Document:

Exhibit 10.20

 

CONFIDENTIAL

 

ROYALTY AGREEMENT

 

Date:  1
November 2000 

 

PARTIES:

 

	
  AGA Medical Corporation

  	
   

  	
  (“AGA Medical”)

  
	
  682 Mendelssohn Avenue

  	
   

  	
   

  
	
  Golden Valley, MN 55427

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  And

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Curtis Amplatz

  	
   

  	
  (“Curtis” or “Curtis Amplatz”)

  
	
  1200 Juno Ave.

  	
   

  	
   

  
	
  Saint Paul, Minnesota 55116

  	
   

  	
   

  

 

RECITAL:

 

A.                         Whereas, Curtis
Amplatz is able to provide technical assistance to AGA Medical Corporation
(hereinafter “AGA”) related to the devices and methods described in U.S. Pat.
Nos. 5,725,552, 6,123,715 and/or other related devices and methods; and

 

B.                           AGA Medical desires
to acquire such technical assistance from Curtis.

 

The Parties therefore agree as follows:

 

ARTICLE 1.

 

DEFINITIONS

 

As used herein, the following words shall have the
designated meanings:

 

1.1                                 “Products”
means solely a device covered by, or manufactured in accordance with, the
method recited in one or more claims of U.S. Patent No. 6,123,715 or any
continuation, division, continuation-in-part, substitution, reissue and
reexamination thereof, and which said device is sold by AGA Medical or its
sub-licensee specifically to be used as a vascular trap, vascular plug, or
vascular graft and does not include any other devices of AGA.

 

1.2                                 “Royalty Quarter”
means a calendar quarter.

 

1.3                                 “Territory” means
the world.

 

1.4.                              “Net Sales” means
the net invoice selling price, less actual credits for returns.

 

 

 

	
   

  	
   

  	
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1

 

CONFIDENTIAL

 

ARTICLE 2.

 

IMPROVEMENTS

 

2.1                                 Curtis
Amplatz agrees for himself and for his heirs, executors, assigns and
administrators, to assign to AGA Medical without further consideration the
entire right, title and interest in any improvement, derivation or other
developments he may make or contribute to any device or method disclosed in
U.S. Patent No. 6,123,715.

 

2.2                                 Curtis
Amplatz further agrees for himself and for his heirs, executors, assigns and
administrators, to execute and deliver without further consideration any
further applications, assignments or other documents and to perform such other
lawful acts as AGA Medical, its successors and assigns may deem necessary to
fully secure its rights, title or interest in any improvements, derivations, or
other developments related to the Products.

 

ARTICLE 3.

 

TECHNICAL ASSISTANCE

 

3.1                                 Within thirty days
after the effective date of this Agreement, Curtis Amplatz shall deliver to AGA
Medical technical documentation that is reasonably available reflecting any
improvements he has made or contributed to in the Products.

 

3.2                                 Curtis Amplatz shall
provide technical assistance to AGA Medical upon request to enable AGA Medical
to manufacture and market the Products or his improvements thereto and to
prosecute and enforce any Patent Rights. AGA Medical shall pay all reasonable
travel, food and lodging expenses related to such technical assistance and
shall pay Curtis Amplatz’s normal hourly rate for providing such services.

 

ARTICLE 4.

 

ROYALTY FEES

 

4.1                                 AGA Medical agrees to
pay only the following royalties under this agreement:

 

three
percent (3%) of the Net Sales of Products sold anywhere in the Territory as
vascular traps (that are manufactured by AGA Medical or manufactured by a sub-licensee of AGA
Medical in the Territory) occurring after the vascular trap product has obtained U.S.
regulatory or CE Mark approval as a vascular trap;

 

one
percent (1%) of the Net Sales of Products sold anywhere in the Territory as
vascular plugs (that are manufactured by AGA Medical or manufactured by a
sub-licensee of AGA Medical in the Territory) occurring after the

 

	
   

  	
   

  	
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2

 

CONFIDENTIAL

 

vascular
plug product has obtained U.S. regulatory or CE Mark approval as a vascular
plug; and

 

one percent (1%) of the
Net Sales of Products sold anywhere in the Territory as vascular grafts (that are manufactured by AGA
Medical or manufactured by a sub-licensee of AGA Medical in the Territory)
occurring after the vascular graft product has obtained U.S. regulatory or CE
Mark approval as a vascular  graft.

 

4.2                                 Within  thirty (30) days
after the end of each Royalty Quarter, AGA Medical shall provide Curtis Amplatz
with a written report itemizing the number of U.S. regulatory or CE Mark
approved Products manufactured to be sold as vascular traps, vascular plugs and
vascular grafts, the Net Sales price of the U.S.  regulatory or CE Mark approved Products sold
as vascular traps, vascular plugs and vascular grafts, and a calculation of the
royalties due to Curtis Amplatz for such Royalty Quarter. Simultaneously with
making such report, AGA Medical shall pay to Curtis Amplatz the amount of
royalties then due.

 

4.3                                 AGA Medical shall
have total discretion whether to seek or maintain patent protection for the
improvements and whether to develop or market improvements to the Products.

