Document:

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                                                                    EXHIBIT 4.02

                         REGISTRATION RIGHTS AGREEMENT

          THIS REGISTRATION RIGHTS AGREEMENT (this "Agreement") is entered into
as of December 8, 1999, by and between INTERPORE INTERNATIONAL, INC., a Delaware
corporation (the "Company"), and the persons listed on the signature page hereof
                  -------
(each a "Stockholder" and collectively, the "Stockholders").
         -----------                         ------------

                                    RECITALS

          A.  The Company and the Stockholders desire to enter into this
Agreement for the purpose of granting to the Stockholders certain rights with
respect to registering under the Securities Act of 1933, as amended, shares of
Common Stock, par value $.01 per share, of the Company (the "Common Stock")
                                                             ------------
which is held by the Stockholders and shares of Common Stock underlying warrants
to purchase Common Stock (the "Warrants") held by the Stockholders.
                               --------

          B.  The Common Stock and the Warrants are being acquired by the
Stockholders pursuant to the transactions (the "Transactions") contemplated by
                                                ------------
the Asset Purchase Agreement, dated as of December 8, 1999, by and among
Interpore Orthopaedics, Inc., Quantic Biomedical, Inc., Quantic Biomedical
Partners, John Dawdy and Andrew Hood (the "Asset Purchase Agreement").
                                           ------------------------

                                   AGREEMENT

          In consideration of the Recitals and mutual promises contained herein,
and other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, the parties, intending to be legally bound, hereby agree as
follows:

1.  Definitions.  As used in this Agreement, the following terms shall have the
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following meanings:
-------------------

          "Advice" shall have the meaning set forth in Section 4 hereof.
           ------

          "Affiliate" means, with respect to any specified person, any other
           ---------
person directly or indirectly controlling or controlled by or under direct or
indirect common control with such specified person.  For the purposes of this
definition, "control" when used with respect to any specified person, means the
power to direct the management and policies of such person, directly or
indirectly, whether through the ownership of voting securities, by contract or
otherwise; and the terms "controlling" and "controlled" have meanings
correlative to the foregoing.

          "Business Day" means any day that is not a Saturday, a Sunday or a
           ------------
legal holiday on which banking institutions in the State of New York are not
required to be open.

          "Capital Stock" means, with respect to any person, any and all shares,
           -------------
interests, participations or other equivalents (however designated) of corporate
stock issued by such person, including each class of common stock and preferred
stock of such person.
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          "Common Stock" means the Common Stock, par value $0.01 per share, of
           ------------
the Company or any other shares of capital stock or other securities of the
Company into which such shares of Common Stock shall be reclassified or changed,
including, by reason of a merger, consolidation, reorganization or
recapitalization.  If the Common Stock has been so reclassified or changed, or
if the Company pays a dividend or makes a distribution on the Common Stock in
shares of capital stock or subdivides (or combines) its outstanding shares of
Common Stock into a greater (or smaller) number of shares of Common Stock, a
share of Common Stock shall be deemed to be such number of shares of stock and
amount of other securities to which a holder of a share of Common Stock
outstanding immediately prior to such change, reclassification, exchange,
dividend, distribution, subdivision or combination would be entitled.

          "Company" shall have the meaning set forth in the heading hereof.
           -------

          "Exchange Act" means the Securities Exchange Act of 1934, as amended,
           ------------
and the rules and regulations of the SEC promulgated thereunder.

          "Hold Back Period" shall have the meaning set forth in Section 4
           ----------------
hereof.

          "Holder" means a person who owns Registrable Shares and is either (i)
           ------
a Stockholder or (ii) a Permitted Transferee.

          "Interruption Period" shall have the meaning set forth in Section 4
           -------------------
hereof.

          "Permitted Transferees" means (A) Quantic Biomedical Partners (so long
           ---------------------
as John Dawdy and Andrew Hood are the sole general partners of Quantic
Biomedical Partners at the time of such transfer), or (B) John Dawdy and Andrew
Hood in their individual capacities; provided that in each case such transferee
assumes and agrees to perform and becomes a party to this Agreement.

          "Person" means any individual, corporation, partnership, joint
           ------
venture, association, joint-stock company, trust, unincorporated organization or
government or any agency or political subdivision thereof.

          "Piggyback Registration" shall have the meaning set forth in Section 2
           ----------------------
hereof.

          "Prospectus" means the prospectus included in any Registration
           ----------
Statement (including a prospectus that discloses information previously omitted
from a prospectus filed as part of an effective registration statement in
reliance upon Rule 430A), as amended or supplemented by any prospectus
supplement, with respect to the terms of the offering of any portion of the
Registrable Shares covered by such Registration Statement and all other
amendments and supplements to such prospectus, including post-effective
amendments, and all material incorporated by reference or deemed to be
incorporated by reference in such prospectus.

          "Registrable Shares" means shares of Common Stock issued to any Holder
           ------------------
in the Transactions or pursuant to the exercise of any Warrants unless (i) they
have been effectively registered under Section 4 of the Securities Act and
disposed of pursuant to an effective Registration Statement, or (ii) all of such
Common Stock of a Holder can be freely sold and transferred without restriction
under Rule 144 or Rule 145 under the Securities Act or any

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successor rule such that, after any such transfer referred to in this clause
(ii), such securities may be freely transferred without restriction under the
Securities Act. Any Registrable Shares shall cease to be Registrable Shares
after two years from the date of issuance of such Registrable Shares.

          "Registration" means registration under the Securities Act of an
           ------------
offering of Registrable Shares pursuant to a Piggyback Registration.

          "Registration Period" means, as to any Holder, the period beginning on
           -------------------
the date hereof and ending on the date when such Holder no longer owns any
Registrable Shares.

          "Registration Statement" means any registration statement under the
           ----------------------
Securities Act of the Company that covers any of the Registrable Shares pursuant
to the provisions of this Agreement, including the related Prospectus, all
amendments and supplements to such registration statement, including pre- and
post-effective amendments, all exhibits thereto and all material incorporated by
reference or deemed to be incorporated by reference in such registration
statement.

          "SEC" means the Securities and Exchange Commission.
           ---

          "Securities Act" means the Securities Act of 1933, as amended, and the
           --------------
rules and regulations of the SEC promulgated thereunder.

          "Transactions" shall have the meaning set forth in Recital B.
           ------------

          "Underwritten Registration or Underwritten Offering" means a
           -------------------------    ---------------------
registration under the Securities Act in which securities of the Company are
sold to an underwriter for reoffering to the public.

          2.  Piggyback Registration.
              -----------------------

              (a)  Right to Piggyback.  If at any time during the Registration
                   ------------------
Period the Company proposes to file a registration statement under the
Securities Act with respect to a public offering of securities of the same type
as the Registrable Shares pursuant to a firm commitment underwritten offering
solely for cash for its own account (other than a registration statement (i) on
Form S-8 or any successor forms thereto, or (ii) filed solely in connection with
a dividend reinvestment plan or employee benefit plan of the Company or its
Affiliates) or for the account of any holder of securities of the same type as
the Registrable Shares (to the extent that the Company has the right to include
Registrable Shares in any registration statement to be filed by the Company on
behalf of such holder), then the Company shall give written notice of such
proposed filing to the Holders at least 15 days before the anticipated effective
date. Such notice shall offer the Holders the opportunity to register such
amount of Registrable Shares as they may request (a "Piggyback Registration").
                                                     ----------------------
Subject to Section 2(b) hereof, the Company shall include in each such Piggyback
Registration all Registrable Shares with respect to which the Company has
received written requests for inclusion therein within 10 days after notice has
been given to the Holders. Each Holder shall be permitted to withdraw all or any
portion of the Registrable Shares of such Holder from a Piggyback Registration
at any time prior to the effective date of such Piggyback Registration;
provided, however, that if such withdrawal occurs after the filing

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of the Registration Statement with respect to such Piggyback Registration, the
withdrawing Holders shall reimburse the Company for the portion of the
registration expenses payable with respect to the Registrable Shares so
withdrawn.

          (b)  Priority on Piggyback Registrations.  The Company shall permit
               -----------------------------------
the Holders to include all such Registrable Shares on the same terms and
conditions as any similar securities, if any, of the Company included therein.
Notwithstanding the foregoing, if the Company or the managing underwriter or
underwriters participating in such offering advise the Holders in writing that
the total amount of Registrable Shares requested to be included in such
Piggyback Registration exceeds the amount which can be sold in (or during the
time of) such offering without delaying or jeopardizing the success of the
offering (including the price per share of the securities to be sold), then the
amount of securities to be offered for the account of the Holders and other
holders of securities who have piggyback registration rights with respect
thereto shall be reduced (to zero if necessary) pro rata on the basis of the
number of Registrable Shares requested to be registered by each such Holder or
holder participating in such offering.

          (c)  Right to Abandon.  Nothing in this Section 2 shall create any
               ----------------
liability on the part of the Company to the Holders if the Company in its sole
discretion should decide not to file a registration statement proposed to be
filed pursuant to Section 2(a) hereof or to withdraw such registration statement
subsequent to its filing and prior to the later of its effectiveness or the
release of the Registrable Shares for public offering by the managing
underwriter, in the case of an underwritten public offering, regardless of any
action whatsoever that a Holder may have taken, whether as a result of the
issuance by the Company of any notice hereunder or otherwise.

