Document:

AGREEMENT & PLAN OF MERGER

 EXHIBIT 10.3 
  
 AGREEMENT AND PLAN OF MERGER 
  

by and among 
  
 ZOLL MEDICAL CORPORATION, 
 (the “Parent”) 
  
 REV ACQUISITION CORPORATION, 
 (“MergerSub”) 
  
 REVIVANT CORPORATION, 
 (the
“Company”) 
  
 and 
  
 With respect to Sections 4, 13 and 14 only 
 The Parties Listed on Schedule A hereto 
 (the “Stockholders’ Representative”) 
  
 August 13, 2003 
  

 AGREEMENT AND PLAN OF MERGER 
  
 INDEX 
  

					
	 	  	 	  	Page

	 SECTION 1. THE MERGER; EFFECTIVE TIME; CLOSING
	  	1
	 1.1
	  	 The Merger
	  	1
	 1.2
	  	 Effective Time
	  	1
	 1.3
	  	 Closing
	  	2
	 1.4
	  	 Effects of the Merger
	  	2
	 1.5
	  	 Further Assurances
	  	2
		
	 SECTION 2. CERTIFICATE OF INCORPORATION AND BY-LAWS OF THE SURVIVING CORPORATION
	  	2
	 2.1
	  	 Certificate of Incorporation and By-laws
	  	2
		
	 SECTION 3. DIRECTORS AND OFFICERS OF THE SURVIVING CORPORATION
	  	2
	 3.1
	  	 Directors
	  	2
	 3.2
	  	 Officers
	  	2
		
	 SECTION 4. MERGER CONSIDERATION; CANCELLATION OF SHARES IN THE MERGER
	  	2
	 4.1
	  	 Share and Cash Consideration for the Merger; Conversion or Cancellation of Shares in the Merger
	  	2
	 4.2
	  	 Exchange and Payment Procedures
	  	14
	 4.3
	  	 Dissenting Stock
	  	15
	 4.4
	  	 Treatment of Restricted Stock
	  	16
	 4.5
	  	 Treatment of Stock Options
	  	16
	 4.6
	  	 Treatment of Warrants
	  	16
	 4.7
	  	 Limitation on Parent Common Stock
	  	16
	 4.8
	  	 Tax Treatment of Deferred Payments
	  	17
	 4.9
	  	 Tax Withholding
	  	17
		
	 SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY
	  	17
	 5.1
	  	 Making of Representations and Warranties
	  	17
	 5.2
	  	 Restatement of Master Agreement
	  	17
	 5.3
	  	 Transfer of Shares
	  	18
	 5.4
	  	 Required Voting Percentage
	  	18

  

 (i) 

					
	 SECTION 6. INTENTIONALLY OMITTED
	  	18
		
	 SECTION 7. COVENANTS OF THE COMPANY
	  	18
	 7.1
	  	 Making of Covenants and Agreements
	  	18
	 7.2
	  	 Conduct of Business
	  	18
	 7.3
	  	 Preservation of Business
	  	19
	 7.4
	  	 Authorization from Others
	  	19
	 7.5
	  	 Notice of Default
	  	20
	 7.6
	  	 Consummation of Agreement
	  	20
	 7.7
	  	 Parent Access to the Company
	  	20
	 7.8
	  	 Cooperation of the Company
	  	20
	 7.9
	  	 No Solicitation of Other Offers
	  	20
	 7.10
	  	 Confidentiality
	  	20
	 7.11
	  	 Regulatory Matters
	  	21
	 7.12
	  	 Delivery of Financial Statements
	  	21
	 7.13
	  	 Supplements to Schedules
	  	21
	 7.14
	  	 Officers’ and Directors’ Insurance
	  	22
	 7.15
	  	 Intellectual Property
	  	22
		
	 SECTION 8. REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGERSUB
	  	22
	 8.1
	  	 Making of Representations and Warranties
	  	22
	 8.2
	  	 Organization, Good Standing and Qualification
	  	22
	 8.3
	  	 Authorization
	  	22
	 8.4
	  	 Consents
	  	23
	 8.5
	  	 Finder’s Fee
	  	23
	 8.6
	  	 Filings with the Securities and Exchange Commission
	  	23
	 8.7
	  	 Stockholder Approvals
	  	23
	 8.8
	  	 Absence of Changes
	  	23
		
	 SECTION 9. INTENTIONALLY OMITTED
	  	24
		
	 SECTION 10. CONDITIONS TO CLOSING
	  	24
	 10.1
	  	 Conditions to Parent’s and MergerSub’s Obligations to Close
	  	24
	 10.2
	  	 Conditions to Company’s Obligations to Close
	  	25
		
	 SECTION 11. RIGHTS AND OBLIGATIONS SUBSEQUENT TO CLOSING
	  	25
	 11.1
	  	 General Rights And Obligations
	  	25
	 11.2
	  	 Tax Matters
	  	25
	 11.3
	  	 Registration of Parent Common Stock
	  	25
	 11.4
	  	 Nasdaq National Market Listing
	  	29

  

 (ii) 

					
	 11.5
	  	 Company Stockholder Documents
	  	29
	 11.6
	  	 Certain Employee Benefit Matters
	  	30
		
	 SECTION 12. TERMINATION OF AGREEMENT
	  	30
	 12.1
	  	 Termination
	  	30
	 12.2
	  	 Effect of Termination
	  	31
	 12.3
	  	 Right to Proceed
	  	31
		
	 SECTION 13. INDEMNIFICATION
	  	31
	 13.1
	  	 Indemnification by Stockholders
	  	31
	 13.2
	  	 Indemnification by ZOLL
	  	31
	 13.3
	  	 Indemnification Procedures
	  	32
	 13.4
	  	 Limitations on Indemnification
	  	32
	 13.5
	  	 Setoff
	  	33
	 13.6
	  	 Sole Remedy
	  	33
		
	 SECTION 14. MISCELLANEOUS
	  	33
	 14.1
	  	 Fees and Expenses
	  	33
	 14.2
	  	 Governing Law
	  	34
	 14.3
	  	 Notices
	  	34
	 14.4
	  	 Entire Agreement
	  	35
	 14.5
	  	 Assignability; Binding Effect
	  	35
	 14.6
	  	 Captions and Gender
	  	35
	 14.7
	  	 Execution in Counterparts
	  	35
	 14.8
	  	 Amendments
	  	35
	 14.9
	  	 Publicity and Disclosures
	  	35
	 14.10
	  	 Dispute Resolution
	  	36
	 14.11
	  	 Specific Performance
	  	37
	 14.12
	  	 Reportable Transactions
	  	37

  

 (iii) 

 AGREEMENT AND PLAN OF MERGER 
  
 AGREEMENT AND PLAN OF MERGER entered into as of August 13, 2003 by and among ZOLL Medical Corporation, a Massachusetts
corporation (the “Parent”), Rev Acquisition Corporation, a Delaware corporation and a wholly-owned subsidiary of the Parent (“MergerSub” and together with the Parent, “ZOLL”), Revivant Corporation,
a Delaware corporation (the “Company”), and with respect to Sections 4, 13 and 14 only, the persons whose names are set forth on Schedule A attached hereto (collectively the “Stockholders’
Representative”). 
  
 WHEREAS, the Parent desires to
acquire the Company through a merger of MergerSub with and into the Company; 
  
 WHEREAS, the respective Boards of Directors of the Company, the Parent and MergerSub each have determined that it is in the best interests of their respective stockholders and advisable for the MergerSub to merge with
and into the Company, on the terms and subject to the conditions of this Agreement; 
  
 WHEREAS, in accordance with Sections 251 and 228 of the General Corporation Law of the State of Delaware (the “DGCL”), each of MergerSub and the Company has received the requisite written consent of
their respective stockholders to enter into this Agreement and to consummate the transactions contemplated hereby; and 
  
 WHEREAS, this Agreement is binding on all the holders of the Company’s capital stock (herein collectively referred to as the
“Stockholders” and individually as a “Stockholder”) as if each Stockholder were a signatory hereto. 
  
 NOW, THEREFORE, based upon the above premises and in consideration of the mutual representations, warranties, covenants and agreements set forth herein,
the parties hereby agree as follows: 
  
 SECTION
1. THE MERGER; EFFECTIVE TIME; CLOSING 
  
 1.1 The
Merger. Upon the terms and subject to the conditions set forth in this Agreement, and in accordance with the DGCL, at the Effective Time (as defined in Section 1.2), MergerSub and the Company shall consummate a merger (the
“Merger”) in which (a) MergerSub shall be merged with and into the Company and the separate corporate existence of the Company shall thereupon cease, and (b) the Company shall continue as the surviving corporation in the Merger (the
“Surviving Corporation”) and shall succeed to and assume all of the rights, properties, liabilities and obligations of MergerSub in accordance with the DGCL. 
  
 1.2 Effective Time. Subject to the provisions of this Agreement, ZOLL and the Company shall cause the Merger to be
consummated by filing on the Closing Date (as defined in Section 1.3) a Certificate of Merger (the “Certificate of Merger”) with the Secretary of State of the State of Delaware, in such form as required by, and executed in
accordance with, the relevant provisions of the DGCL. The Merger shall become effective upon such filing or at such time 

  

 
thereafter as is provided in the Certificate of Merger (the “Effective Time”) which shall have been duly filed with the Secretary of State
of the State of Delaware. 
  
 1.3 Closing. The closing of
the Merger (the “Closing”) shall take place at 11:00 a.m. on October 4, 2004 at the offices of Goodwin Procter LLP, 53 State Street, Boston, Massachusetts, or on the third business day following the day on which all of the
conditions to each party’s obligations hereunder required to be performed prior to Closing have been satisfied or waived (except with respect to those conditions which by their terms are to be satisfied at Closing), or at such other place, day
or time as ZOLL, the Company and the Stockholders’ Representative may agree (the “Closing Date”). 
  
 1.4 Effects of the Merger. The Merger shall have the effects set forth in this Agreement and the applicable provisions of the DGCL. 
  
 1.5 Further Assurances. The Company from time to time after the
Closing Date and at the request of the Parent and without further consideration shall execute and deliver further instruments of transfer and assignment and take such other action as the Parent may reasonably require to fully implement the
provisions of this Agreement. 
  
 SECTION 2.
CERTIFICATE OF INCORPORATION AND BY-LAWS OF THE SURVIVING CORPORATION 
  
 2.1 Certificate of Incorporation and By-laws. The Certificate of Merger shall provide that at the Effective Time, (a) the Surviving Corporation’s Certificate of Incorporation as in effect immediately prior
to the Effective Time shall be amended as of the Effective Time so as to contain the provisions, and only the provisions, contained immediately prior thereto in MergerSub’s Certificate of Incorporation, except for Article I thereof, which shall
continue to read “The name of the corporation is ‘Revivant Corporation’” and (b) MergerSub’s By-laws in effect immediately prior to the Effective Time shall be Surviving Corporation’s By-laws; in each case until amended
in accordance with the DGCL. 
  
 SECTION 3.
DIRECTORS AND OFFICERS OF THE SURVIVING CORPORATION 
  
 3.1 Directors. The Board of Directors of MergerSub immediately prior to the Effective Time shall be the Board of Directors of the Surviving Corporation as of the Effective Time. 
  
 3.2 Officers. The officers of MergerSub immediately prior to the
Effective Time shall be the officers of the Surviving Corporation as of the Effective Time. 
  
 SECTION 4. MERGER CONSIDERATION; CANCELLATION OF SHARES IN THE MERGER. 
  
 4.1 Share and Cash Consideration for the Merger; Conversion or
Cancellation of Shares in the Merger. The manner of receiving cash in the Merger, and the manner of converting or canceling shares of the Company in the Merger, shall be as set forth in this Section 4. By virtue of the Merger, and without any
further action on the part of any party hereto or holder 

  

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thereof, all issued and outstanding shares of the Company’s capital stock (other than (i) any Company Shares (as defined below) to be cancelled pursuant
to Section 4.1(e) (including all shares of Series F Preferred Stock, par value $0.01 per share, of the Company issued and outstanding as of the Effective Time (the “Series F Shares”), all Series E Shares (as defined below) purchased
by the Parent or any direct or indirect wholly-owned subsidiary of the Parent, if any, pursuant to the co-funding provisions of Section 3.6 of that certain Master Agreement by and among the Parent, MergerSub and the Company (the “Master
Agreement”), and Company Common Shares (as defined below) issued upon conversion of such shares (collectively, the “ZOLL Non-Converted Shares”)) and (ii) any Dissenting Shares (as defined below) shall be cancelled and
retired as of the Effective Time and converted solely into the right to receive in the aggregate the Initial Merger Consideration (as defined in Section 4.1(a)), the Contingent Clinical Milestone Consideration (as defined in Section 4.1(b)), and the
Contingent Revenue Milestone Consideration (as defined in Section 4.1(c)). The Initial Merger Consideration, the Contingent Clinical Milestone Consideration and the Contingent Revenue Milestone Consideration, are hereinafter collectively referred to
as the “Merger Consideration.” 
  
 (a) Initial Merger Consideration. The aggregate initial merger consideration shall consist of (x) Seven Million Five Hundred Thousand and 00/100 Dollars ($7,500,000) in cash (the “Initial Cash Consideration”) and (y)
that number of shares of common stock, par value $0.02 per share, of the Parent (the “Parent Common Stock”) equal to Seven Million Five Hundred Thousand and 00/100 Dollars ($7,500,000) divided by the Closing Exchange Price of the
Parent Common Stock (the “Initial Parent Stock Consideration,” and together with the Initial Cash Consideration, the “Initial Merger Consideration”). As used herein, the term “Closing Exchange
Price” shall mean the mean average of the closing prices of a share of Parent Common Stock for the sixty (60) trading days ending on the business day that is three (3) business days immediately prior to the Closing Date, as reported on the
Nasdaq National Market. The Initial Merger Consideration shall be allocated among and payable to the holders of the Preferred Shares (as defined in Section 4.1(e) below) and the holders of the Company Common Shares (as defined in Section 4.1(a)(v)
below) as follows: 
  
 (i) First, that portion of
the Initial Merger Consideration equal to the Stockholders’ Obligations (as defined below) then outstanding shall be paid to, or at the direction of, the Stockholders’ Representative solely to be used to satisfy in full said
Stockholders’ Obligations. As used herein, the term “Stockholders’ Obligations” shall mean the following liabilities, obligations and responsibilities of the Stockholders: 1) all obligations under the Company’s 2003
Executive Retention Program (the “Executive Retention Program”), 2) all obligations under the Company’s 2003 Employee Retention Program (the “Employee Retention Program,” and together with the Executive
Retention Program, the “Retention Programs”), 3) all obligations accruing after the Closing with respect to any severance obligations entered into prior to the Closing; provided, however, that any severance obligation that becomes
payable after the Closing due to actions taken after the Closing by the Surviving Corporation shall not be deemed part of the Stockholders’ Obligations, 4) all fees and expenses whenever accruing, payable to SG Cowen under the engagement
letters between the Company and SG Cowen dated January 23, 2003 and February 25, 2003, as amended from time to time, 5) all payments and expenses, including indemnification payment, related to the bonus agreement between the Company and Kenneth
Ludlum dated July 25, 2003, other than 

  

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the compensation expenses set forth in Section 2 thereof, and 6) all fees and expenses payable by the Stockholders pursuant to this Agreement or the other
agreements entered into in connection herewith, including the expenses of the Stockholders’ Representative. The payment of the amount of said Stockholders’ Obligations then outstanding (the “Initial Stockholders’ Obligations
Amount”) shall be made as follows: (x) a cash payment equal to the lesser of (A) the Initial Stockholders’ Obligations Amount and (B) the total Initial Cash Consideration, and (y) that number of shares of Parent Common Stock equal to
any portion of the Initial Stockholders’ Obligations Amount not paid in cash under Section 4.1(a)(i)(x), divided by the Closing Exchange Price. Notwithstanding the foregoing, at the sole discretion of the Stockholders’ Representative, any
portion of the cash payment provided for in Section 4.1(a)(i)(x) may, in lieu of being paid in cash, be paid in shares of Parent Common Stock as provided in Section 4.1(a)(i)(y). The Stockholders’ Representative shall provide Parent a list
showing each stockholder, their address, their taxpayer identification or social security number, as applicable, and the number of shares of Parent Common Stock to be issued to such person or entity at least 10 days prior to the issuance of any
Parent Common Stock hereunder. 
  
 (ii) Second,
shares of Series G Preferred Stock, par value $0.001 per share, of the Company issued and outstanding at the Effective Time (the “Series G Shares”) (whether held by Parent or another party) shall, by virtue of the Merger, be
entitled to receive in the aggregate (x) that portion of the Initial Cash Consideration equal to the lesser of (A) one-half of the aggregate Series G Liquidation Amount (as defined in the Company’s Amended and Restated Certificate of
Incorporation (the “Company’s Charter”)) attributable to the Series G Shares (the “Series G Liquidation Preference”) or (B) the total Initial Cash Consideration less that amount of the Initial Cash
Consideration payable under Section 4.1(a)(i)(x), plus (y) that number of shares of the Initial Parent Stock Consideration equal to the lesser of (A) the amount by which the Initial Cash Consideration payable under Section 4.1(a)(ii)(x) is less than
the amount which is one-half of the Series G Liquidation Preference, plus one-half of the Series G Liquidation Preference, such sum divided by the Closing Exchange Price or (B) the total number of shares constituting the Initial Parent Stock
Consideration less that number of shares of Initial Parent Stock Consideration payable under Section 4.1(a)(i)(y). Each Series G Share will be entitled to receive that portion of the total Initial Cash Consideration and Initial Parent Stock
Consideration attributable to the Series G Shares in the aggregate, divided by the number of Series G Shares outstanding at the Effective Time. The amount of Initial Merger Consideration to be received by each holder of Series G Shares shall be
rounded up or down to the nearest cent or whole share, as the case may be, after aggregating all of the Initial Cash Consideration and the Initial Stock Consideration, as applicable, to be received by the holder of such Series G Shares pursuant to
this Section 4.1(a)(ii). 
  
 (iii) Third, shares
of Series E Preferred Stock, par value $0.001 per share, of the Company issued and outstanding at the Effective Time (the “Series E Shares”) (other than Series E Shares purchased by the Parent or any direct or indirect wholly-owned
subsidiary of the Parent, if any, whether or not transferred) (the “Non-ZOLL Series E Shares”) shall, by virtue of the Merger, be entitled to receive in the aggregate (x) that portion of the Initial Cash Consideration equal to the
lesser of (A) 

  

 4 

 
one-half of the aggregate Series E Liquidation Amount (as defined in Section 2(a)(iii) of the Company’s Charter) attributable to the Non-ZOLL Series E
Shares (the “Non-ZOLL Series E Section 2(a) Liquidation Preference”) or (B) the total Initial Cash Consideration less that amount of the Initial Cash Consideration payable under Sections 4.1(a)(i)(x) and 4.1(a)(ii)(x), plus (y) that
number of shares of the Initial Parent Stock Consideration equal to the lesser of (A) the amount by which the Initial Cash Consideration payable under Section 4.1(a)(iii)(x) is less than the amount which is one-half of the Non-ZOLL Series E
Liquidation Preference, plus one-half of the Non-ZOLL Series E Section 2(a) Liquidation Preference, such sum divided by the Closing Exchange Price or (B) the total number of shares constituting the Initial Parent Stock Consideration less that number
of shares of Initial Parent Stock Consideration payable under Sections 4.1(a)(i)(y) and 4.1(a)(ii)(y). Each Non-ZOLL Series E Share will be entitled to receive that portion of the total Initial Cash Consideration and Initial Parent Stock
Consideration attributable to the Non-ZOLL Series F Shares in the aggregate, divided by the number of Non-ZOLL Series E Shares outstanding at the Effective Time. The amount of Initial Merger Consideration to be received by each holder of Non-ZOLL
Series E Shares shall be rounded up or down to the nearest cent or whole share, as the case may be, after aggregating all of the Initial Cash Consideration and the Initial Stock Consideration as applicable, to be received by the holder of such
Non-ZOLL Series E Shares pursuant to this Section 4.1(a)(iii). 
  
 (iv) Fourth, shares of the Series A Preferred Stock, par value $0.001 per share, of the Company issued and outstanding at the Effective Time (the “Series A Shares”), the Series B Preferred Stock, par
value $0.001 per share, of the Company issued and outstanding at the Effective Time (the “Series B Shares”), the Series C Preferred Stock, par value $0.001 per share, of the Company issued and outstanding at the Effective Time (the
“Series C Shares”) and the Series D Preferred Stock, par value $0.001 per share, of the Company issued and outstanding at the Effective Time (the “Series D Shares,” and together with the Series A Shares, the Series
B Shares and the Series C Shares, the “Series A-D Shares”) shall, by virtue of the Merger, be entitled to receive in the aggregate (x) that portion of the Initial Cash Consideration equal to the lesser of (A) one-half of the sum of
the aggregate Series A liquidation amount plus the aggregate Series B liquidation amount plus the aggregate Series C liquidation amount plus the aggregate Series D liquidation amount (in each case, as specified in Section 2(a) of the Company’s
Charter) attributable to the Series A-D Shares (the “Series A-D Section 2(a) Liquidation Preference”) or (B) the total Initial Cash Consideration less that amount of the Initial Cash Consideration payable under Sections
4.1(a)(i)(x), 4.1(a)(ii)(x) and 4.1(a)(iii)(x), plus (y) that number of shares of the Initial Parent Stock Consideration equal to the lesser of (A) the amount by which the Initial Cash Consideration payable under Section 4.1(a)(iv)(x) is less than
the amount which is one-half of the Series A-D Section 2(a) Liquidation Preference, plus one-half of the Series A-D Section 2(a) Liquidation Preference, such sum divided by the Closing Exchange Price or (B) the total number of shares constituting
the Initial Parent Stock Consideration less that number of shares of Initial Parent Stock Consideration payable under Sections 4.1(a)(i)(y), 4.1(a)(ii)(y) and 4.1(a)(iii)(y). The aggregate amount of the Initial Cash Consideration and Initial Parent
Stock Consideration payable pursuant to this Section 4.1(a)(iv) shall be distributed ratably among the holders of the Series A Shares, the Series 

  

 5 

 
B Shares, the Series C Shares and the Series D Shares in proportion to the aggregate preferential amounts owed such holders in accordance with Section 2(a)
of the Company’s Charter. Each Series A-D Share will be entitled to receive that portion of the total Initial Cash Consideration and Initial Parent Stock Consideration attributable to its respective series of Preferred Shares in the aggregate,
divided by the number of shares of its respective series of Preferred Shares outstanding at the Effective Time. The amount of Initial Merger Consideration to be received by each holder of Series A-D Shares shall be rounded up or down to the nearest
cent or whole share, as the case may be, after aggregating all of the Initial Cash Consideration and the Initial Stock Consideration as applicable, to be received by the holder of such Series A-D Shares pursuant to this Section 4.1(a)(iv).

  
 (v) Fifth, the Series D Shares, the Non-ZOLL
Series E Shares and the shares of Common Stock, par value $0.001 per share, of the Company issued and outstanding at the Effective Time (the “Company Common Shares”) other than Company Common Shares purchased by the Parent or any
direct or indirect wholly-owned subsidiary of the Parent, if any, whether or not transferred, as a result of conversion of Series E Shares or Series F Shares (the “Non-ZOLL Common Shares”) shall, by virtue of the Merger, be entitled
to receive in the aggregate all remaining portions of the Initial Merger Consideration; provided, however, that the amount of the Initial Cash Consideration and the Initial Parent Stock Consideration payable pursuant to this Section
4.1(a)(v) shall be distributed among the holders of Series D Shares, Non-ZOLL Series E Shares and Non-ZOLL Common Shares pro rata based on the number of Non-ZOLL Common Shares held by each (assuming conversion of all such Series D Shares and
Non-ZOLL Series E Shares into Non-ZOLL Common Shares in accordance with the Company’s Charter); provided, further, however, that the holders of Series D Shares or Non-ZOLL Series E Shares shall cease receiving any payments
pursuant to this Section 4.1(a)(v) once each Series D Share and Non-ZOLL Series E Share has received aggregate Merger Consideration (whether pursuant to Sections 4.1(a)(iii), 4.1(a)(iv), 4.1(a)(v), 4.1(b), 4.1(c) or 4.1(d)) equal to Two Dollars and
70/100 ($2.70) (which shall be determined by valuing any Parent Common Stock received as Merger Consideration at the Closing Exchange Price, regardless of its market value when actually issued or delivered) (the “Series D-E Additional
Preference”), and thereafter, the holders of the Non-ZOLL Common Shares shall receive all remaining portions of the Initial Merger Consideration (which shall be distributed among the holders of Non-ZOLL Common Shares pro rata based on the
number of Non-ZOLL Common Shares held by each). Each Series D Share, Non-ZOLL Series E Share and Non-ZOLL Common Share will be entitled to receive that portion of the Initial Cash Consideration and Initial Parent Stock Consideration attributable to
its respective series of Preferred Shares or Non-ZOLL Common Shares, as applicable, in the aggregate, divided by the number of shares of its respective series of Preferred Shares or Non-ZOLL Common Shares outstanding at the Effective Time. The
amount of Initial Merger Consideration to be received by each holder of Preferred Shares or Non-ZOLL Common Shares shall be rounded up or down to the nearest cent or whole share, as the case may be, after aggregating all of the Initial Cash
Consideration and the Initial Stock Consideration as applicable, to be received by the holder of such Preferred Shares or Non-ZOLL Common Shares pursuant to this Section 4.1(a)(v). Notwithstanding the foregoing, any holder of Non-ZOLL Common 

  

 6 

 
Shares who received under Section 4.1(a)(i) any amount of the Initial Merger Consideration pursuant to either of the Retention Programs (the amount so
received by any such holder being hereinafter referred to as the “Retention Program Amount”) shall not be entitled to receive any portion of the Initial Merger Consideration pursuant to this Section 4.1(a)(v) unless and to the
extent set forth in the respective Award Agreement issued pursuant to the Retention Programs. 
  
 (b) Contingent Clinical Milestone Consideration. 
  
 (i) If and to the extent the AHA Abstract Milestone, the Major Medical Journal Milestone, Additional Major
Medical Journal Milestone, or the 2004 Abstracts Milestone (each as defined below) is achieved, then the Parent will pay in the aggregate to the holders of the Company’s capital stock outstanding as of the Effective Time (other than (i) Company
Shares to be cancelled pursuant to Section 4.1(e) (including, without limitation, all ZOLL Non-Converted Shares)) additional Merger Consideration as described in Section 4.1(b)(ii) (the “AHA Abstract Consideration”), Section
4.1(b)(iii) (the “Major Medical Journal Consideration”), Section 4.1(b)(iv) (the “Additional Major Medical Journal Consideration”), or Section 4.1(b)(v) (the “2004 Abstracts Consideration,” and
together with the AHA Abstract Consideration, the Major Medical Journal Consideration and the Additional Major Medical Journal Consideration, the “Contingent Clinical Milestone Consideration”), as the case may be. If any such
Contingent Clinical Milestone Consideration is payable by the Parent, it will be paid in accordance with Section 4.2 within fifteen (15) days following the achievement of the respective Milestones. The AHA Abstract Milestone, the Major Medical
Journal Milestone, the Additional Major Medical Journal Milestone, and the 2004 Abstracts Milestone shall collectively be referred to as the “Milestones.” 
  