 

4.4                                 AGA Medical or a
sublicensee of AGA Medical shall use its best efforts to obtain U.S. Regulatory
or CE Mark approval of the Products sold as a vascular graft, vascular trap, or
vascular plug. If AGA Medical or a sublicensee of AGA Medical obtains such
approval on any of the vascular graft, vascular trap, or vascular plug
products, then AGA Medical will pay a minimum royalty of $15,000.00US per year
to Curtis Amplatz for the calendar year of approval and thereafter with the
following exception: any minimum royalty owing for a calendar year shall be
calculated as the amount by which the $15,000.00US annual minimum exceeds the total royalties  paid on vascular graft, vascular trap, or vascular plug
products for that calendar year, and shall be due and payable by
January 31 of the following year. Further, no minimum royalty will be due
on any Product that has been found by a court of competent jurisdiction to
infringe the patent rights of a person or entity not a party to this agreement
and which Product AGA Medical ceases manufacturing or selling. AGA Medical
shall notify Curtis Amplatz within thirty (30) days after obtaining U.S regulatory or CE
Mark approval
of any of its Products to be sold as a vascular trap, vascular graft, or
vascular plug.

 

ARTICLE 5. 

 

TERM AND TERMINATION

 

5.1                                 Unless otherwise
terminated in accordance with the provisions of this Article, the royalty
obligations shall continue in full force for as long as the vascular graft,
vascular plug, or vascular trap is covered by, or manufactured in

 

	
   

  	
   

  	
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3

 

CONFIDENTIAL

 

accordance
with the method recited in, one or more valid and enforceable claims of a patent issuing
from or claiming priority to U.S. Patent No. 6,123,715.

 

5.2                                 In the event either
party shall breach any of the material terms, conditions or agreements
contained in this Agreement, then the other party may sue for breach of this Agreement,
at its option and without prejudice to any of its other legal and equitable
rights and remedies, by giving the breaching party thirty (30) days notice in
writing, particularly specifying the breach. Such notice shall not be effective
if the other party  cures the specified
breach within said thirty (30) day period, or in the case of breaches not
reasonably curable within said thirty (30) days, if said party commences the
cure thereof within said thirty (30) days and diligently thereafter accomplishes
such cure.

 

ARTICLE 6.

 

MISCELLANEOUS PROVISIONS

 

6.1                                 Confidentiality.  The parties acknowledge  that certain information Curtis Amplatz may
learn from AGA Medical is proprietary and confidential. Curtis Amplatz agrees,
therefore, to make all reasonable efforts to preserve the confidentiality of
such information. Notwithstanding the foregoing, a party may disclose such
information: A) If that party can show the particular item of information is
generally available to the public or becomes generally available to the public
through no act or failure to act of said party; B) If disclosure is required by
any applicable government agency, regulation, or statute; or C) If that party
can show it possessed such information prior to disclose thereof to said party by
the other.

 

6.2                                 Warranty.  Curtis Amplatz represents and warrants to AGA
Medical that he owns all of the rights assigned hereunder and has the right to
grant such assignment; and that he is not aware that the Products infringe any
patent of any third party.  Curtis Amplatz
further warrants to AGA Medical that  the companies by which he is employed, have
no right, title or interest in or to the Invention.

 

6.3                                 Successors and
Assigns.  This Agreement shall be binding upon and
inure to the benefit of the parties to this agreement and their successors or
assign, provided that, except as otherwise provided herein, the rights and
obligations of either party under this Agreement may not be assigned without the written consent of
the other party, the consent of which shall not be unreasonably withheld. AGA Medical, however, may
assign its rights and obligations to an entity succeeding to substantially all
of its assets and business to which this Agreement pertains, except as
otherwise provided herein.

 

6.4                                 Lawsuits.  AGA Medical Corporation agrees to carry
adequate product liability insurance for the commercial sale of the  Products.
Furthermore, AGA Medical agrees to defend all lawsuits brought against Curtis
Amplatz,

 

	
   

  	
   

  	
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4

 

CONFIDENTIAL

 

his
successors, or assigns in connection with any past or future authorized
clinical evaluation or commercial sale of the Products.

 

The
parties to this agreement acknowledge that Curtis Amplatz is a named licensor
in a License Agreement between Microvena Corporation and Frank Kotula, Kurt
Amplatz, and Curtis Amplatz dated November 7, 1994 and executed by Curtis
Amplatz on November 7, 1994. On or before April 26, 2000 written
notice of termination of the License Agreement with Microvena Corporation was
properly given by all of the named licensors in accordance with the provisions
of the agreement. Curtis Amplatz is not aware of any information that would
indicate or serve as grounds for a reasonable assertion that the License
Agreement has not been properly terminated. AGA Medical agrees to defend all
lawsuits and claims brought against Curtis Amplatz his successors or assigns by
Microvena Corporation alleging Curtis Amplatz breached, or otherwise asserting
rights under, the License Agreement dated November 7, 1994 between
Microvena Corporation and Frank Kotula, Kurt Amplatz, and Curtis Amplatz, and
to indemnify and hold harmless Curtis Amplatz with respect to any damages
awarded by judgment, court order, or settlement as a result of any such
lawsuits or claims.

 

6.5                                 Miscellaneous. All of the representations and warranties made  in
this Agreement and all terms and provisions hereof intended to be observed and
performed by the parties after the termination hereof, including the
obligations of confidentiality, shall survive such termination and continue
thereafter in full force and effect. This Agreement constitutes the entire
Agreement of the parties with respect to the subject matter described in this
Agreement and shall supersede all previous negotiations, commitments or
writings with respect to such subject matter. This Agreement does not supercede
or modify the prior recorded Assignment executed by Curtis Amplatz on
May 8, 1996 and recorded in the U.S. Patent and Trademark Office at reel
7996, frame 0869, or the prior royalty agreement dated April 22, 1996 and
executed by Curtis Amplatz on May 8, 1996, or the Quit Claim Assignment
executed by Curtis Amplatz contemporaneous herewith. This Agreement shall be
governed by, and construed in accordance with, the law of the State of
Minnesota (other than its law with respect to conflicts of laws), including all
matters of construction, validity and performance. Nothing in this Agreement,
express or implied, is intended to confer on any person other than the parties
to this Agreement or their respective successors or assigns, any rights,
remedies, obligations or liabilities under or by reason of this Agreement. The invalidity
of any portion hereof shall not affect the validity, force or effect of the
remaining portions hereof. Each party agrees to execute and deliver without
further consideration any further applications, licenses, assignments or other
documents, and to perform such other lawful acts as the other party may
reasonably require to fully secure and/or evidence the rights or interests
herein.

