Document:

exv10w1

 

Exhibit 10.1

EMPLOYMENT AGREEMENT

     THIS EMPLOYMENT AGREEMENT, made as of the 8th day of February 2007 or such earlier date that
the parties agree (the “Effective date”) (the “Agreement”) by and between GOLDEN STAR
RESOURCES LTD. or its nominee (the “Company”) and MR. THOMAS G. MAIR (the
“Employee”).

     WHEREAS the Company wishes to have the benefit of the Employee’s services; and

     WHEREAS the Employee wishes to be so employed.

     NOW, THEREFORE, in consideration of the foregoing and the mutual covenants herein contained,
THE PARTIES HERETO AGREE AS FOLLOWS:

1. Employment

(a) The Company shall employ the Employee, and the Employee shall serve in the employ of
the Company and render exclusive and full-time services to the Company in such other offices of the
Company or its affiliates as may be designated by the Board of Directors or the President and Chief
Executive Officer, on the terms and conditions set forth in this Agreement and subject to the
direction of the President and Chief Executive Officer. The Employee shall be employed as Senior
Vice President and Chief Financial Officer.

(b) The Employee shall not serve as a director, general partner or manager of any other
entity without the prior written consent of the Board of Directors.

(c) The Employees principal place of business with respect to his services to the Company
shall be the Corporation’s offices in Littleton, Colorado.

(d) The Employee acknowledges that he will be required to travel extensively and perform
his duties in other locations and the Employee shall undertake such amount of travel away from his
principal place of employment as may reasonably be necessary for the business of the Company.

2. Term of Employment

The Agreement shall become effective on the Effective Date. Unless the Employee’s employment is
terminated as provided in Section 5, the term of the Employee’s employment under this Agreement
(the “Term”) shall be for one (1) year from the Effective Date. The Term shall be extended
automatically for successive one-year periods on each successive anniversary of the Effective Date,
unless the Employee or the Company provides written notice to the other at least three (3) months
prior to the anniversary of the Effective Date of his or its intention not to extend the Term, in
which case the Term shall end on that anniversary of the Effective Date.

If the Company notifies the Employee of its intent not to extend the Term, the Agreement and the
Employee’s employment shall be deemed to have been terminated without cause pursuant to Section
5(b)(ii) and the Employee shall be entitled to the payments and other benefits set forth in Section
5(b)(ii).

 

 

3. Services

The Employee shall devote his entire business time, best efforts, skills and attention to the
Company in fulfilling his duties and responsibilities hereunder faithfully and diligently. The
Employee shall assume and perform to the best of his abilities the responsibilities of Senior Vice
President and Chief Financial Officer of the Company as well as such other responsibilities as may
be assigned to him by the President and Chief Executive Officer of the Company and as are
appropriate to the offices he holds. The Employee will engage in no other business or activity for
compensation except for the management of his personal investments and any business or activity
with respect to which he has received the prior written consent of the Board of Directors. The
Employee shall report to the President and Chief Executive Officer.

4. Compensation and Benefits

The Employee shall be entitled to the following benefits:

(a) The Company shall pay to the Employee, and the Employee hereby accepts, a salary (the
“Base Salary”) at the rate of U.S.$210,000 per annum. The Employee’s salary may be
increased from time to time by the Board of Directors of the Company during the term of the
Agreement and, upon any increase; such increased salary shall then become the Base Salary. The
Base Salary shall be payable in equal bi-monthly installments in arrears.

(b) The Employee shall be entitled to participate in the Company’s Amended and Restated
Stock Option Plan and in any successor option plan. Subject to the approval of the Board of
Directors, the number of options to be granted shall be 200,000. The value of each option shall be
determined using a Black Scholes valuation.

(c) The Employee shall be entitled to participate in the Company’s Executive Management
Performance Bonus Plan and in any successor bonus plan. The target bonus level shall be 40% of
Base Salary but this may vary between 0% and 80% depending on results and performance.

(d) The Company shall reimburse the Employee for all reasonable and documented travel,
entertainment and other business expenses actually and properly incurred by him in connection to
his duties hereunder. The Employee shall render expense accounts requesting reimbursements of his
expenses hereunder within a reasonable period of time following such expense and in accordance with
such documentation and verification as the President and Chief Executive Officer of the Company may
from time to time require.

(e) The Employee shall be entitled to participate in such of the Company’s benefit and
deferred compensation plans as are from time to time available to executive officers of the
Company, including medical and dental health plans, life and disability insurance plans,
supplemental retirement programs and other fringe benefit plans (provided, however, that
the Employee’s benefits may be modified or the Employee may be denied participation in any such
plan because of a condition or restriction imposed by law or regulation or third-party insurer or
other provider relating to participation.

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(f) The Employee shall be entitled to participate in any and all applicable group savings or
retirement plans, or other fringe benefits of the Company as established by the Company from time
to time in which executive officers are eligible to participate, provided that the Employee
shall have fulfilled all eligibility requirements for such benefits.

(g) The Employee shall be entitled to four weeks of paid vacation during each year of
employment hereunder at such time or times as may be selected by the Employee and approved by the
President and Chief Executive Officer, and as are in accordance with the Company’s policies and
reasonable operating requirements. The Employee shall be entitled to all public holidays observed
by the Golden Star corporate office to a maximum of ten (10) days per annum.

5. Termination

The Agreement and Employee’s employment may be terminated in the following manner. In each case,
the Company shall have no obligations to the Employee following termination pursuant to Section 5,
other than as set forth in this Agreement and as provided in any benefit plans in which the
Employee is a participant at the date of termination.

	(a)	 	Upon Retirement:

	 	(i)	 	Except as provided otherwise in Section 5(a)(ii), Employee’s employment shall
automatically terminate upon the Employee’s sixty-fifth birthday.
	 
	 	(ii)	 	Upon recommendation from the President and Chief Executive Officer, the Board
of Directors may, on or before the Employee’s sixty-fifth birthday and each subsequent
birthday, approve the extension of his employment and this Agreement for one year,
until his next birthday.
	 
	 	(iii)	 	At the time of termination, the Employee shall be paid in a lump sum payment
all accrued salary, any benefits then due and payable under any plans of the Company in
which the Employee is a participant (in accordance with the provisions of the
applicable plan), accrued vacation pay and reimbursement of any appropriate business
expenses incurred by the Employee in connection with his duties hereunder, all to the
effective date of termination (“Accrued Compensation”).

	(b)	 	By the Company:

	 	(i)	 	For cause, immediately upon notice in writing from the Company to the
Employee. For purposes of this Agreement, “cause” shall mean: (1) unless
resulting from disability as defined in Section 5(b)(iv), the Employee’s material
breach of any terms of this Agreement, if such material breach has not been cured
within thirty (30) days following written notice of such breach to the Employee from
the Company setting forth with specificity the nature of the breach or, if cure cannot
reasonably be effected within such 30-day period, if the Employee does not commence to
cure the breach within such 30-day period and thereafter pursue such cure continuously
and with due diligence until cure has been fully effected; (2) the Employee’s willful
dishonesty towards, fraud upon, crime against, bad faith action with respect to,
deliberate or attempted injury to, or gross

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	 	 	 	misconduct or material noncompliance with the Company’s policies and procedures
which is materially injurious to the Company; (3) the Employee’s conviction for any
felony crime (whether in connection with the Company’s affairs or otherwise); or (4)
the Employee’s failure to comply with any lawful directive of the Board of
Directors, the failure to comply with which is stated in such directive to be
grounds for termination. At the time of termination, the Company shall pay the
Accrued Compensation to the Employee.
	 
	 	(ii)	 	Without cause, at any time upon the giving of seven days prior
written notice by the Company to the Employee or the Company’s election not to extend
the Term of the Agreement pursuant to Section 2. The Company shall pay to the Employee
in cash or cash equivalent acceptable to the Employee, in a lump sum at the time of
termination, Accrued Compensation plus severance compensation (“Twelve Months Severance
Compensation”) in an amount equal to 1.0 times the sum of (1) the Employee’s then
current Base Salary, (2) the average of the target bonus for the Employee for the
current year and the bonus paid to the Employee for the previous year, (3) the amount
of employer contributions contributed to the Employee’s account for the most recent
plan year before the termination date, under Administaff Retirement Services (ARS) 401k
Plan or any successor plan and (4) the amount paid by the Company for welfare benefits
on behalf of the Employee for the most recent year.
	 
	 	(iii)	 	Immediately and without notice upon the death of the Employee, in
which case the Company shall have no further obligation to the Employee’s estate or
representatives other than to pay Accrued Compensation up to and including the end of
the month in which death occurred.
	 
	 	(iv)	 	At any time upon 90-day notice in writing from the Company to the Employee,
if the Employee shall by reason of disability have failed to perform his duties
under the Agreement. During the 90-day notice period, the Employee shall be considered
a full-time employee of the Company. The Employee’s disability means his incapacity
due to physical or mental illness such that he is unable to perform his previously
assigned duties where (1) such incapacity has been determined to exist by either (x)
the Company’s disability insurance carrier or (y) the concurring opinions of two
licensed physicians (one selected by the Company and one by the Employee) or (2) the
Employee has failed for any three consecutive months in any calendar year or for six
months in the aggregate in any two successive calendar years to have performed
substantially all of his duties under this Agreement by reason of physical or mental
illness, as determined by the Board of Directors. Any such separation for disability
shall be only as not prohibited by the Americans with Disabilities Act. The Company
shall pay to the Employee in a lump sum at the time of termination (x) Accrued
Compensation, (y) such other payments as may be then due under any disability insurance
policy of the Company in accordance with the terms of such policy and (z) payment to
the Employee of an amount equal to the cost of COBRA coverage for the Employee to
continue to participate in applicable benefit plans for one year.

	(c)	 	By the Employee:

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	 	(i)	 	for material breach of this Agreement by the Company, immediately upon
notice in writing from the Employee to the Company, in which case the Employee shall
have no further obligation to the Company, and the Company shall make a lump sum
payment to the Employee in cash or cash equivalent acceptable to the Employee at the
time of termination, of Accrued Compensation plus Twelve Months Severance
Compensation. For purposes of this clause, “material breach” shall include:

	 	(aa)	 	the reduction by the Company of the Employee’s Base Salary or other
benefits;
	 
	 	(bb)	 	the non-payment of compensation and provision of benefits when, as
and if due within 10 business days of written notice to the Company by the
Employee that such payment was not made when due;
	 
	 	(cc)	 	the material reduction by the Company of the Employee’s
responsibilities or title; and
	 
	 	(dd)	 	the failure of a successor entity to adopt this Agreement.

	 	(ii)	 	voluntarily, if Sections 5(b)(i), 5(b)(ii), 5(c)(i) or 6 are not
applicable, at any time upon three months’ notice in writing to the Company, in which
case the Company shall pay to the Employee in a lump sum at the time of termination
Accrued Compensation up to and including the date of termination. The Company may
waive the requirement of written notice or the notice period in whole or in part, in
which case the Company shall pay to the Employee in a lump sum at the time of
termination an amount equal to Accrued Compensation through the date on which
termination would have occurred had the notice not been waived.

(d) Upon any termination of employment as set forth in this Section 5 or 6, the Employee
shall, unless otherwise advised by the Company, do the following:

	 	(i)	 	immediately resign all offices held (including directorships, if any) in the
Company (and any subsidiary or other affiliated company of the Company and any entity
in which Employee holds office at the direction of the Company) and, except as provided
in this Agreement, the Employee shall not be entitled to receive any additional
severance payment or additional compensation for loss of office or otherwise by reason
of the resignation. If the Employee fails to resign as described herein, the Company
is irrevocably authorized to appoint any other person in his name and on his behalf to
sign any documents or do any things necessary or requisite to give effect to such
resignation; and
	 
	 	(ii)	 	promptly return to the Company all books of account, computer files, maps,
records, reports and other documents, materials and property of the Company in the
possession or control of the Employee.

(e) All amounts payable in cash or cash equivalent acceptable to Employee under this
Section 5 shall, within seven days of termination, at the option of the Company be delivered to the
Employee personally or be mailed to the Employee at the address referred to in Section 11(d).

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6. Change of Control

     (a) In the event of a Termination Upon a Change in Control, the Company shall
immediately pay to the Employee in a lump sum payment Accrued Compensation and Change of Control
Severance. For the avoidance of doubt, a Termination Upon a Change of Control shall not constitute
a termination under Section 5 of this Agreement, and the Employee shall not be entitled to any
payment or benefits under Section 5. The Company shall have no further obligation to the Employee
except as provided under this Agreement and in any benefit plans in effect at the date of
termination which are applicable to Employee.

     (i) “Termination Upon a Change in Control” shall mean a termination of the
Employee without cause within 12 months following a Change in Control (as defined below) or
a termination by the Employee for Good Reason within 12 months following a Change in
Control.

     (ii) “Good Reason” shall mean any of the following (without the Employee’s
express written consent):

     (1) the assignment to the Employee by the Company of duties
inconsistent with, or a substantial alteration in the nature or status of, the
Employee’s responsibilities immediately prior to a Change in Control;

     (2) a reduction by the Company in the Employee’s compensation or
benefits as in effect on the date of a Change in Control;

     (3) any material breach by the Company of any provision of this
Agreement, if such material breach has not been cured within thirty (30) days
following written notice of such breach by the Employee to the Company setting forth
with specificity the nature of the breach; or

     (4) any failure by the Company to obtain the assumption and
performance of this Agreement by any successor (by merger, consolidation or
otherwise) or assign of the Company.

     (iii) A “Change in Control” shall be deemed to have occurred if (1) any
“person” or “group” (within the meaning of Sections 13(d) and 14(d)(2) of the Securities
Exchange Act of 1934), other than a trustee or other fiduciary holding securities under an
employee benefit plan of the Company, is or becomes the “beneficial owner” (as defined in
Rule 13d-3 under the 1934 Act), directly or indirectly, of more than thirty percent (30%) of
the then outstanding voting stock of the Company; or (2) persons who are Incumbent Directors
cease to constitute a majority of the Board of Directors; or (3) the stockholders of the
Company approve a merger, consolidation or amalgamation of the Company with any other
corporation, other than a merger, consolidation or amalgamation which would result in the
voting securities of the Company outstanding immediately prior thereto continuing to
represent (either by remaining outstanding or by being converted into voting securities of
the surviving entity) at least fifty percent (50%) of the combined voting power of the
voting securities of the Company or such surviving entity outstanding immediately after such
merger, consolidation or amalgamation, or (4) the stockholders approve a plan of complete

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liquidation of the Company or the sale or disposition by the Company of all or
substantially all of the Company’s assets in one or a series of related
transactions.

     (iv) “Incumbent Director” means any person who serves on the Board of
Directors of the Company as of the date of this Agreement and any person who is added to the
Board thereafter with the approval of a majority of the persons who are then Incumbent
Directors.

     (v) “Change of Control Severance” means an amount equal to (a) two times the
sum of (1) the Employee’s Base Salary for the calendar year in which the termination became
effective, (2) the average of the target bonus for the Employee for the current calendar
year and the bonus paid to the Employee for the previous year, (3) the amount of employer
contributions contributed to the Employee’s account for the most recent plan year before the
termination date, under Administaff Retirement Services (ARS) 401k Plan or any successor
plan, and (4) the amount paid by the Company for welfare benefits on behalf of the Employee
for the most recent year, plus (b) a portion of the target bonus for the Employee for the
current calendar year which is pro rata to the portion of such year prior to the Employee’s
Change of Control Termination.

(b) In the event of a Termination Upon a Change of Control, the Company shall, at its
sole expense, provide the Employee with outplacement services, the scope and provider of which
shall be selected by the Employee in his sole discretion and the cost of which shall not exceed an
amount equal to 10% of the Employee’s then current Base Salary.

7. Acceleration and Vesting of Stock Options

All of the stock options granted to the Employee under the stock option plan of the Company or any
of its subsidiary companies shall become immediately exercisable and vested and shall remain
exercisable for a period of 12 months from the date of termination of the Employee (a) upon a
Change of Control or (b) if after the first anniversary of the Effective Date (i) the Board of
Directors of the Company shall fail at any given time to elect the Employee as a Vice-President of
the Company or to an executive position possessing comparable duties and responsibilities or (ii)
should the Company terminate the Agreement or the employment of the Employee without cause.
Notwithstanding any of the foregoing, under no circumstances shall an option remain exercisable for
more than 10 years after the date it was granted.

8. Confidentiality and Restrictive Covenant

The Employee acknowledges that as a condition of his employment he is required to maintain the
confidentiality of the Company’s confidential and proprietary information and, accordingly,
acknowledges that he is a party to and continues to be bound by the Confidentiality and Restrictive
Covenant Agreement dated as of February 2, 2007 between the Company and the Employee.

9. Company Policies

The Employee agrees to comply with the written policies of the Company, including the Code of
Ethics for Directors, Senior Executive and Financial Officers and other Executive Officers and the
Business Conduct and Ethics Policy (including the Insider Trading Policy). The Company shall
promptly notify the Employee of any modifications to its policies.

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10. Miscellaneous

(a) The failure to insist upon strict compliance with any of the terms, covenants or
conditions of this Agreement shall not be deemed a waiver of such terms, covenants or conditions,
and the waiver by either party of a breach of any provision of this Agreement shall not operate as
or be construed as a waiver of any subsequent breach thereof.

(b) Should a court or other body of competent jurisdiction determine that any provision
of this Agreement is invalid or unenforceable; such provision shall be adjusted rather than voided,
if possible, so that it is enforceable to the maximum extent possible, and all other provisions of
the Agreement shall be deemed valid and enforceable to the extent possible.

(c) This Agreement shall be governed by and construed in accordance with the laws of the
State of Colorado, without reference to principles of conflict of laws, and each of the parties
submits to the non-exclusive jurisdiction of the courts of the State of Colorado.

(d) Any and all notices referred to herein shall be in writing and may be delivered by
mail, by facsimile transmission or by hand. Notice shall be deemed given five days after mailing,
if mailed in the United States by registered mail, on the date of actual receipt if given by
facsimile transmission, or on the date of delivery, if delivered by hand.

Address for mailing, telecopy or delivery by hand shall be as follows:

	 	•	 	the Employee:

Thomas G. Mair

5263 South Ironton Way

Englewood, CO 80111

e-mail: tgmair@msn.com

	 	•	 	To the Company:

10901 W. Toller Drive, Suite 300

Littleton CO 80127

UNITED STATES

Attention: President and CEO

Fax: +1-303-830-9094

or such other address as either party may from time to time designate in writing.

(e) The parties hereby agree that any dispute or controversy arising out of or relating
to this Agreement, the Employee’s employment with the Company, or the termination or cancellation
of that employment or this Agreement, including without limitation any claim by the Employee under
any federal, state or local law or statute regarding discrimination in employment, shall be settled
by arbitration by a single arbitrator in accordance with the Commercial Arbitration Rules of the

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American Arbitration Association from time to time in force. The hearing on any such arbitration
shall be held in Denver, Colorado. If such Commercial Arbitration Rules and practices shall
conflict with the Colorado Rules of Civil Procedure or any other provisions of Colorado law then in
force, such Colorado rules and provisions shall govern. Arbitration of any such dispute or
controversy shall be a condition precedent to any legal action thereon. This submission and
agreement to arbitration shall be specifically enforceable.

Within thirty (30) days after the receipt by one party of a written notice to arbitrate delivered
by the other party, the parties shall mutually select the arbitrator. If the parties cannot agree
on such arbitrator, the selection of the arbitrator shall be made in accordance with the procedures
of the American Arbitration Association.

Awards shall be final and binding on all parties to the extent and in the manner provided by
Colorado law. Each award shall expressly entitle the prevailing party to recover such party’s
attorneys’ fees and costs, and the award shall specifically allocate such fees and costs between
the parties. All awards may be filed by any party with the Clerk of the District Court in the City
and County of Denver, Colorado, and an appropriate judgment entered thereon and execution issued
therefore. At the election of any party, said award may also be filed, and judgment entered
thereon and execution issued therefore, with the clerk of one or more other courts, state or
federal, having jurisdiction over the party against whom such an award is rendered or its property.

(f) This Agreement is personal to the Employee and without the prior written consent of
the Company shall not be assignable by the Employee, provided that a deceased Employee’s right to
payment hereunder may be assigned by will or the laws of descent and distribution.

This Agreement shall inure to the benefit of and be binding upon the Company and its successors and
assigns.

The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the
Company to assume expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession had taken place. As
used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor
to its business and/or assets that assumes and agrees to perform this Agreement by operation of
law, or otherwise.

(g) This Agreement supersedes any and all prior written and oral employment agreements
between the Company and the Employee and, together with the Confidentiality and Restrictive
Covenant Agreement between the Company and Employee dated February 2, 2007, represents the entire
agreement between the parties and may be amended, modified, superseded, or cancelled, and any of
the terms hereof may be waived, only by a written instrument executed by each party hereto or, in
the case of a waiver, by the party waiving compliance. The failure of any party at any time or
times to require performance of any provisions hereof shall not affect the right at a later time to
enforce the same.

(h) This Agreement may be executed by the parties hereto in counterparts, each of which
shall be deemed an original, but all such counterparts shall together constitute one and the same
instrument.

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(i) All compensation and benefits to the Employee hereunder shall be reduced by all federal,
state, local and other withholdings and similar taxes and payments required by applicable law.

SIGNING PAGE FOLLOWS

IN WITNESS WHEREOF, the parties hereto have duly executed this Agreement as of the day and year
appearing on page one of this Agreement.

	 	 	 	 	 
	GOLDEN STAR RESOURCES LTD.	 	 
	 
	 	 
	 	 
	By:
	 	/s/ Ted Strickler

	 	/s/ Laura E. Cook
	 	 	 

	 	 
	

	 	 
	 	 
	Name:
	 	Ted Strickler

	 	Witness
	Title:
	 	Vice President, Human Resources & Administration
	 	 
	 
	 	 
	 	 
	/s/ Tom Mair	 	/s/ Laura E. Cook
	 	 	 
	Thomas G. Nair	 	Witness

10exv10w1

 

Exhibit 10.1

Confidential Treatment Requested:

Confidential portions of this document have been redacted and have been filed separately with the

Commission.

ASSET PURCHASE AGREEMENT

     THIS ASSET PURCHASE AGREEMENT (the “Agreement”) is made and entered into this 30th day
of November, 2006, by and between Micrus Endovascular Corporation, a Delaware corporation (the
“Purchaser”); Micrus Design Technology, Inc., a Delaware corporation (“Purchaser
Sub”); VasCon, LLC, a Delaware limited liability company (the “Seller”);
[***], collectively, the “Members” and each a “Member”). Certain
capitalized terms used in this Agreement are defined on Exhibit A hereto.

RECITALS

     WHEREAS, Seller is engaged in the development, manufacture, distribution and sale of vascular
access products and accessories and the development, manufacture, distribution and sale of
equipment and processes used in the manufacture of such access products and accessories (the
“Business”);

     WHEREAS, the Members own 9,500,000 units of ownership interest in Seller, which constitute
100% of the outstanding ownership interest in Seller; and

     WHEREAS, Purchaser, through its wholly owned Purchaser Sub, desires to purchase from Seller
and Seller desires to sell to Purchaser Sub substantially all of the assets, properties, rights and
claims of, or related to, the Business on the terms and conditions set forth herein; and

     WHEREAS, concurrent with the execution of this Agreement, (i) Purchaser and certain of the
Members and Key Employees will enter into a mutually acceptable offer letter or consulting
agreement, the effectiveness of which will be conditioned upon the Closing of the Transaction; and
(ii) Purchaser, Purchaser Sub and each of the Members will enter into a mutually acceptable
confidentiality and non-competition agreement, the effectiveness of which will be conditioned upon
the Closing of the Transaction.

     NOW, THEREFORE, in consideration of the foregoing recitals and the mutual representations,
warranties, covenants and promises contained herein, the adequacy and sufficiency of which are
hereby acknowledged, the parties hereto agree as follows:

AGREEMENT

ARTICLE 1. THE TRANSACTION

     1.1 Purchased Assets. Subject to the terms and conditions of this Agreement, at the Closing,
Seller shall sell, transfer, convey, assign and deliver to Purchaser Sub, and Purchaser Sub shall
purchase from Seller, all of Seller’s right, title and interest in, to and under the assets,
properties, goodwill and rights of Seller used in the conduct of the Business of every nature, kind
and description, tangible
and intangible, wherever located, whether or not carried on the books of

 

 

Seller (other than
the Excluded Assets) (collectively, the “Purchased Assets”), including the following:

          (a) Receivables. All accounts and notes receivable, checks, negotiable instruments and
chattel papers (the “Receivables”), including the Receivables listed on Schedule
1.1(a);

          (b) Inventory. All inventory of Seller Products and its components, wherever located and
whether held by Seller or third parties, including all raw materials, work in process, samples,
packaging, supplies, service parts, purchased parts and goods and damaged or fragmented inventory
and the finished goods listed on Schedule 1.1(b) (collectively, the “Inventory”)
and any and all rights to market and sell all such Inventory;

          (c) Machinery and Equipment. All tools, dies, jigs, molds, patterns, machinery and equipment
(including manufacturing assembly and test equipment), wherever located and whether held by Seller
or third parties (the “Machinery and Equipment”), including the Machinery and Equipment
listed on Schedule 1.1(c);

          (d) Personal Property. All personal property, office furnishings and furniture, display
racks, shelves, decorations, supplies and other tangible personal property (the “Personal
Property”), including the Personal Property listed on Schedule 1.1(d);

          (e) Cash. Cash, cash equivalents and marketable securities;

          (f) Leased Real Property. All rights in, to and under the real estate leases listed on
Schedule 1.1(f) (the “Real Property Leases”), together with all of Seller’s right,
title and interest in and to all land, buildings, structures, easements, appurtenances,
improvements (including construction in progress) and fixtures located thereon (the “Leased
Real Property”);

          (g) Personal Property Leases. All rights in, to and under leases of personal property to
which Seller is a party (the “Personal Property Leases”), including the Personal Property
Leases listed on Schedule 1.1(g);

          (h) Intellectual Property. All Seller Intellectual Property and Seller Intellectual Property Rights, including without
limitation the Seller Intellectual Property listed on Schedule 1.1(h) but excluding
[***];

          (i) Deposits and Advances. All performance and other bonds, security and other deposits,
advances, advance payments, prepaid credits/expenses and deferred charges (the “Deposits and
Advances”), including the Deposits and Advances listed on Schedule 1.1(i);

          (j) Rebates and Credits. All rights in, to and under claims for refunds, rebates or other
discounts due from suppliers or vendors and rights to offset in respect thereof (the “Rebates
and Credits”), including those Rebates and Credits listed on Schedule 1.1(j);

          (k) Seller Contracts. All rights in, to and under any and all Contracts to which Seller is a
party or may be bound or receive benefits or by which the Purchased Assets or Assumed Liabilities
may be affected, except for the Excluded Contracts (collectively, “Seller

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Contracts”),
including all Material Contracts (other than the Excluded Contracts) listed on Schedule
1.1(k);

          (l) Governmental Approvals. All Governmental Approvals (and pending applications therefor),
including the Governmental Approvals listed on Schedule 1.1(l);

          (m) Claims. All claims, choses-in-action, rights in action, rights to tender claims or
demands to Seller’s insurance companies, rights to any insurance proceeds, and other similar claims
(the “Seller Claims”), including the Seller Claims listed and any insurance policies
specified by Seller on Schedule 1.1(m);

          (n) Books and Records. All books, files, papers, agreements, correspondence, databases,
information systems, programs, software, documents, records and documentation thereof related to
any of the Purchased Assets or the Assumed Liabilities, or used in the conduct of the Business, on
whatever medium (the “Books and Records”); and

          (o) Other Assets. All other assets, properties, rights and claims related to the operations
or conduct of the Business or which arise in or from the conduct thereof.

