described below. 
  

 The undersigned certifies that he/she is a duly appointed officer of Requestor and that this agreement is a binding
agreement of Requestor. 
  

			
	[REQUESTOR COMPANY NAME]
		
	By:	 	 
	 Name:
 Title:
	 	

 BioForm has reviewed and hereby approves the above request, solely as it relates to Michael Janssen’s
involvement with the Requestor defined above. 
  

			
	BIOFORM MEDICAL, INC.
		
	By:	 	 
	 Name:
 Title:

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