          3.  Holdback Agreement.
              -------------------

     If (i) the Company shall file a registration statement with respect to
the Common Stock or similar securities or securities convertible into, or
exchangeable or exercisable for, such securities and (ii) the Company (in the
case of a nonunderwritten public offering by the Company pursuant to such
registration statement) advises the Holders in writing that a public sale or
distribution of Registrable Shares would materially adversely affect such
offering, or the managing underwriter or underwriters (in the case of an
underwritten public offering by the Company pursuant to such registration
statement) advises the Company in writing (in which case the Company shall
notify the Holders) that a public sale or distribution of Registrable Shares
would have material adverse impact on such offering, then each Holder shall, to
the extent not inconsistent with applicable law, refrain from effecting any
public sale or distribution of Registrable Shares during the 10 days prior to
the effective date of such registration statement and until the earliest of (A)
the abandonment of such offering, (B) 90 days from the effective date of such
registration statement and (C) if such offering is an underwritten offering, the
termination of any "hold back" period obtained by the underwriter or
underwriters in such offering from the Company in connection therewith (each
such period, a "Hold Back Period").
                ----------------

          4.  Registration Procedures.  In connection with the registration
              -----------------------
obligations of the Company pursuant to and in accordance with Section 2 hereof
(and subject to Section 2 hereof), the Company shall use commercially reasonable
efforts to effect such registration to permit the sale of such Registrable
Shares in accordance with the intended method or methods of

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disposition thereof, and pursuant thereto the Company shall as expeditiously as
possible (but subject to Section 2 hereof):

          (a)  At least ten (10) business days before filing a Registration
Statement or prospectus or any amendments or supplements thereto, furnish to the
Holders who are participating in such Registration Statement and the
underwriters, if any, copies of all such documents proposed to be filed, which
documents will be subject to the review of such Holders and such underwriters
(and their respective counsel);

          (b)  prepare and file with the SEC a Registration Statement for the
sale of the Registrable Shares on any form for which the Company then qualifies
or which counsel for the Company shall deem appropriate in accordance with such
Holders' intended method or methods of distribution thereof and, subject to the
Company's right to terminate or abandon a registration pursuant to Section 2(c)
hereof, use commercially reasonable efforts to cause such Registration Statement
to become effective and remain effective as provided herein;

          (c)  prepare and file with the SEC such amendments (including post-
effective amendments) to such Registration Statement, and such supplements to
the related Prospectus, as may be required by the rules, regulations or
instructions applicable to the Securities Act during the applicable period in
accordance with the intended methods of disposition specified by the Holders of
the Registrable Shares covered by such Registration Statement, and cause the
related Prospectus as so supplemented to be filed pursuant to Rule 424 under the
Securities Act;

          (d)  notify the Holders of any Registrable Shares covered by such
Registration Statement promptly and (if requested) confirm such notice in
writing, (i) when a Prospectus or any Prospectus supplement or post-effective
amendment has been filed, and, with respect to such Registration Statement or
any post-effective amendment, when the same has become effective, (ii) of any
request by the SEC for amendments or supplements to such Registration Statement
or the related Prospectus or for additional information regarding such Holders,
(iii) of the issuance by the SEC of any stop order suspending the effectiveness
of such Registration Statement or the initiation of any proceedings for that
purpose, (iv) of the receipt by the Company of any notification with respect to
the suspension of the qualification or exemption from qualification of any of
the Registrable Shares for sale in any jurisdiction or the initiation or
threatening of any proceeding for such purpose, and (v) of the happening of any
event that requires the making of any changes in such Registration Statement,
Prospectus or documents incorporated or deemed to be incorporated therein by
reference so that they will not contain any untrue statement of a material fact
or omit to state any material fact required to be stated therein or necessary to
make the statements therein, in light of the circumstances under which they were
made, not misleading;

          (e)  use commercially reasonable efforts to obtain the withdrawal of
any order suspending the effectiveness of such Registration Statement, or the
lifting of any suspension of the qualification or exemption from qualification
of any Registrable Shares for sale in any jurisdiction in the United States;

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          (f)  furnish to the Holder of any Registrable Shares covered by such
Registration Statement, each counsel for such Holders and each managing
underwriter, if any, without charge, one conformed copy of such Registration
Statement, as declared effective by the SEC, and of each post-effective
amendment thereto, in each case including financial statements and schedules and
all exhibits and reports incorporated or deemed to be incorporated therein by
reference; and deliver, without charge, such number of copies of the preliminary
prospectus, any amended preliminary prospectus, each final Prospectus and any
post-effective amendment or supplement thereto, as such Holder may reasonably
request in order to facilitate the disposition of the Registrable Shares of such
Holder covered by such Registration Statement in conformity with the
requirements of the Securities Act;

          (g)  prior to any public offering of Registrable Shares covered by
such Registration Statement, use commercially reasonable efforts to register or
qualify such Registrable Shares for offer and sale under the securities or Blue
Sky laws of such jurisdictions as the Holders of such Registrable Shares shall
reasonably request in writing; provided, however, that the Company shall in no
event be required to qualify generally to do business as a foreign corporation
or as a dealer in any jurisdiction where it is not at the time so qualified or
to execute or file a general consent to service of process in any such
jurisdiction where it has not theretofore done so or to take any action that
would subject it to general service of process or taxation in any such
jurisdiction where it is not then subject;

          (h)  upon the occurrence of any event contemplated by paragraph
4(d)(v) above, prepare a supplement or post-effective amendment to such
Registration Statement or the related Prospectus or any document incorporated or
deemed to be incorporated therein by reference and file any other required
document so that, as thereafter delivered to the purchasers of the Registrable
Shares being sold thereunder, such Prospectus will not contain an untrue
statement of a material fact or omit to state any material fact required to be
stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading;

          (i)  use commercially reasonable efforts to cause all Registrable
Shares covered by such Registration Statement to be listed on each securities
exchange or automated interdealer quotation system, if any, on which similar
securities issued by the Company are then listed or quoted;

          (j)  if such offering is an underwritten offering, make available for
inspection by any Holder of Registrable Shares included in such Registration
Statement, any underwriter participating in any offering pursuant to such
Registration Statement, and any attorney, accountant or other agent retained by
any such Holder or underwriter (collectively, the "Inspectors"), such financial
                                                   ----------
and other records and other information, pertinent corporate documents and
properties of any of the Company and its subsidiaries and affiliates
(collectively, the "Records"), as shall be reasonably necessary to enable them
                    -------
to exercise their due diligence responsibilities; provided, however, that the
Records that the Company determines, in good faith, to be confidential and which
it notifies the Inspector in writing are confidential shall not be disclosed to
any Inspector unless such Inspector signs a confidentiality agreement reasonably
satisfactory to the Company; and

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<PAGE>

          (k)  if such offering is an underwritten offering, enter into such
agreements (including an underwriting agreement in form, scope and substance as
is customary in underwritten offerings) in order to expedite or facilitate the
disposition of such Registrable Shares, and in such connection, (i) use
commercially reasonable efforts to obtain opinions of counsel to the Company and
updates thereof addressed to each selling Holder of Registrable Shares covered
by such Registration Statement and each of the underwriters as to the matters
customarily covered in opinions requested in underwritten offerings and (ii) use
commercially reasonable efforts to obtain "cold comfort" letters and updates
thereof from the independent certified public accountants of the Company (and,
if necessary, any other independent certified public accountants of any
subsidiary of the Company or of any business acquired by the Company for which
financial statements and financial data are, or are required to be, included in
the Registration Statement). The above shall be done at each closing under such
underwriting or similar agreement, or as and to the extent required thereunder.

          The Company may require each Holder of Registrable Shares covered by a
Registration Statement to furnish such information regarding such Holder and
such Holder's intended method of disposition of such Registrable Shares as it
may from time to time reasonably request in writing.  If any such information is
not furnished within a reasonable period of time after receipt of such request,
the Company may exclude such Holder's Registrable Shares from such Registration
Statement.

          Each Holder of Registrable Shares covered by a Registration Statement
agrees that, upon receipt of any notice from the Company of the happening of any
event of the kind described in Section 4(d)(ii), 4(d)(iii), 4(d)(iv) or 4(d)(v)
hereof, that such Holder shall forthwith discontinue disposition of any
Registrable Shares covered by such Registration Statement or the related
Prospectus until receipt of the copies of the supplemented or amended Prospectus
contemplated by Section 4(h) hereof, or until such Holder is advised in writing
(the "Advice") by the Company that the use of the applicable Prospectus may be
      ------
resumed, and has received copies of any amended or supplemented Prospectus or
any additional or supplemental filings which are incorporated, or deemed to be
incorporated, by reference in such Prospectus (such period during which
disposition is discontinued being an "Interruption Period") and, if requested by
                                      -------------------
the Company, the Holder shall deliver to the Company all copies then in its
possession, other than permanent file copies then in such holder's possession,
of the Prospectus covering such Registrable Shares at the time of receipt of
such request.

          Each Holder of Registrable Shares covered by a Registration Statement
further agrees not to utilize any material other than the applicable current
preliminary prospectus or Prospectus in connection with the offering such
Registrable Shares.

          5.  Registration Expenses.  Whether or not any Registration Statement
              ---------------------
is filed or becomes effective, the Company shall pay all costs, fees and
expenses incident to the Company's performance of or compliance with this
Agreement, including (i) all registration and filing fees, including NASD filing
fees, (ii) all fees and expenses of compliance with securities or Blue Sky laws,
including reasonable fees and disbursements of counsel in connection therewith,
(iii) printing expenses (including expenses of printing certificates for
Registrable Shares and of printing preliminary and final prospectuses if the
printing of prospectuses is requested by the Holders or the managing
underwriter, if any), (iv) messenger, telephone and

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delivery expenses, (v) fees and disbursements of counsel for the Company, (vi)
fees and disbursements of all independent certified public accountants of the
Company (including expense of any "cold comfort" letters required in connection
with this Agreement) and all other persons retained by the Company in connection
with this Agreement) and all other persons retained by the Company in connection
with such Registration Statement, and (vii) all other costs, fees and expenses
incident to the Company's performance or compliance with this Agreement.
Notwithstanding the foregoing, the fees and expenses of any persons retained by
any Holder, including counsel for such Holders, and any discounts, commissions
or brokers' fees or fees of similar securities industry professionals and any
transfer taxes relating to the disposition of the Registrable Shares by a
Holder, will be payable by such Holder and the Company will have no obligation
to pay any such amounts.

          6.  Underwriting Requirements. In the case of any underwritten
              -------------------------
offering pursuant to a Piggyback Registration, the Company shall select the
institution or institutions that shall manage or lead such offering.