     1.2 Excluded Assets. Notwithstanding Section 1.1 or anything else in this Agreement, the following
assets of Seller (the “Excluded Assets”) shall not be included in the Purchased Assets and
shall remain the property of Seller after the Closing:

          (a) Certain Debt. Any intercompany or intracompany receivable cash balances between Seller
and any of its Affiliates or between any of its Affiliates;

          (b) Corporate Documents. Corporate seals, certificates of incorporation or organization,
operating agreements, minute books, capitalization records, membership and economic interest
transfer records, or other records related to the corporate organization of Seller;

          (c) Employee Benefit Contracts. Seller Benefit Plans and contracts of insurance for employee
group medical, dental and life insurance plans;

          (d) Certain Other Property. The assets listed on Schedule 1.2(d);

          (e) Insurance Policies. All insurance policies (except to the extent specified in Section
1.1(m);

          (f) Records. All personnel records and other records that Seller is required by law to retain
in its possession;

          (g) Deposits. Any Deposits and Advances, Rebates and Credits or Seller Claims related to any
Excluded Liability;

          (h) Excluded Contracts. All of the excluded Contracts listed on Schedule 1.2(h)
(“Excluded Contracts”);

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          (i) [***].

          (j) Rights Under Certain Agreements. All rights under a Transaction Agreement.

     1.3 Assumed Liabilities. Subject to the terms and conditions of this Agreement, at the
Closing, Seller shall assign, and Purchaser Sub shall assume only the Assumed Liabilities. For the
purposes of this Agreement, the “Assumed Liabilities” shall mean only the following
Liabilities of Seller:

          (a) Any Liability arising after the Closing Date under the Seller Contracts;

          (b) All trade accounts payable of Seller (i.e., payables to vendors, specifically excluding any
amounts payable to Members or Affiliates of Seller, or related to the Excluded Assets) outstanding
as of the Closing Date, and if incurred after the Interim Balance Sheet Date, only as incurred in
the ordinary course of business (the “Assumed Accounts Payable”). Immediately prior to the
Closing, Seller and Buyer shall estimate in good faith the amount of the Assumed Accounts Payable
(such estimated amount, the “Estimated Assumed Accounts Payable”); and

          (c) All customer deposits identified in Schedule 4.18, to the extent outstanding on the Closing Date
(the “Customer Deposits”).

     1.4 Excluded Liabilities. Except for the Assumed Liabilities, neither Purchaser nor Purchaser
Sub shall assume or be liable or responsible for any Liability of Seller, or any Affiliate of
Seller (collectively, the “Excluded Liabilities”). Without limiting the foregoing,
Purchaser and Purchaser Sub shall not be obligated to assume, and do not assume, and hereby
disclaim any of the following Liabilities of Seller or its Affiliates:

          (a) Any Liability attributable to any assets, properties or Contracts that are not included in
the Purchased Assets, except Liabilities attributable to Non-Assignable Assets, for which Seller
and Purchaser have reached a mutually acceptable arrangement pursuant to Section 1.5(b);

          (b) Any Liability for breaches of any Seller Contract on or prior to the Closing Date or any
Liability for payments or amounts due under any Seller Contract on or prior to the Closing Date;

          (c) Any Liability for Taxes attributable to or imposed upon Seller or its Affiliates, or
attributable to or imposed upon the Purchased Assets for the Pre-Closing Period, including any
Transfer Taxes, including, without limitation, any pro-rated portion of any personal property
taxes;

          (d) Any Liability for or with respect to any loan, other indebtedness, or account payable,
including any such Liabilities owed to Affiliates of Seller;

          (e) Any Liability arising from accidents, occurrences, misconduct, negligence, breach of
fiduciary duty or statements made or omitted to be made (including

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libelous or defamatory
statements) on or prior to the Closing Date, whether or not covered by workers’ compensation or
other forms of insurance;

          (f) Any Liability arising as a result of any legal or equitable action or judicial or
administrative proceeding initiated at any time, to the extent related to any action or omission on
or prior to the Closing Date, including any Liability for (i) infringement or misappropriation of
any Intellectual Property Rights or any other rights of any Person (including any right of privacy
or publicity); (ii) breach of product warranties; (iii) injury, death, property damage or other
losses arising with respect to or caused by Seller Products or the manufacturer or design thereof;
or (iv) violations of any Legal Requirements (including federal and state securities laws);

          (g) Any Liability arising out of any Seller Benefit Plans or any contract of insurance for
employee group medical, dental or life insurance plans;

          (h) Any Liability for making payments of any kind to employees (including as a result of the
Transaction, the termination of an employee by Seller, or other claims arising out of the terms of
employment with Seller) or with respect to payroll taxes;

          (i) Any Liability incurred in connection with the making or performance of this Agreement and
the Transaction;

          (j) Any Environmental and Safety Laws Liabilities arising out of or relating to the operation
of the Business or Seller’s leasing, ownership or operation of real property;

          (k) Any costs or expenses incurred in connection with shutting down, deinstalling and removing
equipment not purchased by Purchaser Sub and any costs or expenses associated with any Seller
Contracts not assumed by Purchaser Sub hereunder;

          (l) Any Liability for expenses and fees incurred by Seller incidental to the preparation of
the Transaction Agreements, preparation or delivery of materials or information requested by
Purchaser or Purchaser Sub, and the consummation of the Transaction, including all broker, counsel
and accounting fees and Transfer Taxes;

          (m) Any Liability arising out of transactions, commitments, infringements, acts or omissions
not in the ordinary course of business;

          (n) Any Liability related to or arising from the acquisition of the Business by Seller;

          (o) Any Legal Requirement applicable to Seller, the Purchased Assets or the Assumed
Liabilities on or prior to the Closing Date or any Liability for a violation of such a Legal
Requirement;

          (p) Any Liability to any members; and

          (q) Any Liability for credit balances, credit memos and all other amounts due to dealers,
distributors and customers.

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     1.5 Non-Assignable Assets.

          (a) Notwithstanding the foregoing, if any of the Seller Contracts or other Purchased Assets
are not assignable or transferable (each, a “Non-Assignable Asset”) without the consent of,
or waiver by, a third party (each, an “Assignment Consent”), either as a result of the
provisions thereof or applicable Legal Requirements, and any of such Assignment Consents are not
obtained by Seller on, prior to, or within thirty (30) days of the Closing Date, Purchaser Sub may
elect to either (i) have Seller permanently retain the Non-Assignable Asset and all Liabilities
relating thereto at the Closing (a “Permanent Non-Assignable Asset”); or (ii) have Seller
continue its efforts to obtain the Assignment Consents after Closing, and, in either case, this
Agreement and the related instruments of transfer shall not constitute an assignment or transfer of
such Non-Assignable Assets, and Purchaser and Purchaser Sub shall not assume Seller’s rights or
obligations under such Non-Assignable Asset (and such Non-Assignable
Asset shall not be included in the Purchased Assets). If Purchaser Sub elects item (ii) above,
without limiting Seller’s obligations under Section 6.9, Seller shall use its best efforts
to obtain all such Assignment Consents as soon as reasonably practicable after the Closing Date and
thereafter assign to Purchaser Sub such Non-Assignable Assets; provided, however, that at any time
Purchaser Sub at its sole and absolute discretion may elect to have such Non-Assignable Asset be
treated as a Permanent Non-Assignable Asset and, with regard to any Non-Assignable Asset treated as
a Permanent Non-Assignable Asset, Seller shall have a right to full indemnification pursuant to
Article 11. Following any such assignment, such assets shall be deemed Purchased Assets
for purposes of this Agreement. This Section 1.5(a) shall at all times remain subject to
Article 9.

          (b) After the Closing, Seller shall cooperate with Purchaser Sub in any reasonable arrangement
designed to provide Purchaser Sub with all of the benefits of the Non-Assignable Assets as if the
appropriate Assignment Consents had been obtained, including by granting subleases and establishing
arrangements whereby Purchaser Sub shall undertake the work necessary to perform under Seller
Contracts.

ARTICLE 2. CONSIDERATION FOR TRANSFER

     2.1 Purchase Price, Payment and Security for Indemnification Obligations.

          (a) Purchase Price. Based on information known to Purchaser and Purchaser Sub on the date
hereof, as full consideration for the sale, assignment, transfer and delivery of the Purchased
Assets by Seller to Purchaser Sub and the other obligations of Seller and the Members hereunder,
Purchaser and Purchaser Sub, as the case may be, shall deliver to Seller at the Closing an executed
Assignment and Assumption, an initial payment equal to $5,000,000 plus or minus the adjustments
provided for below (the “Initial Payment”), and the potential Earn-Out Payments described
below (collectively, the “Purchase Price”), payable in the manner described below.

               (i) Initial Payment. Purchaser and Purchaser Sub, as the case may be, shall pay and deliver
to Seller the Initial Payment in the following manner:

                    (1) A wire transfer of immediately available U.S. funds in an aggregate amount equal to
$2,500,000 minus the sum of (A) the Estimated Assumed Accounts Payable less the Current Accounts

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Payable, plus (B) the Customer Deposits (the “Cash Amount”); for purposes of this
subparagraph the “Current Accounts Payable” shall mean the trade accounts payable included
within the Assumed Accounts Payable that are within 60 days of the invoice date as of the Closing,
provided, in any event, that such amount shall be capped at $180,000; and

                    (2) A certificate (“Escrow Certificate”) for such number of Shares of Purchaser’s
Common Stock valued at $2,500,000, as determined by using the average closing price per share of
Purchaser’s Common Stock on the NASDAQ National Market for the twenty (20) trading day period
ending three (3) trading days prior to the Closing Date, paid and delivered to the Escrow Agent
pursuant to the Escrow Agreement. In each case, the Shares shall be unregistered and shall be
restricted securities under the Act.

               (ii) Earn-Out Payments. Purchaser Sub shall pay Seller up to a maximum aggregate amount of
cash earn-out payments (“Earn-Out Payments”) of $10,000,000 as described below in
Section 2.1(b).

          (b) Earn-Out. The exact amount of the Earn-Out Payments will be equal to the lesser of (i)
total of the Manufacturing and Development Earn-Out (as defined below) and the Revenue Earn-Out (as
defined below) and (ii) $10,000,000.

               (i) The “Manufacturing and Development Earn-Out” shall be an amount equal to the
product obtained by multiplying (1) the number of units of Internal Products manufactured by Seller
and transferred to Purchaser Sub during each Earn-Out Period (as defined below), by (2) the dollar
amount per unit of such Internal Products as set forth initially on Schedule 2.1(b).
“Internal Products” shall include each of the products and services set forth on
Schedule 2.1(b) attached hereto.

               (ii) The “Revenue Earn-Out” for each Earn-Out Period (as defined below) shall be an
amount equal to the sum of (i) the lesser of (A) 50% of Gross Revenue during such Earn-Out Period
from sales of External Products during such Earn-Out Period or (B) 100% of Gross Margin generated
from sales of External Products during such Earn-Out Period, plus (ii) the lesser of (A) 30% of
Gross Revenue during such Earn-Out Period, or (B) 100% of Gross Margin generated from sales of
[***] during such Earn-Out Period.

                    (1) “[***]” shall mean any vascular access products (excluding neurovascular access
products) developed or manufactured based upon or using Purchased Assets and sold by Purchaser Sub
or its Affiliates to [***].

                    (2) “External Products” shall mean any vascular access products and development
services (excluding neurovascular access products and development services) developed or
manufactured based upon our using Purchased Assets, sold by Purchaser Sub or its Affiliates to
parties other than Purchaser Sub or its Affiliates or [***].

                    (3) “Gross Revenue” shall mean the aggregate amount of all gross revenue recognized in
accordance with GAAP for sales of External Products or [***], as
applicable, less returns, credits, refunds, or write-offs of receivables. For purposes of
clarity, the parties acknowledge that credits, refunds, or writeoffs may be deducted from Gross
Revenue for

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the Earn-Out Period in which they occur or are charged, regardless of the Earn-Out
Period in which the related sale(s) took place.

                    (4) “Gross Margin” shall mean Gross Revenue net of fully burdened overhead, materials,
labor and all related costs of goods, in accordance with GAAP.

               (iii) Not later than ninety (90) days following the last day of each Earn-Out Period (as
hereinafter defined) Purchaser Sub will pay the Earn-Out Payment, if any, owing with respect to
such Earn-Out Period. For purposes hereof, the term “Earn-Out Period” shall mean the
following: The first Earn-Out Period will begin on the first day following the Closing and will
end on the last day of Purchaser’s current fiscal year, i.e., March 31, 2007. The second and third
Earn-Out Periods will begin and end on the first and last day of Purchaser’s 2008 and 2009 fiscal
years. The fourth Earn-Out Period will begin on the first day of Purchaser’s 2010 fiscal year and
will end on the third anniversary of the Closing.

          (c) Security for Indemnification Obligations. Notwithstanding the provisions of Section
2.1(a), as security for the indemnification obligations of Seller set forth in this Agreement
or any other Transaction Agreement, at the Closing, Purchaser shall deliver to the Escrow Agent a
portion of the Shares otherwise deliverable pursuant to Section 2.1(a) valued at
[***] (collectively, the “Escrow Amount”). Such Escrow Amount shall be held in
escrow (the “Escrow”) by Escrow Agent generally for a period of [***] after the
Closing Date, and thereafter, to the extent not required by the Escrow Agent as an offset, security
or otherwise for Seller’s and/or Members’ indemnification obligations hereunder or any other
Transaction Agreement, shall be distributed to the Seller, all as definitively set forth in, and
subject to and in accordance with the terms of an escrow agreement, substantially in the form
mutually agreed upon by Seller, Purchaser, Purchaser Sub and Escrow Agent attached hereto as
Exhibit 2.1(c)  (the “Escrow Agreement”). Nothing in this Section
2.1 shall be construed as limiting Seller’s liability to Purchaser and Purchaser Sub to the
Escrow Amount, nor shall payments from the Escrow Amount be considered as liquidated damages for
any breach under this Agreement or any other Transaction Agreement.

     2.2 Purchase Price Adjustment.

          (a) Post-Closing Adjustment Amount and Payment. The “Post-Closing Adjustment Amount” will be
equal to the amount determined by subtracting the Interim Working Capital from the Closing Working
Capital. If the Post-Closing Adjustment Amount is negative, the Post-Closing Adjustment Amount
shall be paid by wire transfer by Seller to an account specified by Purchaser. If the Post-Closing
Adjustment Amount is positive, the Post-Closing Adjustment Amount shall be paid by wire transfer by
Purchaser to an account specified by Seller. All payments shall be with interest at the prime
rate published by The Wall Street Journal, as that rate may vary from time to time, or if no longer
published, a comparable rate payments, from and including the Closing Date but excluding the date
of payment thereof. Within three (3) business days after the calculation of the Closing Working
Capital becomes binding and conclusive on the parties pursuant to Section 2.2(b), Seller or
Purchaser, as the case may be, shall make the wire transfer payment provided for in this Section
2.2(a).

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          (b) Adjustment Procedure.

               (i) “Working Capital” as of a given date shall mean the amount calculated by
subtracting the current liabilities of Seller included in the Assumed Liabilities as of that date
from the current assets of Seller included in the Purchased Assets as of that date,
provided that for purposes of calculating the Working Capital of Seller as of the date of
the Interim Balance Sheet, the accounts payable as of the Interim Balance Sheet Date shall equal
the Estimated Assumed Accounts Payable, and the customer deposits as of the Interim Balance Sheet
Date shall equal the Customer Deposits (the “Interim Working Capital”).

               (ii) Purchaser shall prepare financial statements (“Closing Financial Statements”) of
Seller as of the Closing Date and for the period from the date of the Interim Balance Sheet through
the Closing Date in accordance with GAAP. Purchaser shall permit Seller to render all reasonable
assistance in connection with the preparation of the final balance sheet as of the Closing (the
“Closing Balance Sheet”). Purchaser shall then determine the Working Capital as of the
Closing Date minus accruals in accordance with GAAP in respect of liabilities to be incurred by
Purchaser or Purchaser Sub, as the case may be, after the Closing Date (the “Closing Working
Capital”) based upon the Closing Financial Statements in accordance with GAAP. Purchaser shall
deliver the Closing Financial Statements and its determination of the Closing Working Capital to
Seller within ninety (90) days following the Closing Date.

               (iii) If within thirty (30) days following delivery of the Closing Financial Statements and
the Closing Working Capital calculation Seller has not given Purchaser written notice of its
objection as to the Closing Working Capital calculation (which notice shall state the basis of
Seller’s objection), then the Closing Working Capital calculated by Purchaser shall be binding and
conclusive on the parties and be used in computing the Post-Closing Adjustment Amount.

               (iv)
If Seller duly gives Purchaser such notice of objection, and if Seller and Purchaser fail to
resolve the issues outstanding with respect to the Closing Financial Statements and the
calculation of the Closing Working Capital within thirty (30) days of Purchaser’s receipt of
Seller’s objection notice, Seller and Purchaser shall submit the issues remaining in dispute to an
independent public accounting firm of national reputation mutually acceptable to Purchaser and
Seller (the “Independent Accountants”) for resolution. If issues are submitted to the
Independent Accountants for resolution, (i) Seller and Purchaser shall furnish or cause to be
furnished to the Independent Accountants such work papers and other documents and information
relating to the disputed issues as the Independent Accountants may request and are available to
that party or its agents and shall be afforded the opportunity to present to the Independent
Accountants any material relating to the disputed issues and to discuss the issues with the
Independent Accountants; (ii) the determination by the Independent Accountants, as set forth in a
notice to be delivered to both Seller and Purchaser within sixty (60) days of the submission to the
Independent Accountants of the issues remaining in dispute, shall be final, binding and conclusive
on the parties and shall be used in the calculation of the Closing Working Capital; and (iii)
Seller and Purchaser or Purchaser Sub, as the case may be, will each bear fifty percent (50%) of
the fees and costs of the Independent Accountants for such determination.

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     2.3 Allocation of Purchase Price. As soon as practicable after the applicable party has
received the amount owed for the Post-Closing Adjustment Amount pursuant to Section 2.2,
Purchaser shall provide to Seller for Seller’s review and approval (which approval shall not be
unreasonably withheld) a proposed allocation of the Purchase Price, as adjusted pursuant to
Section 2.3, among the various classes of Purchased Assets (as such classes are defined for
the purposes of Section 1060 of the Code). All allocations made pursuant to this Section
2.3 shall be made in accordance with the requirements of Section 1060 of the Code. None of the
parties shall take a position on any Tax Return (including IRS Form 8594), before any Tax Authority
or in any judicial proceeding that is in any manner inconsistent with such allocation without the
written consent of the other parties to this Agreement or unless specifically required pursuant to
a determination by an applicable Tax Authority. The parties shall promptly advise each other of
the existence of any tax audit, controversy or litigation related to any allocation hereunder. Any
dispute arising under this Section 2.3 shall be resolved in the same manner as disputes are
resolved pursuant to Section 2.1(b)(iv) above.

ARTICLE 3. CLOSING AND CLOSING DELIVERIES

     3.1 Closing; Time and Place. The closing of the purchase and sale provided for in this
Agreement (the “Closing”) shall occur at the offices of Greenberg Traurig, LLP, 1221
Brickell Avenue, Miami, FL 33131, at 10:00 A.M. EST on the third (3rd) Business Day after the day
on which all of the conditions to closing set forth in Article 9 are satisfied or waived
(other than conditions that are intended to be satisfied at the Closing), or at such other date,
time or place as the parties may agree (the “Closing Date”).

     3.2 Deliveries by Seller and Members. At the Closing, Seller and Members, as the case may be, shall (i) take all steps necessary
to place Purchaser or Purchaser Sub in actual possession and operating control of the Business and
the Purchased Assets and (ii) deliver the following items, duly executed by Seller and the Members,
as applicable, all of which shall be in a form and substance reasonably acceptable to Purchaser and
Purchaser’s counsel:

          (a) General Assignment and Bill of Sale. General Assignment and Bill of Sale covering all of
the applicable Purchased Assets, substantially in the form attached hereto as Exhibit
3.2(a) (the “General Assignment and Bill of Sale”);

          (b) Assignment and Assumption Agreement. Assignment and Assumption Agreement, covering all of
the Assumed Liabilities, substantially in the form attached hereto as Exhibit 3.2(b) (the
“Assignment and Assumption”);

          (c) Intellectual Property Assignment. Any and all documents necessary to properly record the
assignment to Purchaser Sub all of Seller’s right, title and interest in and to the Seller
Intellectual Property, including (i) a trademark assignment (the “Trademark Assignment”),
substantially in the form of Exhibit 3.2(c)(i) attached hereto, for all of the Trademarks;
and (ii) a patent assignment (the “Patent Assignment”) substantially in the form of
Exhibit 3.2(c)(ii) hereto, for all of the Patents;

          (d) Other Conveyance Instruments. Such other specific instruments of sale, transfer,
conveyance and assignment as Purchaser or Purchaser Sub may request;

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          (e) FIRPTA. A FIRPTA Notification of Non-Foreign Person Status, substantially in the form
attached hereto as Exhibit 3.2(e) (the “FIRPTA Notification Letter”);

          (f) Notice to IRS. A Notice to the IRS regarding the FIRPTA Notification Letter,
substantially in the form attached hereto as Exhibit 3.2(f) (the “IRS Notice”),
together with a written authorization for Purchaser or Purchaser Sub to deliver the IRS Notice to
the IRS on behalf of Seller upon the Closing;

          (g) Assignments of Leases. Assignments of all Real Property Leases and Personal Property
Leases;

          (h) Contractor Agreements. The Contractors Agreements executed by [***];

          (i) Opinion
of Seller’s and Members’ Counsel Seller shall have delivered to Purchaser and
Purchaser Sub an Opinion of Seller’s and Members’ counsel, substantially in the form attached
hereto as Exhibit 9.1(e);

          (j) Seller Contracts. Originals of all Seller Contracts;

          (k) Offer Letters. The Offer Letters in substantially the form attached hereto as 3.2(k)
executed by the Members and Key Employees, as applicable;

          (l) Non-Competition Agreements. The Non-Competition Agreements in substantially the form
attached hereto as Exhibit 3.2(l), executed by the Members;

          (m) Request for Reconveyance of Deed of Trust; Payoff and Release Letters. Request for
Reconveyance of Deed of Trust, and payoff and release letters from creditors of Seller, together
with UCC-3 termination statements with respect to any financing statements filed against the
Business or any of the Purchased Assets, terminating all Encumbrances (including Tax liens) on any
of the Purchased Assets;

          (n) Books and Records. The Books and Records;

          (o) Certificate of Representations and Warranties and Member Approval. A Certificate executed
on behalf of Seller by its Chief Executive Officer and each of the Members, certifying (i) the
matters in Section 9.1(a); and (ii) that the members of Seller have approved this Agreement
and the Transaction in accordance with Section 9.1(f); and

          (p) Certificate of Good Standing. A certificate from the Secretary of State of Delaware as to
Seller’s good standing and payment of all applicable taxes.

     3.3 Deliveries by Purchaser or Purchaser Sub. At the Closing, Purchaser or Purchaser Sub, as
the case may be, shall deliver the following items, duly executed by Purchaser as applicable, all
of which shall be in a form and substance reasonably acceptable to Seller and Seller’s counsel:

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          (a) Wire Transfer. A wire transfer to VasCon, LLC to be sent to

               [***]

                for credit to Seller’s account, in the amount of the Cash Amount;

          (b) [Intentionally Omitted.];

          (c) Escrow Certificate. The Escrow Certificate to Escrow Agent;

          (d) Instructions to Transfer Agent. A copy of the instructions to Purchaser’s transfer agent
instructing the transfer agent to deliver, on an expedited basis, the certificates described in
Subsections 3.3(b) and (c);

          (e) Certificate of Representations and Warranties. A Certificate executed on behalf of
Purchaser by its Executive Vice President or Chief Executive Officer, certifying the matters in
Section 9.2(a);

          (f) Offer Letters. The Offer Letters, executed by Purchaser Sub; and

          (g) Registration Rights Agreement. The Registration Rights Agreement in the form attached
hereto as Exhibit 3.3(g).

     3.4 Delivery by Purchaser and Seller and Members. At the Closing, Purchaser and Seller shall
deliver the following items, duly executed by the appropriate parties, all of which shall be in a
form and substance reasonably acceptable to the non-delivering party and its counsel:

          (a) Escrow Agreement. The Escrow Agreement, executed by the necessary parties hereto and also
executed by Escrow Agent;

          (b) Other Documentation. Such other certificates, instruments or documents required pursuant to the provisions of
this Agreement or otherwise necessary or appropriate to transfer the Purchased Assets and Assumed
Liabilities in accordance with the terms hereof and consummate the Transaction, and to vest in
Purchaser Sub and its successors and assigns full, complete, absolute, legal and equitable title to
the Purchased Assets, free and clear of all Encumbrances, including such certificates, instruments
and documents to be executed or delivered by Seller pursuant to Article 3 hereof.

