Document:

exv10w2

 

Exhibit 10.2

ROBERT J. PALMISANO

CONFIDENTIALITY, NON-COMPETITION AND NON-SOLICITATION AGREEMENT

     This Confidentiality, Non-Competition and Non-Solicitation Agreement (this
“Agreement”) is made effective as of April 6, 2008 (the “Effective Date”), by and between
ev3 Inc., a Delaware corporation (“Company”), having a principal place of business at 9600
54th Avenue North, Plymouth, MN 55442, and Robert J. Palmisano (“Employee”),
having an address of 2609 Barcelona Dr., Fort Lauderdale, FL 33301.

     WHEREAS, Company is a leading global medical device company focused on catheter-based, or
endovascular, technologies for the minimally invasive treatment of vascular diseases and disorders
and desires to employ Employee on the terms and subject to the conditions set forth herein.

     WHEREAS, Company has expended considerable time, effort and resources in the development of
certain confidential, proprietary, and trade secret protected information, which must be maintained
as confidential in order to ensure the success of Company’s business;

     WHEREAS, Company has expended considerable funds, time, effort, and resources in the
development of its customer goodwill and recruiting and training its workforce, which also must be
maintained in order to ensure the success of Company’s business;

     WHEREAS, pursuant to the terms of that certain Employment and Change in Control Agreement (the
“Employment Agreement”), dated as of April 6, 2008, between Employee and Company, Employee
agreed to execute and deliver this Agreement concurrently with the execution and delivery of the
Employment Agreement; and

     WHEREAS, by virtue of Employee’s employment with Company, Employee will be performing services
in a confidential capacity and will be acquiring knowledge about Company’s valuable confidential
and technical information, its trade secrets, customer goodwill, and its highly trained workforce
and Company desires reasonable protection of its confidential business and technical information,
its trade secrets, customer goodwill, and its highly trained workforce.

     NOW THEREFORE, in consideration of the covenants and promises contained herein, and of
Employee’s employment by Company, the compensation and benefits received by Employee from Company,
and the access given Employee to Company’s Confidential and Proprietary Information, as defined
below, all of which Employee acknowledges are good and valuable consideration for Employee entering
into this Agreement and for the restrictions imposed in Employee’s current and post-employment
activities under this Agreement, the parties hereto agree as follows:

1. Employee’s Representations and Duties.

     1.01. Company. Solely for purposes of Articles 1, 2, 3, 4, 5, 6 and 7 of this
Agreement, “Company” includes Company, its parent, subsidiary, and affiliated companies,
and their successors and assigns.

     1.02. No Conflicts. Employee represents and warrants to Company that Employee is not
currently subject to any non-competition, confidentiality, or any other type of agreement or other
obligation with any third party (including but not limited to any former employer) that would
prohibit Employee from accepting this position with Company, conflict with Employee’s obligations
under

 

 

this Agreement, or in any way restrict or impair Employee’s ability to perform the full scope
of duties and responsibilities Employee is expected to perform for Company.

     1.03. Compliance with Company Policies. Employee shall, at all times, comply with all
policies, rules, and procedures of Company, which include, but are not limited to, Company’s Code
of Conduct, Corporate Compliance Policy, and Insider Trading Policy. By Employee’s signature below,
Employee acknowledges that Employee has received, read, and agrees to abide by, each of the
foregoing Company policies.

     1.04. Duty of Loyalty. In all aspects of Employee’s employment with Company, Employee
shall act in the utmost good faith, deal fairly with Company, and fully disclose to Company all
information that Company might reasonably consider to be important or relevant to Company’s
business. Employee further agrees that during employment by Company, Employee shall not engage in
any conduct that might result in, or create the appearance of using Employee’s position for
Employee’s private gain, or otherwise create a conflict of interest, or the appearance of a
conflict of interest, with Company. Such prohibited conduct includes, but is not limited to, having
an undisclosed financial interest in any vendor or supplier of Company, accepting payments of any
kind or gifts other than of a nominal value from vendors, customers, or suppliers, or having an
undisclosed relationship with a family member or other individual who is employed by any entity in
active or potential competition with Company, and which creates a conflict of interest. While
employed at Company, Employee shall not establish, operate, participate in, advise, or assist to
establish in any manner whatsoever any business, that could or would be in competition with
Company’s business, and Employee shall not take any preliminary or preparatory steps toward
establishing or operating such a business. Notwithstanding the foregoing, Employee may own less
than two percent (2%) of any class of stock or security of any company that competes with Company
listed on a national securities exchange.

     1.05. E-Mail Messages and Internet Usage. Employee acknowledges and agrees that all e
- mail messages that Employee produces, sends, or receives while at Company facilities or using
Company equipment are the property of Company. Employee also acknowledges and agrees that Company
may monitor and inspect all such messages and also may monitor and control the communications that
Employee initiates or receives through the Internet while at Company facilities and while using
Company equipment in any location. Employee acknowledges that Employee has no right to or
expectation of privacy in such communications. Employee agrees to cooperate with Company in its
implementation of such security and control measures as it may implement from time to time with
respect to e-mail and Internet communications and shall take all reasonable precautions to ensure
that the confidentiality of any such communications containing Confidential and Proprietary
Information, as defined below, is maintained. Employee also agrees that the Internet may not be
used for the transmission or intentional reception of obscene, scandalous, offensive, or otherwise
inappropriate materials, and that Employee will comply with all Company policies regarding
appropriate use of the Internet and e-mail.

2. Nondisclosure of Confidential and Proprietary Information.

     2.01. Definition of Confidential and Proprietary Information. “Confidential and
Proprietary Information” means any and all information, whether oral, written, or committed to
Employee’s memory, that is not generally known by persons not employed by, or parties to contracts
with, Company, whether prepared by Company or Employee, including but not limited to:

	 	(a)	 	Inventions, designs, discoveries, works of authorship, improvements, or ideas,
whether or not patentable or copyrightable, methods, processes, techniques, shop

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practices, formulae, compounds, or compositions developed or otherwise possessed by
Company;

	 	(b)	 	the subject matter of Company’s patents, design patents, copyrights, trade
secrets, trademarks, service marks, trade names, trade dress, manuals, operating
instructions, and other intellectual property to the extent that such information is
unavailable to the public;
	 
	 	(c)	 	Company’s information, knowledge, or data concerning its financial data,
including financial statements and projections, pricing information, costs, sales,
budgets, and profits; business plans such as products and services under development,
clinical trials, proposals, presentations, potential acquisitions under consideration,
and marketing strategies; manufacturing processes; organizational structures, such as
names of employees, consultants, and their positions and compensation schedules;
customer information such as surveys, customer lists, lists of prospective customers,
customer research, customer meetings, customer account records, sales records, training
and servicing materials, programs, techniques, sales, and contracts; supplier and
vendor information including lists and contracts; relational data models, company
manuals and policies, computer programs, software, disks, source code, systems
architecture, blue prints, flow charts, and licensing agreements; and/or
	 
	 	(d)	 	any document marked “Confidential”, or any information that Employee has been
told is “Confidential” or that Employee might reasonably expect Company would regard as
“Confidential,” or any information that has been given Company in confidence by
customers, suppliers, or other persons.