          7.  Indemnification.
              ---------------

              (a)  Indemnification by the Company.  The Company shall, without
                   ------------------------------
limitation as to time, indemnify and hold harmless, to the full extent permitted
by law, each Holder of Registrable Shares whose Registrable Shares are covered
by a Registration Statement or Prospectus, the officers, directors and agents
and employees of each of them, each Person who controls each such Holder (within
the meaning of Section 15 of the Securities Act or Section 20 of the Exchange
Act) and the officers, directors, agents and employees of each such controlling
person, to the fullest extent lawful, from and against any and all losses,
claims, damages, liabilities, judgment, costs (including, without limitation,
costs of preparation and reasonable attorneys' fees) and expenses (collectively,
"Losses"), as incurred, arising out of or based upon any untrue or alleged
 ------
untrue statement of a material fact contained in such Registration Statement or
Prospectus or in any amendment or supplement thereto or in any preliminary
prospectus, or arising out of or based upon any omission or alleged omission of
a material fact required to be stated therein or necessary to make the
statements therein not misleading, except insofar as the same are based upon
information furnished to the Company by or on behalf of such Holder for use
therein or by any underwriter; provided, however, that the Company shall not be
liable to any such Holder to the extent that any such Losses arise out of or are
based upon an untrue statement or alleged untrue statement or omission or
alleged omission made in any preliminary prospectus if having previously been
furnished by or on behalf of the Company with copies of the Prospectus, such
Holder failed to send or deliver a copy of the Prospectus with or prior to the
delivery of written confirmation of the sale of Registrable Shares by such
Holder to the person asserting the claim from which such Losses arise; provided
further, however, that the Company shall not be liable in any such case to the
extent that any such Losses arise out of or are based upon an untrue statement
or alleged untrue statement or omission or alleged omission in the Prospectus,
if (x) such untrue statement or alleged untrue statement, omission or alleged
omission is corrected in all material respects in an amendment or supplement to
the Prospectus and (y) having previously been furnished by or on behalf of the
Company with copies of the Prospectus as so amended or supplemented, such Holder
thereafter fails to deliver such Prospectus as so amended or supplemented, prior
to or currently with the sale of Registrable Shares.

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          (b)  Indemnification by Holder of Registrable Shares.  In connection
               -----------------------------------------------
with any Registration Statement in which a Holder is participating, such Holder
shall furnish to the Company in writing such information as the Company
reasonably requests for use in connection with such Registration Statement or
the related Prospectus and agrees to indemnify, to the full extent permitted by
law, the Company, its directors, officers, agents or employees, each Person who
controls the Company (within the meaning of Section 15 of the Securities Act and
Section 20 of the Exchange Act) and the directors, officers, agents or employees
of such controlling Persons, from and against all Losses arising out of or based
upon any untrue or alleged untrue statement of a material fact contained in such
Registration Statement or the related Prospectus or any amendment or supplement
thereto, or any preliminary prospectus, or arising out of or based upon any
omission or alleged omission of a material fact required to be stated therein or
necessary to make the statements therein not misleading, if such untrue or
alleged untrue statement or omission or alleged omission is based upon any
information so furnished by or on behalf of such Holder to the Company for use
in such Registration Statement or Prospectus.

(c)  If any Person shall be entitled to indemnity hereunder (an "Indemnified
                                                                 -----------
Party"), Indemnified Party shall give prompt notice to the party from which
-----
such indemnity is sought (the "Indemnifying Party") of any claim or of the
                               ------------------
commencement of any proceeding with respect to which the Indemnified Party seeks
indemnification or contribution pursuant hereto. The Indemnifying Party shall
have the right, exercisable by giving written notice to an Indemnified Party
promptly after the receipt of written notice from such Indemnified Party of such
claim or proceeding, to assume, at the Indemnifying Party's expense, the defense
of any such claim or proceeding, with counsel reasonably satisfactory to such
Indemnified Party; provided, however, that (i) an Indemnified Party shall have
the right to employ separate counsel in any such claim or proceeding and to
participate in the defense thereof, but the fees and expenses of such counsel
shall be at the expense of such Indemnified Party unless: (1) the Indemnifying
Party agrees to pay such fees and expenses; (2) the Indemnifying Party fails
promptly to assume the defense of such claim or proceeding or fails to employ
counsel reasonably satisfactory to such Indemnified Party; or (3) the named
parties to any proceeding (including impleaded parties) include both such
Indemnified Party and the Indemnifying Party, and such Indemnified Party shall
have been advised by counsel that there may be one or more legal defenses
available to it that are inconsistent with those available to the Indemnifying
Party or that a conflict of interest is likely to exist among such Indemnified
Party and any other Indemnified Parties (in which case the Indemnifying Party
shall not have the right to assume the defense of such action on behalf of such
Indemnified Party); and (ii) subject to clause (3) above, the Indemnifying Party
shall not, in connection with any one such claim or proceeding or separate but
substantially similar or related claims or proceedings in the same jurisdiction,
arising out of the same general allegations or circumstances, be liable for the
fees and expenses of more than one firm of attorneys (together with appropriate
local counsel) at any time for all of the Indemnified Parties, or for fees and
expenses that are not reasonable. Whether or not such defense is assumed by the
Indemnifying Party, such Indemnified Party shall not be subject to any liability
for any settlement made without its consent. The Indemnifying Party shall not
consent to entry of any judgment or enter into any settlement that does not
include as an unconditional term thereof the giving by the claimant or plaintiff
to such Indemnified Party of a release, in form and substance reasonably
satisfactory to the Indemnified Party, from all liability in respect

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of such claim or litigation for which such Indemnified Party would be entitled
to indemnification hereunder.

          8.  Miscellaneous.
              -------------

          (a)  Termination.  This Agreement and the obligations of the Company
               -----------
and the Holders hereunder (other than Section 7 hereof) shall terminate on the
first date on which no Registrable Shares remain outstanding.

          (b)  Notices.  All notices, requests, demands and other communications
               -------
which are required or may be given under this Agreement shall be in writing and
shall be deemed to have been duly given when received if personally delivered;
when transmitted if transmitted by telecopy, electronic or digital transmission
method; the day after it is sent, if sent for next day delivery to a domestic
address by recognized overnight delivery service (e.g., Federal Express); and
upon receipt, if sent by certified or registered mail, return receipt requested.
In each case notice shall be sent to:

          If to Company, at:        Interpore International, Inc.
                                    181 Technology Drive
                                    Irvine, California 92618-2402
                                    Facsimile:  (949) 453-1884
                                    Attn: Richard L. Harrison

          With a copy to:           Latham & Watkins
                                    650 Town Center Drive
                                    Twentieth Floor
                                    Costa Mesa, California  92626-1925
                                    Facsimile:  (714) 755-8290
                                    Attn: Charles K. Ruck

          If to a Stockholder, at:  The address and facsimile number set forth
                                    below such Stockholder's name on the
                                    signature page hereto

          (c)  Interpretation.  When a reference is made in this Agreement to
               --------------
Sections, such reference shall be to a Section of this Agreement unless
otherwise indicated. Headings contained in this Agreement are for reference
purposes only and shall not affect in any way the meaning or interpretation of
this Agreement. Whenever the word "include", "includes" or "including" are used
in this Agreement, they shall be deemed to be followed by the words "without
limitation". This Agreement shall not be construed for or against either party
by reason of the authorship or alleged authorship of any provision hereof or by
reason of the status of the respective parties. All terms defined in this
Agreement in the singular shall have the same comparable meanings when used in
the plural and vice versa, unless otherwise specified.

          (d)  Entire Agreement; No Third-Party Beneficiaries.  This Agreement
               ----------------------------------------------
constitutes the entire agreement and supersedes all prior agreements and
understandings, both written and oral, among the parties with respect to the
subject matter hereof and is not intended to confer upon any person other than
the parties hereto any rights or remedies hereunder.

                                       10
<PAGE>

          (e)  Assignment.  Neither this Agreement nor any of the rights,
               ----------
interests, or obligations hereunder shall be assigned (whether by operation of
law or otherwise) by any Holder without the consent of the Company, or by the
Company without the consent of Holders of at least a majority in number of the
Registrable Shares then outstanding provided that any Holder can assign its
rights hereunder to a Permitted Transferee without the consent of the Company.
Subject to the preceding sentence, this Agreement will be binding upon, inure to
the benefit of and be enforceable by the parties and their respective successors
and assigns. In no event shall any transferee of Common Stock be entitled,
solely as a result of such transfer, to any of the benefits of this Agreement or
to enforce the same.

          (f)  Governing Law.  This Agreement shall be construed, interpreted
               -------------
and the rights of the parties determined in accordance with the laws of the
State of Delaware (without reference to the choice of law provisions), except
with respect to matters of law concerning the internal corporate affairs of any
corporate entity which is a party to or the subject of this Agreement, and as to
those matters the law of the jurisdiction under which the respective entity
derives its powers shall govern.

          (g)  Severability.  Each party agrees that, should any court or other
               ------------
competent authority hold any provision of this Agreement or part hereof to be
null, void or unenforceable, or order any party to take any action inconsistent
herewith or not to take an action consistent herewith or required hereby, the
validity, legality and enforceability of the remaining provisions and
obligations contained or set forth herein shall not in any way be affected or
impaired thereby.

          (h)  Cumulative Remedies.  All rights and remedies of either party
               -------------------
hereto are cumulative of each other and of every other right or remedy such
party may otherwise have at law or in equity, and the exercise of one or more
rights or remedies shall not prejudice or impair the concurrent or subsequent
exercise of other rights or remedies.

          (i)  Counterparts.  This Agreement may be executed in two or more
               ------------
counterparts, all of which shall be considered one and the same instrument and
shall become effective when executed and delivered by each of the parties.

          (j)  Amendments and Waivers.  Except as otherwise provided herein, the
               ----------------------
provisions of this Agreement may not be amended, modified or supplemented, and
waivers or consents to departures from the provisions hereof may not be given,
unless the Company has obtained the written consent of Holders of at least a
majority in number of the Registrable Shares then outstanding.

                           (Signature Page Follows)

                                       11
<PAGE>

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

                                 INTERPORE INTERNATIONAL, INC.