ARTICLE 4. REPRESENTATIONS AND WARRANTIES OF SELLER

     Except as specifically set forth on Schedule 4 (the “Seller and Members Disclosure
Schedule”) attached to this Agreement (the parts of which are numbered to correspond to the
individual Section numbers of this Article 4), Seller and each Member hereby represents and
warrants (without limiting any other representations or warranties made by Seller and/or a Member
in this Agreement or any other Transaction Agreement), jointly and severally, to Purchaser and
Purchaser Sub as follows:

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     4.1 Organization, Good Standing, Qualification. The Seller and Members Disclosure Schedule
sets forth Seller’s jurisdiction of organization and each state or other jurisdiction in which
Seller is qualified to do business. Seller (i) is a limited liability company duly organized,
validly existing and in good standing under the laws of its jurisdiction of organization; (ii) is
duly qualified to conduct business and is in corporate and tax good standing under the laws of each
jurisdiction in which the nature of its business (including the Business), the operation of its
assets (including the Purchased Assets) or the ownership or leasing of its properties (including
the Real Property and Personal Property) requires such qualification; and (iii) has full power and
authority required to own, lease and operate its assets and to carry on its business (including the
Business) as now being conducted and as presently proposed to be conducted, except where the
failure to have such power and authority will not, and could not reasonably be expected to, have a
Material Adverse Effect on Seller.

     4.2 Charter Documents; Books and Records.

          (a) Seller has delivered to Purchaser accurate, correct and complete copies of (i) the
Certificate of Formation and Operating Agreement, including all amendments thereto, as presently in
effect; (ii) all ownership records of Seller, including the Seller’s ledger or other method for
recording ownership of Seller, and copies of any unit certificates issued by Seller; (iii) all
minutes and other records of all meetings and other proceedings (including any actions taken by
written consent or otherwise without a meeting) of the members of Seller, and any other management
body, committee, or authority thereof (collectively, the “Resolutions”); and (iv) all books
of account and other financial records of Seller.

          (b)
The minute books of Seller accurately and completely reflect all material company actions of
its members, and any other management body, committee, or authority thereof. The books of account
and other financial records of Seller are accurate and complete and have been maintained in
accordance with sound business practices.

          (c) Seller is not in violation of any of the provisions of its Certificate of Formation,
Operating Agreement or Resolutions, and no condition or circumstance exists that likely would (with
or without notice or lapse of time) constitute or result directly or indirectly in such a
violation.

     4.3 Capitalization.

          (a) The authorized units of Seller consists of 9,500,000 units. Seller has issued and
outstanding 9,500,000 units (the “Seller Units”). Schedule 4.3(a) sets forth the
name of each holder of an ownership or other beneficial interest of Seller and their respective
percentage ownership and class of units (if more than one class or series) held by such holder.
The members of Seller who will execute the Voting Agreement own one hundred percent (100%) of the
voting units of Seller. No other units or other indicia of ownership interest in Seller are issued
or outstanding. All issued and outstanding units, ownership interests of, or beneficial interests
in, Seller have been duly authorized and validly issued, are fully paid and nonassessable, have
been issued in full compliance with all applicable securities laws and other applicable Legal
Requirements and are free and clear of all Encumbrances.

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          (b) There is no (i) outstanding preemptive right, subscription, option, call, warrant or other
right to acquire any units or other securities of Seller; (ii) outstanding unit, security,
instrument or obligation that is or may become convertible into or exchangeable for any securities
of Seller; (iii) Contract under which Seller is or may become obligated to sell, issue or otherwise
dispose of or redeem, purchase or otherwise acquire any of its units or securities; or (iv) member
agreement, voting trust or other agreement, arrangement or understanding that may affect the
exercise of voting or any other rights with respect to the capital stock of Seller.

     4.4 Authority; Binding Nature of Agreements. Each of Seller and each Member has all requisite
power and authority to execute and deliver this Agreement and all other Transaction Agreements to
which it or he is a party and to carry out the provisions of this Agreement and the other
Transaction Agreements (subject, in the case of the Seller’s obligation to consummate the
Transaction, to the approval of Seller’s members as contemplated in Section 9.1(f)). The
execution, delivery and performance by Seller and each of the Members of this Agreement and the
other Transaction Agreements have been approved by all requisite action on the part of Seller,
subject to the approval of the members of
Seller. By executing this Agreement all the members of Seller acknowledge that they have
approved this Agreement and the consummation of the Transaction. This Agreement has been duly and
validly executed and delivered by each of Seller and the Members. Each of this Agreement and the
other Transaction Agreements constitutes, or upon execution and delivery, will constitute, the
legal, valid and binding obligation of each of Seller and the Members, enforceable against Seller
and the Members in accordance with its terms, subject, in the case of the Seller’s obligation to
consummate the Transaction, to the approval by Seller’s members as contemplated by Section
9.1(f).

     4.5 No Conflicts; Required Consents. The execution, delivery and performance of this
Agreement or any other Transaction Agreement by Seller and each of the Members do not and will not
(with or without notice or lapse of time):

          (a) conflict with, violate or result in any breach of (i) any of the provisions of Seller’s
Certificate of Formation or Operating Agreement; (ii) any Resolutions; (iii) any of the terms or
requirements of any Governmental Approval held by Seller or any of its employees or that otherwise
relates to the Business or any of the Purchased Assets or Assumed Liabilities; or (iv) any
provision of any Seller Contract;

          (b) give any Governmental Authority or other Person the right to (i) challenge the
Transaction; (ii) exercise any remedy or obtain any relief under any Legal Requirement or any Order
to which Seller, or any of the Purchased Assets or Assumed Liabilities, is subject; (iii) declare a
default of, exercise any remedy under, accelerate the performance of, cancel, terminate, modify or
receive any payment under any Seller Contract; or (iv) revoke, suspend or modify any Governmental
Approval;

          (c) cause Seller, Purchaser or Purchaser Sub to become subject to, or to become liable for the
payment of, any Tax, or cause any of the Purchased Assets to be reassessed or revalued by any Tax
Authority or other Governmental Authority;

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          (d) result in the imposition or creation of any Encumbrance upon or with respect to any of the
Purchased Assets; or

          (e) require Seller to obtain any Consent or make or deliver any filing or notice to a
Governmental Authority.

     4.6 Subsidiaries. Seller does not own any shares of capital stock, membership interest or
unit or other securities of, or control, directly or indirectly, any other Entity.

     4.7 Financial Statements.

          (a) Seller has previously delivered to Purchaser the following financial statements
(collectively, the “Financial Statements”): (i) the unaudited balance sheets, and the
related statements of operations, changes in members’ equity, and cash flows, of Seller as of and
for the fiscal years ended December 31, 2004 and December 31, 2005, together with the notes
thereto; and (ii) the unaudited balance sheets, and the related unaudited statements of operations,
changes in member’s equity, and cash flows, of Seller (the “Interim Balance Sheet”) as of
and for the nine months ended September 30, 2006 (the “Interim Balance Sheet Date”).

          (b) All of the Financial Statements (i) are true, accurate and complete in all respects; (ii)
are consistent with the Books and Records of Seller; (iii) present fairly and accurately the
financial condition of Seller as of the respective dates thereof and the results of operations,
changes in member’s equity and cash flows of Seller for the periods covered thereby; and (iv) have
been prepared in accordance with GAAP, applied on a consistent basis throughout the periods
covered; provided, however, that the Interim Balance Sheet is subject to year-end adjustments
consistent with past practice (which will not be material individually or in the aggregate) and do
not contain all of the footnotes required by GAAP. All reserves established by Seller and set
forth in the Interim Balance Sheet are adequate for the purposes for which they were established.

          (c) Schedule 4.7(c) sets forth an accurate, correct and complete breakdown and aging
of each of Seller’s accounts payable (including to all of its suppliers) as of September 30, 2006,
and as updated as of the Closing Date.

     4.8 Absence of Undisclosed Liabilities. Seller has no Liabilities other than (i) those set
forth in the Interim Balance Sheet; (ii) those incurred in the ordinary course of business and not
required to be set forth in the Interim Balance Sheet under GAAP; (iii) those incurred in the
ordinary course of business since the date of the Interim Balance Sheet; and (iv) those incurred in
connection with the execution of any of the Transaction Agreements.

     4.9
Absence of Changes. Since the Interim Balance Sheet Date, (i) Seller has conducted the Business in the ordinary
course of business; (ii) no event or circumstance has occurred that could reasonably have a
Material Adverse Effect on Seller; and (iii) Seller has not taken any action, agreed to take any
action, or omitted to take any action that would constitute a breach of Section 6.1 or
6.2 if such action or omission were taken between the date of this Agreement and the
Closing Date.

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     4.10 Transactions with Affiliates. Except as set forth in the Financial Statements, no
Affiliate (a) owns, directly or indirectly, any debt, equity or other interest in any Entity with
which Seller is affiliated, has a business relationship or competes other than Affiliates that own
less than five percent (5%) of the issued and outstanding capital stock of a publicly-traded
competitor of Seller; (b) is indebted to Seller, nor is Seller indebted (or committed to make loans
or extend or guarantee credit) to any Affiliate; (c) has any direct or indirect interest in any
asset (including the Purchased Assets), property or other right used in the conduct of or otherwise
related to the Business; (d) has any claim or right against Seller, and no event has occurred, and
no condition or circumstance exists, that might (with or without notice or lapse of time) directly
or indirectly give rise to or serve as a basis for any claim or right in favor of any Affiliate
against Seller; (e) is a party to any Seller Contract or has had any direct or indirect interest
in, any Seller Contract, transaction or business dealing of any nature involving Seller; or (f)
received from or furnished to Seller any goods or services (with or without consideration) since
the Interim Balance Sheet Date.

     4.11 Account Receivables. Schedule 1.1(a) sets forth an accurate and complete list of
all Receivables existing as of September 30, 2006. Each Receivable is (i) a valid and legally
binding obligation of the account debtor enforceable in accordance with its terms, free and clear
of all Encumbrances, and not subject to setoffs, adverse claims, counterclaims, assessments,
defaults, prepayments, defenses, and conditions precedent; (ii) a true and correct statement of the
account for merchandise actually sold and delivered to, or for services actually performed for and
accepted by, such account debtor; and (iii) fully collectible and will be collected within sixty
(60) days, subject to trade discounts provided in the ordinary course of business and any allowance
for doubtful accounts contained in the Interim Balance Sheet.

     4.12 Inventory. All of the items in Seller’s Inventory are (a) valued on the Financial
Statements at the lower of cost and net realizable value, on a first-in, first-out in accordance
with GAAP; (b) of good and merchantable quality, fit for the purpose for which they are intended,
and saleable and useable in the ordinary course of business; (c) free of defects and damage; and
(d) in quantities adequate and not excessive in relation to the circumstances of Seller’s Business
and in accordance with Seller’s past inventory stocking practices. All of the items in Seller’s
Inventory meet Seller’s current standards and specifications. Since September 30, 2006, there has
not been a material change in the level of Inventory or the Seller has not sold any Inventory to
distributors at prices below their standard selling prices or made any promotions or offers to
distributors outside of the ordinary course of business, consistent with pact practices. All
Inventory is, and
all equipment, supplies and other materials used in the production of the Inventory are,
located at Seller’s manufacturing location.

     4.13 Material Contracts.

          (a) Schedule 1.1(k) sets forth an accurate, correct and complete list of all Seller
Contracts to which any of the descriptions set forth below may apply (the “Material
Contracts”):

               (i) Real Property Leases, Personal Property Leases, Insurance, Contracts affecting any Seller
Intellectual Property (including, without limitation, that certain [***] Agreement with
[***] , dated [***] , as may be amended (the “ [***] ”)) or Seller’s
Information

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Systems or Software, Contracts with Contractors, Seller Benefit Plans and Governmental
Approvals;

               (ii) Any Contract for capital expenditures or for the purchase of goods or services in excess
of $10,000, except those incurred in the ordinary course of business and to be performed in three
(3) months or less;

               (iii) Any Contract obligating Seller to sell or deliver any product or service at a price
which does not cover the cost (including labor, materials and production overhead) plus the
customary profit margin associated with such product or service;

               (iv) Any Contract involving financing or borrowing of money, or evidencing indebtedness, any
liability for borrowed money, any obligation for the deferred purchase price of property in excess
of $10,000 (excluding normal trade payables) or guaranteeing in any way any Contract in connection
with any Person;

               (v) Any joint venture, partnership, cooperative arrangement or any other Contract involving a
sharing of profits;

               (vi) Any advertising Contract not terminable without payment or penalty on thirty (30) days
(or less) notice;

               (vii) Any Contract affecting any right, title or interest in or to real property;

               (viii) Any Contract with any Governmental Authority;

               (ix) Any Contract with respect to the discharge, storage or removal of effluent, waste or
pollutants;

               (x) Any Contract relating to any license or royalty arrangement;

               (xi) Any power of attorney, proxy or similar instrument;

               (xii) The Certificate of Formation, Operating Agreement and other organizational or
constitutive documents of Seller and any Contract among members of Seller;

               (xiii) Any Contract for the manufacture, service or maintenance of any product of the
Business;

               (xiv) Any Contract for the purchase or sale of any assets other than in the ordinary course of
business or for the option or preferential rights to purchase or sell any assets;

               (xv) Any requirement or output Contract;

               (xvi) Any Contract to indemnify any Person or to share in or contribute to the liability of
any Person;

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               (xvii) Any Contract for the purchase or sale of foreign currency or otherwise involving
foreign exchange transactions;

               (xviii) Any Contract containing covenants not to compete in any line of business or with any
Person in any geographical area;

               (xix) Any Contract related to the acquisition of a business or the equity of any other Entity;

               (xx) Any other Contract which (i) provides for payment or performance by either party thereto
having an aggregate value of $25,000 or more; (ii) is not terminable without payment or penalty on
thirty (30) days (or less) notice; or (iii) is between, inter alia, an Affiliate and Seller or
Member;

               (xxi) Any other Contract that involves future payments, performance of services or delivery of
goods or materials to or by Seller of an aggregate amount or value in excess of $25,000, on an
annual basis, or that otherwise is material to the Business or prospects of Seller; and

               (xxii) Any proposed arrangement of a type that, if entered into, would be a Contract described
in any of (i) through (xxi) above.

          (b) Seller has delivered to Purchaser accurate, correct and complete copies of all Material
Contracts (or written summaries of the material terms thereof, if not in writing), including all
amendments, supplements, modifications and waivers thereof. All Material Contracts are in writing.
All nonmaterial contracts of Seller do not, in the aggregate, represent a material portion of the
Liabilities of Seller.

          (c) Each Seller Contract is currently valid and in full force and effect, and is enforceable
by Seller in accordance with its terms.

          (d) Seller is not in default, and no party has notified Seller that it is in default, under
any Seller Contract. No event has occurred, and no circumstance or condition exists, that might
(with or without notice or lapse of time) (a) result in a violation or breach of any of the
provisions of any Seller Contract; (b) give any Person the right
to declare a default or exercise any remedy under any Seller Contract; (c) give any Person the right to accelerate the maturity
or performance of any Seller Contract or to cancel, terminate or modify any Seller Contract; or (d)
otherwise may have a Material Adverse Effect on Seller in connection with any Seller Contract.
Seller has not waived any of its rights under any Seller Contract.

          (e) Each Person against which Seller has or may acquire any rights under any Seller Contract
is (i) solvent and (ii) able to satisfy such Person’s material obligations and liabilities to
Seller.

          (f) The performance of the Seller Contracts will not result in any violation of or failure by
Seller to comply with any Legal Requirement.

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          (g) The Material Contracts constitute all of the Contracts necessary to enable Seller to
conduct the Business in the manner in which such Business is currently being conducted and in the
manner in which such Business is proposed to be conducted.

     4.14 Insurance. The Seller and Members Disclosure Schedule sets forth an accurate and
complete list of all insurance policies, self-insurance arrangements and fidelity bonds, currently
in effect, that insure the Business and/or the Purchased Assets (collectively, the “Insurance
Policies”). Seller has delivered to Purchaser true, correct and complete copies of all
Insurance Policies. Each Insurance Policy is valid, binding, and in full force and effect. Seller
is not in breach of any Insurance Policy, and no event has occurred which, with notice or the lapse
of time, would constitute such a breach, or permit termination, modification, or acceleration, of
any Insurance Policy. Seller has not received any notice of cancellation or non-renewal of any
Insurance Policy. The consummation of the Transaction will not cause a breach, termination,
modification, or acceleration of any Insurance Policy. There is no claim under any Insurance
Policy that has been improperly filed or as to which any insurer has questioned, disputed or denied
liability. Seller has not received any notice of, nor does Seller have any Knowledge of any facts
that might result in, a material increase in the premium for any Insurance Policy.

     4.15 Title; Sufficiency; Condition of Assets.

          (a) Seller has good and marketable title to, is the exclusive legal and equitable owner of,
and has the unrestricted power and right to sell, assign and deliver the Purchased Assets. The
Purchased Assets are free and clear of all Encumbrances of any kind or nature, except (a)
restrictions imposed in any Governmental Approval; and
(b) Encumbrances disclosed on Schedule 4.15 which will be removed and released at or prior to Closing. Upon
Closing, Purchaser Sub will acquire exclusive, good and marketable title or license to or a valid
leasehold interest in (as the case may be) the Purchased Assets and no restrictions will exist on
Purchaser Sub’s right to resell, license or sublicense any of the Purchased Assets or Assumed
Liabilities or engage in the Business.

          (b) The Purchased Assets include all the assets necessary to permit Purchaser Sub to conduct
the Business after the Closing in a manner substantially equivalent to the manner as it is being
conducted on the date of this Agreement in compliance with all Legal Requirements and to perform
all Assumed Liabilities.

          (c) All Purchased Assets are (i) in good operating condition and repair, ordinary wear and
tear excepted; and (ii) suitable and adequate for continued use in the manner in which they are
presently being used.

     4.16 Real Property Leases. Seller does not currently own nor has it ever owned, since its
inception, any Real Property. Schedule 1.1(f) sets forth an accurate, correct and complete
list of all Leased Real Property (including the street address of each Leased Real Property and the
name of the lessor) and a list of Contracts affecting each Leased Real Property. Seller has been
in lawful possession of the premises covered by each Real Property Lease since the commencement of
the original term of such Lease. Seller has delivered to Purchaser accurate, correct and complete
copies of each Real Property Lease and copies of existing title insurance policies, title reports,
surveys, Environmental Reports, if any, for the real property

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subject to the Real Property Leases.
All Real Property Leases are in good standing and are valid and effective in accordance with their
respective terms and there exists no default thereunder or occurrence or condition which could
result in a default thereunder or termination thereof.

     4.17 Intellectual Property.

          (a) Schedule 1.1(h) lists all Seller Intellectual Property, specifying in each case
whether such Seller Intellectual Property is owned or controlled by or for, licensed to, or
otherwise held by or for the benefit of Seller, including all Registered Intellectual Property
Rights owned by, filed in the name of or applied for by Seller (the “Seller Registered
Intellectual Property Rights”).

          (b) Each item of Seller Registered Intellectual Property (i) is valid, subsisting and in full
force and effect, (ii) has not been abandoned or passed into the public domain and (iii) is free
and clear of any Encumbrances.

          (c) The Seller Intellectual Property constitutes all the Intellectual Property used in and/or
necessary to the conduct of the Business as it is currently conducted, and as it is currently
planned or contemplated to be conducted, including the design, development, manufacture, use,
import and sale of the Seller Products (including those currently under development).

          (d) Each item of Seller Intellectual Property either (i) is exclusively owned by Seller and
was written and created solely by employees of Seller acting within the scope of their employment
or by third parties, all of which employees and third parties have validly and irrevocably assigned
all of their rights, including Intellectual Property Rights therein, to Seller, and no third party
owns or has any rights to any such Seller Intellectual Property, or (ii) is duly and validly
licensed to Seller for use in the manner currently used by Seller in the conduct of the Business
and, as it is currently planned or contemplated to be used by Seller in the conduct of the Business
prior to the Closing and by Purchaser Sub following the Closing.

          (e) In each case in which Seller has acquired any Intellectual Property from any Person,
Seller has obtained a valid and enforceable assignment sufficient to irrevocably transfer all
Intellectual Property Rights related thereto (including the right to seek past and future damages
with respect thereto) to Seller. No Person who has licensed Intellectual Property to Seller has
ownership rights or license rights to improvements made by Seller in such Intellectual Property.
Seller has not transferred ownership of, or granted any exclusive license of or right to use, or
authorized the retention of any exclusive rights to use or joint ownership of, any Intellectual
Property to any Person.

          (f) Neither Seller nor any of the Members has Knowledge of any facts, circumstances or
information that (i) would render any Seller Intellectual Property Rights invalid or unenforceable,
(ii) would adversely affect any pending application for any Seller Registered Intellectual Property
Right, or (iii) would adversely affect or impede the ability of Seller to use any Seller
Intellectual Property in the conduct of the Business as it is currently conducted or as it is
currently planned or contemplated to be conducted by Seller prior to Closing or by Purchaser Sub
following the Closing. Seller has not misrepresented, or failed to disclose, and has no

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Knowledge
of any misrepresentation or failure to disclose, any fact or circumstances in any application for
any Seller Registered Intellectual Property Right that would constitute fraud or a
misrepresentation with respect to such application or that would otherwise affect the validity or
enforceability of any Seller Registered Intellectual Property Right. Seller has not claimed any
status in the application for or registration of any Seller Registered Intellectual Property
Rights, including “small business status,” that would not be applicable to Purchaser Sub.

          (g) All necessary registration, maintenance and renewal fees in connection with each item of
Seller Registered Intellectual Property Rights have been paid and all necessary documents and
certificates in connection with such Seller Registered Intellectual Property Rights have been filed
with the relevant patent, copyright, trademark or other authorities in the United States or foreign
jurisdictions, as the case may be, for the purposes of maintaining such Seller Registered
Intellectual Property Rights. There are no actions that must be taken by Seller within one hundred
twenty (120) days following the Closing Date, including the payment of any registration,
maintenance or renewal fees or the filing of any responses to office actions, documents,
applications or certificates for the purposes of obtaining, maintaining, perfecting, preserving or
renewing any Registered Intellectual Property Rights. To the maximum extent provided for by, and
in accordance with, applicable laws and regulations, Seller has recorded in a timely manner each
such assignment of a Registered Intellectual Property Right assigned to Seller with the relevant
governmental authority, including the United States Patent and Trademark Office (the
“PTO”), the U.S. Copyright Office or their respective counterparts in any relevant foreign
jurisdiction, as the case may be.

          (h) Each of Seller and the Members has taken all necessary action to maintain and protect (i)
Seller’s Intellectual Property Rights, and (ii) the secrecy, confidentiality, value and Seller’s
rights in the Confidential Information and Trade Secrets of Seller and those provided by any Person
to Seller, including by having and enforcing a policy requiring all current and former employees,
consultants and contractors of Seller to execute appropriate confidentiality and assignment
agreements. All copies thereof shall be delivered to Purchaser Sub at Closing. Seller has no
Knowledge of any violation or unauthorized disclosure of any Trade Secret or Confidential
Information related to the Business, the Purchased Assets or the Assumed Liabilities, or
obligations of confidentiality with respect to such. Only the individuals named in the Seller and
Members Disclosure Schedule, which describes their relationship with Seller, have had access to
such Trade Secrets and Confidential Information, and each such individual has signed a
confidentiality agreement with respect thereto requiring such individual to hold such Trade Secrets
and Confidential Information confidential in perpetuity, and not to use such Trade Secrets and
Confidential Information except for the benefit of Seller.

          (i) The use and exploitation of the Purchased Assets in connection with the Business as it is
currently conducted, or as it is currently planned or contemplated to be conducted by Seller prior
to the Closing, including but not limited to the design, development, use, import, branding,
advertising, promotion, marketing, manufacture and sale of the Seller Products (including any
currently under development), does not and will not, and will not when operated by Purchaser Sub
substantially in the same manner following the Closing, infringe or misappropriate any Intellectual
Property Rights of any Person, violate any right of any Person (including any right to privacy or
publicity), defame or libel any Person or constitute unfair competition or trade practices under
the laws of any jurisdiction, and Seller has not received

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notice from any Person claiming that such
operation or any Seller Product (including any
currently under development) infringes or misappropriates any Intellectual Property Rights of
any Person (including any right of privacy or publicity), or defames or libels any Person or
constitutes unfair competition or trade practices under the laws of any jurisdiction (nor does
Seller have Knowledge of any basis therefor).

          (j) Seller has no Knowledge of any Person violating, infringing or misappropriating any Seller
Intellectual Property Right.

          (k) Other than patent applications included on Schedule 1.1(h), there are no
Proceedings before any Governmental Authority (including before the PTO) anywhere in the world
related to any of the Seller Intellectual Property, including any Seller Registered Intellectual
Property Rights.

          (l) No Seller Intellectual Property or Seller Products are subject to any Proceeding or any
outstanding decree, order, judgment, office action or settlement agreement or stipulation that
restricts in any manner the use, transfer or licensing thereof by Seller or that may affect the
validity, use or enforceability of such Seller Intellectual Property.

          (m) Schedule 4.17(m) lists all Seller Contracts affecting any Intellectual Property
Rights. Seller is not in breach of, nor has Seller failed to perform under, any such Seller
Contracts and, to Seller’s Knowledge, no other party to any such Seller Contracts, is in breach
thereof or has failed to perform thereunder.

          (n) Schedule 4.17(n) lists all Seller Contracts under which Seller has agreed to, or
assumed, any obligation or duty to warrant, indemnify, reimburse, hold harmless, guaranty or
otherwise assume or incur any obligation or liability, or provide a right of rescission, with
respect to the infringement or misappropriation by Seller or such other person of the Intellectual
Property Rights of any Person other than Seller.

          (o) There is no Seller Contract affecting any Seller Intellectual Property under which there
is any dispute regarding the scope of such Seller Contract, or performance under such Seller
Contract, including with respect to any payments to be made or received by Seller thereunder.

          (p)
All Seller Intellectual Property and Seller Intellectual Property Rights will be fully
transferable, alienable or licensable by Purchaser Sub without restriction and without payment of
any kind to any third party. The consummation of the Transaction as contemplated hereby will not
result in any loss of, or the diminishment in value of, any Seller Intellectual Property or any
Seller Intellectual Property Right.

          (q) Neither this Agreement nor the Transaction, including the assignment to Purchaser Sub, by
operation of law or otherwise, of any Seller Contracts will result in (i) Purchaser Sub granting to
any third party any right to, or with respect to, any Intellectual Property Right owned by, or
licensed to, Purchaser Sub; (ii) Purchaser Sub being bound by, or subject to, any non-compete or
other restriction on the operation or scope of its businesses, including the Business; (iii)
Purchaser Sub being obligated to pay any royalties or other amounts to any third party, including
without limitation any payments under the Watson Agreement; or

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(iv) the release or delivery to any
third party of any Seller Intellectual Property, including through any source code or technology
escrow agreement. No government funding, facilities of a university, college, other educational
institution or research center or funding from third parties was used in the development of any
Seller Intellectual Property. No person who was involved in, or who contributed to, the creation
or development of any Seller Intellectual Property, has performed services for the government,
university, college, or other educational institution or research center during a period of time
during which such employee, consultant or independent contractor was also performing services for
the Seller.