     2.02. Confidentiality Obligations. Employee agrees to hold all Confidential and
Proprietary Information in the strictest confidence both during Employee’s employment relationship
with Company and after Employee’s employment relationship with Company is voluntarily or
involuntarily terminated for any reason. To this end, Employee shall:

	 	(a)	 	not make, or permit or cause to be made, copies of any Confidential and
Proprietary Information, except as necessary to carry out Employee’s duties as
prescribed by Company;
	 
	 	(b)	 	not disclose or reveal any Confidential and Proprietary Information, or any
portion thereof, to any person or company who is not under a legal or contractual
obligation to Company to hold such information confidential;
	 
	 	(c)	 	take all reasonable precautions to prevent the inadvertent disclosure of any
Confidential and Proprietary Information to any unauthorized person;
	 
	 	(d)	 	acknowledge that Company is the owner of all Confidential and Proprietary
Information and agree not to contest any such ownership rights of Company, either
during or after Employee’s employment with Company;
	 
	 	(e)	 	upon termination of employment with Company or upon request by Company, deliver
promptly to Company all Confidential and Proprietary Information and all Company
documents and property, whether confidential or not, including, without limitation, all
books, manuals, records, reports, notes, contracts, lists, blueprints, programs,
databases, and other documents or materials, whether in hard copy, electronic, or

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other form, including copies thereof, whether prepared by Employee or Company, and
all equipment furnished to Employee in the course of or incident to employment,
including any laptop computer and all data contained on such computer; and

	 	(f)	 	permit Company to inspect non-Company computers and/or cell phones, including
any Personal Data Assistant, Blackberry, or other handheld device belonging to
Employee, at the time employment from Company is terminated and to remove from such
non-Company property all data belonging to Company if Employee used such non-Company
property to conduct Company business.

     2.03. Obligations to Third Parties. Employee understands and acknowledges that Company
has a policy prohibiting the receipt or use by Company of any confidential information or trade
secret protected information in breach of Employee’s obligations to third parties and Company does
not desire to receive any confidential information under such circumstances. Accordingly, Employee
will not disclose to Company or use in the performance of any duties for Company any confidential
information in breach of an obligation to any third party. Employee represents that Employee has
informed Company, in writing, of any restriction on Employee’s use of a third party’s confidential
information that conflicts with any obligations under this Agreement.

3. Non-Competition.

     3.01. Post-Employment Restrictions. Employee agrees that for a period of one (1) year
following Employee’s termination or separation from employment with Company for any reason,
voluntary or involuntary, Employee shall not directly or indirectly (including without limitation
as an officer, director, employee, advisor, consultant, or otherwise), render services to any
person or entity in connection with the design, development, manufacture, marketing, or sale of a
Competitive Product, as defined below, that is sold or intended for use or sale in any geographic
area in which Company markets or intends to market any of its products. It is agreed that Employee
is free to work for a competitor of Company, provided that: (i) such employment does not include
any responsibilities for, or in connection with, a Competitive Product for the one-year period of
the restriction contained in this Paragraph 3.01; and (ii) Employee has not assumed a
position with a competitor that would lead to the inevitable disclosure of Company’s trade secrets
or Confidential and Proprietary Information.

     3.02. Field Sales Restrictions. If Employee’s only responsibilities for Company during
the last two years of employment have been in a field sales or field sales management capacity, the
restrictions in Paragraph 3.01 above shall be for a period of one year in the sales
territory or territories Employee covered or supervised for all or part of the last year of
employment and/or for any customers Employee had direct or indirect contact with, within or outside
of the sales territory, for all or part of the last year of employment.

     3.03. Definition of Competitive Product. “Competitive Product” means any
product or component thereof, product line, or service that has been designed or is being designed,
developed, manufactured, marketed, or sold by anyone other than Company and is: (i) of the same
general type, (ii) performs similar functions, (iii) is used for the same purposes as a Company
product; and/or (iv) competes for the same customers and/or patients with any product, process, or
service that Company markets or is developing to market.

     3.04. Disclosure of Obligations. During the restrictive period set forth in this
Article 3, Employee will inform any new employer or prospective employer, prior to
accepting employment, of the existence of this Agreement and provide such employer with a copy of
this Agreement.

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     3.05. Acknowledgment of Company Efforts. Employee acknowledges that Company has many
near-permanent customers throughout the world to which Employee has access. These include customers
that Company developed as a result of many years of significant efforts and significant financial
investments by Company.

     3.06. Acknowledgment of Reasonableness. Employee acknowledges and agrees that the
restrictions contained in this Article 3 are reasonable as to time, area, and persons and
are necessary to protect the legitimate business interests of Company and to avoid disruption of
Company’s business. In that connection, Employee further acknowledges that Company’s business is
worldwide in geographic scope and that its business is conducted, in part, over the worldwide web.
Employee also acknowledges and agrees that the restrictions do not impose undue hardship on
Employee or operate as a bar to Employee’s sole means of support.

     3.07. Consideration. Employee acknowledges and agrees that Employee has received
consideration in exchange for signing this Agreement and that Employee was advised of, and
presented with, a copy of this Agreement prior to accepting employment with Company.

4. Post-Employment Restriction on Recruiting or Hiring Company Employees.

     4.01. Acknowledgment of Training Efforts. Employee acknowledges that Company has
expended considerable time and effort in recruiting and training its employees, many of whom are
accomplished professionals.

     4.02. No Recruiting of Company Employees. Employee hereby agrees that, during
Employee’s employment by Company and for a period of one (1) year following the termination or
separation from employment with Company, for any reason, voluntary or involuntary, Employee shall
not, directly or indirectly, hire or recruit any employees of Company.

5. Inventions.

     5.01. Definition of Inventions. “Inventions” means any inventions,
discoveries, improvements, and ideas, whether or not in writing or reduced to practice and whether
or not patentable or copyrightable, made, authored, or conceived by Employee, whether by Employee’s
individual efforts or in connection with the efforts of others, and that either (i) relate in any
way to Company’s business, products, or processes, past, present, anticipated, or under
development; or (ii) result in any way from Employee’s employment by Company; or (iii) use
Company’s equipment, supplies, facilities, or Confidential and Proprietary Information.