 

	
   

  	
   

  	
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5

 

CONFIDENTIAL

 

IN
WITNESS WHEREOF, each of the parties have caused this Agreement to be executed
in the manner appropriate to each, effective as of the date first above written.

 

 

	
   

  	
   

  	
   

  	
   

  	
  CURTIS AMPLATZ

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
  11/
  22, 2000

  	
  By

  	
  /s/ Curtis Amplatz

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  AGA MEDICAL CORPORATION,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
  11/29,
  2000

  	
  By

  	
  [ILLEGIBLE]

  
	
   

  	
   

  	
   

  	
  Its:

  	
  Executive Vice President

  
						

 

 

	
   

  	
   

  	
   

  	
   

  	
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6Exhibit 10.21

 

CONSENT TO ASSIGNMENT OF ROYALTY AGREEMENTS

 

WHEREAS, AGA Medical Corporation (“AGA”) and Curtis Amplatz, (“C. Amplatz”), a resident of
the State of Nevada, are parties to a Royalty Agreement, dated as of April 22,
1996 (a copy of which is attached hereto as Exhibit A) and a Royalty
Agreement, dated as of November 22, 2000 (a copy of which is attached
hereto as Exhibit B). Both
agreements are collectively referred to herein as the “Agreements.”

 

WHEREAS, C. Amplatz’s rights and obligations
under the agreements may not be assigned without the written consent of AGA.

 

WHEREAS, C. Amplatz desires to assign his
right to receive royalty payments pursuant to Section 4.1 of each of the
Agreements and Section 4.4 of the November 22, 2000 Agreement to Carina
Royalty, LLC (“Carina”), a Minnesota limited liability company.

 

NOW, THEREFORE, in consideration of the
premises and the mutual agreements, representations, warranties, undertakings,
covenants and conditions contained in the Agreements and this Consent, and
intending to be legally bound hereby, AGA, C. Amplatz and Carina (collectively,
the “Parties”) agree as follows:

 

1.             Consent. AGA hereby consents to the assignment by C.
Amplatz to Carina of his rights to receive royalty payments pursuant to Section 4.1
of each of the Agreements and under Section 4.4 of the November 22,
2000 Agreement. In all other respects, C. Amplatz retains and does not assign
his rights under the Agreement (e.g., Carina shall have no reversionary
interest in or to any of the patents covered by the Agreements). C. Amplatz
neither delegates to nor does Carina assume C. Amplatz’s obligations under the
Agreements.

 

2.             Payments. AGA shall henceforth make royalty payments
by sending payments to Carina at the address listed in the Notice provision of
this Consent.

 

3.             Notices. All notices under this Consent shall be in
writing. Any notice or communication shall be deemed duly given: (i) when
delivered personally to the recipient, or (ii) one business day following
the date sent when sent by overnight delivery, at the following addresses:

 

	
  If to C. Amplatz:

  	
   

  	
  Curtis Amplatz

  
	
   

  	
   

  	
  298 Genoa Aspen Court

  
	
   

  	
   

  	
  PO Box 651

  
	
   

  	
   

  	
  Genoa, NV 89411

  
	
   

  	
   

  	
   

  
	
  If to AGA:

  	
   

  	
  AGA Medical Corporation

  
	
   

  	
   

  	
  Peter Rother, General Counsel

  
	
   

  	
   

  	
  5050 Nathan Lane North

  
	
   

  	
   

  	
  Plymouth, MN 55442

  
	
   

  	
   

  	
  Tel: (763) 513-9227

  

 

 

	
  If to Carina:

  	
   

  	
  Carina Royalty, LLC

  
	
   

  	
   

  	
  c/o Curtis Amplatz

  
	
   

  	
   

  	
  298 Genoa Aspen Court

  
	
   

  	
   

  	
  PO Box 651

  
	
   

  	
   

  	
  Genoa, NV 89411

  

 

Any Party may change the address to which
notices under this Consent are to be delivered by sending a notice to the other
Parties in the manner set forth by this section.

 

4.             Reports. C. Amplatz may direct that the written royalty reports as would
otherwise be delivered to him pursuant to the Agreements instead be sent to
Carina at the address listed in the Notice provision of this Consent.

 

5.             Cooperation. Carina shall provide assistance to AGA in any actions brought to
enforce any of the patent rights covered by the Agreements. Carina shall be
paid its reasonable travel, food, lodging and out-of-pocket expenses related to
such assistance.

 

6.             Confidentiality. The Parties agree that this Consent, the
Agreements and the non-public information they share with one another related
to these agreements shall be kept confidential, and they shall make all reasonable
efforts to preserve the confidentiality of such information. Information may be
disclosed as required by any applicable government agency, regulation or
statute, as needed to prosecute and enforce patent rights and as necessary to
obtain and maintain regulatory approval for Products.