          (r) The Seller Products contain no Free or Copyleft Software.

          (s) Seller has not received any claim, notice or inquiry which challenges, threatens to
challenge or inquires whether there is any basis to challenge, the validity of, or the right of
Seller to use, the Seller Intellectual Property, including any such claim, notice or inquiry
arising from the filing by Seller of a “paragraph (iv) certification” under Section 505(j)(2)(A) of
the Federal Food, Drug, and Cosmetic Act (“FD&C Act”), codified at 21 U.S.C. §§ 381, 382.
Each item of Seller Intellectual Property owned by Seller has been duly registered with, filed in,
or issued by the appropriate Governmental Authority and each such registration, filing and issuance
remains in full force and effect.

     4.18 Customers, Distributors and Suppliers.

          (a) Customers. All Seller Contracts with customers were entered into by or on behalf of
Seller and were entered into in the ordinary course of business for usual quantities and at normal
prices. Each such Seller Contract with a customer involves
commitments of not less than Seller’s published list price on its standard contract and which by its express terms requires full
performance within six (6) months following Closing. As of the Closing Date, there will be no
customer deposits outstanding except the customer deposits identified on Schedule 4.18 of the
Seller and Members Disclosure Schedule. The Seller and Members Disclosure Schedule sets forth an
accurate, correct and complete:

               (i) list of all of the customers of the Business for each of the fiscal years ended December
31, 2003, 2004 and 2005, and the nine month period ended September 30, 2006;

               (ii) breakdown of the revenues received from each customer that accounted for more than $5,000
of the gross revenues of Seller, on an annualized basis, for each of the fiscal years ended
December 31, 2003, 2004 and 2005, and the nine month period ended September 30, 2006; and

               (iii) breakdown of all customer deposits held by Seller as of the date of this Agreement.

          (b) Suppliers. All Seller Contracts with suppliers were entered into by or on behalf of
Seller and were entered into in the ordinary course of business for usual quantities and at normal
prices. The Seller and Members Disclosure Schedule sets forth an accurate, correct and complete:

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               (i) list of all of the suppliers of the Business for each of the fiscal years ended December
31, 2003, 2004 and 2005, and the nine month period ended September 30, 2006;

               (ii) breakdown of the amounts paid to each supplier that received more than $5,000 from Seller
(on an annualized basis) for each of the fiscal years ended December 31, 2003, 2004 and 2005, and
the nine month period ended September 30, 2006; and

               (iii) list of all sole source suppliers of Seller.

          (c) The Seller and Members Disclosure Schedule sets forth a true, accurate and complete list
of each distributor through which Seller currently distributes the Seller Products.
Such list indicates (i) the total sales of the Seller Products to each distributor; (ii) the
product shipment volumes of the Seller Products to each such distributor, broken down by product;
(iii) the average selling prices of the Seller Products to each such distributor broken down by
product; and (iv) the contact information for each such distributor. The Seller and Members
Disclosure Schedule also sets forth (A) the pricing arrangements and other material terms related
to the Seller Products under existing volume purchase agreements to which Seller is a party and (B)
the current distributor policies of Seller covering the Seller Products with each current
distributor.

          (d) Except as expressly disclosed on Schedule 4.18(d), Seller has not entered into any
Contract under which Seller is restricted from selling, licensing or otherwise distributing any
Seller Products to any class of customers, in any geographic area, during any period of time or in
any segment of the market. There is no purchase commitment which provides that any supplier will
be the exclusive supplier of Seller or distributor. There is no purchase commitment requiring
Seller to purchase the entire output of a supplier.

          (e) Seller has not received any notice or other communication, has not received any other
information indicating, and otherwise has no Knowledge, that any current customer, supplier or
distributor identified in the Seller and Members Disclosure Schedule may cease dealing with Seller,
may otherwise materially reduce the volume of business transacted by such Person with Seller or
otherwise is materially dissatisfied with the service Seller provides such Person. Seller has no
reason to believe that any such Person will cease to do business with Purchaser or Purchaser Sub
after, or as a result of, consummation of the Transaction, or that such Person is threatened with
bankruptcy or insolvency. Seller has no Knowledge of any fact, condition or event which may, by
itself or in the aggregate, adversely affect its relationship with any such Person. Since
September 30, 2006, there has been no cancellation of backlogged orders in excess of the average
rate of cancellation prior to such date.

          (f) Neither Seller nor any of its officers or employees has directly or indirectly given or
agreed to give any rebate, gift or similar benefit to any customer, supplier, distributor, broker,
governmental employee or other Person, who was, is or may be in a position to help or hinder the
Business (or assist in connection with any actual or proposed transaction) which could subject
Seller (or Purchaser Sub after consummation of the Transaction) to any damage or penalty in any
civil, criminal or governmental litigation or proceeding or which would

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have a Material Adverse
Effect on Seller (or Purchaser Sub after consummation of the Transaction).

     4.19 Seller Products and Product Warranty. All products manufactured, processed, distributed,
shipped or sold by Seller and any services rendered by Seller have been in conformity with all
applicable contractual commitments and all expressed or implied warranties. No liability exists or
will arise for repair, replacement or damage in connection with such sales or deliveries, in excess
of the reserve therefor on the Interim Balance Sheet. The Seller and Members Disclosure Schedule sets forth an accurate,
correct and complete statement of all written warranties, warranty policies, service and
maintenance agreements of the Business. No products heretofore manufactured, processed,
distributed, sold, delivered or leased by Seller are now subject to any guarantee, written
warranty, claim for product liability, or patent or other indemnity. All warranties are in
conformity with the labeling and other requirements of the Magnuson-Moss Warranty Act and other
applicable laws. The Seller and Members Disclosure Schedule sets forth an accurate, correct and
complete list and summary description of all service agreements under which Seller is currently
obligated, indicating the terms of such agreement and any amounts paid or payable thereunder. The
product warranty and return experience for the three (3) years ended December 31, 2005 and the
interim period through the date hereof is set forth in the Seller and Members Disclosure Schedule.
The product warranty reserves on Seller’s Financial Statements were prepared in accordance with
GAAP and are adequate in light of the circumstances of which Seller is aware.

     4.20 Employees and Consultants.

          (a) Employees and Contracts. No employee of Seller has been granted the right to continued
employment by Seller or to any material compensation following termination of employment with
Seller. Seller has no Knowledge that any officer, director, employee or consultant of Seller
(collectively, the “Contractors”) intends to terminate his or her employment or other
engagement with Seller, nor does Seller have a present intention to terminate the employment or
engagement of any Contractor.

          (b) Compensation. The Seller and Members Disclosure Schedule sets forth an accurate, correct
and complete list of all (i) employees of Seller, including each employee’s name, title or
position, present annual compensation (including bonuses, commissions and deferred compensation),
accrued and unused paid vacation and other paid leave, years of service, interests in any incentive
compensation plan, estimated entitlements to receive supplementary retirement benefits, allowances
or guaranteed or other payments (whether pursuant to a contractual obligation or otherwise), and
any Seller indebtedness owed to such employees, and (ii) individuals and advisors who are currently
performing services for Seller related to the Business who are classified as “consultants” or
“independent contractors” and any guaranteed or other payments due to such parties, as well as any
Seller indebtedness owed to such parties. The Seller and Members Disclosure Schedule sets forth
all (i) bonuses, severance payments, termination pay and other special compensation of any kind
paid to, accrued with respect to, or that would be payable to (as a result of the Transaction), any
present or former Contractor since the Interim Balance Sheet Date; (ii) increases in any employee’s
wage or salary since the Interim Balance Sheet Date or (iii) increases or changes in any other
benefits or insurance provided to

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any employees since the Interim Balance Sheet Date. No employee
of Seller is eligible for payments that would constitute “parachute payments” under Section 280G of
the Code.

          (c) Disputes. There are no claims, disputes or controversies pending or, to the Knowledge of
Seller, threatened involving any employee or group of employees. Seller has not suffered or
sustained any work stoppage and no such work stoppage is threatened.

          (d) Compliance with Legal Requirements. Seller has complied with all Legal Requirements
related to the employment of its employees, including provisions related to wages, hours, leaves of
absence, equal opportunity, occupational health and safety, workers’ compensation, severance,
employee handbooks or manuals, collective bargaining and the payment of social security and other
Taxes. Seller has no Liability under any Legal Requirements related to employment and attributable
to an event occurring or a state of facts existing prior to the date thereof.

          (e) WARN Act. Seller is in full compliance with the Worker Readjustment and Notification Act
(the “WARN Act”) (29 U.S.C. § 2101), including all obligations to promptly and correctly
furnish all notices required to be given thereunder in connection with any “plant closing” or “mass
layoff” to “affected employees”, “representatives” and any state dislocated worker unit and local
government officials. No reduction in the notification period under the WARN Act is being relied
upon by Seller. The Seller and Members Disclosure Schedule sets forth an accurate, correct and
complete list of all employees terminated (except with cause, by voluntarily departure or by normal
retirement), laid off or subjected to a reduction of more than 50% in hours or work during the two
full calendar months and the partial month preceding this representation and warranty.

          (f) Unions. Seller has no collective bargaining agreements with any of its employees. There
is no labor union organizing or election activity pending or, to the Knowledge of Seller,
threatened with respect to Seller.

     4.21 Seller Benefit Plans. Seller has maintained and funded all of its employee benefit plans
(collectively, the “Seller Benefit Plans”) in accordance with their terms and all
applicable laws. Neither Seller nor any Member of the Controlled Group maintains or contributes
to, or has ever maintained or contributed to, any Defined Benefit Plan or Multiemployer Plan.
Nothing contained in any of the Seller Benefit Plans will obligate Purchaser or Purchaser Sub to
provide any benefits to employees, former employees or beneficiaries of employees or former
employees, or to make any contributions to any plans from and after the Closing.

     4.22 Compliance with Laws.

          (a) Seller is, and at all times within the last five (5) years, in full compliance, with each
Legal Requirement that is applicable to Seller or any of Seller’s properties, assets, products, or
articles (including the Purchased Assets), operations or businesses (including the Business), and
no event has occurred, and no condition or circumstance exists, that might (with or without notice
or lapse of time) constitute, or result directly or indirectly in, a default under, a breach or
violation of, or a failure comply with, any such Legal Requirement, including without

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limitation in
each case any such Laws relating to the generation, discharge, release, containment, storage,
transportation, disposal, assessment or cleanup of hazardous materials or other contaminants or
similar materials. Seller has not received any notice from any third party regarding any actual,
alleged or potential violation of any Legal Requirement. There are no “bulk sales” Legal
Requirements applicable to the Transaction.

          (b) To the Knowledge of Seller, no Governmental Authority has proposed or is considering any
Legal Requirement that may affect Seller, Seller’s properties, assets (including the Purchased
Assets), operations or businesses (including the Business as presently conducted and as currently
proposed to be conducted), or Seller’s rights thereto, except to the extent that any such Legal
Requirement, if adopted or otherwise put into effect, individually or in the aggregate, will not
have a Material Adverse Effect on Seller.

          (c) Without in any way limiting the generality of Section 4.22(a) and (b), each of
Seller and each Member further represents that during the past five (5) years it has complied in
all material respects with all applicable requirements of: (1) the United States Food and Drug
Administration (“FDA”); (2) Titles XI, XVIII and XIX of the Social Security Act and its
implementing regulations, manual issuances, guidance documents and other administrative and
interpretative rulings, as administered and enforced by either the Centers for Medicare & Medicaid
Services and the Office of Inspector General both within the United States Department of Health and
Human Services; (3) each of the regulatory bodies in those member states of the European Economic
Community in which the Seller has distributed its products, directly or indirectly; and (4) each of
the regulatory bodies of any other country or territory in which the Seller has distributed its
products, directly or indirectly (each, a “Third Country”), including without limitation in
each case:

               (i) all applicable FDA pre-market clearance (“510(k)”) or pre-market approval
(“PMA”) requirements set forth in 21 C.F.R. parts 807 and 814, respectively, and in the
clearance and approval letters from the FDA; all applicable CE-MDD marking requirements set forth
in 93/42/EEC; the Medical Device Directive, as implemented in each member country (the
“MDD”), and any similar requirement set forth in the laws or regulations of any Third
Country; including, in each case, the requirement to obtain a new clearance or approval for
modifications to existing products;

               (ii) all export requirements of the FD&C Act;

               (iii) all establishment registration and device listing requirements set forth in 21 C.F.R.
part 807; in the MDD or in the laws or regulations of any Third Country;

               (iv) all requirements set forth in 21 C.F.R. part 820; in the MDD or in the laws or
regulations of any Third Country;

               (v) all complaint handling requirements set forth in 21 C.F.R. part 820.198; in the MDD or in
the laws or regulations of any Third Country; including without limitation the record keeping and
investigation requirements thereof;

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               (vi) the medical device reporting requirements set forth in 21 C.F.R. part 803; the adverse
event reporting requirements set forth in the MDD and any similar requirements set forth in the
laws or regulations of any Third Country;

               (vii) neither Seller, the Members, nor, to the best Knowledge of Seller and the Members, any
of its full-time or part-time personnel (employees or contractors) has, within the past five (5)
years received or been the subject of any FDA Form 483, letter setting out certain deficiencies,
warning letter, injunction proceeding, consent decree or consent decree proceeding, seizure, PMA
suspension or recall by the FDA or other Federal authority, or has been cited or alleged by the
FDA or other regulatory authority within the last five (5) years as failing to comply with
regulatory requirements or guidelines in the performance of services; and

               (viii) the removal and corrections requirements set forth in 21 C.F.R. part 806; in the MDD or
in the laws or regulations of any Third Country.

          (d) No product of the Seller has been withdrawn, suspended or discontinued as a result of any
action by the FDA or has been the subject of a recall or field action whether
voluntary or otherwise, or any other similar Governmental Authority by Seller or, to the
Knowledge of Seller and each Member, any licensee of any of the Seller’s products, in the United
States or outside the United States (whether voluntarily or otherwise), in each case, within the
past five (5) years. No proceedings in the United States or outside of the United States (whether
completed or pending) seeking the withdrawal, suspension or seizure of any product of Seller are
pending (i) against Seller or (ii) to the Knowledge of Seller and the Members, against any licensee
of any of Seller’s products.

          (e) Neither Seller, nor any Representative of Seller, (i) has made any unlawful domestic or
foreign political contributions; (ii) has made any payment or provided services which were not
legal to make or provide or which Seller or such Representative should have known were not legal
for the payee or the recipient of such services to receive; (iii) has received any payments,
services or gratuities which were not legal to receive or which Seller or such Representative
should have known were not legal for the payor or the provider to make or provide; (iv) has had any
transactions or payments which are not recorded in its accounting books and records or disclosed in
its financial statements; (v) has had any off-book bank or cash accounts or “slush funds”; (vi) has
made any payments to governmental officials in their individual capacities for the purpose of
affecting their action or the action of the government they represent to obtain special
concessions; or (vii) has made illegal payments to obtain or retain business. The representative
in this paragraph in no way limit the other representations set out in this Article 4.22.

          (f) The Seller is not sponsoring or otherwise participating in any clinical trial of any
medical device other than the clinical trials set forth in Schedule 4.22(f). For the
trials set forth in that Schedule, the Seller represents that the trial is being conducted pursuant
to an FDA approved Investigational Device Exemption and that it and its Investigators and Contract
Research Organizations have complied fully with all applicable FDA regulations including those at
21 C.F.R. parts 50, 54, 56, and 812 and that all adverse events and deviations from protocol have
been timely reported to the FDA.

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          (g) With respect to any Seller disclosure related to the representations and warranties of
Seller and Members contained in this Section 4.22, whether or not cross referenced or
disclosed on Schedule 4.22 or elsewhere on the Seller and Member Disclosure Schedule, the
parties hereto agree that any Damages arising therefrom will be treated as Purchaser Damages for
which Seller and the Members, jointly and severally, will indemnify, defend and hold harmless
Purchaser, Purchaser Sub and its Representatives in accordance with the provisions of Section
11 hereto.

     4.23 Governmental Approvals.

          (a) Seller has all Governmental Approvals that are necessary or appropriate in connection with
Seller’s ownership and use of its properties or assets (including the Purchased Assets) or Seller’s
operation of its businesses (including the Business). Seller has made all filings with, and given
all notifications to, all Government Authorities as required by all applicable Legal Requirements.
Schedule 1.1(l) contains an accurate, correct and complete list and summary description of
each such Governmental Approval, filing or notification. All products sold in the United States
that require FDA approval or clearance, as the case may be, or the Underwriters Laboratories, all
products sold in Canada that require the approval of the Canadian Standards Association, all
products sold in European Economic Community that require approval of the regulatory bodies of the
member states thereof, and all products sold in any other country or territory in which the Seller
has distributed its products that require the approval of such respective regulatory bodies
thereof, directly or indirectly, as applicable, have been so approved. All such approvals are set
forth in the Seller and Members Disclosure Schedule and remain in full force and effect, and there
are no notices related to the withdrawal of any such approval or requiring any modification of a
product in order to preserve any such approval.

          (b) Each such Governmental Approval, filing and notification is valid and in full force and
effect, and there is not pending or threatened any Proceeding which could result in the suspension,
termination, revocation, cancellation, limitation or impairment of any such Governmental Approval,
filing or notification. No violations have been recorded in respect of any Governmental Approvals,
and Seller knows of no meritorious basis therefor. No fines or penalties are due and payable in
respect of any Governmental Approval or any violation thereof.

          (c) Seller has delivered to Purchaser or Purchaser Sub, as the case may be, accurate and
complete copies of all of the Governmental Approvals, filings and notifications identified in
Schedule 1.1(l), including all renewals thereof and all amendments thereto. All
Governmental Approvals are freely assignable to Purchaser Sub.

     4.24 Proceedings and Orders.

          (a) There is no Proceeding pending or threatened against or affecting Seller, any of Seller’s
properties, assets (including the Purchased Assets), operations or businesses (including the
Business), or Seller’s rights relating thereto. To Seller’s Knowledge, no event has occurred,
and no condition or circumstance exists, that might directly or indirectly give rise to or
serve as a basis for the commencement of any such Proceeding. Seller has delivered to Purchaser
true, accurate and complete copies of all pleadings, correspondence and other

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documents relating to
any such Proceeding. No insurance company has asserted in writing that any such Proceeding is not
covered by the applicable policy related thereto.

          (b) Neither Seller, its Members, officers, managers, agents or employees, nor any of Seller’s
properties, assets (including the Purchased Assets), operations or businesses (including the
Business), nor Seller’s rights relating to any of the foregoing, is subject to any Order or any
proposed Order, except to the extent that any such proposed Order, if issued or otherwise put into
effect, individually or in the aggregate, will not have a Material Adverse Effect on Seller.

     4.25 Environmental Matters.

          (a) The operations of the Business at the premises demised under the Real Property Lease, and
said premises, are currently in compliance with Environmental and Safety Laws applicable to its
operations and business at such facility. Seller has received no written notice from any
Governmental Authority of any non-compliance with such laws, ordinances, regulations or orders by
Seller with respect to the premises demised under the Real Estate Lease.

          (b) Seller is in compliance in all material respects with all applicable Environmental and
Safety Laws, which compliance includes the possession by Seller of all permits, authorizations and
other Governmental Approvals required under applicable Environmental and Safety Laws, and
compliance with the terms and conditions thereof, including but not limited to compliance with
federal, state and local air quality laws and regulations, wastewater and stormwater discharge
requirements, Hazardous Materials and hazardous waste requirements, ground water laws and
regulations and wetlands requirements, as applicable. The Seller has not received any notice or
other communication (in writing or otherwise), whether from a Governmental Authority, citizens
group, employee or otherwise, that alleges that seller is not in compliance with any Environmental
and Safety Law, and, to the Knowledge of the Seller, there are no circumstances that may prevent or
interfere with the Seller’s compliance with any Environmental and Safety Law in the future. No
current or prior owner of any property leased or controlled by the Seller has received any notice
or other communication (in writing or otherwise), whether from a Government Authority, citizens
group, employee or otherwise, that alleges that such current or prior owner or the Seller is not in
compliance with any Environmental and Safety Law. All Governmental Approvals currently held by the
Seller pursuant to Environmental and Safety Laws are identified in Seller and Members Disclosure
Schedule 4.25(b).

          (c)
No hazardous Substances are, or have been, used, stored, generated, disposed of, managed or
transported on, under or about Seller’s facilities; there have been no releases or discharges of
Hazardous Materials on, under or about the Seller’s facilities; and no aboveground storage tanks or
underground storage tanks are located on or used by Seller in connection with Seller’s facilities.

          (d) There are no institutional controls or other use or deed restrictions, and there are no
liens, applicable to or on the premises, in connection with the use or presence of Hazardous
Materials on the Seller’s facilities.

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          (e) Neither the Seller nor any Member has entered into, or been asked to enter into, any
consent decree, compliance order, or administrative order or been subject to or, to Seller’s or any
Member’s Knowledge, threatened with any civil or criminal enforcement action, with respect to
Seller’s facilities.

          (f) Neither Seller nor any Member has contractually, by operation of law or by Environmental
and Safety Laws, or otherwise, assumed or succeeded to any Environmental and Safety Laws Liability
of any predecessors or any other person with respect to Seller’s facilities.

          (g) Seller and each Member have delivered to Purchaser full and complete copies of all
reports, data and other materials pertaining to Hazardous Materials or other environmental matters
in its possession or under its control with respect to Seller’s facilities.

     4.26 Taxes.

          (a) Seller has timely filed all Tax Returns that it or he was required to file, and such Tax
Returns are true, correct and complete in all respects. All Taxes payable in respect to income
reflected on such Tax Returns or on subsequent assessments with respect thereto have been paid in
full on a timely basis, and no other Taxes are payable by Seller (or by the Members with respect to
Seller) with respect to any period ending prior to the date of this Agreement, whether or not shown
due or reportable on such Tax Returns, other than Taxes for which adequate accruals (by way of
accrued Tax distributions or otherwise) have been provided in its Financial Statements. Seller has
withheld and paid all Taxes required to have been withheld and paid in connection with amounts paid
or owing to any employee, independent contractor, creditor, member, or other third party. Seller
has no liability for unpaid Taxes accruing after the date of its latest Financial Statements except
for Taxes incurred in the ordinary course of
business. Seller has properly and accurately filed all returns or other deposit forms and
paid all Employment Taxes due for the period ending on the Closing Date. “Employment Taxes” are
any and all FICA (Federal Insurance Contributions Act), FUTA (Federal Unemployment Tax) and any
income taxes due on employees’ wages required to be withheld by the Seller. There are no liens for
Taxes on the properties of Seller, other than liens for Taxes not yet due and payable.

          (b) Seller has treated itself as owner of each of the Purchased Assets for Tax purposes. None
of the Purchased Assets is the subject of a “safe-harbor lease” within the provisions of former
Section 168(f)(8) of the Code, as in effect prior to amendment by the Tax Equity and Fiscal
Responsibility Act of 1982. None of the Purchased Assets directly or indirectly secures any debt
the interest on which is tax exempt under Section 103(a) of the Code. None of the Purchased Assets
is “tax-exempt use property” within the meaning of Section 168(h) of the Code.

          (c) The Seller and each of the Members are “United States persons” within the meaning of
Section 7701(a)(30) of the Code.

     4.27 Brokers. Seller has not retained any broker or finder or incurred any liability or
obligation for any brokerage fees, commissions or finders fees with respect to this Agreement or
the Transaction.

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     4.28 Solvency. Seller is not entering into the Transaction with the intent to hinder, delay
or defraud any Person to which it is, or may become, indebted. The Purchase Price is not less than
the reasonably equivalent value of the Purchased Assets less the Assumed Liabilities. Seller’s
assets, at a fair valuation, exceed its liabilities, and Seller is able, and will continue to be
able after the Closing of the Transaction, to meet its debts as they mature and will not become
insolvent as a result of the Transaction. After the Closing of the Transaction, Seller will have
sufficient capital and property remaining to conduct the business in which it will thereafter be
engaged.

     4.29 No Other Agreement. Other than for sales of assets in the ordinary course of business,
neither Seller, nor any of its Representatives, has entered into any Contract with respect to the
sale or other disposition of any assets (including the Purchased Assets) or capital stock of Seller
except as set forth in this Agreement.

     4.30 Full Disclosure.

          (a) Neither this Agreement nor any of the other Transaction Agreements, (i) contains or will
contain as of the Closing Date any untrue statement of fact or (ii) omits or will omit to state any
material fact necessary to make any of the representations, warranties or other statements or
information contained herein or therein (in light of the circumstances under which they were made)
not misleading.

          (b) There is no fact (other than publicly known facts related exclusively to political or
economic matters of general applicability that will adversely affect all Entities comparable to
Seller) that may have a Material Adverse Effect on Seller.

          (c) All of the information set forth in the Seller and Members Disclosure Schedule, and all
other information regarding Seller or Seller’s properties, assets (including the Purchased Assets),
operations, businesses (including the Business), Liabilities, financial performance, net income and
prospects that has been furnished to Purchaser or any of its Representatives by or on behalf of
Seller or any of Seller’s Representatives, is accurate, correct and complete in all respects.

          (d) Each representation and warranty set forth in this Article 4 is not qualified in
any way whatsoever except as explicitly provided therein, will not merge on Closing or by reason of
the execution and delivery of any Contract at the Closing, will remain in force on and immediately
after the Closing Date, is given with the intention that liability is not limited to breaches
discovered before Closing, is separate and independent and is not limited by reference to any other
representation or warranty or any other provision of this Agreement, and is made and given with the
intention of inducing Purchaser and Purchaser Sub to enter into this Agreement.

     4.31 Private Placement.

          (a) Purchase Entirely for Own Account. Each of Seller and the Members is acquiring the Shares
to be received in the Transaction (the “Securities”) for investment for each of Seller’s
and the Member’s respective own account, not as a nominee or agent and not with a view to the
resale or distribution of any
part thereof, and neither Seller nor any of the Members

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has no present intention of selling,
granting any participation in, or otherwise distributing the same.

          (b) Disclosure of Information. Each of Seller and each Member has received all the
information it or he considers necessary or appropriate for deciding whether to obtain the Shares
as consideration in this Transaction. Each of Seller and each Member has had an opportunity to ask
questions and receive answers from Purchaser and Purchaser Sub regarding the rights, preferences
and privileges under the Shares and the business, properties, prospects and financial condition of
Purchaser and Purchaser Sub.