     5.02. Assignment of Inventions. During the course of Employee’s employment and for a
period of six (6) months thereafter, Employee shall promptly and fully disclose to Company, and
will hold in trust for Company’s sole right and benefit, any Invention that Employee makes,
conceives, or reduces to practice, or causes to made, conceived, or reduced to practice, either
alone or in conjunction with others, whether made during the working hours of Company or on
Employee’s own time. Employee shall: (i) assign, and hereby assigns, to Company all of Employee’s
right, title, and interest in and to all such Inventions, any applications for patents, copyrights,
or any other registration of intellectual property in any country covering or relating to any such
Invention, and any patents, copyrights, or other intellectual property registration granted to
Employee or Company; and (ii) acknowledge and deliver promptly to Company any written instruments
and perform any other acts necessary in Company’s opinion to preserve property rights in any
Invention against forfeiture, abandonment, or loss, to obtain and maintain letters patent and/or
copyrights or other registration of any intellectual property rights on any such Invention, and to
vest the entire right and title to such

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Inventions and related intellectual property in Company. Employee agrees to perform promptly
(without charge to Company but at the expense of Company) all such acts as may be necessary in
Company’s opinion to preserve all patents and/or copyrights or other intellectual property covering
the Inventions and to enable Company to obtain the sole right, title, and interest in all such
Inventions, including without limitation the execution of assignments or patent prosecution
documentation and appearing as a witness in any action brought in connection with this Agreement.

     5.03. Exclusion. The parties agree, and Employee is hereby notified, that the
requirements of this Article 5 do not apply to any invention for which no equipment,
supplies, facility, or information of Company was used and which was developed entirely on
Employee’s own time, and which (i) does not relate directly to Company’s business or to Company’s
actual or demonstrably anticipated research or development; or (ii) does not result from any work
Employee performed for Company. Employee represents that, except as disclosed on Exhibit A,
as of the date of this Agreement, Employee has no rights under, and will make no claims against
Company with respect to, any inventions, discoveries, improvements, ideas, or works of authorship
that would be Inventions if made, conceived, authored, or acquired by Employee during the term of
this Agreement. All inventions that Employee already has conceived or reduced to practice and that
Employee claims to be excluded from the scope of this Agreement are listed on Exhibit A (if
none, write “none”).

     5.04. Copyrights. Employee acknowledges that any documents, drawings, computer
software, or other work of authorship prepared by Employee within the scope of Employee’s
employment is a “work made for hire” under U.S. copyright laws and that, accordingly, Company
exclusively owns all copyright rights in such works of authorship. For purposes of this Agreement,
“scope of employment” means the work of authorship: (i) relates to any subject matter pertaining to
Employee’s employment; (ii) relates to or is directly or indirectly connected with the existing or
reasonably foreseeable business, products, projects, or Confidential and Proprietary Information of
Company; and/or (iii) involves the use of any time, material, or facility of Company.

     5.05. Presumption. In the event of any dispute, arbitration, or litigation concerning
whether an invention, improvement, or discovery made or conceived by Employee is the property of
Company, such invention, improvement, or discovery will be presumed the property of Company and
Employee will bear the burden of establishing otherwise.

6. Non-Disparagement; Participation in Internet and Other Public Electronic Forums.

     6.01. Non-Disparagement. Employee agrees that Employee will not, directly or
indirectly, speak or act in any manner that is intended to, or does in fact, damage the goodwill or
the business of Company, or the business or personal reputations of any of its directors, officers,
agents, employees, customers, vendors, or suppliers. Employee further agrees that Employee will not
engage in any other deprecating conduct or communications with respect to Company; provided,
however, that nothing in this Agreement shall preclude Employee from providing honest, forthright,
and truthful testimony in any court or regulatory action or proceeding.

7. Injunctive Relief.

     7.01. Existence of Irreparable Harm. Employee acknowledges and agrees that in the
event of any breach or threatened breach by Employee of any of the provisions of this Agreement,
damages shall be an inadequate remedy and that Company will suffer irreparable harm and, as a
result, Company shall be entitled to injunctive and other equitable relief such as restraining
orders and preliminary or permanent injunctions to specifically enforce the provisions of this
Agreement and to protect Company against any breach or threatened breach. If Company is required by
applicable law

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to furnish a bond or other surety as a condition of the entry of an injunction or restraining
order, Employee agrees that such bond or surety shall be in the minimum amount required by law.

     7.02. Non-Exclusive Remedies. Nothing herein shall be construed as prohibiting Company
from pursuing any other remedies available to Company for Employee’s breach or threatened breach of
this Agreement, including the recovery of damages from Employee and an accounting and repayment of
all profits, compensation, commissions, remuneration, or other benefits that Employee directly or
indirectly has realized and/or may realize as a result of, growing out of, or in connection with,
any such violation. These remedies shall be in addition to, and not in limitation of, any other
rights or remedies to which Company is or may be entitled.

8. Miscellaneous.

     8.01. No Waiver. No failure or delay by any party hereto in exercising any right,
power, or privilege hereunder will operate as a waiver thereof, nor will any single or partial
exercise thereof preclude any other or further exercise thereof or the exercise of any right,
power, or privilege hereunder.

     8.02. Survival. The provisions of Articles 2, 3, 4, 5, 6, 7 and 8 shall
survive any termination of Employee’s employment or this Agreement.

     8.03. Assignment. This Agreement shall be binding upon Employee’s heirs, personal
representatives, and assigns, and may be transferred by Company to its successors and assigns.

     8.04. Severability. In the event any one or more of the provisions contained in this
Agreement are deemed illegal or unenforceable, such provision: (i) shall be construed in a manner
to enable it to be enforced to the extent permitted by applicable law; and (ii) shall not affect
the validity and enforceability of any legal and enforceable provision of this Agreement.

     8.05. Construction. It is agreed that the provisions of this Agreement will be
regarded as divisible and if any provision is found by any court of competent jurisdiction to be
unenforceable because it extends for too long a period of time or over too great a range of
activities or persons or in too broad a geographic area, it shall be interpreted to extend over the
maximum period of time, range of activities or persons, and/or geographic areas as to which it may
be enforceable. Any Court is also authorized to extend the duration of any restriction under
Articles 3 and 4 for the period that any violation of Articles 3 or 4 exists. All
captions and titles are for convenience only, and may not be used to interpret or to define the
terms of this Agreement.

     8.06. Governing Law and Jurisdiction. This Agreement shall be governed by the laws of
the State of Minnesota, without regard to choice of law rules. Each of the parties hereto hereby
irrevocably and unconditionally consents to submit to the exclusive jurisdiction and venue of the
federal and state courts within the State of Minnesota, and each party hereby consents to personal
jurisdiction in such forum, for any actions, suits, or proceedings arising out of or relating to
this Agreement (and agrees not to commence any action, suit, or proceeding relating thereto except
in such courts). Notwithstanding the foregoing, nothing in this Agreement will prevent Company from
seeking interim or permanent injunctive relief or filing any action to recover amounts owed to
Company by Employee in any court having jurisdiction over Employee.