 (ii) In the event the AHA Abstract Milestone is achieved on or before the 2005 Annual Meeting of the
American Heart Association, then the Parent will pay in the aggregate as additional Merger Consideration (x) One Million and 00/100 Dollars ($1,000,000) in cash (the “AHA Abstract Cash Consideration”) plus (y) that number of shares
of Parent Common Stock equal to One Million and 00/100 Dollars ($1,000,000) divided by the Closing Exchange Price of Parent Common Stock (the “AHA Abstract Stock Consideration,” and together with the AHA Abstract Cash Consideration,
the “AHA Abstract Consideration”). As used herein, the term “AHA Abstract Milestone” shall have the meaning set forth on Schedule B attached hereto. 
  
 (iii) In the event that the Major Medical Journal Milestone
is achieved on or before February 28, 2007, then the Parent will pay in the aggregate as additional Merger Consideration (x) the Adjusted Major Medical Journal Amount (as defined below) in cash (the “Major Medical Journal Cash
Consideration”) plus (y) that number of shares of Parent Common Stock equal to the Adjusted Major Medical Journal Amount divided by the Closing Exchange Price of Parent Common Stock (the “Major Medical Journal Stock
Consideration,” and together with the Major Medical Journal Cash Consideration, the “Major Medical Journal Consideration”). As used herein, the term “Adjusted Major Medical Journal Amount” means (A) Four
Million Five Hundred Thousand and 00/100 Dollars ($4,500,000) if the Major Medical Journal 

  

 7 

 
Milestone is achieved at any time during June 2006, (B) the sum of Four Million Five Hundred Thousand and 00/100 Dollars ($4,500,000) plus the product of
Five Hundred Thousand Dollars ($500,000) multiplied by the number of months prior to June 2006 that the Major Medical Journal Milestone is achieved or (C) the difference between Four Million Five Hundred Thousand and 00/100 Dollars ($4,500,000) less
the product of Five Hundred Thousand and 00/100 Dollars ($500,000) multiplied by the number of months after June 2006 that the Major Medical Journal Milestone is achieved. As used herein, the term “Major Medical Journal Milestone”
shall have the meaning set forth on Schedule B attached hereto. 
  
 (iv) In the event that the Additional Major Medical Journal Milestone is achieved, then the Parent will pay in the aggregate as additional Merger Consideration (x) One Million Five Hundred Thousand and 00/100 Dollars
($1,500,000) in cash (the “Additional Major Medical Journal Cash Consideration”) plus (y) that number of shares of Parent Common Stock equal to One Million Five Hundred Thousand and 00/100 Dollars ($1,500,000) divided by the Closing
Exchange Price of Parent Common Stock (the “Additional Major Medical Journal Stock Consideration,” and together with the Additional Major Medical Journal Cash Consideration, the “Additional Major Medical Journal
Consideration”). As used herein, the term “Additional Major Medical Journal Milestone” shall have the meaning set forth on Schedule B attached hereto. 
  
 (v) In the event that the 2004 Abstracts Milestone is achieved on or before November 30, 2004, then the
Parent will pay in the aggregate as additional Merger Consideration (x) Five Hundred Thousand and 00/100 Dollars ($500,000) in cash (the “2004 Abstracts Cash Consideration”) plus (y) that number of shares of Parent Common Stock
equal to Five Hundred Thousand and 00/100 Dollars ($500,000) divided by the Closing Exchange Price of Parent Common Stock (the “2004 Abstracts Stock Consideration,” and together with the 2004 Abstracts Cash Consideration, the
“2004 Abstracts Consideration”). As used herein, the term “2004 Abstracts Milestone” shall have the meaning set forth on Schedule B attached hereto. 
  
 (c) Contingent Revenue Milestone Consideration.

  
 (i) If and to the extent the FY 2005 Revenue
Milestone, the FY 2006 Revenue Milestone and the FY 2007 Revenue Milestone, as applicable (each as defined below and together the “FY Revenue Milestones”)) are achieved, then the Parent will pay (in accordance with Sections
4.1(c)(v) and 4.2 hereof) to the holders of the Company’s capital stock outstanding as of the Effective Time (other than Company Shares to be cancelled pursuant to Section 4.1(e)) (including, without limitation, all ZOLL Non-Converted Shares)
the additional Merger Consideration as described in Section 4.1(c)(ii) (the “Contingent FY 2005 Revenue Consideration”), Section 4.1(c)(iii) (the “Contingent FY 2006 Revenue Consideration”) or Section 4.1(c)(iv)
(the “Contingent FY 2007 Revenue Consideration,” and together with the Contingent FY 2005 Revenue Consideration and the Contingent FY 2006 Revenue Consideration, the “Contingent Revenue Milestone Consideration”), as
the case may be. 
  

 8 

 (ii) In the event the Parent achieves Consolidated Qualifying Revenues (as defined below)
of over Six Million and 00/100 Dollars ($6,000,000) from the sale of Company Products (as defined below) during the Parent’s fiscal year ending October 2, 2005 (the “FY 2005 Revenue Milestone”), then the Parent will pay in the
aggregate as additional Merger Consideration (x) one-half of the Excess FY 2005 Revenues (as defined below) in cash (the “FY 2005 Revenue Milestone Cash Consideration”) plus (y) that number of shares of Parent Common Stock equal to
one-half of the Excess FY 2005 Revenues divided by the Closing Exchange Price of Parent Common Stock (the “FY 2005 Revenue Milestone Stock Consideration,” and together with the FY 2005 Revenue Milestone Cash Consideration, the
“Contingent FY 2005 Revenue Consideration”). As used herein, the term “Consolidated Qualifying Revenues” shall mean consolidated revenue (as determined on the same basis as revenue is otherwise recognized by the
Parent) from the sale of Company Products, exclusive of all bad debt, returns and allowances, sales tax, freight and shipping costs, distributor commissions, or other customary and ordinary direct sales costs (but not employee sales commissions). As
used herein, the term “Company Products” shall mean (A) those products listed on Schedule 4.1(c) hereto and (B) any products that are substantially similar to and incorporate substantially the same technology as those
products that are listed on Schedule 4.1(c); provided, however, that Company Products shall not include any other resuscitation products sold by the Parent (including without limitation defibrillators and ResQPOD products;
provided, further, however, that in the event the Parent incorporates an external defibrillator into one or more Company Products (a “Combined Product”), then such Combined Product shall constitute a Company
Product, but Consolidated Qualifying Revenues from any sale of a Combined Product shall be reduced by an amount equal to the average sales price (calculated on the same basis as used in determining Consolidated Qualifying Revenues) over the previous
one year period of the Parent’s AED Plus defibrillator (or a successor product, if applicable) so incorporated into the Combined Product. As used herein, the term “Excess FY 2005 Revenues” shall mean the amount by which the
Parent’s Consolidated Qualifying Revenues from the sale of Company Products during the Parent’s fiscal year ending October 2, 2005 (such amount being referred to as the “FY 2005 Revenues”) exceeds Six Million and 00/100
Dollars ($6,000,000). 
  
 (iii) In the event the
amount of the Parent’s Consolidated Qualifying Revenues from the sale of Company Products during the fiscal year ending October 1, 2006 are greater then the FY 2005 Revenues (the “FY 2006 Revenue Milestone”), then the Parent
will pay in the aggregate as additional Merger Consideration (x) one-half of the Excess FY 2006 Revenues (as defined below) in cash (the “FY 2006 Revenue Milestone Cash Consideration”) plus (y) that number of shares of Parent Common
Stock equal to one-half of the Excess FY 2006 Revenues divided by the Closing Exchange Price of Parent Common Stock (the “FY 2006 Revenue Milestone Stock Consideration,” and together with the FY 2006 Revenue Milestone Cash
Consideration, the “Contingent FY 2006 Revenue Consideration”). As used herein, the term “Excess FY 2006 Revenues” shall mean the amount by which the Parent’s Consolidated Qualifying Revenues from the sale of
Company Products during the Parent’s fiscal year ending October 1, 2006 (such amount being referred to as the “FY 2006 Revenues”) exceeds the FY 2005 Revenues. 
  

 9 

 (iv) In the event the amount of the Parent’s Consolidated Qualifying Revenues from
the sale of Company Products during the fiscal year ending September 30, 2007 are greater than the FY 2006 Revenues (the “FY 2007 Revenue Milestone”), then the Parent will pay in the aggregate as additional Merger Consideration (x)
one-half of the Excess FY 2007 Revenues (as defined below) in cash (the “FY 2007 Revenue Milestone Cash Consideration”) plus (y) that number of shares of Parent Common Stock equal to one-half of the Excess FY 2007 Revenues divided
by the Closing Exchange Price of Parent Common Stock (the “FY 2007 Revenue Milestone Stock Consideration,” and together with the FY 2007 Revenue Milestone Cash Consideration, the “Contingent FY 2007 Revenue
Consideration”). As used herein, the term “Excess FY 2007 Revenues” shall mean the product of one and one-half (1.5) multiplied by the amount by which the Parent’s Consolidated Qualifying Revenues from the sale of
Company Products during the Parent’s fiscal year ending September 30, 2007 exceeds the FY 2006 Revenues. 
  
 (v) As promptly as practicable following the applicable fiscal year end, and in any event within sixty (60) days thereafter, the Parent
shall prepare and deliver to the Stockholders’ Representative a schedule of the Consolidated Qualifying Revenues for such fiscal year, based on the Parent’s audited financial statements, and setting forth, as of the applicable fiscal year
end, the number and type of Company Products sold during such year, the average selling price for such Company Products so sold, the total Consolidated Qualifying Revenues from such sales and the aggregate amount of such applicable Contingent
Revenue Milestone Consideration (each a “Contingent Revenue Milestone Consideration Schedule”). The Stockholders’ Representative shall have thirty (30) days from receipt thereof to review and dispute such Contingent Revenue
Milestone Consideration Schedule. The Stockholders’ Representative and its accounting and/or financial advisors shall have the right to review the Parent’s books and records with respect to sales of the Company’s Products. The failure
by the Stockholders’ Representative to express its disagreement within such thirty (30) day period will constitute acceptance of such Contingent Revenue Milestone Consideration Schedule, such Contingent Revenue Milestone Consideration Schedule
shall become final and binding on all parties and the Parent shall pay the applicable Contingent Revenue Milestone Consideration as set forth above within fifteen (15) days following acceptance (or deemed acceptance) of such Contingent Revenue
Milestone Consideration Schedule. If the Stockholders’ Representative has any objection to such Contingent Revenue Milestone Consideration Schedule, the Stockholders’ Representative shall give written notice to the Parent within such
thirty (30) day period, (A) setting forth the Stockholders’ Representative objection to such Contingent Revenue Milestone Consideration Schedule and (B) specifying in reasonable detail its basis for its disagreement with the Parent’s
computation. The Parent and the Stockholders’ Representative shall each submit any disputes regarding the Contingent Revenue Milestone Consideration Schedule to (x) the Parent’s current independent accountants, (y) a nationally recognized
accounting firm chosen by the Stockholders’ Representative and (z) a third independent accountant selected by the accountants appointed pursuant to clauses (x) and (y) above (together, the “Resolution Accountants”) for
resolution. The determination of the Resolution Accountants with respect to each of the items in dispute shall be final and binding upon both parties. Within fifteen (15) days following the 

  

 10 

 
Resolution Accountants’ determination of the applicable Contingent Revenue Milestone Consideration, the Parent shall pay the applicable Contingent
Revenue Milestone Consideration as set forth above. The fees and expenses of the Resolution Accountants shall be shared equally by the Parent, on the one hand, and the Stockholders, on the other hand. 
  
 (d) Allocation of Contingent Merger Consideration.
Each payment of Contingent Clinical Milestone Consideration and Contingent Revenue Milestone Consideration (the cash payment of which is refereed to as the “Cash Contingent Consideration Payment” and the Parent Common Stock payment
of which is referred to as the “Stock Contingent Consideration Payment” and each together a “Contingent Consideration Payment”) shall be allocated among and payable to the Preferred Shares and Company Common Shares
as follows: 
  
 (i) First, that portion of the
Contingent Consideration Payment equal to the Stockholders’ Obligations then outstanding shall be paid to, or at the direction of, the Stockholders’ Representative solely to be used to satisfy in full said Stockholders’ Obligations.
The payment of the amount of said Stockholders’ Obligations then outstanding (in the case of each Contingent Consideration Payment, a “Subsequent Stockholders’ Obligations Amount”) shall be made as follows: (x) a payment
equal to the lesser of (A) the Subsequent Stockholders’ Obligations Amount and (B) the total Cash Contingent Consideration Payment, and (y) that number of shares of Parent Common Stock equal to the Subsequent Stockholders’ Obligations
Amount not paid in cash under Section 4.1(d)(i)(x), divided by the Closing Exchange Price. 
  
 (ii) Second, until each of the Series G Shares (whether held by Parent or another party) has received total Merger Consideration (which
shall be determined by valuing any Parent Common Stock received as Merger Consideration at the Closing Exchange Price, regardless of its market value when actually issued or delivered) equal to the Series G Liquidation Preference, then the Series G
Shares will, by virtue of the Merger, be entitled to receive in the aggregate (x) that portion of each Cash Contingent Consideration Payment equal to the lesser of (A) the difference between one-half of the aggregate Series G Liquidation Preference
less the total amount of Initial Cash Consideration and Cash Contingent Consideration Payments theretofore received by the holders of Series G Shares or (B) the total Cash Contingent Consideration Payment in question less the portion thereof payable
pursuant to Section 4.1(d)(i)(x), plus (y) that number of shares of the Stock Contingent Consideration Payment equal to the lesser of (A) the amount by which the Cash Contingent Consideration Payment payable under Section 4.1(d)(ii)(x) is less than
the amount which is one-half of the Series G Liquidation Preference, plus the difference determined pursuant to Section 4.1(d)(ii)(x)(A), such sum divided by the Closing Exchange Price or (B) the total Stock Contingent Consideration Payment in
question less that number of such shares payable pursuant to Section 4.1(d)(i)(y). Each Series G Share will be entitled to receive that portion of the Cash Contingent Consideration Payment and Stock Contingent Consideration Payment in question
attributable to the Series G Shares in the aggregate, divided by the number of Series G Shares outstanding at the Effective Time. The amount of each Contingent Consideration Payment to be received by each holder of Series G Shares shall be rounded
up or down to the nearest cent or whole share, as the case may be, after aggregating the 

  

 11 

 
portions of the Cash Consideration Payment and Stock Consideration Payment, as applicable, to be received by the holder of such Series G Shares pursuant to
this Section 4.1(d)(ii). 
  
 (iii) Third, until
each of the Non-ZOLL Series E Shares has received total Merger Consideration (which shall be determined by valuing any Parent Common Stock received as Merger Consideration at the Closing Exchange Price, regardless of its market value when actually
issued or delivered) equal to the Non-ZOLL Series E Liquidation Preference, then the Non-ZOLL Series E Shares will, by virtue of the Merger, be entitled to receive in the aggregate (x) that portion of each Cash Contingent Consideration Payment equal
to the lesser of (A) the difference between one-half of the aggregate Non-ZOLL Series E Section 2(a) Liquidation Preference less the total amount of Initial Cash Consideration and Cash Contingent Consideration Payments theretofore received by the
holders of Non-ZOLL Series E Shares or (B) the total Cash Contingent Consideration Payment in question less the portion thereof payable pursuant to Sections 4.1(d)(i)(x) and 4.1(d)(ii)(x), plus (y) that number of shares of the Stock Contingent
Consideration Payment equal to the lesser of (A) the amount by which the Cash Contingent Consideration Payment payable under Section 4.1(d)(iii)(x) is less than the amount which is one-half the Non-ZOLL Series E Section 2(a) Liquidation Preference,
plus the difference determined pursuant to Section 4.1(d)(iii)(x)(A), such sum divided by the Closing Exchange Price or (B) the total Stock Contingent Consideration Payment in question less that number of such shares payable pursuant to Sections
4.1(d)(i)(y) and 4.1(d)(ii)(y). Each Non-ZOLL Series E Share will be entitled to receive that portion of the Cash Contingent Consideration Payment and Stock Contingent Consideration Payment in question attributable to the Non-ZOLL Series E Shares in
the aggregate, divided by the number of Non-ZOLL Series E Shares outstanding at the Effective Time. The amount of each Contingent Consideration Payment to be received by each holder of Non-ZOLL Series E Shares shall be rounded up or down to the
nearest cent or whole share, as the case may be, after aggregating the portions of the Cash Consideration Payment and Stock Consideration Payment, as applicable, to be received by the holder of such Non-ZOLL Series E Shares pursuant to this Section
4.1(d)(iii). 
  
 (iv) Fourth, until each of the
Series A-D Shares has received total Merger Consideration (which shall be determined by valuing any Parent Common Stock received as Merger Consideration at the Closing Exchange Price, regardless of its market value when actually issued or delivered)
equal to the applicable Series A-D Section 2(a) Liquidation Preference, then the Series A-D Shares will, by virtue of the Merger, be entitled to receive in the aggregate (x) that portion of each Cash Contingent Consideration Payment equal to the
lesser of (A) the difference between one-half of the aggregate Series A-D Section 2(a) Liquidation Preference less the total amount of Initial Cash Consideration and Cash Contingent Consideration Payments theretofore received by the holders of the
Series A-D Shares or (B) the total Cash Contingent Consideration Payment in question less the portion thereof payable pursuant to Sections 4.1(d)(i)(x), 4.1(d)(ii)(x) and 4.1(d)(iii)(x), plus (y) that number of shares of the Stock Contingent
Consideration Payment equal to the lesser of (A) the amount by which the Cash Contingent Consideration Payment payable under Section 4.1(d)(iv)(x) is less than the amount which is one-half the Series A-D Section 2(a) Liquidation Preference, plus the

  

 12 

 
difference determined pursuant to Section 4.1(d)(iv)(x)(A), such sum divided by the Closing Exchange Price or (B) the total Stock Contingent Consideration
Payment in question less that number of such shares payable pursuant to Sections 4.1(d)(i)(y), 4.1(d)(ii)(y) and 4.1(d)(iii)(y). The aggregate amount of the Cash Contingent Consideration Payment and the Stock Contingent Consideration Payment payable
pursuant to this Section 4.1(d)(iv) shall be distributed ratably among the holders of the Series A Shares, the Series B Shares, the Series C Shares and the Series D Shares in proportion to the aggregate preferential amounts owed such holders in
accordance with Section 2(a) of the Company’s Charter. Each Series A-D Share will be entitled to receive that portion of the Cash Contingent Consideration Payment and Stock Contingent Consideration Payment in question attributable to its
respective series of Preferred Shares in the aggregate, divided by the number of shares of its respective series of Preferred Shares outstanding at the Effective Time. The amount of each Contingent Consideration Payment to be received by each holder
of Series A-D Shares shall be rounded up or down to the nearest cent or whole share, as the case may be, after aggregating the portions of the Cash Consideration Payment and Stock Consideration Payment, as applicable, to be received by the holder of
such Series A-D Shares pursuant to this Section 4.1(d)(iv). 
  
 (v) Fifth, the Series D Shares, the Non-ZOLL Series E Shares and the Non-ZOLL Common Shares issued and outstanding at the Effective Time shall, by virtue of the Merger, be entitled to receive in the aggregate all
remaining portions of the Contingent Consideration Payment; provided, however, that the aggregate amount of the Cash Contingent Consideration Payment and the Stock Contingent Consideration Payment payable pursuant to this Section
4.1(d)(v) shall be distributed among the holders of the Series D Shares, the Non-ZOLL Series E Shares and the Non-ZOLL Common Shares pro rata based on the number of Non-ZOLL Common Shares held by each (assuming conversion of all such Series D Shares
and Non-ZOLL Series E Shares into Non-ZOLL Common Shares in accordance with the Company’s Charter); provided, further, however, that the holders of the Series D Shares or Non-ZOLL Series E Shares shall cease receiving any
payments pursuant to this Section 4.1(d)(v) once each Series D Share and Non-ZOLL Series E Share has received total Merger Consideration (which shall be determined by valuing any Parent Common Stock received as Merger Consideration at the Closing
Exchange Price, regardless of its market value when actually issued or delivered) equal to the Series D-E Additional Preference, and thereafter, the holders of the Non-ZOLL Common Shares shall receive all remaining portions of the Contingent
Consideration Payment (which shall be distributed among the holders of the Non-ZOLL Common Shares pro rata based on the number of Non-ZOLL Common Shares held by each). Each Series D Share, Non-ZOLL Series E Share and Non-ZOLL Common Share will be
entitled to receive that portion of the Cash Contingent Consideration Payment and Stock Contingent Consideration Payment in question attributable to its respective series of Preferred Shares and Non-ZOLL Common Shares, as applicable, in the
aggregate, divided by the number of shares of its respective series of Preferred Shares and Non-ZOLL Common Shares, as applicable, outstanding at the Effective Time. The amount of each Contingent Consideration Payment to be received by each holder
of Preferred Shares or Non-ZOLL Common Shares shall be rounded up or down to the nearest cent or whole share, as the case may be, after aggregating the portions of the Cash Consideration Payment and Stock Consideration Payment, as 

  

 13 

 
applicable, to be received by the holder of such Preferred Shares or Non-ZOLL Common Shares pursuant to this Section 4.1(d)(v). Notwithstanding the
foregoing, any holder of Non-ZOLL Common Shares who received under Section 4.1(a)(i) or 4.1(d)(i) any Retention Program Amount shall not be entitled to receive any portion of the applicable Contingent Merger Consideration pursuant to this Section
4.1(d)(v) unless and to the extent set forth in the respective Award Agreement issued pursuant to the Retention Programs. 
  
 (e) Company Share Cancellation and Conversion. The Series G Shares, Series F Shares, Series E Shares, Series D Shares, Series C
Shares, Series B Shares and Series A Shares, are hereinafter collectively referred to as the “Preferred Shares,” and together with the Company Common Shares are hereinafter collectively referred to as the “Company
Shares.” Each Company Share that is directly owned by the Parent or the Company or any direct or indirect wholly-owned subsidiary of the Parent or the Company, if any, or held in the treasury of the Company shall by virtue of the Merger be
automatically canceled and retired and shall cease to exist and no consideration shall be delivered or deliverable in exchange therefore; provided, however, that any Series G Share that is owned by the Parent or any direct or indirect
wholly-owned subsidiary of the Parent will be converted into the right to receive a portion of the Merger Consideration pursuant to this Section 4.1. Neither the Parent nor any direct or indirect wholly-owned subsidiary of the Parent owns any
Company Shares other than (i) the Series F Shares and (ii) the Series E Shares and Series G Shares which may be purchased after the date of this Agreement pursuant to the co-funding provisions of the Master Agreement. 
  
 (f) Conversion of Company Shares. Each issued and
outstanding Company Share (other than (i) any Company Shares to be canceled in accordance with Section 4.1(e), and (ii) any Company Shares that are held by stockholders exercising dissenters’ rights pursuant to Section 262 of the DGCL or
Section 1300 of the California General Corporation Law (“Dissenting Stockholders,” and such Company Shares, the “Dissenting Shares”)) will be converted into the right to receive a portion of the Merger Consideration
pursuant to this Section 4.1. All Company Shares to be converted pursuant to this Section 4.1 shall, by virtue of the Merger and without any action on the part of the holders thereof, except as otherwise set forth herein, cease to be outstanding, be
canceled and retired and cease to exist, and each holder of a certificate representing any such Company Shares (a “Company Certificate”) shall thereafter cease to have any rights with respect to such Company Shares, except its right
to receive the respective portion of the Merger Consideration for such Company Shares upon the surrender of such certificate in accordance with Section 4.2. 
  
 (g) Solely for purposes of illustration, and without any expectation or intention that the assumed facts are or will bear any relation to
the actual facts, included on Schedule 4.1(g) are example determinations of the payments of Merger Consideration under certain assumed fact patterns set forth therein. 
  
 4.2 Exchange and Payment Procedures. 
  
 (a) Share Exchange. As soon as practicable after the Closing, each holder of Company Shares shall
surrender all Company Certificates held by such party. At or as soon as practicable after the Effective Time, the Parent shall make available, and each holder of 

  

 14 

 
Company Shares (other than the ZOLL Non-Converted Shares (each, a “Company Stockholder”) will be entitled to receive, upon surrender to the
Parent of one or more certificates representing Company Shares for cancellation, the Initial Merger Consideration that such Company Stockholder is entitled to receive pursuant to Section 4.1 hereof. The certificates representing the Parent Common
Stock (the “Parent Certificates”) that each Company Stockholder may be entitled to receive pursuant to the Merger as Initial Parent Stock Consideration shall be deemed to have been issued at the Effective Time. The Parent shall make
available, and each Company Stockholder will be entitled to receive, payments of Contingent Merger Consideration in accordance with Section 4.1 hereof. If payment of the Merger Consideration is to be made to a person or entity other than the person
or entity in whose name the certificate so surrendered is registered (the “Payment Representative”), it shall be a condition of payment that (i) either the certificate so surrendered be properly endorsed or otherwise in proper form
for transfer, or (ii) the Payment Representative shall deliver to the Parent such other documentation of such transfer in form satisfactory to the Parent, and (iii) that the Payment Representative requesting such payment shall have paid any transfer
or other taxes required by reason of the payment of the Merger Consideration to a person or entity other than the registered holder of such certificate surrendered or shall have established to the satisfaction of the Parent that such Taxes have been
paid or are not applicable. 
  
 (b)
Interest. No interest shall accrue on the Merger Consideration. Neither ZOLL nor any other party hereto shall be liable to any Company Stockholder for any amount delivered to a public official pursuant to applicable abandoned property,
escheat or similar law. 
  
 (c) Payment.
After the Effective Time, any Company Stockholder who has not theretofore complied with this Section 4 shall thereafter look only to the Surviving Corporation for payment to which it is otherwise entitled. 
  
 (d) Stock Transfer Books. After the Effective Time,
there shall be no transfers of any Company Shares on the stock transfer books of the Company. If, after the Effective Time, Company Certificates are presented to the Surviving Corporation, they shall be canceled in accordance with this Section 4.

  
 (e) Lost Certificates. If any
certificate representing Company Shares is lost, stolen or destroyed, upon the making of an affidavit of that fact by the Company Stockholder or the Payment Representative claiming such certificate to be lost, stolen or destroyed, upon the execution
of an indemnity agreement reasonably satisfactory to the Parent as indemnity against any claim made against the Parent, the Parent shall issue in exchange for such lost, stolen or destroyed certificate, the Merger Consideration pursuant to this
Agreement. 
  