          (c) Investment Experience. Each of Seller and each Member acknowledges that it or he is able
to fend for itself or himself, can bear the economic risk of owning the Shares, and has such
knowledge and experience in financial or business matters that it or he is capable of evaluating
the merits and risks of owning the Shares. Each of Seller and each Member acknowledges that its or
his ownership of the Shares involves a high degree of risk and that Seller is able, without
materially impairing its financial condition, to hold the Shares for an indefinite period of time
and to suffer a complete loss of its or his investment.

          (d) Accredited Investor; U.S. Persons; Non-U.S. Persons. Each of Seller and each Member is an
“accredited investor” within the meaning of Rule 501 of Regulation D promulgated under the
Securities Act, as presently in effect and shall submit to the Company such further assurances of
such status as may be reasonably requested by the Company. Each Member that is not an “accredited
investor” hereby acknowledges that either alone or with such Member’s purchaser representative such
Member has knowledge and experience in financial and business matter such that such Member is
capable of evaluating the merits and risks of the prospective investment.

          (e) Restricted Securities. Each of Seller and each Member understands that the Shares are
characterized as “restricted securities” under the federal securities laws in that they are being
acquired from Purchaser in a transaction not involving a public offering and that under such laws
and applicable regulations such Shares may be resold without registration under the Securities Act
only in certain limited circumstances. In this connection, Seller is familiar with Rule 144
promulgated under the Securities Act, as presently in effect, and understands the resale
limitations imposed thereby and by the Securities Act. EACH OF SELLER AND EACH MEMBER UNDERSTANDS
AND ACKNOWLEDGES HEREIN THAT AN INVESTMENT IN PURCHASER’S SHARES INVOLVES AN EXTREMELY HIGH DEGREE
OF RISK AND MAY RESULT IN A COMPLETE LOSS OF ITS INVESTMENT. Each of Seller and each Member
understands that the Shares have not been and will not be registered under the Securities Act and
have not been and will not be registered or qualified in any state in which they are offered, and
thus such party will not be able to resell or otherwise transfer its or his Shares, as applicable,
unless they are registered under the Securities Act and registered or qualified under
applicable state securities laws, or an exemption from such registration or qualification is
available. Neither Seller nor any of the Members has an immediate need for liquidity in connection
with this investment, anticipates that Seller will be required to sell its or his Shares in the
foreseeable future.

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          (f) Further Limitations on Disposition. Without in any way limiting the representations set
forth above, each of Seller and each of the Members further agrees not to make any disposition of
all or any portion of the Shares unless and until the transferee has agreed in writing for the
benefit of Purchaser to be bound by this Section 4.31, and:

               (i) There is then in effect a registration statement under the Act covering such proposed
disposition and such disposition is made in accordance with such registration statement; or

               (ii) (a) Seller and/or such Members, as applicable, shall have notified Purchaser of the
proposed disposition and shall have furnished Purchaser with a detailed statement of the
circumstances surrounding the proposed disposition and (b) if reasonably requested by Purchaser,
shall have furnished Purchaser with an opinion of counsel reasonably satisfactory to Purchaser that
such disposition will not require registration of such shares under the Securities Act.

               (iii) Notwithstanding the provisions of paragraphs (i) and (ii) above, no such registration
statement or opinion of counsel shall be necessary for a transfer by Seller to a member of Seller,
or to the estate of any such member or retired member or the transfer by gift, will or intestate
succession by any member to his or her spouse or to the siblings, lineal descendants or ancestors
of such member or his or her spouse, if the transferee agrees in writing to be subject to the terms
hereof to the same extent as if he or she were Seller hereunder.

          (g) Legends. It is understood that the certificates evidencing the Shares may bear one or all
of the following or substantially similar legends:

               (i) “THESE SECURITIES HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED.
THEY MAY NOT BE SOLD, OFFERED FOR SALE, PLEDGED OR HYPOTHECATED IN THE ABSENCE OF A REGISTRATION
STATEMENT IN EFFECT WITH RESPECT TO THE SECURITIES UNDER SUCH ACT OR AN OPINION OF COUNSEL
SATISFACTORY TO THE COMPANY THAT SUCH
REGISTRATION IS NOT REQUIRED OR UNLESS SOLD PURSUANT TO RULE 144 OF SUCH ACT.”

               (ii) Any legend required by the Bylaws of the Purchaser or applicable state securities laws.

          (h) Residency. The residency of each Member is correctly set forth in the opening paragraph
of this Agreement.

          (i) Reliance by Purchaser and Purchaser Sub. Each of Seller and each Member understands that
the representations, warranties, covenants and acknowledgements set forth in this Section
4.31 constitute a material inducement to Purchaser and Purchaser Sub to enter into this
Agreement.

          (j) No Reliance on Others. Each of Seller and each Member acknowledges that it or he is not
relying upon any person, firm or corporation, other than (i) Purchaser and its officers and
directors, in making its investment or decision to invest in Purchaser and (ii) the

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Member
Representative, as may be applicable. Each of Seller and each Member acknowledges that the fees
and expenses of Member Representative in an estimated amount of $5,000 are being paid for by
Purchaser.

          (k) Section 16 and Other Commission Filings. Each of Seller and each Member acknowledges and
agrees that it or he shall be solely responsible for timely making any required filings with the
Commission, including without limitation any Section 16 filings or filings on Schedule 13D or 13G,
on behalf of itself or its Affiliates and acknowledges and agrees neither Purchaser, Purchaser Sub,
nor Purchaser Representatives shall have any responsibility or obligations to the Seller, Members
or their Affiliates in connection therewith.

          (l) No Short Sales or Other Transactions in the Common Stock. Between the time each of Seller
and each Member learned about the Transaction contemplated by this Agreement and the date of this
Agreement, none of such Persons has engaged in any short sales or similar transactions with respect
to Purchaser’s Common Stock, nor has such Person, directly or indirectly, caused any other Person
to engage in any short sales or similar transactions with respect to the Purchaser’s Common Stock.
After the date of this Agreement and prior to the Closing Date, each of Seller and each Member
agrees not to engage in any short sales or other purchase or sale transactions with respect to
Purchaser’s Common Stock, nor directly or indirectly, cause any Person to engage in any short sales
or other purchase or sale transactions with respect to Purchaser’s Common Stock.

     4.32 Bank Accounts. Schedule 4.32 sets forth an accurate and complete list of all
Bank Accounts, including the names and addresses of the financial institutions in which Seller has
a Bank Account and the names of all persons authorized to draw thereon or with access thereto.

     4.33 Investments. The Seller and Members Disclosure Schedule sets forth an accurate and
complete list of all certificates of deposit, debt and equity securities and other investments
owned, beneficially or of record, by Seller (collectively, the “Investments”). Seller has
good and marketable title to all of the Investments. The Investments are (a) properly valued at
the lower of cost or market; (b) readily marketable; and (c) fully paid and not subject to
assessment or other claims upon the holder thereof.

     4.34 Product Liability.

          (a) The Business is not subject to any Liabilities or Damages arising from any injury to
person or property or as a result of ownership, possession or use of any Seller Product
manufactured, processed, distributed, shipped or sold prior to the Closing Date. All such
Liabilities and Damages are fully covered by product liability insurance or otherwise provided for,
and Seller shall properly satisfy and discharge all such Liabilities and Damages. There have been
no recalls of any Seller Products, and to the Knowledge of Seller, none are threatened or pending,
and no report has been filed or is required to have been filed with respect to any Seller Products
under the National Vehicle Safety Act of 1966, the Consumer Products Safety Act, as amended, or
under any other law, rule or regulation. No circumstances exist involving the safety aspects of
any Seller Products that would cause any obligation to report to any Governmental Authority. There
are no, and within the last twelve (12) months there have not been any, actions,

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claims or threats
thereof related to product liability against or involving Seller or any Seller Products and no such
actions, claims or threats have been settled, adjudicated or otherwise disposed of within the last
twelve (12) months.

          (b) No shipment or other delivery of Seller Products made or to be made by Seller on or prior
to the Closing Date was or as of the Closing Date will be (i) adulterated or misbranded within the
meaning of the FD&C Act, as amended; (ii) an article which may not under the provisions of Section
404 or 405 of such Act be introduced into interstate commerce or (iii) adulterated or misbranded
within the meaning of any pure food laws or ordinances of any state or other jurisdiction to which
such articles are shipped.

          (c)
There are no citations, decisions, adjudications or written statements by any Governmental
Authority or consent decrees between any Governmental Authority and Seller stating that any Seller
Product is (i) defective or unsafe or (ii) fails to meet any standards promulgated by any such
standards. There is no (A) fact or condition related to any Seller Product that would impose upon
Seller a duty to recall any Seller Product or (B) material liability for returns or other product
liability claims with respect to any Seller Product not adequately reserved on the Closing Balance
Sheet in accordance with GAAP.

     4.35 Foreign Corrupt Practices Act.

          (a) Seller and its Representatives have not, to obtain or retain business, directly or
indirectly offered, paid or promised to pay, or authorized the payment of, any money or other thing
of value (including any fee, gift, sample, travel expense or entertainment with a value in excess
of one hundred dollars ($100.00) in the aggregate to any one individual in any year) or any
commission payment to:

               (i) any person who is an official, officer, agent, employee or representative of any
Governmental Authority or of any existing or prospective customer (whether government owned or
nongovernment owned);

               (ii) any political party or official thereof;

               (iii) any candidate for political or political party office; or

               (iv) any other individual or entity;

while knowing or having reason to believe that all or any portion of such money or thing of value
would be offered, given, or promises, directly or indirectly, to any such official, officer, agent,
employee, representative, political party, political party official, candidate, individual, or any
entity affiliated with such customer, political party or official or political office.

          (b) Seller has made all payments to third parties by check mailed to such third parties’
principal place of business or by wire transfer to a bank located in the same jurisdiction as such
party’s principal place of business.

          (c) Each transaction is properly and accurately recorded on the Books and Records of Seller,
and each document upon which entries in Seller’s Books and Records are

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based is complete and
accurate in all respects. Seller maintains a system of internal accounting controls adequate to
insure that Seller maintains no off-the-books accounts and that Seller’s assets are used only in
accordance with Seller’s management directives.

     4.36 Export Controls/Anti-Boycott & Embargoes. Seller represents, certifies and warrants that
it has at all times been in compliance with all U.S. export control and anti-boycott & embargo
statutes, regulations, guidelines, and policies of the U.S. Department of State, Department of
Commerce and the Department of the Treasury. Moreover, Seller further represents, certifies and
warrants that it has neither directly nor indirectly sold any product or provided any service
during the last five (5) years to any entity subject to any U.S. Government Specially Designated or
Blocked Persons list or otherwise subject to any U.S.-sanctioned boycott.

     4.37 No Additional Representations. Seller is not making any representations or warranties,
express or implied, of any nature whatsoever with respect to the Assets or the Business, except for
the representations and warranties in this Article 4, and except as otherwise expressly
stated herein.

ARTICLE 5. REPRESENTATIONS AND WARRANTIES OF PURCHASER

     Except as specifically set forth on the Schedule 5 (the “Purchaser Disclosure
Schedule”) attached to this Agreement (the parts of which are numbered to correspond to the
applicable Section numbers of this Agreement), Purchaser hereby represents and warrants as of the
date hereof to Seller as follows:

     5.1 Organization and Good Standing. Purchaser is a corporation duly organized, validly
existing and in good standing under the laws of its jurisdiction of organization.

     5.2 Authority; Binding Nature of Agreements. Purchaser has all requisite corporate power and
authority to execute and deliver this Agreement and all other Transaction Agreements to which it is
a party and to carry out the provisions of this Agreement and the other Transaction Agreements.
The execution, delivery and performance by Purchaser of this Agreement and the other Transaction
Agreements have been approved by all requisite action on the part of Purchaser. This Agreement has
been duly and validly executed and delivered by Purchaser. Each of this Agreement and the other
Transaction Agreements constitutes, or upon execution and delivery, will constitute, the legal,
valid and binding obligation of Purchaser, enforceable against Purchaser in accordance with its
terms, except as may be limited by bankruptcy, insolvency, reorganization, moratorium and other
similar laws and equitable principles related to or limiting creditors’ rights generally and
by general principles of equity.

     5.3 No Conflicts; Required Consents. The execution, delivery and performance of this
Agreement or any other Transaction Agreement by Purchaser do not and will not (with or without
notice or lapse of time):

          (a) conflict with, violate or result in any breach of (i) any of the provisions of Purchaser’s
Certificate of Formation or Operating Agreement; (ii) any resolutions adopted by Purchaser’s
members, or its board of directors or committees thereof; (iii) any of the terms or requirements of
any Governmental Approval held by Purchaser or any of its employees or that

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otherwise relates to
Purchaser’s business; or (iv) any provision of a Contract to which Purchaser is a party;

          (b) give any Governmental Authority or other Person the right to (i) challenge the
Transaction; (ii) exercise any remedy or obtain any relief under any Legal Requirement or any Order
to which Purchaser or any of its assets is subject; or (iii) declare a default of, exercise any
remedy under, accelerate the performance of, cancel, terminate or modify any Contract to which
Purchaser is a party; or

          (c) require Purchaser to obtain any Consent or make or deliver any filing or notice to a
Governmental Authority.

     5.4 Brokers. Purchaser has not retained any broker or finder or incurred any liability or
obligation for any brokerage fees, commissions or finders fees with respect to this Agreement or
the Transaction.

     5.5 Purchaser Shares. Upon consummation of the transactions contemplated hereby and the
issuance and delivery of certificates representing the Shares as provided in this Agreement, the
Shares will be (i) validly issued, fully paid, non-assessable shares, and (ii) free and clear of
all liens, pledges or other encumbrances, other than as explicitly described herein.

     5.6 Financial Ability. Purchaser has sufficient funds to consummate the transactions
contemplated by this Agreement and knows of no circumstance or condition that will prevent the
availability at the Closing Date of such funds.

     5.7 Full Disclosure. None of the representations and warranties contained in this Article
5, when all such representations and warranties are read together in their entirety, (i)
contains any untrue statement of fact or (ii) omits or will omit to state any fact necessary to
make such representations and warranties (in light of the circumstances under which they were made)
not misleading.

ARTICLE 6. PRE-CLOSING COVENANTS

     6.1 Seller’s Conduct of the Business Prior to Closing. From the date of this Agreement until
the Closing Date, Seller shall, and shall cause its members, officers, managers and employees, to:

          (a) Conduct the Business in the ordinary course of business;

          (b) Pay all of its Liabilities and Taxes when due, subject to good faith disputes over such
Liabilities or Taxes;

          (c) Maintain insurance coverage in amounts adequate to cover the reasonably anticipated risks
of Seller;

          (d) Use commercially reasonable efforts to (i) preserve intact all rights of the Business to
retain its employees and (ii) maintain good relationships with employees, licensors,

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licensees,
suppliers, contractors, distributors, customers, and others having business dealings with the
Business; and

          (e) Use best efforts to maintain and operate Seller’s facilities and the business in
compliance with Environmental and Safety Laws and to maintain compliance with the representations
and warranties in Section 4.25 above.

     6.2 Restrictions on Seller’s Conduct of the Business Prior to Closing. From the date of this
Agreement until the Closing Date, Seller shall not, and shall cause its members, officers, managers
and employees, not to:

          (a)
Enter into, create, incur or assume (i) any borrowings under capital leases or (ii) any
obligations which may have a Material Adverse Effect on Seller or Purchaser Sub’s ability to
conduct the Business in substantially the same manner and condition as currently conducted by
Seller;

          (b) Acquire by merging or consolidating with, or by purchasing any equity securities or assets
(which are material, individually or in the aggregate, to Seller) of, or by any other manner, any
business or any Entity;

          (c) Sell, transfer, lease, license or otherwise encumber any of its material assets (including
the Purchased Assets), except for the sale of Inventory in the Ordinary Course of Business;

          (d) Take any action not announced prior to the date of this Agreement to the customers,
suppliers or distributors of Seller, including providing promotions, coupons, discounts or price
increases;

          (e) Enter into any agreements or commitments with another Person, except on commercially
reasonable terms in the ordinary course of business;

          (f) Violate any Legal Requirement applicable to Seller;

          (g) Change or announce any change to the Seller Products or any services sold by Seller;

          (h) Violate, terminate or amend any Seller Contract or Governmental Approval;

          (i) Commence a Proceeding other than for (i) the routine collection of Receivables, (ii)
injunctive relief on the grounds that Seller has suffered immediate and irreparable harm not
compensable in money damages if Seller has obtained the prior written consent of Purchaser, such
consent not to be unreasonably withheld, or (iii) against the Purchaser in the event Purchaser is
in breach of this Agreement;

          (j) Declare, authorize or pay any dividends on, make any other distributions with respect to,
or redeem, repurchase or otherwise acquire any of its capital stock;

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          (k) Purchase, lease, license or otherwise acquire any assets, except for supplies acquired by
Seller in the ordinary course of business;

          (l) Make any capital expenditure in excess of $10,000, individually or in the aggregate;

          (m) Write off as uncollectible, or establish any extraordinary reserve with respect to, any
Receivable or other indebtedness in excess of $5,000, individually or in the aggregate;

          (n) Provide any credit, loan, advance, guaranty, endorsement, indemnity, warranty or mortgage
to any Person, including any of the customers, members, officers, employees or directors of Seller,
other than those made in the ordinary course of business;

          (o) Borrow from any Person by way of a loan, advance, guaranty, endorsement, indemnity, or
warranty;

          (p) Discharge any Encumbrance, indebtedness or other Liability in excess of $5,000,
individually or in the aggregate, except for Liabilities reflected or reserved against in the
Financial Statements and accounts payable in the ordinary course of business;

          (q) Change its credit practices, accounting methods or practices or standards used to maintain
its books, accounts or business records;

          (r) Change the terms of its accounts or other payables or Receivables or take any action
directly or indirectly to cause or encourage any acceleration or delay in the payment, collection
or generation of its accounts or Receivables;

          (s)
Incur or become subject to any Liability, contingent or otherwise, except current Liabilities
in the ordinary course of business;

          (t) Make any material change affecting the Business, including (i) changes in wholesaler
alignments, inventory levels, management organization or personnel arrangements with sales brokers,
advertising agencies, market research projects, advertising and promotion budgets or the content of
advertisements or working capital levels (payables, receivables and inventory); (ii) changes in
discretionary costs, such as advertising, maintenance and repairs, research and development, and
training; (iii) any capital expenditures or deferrals of capital expenditures; (iv) deviations from
operating budgets or plans on sales and profitability; or (v) other than in the ordinary course of
business, changed any of its business policies, including, advertising, investments, marketing,
pricing, purchasing, production, personnel, sales, returns, budget or product acquisition policies;

          (u) Amend its Certificate of Formation or Operating Agreement;

          (v) Split, combine or reclassify any of its capital stock or issue or authorize the issuance
of any other securities in lieu of, or in substitution for, shares of its capital stock;

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          (w) Accelerate, amend or change the period of exercisability or vesting of Seller Phantom
Units or other rights granted under the Seller Phantom Plan or any Seller Benefit Plans, except as
specifically contemplated in this Agreement;

          (x) Issue, sell, dispose of or encumber, or authorize the issuance, sale, disposition or
encumbrance of, any units or other ownership interest or grant, enter into or accept any options,
warrants, convertible securities or other rights to acquire any such units or any other ownership
interest in Seller;

          (y) Hire any new employee other than in the ordinary course of business, terminate any officer
or key employee of Seller, increase the annual level of compensation of any existing employee
except for regular, scheduled compensation increases in the ordinary course of business, establish
or adopt any Employee Benefit Plan, or grant any unusual or extraordinary bonuses, benefits or
other forms of direct or indirect compensation to any employee, officer, director or consultant;

          (z) Make any severance payments to any employee, officer or director, except payments made
pursuant to written agreements outstanding as of the date of this Agreement;

          (aa) Make or change any election in respect of Taxes, adopt or change any accounting method in
respect of Taxes, file any amendment to a Tax Return, enter into any closing agreement, settle any
claim or assessment in respect of Taxes, or consent to any extension or waiver of the limitation
period applicable to any claim or assessment in respect of Taxes;

          (bb) Fail to maintain all Inventory in accordance with reasonable past practices or fail to
maintain the Purchased Assets in good repair, order and condition, reasonable wear and tear
excepted; or

          (cc) Enter into any Contract or agree, in writing or otherwise, to take any of the actions
described in Section 6.2(a) through (cc) above, or any action that would make any of its
representations or warranties contained in this Agreement untrue or incorrect in any material
respect or prevent it from performing or cause it not to perform its covenants hereunder.

          (dd) Prevent and not allow to occur any releases or discharges of Hazardous Materials on,
under or about Seller’s facilities.

     6.3 No Solicitation. Until the earlier of (a) the Closing and (b) the termination of this
Agreement pursuant to its terms, Seller shall not, and Seller shall cause its Representatives not
to, directly or indirectly, (i) initiate, solicit or encourage (including by way of furnishing
information regarding the Business or the Purchased Assets or Assumed Liabilities) any inquiries,
or make any statements to third parties which may reasonably be expected to lead to any proposal
concerning the sale of Seller, the Business or the Purchased Assets or Assumed Liabilities (whether
by way of merger, purchase of capital shares, purchase of assets or otherwise) (a “Competing
Transaction”); or (ii) hold any discussions or enter into any agreements with, or provide any
information or respond to, any third party concerning a proposed Competing Transaction or cooperate
in any way with, agree to, assist or participate in, solicit, consider, entertain, facilitate or
encourage any effort or attempt by any third party to do

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or seek any of the foregoing. If at any
time prior to the earlier of (x) the Closing and (y) the termination of this Agreement pursuant to
its terms, Seller is approached in any manner by a third party concerning a Competing Transaction
(a “Competing Party”), Seller shall promptly inform Purchaser regarding such contact and
furnish Purchaser with a copy of any inquiry or proposal, or, if not in writing, a description
thereof, including the name of such Competing Party, and Seller shall keep Purchaser informed of
the status and details of any future notices, requests, correspondence or communications related
thereto.

     6.4 Certain Notifications. From the date of this Agreement until the Closing, Seller shall
promptly notify Purchaser in writing regarding any:

          (a) Action taken by Seller not in the Ordinary Course of Business and any circumstance or
event that could reasonably be expected to have a Material Adverse Effect on the Business;

          (b) Fact, circumstance, event, or action by Seller (i) which, if known on the date of this
Agreement, would have been required to be disclosed in or pursuant to this Agreement; or (ii) the
existence, occurrence, or taking of which would result in any of the representations and warranties
of Seller contained in this Agreement or in any Transaction Agreement not being true and correct
when made or at Closing;

          (c) Breach of any covenant or obligation of Seller hereunder; and

          (d) Circumstance or event which will result in, or could reasonably be expected to result in,
the failure of Seller to timely satisfy any of the closing conditions specified in Article
9 of this Agreement.

Additionally, from the date hereof through the Closing, Seller shall confer on a regular and
frequent basis with one or more designated representatives of Purchaser to report material
operational matters and the general status of on-going operations of the Business. Seller shall
promptly notify Purchaser of any material change in the financial condition, results of operations,
properties, business or prospects of the Business and shall keep Purchaser fully informed of such
events and permit Purchaser’s representatives to participate in all discussions related thereto.

     6.5 Updating the Seller and Members Disclosure Schedule. If any event, condition, fact or
circumstance that is required to be disclosed pursuant to Section 6.4 would require a
change to the Seller and Members Disclosure Schedule if the Seller and Members Disclosure Schedule
were dated as of the date of the occurrence, existence or discovery of such event, condition, fact
or circumstance, then, prior to Closing, Seller shall deliver to Purchaser an update to the Seller
and Members Disclosure Schedule specifying such change and shall use its best efforts to remedy
same, as applicable; provided, however, that no such update shall be deemed to supplement or amend
the Seller and Members Disclosure Schedule for the purpose of (i) determining the accuracy of any
of the representations and
warranties made by Seller in this Agreement or (ii) determining whether any of the conditions
set forth in Article 9 have been satisfied.

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     6.6 Access to Information. From the date of this Agreement until the Closing, Seller shall
(i) permit Purchaser and its Representatives to have reasonable access at all reasonable times, and
in a manner so as not to interfere with the normal business operations of Seller, to all premises,
properties, personnel, Persons having business relationships with Seller (including suppliers,
licensees, customers and distributors), books, records (including Tax records), contracts, and
documents of or pertaining to Seller; (ii) furnish Purchaser with all financial, operating and
other data and information related to the Business (including copies thereof), as Purchaser may
reasonably request; and (iii) otherwise cooperate and assist, to the extent reasonably requested by
Purchaser, with Purchaser’s investigation of the Business, the Purchased Assets and the Assumed
Liabilities. No information or knowledge obtained in any investigation pursuant to this
Section 6.6 shall affect or be deemed to modify any representation or warranty contained
herein or the conditions to the obligations of the parties to consummate the Transaction.

     6.7 Best Efforts. From the date of this Agreement until the Closing, each of Seller and the
Members, and Purchaser shall use their respective best efforts to cause to be fulfilled and
satisfied all of the other party’s conditions to Closing set forth in Article 9.

     6.8 [Intentionally Omitted].

     6.9 Consents. As promptly as possible after the date of this Agreement, Seller shall use best
efforts to obtain all Consents and make and deliver all filings and notices listed or required to
be listed on Schedule 4.5(e), and Purchaser shall use its best efforts to obtain all
Consents and make and deliver all filings and notices listed or required to be listed on
Schedule 5.3(c). Purchaser shall not be required to (i) agree to any material changes in,
or the imposition of any material condition to the transfer to Purchaser Sub of, any Seller
Contract or Governmental Approval as a condition to obtaining any Consent; or (ii) dispose of or
make any changes to its business, expend any material funds or incur any other burden in order to
comply with this Section 6.9.

     6.10 Member Vote. Prior to the Closing, Seller’s managing Members will recommend to Seller’s
members that they approve this Agreement and the consummation of the Transaction

     6.11 Customer Retention. Prior to Closing, Seller and either (i) Purchaser or (ii)
Purchaser Sub shall send a joint letter to all distributors and customers of the Business notifying
them of the general nature of the Transaction. Prior to Closing, Seller’s senior management shall contact each customer or
distributor of Seller Products accounting for $5,000 or more in Seller Product revenues during the
12 months ended September 30, 2006 (collectively, the “Major Customers”), in person or by
teleconference, to encourage such distributors and customers to continue to purchase the Seller
Products from Purchaser Sub following Closing and shall otherwise use best efforts to cause the
business relationships maintained by Seller with such distributors and customers to be transferred
to Seller without interruption at Closing. Prior to Closing, marketing and sales personnel of
Seller and Purchaser or Purchaser Sub shall participate in joint visits to such distributors and
customers as Purchaser may specify, for the same purpose. Seller acknowledges that Purchaser and
Purchaser Sub shall not, as a consequence of the Transaction, assume or undertake any obligation to
Seller’s distributors and sales representatives with respect to Seller Product sales, except in
connection with use defined term for transferred contracts. Seller acknowledges and agrees that
any liabilities

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associated with the termination of Seller Product sales and distribution
arrangements with Seller’s sales representatives and distributors constitute Excluded
Liabilities .