     8.07. Entire Agreement. This Agreement constitutes the entire agreement between the
parties with respect to the subject matter hereof and supersedes all previous agreements and
understandings,

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whether oral or written, between the parties with respect to the subject matter hereof. This
Agreement may only be modified in a writing signed by both of the parties hereto.

* * * * *

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     IN WITNESS WHEREOF, the parties hereto have subscribed their names to this Agreement on the
day and year written below.

	 	 	 	 	 	 	 	 	 	 	 
	COMPANY	 	 	 	EMPLOYEE  
	 
	 	 	 	 	 	 	 	 	 	 
	By:
	 	/s/ Kevin Klemz	 	 	 	/s/ Robert J. Palmisano	 	 
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Print Name: Kevin Klemz	 	 	 	Print Name: Robert J. Palmisano
	 
	 	 	 	 	 	 	 	 	 	 
	Title: Senior Vice President and Chief
Legal Officer	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Date:

	 	April 6, 2008	 	 	 	Date: 	 	April 6, 2008	 	 

 

 

EXHIBIT A

Disclosure of Prior Inventions

All inventions that Employee already has conceived or reduced to practice and that Employee claims
to be excluded from the scope of “Inventions” as defined in the Confidentiality, Non-Competition
and Non-Solicitation Agreement are listed below (if none, write “none”):exv10w3

 

Exhibit 10.3

Execution Copy

INDEMNIFICATION AGREEMENT

     INDEMNIFICATION AGREEMENT, made and executed this 6th day of April 2008, by and between ev3
Inc., a Delaware corporation (the “Company”), and Robert J. Palmisano, an individual resident of
the State of Massachusetts (the “Indemnitee”).

     WHEREAS, the Company is aware that, in order to induce highly competent persons to serve the
Company as directors or officers or in other capacities, the Company must provide such persons with
adequate protection through insurance and indemnification against inordinate risks of claims and
actions against them arising out of their service to and activities on behalf of the Company;

     WHEREAS, the Company recognizes that the increasing difficulty in obtaining directors’ and
officers’ liability insurance, the increases in the cost of such insurance and the general
reductions in the coverage of such insurance have increased the difficulty of attracting and
retaining such persons;

     WHEREAS, the Board of Directors of the Company has determined that it is essential to the best
interests of the Company’s stockholders that the Company act to assure such persons that there will
be increased certainty of such protection in the future;

     WHEREAS, it is reasonable, prudent and necessary for the Company contractually to obligate
itself to indemnify such persons to the fullest extent permitted by applicable law so that they
will continue to serve the Company free from undue concern that they will not be so indemnified;
and

     WHEREAS, the Indemnitee is willing to serve, continue to serve, and take on additional service
for or on behalf of the Company or any of its direct or indirect subsidiaries on the condition that
he/she be so indemnified.

     NOW, THEREFORE, in consideration of the premises and the mutual promises and covenants
contained herein, and for other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, the Company and the Indemnitee do hereby agree as follows:

     1. Service by the Indemnitee. The Indemnitee agrees to serve and/or continue to serve as a
director, officer, employee or other agent of the Company faithfully and will discharge his/her
duties and responsibilities to the best of his/her ability so long as the Indemnitee is duly
elected or qualified in accordance with the provisions of the Amended and Restated Certificate of
Incorporation, as amended (the “Certificate”), and Amended and Restated By-laws, as amended (the
“By-laws”) of the Company and the General Corporation Law of the State of Delaware, as amended (the
“DGCL”), or until his/her earlier death, resignation or removal. The Indemnitee may at any time
and for any reason resign from such position (subject to any other

 

 

contractual obligation or other obligation imposed by operation by law), in which event the
Company shall have no obligation under this Agreement to continue the Indemnitee in any such
position. Nothing in this Agreement shall confer upon the Indemnitee the right to continue in the
employ of the Company or as a director of the Company or affect the right of the Company to
terminate the Indemnitee’s employment at any time in the sole discretion of the Company, with or
without cause, subject to any contract rights of the Indemnitee created or existing otherwise than
under this Agreement.

     2. Indemnification. The Company shall indemnify the Indemnitee against all Expenses (as
defined below), judgments, fines and amounts paid in settlement actually and reasonably incurred by
the Indemnitee as provided in this Agreement to the fullest extent permitted by the Certificate,
By-laws and DGCL or other applicable law in effect on the date of this Agreement and to any greater
extent that applicable law may in the future from time to time permit. Without diminishing the
scope of the indemnification provided by this Section 2, the rights of indemnification of the
Indemnitee provided hereunder shall include, but shall not be limited to, those rights hereinafter
set forth, except that no indemnification shall be paid to the Indemnitee:

     (a) on account of any action, suit or proceeding in which judgment is rendered
against the Indemnitee for disgorgement of profits made from the purchase or sale by
the Indemnitee of securities of the Company pursuant to the provisions of Section
16(b) of the Securities Exchange Act of 1934, as amended (the “Act”), or similar
provisions of any federal, state or local statutory law;

     (b) on account of conduct of the Indemnitee which is finally adjudged by a
court of competent jurisdiction to have been knowingly fraudulent or to constitute
willful misconduct;

     (c) in any circumstance where such indemnification is expressly prohibited by
applicable law;

     (d) with respect to liability for which payment is actually made to the
Indemnitee under a valid and collectible insurance policy of the Company or under a
valid and enforceable indemnity clause, By-law or agreement (other than this
Agreement) of the Company, except in respect of any liability in excess of payment
under such insurance, clause, By-law or agreement;

     (e) if a final decision by a court having jurisdiction in the matter shall
determine that such indemnification is not lawful (and, in this respect, both the
Company and the Indemnitee have been advised that it is the position of the
Securities and Exchange Commission that indemnification for liabilities arising
under the federal securities laws is against public policy and is, therefore,
unenforceable, and that claims for indemnification should be submitted to the
appropriate court for adjudication); or

     (f) in connection with any action, suit or proceeding by the Indemnitee against
the Company or any of its direct or indirect subsidiaries or the

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directors, officers, employees or other Indemnitees of the Company or any of
its direct or indirect subsidiaries, (i) unless such indemnification is expressly
required to be made by law, (ii) unless the proceeding was authorized by the Board
of Directors of the Company, (iii) unless such indemnification is provided by the
Company, in its sole discretion, pursuant to the powers vested in the Company under
applicable law, or (iv) except as provided in Sections 11 and 13 hereof.