                                 By:
                                    ---------------------------------------
                                    Richard L. Harrison
                                    Senior Vice President, Chief Financial
                                    Officer and Secretary

                                 STOCKHOLDERS

                                    ---------------------------------------
                                    JOHN A. DAWDY

                                    Address:   810 E. Street
                                               San Rafael, California 94901
                                    Fax No.:   _________________

                                    ----------------------------------------
                                    ANDREW G. HOOD

                                    Address:   761 San Carlos Avenue
                                               Mountain View, California 94043
                                    Fax No.:   _________________

                                       12<PAGE>

                                                                   EXHIBIT 10.22

                           ASSET PURCHASE AGREEMENT

                                     AMONG

             INTERPORE ORTHOPAEDICS, INC., a Delaware corporation,

              QUANTIC BIOMEDICAL, INC., a California corporation,

        QUANTIC BIOMEDICAL PARTNERS, a California general partnership,

                                JOHN A. DAWDY,

                                      AND

                                ANDREW G. HOOD

                               December 8, 1999
<PAGE>

                               TABLE OF CONTENTS
                               -----------------

1.   Definitions...........................................................1

2.   Basic Transaction.....................................................4
     (a)      Purchase and Sale of Assets..................................4
     (b)      No Liabilities...............................................4
     (c)      Purchase Price...............................................4
     (d)      The Closing..................................................5
     (e)      Deliveries at the Closing....................................5

3.   Representations and Warranties of the Sellers and Principals..........6
     (a)      Organization of the Sellers..................................6
     (b)      Authorization of Transaction.................................6
     (c)      Noncontravention.............................................6
     (d)      Brokers' Fees................................................7
     (e)      Title to Assets..............................................7
     (f)      Intellectual Property........................................7
     (g)      Product Liability............................................9
     (h)      Disclosure...................................................9
     (i)      Investment...................................................9

4.   Representations and Warranties of the Buyer..........................10
     (a)      Organization of the Buyer...................................10
     (b)      Parent Documents............................................10
     (c)      Issuance of Parent Stock....................................10
     (d)      Authorization of Transaction................................10
     (e)      Noncontravention............................................10
     (f)      Brokers' Fees...............................................11

5.   Covenants After the Closing Date.....................................11
     (a)      Full Access.................................................11
     (b)      Further Assurances..........................................11
     (c)      Litigation Support..........................................11
     (d)      Confidentiality.............................................11
     (e)      Covenant Not to Compete.....................................12
     (f)      Sales Tax...................................................12

6.   Remedies for Breaches of this Agreement..............................12
     (a)      Survival of Representations and Warranties..................12
     (b)      Indemnification Provisions for Benefit of the Buyer.........12
     (c)      Indemnification Provisions for Benefit of the Sellers and
              Principals..................................................14
     (d)      Matters Involving Third Parties.............................14
     (e)      Other Indemnification Provisions............................15
     (f)      Optional Recovery Methods...................................15

                                       i
<PAGE>

7.   Miscellaneous........................................................16
     (a)      No Third-Party Beneficiaries................................16
     (b)      Entire Agreement............................................16
     (c)      Succession and Assignment...................................16
     (d)      Counterparts................................................16
     (e)      Headings....................................................16
     (f)      Notices.....................................................16
     (g)      Governing Law...............................................17
     (h)      Waivers.....................................................17
     (i)      Severability................................................17
     (j)      Expenses....................................................17
     (k)      Construction................................................17
     (l)      Incorporation of Exhibits and Schedules.....................18
     (m)      Submission to Jurisdiction..................................18

Exhibit A -- Quantic Termination Agreement
Exhibit B -- Registration Rights Agreement
Exhibit C -- Royalty Agreement
Exhibit D -- Stock Option Agreement
Exhibit E -- Termination Agreement
Disclosure Schedule -- Exceptions to Representations and Warranties
Schedule A -- Items Not Included in Acquired Assets
Schedule B -- Shares held by Principals

                                      ii
<PAGE>

                            ASSET PURCHASE AGREEMENT

          THIS ASSET PURCHASE AGREEMENT (this "Agreement") is entered into as of
                                              -----------
December 8, 1999, by and among Interpore Orthopaedics, Inc. a Delaware
corporation (the "Buyer"), Quantic Biomedical, Inc., a California corporation
                 -------
("QBI"), Quantic Biomedical Partners, a California general partnership ("QBP")
------
(QBI and QBP, collectively the "Sellers"), John A. Dawdy ("Dawdy") and Andrew G.
                                -------
Hood ("Hood") (Dawdy and Hood, collectively the "Principals").  The Buyer, the
                                                ------------
Sellers and the Principals may be referred to herein individually as a "Party,"
                                                                       --------
and collectively as the "Parties."
                        ----------

                                    RECITALS

          A.  The Buyer desires to purchase from the Sellers, and the Sellers
desire to sell to the Buyer, substantially all of the Sellers' assets (as
described more thoroughly herein) for a combination of cash, stock in Interpore
International, Inc., a Delaware corporation and parent corporation of the Buyer
("Parent") and options to acquire additional stock in Parent.

          B.  In connection with its purchase hereunder, the Buyer desires to
obtain certain representations, warranties and indemnities from both the Sellers
and the Principals.

          C.  The Buyer, the Sellers and the Principals agree to consummate this
transaction pursuant to the terms and conditions set forth herein.

                                   AGREEMENT

          NOW, THEREFORE, IN CONSIDERATION of the premises and the mutual
promises herein made, and in consideration of the representations, warranties,
and covenants herein contained, the Parties agree as follows.

1.  Definitions.
    ------------

           "Acquired Assets" means all right, title, and interest in and to all
          ------------------
of the Sellers' Intellectual Property, including goodwill associated therewith,
licenses and sublicenses granted and obtained with respect thereto, and rights
thereunder, remedies against infringements thereof, and rights to protection of
interests therein under the laws of all jurisdictions.

          "Adverse Consequences" means all actions, suits, proceedings,
          ----------------------
hearings, investigations, charges, complaints, claims, demands, injunctions,
judgments, orders, decrees, rulings, damages, dues, penalties, fines, costs,
amounts paid in settlement, Liabilities, obligations, taxes, liens, losses,
expenses, and fees, including court costs and attorneys' fees and expenses.

          "Affiliate" has the meaning set forth in Rule 12b-2 of the regulations
          -----------
promulgated under the Securities Exchange Act.

          "Basis" means any past or present fact, situation, circumstance,
          -------
status, condition, activity, practice, plan, occurrence, event, incident,
action, failure to act, or transaction that forms or could form the basis for
any specified consequence.

                                       1
<PAGE>

          "Buyer" has the meaning set forth in the preface above.
          -------

          "Cash" has the meaning set forth in Section 2(c).
          ------

          "Closing" has the meaning set forth in Section 2(d).
          ---------

          "Closing Date" has the meaning set forth in Section 2(d).
          --------------

          "Code" means the Internal Revenue Code of 1986, as amended.
          ------

          "Commission" means the Securities and Exchange Commission.
          ------------

          "Confidential Information" means any information concerning the
          --------------------------
business and affairs of the Sellers related to the Acquired Assets that is not
already generally available to the public, including, but not limited to,
corporate information, including contractual arrangements, plans, locations,
strategies, tactics, potential acquisitions or business combinations or joint
venture possibilities, policies and negotiations; marketing information,
including sales, purchasing and inventory plans, strategies, tactics, methods,
customers, advertising, promotion or market research data; financial
information, including operating results and statistics, cost and performance
data, projections, forecasts, investors, and holdings; and operational
information, including trade secrets, secret formulae, control and inspection
practices, accounting systems and controls, computer programs and data,
personnel lists, resumes, personal data, organizational structure and
performance evaluations.

          "Disclosure Schedule" has the meaning set forth in Section 3.
          ---------------------

          "GAAP" means United States generally accepted accounting principles as
          ------
in effect from time to time.

          "Indemnified Party" has the meaning set forth in Section 6(d).
          -------------------

          "Indemnifying Party" has the meaning set forth in Section 6(d).
          --------------------

          "Intellectual Property" means (a) all inventions (whether patentable
          -----------------------
or unpatentable and whether or not reduced to practice), all improvements
thereto, and all patents, patent applications, and patent disclosures, together
with all reissuances, continuations, continuations-in-part, revisions,
extensions, and reexaminations thereof, (b) all trademarks, service marks, trade
dress, logos, trade names, and corporate names, together with all translations,
adaptations, derivations, and combinations thereof and including all goodwill
associated therewith, and all applications, registrations, and renewals in
connection therewith, (c) all copyrightable works, all copyrights, and all
applications, registrations, and renewals in connection therewith, (d) all mask
works and all applications, registrations, and renewals in connection therewith,
(e) all trade secrets and confidential business information (including ideas,
research and development, know-how, formulas, compositions, manufacturing and
production processes and techniques, technical data, designs, drawings,
specifications, customer and supplier lists, pricing and cost information, and
business and marketing plans and proposals), (f) all computer software
(including data and related documentation), (g) all other proprietary rights,
and (h) all copies and tangible embodiments thereof (in whatever form or
medium).

                                       2
<PAGE>

          "Knowledge" means actual knowledge after reasonable investigation.
          -----------

          "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), including any liability for Taxes.

          "Market Price" means, as of any date, the average of the Quoted Prices
          --------------
of the common stock of Parent for the 15 consecutive trading days immediately
prior to the date in question.  The "Quoted Price" of the common stock of Parent
is the last reported sales price of the common stock of Parent as reported on
the NASDAQ National Market System, or if the common stock of Parent is listed on
a securities exchange, the last reported sales price of the common stock of
Parent on such exchange which shall be for consolidated trading if applicable to
such exchange, or if neither so reported or listed, the last reported bid price
of the common stock of Parent.  In the absence of one or more such quotations,
the Board of Directors of Parent shall determine the Market Price on the basis
of such quotations as it in good faith considers appropriate.

          "Ordinary Course of Business" means the ordinary course of business
          -----------------------------
consistent with past custom and practice (including with respect to quantity and
frequency).

          "Parent" has the meaning set forth in the Recitals.
          --------

          "Parent Stock" has the meaning set forth in Section 2(c).
          --------------

          "Party" has the meaning set forth in the preface hereto.
          -------

          "Person" means an individual, a partnership, a corporation, an
          --------
association, a joint stock company, a trust, a joint venture, an unincorporated
organization, or a governmental entity (or any department, agency, or political
subdivision thereof).

          "Principals" has the meaning set forth in the preface hereto.
          ------------

          "Prior Payments" has the meaning set forth in Section 2(c).
          ----------------

          "Purchase Price" has the meaning set forth in Section 2(c).
          ----------------

          "Quantic Termination Agreement" means that certain Termination
          -------------------------------
Agreement by and between QBP and QBI entered into concurrently herewith and
attached hereto as Exhibit A.