ARTICLE 7. POST CLOSING COVENANTS

     7.1 Seller Intellectual Property.

          (a) Effective at Closing and except as otherwise set forth herein, Purchaser Sub hereby grants
Seller a nonexclusive, non-transferable, non-sublicenseable, royalty free, worldwide, fully paid
license to use the Licensed Technology solely as necessary to make, use, and sell products that
embody the [***], and solely as set forth in this Section 7.1(a). The license set forth
above will not extend to the design, manufacture or commercialization of any device that competes,
directly or indirectly, with any product or service related to the Business being acquired by
Purchaser Sub or that would violate Seller’s or any Member’s noncompetition covenants hereunder.
The foregoing license shall not be transferable except as follows: Seller may transfer the
foregoing license in connection with the transfer of all of the [***] to a party that is
not a direct or indirect competitor of Purchaser or Purchaser Sub (as reasonably determined by
Purchaser or Purchaser Sub, as the case may be), provided that Purchaser and Purchaser Sub shall be
given advance notice of such transfer, and the provided further that the transferee shall agree in
writing (with Purchaser and/or Purchaser Sub as a party or as an express third party beneficiary)
to all of the restrictions in this Section 7.1(a). The foregoing license shall not be
sublicensable without Purchaser and Purchaser Sub’s advance written consent, which shall not be
unreasonably withheld. In requesting consent, Seller will provide Purchaser and Purchaser Sub with
an explanation of the purpose for the sublicense. Consent shall be deemed reasonably withheld if
(a) Purchaser or Purchaser Sub is able and willing to provide the design or manufacturing services
for which the license is requested on commercially reasonable terms, or (b) if the proposed
licensee is a direct or indirect competitor of Purchaser or Purchaser Sub (as reasonably determined
by Purchaser or Purchaser Sub, as the case may be), or (c) if Purchaser or Purchaser Sub reasonably
believes the sublicense may inure to Purchaser’s or Purchaser Sub’s detriment. Purchaser or
Purchaser Sub may terminate the foregoing license in the event Seller, its transferee, or any of
their Affiliates brings any Proceeding based upon Patent infringement or otherwise against
Purchaser, Purchaser Sub or any of their Affiliates.

          For purposes of the foregoing paragraph the term “Licensed Technology” shall mean any portion
of the Intellectual Property Rights transferred to Purchaser Sub under the Agreement that consists
of manufacturing processes and designs related to [***].

          Seller hereby grants to Purchaser and Purchaser Sub at the Closing a perpetual, nonexclusive,
royalty-free, worldwide, fully paid, irrevocable, transferable license, including the right to
grant and authorize sublicenses, to make, have made, use, sell, offer for sale and import any
products, under any Patents owned or controlled by Seller or its Affiliates claiming, in whole or
in party, any designs, developed or acquired by Seller based on or derived from the Licensed
Technology, or improvements to the Licensed Technology, excluding the [***].

          (b) If Purchaser or Purchaser Sub is unable to enforce its Intellectual Property Rights
against a third party as a result of any Legal Requirement that prohibits enforcement of such
rights by a transferee of such rights, Seller agrees to assign to Purchaser or Purchaser Sub,

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as determined at the sole discretion of Purchaser, such rights as may be required by Purchaser or
Purchaser Sub to enforce its Intellectual Property Rights in its own name. If such assignment
still does not permit Purchaser or Purchaser Sub to enforce its Intellectual Property Rights
against the third party, Seller agrees to initiate proceedings against such third party in Seller’s
name; provided, however, that Purchaser and Purchaser Sub shall be entitled to participate in such
proceedings and provided further that Purchaser or Purchaser Sub shall be responsible for the costs
and expenses of such proceedings.

     7.2 Cooperation. After the Closing, upon the request of Purchaser or Purchaser Sub, Seller
shall, and the Members shall cause Seller to, (i) execute and deliver any and all further
materials, documents and instruments of conveyance, transfer or assignment as may reasonably be
requested by Purchaser or Purchaser Sub to effect, record or verify the transfer to, and vesting in
Purchaser Sub, of Seller’s right, title and interest in and to the Purchased Assets, free and clear
of all Encumbrances, in accordance with the terms of this Agreement; and (ii) cooperate with
Purchaser or Purchaser Sub, at Purchaser’s or Purchaser Sub’s, as determined at the sole discretion
of Purchaser, expense, to enforce the terms of any Seller Contracts, including terms relating to
confidentiality and Intellectual Property Rights, and to contest or defend against any Proceeding
relating to the Transaction or to the operation of Seller’s Business before the Closing Date.
After the Closing, Seller shall (a) reasonably cooperate with Purchaser and Purchaser Sub in either
of their efforts to continue and maintain for the benefit of Purchaser and Purchaser Sub those
business relationships of Seller existing prior to the Closing and relating to the business to be
operated by Purchaser Sub after the Closing; (b) satisfy the Excluded Liabilities in a manner that
is not detrimental to any of such relationships; (c) refer to Purchaser all inquiries relating to
such business; and (d) promptly deliver to Purchaser Sub (i) any mail, packages and other
communications addressed to Seller relating to the Business and (ii) any cash or other property
that Seller receives and that properly belongs to Purchaser Sub, including any insurance proceeds,
payments with respect to Receivables, and interest payable thereon. Neither Seller nor any of its
officers, employees, agents or members shall take any action that would tend to diminish the value
of the Purchased Assets after the Closing or that would interfere with the
business of Purchaser Sub to be engaged in after the Closing, including disparaging the name
or business of Purchaser or Purchaser Sub. Further, Purchaser agrees that Purchaser or Purchaser
Sub will be available to Seller’s assignee with respect to the [***] for contract
development or pilot manufacturing of products or prototypes related to the [***] until
March 31, 2007 and extendable only by mutual consent. Purchaser or Purchaser Sub will bill Seller’s
assignee with respect to the [***] for such services using its’ normal billing
procedures, at a rate of the direct cost of labor and materials plus 50% (for overhead and profit).
Purchaser or Purchaser Sub will not be required to give higher priority to these services than
that given to other development and manufacturing projects.

     7.3 Limited Power of Attorney. Effective upon the Closing, Seller hereby irrevocably appoints
Purchaser and Purchaser Sub and their successors, agents and assigns as its true and lawful
attorney, in its name, place and stead, with power of substitution, to take any action and to
execute any instrument which Purchaser or Purchaser Sub may deem necessary or advisable to fulfill
Seller’s obligations or rights under, or to accomplish the purposes of, this Agreement, including,
(i) to demand and receive any and all Purchased Assets and to make endorsements and give receipts
and releases for and in respect of the same; (ii) to institute, prosecute, defend, compromise
and/or settle any and all Proceedings with respect to the

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Purchased Assets and Assumed Liabilities;
(iii) to endorse and cash and/or deposit in an account of Purchaser Sub any and all checks or
drafts received on account of any Receivables; (iv) to make any filings required to transfer any
Seller Intellectual Property or any other Purchased Assets; (v) to receive and open all mail,
packages and other communications addressed to Seller and relating to the Business; and (vi) in the
name of Seller or otherwise, collect all Receivables for its own account. The foregoing power of
attorney is a special power of attorney coupled with an interest and is irrevocable.

     7.4 [Intentionally Omitted].

     7.5 Records and Documents. For a period of ten (10) years after the Closing, at Purchaser’s
or Purchaser Sub’s request, Seller shall provide Purchaser, Purchaser Sub and their representatives
with access to and the right to make copies of those records and documents related to the Business,
possession of which is retained by Seller, as may be necessary or useful in connection with
Purchaser Sub’s conduct of the Business after the Closing. If during such period Seller elects to
dispose of such records and documents, Seller shall give Purchaser and Purchaser Sub sixty (60)
days’ prior written notice, during which period Purchaser or Purchaser Sub shall have the right to
take such records and documents without further consideration.

     7.6 Insurance
 and Warranty Claims. For a period of [***] years after the Closing, Seller
shall maintain in full force and effect product liability insurance on all Seller Products
manufactured or sold prior to the Closing Date, in a form and with such limits as currently
maintained by Seller. Such policy shall name Purchaser as an additional named insured and provide
that it may not be cancelled without prior
notice to Purchaser. Seller shall provide, at Purchaser’s request, reasonably satisfactory
evidence that such insurance policy continues to be in effect and that all premiums have been paid.

     7.7 Transition Services. For a period of one hundred twenty (120) days after the Closing
Date, Seller, at its own expense, and thereafter at the expense of Purchaser or Purchaser Sub,
agrees to (a) reasonably cooperate with Purchaser and Purchaser Sub in the transfer of any relevant
information in connection with the Business from Seller’s computer system acquired as part of the
Purchased Assets to Purchaser’s or Purchaser Sub’s computer system; provided, however, that the
parties agree and acknowledge that Seller’s computer systems shall be included as part of the
Purchased Assets; (b) make Seller’s employees available to Purchaser and Purchaser Sub for the
purpose of providing reasonable assistance in connection with the orderly transfer of the Business,
the Purchased Assets and the Assumed Liabilities; and (c) provide all support services currently
provided by Seller out of its corporate headquarters office for the Business, all as Purchaser or
Purchaser Sub may reasonably request.

     7.8 Dissolution; Restricted Payments. Seller shall not dissolve or liquidate or declare or
make any dividend payment or other distribution on its units, or purchase, redeem or otherwise
acquire for value any units or any options, warrants or other rights to acquire such units now or
hereafter outstanding until the later of (a) the date on which Seller has performed in full all
obligations under Section 1.5; (b) thirty (30) days after the completion of all Purchase
Price adjustment procedures contemplated by Section 2.2; and (c) the third anniversary of
the Closing; provided, however, this Section 7.8 shall not apply to tax distributions, net
profits, or other distributions of cash in accordance with historic practice, including the
Purchase Price;

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provided, that Seller maintains adequate reserves to pay its liabilities and that
such distribution(s) do not render Seller insolvent.

     7.9 Payment of Liabilities. Subject to Section 11.2 and except for the Assumed
Accounts Payable described in Section 1.3(b) hereof, Seller shall as promptly as possible, and in
any event no later than thirty (30) days after the Closing Date, pay or otherwise satisfy all
payables of Seller and other amounts payable to (i) Seller’s creditors in respect of the Purchased
Assets, including without limitation the list of accounts payable set forth on the list attached
hereto as Schedule 4.7(c) and any sales tax that should have been collected by the Seller
in its ordinary course of business that was not collected prior to the Closing (including any
amounts deemed due and payable by the Florida Department of Revenue pursuant to any sales tax audit
of Seller conducted in accordance with this Transaction), (ii) any loans and indebtedness between
Seller and Members, and (iii) any Member “guaranteed payments” or other similar liabilities of
Seller to its Members.

     7.10 Retained Marks.

          (a) Notwithstanding anything herein to the contrary, no interest in or right to use the VasCon
name or any variations thereof (each, a “Retained Mark”, and collectively, the
“Retained Marks”) is being transferred to the Purchaser Sub pursuant to the
Transaction. The Purchaser Sub will, following the Closing Date, use its commercially reasonable
efforts to remove or obliterate the Retained Marks from its signs, advertisements, marketing
brochures, purchase orders, invoices, and other materials.

          (b) Notwithstanding the foregoing, the Purchaser Sub and its distributors, licensees, sales
representatives and agents, contractors, subcontractors and other representatives shall be
entitled, for a period of no longer than one hundred eighty (180) days following the Closing Date,
to use any signs, advertisements, marketing brochures, purchase orders, invoices, sales orders,
labels, letterheads, shipping documents, or other materials existing on the Closing Date that bear
any Retained Mark.

          (c) Seller agrees to defend, indemnify and hold harmless the Purchaser and Purchaser Sub from
any and all claims that may arise after the Closing Date out of the use of any Retained Mark
thereof in accordance with this Agreement.

          (d) For a period of twelve (12) months after the Closing, Seller hereby grants to Purchaser
and Purchaser Sub a non-exclusive, sublicenseable, royalty-free right and license to use any of the
Retained Marks on any and all packaging materials for products of the Business on which the
trademark appears as of the Closing Date (the “Packaging Materials”).

     7.11 Collection of Receivables.

          (a) Payments received by Purchaser or Purchaser Sub from account debtors as payment for a
Receivable shall be applied against the oldest unpaid balance of such account debtor, unless the
account debtor designates another application, in which case the application designated may be
followed in applying the payment. In return for payment of claims for defaulted Receivables,
Purchaser or Purchaser Sub, as the case may be, shall reassign the account or note involved to
Seller. The uncollected receivables reassigned to Seller as provided

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herein shall be transferred
by Purchaser or Purchaser Sub, as the case may be, subject to no defenses or setoffs by the debtor
which did not arise as a result of the conduct of the Business prior to Closing.

          (b) Purchaser and Purchaser Sub each shall be entitled, in its sole discretion, to reassign
and transfer to Seller any Receivables which have not been collected in full by sixty (60) days
after the Closing Date and Seller shall be required to accept any such uncollected Receivable which
have been so reassigned and transferred. If Purchaser or Purchaser Sub determines to so reassign
and transfer any such uncollected Receivables, the Purchase Price, as may have been adjusted
pursuant to the terms hereof, shall be reduced by an amount equal to the aggregate face amount of
such uncollected Receivables.

     7.12 Non-Disclosure and Noncompetition.

          (a) Noncompetition Agreement.

               (i) For and in consideration of the Transaction contemplated herein, during the period
commencing with the Closing Date and ending on the fifth anniversary of the Closing Date (the
“Noncompetition Period”), the Seller shall not engage in any “Competitive Activity”
in the “Restricted Territory” (as both are defined below). Each of the Members
acknowledge and confirm that the Member’s obligations of noncompetition, non-solicitation,
nondisclosure and other covenants relevant to Seller pursuant to this Section 7.12 are, with regard
to each Member, as set forth in the form of Non-competition Agreement which each Member shall have
executed in favor of Purchaser and Purchaser Sub in conjunction with the purchase of Seller assets
as set forth in this Agreement, and all such terms and provisions are incorporated by reference
herein and shall survive the termination of this Agreement.

               (ii) “Competitive Activity” shall mean directly or indirectly (or having any interest
in, or performing any services for, any Person directly or indirectly) (i) engaging in any activity
that is the same as, similar to, or competitive with the Business of Seller or with the
Neurovascular Business (as defined below); (ii) engaging in the development, distribution,
manufacture or sale of any product that is the same as, similar to, or competitive with any Seller
Product being developed or distributed by Purchaser or Purchaser Sub during the Noncompetition
Period; (iii) employing, soliciting for employment, or recommending for employment any Person
employed by Purchaser or Purchaser Sub or any Affiliate or Subsidiary of Purchaser or Purchaser Sub
during such Person’s employment with Purchaser or Purchaser Sub, as the case may be, (or any
Affiliate or Subsidiary of Purchaser or Purchaser Sub) or for one year thereafter; or (iv)
diverting or attempting to divert from Purchaser or Purchaser Sub or any Affiliate or Subsidiary
of Purchaser or Purchaser Sub any business of any kind in which they are engaged, including the
solicitation of or interference with any suppliers, contractors, or customers. For purposes of
this Section 7.12, the “Neurovascular Business” shall mean the design, development,
manufacture, sale and/or distribution of any neurovascular medical device.

               (iii) “Restricted Territory” shall mean every state, territory, country, or
jurisdiction in which Purchaser, or Purchaser Sub, Seller or any Affiliate or Subsidiary of
Purchaser, or Purchaser Sub, or Seller is now doing business or now contemplates doing business.

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               (iv) Notwithstanding the foregoing, the provisions of this Section 7.12 shall not prevent
Seller from beneficially owning up to two percent (2%), on a full-diluted basis, of the total
shares of all classes of stock outstanding of any corporation having securities listed on the NYSE,
the American Stock Exchange, or traded on NASDAQ.

          (b) Noncompetition Covenants; Scope and Choice of Law. It is the understanding of the parties
that the scope of the covenants contained in this Section 7.12, both as to time and area
covered, are necessary to protect the rights of Purchaser and Purchaser Sub and the goodwill that
is a part of the Business of Seller to be acquired by Purchaser and Purchaser Sub. Notwithstanding
Section 12.12 hereof, it is the parties’ intention that these covenants be enforced to the
greatest extent (but to no greater extent) in time, area, and degree of participation as is
permitted by the internal laws of the State of Florida (without giving effect to principles of
conflicts of laws). Notwithstanding Section 12.12 hereof, it being the purpose of this
Agreement to govern competition by Seller in the Restricted Territory, these covenants shall be
governed by and construed according to the internal laws of the State of Florida (without giving
effect to principles of conflicts of laws). The prohibitions in each of Subsections
(i)-(iv) in Section 7.12(a) above shall be deemed, and shall be construed as separate
and independent agreements between Purchaser and Purchaser Sub on the one hand, and
Seller respectively, on the other. If any such agreement or any part of such agreement is held
invalid, void or unenforceable by any court of competent jurisdiction, such invalidity, voidness,
or unenforceability shall in no way render invalid, void, or unenforceable any other part of them
or any separate agreement not declared invalid, void or unenforceable; and this Agreement shall in
such case be construed as if the invalid, void, or unenforceable provisions were omitted.
Notwithstanding anything herein to the contrary, the provisions of this Section 7.12(b)
shall survive the termination of this Agreement.

          (c) Noncompetition Covenants; Assignment by Purchaser and Purchaser Sub. The
parties agree that the covenants of Seller not to compete contained in this Section 7.12
may be assigned by Purchaser and Purchaser Sub to any Person to whom may be transferred
the Business of Seller by the sale or transfer of their business and assets or otherwise, including
without limitation an Affiliate or acquiror of Purchaser or Purchaser Sub. It is the
parties’ intention that these covenants of Seller shall inure to the benefit of any Person that may
succeed to the Business and Purchased Assets of Seller (as acquired by Purchaser and Purchaser
Sub under this Agreement) with the same force and effect as if these covenants were made
directly with such successor.

          (d) Nondisclosure. After the Closing Date, except as may be required for tax purposes or
other regulatory purposes, neither Seller nor any of Seller’s successors and assigns shall (a)
retain any document, databases or other media embodying any confidential or proprietary know-how
which constitutes a part of the Purchased Assets or Assumed Liabilities or use, publish or disclose
to any third person any such confidential or proprietary know-how; provided, however, that Seller
shall be entitled to retain copies of any of the foregoing to the extent necessary in connection
with prosecuting or defending any matter not assumed by Purchaser or Purchaser Sub
or related to the Excluded Assets or Excluded Liabilities or (b) use, publish or disclose any
information concerning Purchaser, Purchaser Sub or their Affiliates. In the event of any
termination of this Agreement, (i) Seller shall treat as confidential and proprietary and shall not
disclose or use, directly or indirectly, in any manner whatsoever, or

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permit others under its
control to disclose or to use, any information concerning Purchaser, Purchaser Sub or its business
or products obtained pursuant to or in connection with the Transaction which are the subject matter
of this Agreement, unless such information is or becomes a matter of public knowledge through no
fault of Seller or any of its Members or can be shown to have been in the possession of Seller
prior to disclosure by Purchaser or Purchaser Sub and (ii) Seller shall promptly return to
Purchaser or Purchaser Sub, as the case may be, upon written request all written
information and documents received from any other party, its affiliates, accountants or counsel, in
connection with such Transaction, including all copies thereof. Purchaser and Purchaser
Sub acknowledges that there is not an adequate remedy at law for the breach of this
Section 7.12(d) and that, in addition to any other remedies available, injunctive relief
may be granted for any such breach. The provisions of this Section 7.12(d) shall survive
any termination of this Agreement.

          (e) Confidential Information. “Confidential Information” shall mean all Trade Secrets
and other confidential and/or proprietary information of a Person, including information derived
from reports, investigations, research, work in progress, codes, marketing and sales programs,
financial projections, cost summaries, pricing formula, contract analyses, financial information,
projections, confidential filings with any state or federal agency, and all other confidential
concepts, methods of doing business, ideas, materials or information prepared or performed for, by
or on behalf of such Person by its employees, officers, directors, agents, representatives, or
consultants. Information shall not be deemed Confidential Information hereunder if (i) such
information becomes available to or known by the public generally through no fault of Seller or a
Member or (ii) disclosure is required by law or the order of any governmental authority under color
of law, provided, however, that prior to disclosing any information pursuant to this clause (ii),
Seller shall, if possible, give prior written notice thereof to Purchaser and Purchaser
Sub and, at Purchaser’s or Purchaser Sub’s election, as the case may be, either provide
Purchaser or Purchaser Sub, as the case may be, with the opportunity to contest such disclosure or
seek to obtain a protective order narrowing the scope of such disclosure and/or use of the
Confidential Information; or (iii) Seller reasonably believes that such disclosure is required in
connection with the defense of a lawsuit against Seller. Nothing herein shall be construed as
prohibiting Purchaser or Purchaser Sub from pursuing any other available remedy for such breach or
threatened breach, including the recovery of damages.

          (f) Noncompetition Covenants; Remedy for Breach. The parties agree that, in the event of
breach or threatened breach of Seller’s covenants in this Section 7.12, the damage or
imminent damage to the value and the goodwill of Purchaser or Purchaser Sub and the Business will
be irreparable and extremely difficult to estimate, making any remedy at law or in damages
inadequate. Accordingly, the parties agree that each of Purchaser and Purchaser Sub shall be
entitled to injunctive relief against Seller in the event of any breach or threatened breach of any
of such covenants by Seller, in addition to any
other relief (including damages) available to Purchaser and Purchaser Sub under this Agreement
or under applicable law.

     7.13 Tail Insurance Policies. Seller shall maintain in full force and effect and keep, at all
times during the duration of the Tail Insurance Policy as determined in accordance with Section
9.1(l), valid, outstanding and enforceable all Tail Insurance Policies, perform all its
obligations under such Tail Insurance Policies during the duration of the Tail Insurance Policy as
determined in accordance with Section 9.1(l), including without limitation the payment in
full all

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required insurance premiums due on such Tail Insurance Policies for the agreed upon
duration thereof.

ARTICLE 8. EMPLOYEES

     8.1 Transferred Employees. Purchaser or Purchaser Sub, as the case may be, may, but shall
have no obligation to, offer employment or a consulting arrangement, to be effective as of the
Closing Date and contingent upon the Closing, on terms to be determined by Purchaser or Purchaser
Sub, as the case may be, to those service providers of Seller who are listed on Schedule
8.1 (collectively, the “Transferred Employees”). Seller shall terminate the
employment, to be effective as of the Closing Date, of any employees of the Business who are not
Transferred Employees. The parties acknowledge and agree that it is not the intention of the
parties that any contracts of employment of any employees of Seller shall be assumed by Purchaser
or Purchaser Sub, as the case may be, as a result of the Transaction. Seller shall use best
efforts to (i) encourage the Transferred Employees to continue their employment with Seller until
Closing and thereupon to accept employment or a consulting arrangement with Purchaser Sub (as
determined in Purchaser’s sole discretion), and (ii) assist Purchaser Sub in employing or otherwise
engaging any Transferred Employees.

     8.2 Employee Benefit Arrangements. In order to secure an orderly and effective transition of
the employee benefit arrangements for Transferred Employees and their respective beneficiaries and
dependents, Seller, Purchaser and Purchaser Sub shall cooperate, both before and after the Closing
Date, to (i) exchange information related to the Transferred Employees, including employment
records, benefits information, and financial statements and (ii) take any other actions with
respect to the Transferred Employees and their respective beneficiaries and dependents.

     8.3 Compliance with Legal Requirements and Other Obligations. Prior to the Closing, at its
sole cost and expense, Seller shall take all actions necessary to comply with all appropriate Legal
Requirements in connection with Seller’s employment of its employees. Seller shall be solely
responsible, before and after the Closing, for the payment of any amounts required to be paid under
any Legal Requirement as a result of the termination or layoff of any employee of Seller who is not
a Transferred Employee in connection with this Transaction. Prior to the Closing, Seller shall
perform all of its contractual and other obligations in connection with the employment of its
employees.

     8.4 No Benefit to Seller Employees Intended. This Article 8 is not intended to, and
does not, create any rights or obligations to or for the benefit of anyone other than Purchaser,
Purchaser Sub and Seller.