     3. Actions or Proceedings Other Than an Action by or in the Right of the Company. The
Indemnitee shall be entitled to the indemnification rights provided in this Section 3 if the
Indemnitee was or is a party or witness or is threatened to be a party or witness to any
threatened, pending or completed action, suit or proceeding, whether civil, criminal,
administrative or investigative in nature, other than an action by or in the right of the Company,
by reason of the fact that the Indemnitee is or was a director, officer, employee, agent or
fiduciary of the Company, or any of its direct or indirect subsidiaries, or is or was serving at
the request of the Company, or any of its direct or indirect subsidiaries, as a director, officer,
employee, agent or fiduciary of any other entity, including, but not limited to, another
corporation, partnership, limited liability company, employee benefit plan, joint venture, trust or
other enterprise, or by reason of any act or omission by him/her in such capacity. Pursuant to
this Section 3, the Indemnitee shall be indemnified against all Expenses, judgments, penalties
(including excise and similar taxes), fines and amounts paid in settlement which were actually and
reasonably incurred by the Indemnitee in connection with such action, suit or proceeding
(including, but not limited to, the investigation, defense or appeal thereof), if the Indemnitee
acted in good faith and in a manner the Indemnitee reasonably believed to be in or not opposed to
the best interests of the Company, and, with respect to any criminal action or proceeding, had no
reasonable cause to believe his/her conduct was unlawful.

     4. Actions by or in the Right of the Company. The Indemnitee shall be entitled to the
indemnification rights provided in this Section 4 if the Indemnitee was or is a party or witness or
is threatened to be made a party or witness to any threatened, pending or completed action, suit or
proceeding brought by or in the right of the Company to procure a judgment in its favor by reason
of the fact that the Indemnitee is or was a director, officer, employee, agent or fiduciary of the
Company, or any of its direct or indirect subsidiaries, or is or was serving at the request of the
Company, or any of its direct or indirect subsidiaries, as a director, officer, employee, agent or
fiduciary of another entity, including, but not limited to, another corporation, partnership,
limited liability company, employee benefit plan, joint venture, trust or other enterprise, or by
reason of any act or omission by him/her in any such capacity. Pursuant to this Section 4, the
Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by him/her in
connection with the defense or settlement of such action, suit or proceeding (including, but not
limited to the investigation, defense or appeal thereof), if the Indemnitee acted in good faith and
in a manner the Indemnitee reasonably believed to be in or not opposed to the best interests of the
Company; provided however, that no such indemnification shall be made in respect of any claim,
issue, or matter as to which the Indemnitee shall have been adjudged to be liable to the Company,
unless and only to the extent that the Court of Chancery of the State of Delaware or the court in
which such action, suit or proceeding was brought shall determine upon application that, despite
the adjudication of liability but in view of all the circumstances of the case, the Indemnitee is
fairly and reasonably

-3-

 

entitled to be indemnified against such Expenses actually and reasonably incurred by him/her
which such court shall deem proper.

     5. Good Faith Definition. For purposes of this Agreement, the Indemnitee shall be deemed to
have acted in good faith and in a manner the Indemnitee reasonably believed to be in or not opposed
to the best interests of the Company, or, with respect to any criminal action or proceeding to have
had no reasonable cause to believe the Indemnitee’s conduct was unlawful, if such action was based
on (i) the records or books of the account of the Company or other enterprise, including financial
statements; (ii) information supplied to the Indemnitee by the officers of the Company or other
enterprise in the course of their duties; (iii) the advice of legal counsel for the Company or
other enterprise; or (iv) information or records given in reports made to the Company or other
enterprise by an independent certified public accountant or by an appraiser or other expert
selected with reasonable care by the Company or other enterprise.

     6. Indemnification for Expenses of Successful Party. Notwithstanding the other provisions of
this Agreement, to the extent that the Indemnitee has served on behalf of the Company, or any of
its direct or indirect subsidiaries, as a witness or other participant in any class action or
proceeding, or has been successful, on the merits or otherwise, in defense of any action, suit or
proceeding referred to in Section 3 and 4 hereof, or in defense of any claim, issue or matter
therein, including, but not limited to, the dismissal of any action without prejudice, the
Indemnitee shall be indemnified against all Expenses actually and reasonably incurred by the
Indemnitee in connection therewith, regardless of whether or not the Indemnitee has met the
applicable standards of Section 3 or 4 and without any determination pursuant to Section 8.

     7. Partial Indemnification. If the Indemnitee is entitled under any provision of this
Agreement to indemnification by the Company for some or a portion of the Expenses, judgments, fines
and amounts paid in settlement actually and reasonably incurred by the Indemnitee in connection
with the investigation, defense, appeal or settlement of such suit, action, investigation or
proceeding described in Section 3 or 4 hereof, but is not entitled to indemnification for the total
amount thereof, the Company shall nevertheless indemnify the Indemnitee for the portion of such
Expenses, judgments, penalties, fines and amounts paid in settlement actually and reasonably
incurred by the Indemnitee to which the Indemnitee is entitled.

     8. Procedure for Determination of Entitlement to Indemnification. (a) To obtain
indemnification under this Agreement, the Indemnitee shall submit to the Company a written request,
including documentation and information which is reasonably available to the Indemnitee and is
reasonably necessary to determine whether and to what extent the Indemnitee is entitled to
indemnification. The Secretary of the Company shall, promptly upon receipt of a request for
indemnification, advise the Board of Directors in writing that the Indemnitee has requested
indemnification. Any Expenses incurred by the Indemnitee in connection with the Indemnitee’s
request for indemnification hereunder shall be borne by the Company. The Company hereby
indemnifies and agrees to hold the Indemnitee harmless for any Expenses incurred by the Indemnitee
under the immediately preceding sentence irrespective of the outcome of the determination of the
Indemnitee’s entitlement to indemnification.

-4-

 

     (b) Upon written request by the Indemnitee for indemnification pursuant to Section 3 or 4
hereof, the entitlement of the Indemnitee to indemnification pursuant to the terms of this
Agreement shall be determined by the following person or persons, who shall be empowered to make
such determination: (i) if a Change in Control (as hereinafter defined) shall have occurred, by
Independent Counsel (as hereinafter defined) (unless the Indemnitee shall request in writing that
such determination be made by the Board of Directors (or a committee thereof) in the manner
provided for in clause (ii) of this Section 8(b)) in a written opinion to the Board of Directors, a
copy of which shall be delivered to the Indemnitee; or (ii) if a Change in Control shall not have
occurred, (A)(1) by the Board of Directors of the Company, by a majority vote of Disinterested
Directors (as hereinafter defined) even though less than a quorum, or (2) by a committee of
Disinterested Directors designated by majority vote of Disinterested Directors, even though less
than a quorum, or (B) if there are no such Disinterested Directors or, even if there are such
Disinterested Directors, if the Board of Directors, by the majority vote of Disinterested
Directors, so directs, by Independent Counsel in a written opinion to the Board of Directors, a
copy of which shall be delivered to the Indemnitee. Such Independent Counsel shall be selected by
the Board of Directors and approved by the Indemnitee. Upon failure of the Board of Directors to
so select, or upon failure of the Indemnitee to so approve, such Independent Counsel shall be
selected by the Chancellor of the State of Delaware or such other person as the Chancellor shall
designate to make such selection. Such determination of entitlement to indemnification shall be
made not later than 45 days after receipt by the Company of a written request for indemnification.
If the person making such determination shall determine that the Indemnitee is entitled to
indemnification as to part (but not all) of the application for indemnification, such person shall
reasonably prorate such part of indemnification among such claims, issues or matters. If it is so
determined that the Indemnitee is entitled to indemnification, payment to the Indemnitee shall be
made within ten days after such determination.