          "Registration Rights Agreement" means that certain Registration Rights
          -------------------------------
Agreement by and between Parent and QBI dated concurrently herewith and attached
hereto as Exhibit B.

          "Remaining Assets" means all assets of the Sellers except the Acquired
          ------------------
Assets.

          "Royalty Agreement" means that certain Royalty Agreement by and
          -------------------
between Buyer and QBI entered into concurrently herewith and attached hereto as
Exhibit C.

                                       3
<PAGE>

          "Securities Act" means the Securities Act of 1933, as amended.
          ----------------

          "Securities Exchange Act" means the Securities Exchange Act of 1934,
          -------------------------
as amended.

          "Security Interest" means any mortgage, pledge, lien, encumbrance,
          -------------------
charge, or other security interest, other than (a) mechanic's, materialmen's,
                                    ----------
and similar liens, (b) liens for Taxes not yet due and payable, (c) purchase
money liens and liens securing rental payments under capital lease arrangements,
and (d) other liens arising in the Ordinary Course of Business and not incurred
in connection with the borrowing of money.

          "Sellers" has the meaning set forth in the preface above.
          ---------

          "Subsidiary" means any corporation with respect to which a specified
          ------------
Person (or a Subsidiary thereof) owns a majority of the common stock or has the
power to vote or direct the voting of sufficient securities to elect a majority
of the directors.

          "Tax" means any federal, state, local, or foreign income, gross
          -----
receipts, license, payroll, employment, excise, severance, stamp, occupation,
premium, windfall profits, environmental (including taxes under Code Section
59A), customs duties, capital stock, franchise, profits, withholding, social
security (or similar), unemployment, disability, real property, personal
property, sales, use, transfer, registration, value added, alternative or add-on
minimum, estimated, or other tax of any kind whatsoever, including any interest,
penalty, or addition thereto, whether disputed or not.

          "Termination Agreement" means that certain Termination Agreement by
          -----------------------
and between Buyer and QBI dated concurrently herewith and attached hereto as
Exhibit E.

          "Third Party Claim" has the meaning set forth in Section 6(d).
          -------------------

          "Warrant Agreements" means those several Common Stock Purchase
          --------------------
Warrants granted to QBI by Parent, dated concurrently herewith.  A form of the
Warrant Agreement is attached hereto as Exhibit D.

          "Warrants" has the meaning set forth in Section 2(c).
          ----------

2.    Basic Transaction.
      ------------------

          (a)  Purchase and Sale of Assets. On and subject to the terms and
               ---------------------------
conditions of this Agreement, the Buyer hereby purchases from the Sellers, and
the Sellers hereby sell, transfer, convey, and deliver to the Buyer, all of the
Acquired Assets for the consideration specified below in this Section 2.

          (b)  No Liabilities.  Buyer is not assuming any Liabilities of
               --------------
Sellers or the Principals as part of its purchase of the Acquired Assets.

          (c)  Purchase Price.  The purchase price for the Acquired Assets
               --------------
shall be a combination of (i) $500,000 in cash, payable by wire transfer or
delivery of other immediately

                                       4
<PAGE>

available funds (the "Cash"), (ii) 100,000 shares of common stock of Parent (the
                     ------
"Parent Stock"), (iii) warrants (the "Warrants") to purchase up to 200,000
--------------
additional shares of common stock in Parent at various prices and subject to the
terms set forth in the Warrant Agreements, and (iv) all license fees paid on or
prior to the Closing Date by Parent to QBI pursuant to the Amended and Restated
License and Development Agreement, dated as of April 14, 1998, as amended,
between Parent and QBI (the "Prior Payments") (collectively, the Cash, the
                             --------------
Parent Stock, the Options and the Prior Payments, the "Purchase Price").  At
                                                       ---------------
the request of the Sellers and the Principals, the entire Purchase Price will be
(or in the case of (iv) will have been) delivered to QBI at Closing.

     (d)  The Closing.  The closing of the transactions contemplated by this
          -----------
Agreement (the "Closing") shall take place concurrently with the execution here
               ---------
of at the offices of Latham & Watkins, 650 Town Center Drive, Costa Mesa,
California 92626, commencing at 9:00 a.m. local time on the date of this
Agreement (the "Closing Date").
               --------------

     (e)  Deliveries at the Closing.
          -------------------------

          (i)  At the Closing, the Sellers shall deliver to the Buyer each of
     the following:
               (A)  duly executed assignment documents (including Intellectual
     Property transfer documents) necessary to transfer and convey ownership of
     the Acquired Assets to the Buyer;
               (B)  such other instruments of sale, transfer, conveyance and
     assignment as Buyer and its counsel may request;
               (C)  the Termination Agreement;
               (D)  the Royalty Agreement;
               (E)  the Quantic Termination Agreement;
               (F)  an opinion from Sellers' counsel in form and substance
     satisfactory to Buyer, addressed to Buyer and dated as of the Closing
     Date; and
               (G)  a letter from Sellers in form and substance satisfactory to
     Buyer whereby Sellers consent to the representation, after the Closing
     Date, by McCutchen, Doyle, Brown & Enersen, LLP, of Buyer and any of
     Buyer's Affiliates.

          (ii) At the Closing, the Buyer shall deliver to Sellers each of the
     following:
               (A)  the Termination Agreement;

                                       5
<PAGE>

               (B)  the Royalty Agreement;
               (C)  the Registration Rights Agreement; and
               (D)  the Purchase Price.

3.   Representations and Warranties of the Sellers and Principals.  Each Seller
     ------------------------------------------------------------
and Principal represents and warrants to the Buyer that the statements contained
in this Section 3 are correct and complete as of the Closing Date, except as set
forth in the disclosure schedule accompanying this Agreement and initialed by
the Parties (the "Disclosure Schedule"). The Disclosure Schedule will be
                 ---------------------
arranged in paragraphs corresponding to the lettered and numbered paragraphs
contained in this Section 3.

     (a)  Organization of the Sellers.  QBI is a corporation duly organized,
          ---------------------------
validly existing, and in good standing under the laws of the State of
California. QBP is the sole stockholder of QBI and holds of record the number
and class of shares of QBI set forth next to its name on Schedule B. QBP is a
general partnership duly organized, validly existing and in good standing under
the laws of the State of California. Dawdy and Hood are the only general
partners of QBP. Each Principal holds the partnership ownership percentage of
QBP set forth next to his or its name on Schedule B.

     (b)  Authorization of Transaction.  Each Seller and Principal has full
          ----------------------------
power and authority (including, as applicable, full corporate or general
partnership power and authority), and has taken all action necessary, including,
as applicable, all corporate or general partnership action, to execute and
deliver this Agreement and to perform its obligations hereunder. Without
limiting the generality of the foregoing, (i) the board of directors of QBI and
the shareholder of QBI have duly authorized the execution, delivery, and
performance of this Agreement by QBI; and (ii) the partners of QBP have duly
authorized the execution, delivery and performance of this Agreement by QBP.
This Agreement constitutes the valid and legally binding obligation of the
Sellers and the Principals, enforceable in accordance with its terms and
conditions.

     (c)  Noncontravention.  Neither the execution and the delivery of this
          ----------------
Agreement, nor the consummation of the transactions contemplated hereby
(including the assignments referred to in Section 2 above), will (i) violate any
constitution, statute, regulation, rule, injunction, judgment, order, decree,
ruling, charge, or other restriction of any government, governmental agency, or
court to which any Seller or Principal is subject, any provision of the charter
or bylaws of QBI or any provision of the General Partnership Agreement of QBP or
(ii) conflict with, result in a breach of, constitute a default under, result in
the acceleration of, create in any party the right to accelerate, terminate,
modify, or cancel, or require any notice under any agreement, contract, lease,
license, instrument, or other arrangement to which any Seller or Principal is a
party or by which it is bound or to which any of its assets is subject (or
result in the imposition of any Security Interest upon any of its assets).
Except as set forth on Schedule 3(c), no Seller or Principal needs to give any
notice to, make any filing with, or obtain any authorization, consent, or
approval of any government or governmental agency in order for the Parties to
consummate the transactions contemplated by this Agreement (including the
assignments referred to in Section 2 above).

                                       6
<PAGE>

     (d)  Brokers' Fees.  No Seller or Principal has any Liability or
          -------------
obligation to pay any fees or commissions to any broker, finder, or agent with
respect to the transactions contemplated by this Agreement for which the Buyer
could become liable or obligated.

     (e)  Title to Assets.  The Sellers have good and marketable title to all
          ---------------
of the Acquired Assets, free and clear of any Security Interest or restriction
on transfer.

     (f)  Intellectual Property.
          ---------------------
          (i)  Schedule 3(f) is a true and complete list of all Intellectual
     Property owned by the Sellers. The Sellers own all right, title and
     interest in the Intellectual Property, free from any Security Interest and
     free from any requirement of any past, present or future royalty payments,
     license fees, charges or other payments, conditions or restrictions. The
     Intellectual Property comprises all of the Intellectual Property necessary
     or desirable for the operation of the business of Sellers as presently
     conducted and as presently proposed to be conducted. Each item of
     Intellectual Property owned or used by the Sellers immediately prior to the
     Closing hereunder will be owned or available for use by the Buyer on
     identical terms and conditions immediately subsequent to the Closing
     hereunder on the same terms and conditions as in effect prior to the
     Closing. Each Seller has taken all necessary and desirable action to
     maintain and protect each item of Intellectual Property that it owns or
     uses. The Principals do not, directly or indirectly, own or have any
     interest in any Intellectual Property related to the business of Sellers as
     presently conducted and as presently proposed to be conducted, other than
     by virtue of their ownership interest in Sellers.

          (ii) No Seller or Principal has interfered with, infringed upon,
     misappropriated, or otherwise come into conflict with any Intellectual
     Property rights of third parties, and none of the Principals or any of the
     shareholders, directors or officers (and employees with responsibility for
     Intellectual Property matters) of the Sellers has ever received any charge,
     complaint, claim, demand, or notice alleging any such interference,
     infringement, misappropriation, or violation (including any claim that any
     of the Sellers must license or refrain from using any Intellectual Property
     rights of any third party).  To the Knowledge of the Principals and any of
     the shareholders, directors or officers (and employees with responsibility
     for Intellectual Property matters) of the Sellers, no third party has
     interfered with, infringed upon, misappropriated, or otherwise come into
     conflict with any Intellectual Property rights of the Sellers.