ARTICLE 9. CONDITIONS TO CLOSING

     9.1 Conditions to Purchaser’s and Purchaser Sub’s Obligation to Close. The obligations of
Purchaser and Purchaser Sub to consummate the Transaction shall be subject to the satisfaction, on
or prior to the Closing Date, of each of the following conditions, any of which may be waived by
Purchaser in writing:

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          (a) Representations, Warranties and Covenants. (i) All of the representations and warranties
of Seller and the Members in this Agreement shall have been true and correct in all respects
(considered collectively and individually) as of the date of this Agreement and shall be true and
correct in all respects (considered collectively and individually) as of the Closing Date (or, to
the extent such representations and warranties speak only as of an earlier date, they shall be true
and correct in all respects as of such earlier date); and (ii) Seller shall have performed, in all
material respects (considered collectively and individually), all covenants and obligations in this
Agreement required to be performed by Seller as of the Closing Date;

          (b) Documents. Seller shall have delivered to Purchaser all of the documents and agreements
set forth in Sections 3.2 and 3.4;

          (c) Consents. Seller shall have delivered to Purchaser and Purchaser Sub all Assignment
Consents and other Consents required (i) for the transfer of the Business and the Purchased Assets;
(ii) for the consummation of the Transaction; or (iii) to prevent a breach or termination of any
Seller Contract;

          (d) Estoppel Letters. Seller shall have delivered to Purchaser Estoppel Letters,
substantially in the form attached hereto as Exhibit 9.1(d) (the “Estoppel
Letters”), from each lessor of Real Property;

          (e) Opinion of Seller’s and Members’ Counsel. Seller shall have delivered to Purchaser and
Purchaser Sub an Opinion of Seller’s and Members’ counsel, substantially in the form attached
hereto as Exhibit 9.1(e);

          (f) Member Approval. To the extent required under applicable Legal Requirements or the Certificate of Formation
or Operating Agreement of Seller, this Agreement and the consummation of the Transaction shall have
been approved and adopted by the unanimous vote of the members of Seller;

          (g) Special Diligence. Purchaser and its Representatives shall have had an opportunity to
examine and review all aspects of the operations of Seller and Seller’s business, including without
limitation and in particular, any and all materials, documents and other evidence material to
Seller’s representations under Sections 4.36 and 4.37 and Seller’s compliance with
all Legal Requirements in respect thereof, and Purchaser and its Representatives shall be satisfied
in their sole discretion as to the results of such completed examination and review;

          (h) No Proceedings. Since the date of this Agreement, no Proceeding shall have been commenced
or threatened against Purchaser or Purchaser Sub, or against any Representative of Purchaser or
Purchaser Sub (a) involving any challenge to, or seeking Damages or other relief in connection
with, the Transaction; or (b) that may have the effect of preventing, delaying, making illegal,
imposing limitations or conditions on or otherwise interfering with the Transaction;

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          (i) Governmental Authorizations. Purchaser or Purchaser Sub, as may be necessary, shall have
received such Governmental Approvals as are necessary or desirable to allow Purchaser Sub to
operate the Purchased Assets from and after Closing;

          (j) [Intentionally Omitted];

          (k) Completion of Due Diligence. Purchaser and its Representatives shall have had an
opportunity to examine and review all aspects of the operations of Seller and Seller’s business,
and Purchaser and its representatives shall be satisfied in their sole discretion as to the results
of such completed examination and review;

          (l) Tail Insurance Policy. Seller shall obtain a products liability Insurance Policy, issued
by an insurer that is financially sound and reputable and reasonably acceptable to Purchaser, with
limits sufficient to provide coverage for all Excluded Liabilities and sufficient for compliance
with all Legal Requirements and Seller Contracts, naming Purchaser or Purchaser Sub, as determined
at the sole discretion of Purchaser, as an additional named insured, in such amounts and such
durations as Purchaser reasonably specifies in writing prior to the Closing Date (the “Tail
Insurance Policy”). The cost on the Tail Insurance Policy shall be shared equally by Seller
and Purchaser;
provided, that Purchaser is provided with a written invoice or receipt with regard to the
total cost of such Tail Insurance Policy; and, provided, further, that in no event shall the shared
cost to Purchaser exceed $ [***] (in which case, any additional costs above the
$ [***] shared amount shall be borne entirely by Seller); and,

          (m) Resolution of Legal Requirement Damages. Seller and Members shall use their best efforts
to remedy any Damages related to Legal Requirements outstanding prior to the Closing and with
respect to any such Damages not remedied at or prior to the Closing will be treated as Purchaser
Damages for which Seller and the Members, jointly and severally, will indemnify, defend and hold
harmless Purchaser, Purchaser Sub and their Representatives in accordance with the provisions of
Section 11 hereto.

     9.2 Conditions to Seller’s and Members’ Obligation to Close. The obligations of Seller and
the Members to consummate the Transaction shall be subject to the satisfaction, on or prior to the
Closing Date, of each of the following conditions, any of which may be waived by Seller in writing:

          (a) Representations, Warranties and Covenants. (i) All of the representations and warranties
of Purchaser in this Agreement shall have been true and correct in all material respects
(considered collectively and individually) as of the date of this Agreement and shall be true and
correct in all material respects (considered collectively and individually) as of the Closing Date
(or, to the extent such representations and warranties speak as of an earlier date, they shall be
true and correct in all material respects as of such earlier date); (ii) all of the representations
and warranties of Purchaser in this Agreement that contain an express materiality qualification
shall have been true and correct in all respects (considered collectively and individually) as of
the date of this Agreement and shall be true and correct in all respects (considered collectively
and individually) as of the Closing Date (or, to the extent such representations and warranties
speak only as of an earlier date, they shall be true and correct in all respects as of such earlier
date); and (iii) Purchaser shall have performed, in all material

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respects (considered collectively
and individually), all covenants and obligations in this Agreement required to be performed by
Purchaser as of the Closing Date; and

          (b) Deliveries. Purchaser shall have delivered to Seller all of the documents and agreements
set forth in Sections 3.3 and 3.4.

     9.3 Conditions to Obligations of Each Party to Close. The respective obligations of each
party to this Agreement to consummate the Transaction shall be subject to the satisfaction, on or
prior to the Closing Date, of each of the following condition(s), any of which may be waived by
Purchaser or Seller, as applicable, in writing:

          (a) No Legal Impediments to Closing. There shall not be in effect any Order issued by any Governmental Authority preventing the
consummation of the Transaction, seeking any Damages as a result of the Transaction, or otherwise
affecting the right or ability of Purchaser Sub to own, operate or control the Business, the
Purchased Assets or the Assumed Liabilities, nor shall any Proceeding be pending that seeks any of
the foregoing. There shall not be any Legal Requirement prohibiting Seller from selling or
Purchaser Sub from owning, operating or controlling the Business, the Purchased Assets or the
Assumed Liabilities or that makes this Agreement or the consummation of the Transaction illegal.

ARTICLE 10. TERMINATION

     10.1 Circumstances for Termination. At any time prior to the Closing, this Agreement may be
terminated by written notice explaining the reason for such termination (without prejudice to other
remedies which may be available to the parties under this Agreement, at law or in equity):

          (a) by the mutual written consent of Purchaser and Seller;

          (b) by either Purchaser or Seller if (i) the non-terminating party (including for these
purposes only in respect of the Seller, both Seller and all of the Members) is in material breach
of any material provision of this Agreement and such breach shall not have been cured within thirty
(30) days of receipt by such party of written notice from the terminating party of such breach; and
(ii) the terminating party (including for these purposes only in respect of the Seller, both Seller
and all of the Members) is not, on the date of termination, in material breach of any material
provision of this Agreement;

          (c) by either Purchaser or Seller if (i) the Closing has not occurred on or prior to January
31, 2007 (the “Outside Closing Date”) for any reason; and (ii) the terminating party is
not, on the date of termination, in material breach of any material provision of this Agreement;
and

          (d) by either Purchaser or Seller if (i) satisfaction of a closing condition of the
terminating party in Article 9 is impossible; and (ii) the terminating party is not, on the
date of termination, in material breach of any material provision of this Agreement.

     10.2 Effect of Termination. If this Agreement is terminated in accordance with Section
10.1, all obligations of the parties hereunder shall terminate, except for the obligations

-54-

 

set forth in this Article 10 and Sections 7.12(e), 12.1, 12.3 to 12.6, and 12.8 to 12.20; provided, however, that
nothing herein shall relieve any party from liability for the breach of any of its representations,
warranties, covenants or agreements set forth in this Agreement.

ARTICLE 11. INDEMNIFICATION

     11.1 Survival of Representations and Warranties. All representations and warranties of Seller
and the Members in this Agreement or any other Transaction Agreement shall survive the Closing
until the third (3rd) anniversary of the Closing Date (the “Survival Date”); provided,
however, that (a) all representations and warranties relating to Environmental and Safety Laws
shall survive indefinitely; (b) all representations and warranties of Seller or Purchaser contained
in Sections 4.15, 4.19, 4.21, 4.25, 4.26, 4.31, 4.34, 4.35, 4.36, or 4.37 shall
survive until the expiration of the relevant statute of limitations period (including any
applicable extensions thereof)(or for three (3) years if there is no applicable statute of
limitations), provided, however, that such limitations shall not apply to any to any Seller
indemnification obligations arising out of, relating to or resulting from fraud or intentional
misrepresentation by Seller; and (c) any claim for indemnification based upon a breach of any such
representation or warranty and asserted prior to the Survival Date by written notice in accordance
with Section 11.4 shall survive until final resolution of such claim. All of Purchaser’s
representations and warranties in this Agreement or any other Transaction Agreement shall terminate
on the Closing Date, and shall thereafter be of no further force or effect. The representations
and warranties contained in this Agreement (and any right to indemnification for breach thereof)
shall not be affected by any investigation (including without limitation any environmental
investigation or Environmental Report), verification or examination by any party hereto or by any
Representative of any such party or by any such party’s Knowledge of any facts with respect to the
accuracy or inaccuracy of any such representation or warranty.

     11.2 Indemnification by Seller and Members. Subject to the limitations set forth in this
Article 11, Seller and the Members, jointly and severally, shall indemnify, defend and hold
harmless Purchaser, Purchaser Sub and their respective Representatives from and against any and all
Damages, whether or not involving a third party claim, including attorneys’ fees (collectively,
“Purchaser Damages”), arising out of, relating to or resulting from (a) any breach of a
representation or warranty of Seller or a Member(s) contained in this Agreement or in any other
Transaction Agreement; (b) any breach of a covenant of Seller or a Member(s) contained in this
Agreement or in any other Transaction Agreement; (c) Excluded Assets or Excluded Liabilities or
other Liabilities not expressly Assumed Liabilities; or (d) any noncompliance with applicable bulk
sales or fraudulent transfer Legal Requirements in connection with the Transaction; (e) any product
or component thereof manufactured or shipped, or any services provided by, Seller, in whole or in
part, prior to the Closing Date; (f) any claims brought by employees or contractors of Seller who
were or are terminated prior to or as of, or as a result of, the Closing of the Transaction; or (g)
Permanent Non-Assignable Assets. [***].

     [***]

     11.3 Indemnification Liability of Purchaser. Purchaser hereby agrees to indemnify,
defend, and hold Seller and the Members, and their respective officers, employees, agents,
successors, and assigns, and each of them, free and harmless from and against any Damages

-55-

 

directly or indirectly arising out of, resulting from or relating to all Assumed Liabilities to the extent
such Damage results from Purchaser’s failure to carry out obligations with respect to Assumed
Liabilities after Closing; provided, that Seller Damages arising out of any breach of Purchaser’s
representations and warranties shall not include losses in the nature of incidental or
consequential damages, lost profits, diminution in value, damage to reputation or goodwill or other
items of a speculative nature.

     11.4 Procedures for Indemnification. Promptly after receipt by a party entitled to
indemnification hereunder (the “Indemnitee”) of written notice of the assertion or the
commencement of any Proceeding by a third-party with respect to any matter referred to in
Sections 11.2, the Indemnitee shall give written notice thereof to the party obligated to
indemnify Indemnitee (the “Indemnitor”), and thereafter shall keep the Indemnitor
reasonably informed with respect thereto; provided, however, that failure of the Indemnitee to give
the Indemnitor notice as provided herein shall not relieve the Indemnitor of its obligations
hereunder except to the extent that the Indemnitor is prejudiced thereby. A claim for
indemnification for any matter not involving a third-party Proceeding may be asserted by notice to
the party from whom indemnification is sought and shall be paid promptly after such notice.

     11.5 Limitations on Indemnification.

         
 (a) Notwithstanding anything herein to the contrary, Seller shall not be obligated to
indemnify Purchaser under this Article 11 unless the aggregate of all Purchaser Damages
exceeds Fifty Thousand Dollars ($50,000) (the “Seller’s Basket”), in which case the
Purchaser shall be entitled to recover all Purchaser Damages, including the amount equal to the
Seller’s Basket; provided, however, that the Seller’s Basket shall not apply to limit any Seller
indemnification obligation (w) arising out of, relating to or resulting from fraud or intentional
misrepresentation by Seller; (x) arising out of, relating to or resulting under Section
11.2(b), (c) or (d) or from a breach of any of Seller’s representations or warranties in
Sections 4.1, 4.15, 4.19, 4.20, 4.21, 4.24, 4.25, 4.26, 4.31, 4.34, 4.35, 4.36, or
4.37; (y) Claims related to Excluded Liabilities which will not be applicable to Seller’s
Basket; or (z) if the Transaction does not close; provided, however, that any materiality
qualification as to a particular representation and warranty to which Purchaser Damages relates
will not be taken into account in determining the magnitude of the damages occasioned by the breach
for purposes of calculating whether they are applied to Seller’s Basket.

         
 (b) Notwithstanding anything herein to the contrary, Purchaser shall not be obligated to indemnify
Seller under this Article 11 unless the aggregate of all Seller Damages exceeds [***] (the “Purchaser’s Basket”), in which case the Seller shall be
entitled to recover all Seller Damages, including the amount equal to the Purchaser’s Basket;
provided, however, that the Purchaser’s Basket shall not apply to limit any Purchaser
indemnification obligation (x) arising out of, relating to or resulting from fraud or intentional
misrepresentation by Purchaser; (y) arising out of, relating to or resulting from any breach of a
covenant of Purchaser contained in this Agreement or in any other Transaction Agreement; or (z) if
the Transaction does not close; provided, however, that any materiality qualification as to a
particular representation and warranty to which Seller Damages relates will not be taken into
account in determining the magnitude of the damages occasioned by the breach for purposes of
calculating whether they are applied to Purchaser’s Basket.

-56-

 

     11.6 Remedies Cumulative. The remedies provided in this Agreement shall be cumulative and
shall not preclude any party from asserting any other right, or seeking any other remedies, against
the other party.

     11.7 Method of Asserting Claims. All claims for indemnification by the Purchaser or Purchaser
Sub pursuant to this Article 11 shall be made in accordance with the provisions of the
Escrow Agreement.

     11.8 Right of Setoff. Upon notice to Seller and Members, Purchaser or Purchaser Sub may set
off any amount to which it may be entitled under this Article 11 against amounts otherwise
payable to Seller or Members, including without limitation, the Earn-Out Payments. Neither the
exercise, nor the failure to exercise, such right of setoff will constitute an election of remedies
or limit Purchaser or Purchaser Sub in any manner in the enforcement of any other remedies that may
be available to it.

     11.9 Limitation on Liability. Subject to the provisions of this Section 11.9, the
total aggregate liability of the Seller and Members under this Agreement, including, but not
limited to the indemnification provisions set forth in this Article 11 shall not exceed the
Initial Payment and any Earn-Out Payments paid by Purchaser (the “Total Consideration”).
Notwithstanding anything to the contrary contained herein, the limitation on liability imposed by
this Section 11.9, shall not apply and be void and of no effect as to any intentional
misrepresentation or fraud or, a breach of Section 4.23 (Taxes), 4.22
(Environmental Matters), and any Excluded Liabilities (including any liability of Seller that
became a liability of Purchaser or Purchaser Sub under any common law doctrine of de facto merger
or successor liability, or otherwise by operation of law) (the “Unlimited Seller
Liabilities”). Subject to the foregoing unlimited liability of all Members for the Unlimited
Seller Liabilities, the aggregate maximum indemnification obligation of each Member under this
Article 11 shall be limited to an amount determined by multiplying the respective pro rata
percentage ownership of a Member as set forth on Schedule 4.3(a) hereto and the Total
Consideration. THE INDEMNIFICATION PROVISIONS IN THIS ARTICLE 11 SHALL BE
ENFORCEABLE REGARDLESS OF WHETHER THE LIABILITY IS BASED UPON PAST, PRESENT OR FUTURE ACTS,
CLAIMS OR LEGAL REQUIREMENTS (INCLUDING ANY PAST, PRESENT OR FUTURE BULK SALES LAW, ENVIRONMENTAL
LAW, FRAUDULENT TRANSFER ACT, OCCUPATIONAL SAFETY AND HEALTH LAW OR PRODUCTS LIABILITY, SECURITIES
OR OTHER LEGAL REQUIREMENT) AND REGARDLESS OF WHETHER ANY PERSON (INCLUDING THE PERSON FROM WHOM
INDEMNIFICATION IS SOUGHT) ALLEGES OR PROVES THE SOLE, CONCURRENT, CONTRIBUTORY OR COMPARATIVE
NEGLIGENCE OF THE PERSON SEEKING INDEMNIFICATION OR THE SOLE OR CONCURRENT STRICT LIABILITY IMPOSED
UPON THE PERSON SEEKING INDEMNIFICATION.

ARTICLE 12. MISCELLANEOUS PROVISIONS

     12.1 Expenses. Whether or not the Transaction is consummated, each party shall pay it own
costs and expenses in connection with this Agreement and the Transaction (including the fees and
expenses of its advisers, accountants and legal counsel).

-57-

 

     12.2 Further Assurances. Each party agrees (a) to furnish upon request to each other party
such further information, (b) to execute and deliver to each other party such other documents, and
(c) to do such other acts and things, all as another party may reasonably request for the purpose
of carrying out the intent of this Agreement and the Transaction.

     12.3 Attorneys’ Fees. If any action or proceeding relating to this Agreement or the
enforcement of any provision of this Agreement is brought against any party hereto, the prevailing
party shall be entitled to recover reasonable attorneys’ fees, costs and disbursements (in addition
to any other relief to which the prevailing party may be entitled).

     12.4 Notices. Any notice or other communication required or permitted to be delivered to any
party under this Agreement shall be in writing and shall be deemed properly delivered, given and
received when delivered (by hand, by registered mail, by courier or express delivery service or by
facsimile) to the address or facsimile telephone number set forth beneath the name of such party
below (or to such other address or facsimile telephone number as such party shall have specified in
a written notice given to the other parties hereto):

if to Purchaser or Purchaser Sub:

Micrus Endovascular Corporation

821 Fox Lane

San Jose, CA 95131

Attention: Executive Vice President

Telephone: (408) 433-1400

Facsimile: (408) 433-1401

with a copy (not constituting notice) to:

Greenberg Traurig, LLP

1900 University Avenue, 5th Floor

East Palo Alto, CA 94303

Attention: E. Thom Rumberger, Esq.

Telephone: (650) 328-8500

Facsimile: (650) 328-8508

if to Seller:

VasCon, LLC

[***]

Doral, FL 33172

Attention: [***]

Telephone: [***]

Facsimile: [***]

-58-

 

with a copy (not constituting notice) to:

Perlman, Yevoli & Albright, P.L.

1500 N. Federal Highway, Suite 250

Ft. Lauderdale, FL 33304

Attention: Jason E. Perlman, Esq.

Telephone: (954) 566-7117

Facsimile (954) 566-7115

if to the Members, as follows:

[***]

if to Escrow Agent:

[***]

     12.5 Confidentiality. Without limiting the generality of anything contained in
Section 5.4, on and at all times after the Closing Date, each party shall keep
confidential, and shall not use or disclose to any
other Person, any non public document or other non-public information in such party’s
possession that relates to the business of the Seller, Purchaser or Purchaser Sub.

     12.6 Public Announcements. No party to this Agreement shall make, or cause to be made, any
press release or public announcement in respect of this Agreement or the Transaction contemplated
by this Agreement or otherwise communicate with any news media without the prior written consent of
the other party unless otherwise required by Law or applicable stock exchange regulation, and the
parties to this Agreement shall cooperate as to the timing and contents of any such press release,
public announcement or communication.

     12.7 Time of the Essence. Time is of the essence of this Agreement.

     12.8 Headings. The underlined headings contained in this Agreement are for convenience of
reference only, shall not be deemed to be a part of this Agreement and shall not be referred to in
connection with the construction or interpretation of this Agreement.

     12.9 Counterparts. This Agreement may be executed in several counterparts, each of which
shall constitute an original and all of which, when taken together, shall constitute one agreement.

     12.10 Venue. The parties to this Agreement agree that any suit, action or proceeding arising
out of, or with respect to, this Agreement or any judgment entered by any court in respect thereof
may be brought only in the courts located in New Castle County, in the State of Delaware or the
federal district courts located within New Castle County, State of Delaware, and the parties hereto
hereby accept the exclusive jurisdiction of those courts for the purpose of any suit, action or
proceeding.

-59-

 

     12.11 Disclosure and Accommodation. Matters disclosed on a Seller and Members Disclosure
Schedule or Exhibit, as the case may be, herein shall be deemed to be adequate disclosure for
purposes of disclosing information only with respect to the particular section of this Agreement to
which such Schedule or Exhibit relates, except to the extent that such matters are also disclosed
on, or cross-referenced to, another Schedule or Exhibit. To the extent that a matter is disclosed,
but a material circumstance related thereto is not ascertainable from the information disclosed on
the Schedule or Exhibit concerning such matter by review of the specific agreements, documents or
other information identified on the Schedule or Exhibit and made available for review, it shall not
be deemed to be adequate disclosure of such material circumstance.

     12.12 Governing Law. This Agreement shall be construed in accordance with, and governed in
all respects by, the internal laws of the State of California (without giving effect to principles
of conflicts of laws).

     12.13 Successors and Assigns. This Agreement shall be binding upon: the Seller and its
successors and assigns (if any); Purchaser, Purchaser Sub and their successors and assigns (if
any); the Members, and their assigns. This Agreement shall inure to the benefit of: the Seller;
the Seller’s Members (to the extent set forth herein); Purchaser and Purchaser Sub; and the
respective successors and assigns (if any) of the foregoing. From and after the date hereof, each
of Purchaser and Purchaser Sub may freely assign this Agreement and any or all of their rights
under this Agreement (including, without limitation, the noncompetition provided for in Section
7.12(a) and (b), and indemnification rights under Article 11), in whole or in
part, to any Subsidiary or any other Person, without obtaining the consent or approval of Seller,
any of the Members, any other party hereto, or of any other Person.

     12.14 Remedies Cumulative; Specific Performance. The rights and remedies of the parties
hereto shall be cumulative (and not alternative). The parties to this Agreement agree that, in the
event of any breach or threatened breach by any party to this Agreement of any covenant, obligation
or other provision set forth in this Agreement for the benefit of any other party to this
Agreement, such other party shall be entitled (in addition to any other remedy that may be
available to it) to (a) a decree or order of specific performance or mandamus to enforce the
observance and performance of such covenant, obligation or other provision, and (b) an injunction
restraining such breach or threatened breach.

     12.15 Waiver.

          (a) No failure on the part of any Person to exercise any power, right, privilege or remedy
under this Agreement, and no delay on the part of any Person in exercising any power, right,
privilege or remedy under this Agreement, shall operate as a waiver of such power, right, privilege
or remedy; and no single or partial exercise of any such power, right, privilege or remedy shall
preclude any other or further exercise thereof or of any other power, right, privilege or remedy.

          (b) No Person shall be deemed to have waived any claim arising out of this Agreement, or any
power, right, privilege or remedy under this Agreement, unless the waiver of such claim, power,
right, privilege or remedy is expressly set forth in a written instrument duly

-60-

 

executed and delivered on behalf of such Person; and any such waiver shall not be applicable
or have any effect except in the specific instance in which it is given.

     12.16 Amendments. This Agreement may not be amended, modified, altered or supplemented other
than by means of a written instrument duly executed and delivered on behalf of all of the parties
hereto.

     12.17 Severability. In the event that any provision of this Agreement, or the application of
any such provision to any Person or set of circumstances, shall be determined to be invalid,
unlawful, void or unenforceable to any extent, the remainder of this Agreement, and the application
of such provision to Persons or circumstances other than those as to which it is determined to be
invalid, unlawful, void or unenforceable, shall not be impaired or otherwise affected and shall
continue to be valid and enforceable to the fullest extent permitted by law.

     12.18 Parties in Interest. Except as provided in Section 12.13, none of the
provisions of this Agreement is intended to provide any rights or remedies to any Person other than
the parties hereto and their respective successors and assigns (if any).

     12.19 Entire Agreement. This Agreement and the other agreements referred to herein set forth
the entire understanding of the parties hereto relating to the subject matter hereof and thereof
and supersede all prior agreements and understandings among or between any of the parties relating
to the subject matter hereof and thereof.

     12.20 Construction.

          (a) For purposes of this Agreement, whenever the context requires: the singular number shall
include the plural, and vice versa; the masculine gender shall include the feminine and neuter
genders; the feminine gender shall include the masculine and neuter genders; and the neuter gender
shall include the masculine and feminine genders.

          (b) The parties hereto agree that any rule of construction to the effect that ambiguities are
to be resolved against the drafting party shall not be applied in the construction or
interpretation of this Agreement.

          (c) As used in this Agreement, the words “include” and “including,” and variations
thereof, shall not be deemed to be terms of limitation, but rather shall be deemed to be followed
by the words “without limitation.”

          (d) Except as otherwise indicated, all references in this Agreement to “Sections” and
“Exhibits” are intended to refer to Sections of this Agreement and Exhibits to this
Agreement.

[Signatures Follow on a Separate Page]

-61-

 

     IN WITNESS WHEREOF, each of the parties has caused this Agreement to be executed on its behalf
by their respective officers thereunto duly authorized all as of the date first written above.

	 	 	 	 	 	 	 
	 	 	“Purchaser”	 	 
	 
	 	 	 	 	 	 
	 	 	MICRUS ENDOVASCULAR CORPORATION	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert A. Stern	 	 
	 

	 	Name:
	 	Robert A. Stern 

	 	 
	 

	 	Title:
	 	Executive Vice President 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	“Purchaser Sub”	 	 
	 
	 	 	 	 	 	 
	 	 	MICRUS DESIGN TECHNOLOGY, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	/s/ Robert A. Stern 	 	 
	 

	 	Name:
	 	Robert A. Stern 

	 	 
	 

	 	Title:
	 	Chief Financial Officer 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	“Seller”	 	 
	 
	 	 	 	 	 	 
	 	 	VASCON, LLC	 	 
	 
	 

	 	By:	 	/s/ Oscar Jimenez 	 	 
	 

	 	Name:
	 	Oscar Jimenez 

	 	 
	 

	 	Title:
	 	CEO 

	 	 
	 

	 	 	 	 

	 	 
	 
	 	 	 	 	 	 
	 	 	“Members”	 	 
	 
	 	 	 	 	 	 
	 	 	   	 	 
	 	 	[***]	 	 

Signature Page

to Asset Purchase Agreement

 

 

EXHIBIT A

CERTAIN DEFINITIONS

     “Affiliate” shall mean any member of the immediate family (including spouse, brother,
sister, descendant, ancestor or in-law) of any officer, director or member of a Person or any
corporation, partnership, trust or other entity in which Seller or any such family member has a
five percent (5%) or greater interest or is a director, officer, partner or trustee. The term
Affiliate shall also include any entity which controls, or is controlled by, or is under common
control with any of the individuals or entities described in the preceding sentence.

     “Agreement” shall mean the Asset Purchase Agreement to which this Exhibit A is
attached (including the Seller and Members Disclosure Schedule and all other schedules and exhibits
attached hereto), as it may be amended from time to time.

     “Assignment and Assumption” shall have the meaning specified in Section
3.2(b).

     “Assignment Consent” shall have the meaning specified in Section 1.5(a).

     “Assumed Liabilities” shall have the meaning specified in Section 1.3.