 

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

 

IN WITNESS WHEREOF, the undersigned Parties
have caused this Consent to be executed by their duly authorized
representatives.

 

	
   

  	
  AGA MEDICAL CORPORATION

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Peter Rother

  
	
   

  	
  Its:

  	
  General Counsel

  
	
   

  	
  Date:

  	
  01-05-07

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  CURTIS AMPLATZ

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Curtis Amplatz

  
	
   

  	
  Date:

  	
  12/22/06

  
				

 

 

	
   

  	
  CARINA ROYALTY, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Curtis Amplatz

  
	
   

  	
  Its:

  	
  General Manager

  
	
   

  	
  Date:

  	
  12/22/06

  

 

 

EXHIBIT A

 

ROYALTY AGREEMENT

 

	
  DATE:

  	
  22 April, 1996

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PARTIES:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  AGA Medical Corporation

  	
   

  	
  (“AGA Medical”)

  
	
  682 Mendelssohn Avenue

  	
   

  	
   

  
	
  Golden Valley, MN 55427

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  and

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Curtis Amplatz

  	
   

  	
   

  
	
  546 N. Lexington Parkway

  	
   

  	
   

  
	
  Saint Paul, MN 55104

  	
   

  	
  (The “Inventors”)

  
	
   

  	
   

  	
   

  
	
  Frank Kotula

  	
   

  	
   

  
	
  15345 70th Place

  	
   

  	
   

  
	
  Maple Grove, MN 55369

  	
   

  	
   

  

 

RECITAL:

 

A.                                   Inventors have
developed know-how and have acquired patent rights in certain technology
relating to a Atrial Septal Defect (ASD) and a Patent Ductus Arteriosus (PDA)
Device, and desire to assign all such know-how and patent rights to AGA Medical
to exploit the technology, as hereafter described.

B                                        AGA Medical desires
to acquire such technology from Inventors. 

 

The Parties therefore agree as follows:

ARTICLE 1.

 

DEFINITIONS

 

As used herein, the following words shall has the designated meanings:

 

1.1                                 “Products”
means any product covered the claims of the Patent Rights.

 

1.2                                 “Patent
Rights” means United States Letters Patent
No.               ,
issued                 ,
entitled “PERCUTANEOUS CATHETER DIRECTED INTRAVASCULAR
OCCLUSION DEVICES” and European Patent Application
No.             ;
together with any U.S. or foreign patents which may issue based thereon or upon
applications claming priority therefrom.

 

1.3                                 “Know-How”
means Inventors’ know-how, trade secrets, and other confidential information
relating to the Amplatz Atrial Septal Defect (ASD) and Patent Ductus Arteriosus (PDA) Devices;
existing as of the effective date of this Agreement.

 

1.4                                 “Royalty
Year” means a calendar year except that the first Royalty Year shall be that
period of time between the effective date of this Agreement and December 31 of
that calendar year.

 

1.6                                 “Territory”
means the world.

INVENTORS INITIALS: C/A/   

    /   /    

 

1

 

1.6.                              “Net
Sales” means AGA Medical’s gross receipts from sales of Products, less actual
transportation costs, taxes, and credits for returns

 

1.7.                              “Invention”
means the Know-How, the Patent Rights, and any non-confidential Information
relating to the ASD and PDA Devices.  In
Which the Inventors may have proprietary rights. 

 

ARTICLE 2.

 

ASSIGNMENT

 

2.1.                              Inventors
agree to assign, and hereby to assign, to AGA Medical, its successors, the
Invention, including without limitation the entire right, title and interest to
the Know-How; the entire right, title and interest to the Patent Rights; and
the right to apply for Letters Patents under such Patent Rights in foreign
countries in AGA Medical’s own nature and to claim any priority rights to which
any U.S. or foreign applications are entitled under International conventions,
treaties or otherwise.

 

2.2.                              Inventors
further agree for themselves and for their heirs, executors and administrators,
to execute and deliver without further consideration any further applications,
assignments or other documents and to perform such other lawful acts as AGA
Medical, its successors and assignees may deem necessary to fully secure its
rights, title or interest as outlined herein.

 

ARTICLE 3.

 

TECHNICAL ASSISTANCE

 

3.1.                              Within
thirty days after the later of the effective date of this Agreement, inventors
shall deliver to AGA Medical documentation which is reasonably available
reflecting the Know-How.

 

3.2.                              Inventors
shall provide technical assistance to AGA Medical upon request to enable AGA
Medical to manufacture and market the Products and to prosecute and enforce the
Patent Rights. AGA Medical shall pay all reasonable travel food and logging
expenses related to such technical assistance and shall pay inventors, normal
hourly rate for providing such services.

 

ARTICLE 4.

 

ASSIGNMENT FEES

 

4.1.                              AGA
Medical shall pay each Inventor a royalty of 3% of AGA Medical’s Net Sales of
Products in the Territory.

 

4.2.                              No
later than February 15 following the end of each Royalty Year hereunder, AGA
Medical shall provide inventors with a written report itemizing the number of
Products manufactured, the Net Sales price of the Products and a calculation of
the royalties due to inventors for such Royalty Year. Simultaneously with
making such report, AGA Medical shall pay to inventors the amount of royalties
then due.

 

4.3.                              AGA
Medical shall have total discretion whether to seek or maintain patent
protection for the Know-How or under the Patent Rights and whether to develop
or market the Products. If AGA Medical has not sold any Products within three
(3) years from the effective date of this Agreement, inventors may make a
written request to AGA Medical to assign the invention back to the inventor. If
AGA Medical has not sold any Products within one (1) year from such request
inventors may terminate this Agreement by written notice to AGA Medical signed
by all of the inventors. If inventors shall rightfully terminate this Agreement
under section 5.2, AGA Medical shall assign the Patent Rights to inventors upon
the inventors’ payment to AGA Medical of any government fees or attorneys’
fees, for securing maintaining and enforcing the Patent.