 4.3 Dissenting Stock. Notwithstanding
anything in this Agreement to the contrary, any Company Stockholder that is entitled to demand, and properly demands appraisal of its Company Shares pursuant to, and complies in all respects with Section 262 of the DGCL or Section 1300 of the
California General Corporation Law shall not be converted into the right to receive the Merger Consideration, but instead shall be entitled to such rights (but only such rights) as are granted by the applicable Section. If any Dissenting Stockholder
shall fail to perfect or shall have effectively waived, withdrawn or lost the right to dissent, the Company 

  

 15 

 
Shares held by such Dissenting Stockholder shall thereupon be treated as though such Company Shares had been converted into the Merger Consideration pursuant
to Section 4.1. 
  
 4.4 Treatment of Restricted Stock. As
of the Effective Time, all outstanding Preferred Shares or Company Common Shares subject to restricted stock awards granted by the Company pursuant to its stock option plans or otherwise (the “Restricted Stock”), which are unvested
or not exercisable, shall, prior to the Effective Time, immediately vest and the restrictions associated therewith shall automatically be waived by virtue of the Merger. The Board of Directors of the Company (or, if appropriate, a committee thereof)
shall adopt such resolutions and take such actions as may be required to cause each share of Restricted Stock outstanding prior to the Effective Time to immediately vest and the restrictions associated therewith to automatically be waived by virtue
of the Merger in accordance with this Section 4.4. 
  
 4.5
Treatment of Stock Options. As of the Effective Time, all outstanding options to purchase Company Common Shares granted by the Company pursuant to its stock option plans or otherwise (the “Options”), whether vested or
unvested, whether or not exercisable, shall by virtue of the Merger be automatically canceled and retired and shall cease to exist and no consideration shall be delivered or deliverable in exchange therefore, as provided by the terms of such
Options. The Board of Directors of the Company (or, if appropriate, a committee thereof) shall adopt such resolutions and take such actions as may be required to cause each Option outstanding at the Effective Time to be terminated in accordance with
this Section 4.5. 
  
 4.6 Treatment of Warrants. As
of the Effective Time, all outstanding warrants to purchase Preferred Shares or Company Common Shares (the “Warrants”), whether vested or unvested, whether or not exercisable, shall by virtue of the Merger be automatically canceled
and retired and shall cease to exist and no consideration shall be delivered or deliverable in exchange therefore. The Board of Directors of the Company (or, if appropriate, a committee thereof) shall adopt such resolutions and take such actions as
may be required to cause each Warrant outstanding at the Effective Time to be terminated in accordance with this Section 4.6. 
  
 4.7 Limitation on Parent Common Stock. Notwithstanding anything to the contrary in this Section 4, in no event shall the Parent deliver Merger
Consideration to the Stockholders in the form of Parent Common Stock if the number of shares of Parent Common Stock to be issued to the Stockholders is or will be equal to or in excess of 20% of the total number of shares of Parent Common Stock
outstanding before such issuance. In such event, the Parent shall deliver, in lieu of such excess shares of Parent Common Stock, cash in an amount equal to the cash payment obligation that otherwise would have been satisfied through the payment of
such excess shares. The parties acknowledge that at the time of the execution of this Agreement and Plan of Merger, there are fewer than 35 non-accredited (as such term is understood under Regulation D promulgated under the Securities Act of 1933,
as amended) shareholders of the Company. In the period between the execution of this Agreement and Plan of Merger and the Effective Time, holders of Company Options may exercise such Options and become stockholders of the Company. In the event that
at the Effective Time there are more than 35 non-accredited stockholders of the Company, any non-accredited stockholder in excess of 35 will not be entitled to receive any Merger Consideration in the form of Parent Common Stock unless such shares
are registered under the Securities Act of 1933, as amended or issuance is otherwise permitted under 

  

 16 

 
Regulation D. The non-accredited stockholders who will not be entitled to receive the Parent Common Stock will be those parties selected by the
Stockholders’ Representative, or if the Stockholders’ Representative has not identified a sufficient number of non-accredited stockholders, those who have become stockholders after there are existing 35 non-accredited stockholders. In lieu
of the Parent Common Stock that would otherwise have been issued to such non-accredited stockholders except for the prohibition in the preceding two sentences, such stockholders will be given an amount of cash equal to the fair market value of the
shares of Parent Common Stock that would otherwise have been issued, with such value measured as of the date which is three days prior to the date on which the shares of Parent Common Stock issuable under the provisions of Section 4.1 are mailed to
the other stockholders of the Company. 
  
 4.8 Tax Treatment of
Deferred Payments. Notwithstanding Section 4.2(b), any payment of Contingent Clinical Milestone Consideration under Section 4.1(b) or Contingent Revenue Milestone Consideration under Section 4.1(c) shall be subject to the provisions of Section
483 and/or Section 1271 et. seq. of the Internal Revenue Code of 1986, as amended (the “Code”), including but not limited to Code Section 1274, as appropriate. The parties will cooperate with each other and make whatever elections
are permitted under applicable income tax law so that any imputed interest is the smallest amount permitted under the Code. For these purposes, and in accordance with Treasury Regulations Section 1.1274-4(a)(1), if Section 1274 applies, the parties
will determine the amount of such imputed interest by selecting the lowest applicable federal rate in effect during (i) the three-month period ending with the month in which this Agreement is executed, or (ii) the three-month period ending with the
month in which the Closing occurs. The parties agree to file such Tax Returns (as defined in Section 7.2(j)) as they may file in respect of the transactions contemplated by this Agreement consistent with the characterization of such transactions as
set forth herein. 
  
 4.9 Tax Withholding. Notwithstanding
the provisions of Section 4.8, any payments to directors, officers, employees or Stockholders of the Company properly treated as compensation for Tax purposes shall be so treated and the Company shall make all required withholdings of Taxes as
required by law out of any such payments. 
  
 SECTION 5. REPRESENTATIONS AND WARRANTIES OF THE COMPANY 
  
 5.1 Making of Representations and Warranties. As a material inducement to each of the Parent and MergerSub to enter into this Agreement and consummate the transactions contemplated hereby, the Company hereby
makes to the Parent and MergerSub the representations and warranties contained in this Section 5. The Parent and the Surviving Corporation shall have a right of indemnity from the Stockholders (other than the Parent and/or MergerSub), as expressly
set forth in Section 13, with respect to any breach by the Company of the Company’s representations or warranties set forth in this Section 5. The Stockholders shall not have any right of indemnity or contribution from the Company, the Parent
or the Surviving Corporation with respect to the breach of any representation or warranty hereunder. 
  
 5.2 Restatement of Master Agreement. Each of the representations and warranties made by the Company in Section 2 of the Master Agreement of which
this Agreement is an exhibit is, subject to the disclosures set forth in the Disclosure Schedule attached as Schedule A to the Master Agreement (as defined in the Master Agreement), hereby incorporated by reference 

  

 17 

 
into this Section 5 and shall be treated for all purposes as if set forth in their entirety herein, and each representation or warranty made by the Company
to the Investor therein is hereby deemed to be made by the Company to the Parent and MergerSub herein.  
  
 5.3 Transfer of Shares. No holder of stock of the Company has at any time transferred any of such stock to any employee of the Company, which
transfer constituted or could be viewed as compensation for services rendered to the Company by said employee. 
  
 5.4 Required Voting Percentage. The stockholders of the Company who have executed that certain Shareholder Master Agreement by and among the
Parent, MergerSub and the stockholders of the Company (the “Shareholder Master Agreement”) and who have approved this Agreement represent one hundred percent (100%) of the Series E Preferred Stock, Series D Preferred Stock and
Series B Preferred Stock, ninety five percent (95%) of the Series A Preferred Stock of the Company, at least a majority of the Series C Preferred Stock of the Company, and at least eighty percent (80%) of the Common Stock of the Company. 

 
 SECTION 6. INTENTIONALLY OMITTED 
  
 SECTION 7. COVENANTS OF THE COMPANY 
  
 7.1 Making of Covenants and Agreements. The Company hereby makes the
covenants and agreements set forth in this Section 7. The Parent and the Surviving Corporation shall have a right of indemnity from the Stockholders (other than the Parent and/or MergerSub), as expressly set forth in Section 13, with respect to any
breach by the Company of the Company’s covenants and agreements set forth in this Section 7. The Stockholders shall not have any right of indemnity or contribution from the Company, the Parent or the Surviving Corporation with respect to the
breach of any covenant or agreement hereunder. 
  
 7.2 Conduct
of Business. During the period between the date of this Agreement and the date which is the earlier to occur of (i) the Effective Time and (ii) the date on which this Agreement is terminated pursuant to Section 12 (the “Interim
Period”), the Company will not, unless it has received unanimous authorization from its Board of Directors: 
  
 (a) Enter into, or permit any subsidiary to enter into, any transaction with any stockholder, officer or director, or any relative or
affiliate of the foregoing, other than any transaction in accordance with Section 3.6 of the Master Agreement or as allowed pursuant to Section 7.2(i) hereof; 
  

(b) Create, incur or assume any indebtedness for borrowed money; 
  
 (c) Conduct its business outside the ordinary course; 
  
 (d) Make any purchase, sale or disposition of any asset or
property other than in the ordinary course of business, or mortgage, pledge, subject to a lien or otherwise encumber any of its properties or assets other than in the ordinary course of business; 
  
 (e) Incur any contingent liability as a guarantor or
otherwise with respect to the obligations of others; 
  

 18 

 (f) Declare, set aside or pay any dividend, make any other distribution in respect of its
capital stock or make any direct or indirect redemption, purchase or other acquisition of its stock other than for the repurchase of Common Stock of the Company issued to employees, directors or consultants pursuant to agreements with such persons
that permit the Company to repurchase such shares at cost, provided that the aggregate repurchase price of all such stock does not exceed $10,000; 
  
 (g) Prepay any loans (if any) from its stockholders, officers or directors or make any changes in its borrowing arrangements; 

 
 (h) Amend, alter or repeal the Certificate of
Incorporation or the Company’s Bylaws or waive any provision thereof; 
  
 (i) Engage in any transaction with any affiliate, including any contract, agreement or other arrangement providing for the furnishing of services to or by, providing for rental of real or personal property to or from,
or otherwise requiring payments to or from any such affiliate or, to the knowledge of the Company, any corporation, partnership, limited liability company, trust or other entity in which any such affiliate has a substantial interest or is an
officer, director, partner, member or trustee, except for transactions involving less than $50,000 that are on terms no less favorable to the Company then would exist in negotiated arms’ length transaction with third parties and except for
commercial transactions with Dr. Thomas Fogarty or his Affiliates (as defined in Section 7.9) that are on terms not less favorable than could be obtained from third parties; or 
  
 (j) Make or change any election relating to Taxes, adopt or change any Tax accounting method or period
(except as required under the Code), enter into any closing agreement, settle any Tax claim or assessment relating to the Company, surrender any right to claim a refund of Taxes, consent to any extension or waiver of the limitation period applicable
to any Tax claim or assessment relating to the Company, if such election, adoption, change, agreement, settlement, surrender, consent or other action would have a material impact on the Company or the Parent, provided that the member of the Board of
Directors elected by the holder of Series F Preferred Stock of the Company shall not unreasonably withhold or delay approval of matters arising under this Section 7.2(j). For purposes of this Agreement, “Tax,” “Taxes” or
“Tax Return” shall have the meanings given those terms under Section 2.17 of the Master Agreement. 
  
 7.3 Preservation of Business. The Company shall use its commercially reasonable efforts to keep intact its business organization, to keep available
its present officers and employees and to preserve the goodwill of all suppliers, customers, independent contractors and others having business relations with it. 
  
 7.4 Authorization from Others. Prior to the Closing Date, the Company will use its commercially reasonable efforts to
obtain all consents, approvals, and authorizations necessary or advisable to consummate the transactions contemplated by this Agreement or required by the terms of any lease, license, contract or other agreement by which the Company is bound.

  

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 7.5 Notice of Default. Promptly upon the occurrence of, or promptly upon the Company becoming
aware of the impending or threatened occurrence of, any event which would cause or constitute a breach or default, or would have caused or constituted a breach or default had such event occurred or been known to the Company prior to the date hereof,
of any of the representations, warranties or covenants of the Company contained in or referred to in this Agreement or in any Schedule or Exhibit referred to in this Agreement, the Company shall give detailed written notice thereof to the Parent and
the Company shall use its commercially reasonable efforts to prevent or promptly remedy the same. 
  
 7.6 Consummation of Agreement. The Company shall use its commercially reasonable efforts to perform and fulfill all conditions and obligations on
its part to be performed and fulfilled by the Company under this Agreement, to the end that the transactions contemplated by this Agreement shall be fully carried out. To this end, the Company will obtain prior to the Closing all necessary
authorizations or approvals of its stockholders and Board of Directors. 
  
 7.7 Parent Access to the Company. Prior to the Closing, the Parent and its authorized representatives shall have reasonable access to all the Company’s properties, assets, records, licenses, Tax Returns, contracts and documents.

  
 7.8 Cooperation of the Company. The Company shall
cooperate with all reasonable requests of ZOLL and ZOLL’s counsel in connection with the consummation of the transactions contemplated hereby. 
  
 7.9 No Solicitation of Other Offers. From the date hereof and continuing until (and including) June 30, 2004 (such period, the “Exclusivity
Period”), neither the Company, nor anyone (including without limitation financial advisors or other agents) acting, directly or indirectly on behalf of the Company, shall, directly or indirectly, continue, initiate, solicit, encourage,
respond to (other than to decline interest) or participate in discussions or negotiations with, or the submission of bids, offers or proposals by, or provide any assistance to, or enter into any agreement with, any third party (other than ZOLL, or
its Affiliates) concerning any acquisition of stock or assets (other than in the ordinary course of business), merger, consolidation or other transaction that would result in the transfer to any such person of any material assets of the Company (any
such transaction, a “Transaction”). The Company agrees to notify ZOLL immediately if any bids, offers or proposal for a Transaction are received, or if any negotiations for a Transaction are sought. Further, the Company will not,
except as required by law, disclose any information not customarily disclosed to any person or entity (other than ZOLL and its representatives) concerning the Company or afford any other person or entity (other than ZOLL and its representatives)
access to any of the tangible or intangible assets or goodwill of the Company, including without limitation, personnel, properties, books or records. As used herein the term “Affiliate” shall mean with respect to any person, any
other person that directly or indirectly controls or is controlled by or is under common control with such first person and shall include, without limitation, officers, directors, employees, agents, partners, advisors, parent entities and subsidiary
entities. 
  
 7.10 Confidentiality. Each party to this
Agreement agrees that each of them and their respective officers, directors, agents and representatives will hold in strict confidence, and will 

  

 20 

 
not use, any confidential or proprietary data or information obtained from the other parties to this Agreement with respect to its business or financial
condition except for the purpose of evaluating, negotiating and completing the transaction contemplated hereby. Information generally known in the Parent’s and the Company’s industry or which has been disclosed to a party to this Agreement
by third parties which have a right to do so shall not be deemed confidential or proprietary information for purposes of this Agreement. If the transaction contemplated by this Agreement is not consummated, each party to this Agreement will return
to the party that supplied or disclosed the data and information (or certify that they have destroyed) all copies of such data and information, including but not limited to financial information, customer lists, business and corporate records,
worksheets, test reports, Tax Returns, lists, memoranda, and other documents prepared by or made available in connection with the transaction. This Section 7.10 shall be subject to the provisions of Section 14.12. 
  
 7.11 Regulatory Matters. If required by the Hart-Scott-Rodino
Antitrust Improvements Act of 1976, as amended (the “HSR Act”), and if the appropriate filing of a Pre-Merger Notification and Report Form pursuant to the HSR Act has not been filed prior to the date hereof, each party hereto agrees
to make an appropriate filing of a Pre-Merger Notification and Report Form with respect to the transactions contemplated by this Agreement within five (5) business days after the date hereof and to supply promptly any additional information and
documentary material that may be requested pursuant to the HSR Act. The parties hereto will not take any action that will have the effect of delaying, impairing or impeding the receipt of any required approvals and shall promptly respond to any
requests for additional information from any governmental authority or filings in respect thereof. The Parent and the Stockholders shall each share equally the payment of all filing and related fees in connection with any such filings which must be
made by any of the parties under the HSR Act. 
  
 7.12 Delivery
of Financial Statements. The Company shall deliver to the Parent, no later than December 31, 2003, audited financial statements as at, and for the twelve (12) month period ended, December 31, 2001. The Company shall deliver to the Parent, no
later than December 31, 2003, audited financial statements as at, and for the twelve (12) month period ended, December 31, 2002. The Company shall deliver to the Parent, no later than April 30, 2004, audited financial statements as at, and for the
twelve (12) month period ended, December 31, 2003. The Company shall deliver to the Parent, no later than forty-five (45) days after the end of each fiscal quarter, unaudited financial statements as at, and for the three (3) month period then ended.
The Company shall promptly deliver to the Parent any financial statements or financial or other information required to be included in any Current Report on Form 8-K that the Parent intends to file with the Securities and Exchange Commission (the
“SEC”) in connection with the transactions contemplated by this Agreement. 
  
 7.13 Supplements to Schedules. Prior to the Closing Date, the Company may supplement or amend the Disclosure Schedule required by Article V with respect to any matter hereafter arising which, if existing or
occurring at the date of this Agreement, would have been required to be set forth or described in such schedule. No supplement or amendment of the Schedule made pursuant to this Section 7.13 shall be deemed to cure any breach of any representation
or warranty made in this Agreement or to satisfy any Closing condition unless Parent and MergerSub agree thereto in writing. 
  

 21 

 7.14 Officers’ and Directors’ Insurance. Prior to the Effective Time, the Company shall
purchase an extended reporting period endorsement (“Reporting Tail Coverage”) under the Company’s existing directors’ and officers’ liability insurance coverage for the Company’s directors and officers in a form
acceptable to the Company which shall provide such directors and officers with coverage for the standard term following the Effective Time of not less than the existing coverage under, and have other terms not materially less favorable to, the
insured persons than the directors’ and officers’ liability insurance coverage presently maintained by the Company; provided, however, than in any event the total aggregate cost of such Reporting Tail Coverage shall not
exceed $40,000 (the “Maximum Amount”); and provided, further, that if such coverage cannot be obtained for such cost, the Company will maintain, for such standard term, the maximum amount of comparable coverage as
shall be available for the Maximum Amount on such terms. 
  
 7.15
Intellectual Property. During the Interim Period, the Company shall cooperate in good faith with the Parent in the prosecution, filing and maintenance of all Company Patents (as defined in Section 2.9 of the Master Agreement and incorporated
herein by reference) and patent applications, including, but not limited to, allowing Parent to review and comment on each patent application and other material filing within a reasonable amount of time prior to the filing of any such items with the
United States Patent and Trademark Office or any similar office or agency anywhere in the world and considering in good faith the Parent’s comments. 
  

SECTION 8. REPRESENTATIONS AND WARRANTIES OF PARENT AND MERGERSUB 
  
 8.1 Making of Representations and Warranties. As a material
inducement to the Company to enter into this Agreement and to the Company and the Stockholders to consummate the transactions contemplated hereby, the Parent and MergerSub hereby make the representations and warranties to the Company and the
Stockholders contained in this Section 8. 
  
 8.2 Organization,
Good Standing and Qualification. The Parent and MergerSub are each corporations duly organized, validly existing and in good standing under the laws of the State of Massachusetts and Delaware, respectively, and have all requisite corporate power
and authority to carry on its respective business as now conducted and as proposed to be conducted. The Parent and MergerSub are duly qualified to transact business and are in good standing in each jurisdiction in which the failure so to qualify
would have a material adverse effect on the assets, properties, financial condition, operating results, or business of the Parent and MergerSub (as such business is presently conducted and as it is proposed to be conducted) (a “ZOLL Material
Adverse Effect”). MergerSub is a newly formed entity and has no, and has never had any, operations or employees. 
  
 8.3 Authorization. All corporate action on the part of the Parent and MergerSub, their respective officers, directors and stockholders necessary
for the authorization, execution and delivery of this Agreement, and each agreement, document and instrument to be executed and delivered by ZOLL pursuant to this Agreement (the “ZOLL Related Agreements”), and to carry out the
transactions contemplated hereby, has been taken or will be taken prior to the Closing, and this Agreement and the ZOLL Related Agreements constitute valid and legally binding obligations of ZOLL, enforceable in accordance with their terms.

  

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 8.4 Consents. No consent, approval, order or authorization of, or registration, qualification,
designation, declaration or filing with, any person, entity or federal, state or local governmental authority on the part of the Parent or MergerSub is required in connection with the consummation of the transactions contemplated by this Agreement,
except for (i) notice filings under Regulation D of the Securities Act and state “blue sky” laws, if applicable and (ii) the notification requirements under the HSR Act, if applicable. 
  
 8.5 Finder’s Fee. Except as set forth on the disclosure schedules
attached hereto as Schedule C (the “Parent Disclosure Schedule”), ZOLL has not incurred or become liable for any broker’s commission or finder’s fee relating to or in connection with the transactions contemplated by
this Agreement. 
  
 8.6 Filings with the Securities and
Exchange Commission. 
  
 (a) The Parent has
made available to the Company a true, correct and complete copy of its Annual Report on Form 10-K for the year ended September 30, 2002 and Quarterly Report on Form 10-Q for the quarters ended December 31, 2002 and March 31, 2003 (collectively, the
“Parent SEC Reports”). The Parent SEC Reports have been timely filed pursuant to the Exchange Act of 1934, as amended (the “Exchange Act”). 
  
 (b) The Parent SEC Reports complied as to form in all material respects with the requirements of the
Exchange Act in effect on the date thereof. The Parent SEC Reports, when filed pursuant to the Exchange Act, did not contain any untrue statement of a material fact or omit to state any material fact necessary in order to make the statements
therein, in light of the circumstances under which they were made, not misleading. 
  
 (c) Each of the Parent’s financial statements (including the related notes) included in the Parent SEC Reports presents fairly, in
all material respects, the consolidated financial position and consolidated results of operations and cash flows of the Parent as of the respective dates or for the respective periods set forth therein, all in conformity with United States generally
accepted accounting principles consistently applied during the periods involved except as otherwise noted therein, and subject, in the case of any unaudited interim financial statements included therein, to normal year-end adjustments which were not
or are not expected to be material in amount and to absence of complete footnotes. 
  
 8.7 Stockholder Approvals. No consent or approval of the stockholders of the Parent is required or necessary for the Parent to enter into this Agreement or the ZOLL Related Agreements or to consummate the
transactions contemplated hereby or thereby. 
  
 8.8 Absence of
Changes. From the date of the Parent’s most-recently filed annual or quarterly report on Form 10-K or Form 10-Q, respectively, neither the Parent nor MergerSub has suffered any change (other than a change reported in a publicly-issued press
release or in a current report on Form 8-K) that has resulted, or could reasonably be expected to result, in a ZOLL Material Adverse Effect. 
  

 23 

 SECTION 9. INTENTIONALLY OMITTED. 
  
 SECTION 10. CONDITIONS TO CLOSING. 
  
 10.1 Conditions to Parent’s and MergerSub’s Obligations to
Close. The obligations of the Parent and MergerSub to consummate the transactions contemplated by this Agreement are subject to the fulfillment or waiver prior to the Closing of the following conditions precedent and the delivery by the Company,
to the Parent of the following duly executed agreements, documents, certificates, instruments and other items: 
  
 (a) Each of the representations and warranties of the Company contained in Section 5 shall be true and correct in all material respects
(except for such representations and warranties that are qualified by their terms as to knowledge or materiality, which representations and warranties as so qualified shall be true in all respects) as of the date of this Agreement and as of the
Closing Date (except for any representation or warranty which speaks as of a specific date, which shall be measured as of such specific date in lieu of such other dates) as though made on and as of the Closing; and the Company shall, on or before
the Closing, have performed in all material respects all of its obligations hereunder which by the terms hereof are to be performed on or before the Closing. 
  

(b) There shall have been no material adverse change in the financial condition, properties, assets, liabilities, business or
operations of the Company since the date hereof, whether or not in the ordinary course of business. 
  
 (c) The Company shall have delivered copies of all third party consents, waivers or approvals required with respect to the transactions
contemplated hereby. 
  
 (d) The Company shall
have delivered to the Parent a certificate of the an officer of the Company dated as of the Closing to the effect that the statements set forth in paragraph (a), (b) and (c) above in this Section 10.1 are true and correct. 
  
 (e) Any waiting period (and any extension thereof) under the
HSR Act applicable to the transactions to be consummated at the Closing shall have expired or been terminated; 
  
 (f) The Parent shall have exercised its option to purchase the Company pursuant to the Merger in accordance with Section 6 of the Master
Agreement; 
  
 (g) If pursuant to Section 11.3(j)
below, the Parent shall have elected upon the advice of counsel to file a Form S-4 (as defined below), such Form S-4 shall have been declared effective by the SEC and shall remain effective; and 
  
 (h) The Certificate of Merger shall have been filed with the
Secretary of State of the State of Delaware and the Merger shall be effective. 
  
 The Parent and MergerSub may waive any condition specified in this Section 10.1 if they execute a writing so stating on or prior to the Closing and such waiver shall not be considered a waiver of any other provision
in this Agreement unless the writing specifically so states. 
  

 24 

 10.2 Conditions to Company’s Obligations to Close. If pursuant to Section 11.3(j) below, the
Parent shall have elected upon the advice of counsel to file a Form S-4, the obligation of the Company to consummate the transactions contemplated by this Agreement are subject to such Form S-4 being declared effective by the SEC and remaining
effective, or the waiver prior to the Closing of such condition precedent. The Company may waive any condition specified in this Section 10.2 if it executes a writing so stating on or prior to the Closing and such waiver shall not be considered a
waiver of any other provision in this Agreement unless the writing specifically so states. 
  
 SECTION 11. RIGHTS AND OBLIGATIONS SUBSEQUENT TO CLOSING. 
  
 11.1 General Rights And Obligations. Each of the representations, warranties, agreements, covenants and obligations
herein or in any Schedule, Exhibit, certificate or financial statement delivered by any party to the other party incident to the transactions contemplated hereby are material, shall be deemed to have been relied upon by the other party and shall
survive for a period ending on the earlier of (i) one year following the Merger Closing (or two years following the Merger Closing in the case of the representation in Section 2.9) and (ii) six months following the termination of this Agreement,
regardless of any investigation and shall not merge into the performance of any obligation by any party hereto. Notwithstanding the foregoing, and only in the event the Merger Closing has occurred, claims based on fraud or intentional
misrepresentation, and claims based on the representations in Sections 2.2(c), 2.4, 2.15 and 2.17 of the Master Agreement incorporated by reference herein shall survive the Closing until the expiration of the applicable statute of limitations and
shall not merge in the performance of any obligation by any party hereto. 
  