          (iii)  The Sellers have delivered to the Buyer correct and complete
     copies of all patents, registrations, applications, licenses, agreements,
     and permissions (as amended to date) relating to the Intellectual Property
     and has made available to the Buyer correct and complete copies of all
     other written documentation evidencing ownership and prosecution (if
     applicable) of each such item. With respect to each item of Intellectual
     Property owned or used by each Seller:

                 (A)  such Seller possesses all right, title, and interest in
        and to the item, free and clear of any Security Interest, license, or
        other restriction;

                                       7
<PAGE>

                 (B)  the item has been duly registered with, filed in or
        issued by, as the case may be, the United States Patent and Trademark
        Office, United States Copyright Office of such other filing offices,
        domestic or foreign, and such registrations, filings, issuances and
        other actions remain in full force and effect, without challenge;

                 (C)  the item is not subject to any outstanding injunction,
        judgment, order, decree, ruling, or charge;

                 (D)  no action, suit, proceeding, hearing, investigation,
        charge, complaint, claim, or demand is pending or, to the Knowledge of
        the Principals and any of the shareholders, directors or officers (and
        employees with responsibility for Intellectual Property matters) of the
        Sellers, is threatened which challenges the legality, validity,
        enforceability, use, or ownership of the item; and

                 (E)  such Seller has never agreed to indemnify any Person for
        or against any interference, infringement, misappropriation, or other
        conflict with respect to the item.

          (iv) Section 3(f)(iv) of the Disclosure Schedule identifies each item
     of Intellectual Property that any third party owns and that any of the
     Sellers uses pursuant to license, sublicense, agreement, or permission. The
     Sellers have delivered to the Buyer correct and complete copies of all such
     licenses, sublicenses, agreements, and permissions (as amended to date).
     With respect to each item of Intellectual Property required to be
     identified in Section 3(f)(iv) of the Disclosure Schedule;

                 (A)  the license, sublicense, agreement, or permission
         covering the item is legal, valid, binding, enforceable, and in full
         force and effect;

                 (B)  the license, sublicense, agreement, or permission will
         continue to be legal, valid, binding, enforceable, and in full force
         and effect on identical terms following the consummation of the
         transactions contemplated hereby (including the assignments and
         assumptions referred to in Section 2 above);

                 (C)  no party to the license, sublicense, agreement, or
         permission is in breach or default, and no event has occurred which
         with notice or lapse of time would constitute a breach or default or
         permit termination, modification, or acceleration thereunder;

                 (D)  no party to the license, sublicense, agreement, or
         permission has repudiated any provision thereof;

                 (E)  with respect to each sublicense, the representations and
         warranties set forth in subsections (A) through (D) above are true and
         correct with respect to the underlying license;

                                       8
<PAGE>

                 (F)  the underlying item of Intellectual Property is not
         subject to any outstanding injunction, judgment, order, decree, ruling,
         or charge; and

                 (G)  no action, suit, proceeding, hearing, investigation,
         charge, complaint, claim, or demand is pending or, to the Knowledge of
         the Principals and any of the shareholders, directors or officers (and
         employees with responsibility for Intellectual Property matters) of the
         Sellers, is threatened which challenges the legality, validity, or
         enforceability of the underlying item of Intellectual Property.

          (v)  To the Knowledge of the Principals and any of the shareholders,
     directors or officers (and employees with responsibility for Intellectual
     Property matters) of the Sellers, the Sellers will not interfere with,
     infringe upon, misappropriate, or otherwise come into conflict with, any
     Intellectual Property rights of third parties as a result of the continued
     operation of their businesses as presently conducted and as presently
     proposed to be conducted.

          (vi) Except as set forth on Schedule 3(f)(vi), none of the Principals
     or any of the shareholders, directors or officers (and employees with
     responsibility for Intellectual Property matters) of the Sellers has any
     Knowledge of any new products, inventions, procedures, or methods of
     manufacturing or processing that any competitors or other third parties
     have developed which reasonably could be expected to supersede or make
     obsolete any product or process of the Sellers.

     (g)  Product Liability.  No Seller has any Liability (and there is no
          -----------------
Basis for any present or future action, suit, proceeding, hearing,
investigation, charge, complaint, claim, or demand against any of them giving
rise to any Liability) arising out of any injury to individuals or property as a
result of the ownership, possession, or use of any of the Acquired Assets.

     (h)  Disclosure.  The representations and warranties contained in this
          ----------
Section 3 do not contain any untrue statement of a fact or omit to state any
fact necessary in order to make the statements and information contained in this
Section 3 not misleading.

     (i)  Investment.  Each Seller and Principal (i) understands that the
          ----------
Parent Stock, the Warrants and the stock underlying the Warrants have not been,
and will not be, registered under the Securities Act, or under any state
securities laws, and is being offered and sold in reliance upon federal and
state exemptions for transactions not involving any public offering, (ii) is
acquiring the Parent Stock and the Warrants solely for its own account for
investment purposes, and not with a view to the distribution thereof, (iii) is a
sophisticated investor with knowledge and experience in business and financial
matters, (iv) acknowledges receipt of those reports and other documents
described in Section 4(b) concerning the Parent and has had the opportunity to
review such reports and documents and to obtain additional information as
desired in order to evaluate the merits and the risks inherent in holding the
Parent Stock, (v) has had the opportunity to ask and have answered any questions
relating to the Parent and the Parent's business in order to evaluate the merits
and risks inherent in owning Parent Stock, and (vi) is able to bear the economic
risk and lack of liquidity inherent in holding the Parent Stock. Each Seller and
Principal further acknowledges that the Parent Stock and the

                                       9
<PAGE>

Warrants will be issued to QBI, and each Seller and Principal represents that it
has been advised that since the Parent Stock, the Warrants and the stock
underlying the Warrants have not been registered under the Securities Act, the
Parent Stock, the Warrants and the stock underlying the Warrants must be held
indefinitely by QBI unless (a) the sale, transfer or other distribution of the
Parent Stock, the Warrants or the stock underlying the Warrants, as applicable,
has been registered under the Securities Act or (b) in the opinion of counsel
reasonably acceptable to the Parent, an exemption from such registration is
available with respect to the sale, transfer or other disposition of Parent
Stock or stock underlying the Warrants. Notwithstanding the foregoing, the
Parent Stock, Warrants or stock underlying the Warrants may be transferred or
distributed (1) by QBI to QBP (so long as the Principals are the sole general
partners of QBP at the time of such transfer) or (2) by QBI or QBP to one or
both of the Principals in their individual capacities, assuming in the case of
any such transfer that (x) such transfer is not deemed to be a sale under
federal or state securities laws and (y) any such transferee agrees to be bound
by the foregoing restrictions on transfer.

4.  Representations and Warranties of the Buyer.  The Buyer represents and
    -------------------------------------------
warrants to the Sellers (and to the Principals) that the statements contained in
this Section 4 are correct and complete as of the Closing Date, except as set
forth in the Disclosure Schedule. The Disclosure Schedule will be arranged in
paragraphs corresponding to the lettered and numbered paragraphs contained in
this Section 4.

     (a)  Organization of the Buyer.  The Buyer is a corporation duly
          -------------------------
organized, validly existing, and in good standing under the laws of the State of
Delaware.

     (b)  Parent Documents.  The Parent has duly filed and submitted all
          ----------------
reports required to be filed or submitted by it with the Commission under the
Securities Act and the Securities Exchange Act of 1934, as amended (the
"Exchange Act"). The Parent has delivered to the Seller copies of the most
--------------
recent annual report on Form 10-K filed by the Parent under the Exchange Act and
the most recent annual report to shareholders of the Parent and the definitive
proxy statement filed with such report, along with all quarterly reports on Form
10-Q and current reports on Form 8-K filed by the Parent since the date of such
annual report. The financial statements included in such reports have been
prepared in accordance with GAAP consistently applied throughout the periods
indicated and present fairly the consolidated financial position of the Parent
and its subsidiaries, and the consolidated results of its operations for the
periods ended, on the dates indicated.

     (c)  Issuance of Parent Stock.  The Parent Stock, when issued pursuant
          ------------------------
hereto, will be legally and validly authorized and issued, fully paid and non-
assessable, and will not have been issued in violation of the preemptive rights
of any person.

     (d)  Authorization of Transaction.  The Buyer has full power and authority
          ----------------------------
(including full corporate power and authority) to execute and deliver this
Agreement and to perform its obligations hereunder. This Agreement constitutes
the valid and legally binding obligation of the Buyer, enforceable in accordance
with its terms and conditions.

     (e)  Noncontravention.  Neither the execution and the delivery of this
          ----------------
Agreement, nor the consummation of the transactions contemplated hereby
(including the

                                       10
<PAGE>

assignments referred to in Section 2 above), will (i) violate any constitution,
statute, regulation, rule, injunction, judgment, order, decree, ruling, charge,
or other restriction of any government, governmental agency, or court to which
the Buyer is subject or any provision of Buyer's charter or bylaws or (ii)
conflict with, result in a breach of, constitute a default under, result in the
acceleration of, create in any party the right to accelerate, terminate, modify,
or cancel, or require any notice under any agreement, contract, lease, license,
instrument, or other arrangement to which the Buyer is a party or by which it is
bound or to which any of its assets is subject. The Buyer does not need to give
any notice to, make any filing with, or obtain any authorization, consent, or
approval of any government or governmental agency in order for the Parties to
consummate the transactions contemplated by this Agreement (including the
assignments referred to in Section 2 above).

     (f)  Brokers' Fees.  The Buyer has no Liability or obligation to pay any
          -------------
fees or commissions to any broker, finder, or agent with respect to the
transactions contemplated by this Agreement for which the Seller could become
liable or obligated.

5.  Covenants After the Closing Date.  The Buyer, the Seller and the
    --------------------------------
Principals, as applicable, covenant as follows for the period from and after the
Closing Date.

     (a)  Full Access.  Each Seller and each Principal, if either of the
          -----------
Sellers ceases to exist or conduct substantial business operations, will permit
representatives of the Buyer to have full access at all reasonable times, and in
a manner so as not to interfere with the normal business operations of such
Seller, to all premises, properties, personnel, books, records (including Tax
records), contracts, and documents of or pertaining to each of the Sellers.