 

INVENTORS INITIALS: C/A/    

 

2

 

ARTICLE 5.

 

TERM AND TERMINATION

 

5.1.                              Unless
otherwise terminated in accordance with the provisions of this Article 5 or
Section 4.3, this Agreement shall continue in full force and effect for the
commercial life of all products covered under this agreement.

 

5.2.                              In
the event either party shall breach any of the material terms, conditions or
Agreements contained in this Agreement, then the other party may terminate this
Agreement, at its option and without prejudice to any of its other legal and
equitable rights and remedies, by giving the breaching party thirty (30) days’
notice in writing, particularly specifying the breach. Such notice of
termination shall not be effective if the other party cures the specified
breach within said thirty (30) day period, or in the case of breaches not
reasonably curable within said thirty (30) days, if said party commences the
cure thereof within said thirty (30) days and diligently thereafter prosecutes
such cure.

 

5.3.                              Upon
termination of this Agreement pursuant to section 5.2, AGA Medical shall cease
production of any Products. AGA Medical shall be permitted to sell its inventory
of Products, and shall provide inventors with a terminal royalty report and
payment within 30 days after the last such sale of Products.

 

ARTICLE 6.

 

MISCELLANEOUS PROVISIONS

 

6.1.                              Confidentiality.  The parties acknowledge that certain information
inventors may learn from AGA Medical is proprietary and confidential. Inventors
agree, therefore, to make all reasonable efforts to preserve the confidentiality
of such information. Notwithstanding the foregoing, a party may disclose such
information; A) If that party can show the particular item of information is
generally available to the public or becomes generally available to the public
through no act or failure to act of said party; B) If disclosure is required by
any applicable government agency, regulation, or statute; or C) If that party
can show it possessed such information prior to disclose thereof to said party
by the other.

 

6.2.                              Trademarks.  Inventors also grant AGA Medical the exclusive
right, but not the obligation, to use one or all of the inventors, names in its
name or trademark for any Products and to use one or all of the inventors’
names in connection with the advertising and marketing of Products. Nothing
herein shall be construed to prevent inventors from allowing their respective
names to be used in connection with any products or technology that are not
competitive with the Products. Inventors further agree that upon termination of
this Agreement, inventors will refrain from using or authorizing another to use
their respective names in connection with commercialization of the Products or
any products competitive with the Products for a period of one year.

 

6.3.                              Warranty.  Inventors,
individually and collectively, represent and warrant to AGA Medical that they
jointly own all of the rights assigned hereunder and have the right to grant
such assignment; and that they are not aware that the Products infringe any
patent of any third party. Inventors further warrant to AGA Medical that the
companies by which they are employed, have no right, title or interest in or to
the invention.

 

6.4.                              Right
of First Refusal.  During the term of this Agreement and for one
year thereafter, inventors shall not license, assign or otherwise transfer to
any third party any right to use or commercially distribute any invention or
product designed or developed by one or all of them which is related to the
invention assigned herein without first affording to AGA Medical an opportunity
to license or purchase such an invention or products on terms no less favorable
than are extended by one or both of the inventor to the third party.

 

INVENTORS INITIALS: C/A/   

    /   /    

 

3

 

6.5.                              Successors
and Assigns.  This Agreement shall be
binding upon and insure to the benefit of the parties to this agreement and
their successors or assigns, provided that except as otherwise provided herein,
the rights and obligations of either party under this Agreement may not be
assigned without the written consent of the other party. Assignee however, may
assign its rights and obligations to an entity succeeding to substantially all
of its assets and business to which this Agreement pertains, except as
otherwise provided herein.

 

6.6.                              Lawsuits.
AGA Medical Corporation guarantees inventors that it will carry adequate
product liability for the commercial sale of the ASD, PDA devices.  Furthermore, AGA Medical engages to defend
all lawsuits brought against the inventors, their successors or assigns in
connection with the clinical evaluation and commercial sale of the devices
assigned herein.

 

6.6.                              Miscellaneous.
All of the representations and warranties made in this Agreement and all terms
and provisions hereof intended to be observed and performed by the parties
after the termination hereof, including the obligations of confidentially,
shall survive such termination and continue thereafter in full force and
effect.  This Agreement constitutes the
entire Agreement of the parties with respect to the subject matter described in
this Agreement and shall supersede all previous negotiations, commitments or
writings with respect to such subject matter. 
This Agreement shall be governed by, and construed in accordance with,
the law of the State of Minnesota (other than its law with respect to conflicts
of laws), including all matters of construction, validity and performance.  This Agreement shall be binding upon and
inure to the benefit of the parties to this Agreement and their successors or
assigns, provided that, except as otherwise provided herein, the rights and
obligations of either party under this Agreement may not be assigned without
the written consent of the other party. 
AGA Medical, however, may assign its rights and obligations to an entity
succeeding to substantially all of its assets and business. Nothing in this Agreement,
expressed or implied, is intended to confer on any person other than the
parties to the Agreement or their respective successors or assigns, any rights,
remedies, obligations or liabilities under or by reason of this Agreement.  The invalidity of any portion hereof shall
not affect the validity, force or effect of the remaining portions hereof.  Each party agrees to execute and deliver
without further consideration any further applications, licenses, assignments
or other documents, and to perform such other lawful acts as the other party
may reasonably require to fully secure and/or evidence the rights or interests
herein. 