 11.2 Tax Matters. ZOLL, the Company and the Stockholders agree, upon request, to use their commercially reasonable efforts to obtain any certificate (including under Section 897 and 1445 of the Code) or other
document from any governmental authority or any other person as may be reasonably necessary to mitigate, reduce or eliminate any Tax that could be imposed with respect to, or as a result of, the transactions contemplated hereby. 
  
 11.3 Registration of Parent Common Stock. 
  
 (a) Within thirty (30) calendar days after the Closing Date,
the Parent shall file with the SEC, a registration statement on Form S-3 (or any successor short form registration involving a similar amount of disclosure; or if then ineligible to use any such form, then any other available form of registration
statement, the “Initial Registration Statement”) for a public offering of all the Parent Common Stock comprising the Initial Parent Stock Consideration then outstanding and held by the former Company Stockholders to be made on a
continuous basis pursuant to Rule 415 of the Securities Act; and which may also include any contingent shares of Parent Common Stock which may be issued to the former Company Stockholders in connection with the payment of Contingent Clinical
Milestone Consideration or Contingent Revenue Milestone Consideration. Within thirty (30) calendar days after the date of each issuance of shares of Parent Common Stock comprising the AHA Abstract Stock Consideration, the Major Medical Journal Stock
Consideration, the Additional Major Medical Journal Stock Consideration, the 2004 Abstracts Stock Consideration, the FY 2005 Revenue Milestone Stock Consideration, the FY 2006 Revenue Milestone Stock Consideration, or the FY 2007 Revenue 

  

 25 

 
Milestone Stock Consideration, the Parent shall file with the SEC, a registration statement on Form S-3 (or any successor short form registration involving a
similar amount of disclosure; or if then ineligible to use any such form, then any other available form of registration statement (each, an “Additional Registration Statement” and together with the Initial Registration Statement,
the “Registration Statements”) for a public offering of all such shares of Parent Common Stock then outstanding and held by the former Company Stockholders to be made on a continuous basis pursuant to Rule 415 of the Securities Act,
except to the extent that such contingent shares of Parent Common Stock have previously been registered under the Initial Registration Statement. The Parent will use its commercially reasonable efforts to: (i) cause the Initial Registration
Statement and any Additional Registration Statement to become effective (subject to review of such Registration Statements by the SEC) within ninety (90) calendar days after its date of filing, and to remain continuously effective until the earlier
of (A) two years after the Closing Date, in the case of the Initial Registration Statement, or two years after the applicable date of issuance, in the case of an Additional Registration Statement, or (B) such time as all of the Parent Common Stock
held by the former Company Stockholders may be sold pursuant to Rule 144 promulgated under the Securities Act on a single day; (ii) file such amendments or supplements as may be necessary so that the prospectus contained in the Initial Registration
Statement or any Additional Registration Statement may be delivered by any selling shareholder to purchasers of the Parent Common Stock in accordance with applicable law; and (iii) effect all such registrations, qualifications and compliances
(including, without limitation, obtaining appropriate qualification under applicable state securities or “blue sky” laws and compliance with any other applicable governmental requirements or regulations) as any selling stockholder may
reasonably request and that would permit or facilitate the sale of his, her or its shares of Parent Common Stock; provided, however, that the Parent will not be required to (i) qualify as a foreign corporation or as a dealer in
securities in any jurisdiction where it is not otherwise qualified but for this Agreement or (ii) take any action that would subject it to general service of process in suits or to taxation in any such jurisdiction where it is not then so subject.
Upon written notice to the selling stockholders listed therein, the Parent may, not more often than two (2) times during any fiscal year, suspend use of the Registration Statement for a period of up to thirty (30) calendar days (the
“Suspension Right”); provided, that the Parent shall not be entitled to invoke the Suspension Right unless such right or an equivalent restriction has been imposed on, and is then applicable to, all of the Parent’s
executive officers, directors and other holders of Parent Common Stock that are registered for resale under the Securities Act. 
  
 (b) As soon as practicable following the effectiveness of the Initial Registration Statement and each Additional Registration Statement,
the Parent will furnish to each former Company Stockholder such number of copies of the prospectus contained in the applicable Registration Statement and any amendment or supplement thereto as such holder may reasonably request in order to
facilitate the offering and sale of his, her or its shares of Parent Common Stock. 
  
 (c) Following the date on which the Initial Registration Statement or an Additional Registration Statement is first declared effective,
the holder of the shares of Parent Common Stock subject to such Registration Statement will be permitted to offer and sell such shares in the manner described in such Registration Statement, provided that such Registration Statement remains
effective and has not been suspended. 
  

 26 

 (d) The Company and the former Company Stockholders covenant and agree that they shall
provide to the Parent on a timely basis such consents, representations and information and execute such documents as may reasonably be required by the Parent in connection with the Initial Registration Statement and any Additional Registration
Statement. 
  
 (e) The Parent shall pay all
expenses of registration of the Parent Common Stock pursuant to this Section including, without limitation, printing expenses (including a reasonable number of prospectuses for circulation by the selling stockholders), legal fees and disbursements
of counsel for the Parent, “blue sky” expenses, accounting fees and filing fees, but shall not include underwriting or brokerage commissions or similar charges, or any legal fees and disbursements of counsel for the selling stockholders.

  
 (f) To the extent permitted by law, the
Parent will indemnify and hold harmless each former Company Stockholder, any underwriter (as defined in the Securities Act) for such stockholder, its officers, directors, stockholders or partners and each person, if any, who controls such
stockholder within the meaning of the Securities Act or Exchange Act, against any costs or expenses (including attorney’s fees), judgments, fines, losses, claims, damages, liabilities or amounts paid in settlement, joint or several, to which
any of them may become subject under the Securities Act, the Exchange Act, other federal or state law or otherwise, insofar as such costs or expenses (including attorney’s fees), judgments, fines, losses, claims, damages liabilities or amounts
paid in settlement (or actions in respect thereof) arise out of or are based upon any of the following statements, omissions or violations (collectively, a “Violation”): (i) any untrue or alleged untrue statement of any material
fact contained or expressly incorporated by reference in any Registration Statement, including any preliminary prospectus or final prospectus contained therein or any amendment or supplement thereto; (ii) the omission or alleged omission to state
therein a material fact required to be stated therein or necessary to make the statements therein not misleading; and (iii) any violation or alleged violation by the Parent of the Securities Act, the Exchange Act, any state securities law or any
rule or regulation promulgated under the Securities Act, the Exchange Act or any state securities law; and the Parent will reimburse each such former Company Stockholder (and its officers, directors, stockholders or partners), underwriter and
controlling person for any legal or other expenses reasonably incurred by any of them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the indemnity agreement
contained in this Section 11.3(f) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Parent (which consent shall not be unreasonably withheld)
nor shall the Parent be liable in any such case for any such loss, claim, damage, liability or action to the extent that it arises out of or is based upon a Violation which occurs in reliance upon and in conformity with written information furnished
expressly for use in connection with the Registration Statement by any such former Company Stockholder or any person controlling such stockholder. 
  
 (g) To the extent permitted by law, each selling stockholder will, severally and not jointly, indemnify and hold harmless the Parent, its
directors, its officers who have signed the applicable Registration Statement and each person, if any, who controls the Parent within the meaning of the Securities Act, any other former Company Stockholder selling securities pursuant to the
applicable Registration Statement and any controlling person of such other stockholder, against any losses, claims, damages or liabilities (joint or several) to which 

  

 27 

 
any of the foregoing persons may become subject, under the Securities Act, the Exchange Act or otherwise, insofar as such losses, claims, damages or
liabilities (or actions in respect thereto) arise out of or are based upon any Violation, in each case to the extent, but only to the extent, that such Violation occurs in reliance upon and in conformity with written information furnished by such
stockholder expressly for use in the applicable Registration Statement; and each such stockholder will reimburse any legal or other expenses reasonably incurred by the Parent or any such director, officer and controlling person in connection with
investigating or defending any such loss, claim, damage, liability or action. It is agreed that the indemnity agreement contained in this Section 11.3(g) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or
action if such settlement is effected without the consent of the indemnifying party (which consent shall not be unreasonably withheld). The aggregate indemnification liability of each selling stockholder under this Section 11.3(g) shall not exceed
the net proceeds received by such stockholder in connection with his, her or its sale of shares of Parent Common Stock pursuant to the applicable Registration Statement. 
  
 (h) If the indemnification provided for in Sections 11.3(f) and 11.3(g) hereof is unavailable to a person
entitled to indemnification hereunder, then each person that would have been an indemnifying party hereunder will, in lieu of indemnifying such indemnified party, contribute to the amount paid or payable by such indemnified person for which
indemnification is provided herein in such proportion as is appropriate to reflect the relative fault of the indemnifying party and such indemnified party, respectively, in connection with the statements or omissions which resulted in the costs or
expenses (including attorney’s fees), judgments, fines, losses, claims, damages, liabilities or amounts paid in settlement underlying such indemnification obligations, as well as any other relevant equitable considerations. Relative fault will
be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information supplied by the indemnifying party or such
indemnified party and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Parent and the former Company Stockholders agree that it would not be just and equitable
if contribution pursuant to this Section 11.3(h) were determined by pro rata allocation or by any other method of allocation that does not take account of the equitable considerations referred to above in this Section 11.3(h). No person guilty of
fraudulent misrepresentation (within the meaning of Section 11(f) of the Securities Act) will be entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 
  
 (i) Promptly after receipt by a party indemnified under this
Section 11.3 of notice of the commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 11.3, notify the indemnifying party in writing of the commencement
thereof and the indemnifying party shall have the right to participate in, and, to the extent the indemnifying party desires, jointly with any other indemnifying party similarly noticed, to assume the defense thereof with counsel mutually
satisfactory to the parties; provided, however that if the defendants in any such action include both the indemnified party and the indemnifying party and, under applicable standards of professional conduct, a conflict on any
significant issue between the positions of the indemnified party and the indemnifying party exists, the indemnified party or parties shall have the right to select one separate law firm, at the indemnifying party’s or parties’ expense, to
assume such legal defenses and to otherwise participate in the defense of such action on behalf of such 

  

 28 

 
indemnified party or parties. The failure to notify any indemnifying party promptly of the commencement of any such action, shall not relieve such
indemnifying party of any liability to the indemnified party under this Section 11.3, except to the extent that such indemnifying party is actually prejudiced thereby. No indemnifying party, in the defense of any such claim or litigation, shall
(except with the consent of each indemnified party) consent to entry of any judgment or enter into any settlement that does not include as an unconditional term thereof the giving by the claimant or plaintiff to such indemnified party of a release
from all liability in respect of such claim or litigation. Each indemnified party shall furnish such information regarding itself or the claim in question as an indemnifying party may reasonably request in writing and as shall be reasonably required
in connection with the defense of such claim or litigation resulting therefrom. 
  
 (j) Upon the advice of counsel of the Parent that the offer and sale of Parent Common Stock to the Stockholders in connection with the
Initial Merger Consideration, the Contingent Clinical Milestone Consideration, or the Contingent Revenue Milestone Consideration, will not qualify for a private placement exemption from the Securities Act, the Parent may elect to file with the SEC,
a registration statement on Form S-4 (such registration statement, together with any amendments or supplements thereto, the “Form S-4”), and such Form S-4 shall be declared effective prior to the applicable issuance and distribution
of Parent Common Stock to the Stockholders. The Parent agrees to use its commercially reasonable efforts to cause such Form S-4 registration statement to be declared effective at the time the Parent Common Stock registered thereby is otherwise
payable to the Stockholders under this Agreement. 
  
 11.4
Nasdaq National Market Listing. The Parent agrees to authorize for listing on the Nasdaq National Market, (i) as of the Effective Time, the Parent Common Stock issued on the Closing Date, and (ii) such additional shares of Parent Common Stock
as of the issuance of such Parent Common Stock in connection with the occurrence of certain events described in this Agreement. 
  
 11.5 Company Stockholder Documents. The Company shall use its commercially reasonable efforts to obtain and deliver the following to the Parent
promptly following the date of this Agreement and in any event prior to the date of any distribution of the Initial Merger Consideration, the Contingent Clinical Milestone Consideration, or the Contingent Revenue Milestone Consideration (each in
form and substance satisfactory to the Parent in its reasonable discretion): 
  
 (a) a questionnaire executed by each Stockholder as to personal wealth and financial sophistication (each a “Company Stockholder Questionnaire”); and 
  
 (b) with respect to each Stockholder reasonably deemed by
the Parent not to be an “Accredited Investor” as defined in Rule 501 of Regulation D promulgated pursuant to the Securities Act (“Regulation D”), either (i) a written certification that such Stockholder has such knowledge
and experience in financial and business matters that such Stockholder is capable of evaluating the merits and risks of a prospective investment in Parent Common Stock (within the meaning of Rule 506 of Regulation D (each a “Sophistication
Certification”) or (ii) a written agreement (each a “Purchaser Representative Agreement”) between such Stockholder and a 

  

 29 

 
purchaser representative (who shall make written certifications reasonably satisfactory to the Parent that he or it is a purchaser representative within the
meaning of Regulation D) regarding the representation of such Stockholder in connection with this Agreement and the transactions contemplated hereby, together with such other representations and agreements pursuant to the provisions of Regulation D
as the Parent shall reasonably request. 
  
 The Company
Stockholder Questionnaires, Sophistication Certifications and Purchaser Representative Agreements are referred to herein together as the “Company Stockholder Documents.” 
  
 11.6 Certain Employee Benefit Matters. In the event the First Merger is consummated, employees of the Company at the
Merger Closing will be provided with employee benefits by the Merger Sub or the Parent which in the aggregate are no less favorable to such employees than those provided from time to time by the Parent to its similarly situated employees. If any
employee of the Company becomes a participant in any employee benefit plan, program, policy or arrangement of the Parent, such employee shall be given credit for all service prior to the Merger Closing with the Company to the extent permissible
under such plan, program, policy or arrangement. 
  
 SECTION 12. TERMINATION OF AGREEMENT 
  
 12.1
Termination. This Agreement may be terminated any time prior to the Closing Date as follows: 
  
 (a) by mutual written consent of all of the Parent and the Company; 
  
 (b) by the Parent, at any time prior to the giving of the “Exercise Notice” as provided in
Section 6.1 of the Master Agreement, pursuant to written notice by the Parent to the Company and the Stockholders’ Representative; 
  
 (c) by the Parent, at any time after the conclusion of the 60 day period following receipt by the Company and the Stockholders’
Representative of the Exercise Notice, if the Company has failed to satisfy all of the conditions to closing in this Agreement (other than the conditions in Sections 10.1(g) or 10.1(e)) in such 60 day period (as the same may be extended by the
Parent following receipt of the Exercise Notice); 
  
 (d) by the Company, if the Parent has not provided written notice to the Company or the Stockholders’ Representative prior to October 5, 2004 of its intention to consummate the Merger; 
  
 (e) by the Company if the Parent has determined to register
the Common Stock to be delivered as Merger Consideration under this Agreement on Form S-4 and the Parent has failed to use its commercially reasonable efforts to have such registration statement declared effective within 120 days of delivery of the
Exercise Notice. 
  
 Notwithstanding anything herein to the
contrary, the right to terminate this Agreement under Section 12.1 shall not be available to any party to the extent the failure of such party, respectively, to fulfill any of its obligations under this Agreement has been the cause of, or 

  

 30 

 
resulted in, the failure of the Closing to occur on or before such date (as a result, for example, of an action or failure to act causing a failure of a
condition precedent). 
  
 12.2 Effect of Termination. All
obligations of the parties hereunder shall cease upon any termination pursuant to Section 12.1; provided, however, that: (a) the provisions of Section 11.1, this Section 12 and Sections 14.1, 14.9 and 14.10 shall survive any
termination of this Agreement in any event; (b) nothing herein shall relieve any party from any liability for a material error or omission in any of its representations or warranties contained herein or a material failure to comply with any of its
covenants, conditions or agreements contained herein; provided, however, that no party shall have any liability for any such material error or omission or failure to comply other than for willful errors or omissions or failure to
comply; and (c) any party may proceed as further set forth in Section 12.3 below. 
  
 12.3 Right to Proceed. Anything in this Agreement to the contrary notwithstanding, if any of the conditions specified in Section 10.1 hereof have not been satisfied, the Parent shall have the right to proceed
with the transactions contemplated hereby without waiving any of its rights hereunder, and if any of the conditions specified in Section 10.2 hereof have not been satisfied, the Company shall have the right to proceed with the transactions
contemplated hereby without waiving any of its or the Stockholders’ rights hereunder. 
  
 SECTION 13. INDEMNIFICATION 
  
 13.1 Indemnification by Stockholders. In the event the Merger is consummated, the Stockholders (other than the Parent and/or MergerSub), severally
and not jointly, agree to indemnify and hold harmless Parent and MergerSub and their respective directors, officers, agents, affiliates and employees (each a “ZOLL Indemnitee”) from and against any and all claims, actions, suits,
liabilities, losses, damages, and expenses of every nature and character whether accrued, absolute, contingent or otherwise (including, but not by way of limitation, all reasonable attorneys’ fees incurred by ZOLL and all amounts paid by it in
settlement of any claim, action, suit or liability) (collectively, a “Claim”), which arise or result directly or indirectly by reason of: 
  
 (i) Any error, misstatement or omission in any representation or warranty made by the Company in this Agreement, any Schedule (without
giving effect to any supplement or amendment to the Schedules) or Exhibit hereto, or in any certificate delivered to satisfy a closing condition; and 
  
 (ii) Any breach of or default in performance of any of the covenants, agreements or other undertakings of the Company; 
  
 13.2 Indemnification by ZOLL. ZOLL shall indemnify and hold harmless
the Stockholders (the “Company Indemnitee”) from and against any and all Claims which arise or result directly or indirectly by reason of: 
  
 (i) Any error, misstatement or omission in any representation or warranty made by ZOLL in this Agreement, any Schedule or Exhibit hereto,
or in any certificate delivered to satisfy a closing condition; and 
  

 31 

 (ii) Any breach of or default in performance of any of the covenants, agreements or other
undertakings of ZOLL. 
  
 13.3 Indemnification Procedures.
An indemnified party may make claims for indemnification hereunder by giving written notice thereof to the indemnifying party within the period in which indemnification claims can be made hereunder. If indemnification is sought for a claim or
liability asserted by a third party, the indemnified party shall also give written notice thereof to the indemnifying party promptly after it receives notice of the claim or liability being asserted, but the failure to do so shall not relieve the
indemnifying party from any liability except to the extent that it is prejudiced by the failure or delay in giving such notice. In any case, such notice shall summarize the bases for the claim for indemnification and any claim or liability being
asserted by a third party. Within twenty (20) days after receiving such notice the indemnifying party shall give written notice to the indemnified party stating whether it disputes the claim for indemnification and whether it will defend against any
third party claim or liability at its own cost and expense. If the indemnifying party fails to give notice that it disputes an indemnification claim within twenty (20) days after receipt of notice thereof, it shall be deemed to have accepted and
agreed to the claim, which shall become immediately due and payable. The indemnifying party shall be entitled to direct the defense against a third party claim or liability with counsel selected by it (subject to the consent of the indemnified
party, which consent shall not be unreasonably withheld) as long as the indemnifying party is conducting a good faith and diligent defense. The indemnified party shall at all times have the right to fully participate in the defense of a third party
claim or liability at its own expense directly or through counsel; provided, however, that if the named parties to the action or proceeding include both the indemnifying party and the indemnified party and the indemnified party is
advised that representation of both parties by the same counsel would be inappropriate under applicable standards of professional conduct, the indemnified party may engage separate counsel at the expense of the indemnifying party. If no such notice
of intent to dispute and defend a third party claim or liability is given by the indemnifying party, or if such good faith and diligent defense is not being or ceases to be conducted by the indemnifying party, the indemnified party shall have the
right, at the expense of the indemnifying party, to undertake the defense of such claim or liability (with counsel selected by the indemnified party), but shall not compromise or settle it without the consent of the indemnifying party, which consent
will not be unreasonably withheld or delayed. If the third party claim or liability is one that by its nature cannot be defended solely by the indemnifying party, then the indemnified party shall make available such information and assistance as the
indemnifying party may reasonably request and shall cooperate with the indemnifying party in such defense, at the expense of the indemnifying party. 
  
 13.4 Limitations on Indemnification. No indemnification pursuant to Section 13.1 or Section 13.2 shall be payable unless the total of all claims
for indemnification pursuant to Section 13.1 or Section 13.2, as applicable, shall exceed One Hundred Fifty Thousand Dollars ($150,000) in the aggregate, whereupon the full amount of such claims shall be recoverable in accordance with the terms
hereof. The maximum amount that may be paid under Section 13.1 or Section 13.2 shall be limited to $15,000,000. All claims for indemnification pursuant to rights under Section 13.1 or Section 13.2 must be made prior to the close of business on the
first anniversary of the Effective Time, other than claims for indemnification arising under Section 2.9 of the Master Agreement and incorporated herein, which claims must be made prior to the close of business on the second anniversary of the
Effective Time; provided, however, that these 

  

 32 

 
time limitations shall not apply with respect to claims involving fraud or intentional misrepresentation, or claims arising under Sections 2.2(c), 2.4, 2.15
or 2.17 of the Master Agreement, which claims may be made until the expiration of the applicable statute of limitations. Notwithstanding the preceding sentence, if on or prior to the first anniversary of the Effective Time (or second anniversary in
the case of a claim arising under Section 2.9 of the Master Agreement) a specific state of facts shall have become known which may give rise to a claim for indemnification under Section 13.1 or Section 13.2 and an indemnified party shall have given
written notice of such facts known by such indemnified party at such time to the indemnifying party, then the right to indemnification with respect thereto shall remain in effect without regard to when such matter shall be finally determined and
disposed of. 
  
 13.5 Setoff. In order to satisfy the
indemnification obligations set forth in Section 13.1 above, the Parent and MergerSub shall have the right to notify the Stockholders of its intention to set off indemnification claims against amounts relating to the payment of Contingent Clinical
Milestone Consideration or Contingent Revenue Milestone Consideration (whether or not then due and payable) or amounts that may be paid by the Parent or MergerSub under this Section 13 to any Stockholders, and such set off shall be considered a
reduction in Merger Consideration. Any indemnification payable pursuant to Section 13 (other then claims involving fraud or intentional misrepresentation) shall be paid solely from this right of set off. 
  
 13.6 Sole Remedy. Subject to the provisions of Section 14.11,
following the Closing, the parties agree that the rights to indemnification under this Section 13 shall be exclusive of all rights of indemnification or other remedies that Parent may have against the Stockholders or that the Stockholders or Company
may have against Parent and MergerSub in connection with any error, misstatement or omission in any representation or warranty in this Agreement, any Schedule or Exhibit (other than any claim relating to the Stockholder Master Agreement) hereto, or
in any certificate delivered to satisfy a closing condition, except for claims relating to or involving fraud or intentional misrepresentation, or claims for indemnification covered by Section 11.3 of this Agreement. Nothing herein shall be deemed
to limit any remedy the Parent or MergerSub may have against the Company hereunder. 
  
 SECTION 14. MISCELLANEOUS 
  
 14.1 Fees and Expenses. 
  
 (a) Except as provided elsewhere in this Agreement, the Company, ZOLL and the Stockholders will each bear their own expenses in connection
with the negotiation and the consummation of the transactions contemplated by this Agreement, provided, however, that any fees or expenses payable to SG Cowen by the Company shall be paid by the Stockholders out of the proceeds of this transaction,
as provided in Section 4.1 hereof. 
  
 (b)
The Stockholders will pay all costs incurred, whether at or subsequent to the Closing, in connection with the transfer of the Company Shares to ZOLL as contemplated by this Agreement, including without limitation, all transfer Taxes and charges
applicable to such transfer, and all costs of obtaining permits, waivers, registrations or consents with respect to any assets, rights or contracts of the Company. 
  

 33 

 14.2 Governing Law. Except when the law of another jurisdiction is specifically specified, this
Agreement shall be construed under and governed by the internal laws of the State of Delaware without regard to its conflict of laws provisions. 
  
 14.3 Notices. Any notice, request, demand or other communication required or permitted hereunder shall be in writing and shall be deemed to have
been given if delivered or sent by facsimile transmission, upon receipt, or if sent by registered or certified mail, upon the sooner of the date on which receipt is acknowledged or the expiration of three days after deposit in United States post
office facilities properly addressed with postage prepaid. All notices to a party will be sent to the addresses set forth below or to such other address or person as such party may designate by notice to each other party hereunder: 
  

					
	TO PARENT:	  	 ZOLL Medical Corporation
 269 Mill
Road
 Chelmsford, MA 01824
 Fax: (978) 421-0026
 Attn: Chief Executive Officer
	  	 
			
	With a copy to:	  	 Goodwin Procter LLP
 Exchange
Place
 Boston, MA 02109
 Fax: (617) 523-1231
 Attn: Raymond C. Zemlin, P.C.
	  	 
			
	TO MERGERSUB:	  	 Rev Acquisition Corporation
 c/o ZOLL Medical
Corporation
 269 Mill Road
 Chelmsford, MA 01824
 Fax: (978) 421-0026
 Attn: Chief Executive Officer
	  	 
			
	With a copy to:	  	 Goodwin Procter LLP
 Exchange
Place
 Boston, MA 02109
 Fax: (617) 523-1231
 Attn: Raymond C. Zemlin, P.C.
	  	 
			
	TO COMPANY:	  	 Revivant Corporation
 775 Palomar Avenue
 Sunnyvale, CA 94085
 Attn: Chief Executive Officer
	  	 
			
	With a copy to:	  	 Venture Law Group
 2775 Sand Hill Road
 Menlo Park, CA 94025
 Fax: (650) 233-8386
 Attn: Mark B. Weeks, Esq.
	  	 

  

 34 

 TO THE STOCKHOLDER’S REPRESENTATIVE: 
  
 Any notice given hereunder may be given on behalf of any party by his counsel or other
authorized representatives. 
  
 14.4 Entire Agreement. This
Agreement, including the Schedules and Exhibits referred to herein, the Related Agreements, and the other writings specifically identified herein or contemplated hereby, is complete, reflects the entire agreement of the parties with respect to its
subject matter, and supersedes all previous written or oral negotiations, commitments and writings. No promises, representations, understandings, warranties and agreements have been made by any of the parties hereto except as referred to herein or
in such Schedules and Exhibits or in such other writings; and all inducements to the making of this Agreement relied upon by either party hereto have been expressed herein or in such Schedules or Exhibits or in such other writings. 
  
 14.5 Assignability; Binding Effect. This Agreement shall only be
assignable by the Parent to a corporation or partnership controlling, controlled by or under common control with the Parent upon written notice to the Company and the Stockholders’ Representative. This Agreement may not be assigned by the
Stockholders or the Company without the prior written consent of the Parent. This Agreement shall be binding upon and enforceable by, and shall inure to the benefit of, the parties hereto and their respective successors and permitted assigns,
including any purchaser of stock from any Stockholder. 
  