     (b)  Further Assurances.  In case at any time after the Closing any
          ------------------
further action is necessary or desirable to carry out the purposes of this
Agreement, each of the Parties will take such further action (including the
execution and delivery of such further instruments and documents) as any other
Party reasonably may request, all at the sole cost and expense of the requesting
Party (unless the requesting Party is entitled to indemnification therefor under
Section 6(b)-6(d) below). The Sellers acknowledge and agree that from and after
the Closing the Buyer will be entitled to possession of all documents, books,
records (including Tax records), agreements, and financial data of any sort
relating to the Acquired Assets.

     (c)  Litigation Support.  In the event and for so long as Buyer actively
          ------------------
is contesting or defending against any action, suit, proceeding, hearing,
investigation, charge, complaint, claim, or demand in connection with the
Business or any transaction contemplated under this Agreement, each of the other
Parties will cooperate with the Buyer and his or its counsel in the contest or
defense, make available his or its personnel, and provide such testimony and
access to his or its books and records as shall be necessary in connection with
the contest or defense, all at the sole cost and expense of the Buyer (unless
Buyer is entitled to indemnification therefor under Sections 6(b)-6(e) below).

     (d)  Confidentiality.  Each Seller and each Principal will, and will cause
          ---------------
the officers, directors, other shareholders and employees of each Seller to,
treat and hold as such all of the Confidential Information, refrain from using
any of the Confidential Information except in connection with this Agreement,
and deliver promptly to the Buyer or destroy, at the request and

                                       11
<PAGE>

option of the Buyer, all tangible embodiments (and all copies) of the
Confidential Information which are in his or its possession. In the event that a
Seller, a Principal, or any officer, director, partner, other shareholder or
employee of a Seller, is requested or required (by oral question or request for
information or documents in any legal proceeding, interrogatory, subpoena, civil
investigative demand, or similar process) to disclose any Confidential
Information, such party will notify the Buyer promptly of the request or
requirement so that the Buyer may seek an appropriate protective order or waive
compliance with the provisions of this Section 5(d). If, in the absence of a
protective order or the receipt of a waiver hereunder, any of the Sellers, a
Principal, or any officer, director, partner, other shareholder or employee of a
Seller, is, on the advice of counsel, compelled to disclose any Confidential
Information to any tribunal or else stand liable for contempt, such person may
disclose the Confidential Information to the tribunal; provided, however, that
                                                       --------  -------
the disclosing person shall use his or its best efforts to obtain, at the
request of the Buyer, an order or other assurance that confidential treatment
will be accorded to such portion of the Confidential Information required to be
disclosed as the Buyer shall designate.

     (e)  Covenant Not to Compete.  Without the written consent of Buyer or
          -----------------------
Parent, for a period of five years from and after the Closing Date, each Seller
and each Principal will not, and will cause the officers, directors, other
shareholders and employees of the Sellers to not, engage directly or indirectly
in any business of any type relating to or involving the Acquired Assets;
provided, however, that no owner of less than 1% of the outstanding stock of any
--------  -------
publicly traded corporation shall be deemed to engage solely by reason thereof
in any of its businesses. If the final judgment of a court of competent
jurisdiction declares that any term or provision of this Section 5(e) is invalid
or unenforceable, the Parties agree that the court making the determination of
invalidity or unenforceability shall have the power to reduce the scope,
duration, or area of the term or provision, to delete specific words or phrases,
or to replace any invalid or unenforceable term or provision with a term or
provision that is valid and enforceable and that comes closest to expressing the
intention of the invalid or unenforceable term or provision, and this Agreement
shall be enforceable as so modified after the expiration of the time within
which the judgment may be appealed.

     (f)  Sales Tax.  Seller shall pay all sales and use taxes, if any,
          ---------
imposed on or in connection with the purchase, sale or transfer of the Acquired
Assets pursuant to this Agreement.

6.  Remedies for Breaches of this Agreement.
    ----------------------------------------
     (a)  Survival of Representations and Warranties.  All of the
          ------------------------------------------
representations and warranties of the Buyer, the Sellers and the Principals
contained in this Agreement shall survive the Closing (even if the damaged Party
knew or had reason to know of any misrepresentation or breach of warranty at the
time of Closing) and continue in full force and effect for a period of three
years thereafter, except for the representations and warranties set forth in
Sections 3(a), 3(b), 3(c), 3(e) and 3(i), which shall survive indefinitely.

     (b)  Indemnification Provisions for Benefit of the Buyer.
          ---------------------------------------------------
          (i) In the event a Seller breaches (or in the event any third party
     alleges facts that, if true, would mean such Seller has breached) any of
     its representations,

                                       12
<PAGE>

     warranties, or covenants contained in this Agreement, provided that the
     Buyer makes a written claim for indemnification against such Seller
     pursuant to Section 7(f) below within the survival period set forth in
     Section 6(a), then each Seller and each of the Principals agree, jointly
     and severally, to indemnify, save and hold harmless the Buyer, Parent and
     each of their respective directors, officers, employees and affiliates
     (collectively, the "Buyer Indemnitees" or, individually, a "Buyer
     Indemnitee") from and against the entirety of any Adverse Consequences the
     Buyer Indemnitees may suffer through and after the date of the claim for
     indemnification (including any Adverse Consequences the Buyer Indemnitees
     may suffer after the end of any applicable survival period) resulting from,
     arising out of, relating to, in the nature of, or caused by the breach (or
     the alleged breach).

          (ii) In the event a Principal breaches (or in the event any third
     party alleges facts that, if true, would mean such Principal has breached)
     any of his or its representations, warranties, and covenants contained in
     this Agreement, provided that the Buyer makes a written claim for
     indemnification against the breaching Principal pursuant to Section 7(f)
     below within the survival period set forth in Section 6(a), then each
     Seller and each of the Principals agree, jointly and severally, to
     indemnify, save and hold harmless the Buyer Indemnitees from and against
     the entirety of any Adverse Consequences the Buyer Indemnitees may suffer
     through and after the date of the claim for indemnification (including any
     Adverse Consequences the Buyer Indemnitees may suffer after the end of any
     applicable survival period) resulting from, arising out of, relating to, in
     the nature of, or caused by the breach (or the alleged breach).

         (iii)  In the event any third party, including without limitation,
     current or former spouses or other family members of the Principals,
     asserts any claim against any Buyer Indemnitee for any liability arising
     out of or related to the payment of the Purchase Price to Sellers or any
     payments made by Buyer pursuant to the Royalty Agreement, then each Seller
     and each of the Principals agree, jointly and severally, to indemnify, save
     and hold harmless the Buyer Indemnitees from and against the entirety of
     any Adverse Consequences the Buyer Indemnitees may suffer through and after
     the date of the claim for indemnification resulting from, arising out of,
     relating to, in the nature of, or caused by such claim. The indemnification
     obligations contained in this Section 6(b)(iii) shall survive the Closing
     indefinitely.

                                       13
<PAGE>

          (c)  Indemnification Provisions for Benefit of the Sellers and
               ---------------------------------------------------------
Principals.  In the event the Buyer breaches (or in the event any third party
----------
alleges facts that, if true, would mean the Buyer has breached) any of its
representations, warranties, and covenants contained in this Agreement, provided
that the Sellers and Principals make a written claim for indemnification against
the Buyer pursuant to Section 7(f) below within the survival period set forth in
Section 6(a), then the Buyer agrees to indemnify, save and hold harmless each
Seller and each Principal from and against the entirety of any Adverse
Consequences the Sellers and Principals may suffer through and after the date of
the claim for indemnification (including any Adverse Consequences the Sellers
and Principals may suffer after the end of any applicable survival period)
resulting from, arising out of, relating to, in the nature of, or caused by the
breach (or the alleged breach).

          (d)  Matters Involving Third Parties.
               -------------------------------

               (i)    If any third party shall notify any Party (the
     "Indemnified Party") with respect to any matter (a "Third Party Claim")
      -----------------                                  -----------------
     which may give rise to a claim for indemnification against any other Party
     (the "Indemnifying Party") under this Section 6, then the Indemnified
           ------------------
     Party shall promptly notify each Indemnifying Party thereof in writing;
     provided, however, that no delay on the part of the Indemnified Party in
     --------  -------
     notifying any Indemnifying Party shall relieve the Indemnifying Party from
     any obligation hereunder unless (and then solely to the extent) the
     Indemnifying Party thereby is prejudiced.

               (ii)   Any Indemnifying Party will have the right to defend the
     Indemnified Party against the Third Party Claim with counsel of its choice
     reasonably satisfactory to the Indemnified Party so long as (A) the
     Indemnifying Party notifies the Indemnified Party in writing within 15 days
     after the Indemnified Party has given notice of the Third Party Claim that
     the Indemnifying Party will indemnify the Indemnified Party from and
     against the entirety of any Adverse Consequences the Indemnified Party may
     suffer resulting from, arising out of, relating to, in the nature of, or
     caused by the Third Party Claim, (B) the Indemnifying Party provides the
     Indemnified Party with evidence acceptable to the Indemnified Party that
     the Indemnifying Party will have the financial resources to defend against
     the Third Party Claim and fulfill its indemnification obligations
     hereunder, (C) the Third Party Claim involves only money damages and does
     not seek an injunction or other equitable relief, (D) settlement of, or an
     adverse judgment with respect to, the Third Party Claim is not, in the good
     faith judgment of the Indemnified Party, likely to establish a precedential
     custom or practice adverse to the continuing business interests of the
     Indemnified Party, and (E) the Indemnifying Party conducts the defense of
     the Third Party Claim actively and diligently.

               (iii)  So long as the Indemnifying Party is conducting the
     defense of the Third Party Claim in accordance with Section 6(d)(ii) above,
     (A) the Indemnified Party may retain separate co-counsel at its sole cost
     and expense and participate in the defense of the Third Party Claim, (B)
     the Indemnified Party will not consent to the entry of any judgment or
     enter into any settlement with respect to the Third Party Claim without the
     prior written consent of the Indemnifying Party (not to be withheld
     unreasonably), and (C) the Indemnifying Party will not consent to the entry
     of any judgment or enter into any

                                      14
<PAGE>

     settlement with respect to the Third Party Claim without the prior written
     consent of the Indemnified Party (not to be withheld unreasonably).