 

IN WITNESS
WHEREOF, each of the parties have caused this Agreement to be executed in the
manner appropriate to each, effective as of the date first above written.

 

	
   

  	
   

  	
   

  	
   

  	
  CURTIS AMPLATZ, INVENTOR

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
  5/8, 1996

  	
   

  	
  By

  	
  /s/ Curtis Amplatz

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  FRANK KOTULA, INVENTOR

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
  5/7, 1996

  	
   

  	
  By

  	
  /s/ Frank Kotula

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  AGA
  MEDICAL CORPORATION,

  ASSIGNEE

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  KURT AMPLATZ

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
  4-27, 1996

  	
   

  	
  By

  	
  /s/ Kurt Amplatz

  
	
   

  	
   

  	
   

  	
  Its

  	
  President

  

 

INVENTORS INITIALS: C/A/   

 

4

 

A S S I G N M E N T

 

WHEREAS, we, FRANK KOTULA, KURT AMPLATZ, and
CURTIS AMPLATZ, citizens of the United States of America, and residents of
Maple Grove, Minnesota 55369, St. Paul, Minnesota 55137, and St. Paul,
Minnesota 55104, respectively, are the inventors of that certain invention
disclosed and claimed in an application for United States Letters Patent
executed by FRANK KOTULA on 5-7, 1996, and executed by KURT AMPLATZ on May
8,1996, and executed by CURTIS AMPLATZ on 5/8, 1996, and entitled “PERCUTANEOUS
CATHETER DIRECTED INTRAVASCULAR OCCLUSION DEVICES”; and

 

WHEREAS, AGA MEDICAL CORPORATION, a
corporation organized and existing under the laws of the state of Minnesota and
having its principal office located at 682 Mendelssohn Avenue, Golden Valley, Minnesota
55427, is desirous of acquiring the said invention and any and all patents of
any and all countries which may be granted on said invention.

 

NOW, THEREFORE, Be It Known that for and in
consideration of the sum of one
Dollar ($1.00) to us in hand paid by said AGA MEDICAL CORPORATION and for other
good and valuable consideration, the receipt of all of which is hereby
acknowledged, we, FRANK KOTULA, KURT AMPLATZ, and CURTIS AMPLATZ, have sold,
assigned and transferred, and do hereby sell, assign and transfer unto said AGA
MEDICAL CORPORATION the entire right, title, and interest, both legal and
equitable, in and to the said above identified invention for all countries, in
and to the same above identified application for patent, and in and to any and all
patents of any and all countries which may be granted on said invention; and
the commissioner of patents and Trademarks is hereby
authorized and requested to issue, in accordance with this Assignment, any and
all patents which may be granted on the above identified application or on the
invention therein disclosed.

 

Signed at AGA this 7th day of May,
1996.

 

	
  /s/ Frank
  Kotula 

  	
  (1)

  	
  /s/ Kurt
  Amplatz 

  	
  (2)

  
	
  Frank Kotula

  	
  Kurt Amplatz

  
	
  15345 70th
  Place

  	
  10 Evergreen
  Road

  
	
  Maple Grove,
  Minnesota 55369

  	
  St. Paul,
  Minnesota 55127

  
	
   

  	
   

  
	
  /s/ Curtis
  Amplatz 

  	
  (3)

  	
   

  
	
  Curtis
  Amplatz

  	
   

  
	
  546 North Lexington
  Parkway

  	
   

  
	
  St. Paul,
  Minnesota 55104

  	
   

  

 

1

 

EXHIBIT B

 

CONFIDENTIAL

 

ROYALTY AGREEMENT

 

Date:  1
November 2000 

 

PARTIES:

 

	
  AGA Medical Corporation

  	
   

  	
  (“AGA Medical”)

  
	
  682 Mendelssohn Avenue

  	
   

  	
   

  
	
  Golden Valley, MN 55427

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  And

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Curtis Amplatz

  	
   

  	
  (“Curtis” or “Curtis Amplatz”)

  
	
  1200 Juno Ave.

  	
   

  	
   

  
	
  Saint Paul, Minnesota 55116

  	
   

  	
   

  

 

RECITAL:

 

A.                         Whereas, Curtis
Amplatz is able to provide technical assistance to AGA Medical Corporation
(hereinafter “AGA”) related to the devices and methods described in U.S. Pat.
Nos. 5,725,552, 6,123,715 and/or other related devices and methods; and

 

B.                           AGA Medical desires
to acquire such technical assistance from Curtis.

 

The Parties therefore agree as follows:

 

ARTICLE 1.

 

DEFINITIONS

 

As used herein, the following words shall have the
designated meanings:

 

1.1                                 “Products”
means solely a device covered by, or manufactured in accordance with, the
method recited in one or more claims of U.S. Patent No. 6,123,715 or any
continuation, division, continuation-in-part, substitution, reissue and
reexamination thereof, and which said device is sold by AGA Medical or its
sub-licensee specifically to be used as a vascular trap, vascular plug, or
vascular graft and does not include any other devices of AGA.

 

1.2                                 “Royalty Quarter”
means a calendar quarter.

 

1.3                                 “Territory” means
the world.

 

1.4.                              “Net Sales” means
the net invoice selling price, less actual credits for returns.

 

 

 

	
   

  	
   

  	
  CAC 00279

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CURTIS AMPLATZ INITIALS: CA

  

 

1

 

CONFIDENTIAL

 

ARTICLE 2.