     9. Presumptions and Effect of Certain Proceedings. (a) In making a determination with
respect to entitlement to indemnification, the Indemnitee shall be presumed to be entitled to
indemnification hereunder and the Company shall have the burden of proof in the making of any
determination contrary to such presumption.

     (b) If the Board of Directors, or such other person or persons empowered pursuant to Section 8
to make the determination of whether the Indemnitee is entitled to indemnification, shall have
failed to make a determination as to entitlement to indemnification within 45 days after receipt by
the Company of such request, the requisite determination of entitlement to indemnification shall be
deemed to have been made and the Indemnitee shall be absolutely entitled to such indemnification,
absent actual and material fraud in the request for indemnification or a prohibition of
indemnification under applicable law. The termination of any action, suit, investigation or
proceeding described in Section 3 or 4 hereof by judgment, order, settlement or conviction, or upon
a plea of nolo contendere or its equivalent, shall not, of itself: (a) create a presumption that
the Indemnitee did not act in good faith and in a manner which he/she reasonably believed to be in
or not opposed to the best interests of the Company, and, with respect to any criminal action or
proceeding, that the Indemnitee has reasonable cause to believe that the Indemnitee’s conduct was
unlawful; or (b) otherwise adversely affect the rights of the Indemnitee to indemnification, except
as may be provided herein.

-5-

 

     10. Advancement of Expenses. All reasonable Expenses actually incurred by the Indemnitee in
connection with any threatened or pending action, suit or proceeding shall be paid by the Company
in advance of the final disposition of such action, suit or proceeding, if so requested by the
Indemnitee, within 20 days after the receipt by the Company of a statement or statements from the
Indemnitee requesting such advance or advances. The Indemnitee may submit such statements from
time to time. The Indemnitee’s entitlement to such Expenses shall include those incurred in
connection with any proceeding by the Indemnitee seeking an adjudication or award in arbitration
pursuant to this Agreement. Such statement or statements shall reasonably evidence the Expenses
incurred by the Indemnitee in connection therewith and shall include or be accompanied by a written
affirmation by the Indemnitee of the Indemnitee’s good faith belief that the Indemnitee has met the
standard of conduct necessary for indemnification under this Agreement and an undertaking by or on
behalf of the Indemnitee to repay such amount if it is ultimately determined that the Indemnitee is
not entitled to be indemnified against such Expenses by the Company pursuant to this Agreement or
otherwise. Each written undertaking to pay amounts advanced must be an unlimited general
obligation but need not be secured, and shall be accepted without reference to financial ability to
make repayment.

     11. Remedies of the Indemnitee in Cases of Determination not to Indemnify or to Advance
Expenses. In the event that a determination is made that the Indemnitee is not entitled to
indemnification hereunder or if the payment has not been timely made following a determination of
entitlement to indemnification pursuant to Sections 8 and 9, or if Expenses are not advanced
pursuant to Section 10, the Indemnitee shall be entitled to a final adjudication in an appropriate
court of the State of Delaware or any other court of competent jurisdiction of the Indemnitee’s
entitlement to such indemnification or advance. Alternatively, the Indemnitee may, at the
Indemnitee’s option, seek an award in arbitration to be conducted by a single arbitrator pursuant
to the rules of the American Arbitration Association, such award to be made within 60 days
following the filing of the demand for arbitration. The Company shall not oppose the Indemnitee’s
right to seek any such adjudication or award in arbitration or any other claim. Such judicial
proceeding or arbitration shall be made de novo, and the Indemnitee shall not be prejudiced by
reason of a determination (if so made) that the Indemnitee is not entitled to indemnification. If
a determination is made or deemed to have been made pursuant to the terms of Section 8 or Section 9
hereof that the Indemnitee is entitled to indemnification, the Company shall be bound by such
determination and shall be precluded from asserting that such determination has not been made or
that the procedure by which such determination was made is not valid, binding and enforceable. The
Company further agrees to stipulate in any such court or before any such arbitrator that the
Company is bound by all the provisions of this Agreement and is precluded from making any
assertions to the contrary. If the court or arbitrator shall determine that the Indemnitee is
entitled to any indemnification hereunder, the Company shall pay all reasonable Expenses actually
incurred by the Indemnitee in connection with such adjudication or award in arbitration (including,
but not limited to, any appellate proceedings).

     12. Notification and Defense of Claim. Promptly after receipt by the Indemnitee of notice of
the commencement of any action, suit or proceeding, the Indemnitee will, if a claim in respect
thereof is to be made against the Company under this Agreement, notify the Company in writing of
the commencement thereof; but the omission to so notify the Company will not relieve the Company
from any liability that it may have to the Indemnitee otherwise than under this

-6-

 

Agreement or otherwise, except to the extent that the Company may suffer material prejudice by
reason of such failure. Notwithstanding any other provision of this Agreement, with respect to any
such action, suit or proceeding as to which the Indemnitee gives notice to the Company of the
commencement thereof:

     (a) The Company will be entitled to participate therein at its own expense.

     (b) Except as otherwise provided in this Section 12(b), to the extent that it
may wish, the Company, jointly with any other indemnifying party similarly notified,
shall be entitled to assume the defense thereof with counsel reasonably satisfactory
to the Indemnitee. After notice from the Company to the Indemnitee of its election
to so assume the defense thereof, the Company shall not be liable to the Indemnitee
under this Agreement for any legal or other Expenses subsequently incurred by the
Indemnitee in connection with the defense thereof other than reasonable costs of
investigation or as otherwise provided below. The Indemnitee shall have the right
to employ the Indemnitee’s own counsel in such action or lawsuit, but the fees and
Expenses of such counsel incurred after notice from the Company of its assumption of
the defense thereof shall be at the expense of the Indemnitee unless (i) the
employment of counsel by the Indemnitee has been authorized by the Company, (ii) the
Indemnitee shall have reasonably concluded that there may be a conflict of interest
between the Company and the Indemnitee in the conduct of the defense of such action
and such determination by the Indemnitee shall be supported by an opinion of
counsel, which opinion shall be reasonably acceptable to the Company, or (iii) the
Company shall not in fact have employed counsel to assume the defense of the action,
in each of which cases the fees and Expenses of counsel shall be at the expense of
the Company. The Company shall not be entitled to assume the defense of any action,
suit or proceeding brought by or on behalf of the Company or as to which the
Indemnitee shall have reached the conclusion provided for in clause (ii) above.