               (iv)   In the event any of the conditions in Section 6(d)(ii)
     above is or becomes unsatisfied, however, (A) the Indemnified Party may
     defend against, and consent to the entry of any judgment or enter into any
     settlement with respect to, the Third Party Claim in any manner it
     reasonably may deem appropriate (and the Indemnified Party need not consult
     with, or obtain any consent from, any Indemnifying Party in connection
     therewith), (B) the Indemnifying Parties will reimburse the Indemnified
     Party promptly and periodically for the costs of defending against the
     Third Party Claim (including reasonable attorneys' fees and expenses), and
     (C) the Indemnifying Parties will remain responsible for any Adverse
     Consequences the Indemnified Party may suffer resulting from, arising out
     of, relating to, in the nature of, or caused by the Third Party Claim to
     the fullest extent provided in and Section 6(b)-6(c).

          (e)  Other Indemnification Provisions.  The foregoing indemnification
               --------------------------------
provisions are in addition to, and not in derogation of, any statutory,
equitable, or common law remedy any Party may have for breach of representation,
warranty, or covenant. Each Seller and each Principal hereby agrees that he or
it will not make any claim for indemnification against any of the Buyer and its
Subsidiaries by reason of the fact that he or it was a director, officer,
employee, or agent of any of the Sellers or was serving at the request of any
such entity as a partner, trustee, director, officer, employee, or agent of
another entity (whether such claim is for judgments, damages, penalties, fines,
costs, amounts paid in settlement, losses, expenses, or otherwise and whether
such claim is pursuant to any statute, charter document, bylaw, agreement, or
otherwise) with respect to any action, suit, proceeding, complaint, claim, or
demand brought by the Buyer against any of the Sellers (whether such action,
suit, proceeding, complaint, claim, or demand is pursuant to this Agreement,
applicable law, or otherwise).

          (f)  Optional Recovery Methods.
               -------------------------

               (i)    The Buyer shall have the option of recovering all or any
     portion of any Adverse Consequences it may suffer by notifying the Seller
     and the Principals that it is reducing the number of Warrants, which under
     the Warrant Agreements have not vested, by such amount that the value of
     the Warrants withdrawn is equivalent to the Adverse Consequences suffered
     by Buyer. For purposes of this section, the value of the Warrants withdrawn
     shall be determined as follows:

                      (A)  If the per share exercise price of a Warrant is less
          than the Market Price on the last business day prior to the delivery
          of the notice referred to in subsection (i) above, the per share value
          of such Warrant shall be equal to the difference between the Market
          Price and the exercise price of such Warrant; or

                      (B)  If the per share exercise price of a Warrant is
          greater than the Market Price on the last business day prior to the
          delivery of the notice referred to in subsection (i) above, the per
          share value of such Warrant shall be determined using the Black-
          Scholes option-pricing model.

                                      15
<PAGE>

               (ii)   The Buyer also has the option of recovering all or any
     portion of any Adverse Consequences it may suffer by holding back payments
     otherwise due and payable by the Buyer to Dawdy and Hood under the Royalty
     Agreement in an amount equal to the Adverse Consequences.

     7.  Miscellaneous.
         --------------

         (a)   No Third-Party Beneficiaries.  This Agreement shall not confer
               ----------------------------
any rights or remedies upon any Person other than the Parties and their
respective successors and permitted assigns.

         (b)   Entire Agreement.  This Agreement (including the documents
               ----------------
referred to herein) constitutes the entire agreement between the Parties and
supersedes any prior understandings, agreements, or representations by or
between the Parties, written or oral, to the extent they related in any way to
the subject matter hereof.

         (c)   Succession and Assignment.  This Agreement shall be binding upon
               -------------------------
and inure to the benefit of the Parties named herein and their respective
successors and permitted assigns. No Party may assign any of its rights,
interests, or obligations hereunder without the prior written approval of the
other Party; provided, however, that the Buyer may assign any or all of its
             --------  -------
rights and interests hereunder to one or more of its Affiliates.

         (d)   Counterparts.  This Agreement may be executed in one or more
               ------------
counterparts, each of which shall be deemed an original but all of which
together will constitute one and the same instrument.

         (e)   Headings.  The section headings contained in this Agreement are
               --------
 inserted for convenience only and shall not affect in any way the meaning or
interpretation of this Agreement.

         (f)   Notices.  All notices, requests, demands, claims, and other
               -------
communications hereunder will be in writing. Any notice, request, demand, claim,
or other communication hereunder shall be deemed duly given if (and then two
business days after) it is sent by registered or certified mail, return receipt
requested, postage prepaid, and addressed to the intended recipient as set forth
below:

         If to QBI; QBP or Dawdy:  John Dawdy
         -----------------------   810 E. Street
                                   San Rafael, California 94901

         If to QBI; QBP or Hood:   Andrew Hood
         ----------------------    761 San Carlos Avenue
                                   Mountain View, California 94043

                                      16
<PAGE>

         If to the Buyer:          Interpore Orthopaedics, Inc.
         ---------------           181 Technology Drive
                                   Irvine, California 92618-2402
                                   Facsimile:(949) 453-1884
                                   Attn:  Richard L. Harrison

         Copy to:                  Latham & Watkins
         -------                   650 Town Center Drive
                                   Twentieth Floor
                                   Costa Mesa, California 92626-1925
                                   Facsimile:  (714) 755-8290
                                   Attn:  Charles K. Ruck

Any Party may send any notice, request, demand, claim, or other communication
hereunder to the intended recipient at the address set forth above using any
other means (including personal delivery, expedited courier, messenger service,
telecopy, telex, ordinary mail, or electronic mail), but no such notice,
request, demand, claim, or other communication shall be deemed to have been duly
given unless and until it actually is received by the intended recipient.  Any
Party may change the address to which notices, requests, demands, claims, and
other communications hereunder are to be delivered by giving the other Party
notice in the manner herein set forth.

         (g)  Governing Law.  This Agreement shall be governed by and construed
              -------------
in accordance with the domestic laws of the State of California without giving
effect to any choice or conflict of law provision or rule (whether of the State
of California or any other jurisdiction) that would cause the application of the
laws of any jurisdiction other than the State of California.

         (h)  Waivers.  No waiver by any Party of any default,
              -------
misrepresentation, or breach of warranty or covenant hereunder, whether
intentional or not, shall be deemed to extend to any prior or subsequent
default, misrepresentation, or breach of warranty or covenant hereunder or
affect in any way any rights arising by virtue of any prior or subsequent such
occurrence.

         (i)  Severability.  Any term or provision of this Agreement that is
              ------------
invalid or unenforceable in any situation in any jurisdiction shall not affect
the validity or enforceability of the remaining terms and provisions hereof or
the validity or enforceability of the offending term or provision in any other
situation or in any other jurisdiction.

         (j)  Expenses.  Each of the Buyer, the Sellers and the Principals will
              --------
bear his or its own costs and expenses (including legal fees and expenses)
incurred in connection with this Agreement and the transactions contemplated
hereby. The Seller agrees that it has not paid any amount to any third party,
and will not pay any amount to any third party until after the Closing, with
respect to any of the costs and expenses of the Seller and the Principals
(including any of their legal fees and expenses) in connection with this
Agreement or any of the transactions contemplated hereby.

         (k)  Construction.  The Parties have participated jointly in the
              ------------
negotiation and drafting of this Agreement. In the event an ambiguity or
question of intent or interpretation

                                      17
<PAGE>

arises, this Agreement shall be construed as if drafted jointly by the Parties
and no presumption or burden of proof shall arise favoring or disfavoring any
Party by virtue of the authorship of any of the provisions of this Agreement.
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. The word "including" shall mean including
without limitation. Nothing in the Disclosure Schedule shall be deemed adequate
to disclose an exception to a representation or warranty made herein unless the
Disclosure Schedule identifies the exception with reasonable particularity and
describes the relevant facts in reasonable detail. Without limiting the
generality of the foregoing, 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). The Parties
intend that each representation, warranty, and covenant contained herein shall
have independent significance. If any Party has breached any representation,
warranty, or covenant contained herein in any respect, the fact that there
exists another representation, warranty, or covenant relating to the same
subject matter (regardless of the relative levels of specificity) which the
Party has not breached shall not detract from or mitigate the fact that the
Party is in breach of the first representation, warranty, or covenant.

         (l)  Incorporation of Exhibits and Schedules.  The Exhibits and
              ---------------------------------------
Schedules identified in this Agreement are incorporated herein by reference and
made a part hereof.

         (m)  Submission to Jurisdiction.  Each of the Parties submits to the
              --------------------------
jurisdiction of any state or federal court sitting in County of Orange, the
State of California, in any action or proceeding arising out of or relating to
this Agreement and agrees that all claims in respect of the action or proceeding
may be heard and determined in any such court. Each Party also agrees not to
bring any action or proceeding arising out of or relating to this Agreement in
any other court. Each of the Parties waives any defense of inconvenient forum to
the maintenance of any action or proceeding so brought and waives any bond,
surety, or other security that might be required of any other Party with respect
thereto. Any Party may make service on the other Party by sending or delivering
a copy of the process to the Party to be served at the address and in the manner
provided for the giving of notices in Section 7(f) above. Nothing in this
Section 7(m), however, shall affect the right of any Party to bring any action
or proceeding arising out of or relating to this Agreement in any other court or
to serve legal process in any other manner permitted by law or in equity. Each
Party agrees that a final judgment in any action or proceeding so brought shall
be conclusive and may be enforced by suit on the judgment or in any other manner
provided by law or in equity.

                           (Signature page follows)

                                      18
<PAGE>

          IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on
the date first above written.

INTERPORE ORTHOPAEDICS, INC., a
Delaware corporation

     By:_________________________________
           Richard L. Harrison
     Its:  Sr. Vice President and Secretary

QUANTIC BIOMEDICAL, INC., a California
corporation

     By:_________________________________

     Its:________________________________

QUANTIC BIOMEDICAL PARTNERS, a California
general partnership

     By:_________________________________

     Its:________________________________

JOHN A. DAWDY

_________________________________________

ANDREW G. HOOD

_________________________________________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00003-of-00352.parquet"}]]