 

IMPROVEMENTS

 

2.1                                 Curtis
Amplatz agrees for himself and for his heirs, executors, assigns and
administrators, to assign to AGA Medical without further consideration the
entire right, title and interest in any improvement, derivation or other
developments he may make or contribute to any device or method disclosed in
U.S. Patent No. 6,123,715.

 

2.2                                 Curtis
Amplatz further agrees for himself and for his heirs, executors, assigns and
administrators, to execute and deliver without further consideration any
further applications, assignments or other documents and to perform such other
lawful acts as AGA Medical, its successors and assigns may deem necessary to
fully secure its rights, title or interest in any improvements, derivations, or
other developments related to the Products.

 

ARTICLE 3.

 

TECHNICAL ASSISTANCE

 

3.1                                 Within thirty days
after the effective date of this Agreement, Curtis Amplatz shall deliver to AGA
Medical technical documentation that is reasonably available reflecting any
improvements he has made or contributed to in the Products.

 

3.2                                 Curtis Amplatz shall
provide technical assistance to AGA Medical upon request to enable AGA Medical
to manufacture and market the Products or his improvements thereto and to
prosecute and enforce any Patent Rights. AGA Medical shall pay all reasonable
travel, food and lodging expenses related to such technical assistance and shall
pay Curtis Amplatz’s normal hourly rate for providing such services.

 

ARTICLE 4.

 

ROYALTY FEES

 

4.1                                 AGA Medical agrees to
pay only the following royalties under this agreement:

 

three
percent (3%) of the Net Sales of Products sold anywhere in the Territory as
vascular traps (that are manufactured by AGA Medical or manufactured by a sub-licensee of AGA
Medical in the Territory) occurring after the vascular trap product has obtained U.S.
regulatory or CE Mark approval as a vascular trap;

 

one
percent (1%) of the Net Sales of Products sold anywhere in the Territory as
vascular plugs (that are manufactured by AGA Medical or manufactured by a
sub-licensee of AGA Medical in the Territory) occurring after the

 

	
   

  	
   

  	
  CAC 00280

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CURTIS AMPLATZ INITIALS: CA

  

 

2

 

CONFIDENTIAL

 

vascular
plug product has obtained U.S. regulatory or CE Mark approval as a vascular
plug; and

 

one percent (1%) of the
Net Sales of Products sold anywhere in the Territory as vascular grafts (that are manufactured by AGA
Medical or manufactured by a sub-licensee of AGA Medical in the Territory)
occurring after the vascular graft product has obtained U.S. regulatory or CE
Mark approval as a vascular  graft.

 

4.2                                 Within  thirty (30) days
after the end of each Royalty Quarter, AGA Medical shall provide Curtis Amplatz
with a written report itemizing the number of U.S. regulatory or CE Mark
approved Products manufactured to be sold as vascular traps, vascular plugs and
vascular grafts, the Net Sales price of the U.S.  regulatory or CE Mark approved Products sold
as vascular traps, vascular plugs and vascular grafts, and a calculation of the
royalties due to Curtis Amplatz for such Royalty Quarter. Simultaneously with
making such report, AGA Medical shall pay to Curtis Amplatz the amount of
royalties then due.

 

4.3                                 AGA Medical shall
have total discretion whether to seek or maintain patent protection for the
improvements and whether to develop or market improvements to the Products.

 

4.4                                 AGA Medical or a sublicensee
of AGA Medical shall use its best efforts to obtain U.S. Regulatory or CE Mark
approval of the Products sold as a vascular graft, vascular trap, or vascular
plug. If AGA Medical or a sublicensee of AGA Medical obtains such approval on
any of the vascular graft, vascular trap, or vascular plug products, then AGA
Medical will pay a minimum royalty of $15,000.00US per year to Curtis Amplatz
for the calendar year of approval and thereafter with the following exception:
any minimum royalty owing for a calendar year shall be calculated as the amount
by which the $15,000.00US annual minimum exceeds the total royalties  paid
on vascular graft, vascular trap, or vascular plug products for that calendar
year, and shall be due and payable by January 31 of the following year.
Further, no minimum royalty will be due on any Product that has been found by a
court of competent jurisdiction to infringe the patent rights of a person or
entity not a party to this agreement and which Product AGA Medical ceases
manufacturing or selling. AGA Medical shall notify Curtis Amplatz within thirty
(30) days after obtaining U.S regulatory or CE Mark approval of any of its Products to be sold as
a vascular trap, vascular graft, or vascular plug.

 

ARTICLE 5. 

 

TERM AND TERMINATION

 

5.1                                 Unless otherwise
terminated in accordance with the provisions of this Article, the royalty
obligations shall continue in full force for as long as the vascular graft,
vascular plug, or vascular trap is covered by, or manufactured in

 

	
   

  	
   

  	
  CAC 00281

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CURTIS AMPLATZ INITIALS: CA

  

 

3

 

CONFIDENTIAL

 

accordance
with the method recited in, one or more valid and enforceable claims of a patent issuing
from or claiming priority to U.S. Patent No. 6,123,715.

 

5.2                                 In the event either
party shall breach any of the material terms, conditions or agreements
contained in this Agreement, then the other party may sue for breach of this
Agreement, at its option and without prejudice to any of its other legal and
equitable rights and remedies, by giving the breaching party thirty (30) days
notice in writing, particularly specifying the breach. Such notice shall not be
effective if the other party  cures the specified breach within said thirty
(30) day period, or in the case of breaches not reasonably curable within said
thirty (30) days, if said party commences the cure thereof within said thirty
(30) days and diligently thereafter accomplishes such cure.