     “Best Efforts” shall mean the efforts that a prudent Person desiring to achieve a
particular result would use in similar circumstances to achieve such result as expeditiously as
possible provided, however, that a person required to use his Best Efforts under this Agreement
will not be thereby required to take actions that would result in a materially adverse change in
the benefits to such person of this Agreement and the Transaction, or to dispose of or make any
change to its business, expend any material funds or incur any other material burden.

     “Books and Records” shall have the meaning specified in Section 1.1(n).

     “Breach” shall mean the occurrence of any inaccuracy in or breach of, or any failure
to comply with or perform, a representation, warranty, covenant, obligation or other provision of
any Contract.

     “Business” shall have the meaning set forth in the first Recital.

     “Business Day” means any day other than (i) a Saturday or a Sunday or (ii) a day on
which banking and savings and loan institutions are authorized or required by law to be closed.

     “Cash Amount” shall have the meaning specified in Section 2.1(a)(i)(1).

     “Closing” shall have the meaning specified in Section 3.1.

     “Closing Balance Sheet” shall have the meaning specified in Section 2.2(b).

     “Closing Date” shall have the meaning specified in Section 3.1.

     “Closing Working Capital” shall have the meaning specified in Section
2.2(b)(ii).

 

 

     “Code” shall mean the Internal Revenue Code of 1986, as amended.

     “Competing Party” shall have the meaning specified in Section 6.3.

     “Competing Transaction” shall have the meaning specified in Section 6.3.

     “Competitive Activity” shall have the meaning specified in Section
7.12(a)(ii).

     “Confidential Information” shall have the meaning specified in Section
7.12(e).

     “Consent” shall mean any approval, consent, ratification, permission, waiver or
authorization (including any Governmental Approval).

     “Contract” shall mean any agreement, contract, consensual obligation, promise,
understanding, arrangement, commitment or undertaking of any nature (whether written or oral and
whether express or implied), whether or not legally binding.

     “Contractors” shall have the meaning specified in Section 4.20(a).

     “Copyrights” shall mean all copyrights, including in and to rights in or to works of
authorship and all other rights corresponding thereto throughout the world, whether published or
unpublished, including rights to prepare, reproduce, perform, display and distribute copyrighted
works and copies, compilations and derivative works thereof.

     “Damages” shall mean and include any loss, damage, injury, decline in value, lost
opportunity, Liability, claim, demand, settlement, judgment, award, fine, penalty, Tax, fee
(including any legal fee, accounting fee, expert fee or advisory fee), charge, cost (including any
cost of investigation), or expense of any nature.

     “Defined Benefit Plan” shall mean either a plan described in Section 3(35) of ERISA or
a plan subject to the minimum funding standards set forth in Section 302 of ERISA and Section 412
of the Code.

     “Deposits and Advances” shall have the meaning specified in Section 1.1(i).

     [***]

     “Employee Benefit Plan” shall have the meaning specified in Section 3(3) of
ERISA.

     “Encumbrance” shall mean any lien, pledge, hypothecation, charge, mortgage, security
interest, encumbrance, equity, trust, equitable interest, claim, preference, right of possession,
lease, tenancy, license, encroachment, covenant, infringement, interference, Order, proxy, option,
right of first refusal, preemptive right, community property interest, legend, defect, impediment,
exception, reservation, limitation, impairment, imperfection of title, condition or restriction of
any nature (including any restriction on the voting of any security, any restriction on the
transfer of any security or other asset, any restriction on the receipt of any income derived from
any asset, any restriction on the use of any asset and any restriction on the possession, exercise
or transfer of any other attribute of ownership of any asset).

 

 

     “Entity” shall mean any corporation (including any non-profit corporation), general
partnership, limited partnership, limited liability partnership, joint venture, estate, trust or
company (including any limited liability company or joint stock company).

     “Environmental and Safety Laws” shall mean any federal, state, local or foreign Legal
Requirement relating to pollution or Hazardous Materials or otherwise relating to protection of
human health or the environment (including ambient air, surface water, ground water, land surface,
subsurface strata, wetlands, species or natural resources), including any law or regulation
relating to emissions, discharges, releases or threatened releases of Hazardous Substances, or
otherwise relating to the manufacture, processing, distribution, use, treatment, storage, disposal,
transport or handling of Hazardous Substances including but not limited to such laws as the
Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601, et seq.
(CERCLA), the Resource Conservation and Recovery Act, 42 U.S.C. § 6901, et seq., as amended, any
regulation promulgated thereunder and any comparable as similar state and local state statutes and
regulations.

     “Environmental and Safety Laws Liability” shall mean any potential or actual cost,
damages, expense, liability, claim, obligation or other responsibility arising from or under any
Environmental and Safety Laws, including those consisting of or relating to:

     (a) any environmental, health or safety matter or condition (including on-site or
off-site contamination, occupational safety and health and regulation of any Hazardous Materials;

     (b) any fine, penalty, judgment, award, settlement, legal or administrative proceeding,
damages, loss, claim, demand or response, remedial or inspection cost or expense arising under any
Environmental and Safety Laws, including oversight costs;

     (c) financial responsibility under any Environmental and Safety Law for cleanup costs or
corrective action, including any cleanup, removal, containment or other remediation or response
actions (“Cleanup”) required by any Environmental and Safety Law (whether or not such Cleanup has
been required or requested by any Governmental Authority or any other Person) and for any natural
resource damages; or

     (d) any other compliance, corrective or remedial measure required under any Environmental and
Safety Law.

     The terms “removal,” “remedial” and “response action” include the
types of activities covered by the United States Comprehensive Environmental Response, Compensation
and Liability Act of 1980 (CERCLA) as amended, and comparable or similar state or local laws and
regulations.

     “Environmental Report” shall have the meaning specified in Section 9.1(j).

     “ERISA” shall mean the Employee Retirement Income Security Act of 1974, as amended.

     “Escrow” shall have the meaning specified in Section 2.1(c).

 

 

     “Escrow Agreement” shall have the meaning specified in Section 2.1(c).

     “Escrow Amount” shall have the meaning specified in Section 2.1(c).

     “Estoppel Letters” shall have the meaning specified in Section 9.1(d).

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and the rules
and regulations of the Commission promulgated thereunder.

     “Excluded Assets” shall have the meaning specified in Section 1.2.

     “Excluded Contracts” shall have meaning specified in Section 1.2(h).

     “Excluded Liabilities” shall have the meaning specified in Section 1.4.

     “Exercise All Rights” shall mean to exercise or practice any and all rights now or
hereafter provided by law (by treaty, statute, common law or otherwise) anywhere in the world to
inventors, authors, creators and/or owners of intellectual or intangible property; including the
right to make, use, disclose, sell, offer to sell, distribute, import, rent, lease, lend,
reproduce, prepare derivative works of and otherwise modify, perform and display (whether publicly
or otherwise), broadcast, transmit, use and/or otherwise exploit such intellectual or intangible
property and/or any product, component or service embodying, related to or subject to such
intellectual or intangible property; and the right to assign, transfer, license and/or sublicense
(with the right to sublicense further) any of the foregoing, and the right to have and/or authorize
others do any of the foregoing.

     “Financial Statements” shall have the meaning specified in Section 4.7(a).

     “FIRPTA Notification Letter” shall have the meaning specified in Section
3.2(e).

     “Free or Copyleft Software” means any software that is generally available in source
code form under a license agreement that requires, as condition of being distributed, that the
source code for the software be made available to licensees to whom such software is distributed,
including without limitation any software licensed under the GNU General Public License, the GNU
Library (or Lesser) General Public License, or the Mozilla Public License.

     “FDA” shall have the meaning specified in Section 4.22(c).

     “GAAP” means U.S. generally accepted accounting principles in effect on the date on
which they are to be applied pursuant to this Agreement, applied consistently throughout the
relevant periods.

     “General Assignment and Bill of Sale” shall have the meaning specified in Section
3.2(a).

     “Governmental Approval” shall mean any: (a) permit, license, certificate, concession,
approval, consent, ratification, permission, clearance, confirmation, exemption, waiver, franchise,
certification, designation, rating, registration, variance, qualification, accreditation or

 

 

authorization issued, granted, given or otherwise made available by or under the authority of
any Governmental Authority or pursuant to any Legal Requirement; or (b) right under any Contract
with any Governmental Authority.

     “Governmental Authority” shall mean any: (a) nation, principality, state,
commonwealth, province, territory, county, municipality, district or other jurisdiction of any
nature; (b) federal, state, local, municipal, foreign or other government; (c) governmental or
quasi governmental authority of any nature (including any governmental division, subdivision,
department, agency, bureau, branch, office, commission, council, board, instrumentality, officer,
official, representative, organization, unit, body or Entity and any court or other tribunal); (d)
multinational organization or body; or (e) individual, Entity or body exercising, or entitled to
exercise, any executive, legislative, judicial, administrative, regulatory, police, military or
taxing authority or power of any nature.

     “Hazardous Materials” shall mean each and every element, compound, chemical mixture,
contaminant, pollutant, material, waste or other substance which is defined, determined, identified
or regulated as hazardous or toxic under any Environmental and Safety Laws, including gasoline,
petroleum and petroleum products, asbestos, asbestos containing materials, polychlorinated
biphenyls, urea formaldehyde, insulation, mold, microbial matter, radon and lead based paint,
including, without limitation (i) any “hazardous substance” defined as such (or for purposes of)
the Comprehensive Environmental Response, Compensation and Liability Act, 42 U.S.C. § 9601(14), as
amended, or any so called “superfund” or “superlien” laws, including the judicial interpretations
thereof; (ii) any “pollutant” or “contaminant” as defined in 42 U.S.C. § 9601(33); (iii) any
material defined as a “hazardous waste” pursuant to 40 C.F.R. Part 260; (iv) any “hazardous
chemical” as defined pursuant to 29 C.F.R. Part 1910; and (v) any other toxic substance or
contaminant that is subject to any other Environmental and Safety Law or other past or present
requirement of any Governmental Authority. Any reference above to an Environmental and Safety Law
includes the same as it may be amended from time to time, including the judicial interpretation
thereof, and any regulations promulgated thereunder.

     “Indemnitee” shall have the meaning specified in Section 11.4.

     “Indemnitor” shall have the meaning specified in Section 11.4.

     “Independent Accountants” shall have the meaning specified in Section
2.2(b)(iv).

     “Interim Working Capital” shall have the meaning specified in Section
2.2(b)(i).

     “Insurance Policies” shall have the meaning specified in Section 4.14.

     “Intellectual Property” shall mean all technology, information, or materials,
including without limitation works of authorship, inventions, software, documentation, processing,
manufacturing or marketing information, inventions, processes, ideas, papers, blueprints, drawings,
chemical compositions, formulae, diaries, notebooks, specifications, designs, methods of
manufacture and data processing software, compilations of information.

     “Intellectual Property Rights” shall mean any or all rights in and to Intellectual
Property and intangible industrial property rights, including, without limitation, (i) Patents,
Trade Secrets,

 

 

Copyrights, Mask Works, Trademarks and (ii) any rights similar, corresponding or equivalent to
any of the foregoing anywhere in the world.

     “Interim Balance Sheet” shall have the meaning specified in Section 4.7(a).

     “Interim Balance Sheet Date” shall have the meaning specified in Section
4.7(a).

     “Inventory” shall have the meaning specified in Section 1.1(b).

     “Investments” shall have the meaning specified in Section 4.33.

     “IRS” means the Internal Revenue Service.

     “IRS Notice” shall have the meaning specified in Section 3.2(f).

     “Key Employees” shall mean [***].

     “Knowledge”: An individual shall be deemed to have “Knowledge” of a particular fact
or other matter if: (i) such individual is actually aware of such fact or other matter or (ii)
(except when Knowledge is stated to be “actual Knowledge”) a prudent individual could be expected
to discover or otherwise become aware of such fact or other matter in the course of conducting a
reasonably comprehensive investigation concerning the truth or existence of such fact or other
matter. Seller shall be deemed to have “Knowledge” of a particular fact or other matter if any
Member has actual knowledge of such fact or other matter after due and diligent inquiry.

     “Leased Real Property” shall have the meaning set forth in Section 1.1(f).

     “Legal Requirement” shall mean any federal, state, local, municipal, foreign or other
law, statute, legislation, constitution, principle of common law, resolution, ordinance, code,
Order, edict, decree, proclamation, treaty, convention, rule, regulation, guidance document,
permit, approval, clearance, ruling, directive, pronouncement, requirement (licensing or
otherwise), specification, determination, decision, opinion or interpretation that is, has been or
may in the future be issued, enacted, adopted, passed, approved, promulgated, made, implemented or
otherwise put into effect by or under the authority of any Governmental Authority, including,
without limitation, by the Food and Drug Administration of the United States Department of Health
and Human Services (“FDA”), and all laws and regulations relating to occupational safety and health
and the environment.

     “Liability” shall mean any debt, obligation, duty or liability of any nature
(including any unknown, undisclosed, unmatured, unaccrued, unasserted, contingent, indirect,
conditional, implied, vicarious, derivative, joint, several or secondary liability), regardless of
whether such debt, obligation, duty or liability would be required to be disclosed on a balance
sheet prepared in accordance with generally accepted accounting principles and regardless of
whether such debt, obligation, duty or liability is immediately due and payable, including, without
limitation, any loan or indebtedness between Seller and Members and any Member “guaranteed
payments” owed by Seller to the Members (for purposes of clarification, such loans, indebtedness
and “guaranteed payments” owed by Seller to Member as described in this definition shall remain

 

 

Seller liabilities to be paid in accordance with the provisions of this Agreement and shall in
no event be included as Assumed Liabilities of Purchaser Sub).

     “Machinery and Equipment” shall have the meaning specified in Section 1.1(c).

     “Major Customers” shall have the meaning specified in Section 6.11.

     “Mask-Works” shall mean all mask works, mask work registrations and applications
therefor, and any equivalent or similar rights in semiconductor masks, layouts, architectures or
topology.

     “Material Adverse Effect” means (i) with respect to Purchaser or Purchaser Sub, as the
case may be, any event, change or effect that, when taken individually or together with all other
adverse events, changes and effects, is or is reasonably likely (a) to be materially adverse to the
condition (financial or otherwise), properties, assets, liabilities, business, operations, results
of operations or prospects of Purchaser or Purchaser Sub, as the case may be, or their respective
subsidiaries, taken as a whole or (b) to prevent or materially delay consummation of the
Transaction or otherwise to prevent Purchaser or Purchaser Sub, as the case may be, or their
respective subsidiaries from performing their obligations under this Agreement and (ii) with
respect to Seller, any event, change or effect that, when taken individually or together with all
other adverse events, changes and effects, is or is reasonably likely (a) to be materially adverse
to the condition (financial or otherwise), properties, assets (including Purchased Assets),
liabilities (including Assumed Liabilities), business, operations, results of operations or
prospects of Seller, its Subsidiaries, or the Business or (b) to prevent or materially delay
consummation of the Transaction or otherwise to prevent Seller from performing their obligations
under this Agreement.

     “Material Contracts” shall have the meaning specified in Section 4.13(a).

     “Member of the Controlled Group” shall mean each trade or business, whether or not
incorporated, that would be treated as a single employer with Seller under Section 4001 of ERISA or
Section 414(b), (c), (m) or (o) of the Code.

     “Multiemployer Plan” shall mean a plan described in Section 3(37) of ERISA.

     “Non-Assignable Asset” shall have the meaning specified in Section 1.5(a).

     “Noncompetition Period” shall have the meaning specified in Section
7.12(a)(i).

     “Order” shall mean any: (a) temporary, preliminary or permanent order, judgment,
injunction, edict, decree, ruling, pronouncement, determination, decision, opinion, verdict,
sentence, stipulation, subpoena, writ or award that is or has been issued, made, entered, rendered
or otherwise put into effect by or under the authority of any court, administrative agency or other
Governmental Authority or any arbitrator or arbitration panel; or (b) Contract with any
Governmental Authority that is or has been entered into in connection with any Proceeding.

     “Ordinary Course of Business” shall describe any action taken by a party if (a) such
action is consistent with such party’s past practices and is taken in the ordinary course of such

 

 

party’s normal day to day operations; (b) such action is taken in accordance with sound and
prudent business practices; (c) such action is not required to be authorized by such party’s
members, board of directors or any committee thereof and does not require any other separate or
special authorization of any nature; and (d) such action is similar in nature and magnitude to
actions customarily taken, without any separate or special authorization, in the ordinary course of
the normal day to day operations of other Entities that are engaged in businesses similar to such
party’s business

     “Outside Closing Date” shall have meaning specified in Section 10.1(c).

     “Packaging Materials” shall have the meaning specified in Section 7.10(d).

     “Patent Assignment” shall have the meaning specified in Section 3.2(c).

     “Patents” shall mean all United States and foreign patents and utility models and
applications therefor and all reissues, divisions, re-examinations, renewals, extensions,
provisionals, continuations and continuations-in-part thereof, and equivalent or similar rights
anywhere in the world in inventions and discoveries, including invention disclosures related to the
Business or any Purchased Assets or Assumed Liabilities.

     “Person” shall mean any individual, Entity or Governmental Authority.

     “Personal Property” shall have the meaning specified in Section 1.1(d).

     “Personal Property Leases” shall have the meaning specified in Section 1.1(g).

     “Post-Closing Adjustment Amount” shall have the meaning specified in Section
2.2(a).

     “Post-Closing Period” shall mean any taxable period beginning after the close of
business on the Closing Date or, in the case of any tax period which includes, but does not begin,
after the close of business on the Closing Date, the portion of such period beginning after the
close of business on the Closing Date.

     “Pre-Closing Period” shall mean any taxable period ending on or before the close of
business on the Closing Date or, in the case of any taxable period which includes, but does not end
on, the Closing Date, the portion of such period up to and including the Closing Date.

     “Proceeding” shall mean any action, suit, litigation, arbitration, proceeding
(including any civil, criminal, administrative, investigative or appellate proceeding),
prosecution, contest, hearing, inquiry, inquest, audit, examination or investigation that is, has
been or may in the future be commenced, brought, conducted or heard at law or in equity or before
any Governmental Authority or any arbitrator or arbitration panel.

     “PTO” shall have the meaning specified in Section 4.17(g).

     “Purchase Price” shall have the meaning specified in Section 2.1(a).

     “Purchased Assets” shall have the meaning specified in Section 1.1.

 

 

     “Purchaser” shall mean Micrus Endovascular Corporation, a Delaware corporation.

     “Purchaser Sub” shall mean Micrus Design Technology, Inc.

     “Purchaser Damages” shall have the meaning specified in Section 11.2.

     “Purchaser Disclosure Schedule” shall have the meaning specified in Article 5.

     “Purchaser’s Common Stock” shall mean the Purchaser’s common stock, par value $0.01
per share.

     “Real Property Leases” shall have the meaning specified in Section 1.1(f).

     “Rebates and Credits” shall have the meaning specified in Section 1.1(j).

     “Receivables” shall have the meaning specified in Section 1.1(a).

     “Registered Intellectual Property Rights” shall mean all United States, international
and foreign: (i) Patents, including applications therefor; (ii) registered Trademarks,
applications to register Trademarks, including intent-to-use applications, or other registrations
or applications related to Trademarks; (iii) Copyright registrations and applications to register
Copyrights; (iv) Mask Work registrations and applications to register Mask Works; and (v) any other
Intellectual Property Rights that is the subject of an application, certificate, filing,
registration or other document issued by, filed with, or recorded by, any state, government or
other public legal authority at any time.

     “Representatives” shall mean officers, directors, employees, attorneys, accountants,
advisors, agents, distributors, licensees, shareholders, subsidiaries and lenders of a party. In
addition, all Affiliates of Seller shall be deemed to be “Representatives” of Seller.

     “Resolutions” shall have the meaning specified in Section 4.2(a)(iii).

     “Restricted Territory” shall have the meaning specified in Section
7.12(a)(iii).

“Retained Marks” shall have the meaning specified in Section 7.10(a)

     “Securities Act” shall mean the Securities Act of 1933, as amended.

     “Seller” shall mean VasCon, LLC, a Delaware limited liability company.

     “Seller Benefit Plans” shall have the meaning specified in Section 4.21.

     “Seller Claims” shall have the meaning specified in Section 1.1(m).

     “Seller Contracts” shall have the meaning specified in Section 1.1(k).

     “Seller and Members Disclosure Schedule” shall have the meaning specified in
Article 4.

 

 

     “Seller Intellectual Property” means all Intellectual Property owned, exclusively
licensed to, held for the benefit of, or otherwise controlled by Seller.

     “Seller Intellectual Property Rights” means all Intellectual Property Rights related
to Seller Intellectual Property.

     “Seller Phantom Plan” shall mean the VasCon 2005 Incentive Plan.

     “Seller Phantom Units” shall mean all outstanding units, whether vested or unvested,
granted, awarded or issued from or under the Seller Phantom Plan.

     “Seller Products” shall mean all products and services manufactured, made, designed,
maintained, supported, developed, sold, licensed, marketed, or otherwise distributed or provided
(or planned or envisioned to be manufactured, made, designed, maintained, supported, developed,
sold, licensed, marketed, or otherwise distributed or provided) by or for Seller (including all
versions and releases thereof, whether already distributed or provided, under development, planned
or conceived, or otherwise), together with any related materials, information or data, including,
without limitation, the names, numbers (e.g., part numbers) and packaging associated with such
products and services..

     “Seller Registered Intellectual Property Rights” shall have the meaning specified in
Section 4.17(a).

     “Seller’s Board” means the board of directors of Seller.

     “Seller’s Basket” shall have the meaning specified in Section 11.5(a).

     “Shares” shall have the meaning specified in Section 2.1(a)(i)(2).

     “Subsidiary” shall mean, any direct or indirect subsidiary of an Entity.

     “Survival Date” shall have the meaning specified in Section 11.1.

     “Tax” (and, with correlative meaning, “Taxes” and “Taxable”) means any net income,
alternative or add-on minimum tax, gross income, gross receipts, sales, use, ad valorem, transfer,
franchise, profits, license, withholding, payroll, employment, excise, severance, stamp,
occupation, premium, property, environmental or windfall profit tax, custom, duty or other tax,
governmental fee or other assessment or charge of any kind whatsoever, together with any interest
or any penalty, addition to tax or additional amount and any interest on such penalty, addition to
tax or additional amount, imposed by any Tax Authority.

     “Tax Authority” means Governmental Authority responsible for the imposition,
assessment or collection of any Tax (domestic or foreign).

     “Tax Return” shall mean any return, statement, declaration, notice, certificate or
other document that is or has been filed with or submitted to, or required to be filed with or
submitted to, any Governmental Authority in connection with the determination, assessment,
collection or

 

 

payment of any Tax or in connection with the administration, implementation or enforcement of
or compliance with any Legal Requirement related to any Tax.

     “Trade Secrets” shall mean all rights in or to trade secrets under applicable law and
other rights in know-how and confidential or proprietary information.

     “Trademark Assignment” shall have the meaning specified in Section 3.2(c).

     “Trademarks” shall mean any and all trademarks, service marks, logos, trade names,
corporate names, Internet domain names and addresses, and all goodwill associated therewith
throughout the world.

     “Transaction” shall mean, collectively, the transactions contemplated by this
Agreement.

     “Transaction Agreements” shall mean this Agreement and all other agreements,
certificates, instruments, documents and writings delivered by Purchaser, Purchaser Sub and/or
Seller in connection with the Transaction.

     “Transferred Employees” shall have the meaning specified in Section 8.1.

     “Transfer Taxes” shall mean all federal, state, local or foreign sales, use, transfer,
real property transfer, mortgage recording, stamp duty, value-added or similar Taxes that may be
imposed in connection with the transfer of Purchased Assets or assumption of Assumed Liabilities,
together with any interest, additions to Tax or penalties with respect thereto and any interest in
respect of such additions to Tax or penalties.

     “Voting Agreement” shall have the meaning specified in the recitals.

     “WARN Act” shall have the meaning specified in Section 4.20(e).

     “Working Capital” shall have the meaning specified in Section 2.2(b)(i).

 

 

EXHIBITS AND SCHEDULES

	 	 	 
	Exhibit A
	 	Certain Definitions
	Exhibit 2.1(c)
	 	Escrow Agreement
	Exhibit 3.2(a)
	 	General Assignment and Bill of Sale
	Exhibit 3.2(b)
	 	Assignment and Assumption
	Exhibit 3.2(c)(i)
	 	Trademark Assignment
	Exhibit 3.2(c)(ii)
	 	Patent Assignment
	Exhibit 3.2(e)(1)
	 	FIRPTA Notification Letter
	Exhibit 3.2(e)(2)
	 	FIRPTA Notification Letter Statement to Members
	Exhibit 3.2(f)
	 	Notice to Internal Revenue Service
	Exhibit 9.1(d)
	 	Landlord Estoppel (Real Property Lease)
	Exhibit 9.1(e)
	 	Opinion of Seller’s and Members’ Counsel
	Exhibit 3.2(k)
	 	Member/Key Employee Offer Letter(s)
	Exhibit 3.2(l)
	 	Non-competition Agreement
	Exhibit 3.3(g)
	 	Registration Rights Agreement
	 
	 	 
	Schedule 1.1(a)
	 	Receivables
	Schedule 1.1(b)
	 	Inventory
	Schedule 1.1(c)
	 	Machinery and Equipment
	Schedule 1.1(d)
	 	Personal Property
	Schedule 1.1(f)
	 	Leased Real Property
	Schedule 1.1(g)
	 	Personal Property Leases
	Schedule 1.1(h)
	 	Intellectual Property
	Schedule 1.1(i)
	 	Deposits and Advances
	Schedule 1.1(j)
	 	Rebates and Credits
	Schedule 1.1(k)
	 	Seller Contracts
	Schedule 1.1(l)
	 	Governmental Approvals
	Schedule 1.1(m)
	 	Claims
	Schedule 1.2(d)
	 	Excluded Personal Property
	Schedule 1.2(h)
	 	Excluded Contracts
	Schedule 2.1(b)
	 	Internal Products
	Schedule 4
	 	Seller and Members Disclosure Schedule
	Schedule 4.3(a)
	 	Seller Members
	Schedule 4.5(e)
	 	Notices
	Schedule 4.7(c)
	 	Accounts Payable
	Schedule 4.15
	 	Encumbrances
	Schedule 4.17(m)
	 	Seller Contracts Affecting Intellectual Property Rights
	Schedule 4.25(b)
	 	Seller Governmental Approvals Pursuant to Environmental and Safety Laws
	Schedule 4.32
	 	Bank Accounts
	Schedule 5
	 	Purchaser Disclosure Schedule
	Schedule 5.3
	 	Notices
	Schedule 8.1
	 	Transferred Employees

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