 14.6
Captions and Gender. The captions in this Agreement are for convenience only and shall not affect the construction or interpretation of any term or provision hereof. The use in this Agreement of the masculine pronoun in reference to a party
hereto shall be deemed to include the feminine or neuter, as the context may require. 
  
 14.7 Execution in Counterparts. For the convenience of the parties and to facilitate execution, this Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of
which shall constitute one and the same document. 
  
 14.8
Amendments. This Agreement may not be amended or modified, nor may compliance with any condition or covenant set forth herein be waived, except by a writing duly and validly executed by the Company, the Parent and MergerSub and, to the extent
the rights and obligations of the Stockholders are affected by such amendment, a majority in interest of the persons serving as Stockholders’ Representative, or in the case of a waiver, the party waiving compliance. 
  
 14.9 Publicity and Disclosures. Except as may be required by law, or
the rules and regulations of the SEC or any Nasdaq listing requirement, no press releases or public disclosure, either written or oral, of the transactions contemplated by this Agreement, shall be made by a party to this Agreement without the prior
knowledge and written consent of the Parent and the Company. 
  

 35 

 14.10 Dispute Resolution. 
  
 (a) Except as set forth in Section 4.1(c)(v) and Section 11.3, all disputes, claims, or controversies
arising out of or relating to this Agreement or any other agreement executed and delivered pursuant to this Agreement or the negotiation, validity or performance hereof and thereof or the transactions contemplated hereby and thereby that are not
resolved by mutual agreement shall be resolved by J.A.M.S./Endispute, Inc. before a single arbitrator in Chicago, Illinois. Such arbitration shall be conducted in accordance with the rules and regulations promulgated by J.A.M.S./Endispute, Inc.
unless specifically modified herein. In the event J.A.M.S./Endispute, Inc. is unavailable, the arbitration shall be conducted before an arbitrator that is mutually agreeable to the parties and, in such event, all references to J.A.M.S./Endispute
herein shall apply to the arbitrator chosen by the parties. The arbitrator hearing any dispute under this Section 14.10 shall be selected within 20 business days of written notice of the intent to arbitrate a dispute. 
  
 The parties shall have the right to discovery in accordance with California
Code of Civil Procedure Section 1283.05. The parties covenant and agree that they will participate in the arbitration in good faith and that they will share equally its costs, except as otherwise provided herein. Any party refusing to comply with an
order of the arbitrators shall be liable for costs and expenses, including attorneys’ fees, incurred by the other party in enforcing the award. This Section 14.10 applies equally to requests for temporary, preliminary or permanent injunctive
relief, except that in the case of temporary or preliminary injunctive relief any party may proceed in court without prior arbitration for the limited purpose of avoiding immediate and irreparable harm. The provisions of this Section 14.10 shall be
enforceable in any court of competent jurisdiction. 
  
 The
parties shall bear their own attorneys’ fees, costs and expenses in connection with the arbitration; provided, however, that the prevailing party shall be entitled to, and the arbitrator shall award to the prevailing party, its
attorneys fees, costs and expenses in the event such party completely prevails or prevails in all material respects in the arbitration. 
  
 (b) Each of the parties hereto irrevocably and unconditionally consents to the exclusive jurisdiction of J.A.M.S./Endispute, Inc. to
resolve all disputes, claims or controversies arising out of or relating to this Agreement or any other agreement executed and delivered pursuant to this Agreement or the negotiation, validity or performance hereof and thereof or the transactions
contemplated hereby and thereby and further consents to the jurisdiction of the courts of Illinois for the purposes of enforcing the arbitration provisions of Section 14.10(a) of this Agreement. Each party further irrevocably waives any objection to
proceeding before J.A.M.S./Endispute, Inc. based upon lack of personal jurisdiction or to the laying of venue and further irrevocably and unconditionally waives and agrees not to make a claim in any court that arbitration before J.A.M.S./Endispute,
Inc. has been brought in an inconvenient forum. Each of the parties hereto hereby consents to service of process by registered mail at the address to which notices are to be given. Each of the parties hereto agrees that its or his submission to
jurisdiction and its or his consent to service of process by mail is made for the express benefit of the other parties hereto. 
  

 36 

 14.11 Specific Performance. The parties agree that it would be difficult to measure damages which
might result from a breach of this Agreement by the Company and that money damages would be an inadequate remedy for such a breach. Accordingly, if there is a breach or proposed breach of any provision of this Agreement by the Company, the Parent
shall be entitled, in addition to any other remedies which it may have, to an injunction or other appropriate equitable relief to restrain such breach without having to show or prove actual damage to the Parent. 
  
 14.12 Reportable Transactions. Notwithstanding anything herein or any
other express or implied agreement, arrangement or understanding to the contrary, the parties acknowledge and agree that (i) any obligations of confidentiality contained herein and therein do not apply and have not applied from the commencement of
discussions between the parties to the tax treatment and tax structure of the transactions contemplated by this Agreement (and any related transactions or agreements) and (ii) each party to this Agreement (and each of its employees, representatives
or other agents) may disclose to any and all persons, without limitation of any kind, the tax treatment and tax structure of the transactions contemplated by this Agreement and all materials of any kind (including opinions or other tax analyses)
that are provided to it relating to such tax treatment and tax structure. This authorization to disclose the tax treatment and tax structure is limited to the extent that confidentiality is required to comply with any applicable securities laws.

  
 *remainder of page has intentionally been left blank*

  

 37 

 [MERGER AGREEMENT SIGNATURE PAGE] 
  
 IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed as of the date set forth above by their duly
authorized representatives. By their signatures below, each person signing this Agreement affirms or acknowledges, under penalty of perjury, that this Agreement is such person’s act and deed or such corporation’s act and deed, as the case
may be, and that the facts stated herein are true. 
  

					
	ZOLL MEDICAL CORPORATION:
		
	By:	 	/s/    RICHARD A. PACKER
	 	 	 Name:
	 	Richard A. Packer
	 	 	Title:	 	Chief Executive Officer and President

  

					
	 REV ACQUISITION CORPORATION:

		
	By:	 	/s/    RICHARD A. PACKER
	 	 	 Name:
	 	Richard A. Packer
	 	 	 Title:
	 	President

  

					
	REVIVANT CORPORATION:
		
	By:	 	/s/    KENNETH LUDLUM
	 	 	 Name:
	 	Kenneth E. Ludlum
	 	 	 Title:
	 	President and Chief Executive Officer

  

 [MERGER AGREEMENT SIGNATURE PAGE] 
  

			
	 STOCKHOLDERS’ REPRESENTATIVE:

		
	By:	 	/s/    BRENT AHERNS        
	 	 	Brent Aherns

  

					
		
	By:	 	/s/    TIM
HOWE        
	 	 	Tim Howe

  

					
		
	By:	 	/s/    WILF
JAEGER        
	 	 	Wilf Jaeger

  

					
		
	By:	 	/s/    KENNETH
LUDLUM        
	 	 	Kenneth Ludlum

  

 AMENDMENT TO AGREEMENT AND PLAN OF MERGER 
  
 This Amendment to Agreement and Plan of Merger is entered into as of June 29,
2004 by and among ZOLL Medical Corporation, a Massachusetts corporation (the “Parent”), Rev Acquisition Corporation, a Delaware corporation and a wholly-owned subsidiary of the Parent (“MergerSub” and together with
the Parent, “ZOLL”), Revivant Corporation, a Delaware corporation (the “Company”), and Brent Ahrens, Tim Howe, Wilf Jaeger and Kenneth Ludlum (collectively the “Stockholders’ Representatives”).

  
 WHEREAS, the Parent, MergerSub, Company and Stockholders’
Representatives are parties to that certain Agreement and Plan of Merger dated August 13, 2003 (the “Merger Agreement”); 
  
 WHEREAS, the Merger Agreement provides for the payment of consideration to holders of the Company’s Series G, Series F, Series E, Series D, Series C,
Series B and Series A Preferred Stock, in amounts and upon the terms and conditions set forth therein; 
  
 WHEREAS, the Company has created a new class of Preferred Stock named Series E-2 Preferred Stock, which ranks junior to the Company’s Series G
Preferred Stock and Series F Preferred Stock, but senior to the Company’s Series E Preferred Stock, with respect to liquidation preferences, including payments pursuant to the Merger Agreement; and 
  
 WHEREAS, Zoll, the Company and the Stockholders’ Representatives desire
to amend the Merger Agreement to accommodate the Series E-2 Preferred Stock. 
  
 NOW, THEREFORE, based upon the above premises and in consideration of the mutual representations, warranties, covenants and agreements set forth herein, the parties hereby agree as follows: 
  
 1. The first paragraph of Section 4.1 and Section 4.1(a) of the Merger Agreement are amended
and restated in their entirety as follows: 
  
 “4.1 Share and Cash
Consideration for the Merger; Conversion or Cancellation of Shares in the Merger. The manner of receiving cash in the Merger, and the manner of converting or canceling shares of the Company in the Merger, shall be as set forth in this Section 4.
By virtue of the Merger, and without any further action on the part of any party hereto or holder thereof, all issued and outstanding shares of the Company’s capital stock (other than (i) any Company Shares (as defined below) to be cancelled
pursuant to Section 4.1(e) (including all shares of Series F Preferred Stock, par value $0.001 per share, of the Company issued and outstanding as of the Effective Time (the “Series F Shares”), all Series E Shares or Series E-2
Shares (as defined below) purchased by the Parent or any direct or indirect wholly-owned subsidiary of the Parent, if any, pursuant to the co-funding provisions of Section 3.6 of that certain Master Agreement by and among the Parent, MergerSub and
the Company (the “Master Agreement”), and Company Common Shares (as defined below) issued upon conversion of such shares (collectively, the “ZOLL Non-Converted Shares”)) and (ii) any Dissenting Shares (as defined
below) shall be cancelled and retired as of the Effective Time and converted solely into the right to receive in the aggregate the Initial Merger Consideration (as defined in Section 4.1(a)), the 

  

 
Contingent Clinical Milestone Consideration (as defined in Section 4.1(b)), and the Contingent Revenue Milestone Consideration (as defined in Section
4.1(c)). The Initial Merger Consideration, the Contingent Clinical Milestone Consideration and the Contingent Revenue Milestone Consideration, are hereinafter collectively referred to as the “Merger Consideration.” 
  
 (a) Initial Merger Consideration. The aggregate initial merger consideration shall
consist of (x) Seven Million Five Hundred Thousand and 00/100 Dollars ($7,500,000) in cash (the “Initial Cash Consideration”) and (y) that number of shares of common stock, par value $0.02 per share, of the Parent (the
“Parent Common Stock”) equal to Seven Million Five Hundred Thousand and 00/100 Dollars ($7,500,000) divided by the Closing Exchange Price of the Parent Common Stock (the “Initial Parent Stock Consideration,” and
together with the Initial Cash Consideration, the “Initial Merger Consideration”). As used herein, the term “Closing Exchange Price” shall mean the mean average of the closing prices of a share of Parent Common
Stock for the sixty (60) trading days ending on the business day that is three (3) business days immediately prior to the Closing Date, as reported on the Nasdaq National Market. The Initial Merger Consideration shall be allocated among and payable
to the holders of the Preferred Shares (as defined in Section 4.1(e) below) and the holders of the Company Common Shares (as defined in Section 4.1(a)(v) below) as follows: 
  
 (i) First, that portion of the Initial Merger Consideration equal to the Stockholders’ Obligations (as defined below)
then outstanding shall be paid to, or at the direction of, the Stockholders’ Representative solely to be used to satisfy in full said Stockholders’ Obligations. As used herein, the term “Stockholders’ Obligations”
shall mean the following liabilities, obligations and responsibilities of the Stockholders: 1) all obligations under the Company’s 2003 Executive Retention Program (the “Executive Retention Program”), 2) all obligations under
the Company’s 2003 Employee Retention Program (the “Employee Retention Program,” and together with the Executive Retention Program, the “Retention Programs”), 3) all obligations accruing after the Closing with
respect to any severance obligations entered into prior to the Closing; provided, however, that any severance obligation that becomes payable after the Closing due to actions taken after the Closing by the Surviving Corporation shall not be deemed
part of the Stockholders’ Obligations, 4) all fees and expenses whenever accruing, payable to SG Cowen under the engagement letters between the Company and SG Cowen dated January 23, 2003 and February 25, 2003, as amended from time to time, 5)
all payments and expenses, including indemnification payment, related to the bonus agreement between the Company and Kenneth Ludlum dated July 25, 2003, other than the compensation expenses set forth in Section 2 thereof, 6) all fees and expenses
payable by the Stockholders pursuant to this Agreement or the other agreements entered into in connection herewith, including the expenses of the Stockholders’ Representative and 7) all legal fees and expenses of the Company or ZOLL in
connection with the preparation and execution of this Amendment, the Amended and Restated Certificate of Incorporation of the Company and the related documents or agreements and the consummation of the transactions contemplated thereby. The payment
of the amount of said Stockholders’ Obligations then outstanding (the “Initial Stockholders’ Obligations Amount”) shall be made as follows: (x) a cash payment equal to the lesser of (A) the Initial Stockholders’
Obligations Amount and (B) the total Initial Cash Consideration, 

  

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and (y) that number of shares of Parent Common Stock equal to any portion of the Initial Stockholders’ Obligations Amount not paid in cash under Section
4.1(a)(i)(x), divided by the Closing Exchange Price. Notwithstanding the foregoing, at the sole discretion of the Stockholders’ Representative, any portion of the cash payment provided for in Section 4.1(a)(i)(x) may, in lieu of being paid in
cash, be paid in shares of Parent Common Stock as provided in Section 4.1(a)(i)(y). The Stockholders’ Representative shall provide Parent a list showing each stockholder, their address, their taxpayer identification or social security number,
as applicable, and the number of shares of Parent Common Stock to be issued to such person or entity at least 10 days prior to the issuance of any Parent Common Stock hereunder. 
  
 (ii) Second, shares of Series G Preferred Stock, par value $0.001 per share, of the Company issued and outstanding at the
Effective Time (the “Series G Shares”) (whether held by Parent or another party) shall, by virtue of the Merger, be entitled to receive in the aggregate (x) that portion of the Initial Cash Consideration equal to the lesser of (A)
one-half of the aggregate Series G Liquidation Amount (as defined in the Company’s Amended and Restated Certificate of Incorporation (the “Company’s Charter”)) attributable to the Series G Shares (the “Series G
Liquidation Preference”) or (B) the total Initial Cash Consideration less that amount of the Initial Cash Consideration payable under Section 4.1(a)(i)(x), plus (y) that number of shares of the Initial Parent Stock Consideration equal to
the lesser of (A) the amount by which the Initial Cash Consideration payable under Section 4.1(a)(ii)(x) is less than the amount which is one-half of the Series G Liquidation Preference, plus one-half of the Series G Liquidation Preference, such sum
divided by the Closing Exchange Price or (B) the total number of shares constituting the Initial Parent Stock Consideration less that number of shares of Initial Parent Stock Consideration payable under Section 4.1(a)(i)(y). Each Series G Share will
be entitled to receive that portion of the total Initial Cash Consideration and Initial Parent Stock Consideration attributable to the Series G Shares in the aggregate, divided by the number of Series G Shares outstanding at the Effective Time. The
amount of Initial Merger Consideration to be received by each holder of Series G Shares shall be rounded up or down to the nearest cent or whole share, as the case may be, after aggregating all of the Initial Cash Consideration and the Initial Stock
Consideration, as applicable, to be received by the holder of such Series G Shares pursuant to this Section 4.1(a)(ii). 
  
 (iii) Third, shares of Series E-2 Preferred Stock, par value $0.001 per share, of the Company issued and outstanding at the Effective Time (the
“Series E-2 Shares”) (other than Series E-2 Shares purchased by the Parent or any direct or indirect wholly-owned subsidiary of the Parent, if any, whether or not transferred) (the “Non-ZOLL Series E-2 Shares”)
shall, by virtue of the Merger, be entitled to receive in the aggregate (x) that portion of the Initial Cash Consideration equal to the lesser of (A) one-half of the aggregate Series E-2 Liquidation Amount (as defined in the Company’s Charter)
attributable to the Non-ZOLL Series E-2 Shares (the “Non-ZOLL Series E-2 Section 2(a) Liquidation Preference”) or (B) the total Initial Cash Consideration less that amount of the Initial Cash Consideration payable under Sections
4.1(a)(i)(x) and 4.1(a)(ii)(x), plus (y) that number of shares of the Initial Parent Stock Consideration equal to the lesser of (A) the amount by which the Initial Cash Consideration payable 

  

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under Section 4.1(a)(iii)(x) is less than the amount which is one-half of the Non-ZOLL Series E-2 Liquidation Preference, plus one-half of the Non-ZOLL
Series E-2 Section 2(a) Liquidation Preference, such sum divided by the Closing Exchange Price or (B) the total number of shares constituting the Initial Parent Stock Consideration less that number of shares of Initial Parent Stock Consideration
payable under Sections 4.1(a)(i)(y) and 4.1(a)(ii)(y). Each Non-ZOLL Series E-2 Share will be entitled to receive that portion of the total Initial Cash Consideration and Initial Parent Stock Consideration attributable to the Non-ZOLL Series E-2
Shares in the aggregate, divided by the number of Non-ZOLL Series E-2 Shares outstanding at the Effective Time. The amount of Initial Merger Consideration to be received by each holder of Non-ZOLL Series E-2 Shares shall be rounded up or down to the
nearest cent or whole share, as the case may be, after aggregating all of the Initial Cash Consideration and the Initial Stock Consideration as applicable, to be received by the holder of such Non-ZOLL Series E-2 Shares pursuant to this Section
4.1(a)(iii). 
  
 (iv) Fourth, shares of Series E Preferred Stock,
par value $0.001 per share, of the Company issued and outstanding at the Effective Time (the “Series E Shares”) (other than Series E Shares purchased by the Parent or any direct or indirect wholly-owned subsidiary of the Parent, if
any, whether or not transferred) (the “Non-ZOLL Series E Shares”) shall, by virtue of the Merger, be entitled to receive in the aggregate (x) that portion of the Initial Cash Consideration equal to the lesser of (A) one-half of the
aggregate Series E Liquidation Amount (as defined in the Company’s Charter) attributable to the Non-ZOLL Series E Shares (the “Non-ZOLL Series E Section 2(a) Liquidation Preference”) or (B) the total Initial Cash Consideration
less that amount of the Initial Cash Consideration payable under Sections 4.1(a)(i)(x), 4.1(a)(ii)(x) and 4.1(a)(iii)(x), plus (y) that number of shares of the Initial Parent Stock Consideration equal to the lesser of (A) the amount by which the
Initial Cash Consideration payable under Section 4.1(a)(iv)(x) is less than the amount which is one-half of the Non-ZOLL Series E Liquidation Preference, plus one-half of the Non-ZOLL Series E Section 2(a) Liquidation Preference, such sum divided by
the Closing Exchange Price or (B) the total number of shares constituting the Initial Parent Stock Consideration less that number of shares of Initial Parent Stock Consideration payable under Sections 4.1(a)(i)(y), 4.1(a)(ii)(y) and 4.1(a)(iii)(y).
Each Non-ZOLL Series E Share will be entitled to receive that portion of the total Initial Cash Consideration and Initial Parent Stock Consideration attributable to the Non-ZOLL Series E Shares in the aggregate, divided by the number of Non-ZOLL
Series E Shares outstanding at the Effective Time. The amount of Initial Merger Consideration to be received by each holder of Non-ZOLL Series E Shares shall be rounded up or down to the nearest cent or whole share, as the case may be, after
aggregating all of the Initial Cash Consideration and the Initial Stock Consideration as applicable, to be received by the holder of such Non-ZOLL Series E Shares pursuant to this Section 4.1(a)(iv). 
  
 (v) Fifth, shares of the Series A Preferred Stock, par value $0.001 per
share, of the Company issued and outstanding at the Effective Time (the “Series A Shares”), the Series B Preferred Stock, par value $0.001 per share, of the Company issued and outstanding at the Effective Time (the “Series B
Shares”), the Series C Preferred Stock, par value $0.001 per share, of the Company issued and outstanding at the Effective Time 

  

 -4- 

 
(the “Series C Shares”) and the Series D Preferred Stock, par value $0.001 per share, of the Company issued and outstanding at the Effective
Time (the “Series D Shares,” and together with the Series A Shares, the Series B Shares and the Series C Shares, the “Series A-D Shares”) shall, by virtue of the Merger, be entitled to receive in the aggregate (x)
that portion of the Initial Cash Consideration equal to the lesser of (A) one-half of the sum of the aggregate Series A liquidation amount plus the aggregate Series B liquidation amount plus the aggregate Series C liquidation amount plus the
aggregate Series D liquidation amount (in each case, as specified in Section 2(a) of the Company’s Charter) attributable to the Series A-D Shares (the “Series A-D Section 2(a) Liquidation Preference”) or (B) the total Initial
Cash Consideration less that amount of the Initial Cash Consideration payable under Sections 4.1(a)(i)(x), 4.1(a)(ii)(x), 4.1(a)(iii) and 4.1(a)(iv)(x), plus (y) that number of shares of the Initial Parent Stock Consideration equal to the lesser of
(A) the amount by which the Initial Cash Consideration payable under Section 4.1(a)(v)(x) is less than the amount which is one-half of the Series A-D Section 2(a) Liquidation Preference, plus one-half of the Series A-D Section 2(a) Liquidation
Preference, such sum divided by the Closing Exchange Price or (B) the total number of shares constituting the Initial Parent Stock Consideration less that number of shares of Initial Parent Stock Consideration payable under Sections 4.1(a)(i)(y),
4.1(a)(ii)(y), 4.1(a)(iii)(y) and 4.1(a)(iv)(y). The aggregate amount of the Initial Cash Consideration and Initial Parent Stock Consideration payable pursuant to this Section 4.1(a)(v) shall be distributed ratably among the holders of the Series A
Shares, the Series B Shares, the Series C Shares and the Series D Shares in proportion to the aggregate preferential amounts owed such holders in accordance with Section 2(a) of the Company’s Charter. Each Series A-D Share will be entitled to
receive that portion of the total Initial Cash Consideration and Initial Parent Stock Consideration attributable to its respective series of Preferred Shares in the aggregate, divided by the number of shares of its respective series of Preferred
Shares outstanding at the Effective Time. The amount of Initial Merger Consideration to be received by each holder of Series A-D Shares shall be rounded up or down to the nearest cent or whole share, as the case may be, after aggregating all of the
Initial Cash Consideration and the Initial Stock Consideration as applicable, to be received by the holder of such Series A-D Shares pursuant to this Section 4.1(a)(v). 
  
 (vi) Sixth, the Series D Shares, the Non-Zoll Series E-2 Shares, Non-ZOLL Series E Shares and the shares of Common Stock,
par value $0.001 per share, of the Company issued and outstanding at the Effective Time (the “Company Common Shares”) other than Company Common Shares purchased by the Parent or any direct or indirect wholly-owned subsidiary of the
Parent, if any, whether or not transferred, as a result of conversion of Series E Shares, Series E-2 Shares or Series F Shares (the “Non-ZOLL Common Shares”) shall, by virtue of the Merger, be entitled to receive in the aggregate
all remaining portions of the Initial Merger Consideration; provided, however, that the amount of the Initial Cash Consideration and the Initial Parent Stock Consideration payable pursuant to this Section 4.1(a)(vi) shall be distributed among the
holders of Series D Shares, Non-ZOLL Series E Shares, Non-ZOLL Series E-2 Shares and Non-ZOLL Common Shares pro rata based on the number of Non-ZOLL Common Shares held by each (assuming conversion of all such Series D Shares, Non-ZOLL Series E
Shares and Non-ZOLL Series E-2 Shares into Non-ZOLL Common Shares in accordance 

  

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with the Company’s Charter); provided, further, however, that the holders of Series D Shares, Non-ZOLL Series E Shares or Non-ZOLL Series E-2 Shares
shall cease receiving any payments pursuant to this Section 4.1(a)(vi) once each Series D Share, Non-ZOLL Series E Share and Non-ZOLL Series E-2 Share has received aggregate Merger Consideration (whether pursuant to Sections 4.1(a)(iii), 4.1(a)(iv),
4.1(a)(v), 4.1(a)(vi), 4.1(b), 4.1(c) or 4.1(d)) equal to Two Dollars and 70/100 ($2.70) (which shall be determined by valuing any Parent Common Stock received as Merger Consideration at the Closing Exchange Price, regardless of its market value
when actually issued or delivered) (the “Series D-E Additional Preference”), and thereafter, the holders of the Non-ZOLL Common Shares shall receive all remaining portions of the Initial Merger Consideration (which shall be
distributed among the holders of Non-ZOLL Common Shares pro rata based on the number of Non-ZOLL Common Shares held by each). Each Series D Share, Non-ZOLL Series E Share, Non-ZOLL Series E-2 Share and Non-ZOLL Common Share will be entitled to
receive that portion of the Initial Cash Consideration and Initial Parent Stock Consideration attributable to its respective series of Preferred Shares or Non-ZOLL Common Shares, as applicable, in the aggregate, divided by the number of shares of
its respective series of Preferred Shares or Non-ZOLL Common Shares outstanding at the Effective Time. The amount of Initial Merger Consideration to be received by each holder of Preferred Shares or Non-ZOLL Common Shares shall be rounded up or down
to the nearest cent or whole share, as the case may be, after aggregating all of the Initial Cash Consideration and the Initial Stock Consideration as applicable, to be received by the holder of such Preferred Shares or Non-ZOLL Common Shares
pursuant to this Section 4.1(a)(vi). Notwithstanding the foregoing, any holder of Non-ZOLL Common Shares who received under Section 4.1(a)(i) any amount of the Initial Merger Consideration pursuant to either of the Retention Programs (the amount so
received by any such holder being hereinafter referred to as the “Retention Program Amount”) shall not be entitled to receive any portion of the Initial Merger Consideration pursuant to this Section 4.1(a)(vi) unless and to the
extent set forth in the respective Award Agreement issued pursuant to the Retention Programs.” 
  