     (c) The Company shall not be liable to indemnify the Indemnitee under this
Agreement for any amounts paid in settlement of any action, suit or proceeding
effected without its written consent, which consent shall not be unreasonably
withheld. The Company shall not be required to obtain the consent of the Indemnitee
to settle any action, suit or proceeding which the Company has undertaken to defend
if the Company assumes full and sole responsibility for such settlement and such
settlement grants the Indemnitee a complete and unqualified release in respect of
any potential liability.

     (d) If, at the time of the receipt of a notice of a claim pursuant to this
Section 12, the Company has director and officer liability insurance in effect, the
Company shall give prompt notice of the commencement of such proceeding to the
insurers in accordance with the procedures set forth in the respective policies.
The Company shall thereafter take all necessary or desirable action to cause such
insurers to pay, on behalf of the Indemnitee, all amounts payable as a result of
such proceeding in accordance with the terms of the policies.

-7-

 

     13. Other Right to Indemnification. The indemnification and advancement of Expenses provided
by this Agreement are cumulative, and not exclusive, and are in addition to any other rights to
which the Indemnitee may now or in the future be entitled under any provision of the By-laws or
Certificate of the Company, any vote of stockholders or Disinterested Directors, any provision of
law or otherwise. Except as required by applicable law, the Company shall not adopt any amendment
to its By-laws or Certificate the effect of which would be to deny, diminish or encumber the
Indemnitee’s right to indemnification under this Agreement.

     14. Director and Officer Liability Insurance. The Company shall maintain directors’ and
officers’ liability insurance for so long as the Indemnitee’s services are covered hereunder,
provided and to the extent that such insurance is available on a commercially reasonable basis. In
the event the Company maintains directors’ and officers’ liability insurance, the Indemnitee shall
be named as an insured in such manner as to provide the Indemnitee the same rights and benefits as
are accorded to the most favorably insured of the Company’s officers or directors. However, the
Company agrees that the provisions hereof shall remain in effect regardless of whether liability or
other insurance coverage is at any time obtained or retained by the Company, except that any
payments made to, or on behalf of, the Indemnitee under an insurance policy shall reduce the
obligations of the Company hereunder.

     15. Spousal Indemnification. The Company will indemnify the Indemnitee’s spouse to whom the
Indemnitee is legally married at any time the Indemnitee is covered under the indemnification
provided in this Agreement (even if the Indemnitee did not remain married to him or her during the
entire period of coverage) against any pending or threatened action, suit, proceeding or
investigation for the same period, to the same extent and subject to the same standards,
limitations, obligations and conditions under which the Indemnitee is provided indemnification
herein, if the Indemnitee’s spouse (or former spouse) becomes involved in a pending or threatened
action, suit, proceeding or investigation solely by reason of his or her status as the Indemnitee’s
spouse, including, without limitation, any pending or threatened action, suit, proceeding or
investigation that seeks damages recoverable from marital community property, jointly-owned
property or property purported to have been transferred from the Indemnitee to his/her spouse (or
former spouse). The Indemnitee’s spouse or former spouse also may be entitled to advancement of
Expenses to the same extent that the Indemnitee is entitled to advancement of Expenses herein. The
Company may maintain insurance to cover its obligation hereunder with respect to the Indemnitee’s
spouse (or former spouse) or set aside assets in a trust or escrow fund for that purpose.

     16. Intent. This Agreement is intended to be broader than any statutory indemnification
rights applicable in the State of Delaware and shall be in addition to any other rights the
Indemnitee may have under the Company’s Certificate, By-laws, applicable law or otherwise. To the
extent that a change in applicable law (whether by statute or judicial decision) permits greater
indemnification by agreement than would be afforded currently under the Company’s Certificate,
By-laws, applicable law or this Agreement, it is the intent of the parties that the Indemnitee
enjoy by this Agreement the greater benefits so afforded by such change. In the event of any
change in applicable law, statute or rule which narrows the right of a Delaware corporation to
indemnify a member of its Board of Directors or an officer, employee, agent or fiduciary, such
change, to the extent not otherwise required by such law, statute or rule to be

-8-

 

applied to this Agreement, shall have no effect on this Agreement or the parties’ rights and
obligations hereunder.

     17. Attorney’s Fees and Other Expenses to Enforce Agreement. In the event that the Indemnitee
is subject to or intervenes in any action, suit or proceeding in which the validity or
enforceability of this Agreement is at issue or seeks an adjudication or award in arbitration to
enforce the Indemnitee’s rights under, or to recover damages for breach of, this Agreement the
Indemnitee, if he/she prevails in whole or in part in such action, shall be entitled to recover
from the Company and shall be indemnified by the Company against any actual expenses for attorneys’
fees and disbursements reasonably incurred by the Indemnitee.

     18. Effective Date. The provisions of this Agreement shall cover claims, actions, suits or
proceedings whether now pending or hereafter commenced and shall be retroactive to cover acts or
omissions or alleged acts or omissions which heretofore have taken place. The Company shall be
liable under this Agreement, pursuant to Sections 3 and 4 hereof, for all acts of the Indemnitee
while serving as a director and/or officer, notwithstanding the termination of the Indemnitee’s
service, if such act was performed or omitted to be performed during the term of the Indemnitee’s
service to the Company.

     19. Duration of Agreement. This Agreement shall survive and continue even though the
Indemnitee may have terminated his/her service as a director, officer, employee, agent or fiduciary
of the Company or as a director, officer, employee, agent or fiduciary of any other entity,
including, but not limited to another corporation, partnership, limited liability company, employee
benefit plan, joint venture, trust or other enterprise or by reason of any act or omission by the
Indemnitee in any such capacity. This Agreement shall be binding upon the Company and its
successors and assigns, including, without limitation, any corporation or other entity which may
have acquired all or substantially all of the Company’s assets or business or into which the
Company may be consolidated or merged, and shall inure to the benefit of the Indemnitee and his/her
spouse, successors, assigns, heirs, devisees, executors, administrators or other legal
representations. The Company shall require any successor or assignee (whether direct or indirect,
by purchase, merger, consolidation or otherwise) to all or substantially all of the business and/or
assets of the Company, by written agreement in form and substance reasonably satisfactory to the
Company and the Indemnitee, expressly to assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform if no such succession
or assignment had taken place.

     20. Disclosure of Payments. Except as expressly required by any Federal or state securities
laws or other Federal or state law, neither party shall disclose any payments under this Agreement
unless prior approval of the other party is obtained.