 

ARTICLE 6.

 

MISCELLANEOUS PROVISIONS

 

6.1                                 Confidentiality.  The parties acknowledge  that certain information Curtis Amplatz may
learn from AGA Medical is proprietary and confidential. Curtis Amplatz agrees,
therefore, to make all reasonable efforts to preserve the confidentiality of
such information. Notwithstanding the foregoing, a party may disclose such
information: A) If that party can show the particular item of information is
generally available to the public or becomes generally available to the public
through no act or failure to act of said party; B) If disclosure is required by
any applicable government agency, regulation, or statute; or C) If that party
can show it possessed such information prior to disclose thereof to said party
by the other.

 

6.2                                 Warranty.  Curtis Amplatz represents and warrants to AGA
Medical that he owns all of the rights assigned hereunder and has the right to
grant such assignment; and that he is not aware that the Products infringe any
patent of any third party.  Curtis Amplatz
further warrants to AGA Medical that  the companies by which he is employed, have
no right, title or interest in or to the Invention.

 

6.3                                 Successors and
Assigns.  This Agreement shall be binding upon and
inure to the benefit of the parties to this agreement and their successors or
assign, provided that, except as otherwise provided herein, the rights and
obligations of either party under this Agreement may not be assigned without the written consent of
the other party, the consent of which shall not be unreasonably withheld. AGA Medical, however, may
assign its rights and obligations to an entity succeeding to substantially all
of its assets and business to which this Agreement pertains, except as
otherwise provided herein.

 

6.4                                 Lawsuits.  AGA Medical Corporation agrees to carry
adequate product liability insurance for the commercial sale of the  Products.
Furthermore, AGA Medical agrees to defend all lawsuits brought against Curtis
Amplatz,

 

	
   

  	
   

  	
  CAC 00282

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CURTIS AMPLATZ INITIALS: CA

  

 

4

 

CONFIDENTIAL

 

his
successors, or assigns in connection with any past or future authorized
clinical evaluation or commercial sale of the Products.

 

The
parties to this agreement acknowledge that Curtis Amplatz is a named licensor
in a License Agreement between Microvena Corporation and Frank Kotula, Kurt
Amplatz, and Curtis Amplatz dated November 7, 1994 and executed by Curtis
Amplatz on November 7, 1994. On or before April 26, 2000 written
notice of termination of the License Agreement with Microvena Corporation was
properly given by all of the named licensors in accordance with the provisions
of the agreement. Curtis Amplatz is not aware of any information that would
indicate or serve as grounds for a reasonable assertion that the License
Agreement has not been properly terminated. AGA Medical agrees to defend all
lawsuits and claims brought against Curtis Amplatz his successors or assigns by
Microvena Corporation alleging Curtis Amplatz breached, or otherwise asserting
rights under, the License Agreement dated November 7, 1994 between Microvena
Corporation and Frank Kotula, Kurt Amplatz, and Curtis Amplatz, and to indemnify
and hold harmless Curtis Amplatz with respect to any damages awarded by
judgment, court order, or settlement as a result of any such lawsuits or
claims.

 

6.5                                 Miscellaneous. All of the representations and warranties made  in
this Agreement and all terms and provisions hereof intended to be observed and
performed by the parties after the termination hereof, including the
obligations of confidentiality, shall survive such termination and continue
thereafter in full force and effect. This Agreement constitutes the entire
Agreement of the parties with respect to the subject matter described in this
Agreement and shall supersede all previous negotiations, commitments or
writings with respect to such subject matter. This Agreement does not supercede
or modify the prior recorded Assignment executed by Curtis Amplatz on
May 8, 1996 and recorded in the U.S. Patent and Trademark Office at reel
7996, frame 0869, or the prior royalty agreement dated April 22, 1996 and
executed by Curtis Amplatz on May 8, 1996, or the Quit Claim Assignment
executed by Curtis Amplatz contemporaneous herewith. This Agreement shall be
governed by, and construed in accordance with, the law of the State of Minnesota
(other than its law with respect to conflicts of laws), including all matters
of construction, validity and performance. Nothing in this Agreement, express
or implied, is intended to confer on any person other than the parties to this
Agreement or their respective successors or assigns, any rights, remedies,
obligations or liabilities under or by reason of this Agreement. The invalidity
of any portion hereof shall not affect the validity, force or effect of the
remaining portions hereof. Each party agrees to execute and deliver without
further consideration any further applications, licenses, assignments or other
documents, and to perform such other lawful acts as the other party may
reasonably require to fully secure and/or evidence the rights or interests
herein.

 

	
   

  	
   

  	
  CAC 00283

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  CURTIS AMPLATZ INITIALS: CA

  

 

5

 

CONFIDENTIAL

 

IN
WITNESS WHEREOF, each of the parties have caused this Agreement to be executed
in the manner appropriate to each, effective as of the date first above written.

 

 

	
   

  	
   

  	
   

  	
   

  	
  CURTIS AMPLATZ

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Dated:

  	
  11/
  22, 2000

  	
  By

  	
  /s/ Curtis Amplatz

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  AGA MEDICAL CORPORATION,

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Dated:

  	
  11/29,
  2000

  	
  By

  	
  [ILLEGIBLE]

  
	
   

  	
   

  	
   

  	
  Its:

  	
  Executive Vice President

  
						

 

 

	
   

  	
   

  	
   

  	
   

  	
  CAC 00284

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  CURTIS AMPLATZ INITIALS:   CA

  

 

6

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