 2. Section 4.1(d) of the Merger Agreement is amended and restated in its entirety as follows: 
  
 “(d) Allocation of Contingent Merger Consideration. Each payment of Contingent Clinical Milestone Consideration and Contingent Revenue Milestone Consideration
(the cash payment of which is refereed to as the “Cash Contingent Consideration Payment” and the Parent Common Stock payment of which is referred to as the “Stock Contingent Consideration Payment” and each together
a “Contingent Consideration Payment”) shall be allocated among and payable to the Preferred Shares and Company Common Shares as follows: 
  
 (i) First, that portion of the Contingent Consideration Payment equal to the Stockholders’ Obligations then outstanding shall be paid to, or at the
direction of, the Stockholders’ Representative solely to be used to satisfy in full said Stockholders’ Obligations. The payment of the amount of said Stockholders’ Obligations then outstanding (in the case of each Contingent
Consideration Payment, a “Subsequent Stockholders’ Obligations Amount”) shall be made as follows: (x) a payment equal to the lesser of (A) the Subsequent Stockholders’ Obligations Amount and (B) the total 

  

 -6- 

 
Cash Contingent Consideration Payment, and (y) that number of shares of Parent Common Stock equal to the Subsequent Stockholders’ Obligations Amount not
paid in cash under Section 4.1(d)(i)(x), divided by the Closing Exchange Price. 
  
 (ii) Second, until each of the Series G Shares (whether held by Parent or another party) has received total Merger Consideration (which shall be determined by valuing any Parent Common Stock received as Merger
Consideration at the Closing Exchange Price, regardless of its market value when actually issued or delivered) equal to the Series G Liquidation Preference, then the Series G Shares will, by virtue of the Merger, be entitled to receive in the
aggregate (x) that portion of each Cash Contingent Consideration Payment equal to the lesser of (A) the difference between one-half of the aggregate Series G Liquidation Preference less the total amount of Initial Cash Consideration and Cash
Contingent Consideration Payments theretofore received by the holders of Series G Shares or (B) the total Cash Contingent Consideration Payment in question less the portion thereof payable pursuant to Section 4.1(d)(i)(x), plus (y) that number of
shares of the Stock Contingent Consideration Payment equal to the lesser of (A) the amount by which the Cash Contingent Consideration Payment payable under Section 4.1(d)(ii)(x) is less than the amount which is one-half of the Series G Liquidation
Preference, plus the difference determined pursuant to Section 4.1(d)(ii)(x)(A), such sum divided by the Closing Exchange Price or (B) the total Stock Contingent Consideration Payment in question less that number of such shares payable pursuant to
Section 4.1(d)(i)(y). Each Series G Share will be entitled to receive that portion of the Cash Contingent Consideration Payment and Stock Contingent Consideration Payment in question attributable to the Series G Shares in the aggregate, divided by
the number of Series G Shares outstanding at the Effective Time. The amount of each Contingent Consideration Payment to be received by each holder of Series G Shares shall be rounded up or down to the nearest cent or whole share, as the case may be,
after aggregating the portions of the Cash Consideration Payment and Stock Consideration Payment, as applicable, to be received by the holder of such Series G Shares pursuant to this Section 4.1(d)(ii). 
  
 (iii) Third, until each of the Non-ZOLL Series E-2 Shares has received total
Merger Consideration (which shall be determined by valuing any Parent Common Stock received as Merger Consideration at the Closing Exchange Price, regardless of its market value when actually issued or delivered) equal to the Non-ZOLL Series E-2
Liquidation Preference, then the Non-ZOLL Series E-2 Shares will, by virtue of the Merger, be entitled to receive in the aggregate (x) that portion of each Cash Contingent Consideration Payment equal to the lesser of (A) the difference between
one-half of the aggregate Non-ZOLL Series E-2 Section 2(a) Liquidation Preference less the total amount of Initial Cash Consideration and Cash Contingent Consideration Payments theretofore received by the holders of Non-ZOLL Series E-2 Shares or (B)
the total Cash Contingent Consideration Payment in question less the portion thereof payable pursuant to Sections 4.1(d)(i)(x) and 4.1(d)(ii)(x), plus (y) that number of shares of the Stock Contingent Consideration Payment equal to the lesser of (A)
the amount by which the Cash Contingent Consideration Payment payable under Section 4.1(d)(iii)(x) is less than the amount which is one-half the Non-ZOLL Series E-2 Section 2(a) Liquidation Preference, plus the difference determined pursuant to
Section 4.1(d)(iii)(x)(A), such sum divided by the Closing Exchange Price or (B) the total Stock Contingent Consideration 

  

 -7- 

 
Payment in question less that number of such shares payable pursuant to Sections 4.1(d)(i)(y) and 4.1(d)(ii)(y). Each Non-ZOLL Series E-2 Share will be
entitled to receive that portion of the Cash Contingent Consideration Payment and Stock Contingent Consideration Payment in question attributable to the Non-ZOLL Series E-2 Shares in the aggregate, divided by the number of Non-ZOLL Series E-2 Shares
outstanding at the Effective Time. The amount of each Contingent Consideration Payment to be received by each holder of Non-ZOLL Series E-2 Shares shall be rounded up or down to the nearest cent or whole share, as the case may be, after aggregating
the portions of the Cash Consideration Payment and Stock Consideration Payment, as applicable, to be received by the holder of such Non-ZOLL Series E-2 Shares pursuant to this Section 4.1(d)(iii). 
  
 (iv) Fourth, until each of the Non-ZOLL Series E Shares has received total
Merger Consideration (which shall be determined by valuing any Parent Common Stock received as Merger Consideration at the Closing Exchange Price, regardless of its market value when actually issued or delivered) equal to the Non-ZOLL Series E
Liquidation Preference, then the Non-ZOLL Series E Shares will, by virtue of the Merger, be entitled to receive in the aggregate (x) that portion of each Cash Contingent Consideration Payment equal to the lesser of (A) the difference between
one-half of the aggregate Non-ZOLL Series E Section 2(a) Liquidation Preference less the total amount of Initial Cash Consideration and Cash Contingent Consideration Payments theretofore received by the holders of Non-ZOLL Series E Shares or (B) the
total Cash Contingent Consideration Payment in question less the portion thereof payable pursuant to Sections 4.1(d)(i)(x), 4.1(d)(ii)(x) and 4.1(d)(iii)(x), plus (y) that number of shares of the Stock Contingent Consideration Payment equal to the
lesser of (A) the amount by which the Cash Contingent Consideration Payment payable under Section 4.1(d)(iv)(x) is less than the amount which is one-half the Non-ZOLL Series E Section 2(a) Liquidation Preference, plus the difference determined
pursuant to Section 4.1(d)(iv)(x)(A), such sum divided by the Closing Exchange Price or (B) the total Stock Contingent Consideration Payment in question less that number of such shares payable pursuant to Sections 4.1(d)(i)(y), 4.1(d)(ii)(y) and
4.1(d)(iii)(y). Each Non-ZOLL Series E Share will be entitled to receive that portion of the Cash Contingent Consideration Payment and Stock Contingent Consideration Payment in question attributable to the Non-ZOLL Series E Shares in the aggregate,
divided by the number of Non-ZOLL Series E Shares outstanding at the Effective Time. The amount of each Contingent Consideration Payment to be received by each holder of Non-ZOLL Series E Shares shall be rounded up or down to the nearest cent or
whole share, as the case may be, after aggregating the portions of the Cash Consideration Payment and Stock Consideration Payment, as applicable, to be received by the holder of such Non-ZOLL Series E Shares pursuant to this Section 4.1(d)(iv).

  
 (v) Fifth, until each of the Series A-D Shares has received
total Merger Consideration (which shall be determined by valuing any Parent Common Stock received as Merger Consideration at the Closing Exchange Price, regardless of its market value when actually issued or delivered) equal to the applicable Series
A-D Section 2(a) Liquidation Preference, then the Series A-D Shares will, by virtue of the Merger, be entitled to receive in the aggregate (x) that portion of each Cash Contingent Consideration Payment equal to the lesser of (A) the difference
between one-half of the aggregate Series A-D Section 2(a) Liquidation Preference less the total amount of Initial Cash Consideration 

  

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and Cash Contingent Consideration Payments theretofore received by the holders of the Series A-D Shares or (B) the total Cash Contingent Consideration
Payment in question less the portion thereof payable pursuant to Sections 4.1(d)(i)(x), 4.1(d)(ii)(x), 4.1(d)(iii) and 4.1(d)(iv)(x), plus (y) that number of shares of the Stock Contingent Consideration Payment equal to the lesser of (A) the amount
by which the Cash Contingent Consideration Payment payable under Section 4.1(d)(v)(x) is less than the amount which is one-half the Series A-D Section 2(a) Liquidation Preference, plus the difference determined pursuant to Section 4.1(d)(v)(x)(A),
such sum divided by the Closing Exchange Price or (B) the total Stock Contingent Consideration Payment in question less that number of such shares payable pursuant to Sections 4.1(d)(i)(y), 4.1(d)(ii)(y), 4.1(d)(iii)(y) and 4.1(d)(iv)(y). The
aggregate amount of the Cash Contingent Consideration Payment and the Stock Contingent Consideration Payment payable pursuant to this Section 4.1(d)(v) shall be distributed ratably among the holders of the Series A Shares, the Series B Shares, the
Series C Shares and the Series D Shares in proportion to the aggregate preferential amounts owed such holders in accordance with Section 2(a) of the Company’s Charter. Each Series A-D Share will be entitled to receive that portion of the Cash
Contingent Consideration Payment and Stock Contingent Consideration Payment in question attributable to its respective series of Preferred Shares in the aggregate, divided by the number of shares of its respective series of Preferred Shares
outstanding at the Effective Time. The amount of each Contingent Consideration Payment to be received by each holder of Series A-D Shares shall be rounded up or down to the nearest cent or whole share, as the case may be, after aggregating the
portions of the Cash Consideration Payment and Stock Consideration Payment, as applicable, to be received by the holder of such Series A-D Shares pursuant to this Section 4.1(d)(v). 
  
 (vi) Sixth, the Series D Shares, the Non-ZOLL Series E Shares, the Non-ZOLL Series E-2 Shares and the Non-ZOLL Common Shares
issued and outstanding at the Effective Time shall, by virtue of the Merger, be entitled to receive in the aggregate all remaining portions of the Contingent Consideration Payment; provided, however, that the aggregate amount of the
Cash Contingent Consideration Payment and the Stock Contingent Consideration Payment payable pursuant to this Section 4.1(d)(vi) shall be distributed among the holders of the Series D Shares, the Non-ZOLL Series E Shares, the Non-ZOLL Series E-2
Shares and the Non-ZOLL Common Shares pro rata based on the number of Non-ZOLL Common Shares held by each (assuming conversion of all such Series D Shares, Non-ZOLL Series E Shares and Non-ZOLL Series E-2 Shares into Non-ZOLL Common Shares in
accordance with the Company’s Charter); provided, further, however, that the holders of the Series D Shares, Non-ZOLL Series E Shares or Non-ZOLL Series E-2 Shares shall cease receiving any payments pursuant to this Section
4.1(d)(vi) once each Series D Share, Non-ZOLL Series E Share and Non-ZOLL Series E-2 Share has received total Merger Consideration (which shall be determined by valuing any Parent Common Stock received as Merger Consideration at the Closing Exchange
Price, regardless of its market value when actually issued or delivered) equal to the Series D-E Additional Preference, and thereafter, the holders of the Non-ZOLL Common Shares shall receive all remaining portions of the Contingent Consideration
Payment (which shall be distributed among the holders of the Non-ZOLL Common Shares pro rata based on the number of Non-ZOLL Common Shares held by each). Each Series D Share, Non-ZOLL Series E Share, Non-Zoll Series E-2 Share and Non-ZOLL Common
Share will be 

  

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entitled to receive that portion of the Cash Contingent Consideration Payment and Stock Contingent Consideration Payment in question attributable to its
respective series of Preferred Shares and Non-ZOLL Common Shares, as applicable, in the aggregate, divided by the number of shares of its respective series of Preferred Shares and Non-ZOLL Common Shares, as applicable, outstanding at the Effective
Time. The amount of each Contingent Consideration Payment to be received by each holder of Preferred Shares or Non-ZOLL Common Shares shall be rounded up or down to the nearest cent or whole share, as the case may be, after aggregating the portions
of the Cash Consideration Payment and Stock Consideration Payment, as applicable, to be received by the holder of such Preferred Shares or Non-ZOLL Common Shares pursuant to this Section 4.1(d)(vi). Notwithstanding the foregoing, any holder of
Non-ZOLL Common Shares who received under Section 4.1(a)(i) or 4.1(d)(i) any Retention Program Amount shall not be entitled to receive any portion of the applicable Contingent Merger Consideration pursuant to this Section 4.1(d)(vi) unless and to
the extent set forth in the respective Award Agreement issued pursuant to the Retention Programs.” 
  
 3. Section 4.1(e) of the Merger Agreement is amended and restated in its entirety as follows: 
  
 “Company Share Cancellation and Conversion. The Series G Shares, Series F Shares, Series E-2 Shares, Series E Shares, Series D Shares, Series
C Shares, Series B Shares and Series A Shares, are hereinafter collectively referred to as the “Preferred Shares,” and together with the Company Common Shares are hereinafter collectively referred to as the “Company
Shares.” Each Company Share that is directly owned by the Parent or the Company or any direct or indirect wholly-owned subsidiary of the Parent or the Company, if any, or held in the treasury of the Company shall by virtue of the Merger be
automatically canceled and retired and shall cease to exist and no consideration shall be delivered or deliverable in exchange therefore; provided, however, that any Series G Share that is owned by the Parent or any direct or indirect
wholly-owned subsidiary of the Parent will be converted into the right to receive a portion of the Merger Consideration pursuant to this Section 4.1. Neither the Parent nor any direct or indirect wholly-owned subsidiary of the Parent owns any
Company Shares other than (i) the Series F Shares and (ii) the Series E Shares, Series E-2 Shares and Series G Shares which may be purchased pursuant to the co-funding provisions of the Master Agreement.” 
  
 4. The parties acknowledge that Schedule 4.1(g) has not been updated to reflect the changes
set forth in this Amendment. 
  
 5. The provisions of Section 14 of the Merger
Agreement are incorporated herein. Except as expressly set forth herein, the Merger Agreement remains in full force and effect. 
  
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 [MERGER AGREEMENT AMENDMENT SIGNATURE PAGE] 
  
 IN WITNESS WHEREOF the parties hereto have caused this Amendment to be executed as of the date set forth above by their duly
authorized representatives. By their signatures below, each person signing this Amendment affirms or acknowledges, under penalty of perjury, that this Amendment is such person’s act and deed or such corporation’s act and deed, as the case
may be, and that the facts stated herein are true. 
  

					
	 ZOLL MEDICAL CORPORATION:

		
	By:	 	/S/    JOHN P. BERGERON
	 	 	 Name:
	 	John P. Bergeron
	 	 	 Title:
	 	Vice President and Treasurer

					
	
	 REV ACQUISITION CORPORATION:

		
	By:	 	/S/    RICHARD A. PACKER
	 	 	 Name:
	 	Richard A. Packer
	 	 	 Title:
	 	President

					
	
	 REVIVANT CORPORATION:

		
	By:	 	/S/    KENNETH LUDLUM
	 	 	 Name:
	 	Kenneth E. Ludlum
	 	 	 Title:
	 	 Chairman, President and
 Chief Executive Officer

  

 [MERGER AGREEMENT AMENDMENT SIGNATURE PAGE] 
  

			
	 STOCKHOLDERS’ REPRESENTATIVES:

		
	By:	 	/s/    BRENT AHERNS        
	 	 	Brent Aherns
		
	By:	 	/s/    TIM HOWE        
	 	 	Tim Howe
		
	By:	 	/s/    WILF JAEGER        
	 	 	Wilf Jaeger
		
	By:	 	/s/    KENNETH LUDLUM        
	 	 	Kenneth LudlumLease Agreement

 Exhibit 10.1 
 LEASE 
  
 THIS LEASE
(“Lease”), dated the 1st day of October, 2004, is by and between LOWRIE MANAGEMENT LLLP, a Colorado
limited liability limited partnership (“Landlord”) and GLENDALE RESTAURANT CONCEPTS LP, a Colorado limited partnership (“Tenant”). 
  
 1. DEFINITIONS. Unless otherwise indicated, capitalized terms used in this Lease shall have the meanings set forth below: 
  
 (a) “Additional Rent” shall mean all charges payable by
Tenant under this Lease other than Minimum Rent. 
  
 (b)
“Building” shall mean the building in which the Premises are located. 
  
 (c) “Operating Costs” shall mean all costs incurred to insure, maintain, repair and replace (except with respect to Paragraph 6(c)) all elements of the Premises. Operating Costs include, but are not
limited to, costs and expenses for the following: maintenance and repair and replacement (as necessary) of all structural and mechanical components of the Building including, but not limited to, exterior and interior walls, the roof, foundation and
all components of the parking lots, driveways and sidewalks surrounding the Building and located on the Premises (but not including costs incurred by Landlord in performing its obligations under Paragraphs 6(a) and 24); gardening and landscaping;
utilities, water and storm sewer charges; maintenance of signs; fire alarm monitoring service; premiums for liability, property damage, fire and other types of insurance on the Premises and worker’s compensation insurance; all Real Property
Taxes (as defined below); all personal property taxes levied on or attributable to Tenant’s personal property used in connection with the maintenance and operation of the Premises; fees for required licenses and permits; repairing, resurfacing
by or at the direction of any governmental authority in connection with the use or occupancy of the Premises or the parking facilities included in the Premises; or painting, lighting, cleaning, refuse removal, security, if any, and other related
charges. Operating Costs shall also include any parking charges, utilities surcharges, or other costs levied, assessed or imposed on the Premises pursuant to any covenants, conditions or restrictions to which the Premises are subject. 
  
 (d) “Effective Date” shall mean October 1, 2004. 

 
 (e) “Guarantor” shall mean VCG Holding Corp., a Colorado
corporation. 
  
 (f) “Hazardous Material” shall
mean any hazardous, radioactive or toxic substance, material or waste, including, but not limited to, those substances, materials and wastes (whether or not mixed, commingled or otherwise combined with other substances, materials or wastes) listed
in the United States Department Transportation Hazardous Material Table (49 CFR 172.101) or by the Environmental Protection Agency as hazardous substances (40 CFR Part 302) and amendments thereto, or such substances, materials and wastes which are
or become regulated under any applicable local, state or federal law including, without limitation, any material, waste or substance which is (i) a petroleum product, crude oil or any fraction thereof, (ii) asbestos, (iii) polychlorinated biphenyls,
(iv) designated as a “hazardous substance” pursuant to Section 311 of the Clean Water Act, 33 U.S.C. Section 1251, et seq. (33 U.S.C. Section 1321) 

 or listed pursuant to Section 307 of the Clean Water Act (33 U.S.C Section 1317), (v) defined as a “hazardous
waste” pursuant to Section 1004 of the Resource Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq. (42 U.S.C. Section 6903) or (vi) defined as a “hazardous substance” pursuant to Section 101 of the Comprehensive
Environmental Response, Compensation, and Liability Act, 42 U.S.C. Section 9601, et seq. (42 U.S.C. Section 9601). 
  
 (g) “Premises” shall mean all the land consisting of approximately one-half (1⁄2) an acre and improvements located at 4451 East
Virginia Avenue, Glendale, Arapahoe County, Colorado, and depicted on the Site Plan, attached as Exhibit A, including any parking, driveways, sidewalks, alleyways or other appurtenances thereto. Said Premises shall include the roof, exterior walls
and structural members thereof, together with utility lines, ducting, pipes, and the like to serve adjoining Premises other than those specifically herein demised. 
  
 (h) “Lease Term” shall mean a period of 10 years beginning on the Effective Date, plus any Extended Term
granted by Landlord and timely and properly elected by Tenant pursuant to subparagraph 3(b) below. 
  
 (i) “Lease Year” shall mean a period of twelve consecutive months during the Lease Term which begins on the first day of the first
calendar month after the Effective Date or any anniversary thereof. 
  
 (j) “Minimum Rent” shall mean the base rental for the Premises set forth in subparagraph 4 below. 
  
 (k) “Permitted Use” shall mean the operation of a restaurant and adult cabaret, together with all uses associated with the operation of
an adult entertainment business. 
  
 (l)
“Property” shall mean that certain real property owned by Landlord upon which the Premises are located. 
  
 (m) “Real Property Taxes” shall mean (i) any fee, license fee, license tax, business license fee, levy, charge, real estate taxes,
special or metro district assessment, penalty or tax imposed by any taxing authority against the Property and Premises, and (ii) any tax or charge for fire protection, streets, sidewalks, road maintenance, refuse or other services provided to the
Property by any governmental agency. In the event that it shall not be lawful for Tenant and Landlord to apportion such future taxes, if any, then in that event, the minimum rent payable to Landlord under this Lease shall be revised to net Landlord
the same rental after imposition of any such future tax upon Landlord as would have been payable to Landlord prior to the impositions of any such tax. “Real Property Tax” does not, however, include Landlord’s federal or state income,
franchise, inheritance or estate taxes. 
  
 (m)
“Rent” shall mean Minimum Rent and any Additional Rent. 
  
 (n) “Site Plan” shall mean the site plan for the Property attached hereto as Exhibit A. 
  
 2. LEASE OF PREMISES. Landlord hereby leases the Premises to Tenant, and Tenant hereby leases the Premises from Landlord,
subject to the terms, covenants and conditions herein set forth, and Tenant covenants as a material part of the consideration for this Lease to keep and perform each and all of such terms, covenants and conditions by Tenant to be kept and performed.

  

 2 

 3. LEASE TERM/OPTION TO RENEW. 
  
 (a) The Lease Term shall begin at twelve o’clock noon on the Effective Date and shall end at twelve o’clock noon
on September 30, 2014. 
  
 (b) Upon the condition that Tenant is
not in default beyond any applicable notice and cure periods at the time of the automatic exercise of any option contained in this subparagraph, Landlord hereby grants to Tenant three (3) separate options (each an “Option”) to renew the
Lease Term each for an additional five (5) year period (each an “Extended Term”) upon the same terms and conditions as set forth in this Lease, except that the Rent payable during each Extended Term will be as described in Paragraph 4
below. Each Option shall be deemed automatically exercised by Tenant, unless Tenant provides written notice (“Termination Notice”) to Landlord notifying Landlord of the termination of said Option at least six (6) months prior to the end of
either the Lease Term or any Extended Term of this Lease. In the event that Tenant fails to give the Termination Notice within the time period set forth in the prior sentence, the Option shall be exercised and the Lease shall be extended for the
Extended Term. If any Option is not exercised, for any reason, or if the Tenant is in default beyond any applicable notice and cure periods, at the time which is six (6) months prior to either the Lease Term or an Extended Term of the Lease, the
Lease shall terminate at the expiration of the Lease Term and any Extended Term thereof. 
  
 (c) Provided that Tenant is not in default under this Lease beyond all applicable cure periods, Tenant shall have the first right of opportunity to enter into a purchase agreement with Landlord for the Premises. In
the event that Landlord determines that it desires to sell the Premises to an unaffiliated third party, it shall provide Tenant with all of the material business terms pursuant to which Landlord proposes to offer said proposed sale (“Term
Notice”). Tenant shall have a period of thirty (30) days after receipt of the Term Notice to notify Landlord that it desires to purchase the Premises in accordance with the Term Notice (“Tenant’s Acceptance Notice”). In the event
that Tenant timely provides Tenant’s Acceptance Notice, the closing of the sale pursuant to such terms will take place no later than ninety (90) days after Tenant provides said Tenant’s Acceptance Notice, provided, that Tenant’s
obligation to close the transaction shall have no contingencies, other than Landlord’s performance of its closing obligations. If Tenant fails to timely provide the Tenant’s Acceptance Notice or if, after providing Tenant’s Acceptance
Notice, Tenant fails to close the transaction within said ninety (90) day period then Landlord shall have the right to market the Premises subject to this Lease to an unaffiliated third party on the terms and conditions of the Term Notice,
provided that the purchase price for the Premises contained in such purchase contract may not be less than ninety-five percent (95%) of the purchase price contained in the Term Notice. If Landlord is unable to close a contract for the sale of
the Premises to an unaffiliated third party subject to the price limitations described above within six (6) months from the later of the last day for Tenant’s acceptance of the Term Notice, or the date of the closing of the transaction if
Tenant delivers a Tenant’s Acceptance Notice and fails to close, as the case may be, Tenant’s first right of opportunity as provided herein shall be reinstated. 
  
 4. MINIMUM RENT. During the Lease Term, Tenant agrees to pay the Landlord at the address as shown herein, or
at such other place as the Landlord may from time to time 
  

 3 

 designate in writing, “Minimum Rent” for the Premises. Said rent shall be payable in advance on the first of
each month, without deduction or set-off, without notice or demand, as follows: 
  

							
	 Lease Years

	  	Per Annum

	  	 Monthly

	 1-5
	  	$	144,000.00	  	$	12,000.00
	 6-10
	  	$	162,000.00	  	$	13,500.00
	 11-15 (Option Period 1)
	  	$	180,000.00	  	$	15,000.00
	 16-20 (Option Period 2)
	  	$	198,000.00	  	$	16,500.00
	 21-25 (Option Period 3)
	  	$	216,000.00	  	$	18,000.00

  
 5. SECURITY
DEPOSIT. [This Paragraph has been deliberately omitted.] 
  
 6. OPERATING COSTS. 
  
 (a) Tenant shall maintain
the Premises in their condition on the Effective Date at Tenant’s sole cost and expense. Landlord may inspect the Premises and, if Landlord reasonably determines that Tenant is not maintaining the Premises in their condition on the Effective
Date, Landlord may provide Tenant with written notice of any such maintenance concern, and Tenant shall promptly make such repairs. If Tenant fails to complete such repairs within thirty (30) days of receipt of such notice, Landlord may undertake
such repairs and Tenant shall be obligated to reimburse Landlord for its costs within ten (10) days of receipt of an invoice therefore. Landlord represents and warrants to Tenant that the exterior walls, foundation and roof of the Premises are in
good working order on the Effective Date. Landlord will, at its cost, replace, restore, repair or maintain (as necessary) the roof until the first anniversary of the Commencement Date. Landlord will, at its cost, replace, restore, repair or maintain
(as necessary) the exterior walls and foundation of the Premises until the fifth anniversary of the Commencement Date. Tenant shall be fully responsible for the replacement, restoration, repair and maintenance of the roof, exterior walls and
foundation of the Premises thereafter. If Landlord fails to commence such repairs within thirty (30) days of receipt of any notice from Tenant, Tenant may undertake such repairs and Landlord shall be obligated to reimburse Tenant for its costs
within ten (10) days of receipt of an invoice therefore; provided, however, that Tenant shall have no rights to offset or set off any such amounts against the Rent to be paid hereunder. If Landlord does not reimburse Tenant within ten (10)
days from the date of notice, such charge shall bear interest at the rate of eighteen percent (18%) per annum until paid. 
  