     21. Severability. If any provision or provisions of this Agreement shall be held invalid,
illegal or unenforceable for any reason whatsoever, (a) the validity, legality and enforceability
of the remaining provisions of this Agreement (including, but not limited to, all portions of any
Sections of this Agreement containing any such provision held to be invalid, illegal or
unenforceable) shall not in any way be affected or impaired thereby and (b) to the fullest extent
possible, the provisions of this Agreement (including, but not limited to, all portions of any
paragraph of this Agreement containing any such provision held to be invalid,

-9-

 

illegal or unenforceable, that are not themselves invalid, illegal or unenforceable) shall be
construed so as to give effect to the intent manifest by the provision held invalid, illegal or
unenforceable.

     22. Counterparts. This Agreement may be executed by one or more counterparts, each of which
shall for all purposes be deemed to be an original but all of which together shall constitute one
and the same Agreement. Only one such counterpart signed by the party against whom enforceability
is sought shall be required to be produced to evidence the existence of this Agreement.

     23. Captions. The captions and headings used in this Agreement are inserted for convenience
only and shall not be deemed to constitute part of this Agreement or to affect the construction
thereof.

     24. Definitions. For purposes of this Agreement:

     (a) “Change in Control” shall mean a change in control of the Company occurring
after the date hereof of a nature that would be required to be reported in response
to Item 6(e) of Schedule 14A of Regulation 14A (or in response to any similar item
on any similar schedule or form) promulgated under the Act, whether or not the
Company is then subject to such reporting requirement; provided,
however, that, without limitation, a Change in Control shall include: (i)
the acquisition (other than from the Company) after the date hereof by any person,
entity or “group” within the meaning of Section 13(d)(3) or 14(d)(2) of the Act
(excluding, for this purpose, the Company or its subsidiaries, any employee benefit
plan of the Company or its subsidiaries which acquires beneficial ownership of
voting securities of the Company, any qualified institutional investor who meets the
requirements of Rule 13d-1(b)(1) promulgated under the Act, Warburg Pincus LLC and
its affiliates, and The Vertical Group, L.P. and its affiliates) of beneficial
ownership (within the meaning of Rule 13d-3 promulgated under the Act) of 20% or
more of either the then-outstanding shares of common stock or the combined voting
power of the Company’s then-outstanding capital stock entitled to vote generally in
the election of directors; (ii) individuals who, as of the date hereof, constitute
the Board of Directors (the “Incumbent Board”) ceasing for any reason to constitute
at least a majority of the Board of Directors, provided that any person becoming a
director subsequent to the date hereof whose election, or nomination for election by
the Company’s stockholders was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board (other than an election or nomination
of an individual whose initial assumption of office is in connection with an actual
or threatened election contest relating to the election of the directors of the
Company) shall be, for purposes of this Agreement, considered as though such person
were a member of the Incumbent Board; or (iii) approval by the stockholders of the
Company of (A) a reorganization, merger, or consolidation, in each case, with
respect to which persons who were the stockholders of the Company immediately prior
to such reorganization, merger, or consolidation do not, immediately thereafter, own
more than 50% of the

-10-

 

combined voting power entitled to vote generally in the election of directors
of the reorganized, merged, consolidated or other surviving corporation’s
then-outstanding voting securities, (B) a liquidation or dissolution of the Company,
or (C) the sale of all or substantially all of the assets of the Company.

     (b) “Disinterested Director” shall mean a director of the Company who is not or
was not a party to the action, suit, investigation or proceeding in respect of which
indemnification is being sought by the Indemnitee.

     (c) “Expenses” shall include all attorneys’ fees, retainers, court costs,
transcript costs, fees of experts, witness fees, travel expenses, duplicating costs,
printing and binding costs, telephone charges, postage, delivery service fees, and
all other disbursements or expenses incurred in connection with prosecuting,
defending, preparing to prosecute or defend, investigating or being or preparing to
be a witness in any threatened, pending or completed action, suit or proceeding,
whether civil, criminal, administrative or investigative in nature.

     (d) “Independent Counsel” shall mean a law firm or a member of a law firm that
neither is presently nor in the past five years has been retained to represent (i)
the Company or the Indemnitee in any matter material to either such party or (ii)
any other party to the action, suit, investigation or proceeding giving rise to a
claim for indemnification hereunder. Notwithstanding the foregoing, the term
“Independent Counsel” shall not include any person who, under the applicable
standards of professional conduct then prevailing, would have a conflict of interest
in representing either the Company or the Indemnitee in an action to determine the
Indemnitee’s right to indemnification under this Agreement.

     25. Entire Agreement, Modification and Waiver. This Agreement constitutes the entire
agreement and understanding of the parties hereto regarding the subject matter hereof, and no
supplement, modification or amendment of this Agreement shall be binding unless executed in writing
by both parties hereto. No waiver of any of the provisions of this Agreement shall be deemed or
shall constitute a waiver of any other provisions hereof (whether or not similar) nor shall such
waiver constitute a continuing waiver. No supplement, modification or amendment of this Agreement
shall limit or restrict any right of the Indemnitee under this Agreement in respect of any act or
omission of the Indemnitee prior to the effective date of such supplement, modification or
amendment unless expressly provided therein.

     26. Notices. All notices, requests, demands or other communications hereunder shall be in
writing and shall be deemed to have been duly given if (i) delivered by hand with receipt
acknowledged by the party to whom said notice or other communication shall have been directed, (ii)
mailed by certified or registered mail, return receipt requested with postage prepaid, on the date
shown on the return receipt or (iii) delivered by facsimile transmission on the date shown on the
facsimile machine report:

-11-

 

	 	(a)	 	If to the Indemnitee to:
	 
	 	 	 	Robert J. Palmisano

2609 Barcelona Dr.

Fort Lauderdale, FL 33301
	 
	 	(b)	 	If to the Company, to:
	 
	 	 	 	ev3 Inc.
 9600
54th Avenue North

Plymouth, Minnesota 55442

Attention: Chief Legal Officer

Facsimile: (753) 398-7240
	 
	 	 	 	with a copy to:
	 
	 	 	 	Oppenheimer, Wolff & Donnelly, LLP

Attn: Amy Culbert
 45
South Seventh Street

Suite 3300

Minneapolis, MN 55402

Facsimile: (612) 607-7100

or to such other address as may be furnished to the Indemnitee by the Company or to the Company by
the Indemnitee, as the case may be.

     27. Governing Law. The parties hereto agree that this Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Delaware, applied without
giving effect to any conflicts-of-law principles.

-12-

 

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

	 	 	 	 	 	 	 
	 	 	ev3 Inc.	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	/s/ Kevin Klemz	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Kevin Klemz	 	 
	 	 	Title: Senior Vice
President and Chief Legal Officer	 	 
	 
	 	 	 	 	 	 
	 	 	INDEMNITEE:	 	 
	 
	 	 	 	 	 	 
	 

	 	By	 	/s/ Robert J. Palmisano	 	 
	 

	 	 	 	 	 	 
	 	 	Name: Robert J. Palmisano

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