 Notwithstanding anything to the contrary herein contained (except for the provisions of paragraph 32 below), if Tenant makes any changes, additions or
alterations to the roof of the Premises which involves penetration of the roof (other than those for telecommunications installations so long as the installation contractor has Landlord’s prior written approval which will not be unreasonably
conditioned, delayed or denied), Landlord’s obligations to replace, restore, repair or maintain the roof shall cease. If Tenant undertakes any structural repairs in the Premises which impact, affect, or alter the walls or foundation of the
Premises, Landlord’s obligation to replace, restore, repair or maintain that portion of the exterior walls and foundation of the Premises shall cease as of the date of such action by Tenant. Any Operating Costs that pertain to a period prior to
or after the Lease Term will be pro rated between Landlord and Tenant in the proportion of the amount of the Lease Term that falls within the period to which the Operating Costs pertain. 
  
 (b) Tenant shall pay all Operating Costs during the Lease Term. 
  

 4 

 7. TAXES. 
  
 (a) Tenant shall pay all Real Property Taxes on the land, buildings and other improvements constituting the Property
and the Premises (including any fees, taxes or assessments against, or as a result of, any tenant improvements installed in the Premises by or for the benefit of Tenant) attributable to the Lease Term. Tenant shall pay such taxes ten (10) days prior
to their due date and shall promptly provide Landlord with evidence of such payment. 
  
 (b) Tenant shall pay before delinquency all taxes charged against trade fixtures, furnishings, equipment or any other personal property belonging to Tenant which become payable during the Lease Term. In the event any
or all of Tenant’s leasehold improvements, equipment, furniture, fixtures and other personal property shall be assessed and taxed with the Property, Tenant shall pay to Landlord its equitable share of such taxes within ten (10) days after
delivery to Tenant by Landlord of a statement in writing setting forth the amount of such taxes determined by Landlord to be applicable to Tenant’s property. 
  
 (c) Any Real Property Taxes or other taxes described in this Paragraph 7 that pertain to a period prior to or after the
Lease Term will be pro rated between Landlord and Tenant in the proportion of the amount of the Lease Term that falls within the period to which the Real Property Taxes or other taxes pertain. 
  
 (d) Tenant may contest any Real Property Taxes or other taxes described in
this Paragraph 7 by proceedings conducted in accordance with law. Landlord will cooperate fully with Tenant in any such contest. Tenant will hold Landlord harmless from any loss, liability, or expense arising out of any such contest. If Landlord so
requires, Tenant shall escrow the disputed tax amount with Landlord as security for any liability that may be incurred as a result of such contest. 
  
 8. USE OF PREMISES/MAINTENANCE OF LIQUOR LICENSE. 
  
 (a) Tenant shall use the Premises only for the Permitted Use. Any other use shall be subject to the prior written consent of Landlord, which may be
withheld in Landlord’s reasonable discretion. 
  
 (b) Tenant
shall not cause or permit any Hazardous Material (as herein after defined) to be brought upon, transported through, stored, kept, used, discharged or disposed in or about the Property by Tenant, its agents, employees or contractors, except that any
such Hazardous Material brought upon, transported, used, kept or stored in or about the Property which is necessary for Tenant to operate its business for the Permitted Use will be brought upon transported, used, kept and sorted in only such
quantities as are necessary for the usual and customary operation of Tenant’s business and in a manner that complies with (i) all laws, rules, regulations, ordinances, codes or any other governmental restrictions or requirements of all federal,
state and local government authorities having jurisdiction thereof regulating such Hazardous Material, (ii) any permits issued for any such Hazardous Material (copies of which must be delivered to Landlord before any Hazardous Material is brought
in, on or about the Property), and (iii) all products and manufacturers’ instructions and recommendations, to the extent they are stricter than laws, rules, regulations, ordinances, codes or permits. If Tenant, its agents, employees or
contractors, in any way breach the obligations stated in this subparagraph 8(b), or if the presence of Hazardous Materials on the Property caused or permitted by Tenant results in release or threatened release of such Hazardous Material, on from or
under the Property 
  

 5 

 in violation of law, or if the presence on, from or under the Property of Hazardous Materials otherwise arises out of the
operation of Tenant’s business in violation of law, Tenant shall indemnify, defend, and hold harmless Landlord (and Landlord’s directors, shareholders, officers, employees, partners, agents, mortgagees or successors to Landlord’s
interest in the Premises) (collectively, herein “Indemnity”) from any and all claims, sums paid in settlement of claims, judgments, damages, clean-up costs, penalties, fines, fees or expenses (including without limitation attorney,
consultant and expert fees and any fees incurred by Landlord to enforce the Indemnity) which arise during or after the Term as a result of Tenant’s breach of such obligations or such contamination of the Property violation of law as provided in
this subparagraph 8(b). The Indemnity includes, without limitation, costs incurred in connection with any investigation of site conditions or any clean-up, remedial, removal or restoration work required by any federal, state, or local governmental
agency or political subdivision because of Hazardous Material present in the soil or groundwater on, under or originating from the Property if it is determined that Tenant caused or permitted such Hazardous Material to be present in the soil or
groundwater in violation of law. Without limiting the foregoing, if the presence of any Hazardous Material on the Property caused or permitted by Tenant results in any contamination, release or threatened release of Hazardous Material on, from or
under the Property or other properties in violation of law, Tenant shall promptly take all actions at its sole cost and expense which are necessary to return the Property and any other affected property to the condition existing prior to the
introduction of such Hazardous Material; provided that Landlord’s approval of such actions shall first be obtained (which approval shall not be unreasonably withheld) and so long as such actions do not have or would not potentially have any
material adverse effect on Landlord, on the Property or on other property. The Indemnity contained in this subparagraph 8 (b) shall survive the expiration or earlier termination of this Lease and shall survive any transfer of Landlord’s
interest in the Property. 
  
 (c) In conjunction with the
operation of the Premises for its Permitted Use, Tenant has obtained a tavern license from the State of Colorado and the City of Glendale (“Liquor License”). Tenant shall be solely responsible for and Tenant shall pay any and all fees,
assessments, charges, levies or other monetary obligations imposed in connection with the Liquor License as required by applicable law. In the event Tenant receives any notice of violation, citation, written or oral warning, or any complaint,
objection, or challenge to the Liquor License, Tenant shall notify Landlord in writing of such information within three (3) days of receipt of such written or oral notice and, if such notice was written, Tenant shall include in said notice a copy of
any notice, citation, correspondence or other written information provided to Tenant. Tenant shall utilize its best efforts to maintain the Liquor License in good standing and in full compliance with the rules, regulations, ordinances and statutes
of the City of Glendale and the State of Colorado. 
  
 9.
COMPLIANCE WITH LAW. Tenant shall not use the Premises or permit anything to be done in or about the Premises which will in any way conflict with any law, statute, ordinance or governmental rule or regulation now in force or which may hereafter
be enacted or promulgated including, without limitation, the Americans With Disabilities Act. Landlord represents to Tenant that Landlord has received no notice that the Premises do not comply with all such laws, statutes, ordinances and rules and
regulations on the Effective Date. Tenant shall, at its sole cost and expense, promptly comply with all laws, statutes, ordinances and governmental rules, regulations or requirements now in force or which may hereafter be in force and with the
requirements of any board of fire underwriters or other similar bodies now or hereafter constituted relating to or affecting the condition, use or occupancy of the Premises, excluding those limited structural changes which are the responsibility of
Landlord pursuant to 
  

 6 

 subparagraph 6(a) above, which shall be the sole cost and expense of Landlord; however, Tenant will not be obligated to
comply with any such laws, statutes, ordinances, rules, regulations and requirements if (a) Landlord had received notice that the Premises did not comply on the Effective Date, or (b) unless required by competent governmental authorities. Tenant may
at its expense contest its compliance obligations so long as Landlord is not subjected to any expense that Tenant does not pay or subject to criminal liability. The judgment of any court of competent jurisdiction or the admission of Tenant in any
action against Tenant, whether Landlord be a party thereto or not, that Tenant has violated any law, statute, ordinance or governmental rule, regulation or requirement, shall be conclusive of that fact as between Landlord and Tenant. 
  
 10. ALTERATIONS AND ADDITIONS. Tenant shall not make or allow to be
made any structural alterations, additions or improvements to or of the Premises or any part thereof without first obtaining the written consent of Landlord. However, Landlord’s consent will not be required to make any non-structural
alterations, additions or improvements to the Premises that conform to applicable building codes. In the event Landlord consents to the making of any alterations, additions or improvements to the Premises by Tenant, the same shall be made by Tenant
at Tenant’s sole cost and expense and shall be completed in a good and workmanlike manner, free of any liens. Any alterations, additions or improvements to or of the Premises, including, but not limited to, wall covering, paneling and built in
cabinet work, but excepting movable furniture, decorations, trade fixtures and any personal property, shall at once become a part of the realty and belong to Landlord and shall be surrendered with the Premises. Upon the expiration or sooner
termination of the Term, Tenant shall, upon written demand by Landlord, at Tenant’s sole cost and expense, forthwith and with all due diligence, remove any alterations, additions or improvements made by Tenant which are designated by Landlord
to be removed at the time of installation, and Tenant shall, forthwith and with all due diligence, at its sole cost and expense, repair any damage to the Premises caused by such removal. 
  
 11. MAINTENANCE AND REPAIR. 
  
 (a) Subject to Landlord’s limited obligations under subparagraph 6(a),
by taking possession of the Premises, Tenant shall be deemed to have accepted the Premises as being in good order, condition and repair. Tenant shall, at Tenant’s sole cost and expense, keep the Premises and every part thereof in good condition
and repair, including without limitation, the maintenance, repair and replacement of any storefront, doors, window casements, glazing, plumbing, pipes, electrical wiring and conduits, and the heating and air conditioning (“HVAC”) system.
Tenant shall obtain a service contract for repairs and maintenance of the HVAC system and shall provide to Landlord a copy of the service contract along with written details of any and all scheduled and other repairs and maintenance performed on the
HVAC system within ten (10) days of the date of such performance. Tenant shall, upon the expiration or sooner termination of this Lease, surrender the Premises to Landlord in good condition, broom clean, ordinary wear and tear and damage subject to
Paragraph 24 excepted. Except for damage subject to Paragraph 24, any damage caused by Tenant’s use of the Premises shall be repaired at the sole cost and expense of Tenant. 
  
 (b) Except as specifically provided in subparagraph 6(a) above, Tenant shall repair and maintain the structural portions of
the Building, including the exterior walls and roof. Landlord shall not be liable for Tenant’s failure to make such repairs or to perform any maintenance. There shall be no abatement of Rent and no liability of Landlord by reason of any injury
to or interference with Tenant’s business arising from the making of any repairs, alterations or improvements in or to any portion of the Building or the Premises or in or to fixtures, appurtenances and equipment therein. Tenant waives any
right to make repairs at Landlord’s expense under any law, statute or ordinance now or hereafter in effect. 
  

 7 

 (c) If Tenant refuses or neglects to repair or maintain the Premises, as required herein, to the
reasonable satisfaction of Landlord, Landlord shall provide Tenant with written notice of any such refusal or neglect and Tenant shall repair any item mentioned in said notice within thirty (30) days thereafter. If Tenant has not made such repairs
within the 30-day period, Landlord may make such repairs without liability to the Tenant for any loss or damage it may accrue to Tenant’s merchandise, fixtures or other property or to Tenant’s business by reason thereof and, upon
completion thereof, Tenant shall pay Landlord’s costs for making such repairs upon presentation of a bill thereof. In the event Tenant does not pay such bill within ten (10) days of its receipt, such failure shall be an event of default
hereunder, Landlord shall be entitled to utilize all of its remedies herein and such amount shall bear interest at the rate of eighteen percent (18%) per annum from the date of the notice. Notwithstanding the foregoing, in the event that Tenant in
good faith disputes Landlord’s claim that Tenant has failed to repair or maintain any aspect of the Premises, then if Landlord makes any repairs, Tenant shall not be obligated to pay for the repairs or any interest thereon until the dispute is
finally determined; provided, that Tenant shall deposit the disputed amount with the Landlord until the dispute is resolved. 
  
 12. LIENS. Tenant shall keep the Property free from any liens arising out of any work performed, materials furnished or obligations incurred by or
on behalf of Tenant or shall facilitate the release or protest of any such lien within thirty (30) days after the lien is filed. Landlord shall have the right to post notices on the Premises that the Premises are not subject to liens of those
providing labor and/or materials to the Premises at the request of the Tenant pursuant to Colorado Statutes. Tenant shall provide Landlord with ten (10) days prior written notice prior to commencing any improvements at the Property, to allow
Landlord adequate time to post said notices. If Tenant determines to protest any lien, or if such lien affects Landlord’s interest in the Premises, for any reason, Landlord may require Tenant to post a bond pursuant to the provisions of C.R.S.
§ 38-22-131. 
  
 13. ASSIGNMENT AND SUBLETTING.

  
 (a) Tenant shall not (voluntarily, by operation of law or
otherwise) assign, transfer, mortgage, pledge, hypothecate or encumber this Lease or any interest therein, and shall not sublet the Premises or any part thereof, or any right or privilege appurtenant thereto, or allow any other person (the
employees, agents, servants and invitees of Tenant excepted) to occupy or use the Premises, or any portion thereof, without first obtaining the written consent of Landlord, which consent will not be unreasonably withheld, conditioned or delayed and
will not be withheld if the assignee, subtenant or transferee is reputable, has equal or better credit than Tenant and any guarantor of this Lease at the time of the subject transaction, and has substantial experience in the operation of the
Permitted Use. Any assignment or subletting without such consent (whether actual or deemed) shall be void, and shall, at the option of Landlord, constitute a default under the terms of this Lease. Acceptance of Rent by Landlord from anyone other
than Tenant shall not be construed as a consent or waiver by Landlord, nor as a release of Tenant, but the same shall be taken to be a payment on account of Tenant. A consent to one assignment, subletting, occupation or use by any other person shall
not be deemed to be a consent to any subsequent assignment, subletting, occupation or use by another person. Notwithstanding anything to the contrary in this Paragraph 13, Tenant may assign or sublet the Premises without 
  

 8 

 the prior written consent of Landlord, to an entity which currently owns more than fifty percent (50%) of the voting
stock of Tenant or which Tenant owns greater than fifty percent (50%) of all classes of stock (or all classes of partnership or membership interest). 
  
 (b) Tenant shall provide Landlord with a copy of any proposed sublease or assignment that contains the name and address of the proposed subtenant or
assignee, the anticipated effective date of the proposed sublease or assignment, the duration of the term of any proposed sublease, and the amount of space any proposed subtenant will occupy. In addition, Tenant shall provide detailed information
regarding the proposed subtenant’s or assignee’s financial condition and credit history, relevant business history and experience, together with any other pertinent information which Landlord reasonably requires. Landlord may require an
opportunity to meet and interview the proposed subtenant or assignee as well. For purposes of Landlord’s consent to a proposed sublease or assignment, it shall be considered reasonable for Landlord to consider (i) the relative financial
strength, business reputation and operational/management experience of Tenant and the proposed subtenant or assignee, (ii) any history that the proposed subtenant or anyone has with the liquor licensing agencies of the City of Glendale and the State
of Colorado, and (iii) whether the use of the Premises after such sublease or assignment would create any nuisance or violate any federal, state or local laws or involve Hazardous Materials. 
  
 (c) If Landlord consents to a proposed assignment or sublease, the form of
such assignment or sublease shall be satisfactory to Landlord and shall (i) incorporate this Lease in its entirety and be subject to its terms, (ii) provide that Tenant shall remain liable under this Lease, (iii) provide that subtenant will comply
with all terms and conditions of this Lease, (iv) provide for assumption by an assignee of all the terms, covenants and conditions which this Lease requires Tenant to perform, and (v) include a requirement that any subtenant attorn to the Landlord.
Landlord’s consent will not be effective unless and until Tenant delivers to Landlord an original, duly executed assignment or sublease, as the case may be, in a form satisfactory to Landlord, as set forth herein. Tenant shall pay
Landlord’s reasonable fees, not to exceed One Thousand Dollars ($1,000.00), incurred for review of such assignment or sublease and all other materials submitted by Tenant in connection with the request for Landlord’s consent, whether or
not such assignment or sublease is approved. 
  
 Notwithstanding
anything else in this article contained, as a condition to Landlord’s written approval of any sublease by Tenant, Landlord may require that it shall be entitled to the receipt of one hundred percent (100%) of any profit derived by Tenant as a
result of such sublease. Such profit is defined as any amounts received by Tenant from its subtenant pursuant to the sublease in excess of the Rent required to be paid by Tenant hereunder. In the absence of any such agreement between Tenant and its
subtenant, there will be deemed to be no profit. Tenant shall deliver all documents pertaining to any such subletting to Landlord upon Landlord’s demand. Such profit shall not include any lump-sum payment made to Tenant from its subtenant in
consideration of the transfer of Tenant’s business, trade name, inventory, or goodwill: but any amount attributed to lease assignment on any document concerning the transaction (including the assignee’s tax return) by assignee shall be
conclusively established as not attributable to Tenant’s business, trade name, inventory or goodwill, and therefore, shall be included in Tenant’s profits as described herein. 
  
 14. HOLD HARMLESS. Except as limited by Paragraph 15, Tenant shall
indemnify and hold Landlord harmless against and from any and all claims arising from Tenant’s use of the Premises or from the conduct of its business or from any activity, work or other things done, 
  

 9 

 permitted or suffered by Tenant in or about the Premises, and shall further indemnify and hold Landlord harmless against
and from any and all claims arising from any breach or default in the performance of any obligation on Tenant’s part to be performed under the terms of this Lease, or arising from any act or negligence of Tenant, or any officer, agent,
employee, guest or invitee of Tenant, and from all costs, attorney’s fees and liabilities incurred in or about the defense of any such claim or any action or proceeding brought thereon, and in case any action or proceeding be brought against
Landlord by reason of such claim. Tenant upon written notice from Landlord shall defend the same at Tenant’s expense. Tenant, as a material part of the consideration to Landlord, hereby assumes all risk of damage to its property or injury to
persons in, upon or about the Premises, from any cause other then the negligence of Landlord, its agents, servants or employees. Tenant shall give prompt written notice to Landlord in case of casualty or accidents in the Premises. 
  
 15. WAIVER OF SUBROGATION. Landlord and Tenant hereby waive any and
all rights of recovery against each other, or against their respective officers, shareholders, employees, agents or representatives, for loss of or damage to property of the other. Landlord and Tenant shall give notice to their insurance carrier of
this waiver of subrogation. 
  
 16. INSURANCE. Commencing
on the Effective Date and continuing throughout the Lease Term, Tenant shall carry and maintain the following insurance (“Tenant’s Insurance”): (a) a “Broad” form of insurance policy, with an endorsement insuring against
loss of Minimum Rent (including Extended Period of Recovery, if applicable) insuring the buildings and improvements of the Property (and leasehold improvements) for 100% of their replacement value; (b) public liability, bodily injury and damage
comprehensive insurance coverage insuring against claims of any and all personal injury, death or damage occurring in or about the Premises or the sidewalks adjacent thereto, with a combined single limit coverage of not less than $3,000,000 (subject
only to a commercially reasonable deductible), on an “occurrence” form and including contractual liability coverage for the performance by Tenant of the indemnity agreements set forth in Paragraph 15 above; (c) worker’s compensation
insurance insuring against and satisfying the worker’s compensation laws of the State of Colorado; and (d) “dram shop” or liquor liability insurance. Tenant’s Insurance shall be issued by an insurance company of recognized
standing, authorized to do business in the State of Colorado and having a Best’s Insurance Guide rating of at least A:VII and satisfactory to Landlord. Tenant’s Insurance (other than any policy of worker’s compensation insurance) will
name Landlord and Landlord’s lender(s) as additional insureds. Original or copies of original policies (together with copies of the endorsements naming Landlord and Landlord’s lender(s) as additional insureds) will be delivered to Landlord
prior to the Effective Date. Tenant’s Insurance will provide that it may not be terminated or amended except after thirty (30) days prior written notice to Landlord. All public liability property damage, liability and casualty policies
maintained by Tenant shall be written as primary policies, not contributing with and not supplemental to coverage that Landlord may carry. 
  
 17. UTILITIES. 
  
 (a) Tenant shall pay for all water, gas, heat, light, power, sewer charges, telephone service and all other services and utilities supplied to the
Premises, together with any taxes thereon. 
  
 (b) Landlord
has advised Tenant that presently Xcel Energy, f/k/a Public Service Company of Colorado (“Electric Service Provider”) is the utility company selected by Landlord to provide electricity for the Property. 
  

 10 

 (c) Landlord does not warrant or guarantee the continued availability of any or all of the utility
services necessary or desirable for the use of the Premises by Tenant. In no event shall the interruption, diminution or cessation of such services (unless caused by Landlord) be construed as an actual or constructive eviction of Tenant, nor shall
Tenant be entitled to any abatement of its Rent obligations under this Lease or on account thereof. Landlord shall in no way be liable or responsible for any loss, damage, or expense that Tenant may sustain or incur by reason of any change, failure,
interference, interruption, disruption or defect in the supply or character of the utilities furnished to the Premises (unless caused by Landlord), and no such change, failure, diminution, cessation, unavailability or unsuitability shall constitute
an actual or constructive eviction, in whole or in part, or entitle Tenant to any abatement or diminution of rent, or relieve Tenant from any of its obligations under the Lease (unless caused by Landlord). In the event that any interruption,
diminution or cessation of such services occurs solely as a result of the acts or omissions of Landlord (or Landlord’s agents, employees or contractors), then Tenant’s Rent shall be abated during the period of interruption, diminution or
cessation. 
  
 18. PERSONAL PROPERTY. Any property of
Tenant remaining in the Premises at any time when Landlord recovers possession of the Premises shall be deemed abandoned, and Landlord shall have no responsibility or liability whatsoever for any of the same. Notwithstanding the foregoing, Landlord
may store any such property in any public or private warehouse, and Tenant shall pay to Landlord promptly upon demand all costs incurred in connection with such property, including the costs of moving and storage, court costs, and attorney fees.
Landlord at its option may, without notice, sell any such personal property at any public or private sale, with or without legal process, for such prices as Landlord may obtain, and Landlord shall apply the proceeds of such sales first to the costs
incurred in connection with such property, and then to any amounts due under this Lease from Tenant to Landlord, and the surplus, if any, to Tenant. Landlord waives any statutory lien on Tenant’s personal property in the Premises. 

 
 19. FAILURE TO SURRENDER POSSESSION. 
  
 (a) The parties recognize and agree that the damage to Landlord resulting
from any failure by Tenant to timely surrender possession of the Premises will be substantial, will exceed the amount of the monthly installments of the Rent payable hereunder, and will be impossible to measure accurately. 
  
 (b) Subject to subparagraph 3(b) herein, Tenant therefore agrees that if
possession of the Premises are not surrendered to Landlord upon the expiration or sooner termination of this Lease, in addition to any other rights or remedies Landlord may have hereunder or at law, Tenant shall pay to Landlord, as liquidated
damages, for each month and for each portion of any month during which Tenant holds over in the Premises after the expiration or sooner termination of this Lease, a sum equal to one hundred thirty percent (130%) of the aggregate of that portion of
the monthly Rent that was payable under this Lease during the last month of the term hereof. The provisions of this subparagraph shall survive the expiration or sooner termination of this Lease. 
  
 (c) No provision of this Paragraph 19 or any other provision of this Lease
shall be deemed to permit Tenant to retain possession of the Premises after the expiration or sooner termination of the Lease Term, or to have extended or renewed the Lease Term beyond its expiration or termination. Acceptance of any payment of Rent
during any holdover period by Landlord shall not be deemed acceptance of Tenant’s occupancy. 
  

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 20. ENTRY BY LANDLORD. Upon no less than twenty-four (24) hours’ prior notice which may be
given orally to Troy Lowrie or his designee identified in a written notice to Landlord, Landlord shall at any and all times have the right to enter the Premises to inspect the same, to show the Premises to prospective purchasers or (in the last six
(6) months of the Lease Term or any Extended Term) tenants and to post notices of non-responsibility. Landlord shall also have the right to conduct such maintenance and repair of or to the Premises (or the Building) as this Lease requires or allows
Landlord to perform, without abatement of Rent, and for that purpose may erect scaffolding and other necessary structures where reasonably required by the character of the work to be performed, always providing that the entrance to the Premises
shall not be unreasonably blocked thereby, and further provided that the business of Tenant shall not be interfered with unreasonably. Landlord shall attempt to minimize interference with Tenant’s business. Tenant hereby waives any claim for
damages or for any injury or inconvenience to or interference with Tenant’s business, loss of occupancy or quiet enjoyment of the Premises, and any other loss occasioned thereby, unless occasioned by the willful act or negligence of Landlord,
its agents, employees or contractors. Landlord shall have the right to access without notice and to use any and all means which Landlord may deem proper to open said doors in an emergency, in order to obtain entry to the Premises without liability
to Tenant except for any failure to exercise due care for Tenant’s property. Any entry to the Premises obtained by Landlord by any of such means, or otherwise, shall not under any circumstances be construed or deemed to be a forcible or
unlawful entry into, or a detainer of the Premises, or an eviction of Tenant from the Premises or any portion thereof. 
  
 21. TENANT’S DEFAULT. The occurrence of any one or more of the following events shall constitute a default and breach of this Lease by Tenant:

  
 (a) the abandonment of the Premises; 
  
 (b) failure by Tenant to pay any Rent when required hereunder and such
failure continues for ten (10) days after Tenant’s receipt of written notice from Landlord of such failure, provided, that Landlord shall only be obligated to provide Tenant with written notice of monetary default one (1) time in any
period of twelve (12) consecutive months; 
  
 (c) failure by
Tenant to observe or perform any of the covenants, conditions or provisions of this Lease to be observed or performed by Tenant, except the payment of Rent, where such failure shall continue for a period of thirty (30) days after written notice
thereof by Landlord to Tenant (provided, however, that if the nature of Tenant’s default is such that more than thirty (30) days are reasonably required for its cure, then Tenant shall not be deemed to be in default if Tenant commences such
cure within said thirty (30) day period and thereafter diligently prosecutes such cure to completion); 
  
 (d) the making by Tenant or Guarantor (while the Guaranty is in effect) of any general assignment or general arrangement for the benefit of creditors; or
the filing by or against Tenant or Guarantor (while the Guaranty is in effect) of a petition to have Tenant or Guarantor (while the Guaranty is in effect) adjudged a bankrupt, or a petition or a reorganization or arrangement under any law relating
to bankruptcy (unless, in the case of a petition filed against Tenant, the same is dismissed within sixty (60) days); or the appointment of a trustee or a receiver to take possession of substantially all of Tenant’s assets located at the
Premises or of 
  

 12 

 Tenant’s interest in this Lease, where possession is not restored to Tenant within thirty (30) days; or the
attachment, execution or other judicial seizure of substantially all of Tenant’s assets located at the Premises or of Tenant’s interest in this Lease, where such seizure is not discharged within thirty (30) days; or 
  
 (e) any of the Liquor License for the Premises is revoked or is suspended for
more than three (3) weeks by the State of Colorado or the City of Glendale for any reason whatsoever. 
  
 Notwithstanding the cure period allowed by subparagraph (c) above, it shall be an immediate default under this Lease if Tenant fails to surrender the
Premises to Landlord upon the expiration or sooner termination of the Lease, or if any failure of Tenant to comply with any provision of this Lease results in the cancellation of any property insurance coverage or causes or results in a dangerous
condition on the Premises or the remainder of the Property, and such failure to comply is not cured as soon as reasonably possible after notice thereof by Landlord to Tenant. In no event shall financial inability be considered a reasonable ground
for failure of Tenant to cure any breach of, or failure to comply with, the provisions of this Lease. 
  
 22. LANDLORD’S REMEDIES. In the event of any such default or breach by Tenant, Landlord may take any of the following actions at any time
thereafter, in its sole discretion, with or without notice or demand and without limiting Landlord in the exercise of any right or remedy which Landlord may have by reason of such default or breach under the laws or judicial decisions of the State
of Colorado. 
  
 (a) Landlord may terminate Tenant’s right to
possession of the Premises by any lawful means, in which case this Lease shall terminate, Tenant shall immediately surrender possession of the Premises to Landlord, and Landlord shall be entitled to recover from Tenant all damages incurred by
Landlord by reason of Tenant’s default including, but not limited to, the cost of recovering possession of the Premises; the cost to restore the Premises to the condition required by this Lease at the end of the Lease Term; and reasonable
attorney fees. 
  
 (b) Landlord may reenter and take possession of
the Premises or any part thereof, without demand or notice, and repossess the same and expel Tenant and any party claiming by, under or through Tenant, and remove the effects of both using such force for such purposes as may be necessary, without
being liable for prosecution on account thereof of being deemed guilty of any manner of trespass, and without prejudice to any remedies for arrears of Rent or right to bring any proceeding for breach of covenants or conditions. No such reentry or
taking possession of the Premises by Landlord shall be construed as an election by Landlord to terminate this Lease unless a written notice of such intention is given to Tenant. No notice from Landlord hereunder or under a forcible entry and
detainer statute or similar law shall constitute an election by Landlord to terminate this Lease unless such notice specifically so states. Landlord reserves the right, following any reentry or releting, to exercise its right to terminate this Lease
by giving Tenant such written notice, in which event this Lease will terminate as specified in such notice. After recovering possession of the Premises, Landlord use reasonable efforts to relet the Premises, or any part thereof, for the account of
Tenant, for such term or terms and on such conditions and upon such other terms as Landlord, in its discretion, may determine. Landlord may make such repairs, alterations or improvements as Landlord may consider reasonably appropriate to accomplish
such releting, and Tenant shall reimburse Landlord upon demand for all reasonable costs and expenses (including without limitation leasing commissions and attorney fees) which Landlord may incur in connection with such releting. Landlord may

  

 13 

 collect and receive the rents for such releting but Landlord shall in no way be responsible or liable for any failure to
relet the Premises, or any part thereof, or for any failure to collect any rent due upon such releting. Notwithstanding Landlord’s recovery of possession of the Premises, Tenant shall continue to pay on the dates herein specified, the Minimum
Rent and all Additional Rent which would be payable hereunder if such repossession had not occurred, less a credit for the net amounts, if any, actually received by Landlord through any releting of the Premises. 
  
 (c) Landlord may maintain Tenant’s right to possession, in which case
this Lease shall continue in effect whether or not Tenant shall have abandoned the Premises. In such event Landlord shall be entitled to enforce all of Landlord’s rights and remedies under this Lease, including the right to recover the Rent as
it becomes due hereunder. 
  
 (d) In any event, Landlord shall be
entitled to recover interest on any unpaid Rent or any amounts owing pursuant to this Lease not paid when due at the rate of eighteen percent (18%) per annum from the date due until paid in full. 
  
 23. DEFAULT BY LANDLORD. Landlord shall not be in default under this
Lease unless Landlord fails to perform obligations required of Landlord within a reasonable time, but in no event later than thirty (30) days after written notice by Tenant to Landlord and to the holder of any first mortgage or deed of trust
covering the Premises whose name and address shall be furnished to Tenant in writing within ten (10) days after the execution of this Lease and within ten (10) days following any change in the holder of the first mortgage or deed of trust,
specifying wherein Landlord has failed to perform such obligation; provided, however, that if the nature of Landlord’s obligations is such that more than thirty (30) days are required for performance then Landlord shall not be in default if
Landlord commences performance within such thirty (30) day period and thereafter diligently prosecutes the same to completion. 
  
 24. RECONSTRUCTION. 
  
 (a) Subject to the provisions of subparagraphs (b) and (c) below, in the event the Premises or any other portion of the Building is damaged by fire or
other perils covered by extended coverage insurance, and such damage does not require structural demolition and reconstruction of all or part of the Building, Landlord agrees to forthwith repair such damage utilizing the proceeds of insurance and
this Lease shall remain in full force and effect, except that Tenant shall be entitled to an equitable reduction of Minimum Rent from the date of damage until completion of such repairs, based on the extent to which the damage and making of such
repairs shall reasonably interfere with the business carried on by Tenant in the Premises. 
  
 (b) In the event that any casualty requires structural demolition and reconstruction of all or a material part of the Building (whether or not such reconstruction involves any portion of the Premises), Tenant may, at
its election, give notice to Landlord at any time within sixty (60) days after such damage, terminating this Lease as of the date of the casualty. In the event of giving such notice, this Lease and all interest of Tenant in the Premises shall
terminate on the date of the casualty, the Rent shall be paid up to the date of such casualty, and Landlord shall be entitled to all insurance maintained by Tenant on the Building (except for proceeds attributable to Tenant’s personal property
in, on or about the Premises). In the alternative, and so long as at least five (5) years remain in the Term or Tenant then exercises an Option pursuant to Paragraph 3(b), if any Tenant may, by written notice to Landlord within such 60-day period,
elect to require Landlord to repair or restore such damage, in which case the Minimum Rent shall be proportionately reduced as provided in subparagraph (a) above and this 
  

 14 

 Lease shall continue in full force and effect; PROVIDED, HOWEVER, that Tenant shall have the right to alter the size and
configuration of the Building in the course of such reconstruction, so long as the Building as reconstructed is an integrated architectural unit, the dimensions of the Premises are substantially the same as prior to such casualty and Tenant is able
to operate its business as intended at the time of Lease execution, subject to Landlord’s approval which will not be unreasonably conditioned, delayed or denied. If Tenant elects to require Landlord to construct the improvements, Tenant will
make available to Landlord all insurance proceeds received by Tenant or due to Tenant, and, prior to any reconstruction, Tenant will deposit with Landlord or its contractor the amount by which the cost of reconstruction exceeds the amount of the
insurance proceeds. 
  
 25. EMINENT DOMAIN/TERMINATION OF
BUSINESS. If more than twenty percent (20%) of the Building shall be taken or appropriated by any public or quasi-public authority under the power of eminent domain, either party hereto shall have the right, at its option, within sixty (60) days
after said taking, to terminate this Lease upon thirty (30) days written notice. If less than twenty percent (20%) of the Building is taken (or if more than 20% is taken but neither party elects to terminate as herein provided), the Minimum Rent
thereafter to be paid shall be equitably reduced. If all of the Property other than the Building shall be so taken or appropriated, Landlord or Tenant shall within sixty (60) days of said taking have the right at its option to terminate this Lease
upon written notice to Tenant. In the event of any taking appropriation whatsoever, Landlord shall be entitled to any and all awards and/or settlements which may be given, and Tenant shall have no claim against Landlord for the value of any
unexpired term of this Lease. Tenant may apply separately to the condemning authority to obtain compensation for its relocation expenses. 
  
 In the event the City of Glendale rezones the Premises in a fashion that precludes Tenant from operating any material part of the Premises for the
Permitted Use or prohibits the use of the Premises for the Permitted Use (a so-called “amortization”), as determined by Tenant in its reasonable discretion, Tenant shall be entitled to terminate this Lease without further liability upon
the provision of sixty (60) days advance written notice to Landlord. Tenant shall utilize its best efforts to contest any rezoning or prohibition and shall keep Landlord fully informed of the status of such rezoning actions by the City of Glendale.

  
 26. SIGNS. Tenant may affix and maintain only such
signs, advertising placards, names, insignia, trademarks and descriptive material (collectively “Signs”) as shall have first received the written approval of competent governmental agencies as to type, size, color, location, copy nature
and display qualities. Upon expiration or earlier termination of this Lease, Tenant’s Signs may, at Tenant’s election, remain on the Property. Tenant may use any Signs (and replacements or renovations to them) on the Property beginning on
the Effective Date. 
  
 27. GUARANTY. During
the first ten (10) Lease Years, the obligations of Tenant under this Lease shall be unconditionally guaranteed by Guarantor pursuant to the form of Guaranty Agreement attached hereto as Exhibit B. 
  
 28. ACCORD AND SATISFACTION. No payment by Tenant, nor receipt by
Landlord, of a lesser amount than the Rent herein stipulated shall be deemed to be other than on an account of the earliest stipulated Rent, nor shall any endorsement or statement on any check or any letter accompanying any check, or payment as
Rent, be deemed an accord and satisfaction, and Landlord shall accept such check for payment without prejudice to Landlord’s right to recover the balance of such Rent or pursue any other remedy available to Landlord. 
  

 15 

 Tenant expressly waives any right it may have to claim that any payment due from Tenant to Landlord hereunder, which
payment is less than the full amount due to the Landlord or claimed by Landlord, shall be deemed an accord and satisfaction. This waiver of Tenant’s right to claim an accord and satisfaction shall be without regard to whether or not a dispute
exists with regard to the amount claimed by Landlord. No payment by Tenant, nor receipt by Landlord, of a lesser amount than the full amount due pursuant to this Lease shall be deemed to be other than on an account of Tenant toward the amount
claimed by Landlord, nor shall any letter or statement accompanying any such payment be deemed an accord and satisfaction, and Tenant hereby waives its right to so claim. 
  
 29. GROSS SALES REPORTS. Within sixty (60) days after the end of each calendar year during the Lease Term and to the
extent not prohibited by law, Tenant shall furnish to Landlord a copy of the state sales tax report showing sales made in, upon or from the Premises during the preceding calendar year. 
  
 30. GENERAL PROVISIONS. 
  
 (a) Waiver. The waiver of any term, covenant or condition herein contained shall not be deemed to be a waiver of such term, covenant or condition
or any subsequent breach of the same or any other term, covenant or condition herein contained. The subsequent acceptance of Rent hereunder by Landlord shall not be deemed to be a waiver of any preceding default by Tenant of any term, covenant or
condition of this Lease, other than the failure of Tenant to pay the particular Rent so accepted, regardless of Landlord’s knowledge of such preceding default at the time of the acceptance of such Rent. 
  
 (b) Marginal Headings. The marginal headings and titles to the
articles of this Lease are not a part of the Lease and shall have no effect upon the construction or interpretation of any part hereof. 
  
 (c) Time. Time is of the essence of this Lease and each and all of its provisions in which performance is a factor. 
  
 (d) Successors and Assigns. The covenants and conditions herein
contained, subject to the provisions as to assignment, apply to and bind the heirs, successors, executors, administrators and assigns of the parties hereto. 
  
 (e) Recordation. Neither Landlord nor Tenant shall record this Lease, but a short form memorandum hereof may be recorded at the request of Landlord
or Tenant. 
  
 (f) Late Charges. Tenant hereby acknowledges
that late payment by Tenant to Landlord of Minimum Rent and scheduled Additional Rent due hereunder will cause Landlord to incur costs not contemplated by this Lease, the exact amount of which will be extremely difficult to ascertain. Such costs
include, but are not limited to, processing and accounting charges, and late charges which may be imposed upon Landlord by terms of any mortgage or trust deed covering the Premises. Accordingly, if any installment of Rent due from Tenant shall not
be received by Landlord or Landlord’s designee (a) within five (5) days after receipt of notice that such amount has not been paid when due (if notice is required pursuant to Section 21(b)) or (b) within ten (10) days of when due (if no notice
is required), then Tenant shall pay to Landlord a late charge equal to five percent (5%) of the installment or $500, whatever is greater, plus any attorney fees incurred by Landlord by reason of Tenant’s failure to pay Rent when due 

 

 16 

 hereunder. The parties hereby agree that such late charges represent a fair and reasonable estimate of the cost that
Landlord will incur by reason of the late payment of Tenant. Acceptance of such late charges by Landlord shall in no event constitute a waiver of Tenant’s default with respect to such overdue amount, nor prevent Landlord from exercising any of
the other rights and remedies granted hereunder. 
  
 (g) Prior
Agreements. This Lease contains all of the Agreements of the parties hereto with respect to any matter covered or mentioned in this Lease, and no prior agreement or understanding pertaining to any such matters shall be effective for any purpose.
No provision of this Lease may be amended or added to except by an agreement in writing signed by the parties hereto of their respective successors in interest. This Lease shall not be effective or binding on any party until fully executed by both
parties hereto. 
  
 (h) Partial Invalidity. Any provisions
of this Lease which shall prove to be invalid, void, or illegal shall in no way effect, impair or invalidate any other provision hereof, and all such other provisions shall remain in full force and effect. 
  
 (i) Cumulative Remedies. No remedy or election hereunder shall be
deemed exclusive but shall, whenever possible, be cumulative with all other remedies at law or in equity. 
  
 (j) Choice of Law. This Lease shall be governed by the laws of the State of Colorado. 
  
 (k) Attorney Fees. In the event any action or proceeding is brought by
either party against the other under this Lease, the prevailing party shall be entitled to recover for the fees of its attorneys in such action or proceeding, including costs of appeal, if any, such amount as the court may adjudge reasonable as
attorney fees. 
  
 (l) Sale of Premises by Landlord. In the
event of any sale of the Premises by Landlord, Landlord shall be and is hereby entirely freed and relieved of all liability under any and all of its covenants and obligations contained in or derived from this Lease arising out of any act, occurrence
or omission occurring after the consummation of such sale; and the purchaser, at such sale or any subsequent sale of the Premises, shall be deemed, without any further agreement between the parties or their successors in interest or between the
parties and any such purchaser, to have assumed and agreed to carry out any and all of the covenants and obligations of Landlord under this Lease. 
  
 (m) Subordination, Attornment. So long as it is provided a subordination, nondisturbance and attornment agreement in form and substance reasonably
acceptable to it, upon request of Landlord, Tenant will in writing subordinate its rights hereunder to the lien of any mortgage or deed of trust, to any bank, insurance company or other lending institution, now or hereafter in force against the
Premises, and to all advances made or hereafter to be made upon the security thereof. In the event any proceedings are brought for foreclosure, or in the event of the exercise of the power of sale under any mortgage or deed of trust made by Landlord
covering the Premises, Tenant shall attorn to the purchaser upon any such foreclosure or sale, and recognize such purchaser as the Landlord under this Lease so long as it is provided a subordination, nondisturbance and attornment agreement in form
and substance reasonably acceptable to it. The provisions of this subparagraph to the contrary notwithstanding, and so long as Tenant is not in default hereunder, this Lease shall remain in full force and effect for the full Lease Term
hereof. 
  

 17 

 (n) Notices. Except as set forth below, all notices to be given hereunder by either of the parties
shall be in writing. Any notice may be served by Landlord upon Tenant personally by delivering the same to Tenant directly. Any notice shall be deemed duly served by either party if addressed as set forth below and (i) deposited with the United
States Postal Service as certified mail, return receipt requested, with proper postage prepaid, or (ii) deposited with FedEx or other reliable overnight courier for expedited delivery. Either party may change the address to which the notices may be
sent by delivering a copy thereof to the other party in the manner aforesaid and sent contemporaneously by telecopy. If service is made by personal delivery or Federal Express, such service shall be deemed completed upon actual receipt of such
material. If service shall be made by certified mail, such service shall be deemed completed as of the third day following the mailing of such notice in the manner aforesaid. 
  

			
	To Landlord:	 	Lowrie Management LLLP
	 	 	6729 Bear Point Trail
	 	 	Golden, Colorado 80403
	 	 	Tele: (303) 934-2424
	 	 	Fax: (303) 922-0746
		
	To Tenant:	 	Glendale Restaurant Concepts LP
	 	 	c/o VCG Holding Corp.
	 	 	Attn: Mr. Donald W. Prosser
	 	 	390 Union Boulevard, Suite 540
	 	 	Lakewood, Colorado 80228
	 	 	Tele: (303) 934-2424
	 	 	Fax: (303) 922-0746

  
 (o) Estoppel
Statement. Landlord and Tenant shall at any time and from time to time, upon not less than ten (10) days prior written notice from Landlord, execute, acknowledge and deliver a statement in writing containing such statements as Landlord or Tenant
or any prospective purchaser or mortgagee of the Property or Tenant’s business at the Property may require, including (a) certification that this Lease is unmodified and in full force and effect (or, if modified, stating the nature of such
modification and certifying that this Lease as so modified is in full force and effect), and the date to which the rental and other charges are paid in advance, if any, (b) acknowledgment that there are not, to the certifier’s knowledge, any
uncured defaults on the part of Landlord hereunder, or specifying such defaults if any are claimed, (c) confirmation of the Effective Date and the expiration date of the Lease Term, (d) confirmation that no rents have been paid more than one (1)
month in advance, and (e) confirmation that Tenant has no right to purchase the Premises other than as contained herein. If Landlord or Tenant fails to execute an estoppel statement within such ten (10) day period, Landlord or Tenant (as the case
may be) is hereby authorized to execute an estoppel statement as Landlord’s or Tenant’s attorney in fact. Any such statement may be relied upon by the prospective purchaser or encumbrancer of all or any portion of the Property or
Tenant’s business at the Property. 
  
 (p)
Authority. If Tenant is a corporation, partnership, trust or limited liability company, each individual executing this Lease on behalf of Tenant represents and warrants that he or she is duly authorized to execute and deliver this Lease on
behalf of Tenant in accordance with the bylaws, partnership agreement or operating agreement (as the case may be) of Tenant, and that this Lease is binding upon Tenant. 
  

 18 

 (q) No Partnership. It is expressly understood that the Landlord and Tenant are not partners or
co-venturers and that the Landlord has no right, title or interest in and to the business of the Tenant, and that the Tenant has no right to represent or bind the Landlord or Tenant (as the case may be) in any respect whatsoever, and that nothing
contained herein shall be deemed, held or construed as making the Landlord or Tenant a partner or associate of Landlord or Tenant, or as rendering the Landlord or Tenant liable for any debts, liabilities or obligations incurred by the Tenant; it is
being expressly understood that the relationship between the parties hereto is, and shall at all times remain that of Landlord and Tenant. 
  
 31. USE OF ROOF. Tenant may utilize all or a portion of the roof, upon Landlord’s advance written consent, not to be unreasonably withheld, at
no extra charge for those uses which are reasonably affiliated with the Permitted Use. 
  
 32. BROKERS. Tenant warrants that it has had no dealings with any real estate broker or agents in connection with the negotiation of this Lease. 
  
 IN WITNESS WHEREOF, Landlord and Tenant have executed this Lease as dated: 
  

							
	LANDLORD:
	
	LOWRIE MANAGEMENT LLLP, a Colorado limited liability limited partnership
		
	 By:
	 	LOWRIE INVESTMENT MANAGEMENT CORP, a Colorado corporation, its general partner
			
	 	 	 By:
	 	 /S/    TROY H.
LOWRIE

	 	 	 Name:
	 	 Troy H. Lowrie

	 	 	 Title:
	 	 President

	 	 	 Date:
	 	 October 1, 2004

	
	 TENANT:

	
	 GLENDALE RESTAURANT CONCEPTS
 LP, a Colorado limited partnership

		
	 By:
	 	 VCG HOLDING CORP., its general partner

			
	 	 	 By:
	 	 /S/    DONALD W.
PROSSER

	 	 	 Name:
	 	 Donald W. Prosser

	 	 	 Title:
	 	 Chief Financial Officer

	 	 	 Date:
	 	 October 1, 2004

  

 19 

			
	 STATE OF COLORADO
	 	)
	 	 	) SS
	 COUNTY OF                 
	 	)

  
 I,
                    , a Notary Public in and for said County, in the State aforesaid, DO HEREBY CERTIFY, that Troy H. Lowrie, the President of
Lowrie Investment Management Corp., a Colorado corporation, general partner (“General Partner”) of Lowrie Management LLLP, a Colorado limited liability limited partnership, who is personally known to me to be the same person whose name is
subscribed to the foregoing instrument as such officer in such General Partner, appeared before me this day in person and acknowledged that he signed and delivered the said instrument as his own free and voluntary act, as the free and voluntary act
of General Partner, and as the free and voluntary act of said limited liability limited partnership, for the uses and purposes therein set forth. 
  
 GIVEN under my hand and Notarial Seal this              day of
            , 2004. 
  

	
	

	 Notary Public

  
 My Commission Expires:
                     
  

			
	STATE OF COLORADO	 	)
	 	 	) SS
	COUNTY OF                 	 	)

  
 I,
                    , a Notary Public in and for said County, in the State aforesaid, DO HEREBY CERTIFY, that Donald W. Prosser, the Chief
Financial Officer of VCG Holding Corp., a Colorado corporation general partner (“General Partner”) of Glendale Restaurant Concepts LP, a Colorado limited partnership, who is personally known to me to be the same person whose name is
subscribed to the foregoing instrument as such officer in such General Partner, appeared before me this day in person and acknowledged that he signed and delivered the said instrument as his own free and voluntary act, as the free and voluntary act
of General Partner, and as the free and voluntary act of said limited liability limited partnership, for the uses and purposes therein set forth. 
  
 GIVEN under my hand and Notarial Seal this              day of
            , 2004. 
  
  

	
	

	Notary Public

  
 My Commission Expires:
                     
  

 20 

 EXHIBIT “A” 
  
 LOCATION OF PREMISES 
  
 4451 East Virginia Avenue, Glendale, Colorado 
  

 21 

 EXHIBIT “B” 
  
 GUARANTY OF LEASE 
  
 In order to induce LOWRIE MANAGEMENT LLLP, a Colorado limited liability limited partnership (“Landlord”) to enter into that certain Lease dated
September 30, 2004 (the “Lease”) with GLENDALE RESTAURANT CONCEPTS LP, a Colorado limited partnership (“Tenant”), VCG HOLDING CORP., a Colorado corporation (“Guarantor”) hereby makes the following agreements with and in
favor of Landlord: 
  
 1. Guarantor hereby guarantees,
unconditionally and absolutely, the full and faithful performance and observance of all the covenants, terms, and conditions of the Lease to be performed and observed by Tenant, expressly including, without being limited to, the payment, when due,
of Minimum Rent and Additional Rent payable under the Lease. 
  
 2. If the Lease shall be modified in any respect by agreement between Landlord and Tenant, the obligations hereunder of Guarantor shall extend and apply with respect to the full and faithful performance and observance of all the covenants,
terms and conditions of the Lease and of any such modification thereof. 
  
 3. This Guaranty shall be effective for all obligations of Tenant incurred during the first ten (10) years of the Lease. This Guaranty shall not apply to any obligations of Tenant incurred during any renewals or extensions of the Lease.

  
 4. Insofar as the payment by Tenant of any sums of money to
Landlord is involved, this Guaranty is a guaranty of payment and not of collection, and shall remain in full force and effect until payment in full to Landlord of all sums payable under the Lease. Guarantor waives any right to require that any
action be brought against Tenant. 
  
 5. Guarantor does not
require any notice of Tenant’s nonpayment, nonperformance, or non-observance of the covenants, terms and conditions of the Lease. Guarantor hereby expressly waives the right to receive such notice. 
  
 6. Guarantor expressly agrees (without in any way limiting his liability
under any other provision of this Guaranty) that Guarantor shall, at the request of Landlord, enter into a new lease with Landlord on the same terms and conditions as contained in the Lease immediately prior to its termination, for a term commencing
on the termination date of the Lease and ending on the expiration date of the Lease, if the Lease shall be terminated due to a default by Tenant thereunder. 
  
 7. The liability of Guarantor is coextensive with that of Tenant and also joint and several, and action may be brought against Guarantor and carried to
final judgment either with or without making Tenant a party thereto. 
  
 8. Until all of Tenant’s obligations under the Lease are fully performed, Guarantor (a) waives any rights that Guarantor may have against Tenant by reason of any one or more payments or acts in compliance with the obligations of
Guarantor under this Guaranty, and (b) subordinates any liability or indebtedness of Tenant held by Guarantor to the obligations of Tenant to Landlord under this Lease. 
  

 22 

 9. Neither Guarantor’s obligation to make payment in accordance with the terms of this Guaranty nor
any remedy for the enforcement thereof shall be impaired, modified, released or limited in any way by any impairment, modification, release or limitation of the liability of Tenant or its estate in bankruptcy, resulting from the operation of any
present or future provision of the Bankruptcy Code of the United States or from the decision of any court interpreting the same. 
  
 10. Guarantor waives any right to require that resort be had to any security or to any other credit in favor of Tenant. 
  
 11. Guarantor waives the benefit of any statute of limitations affecting
Guarantor’s liability under this Guaranty. Guarantor hereby waives the right to trial by jury in any action or proceeding that may hereafter be instituted by Landlord against Guarantor in respect of this Guaranty. 
  
 12. Guarantor irrevocably appoints Tenant as his agent for service of process
related to this Guaranty. 
  
 13. Guarantor shall pay all of
Landlord’s expenses, including but not limited to, attorney’s fees, incurred in enforcing this Guaranty. 
  
 14. The Lease and this Guaranty shall be governed by, interpreted under the laws of, and enforced in the courts of the State of Colorado. 
  
 15. This Guaranty, and all of the terms hereof, shall be binding on Guarantor
and the successors, assigns and legal representatives of Guarantor, and shall inure to the benefit of and may be enforced by Landlord, its successors and assigns, and the holder of any mortgage to which the Lease may be subject and subordinate from
time to time. 
  
 16. Anything herein or in the Lease to the
contrary notwithstanding, Guarantor hereby acknowledges and agrees that any security deposit or other credit in favor of the Tenant may be applied to cure any Tenant default or offset any damages incurred by Landlord under the Lease, as Landlord
determines in its sole and absolute discretion, and Landlord shall not be obligated to apply any such deposit or credit to any such default or damages before bringing any action or pursuing any remedy available to Landlord against Guarantor.
Guarantor further acknowledges that its liability under this Guaranty shall not be affected in any manner by such deposit or credit, or Landlord’s application thereof. 
  

			
	Guarantor:	  	VCG Holding Corp.
	 	  	a Colorado corporation
	Address of Guarantor:	  	390 Union Boulevard, Suite 540
	 	  	Lakewood, CO 80228
		
	 	  	(Signature Continued)

  

 23 

			
	VCG HOLDING CORP., a Colorado corporation
		
	By:	 	 /S/    DONALD W. PROSSER

	 	 	        Donald W. Prosser
	 	 	        Chief Financial and Accounting Officer

  

 24

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