Document:

exv10w4

Exhibit
10.4

Execution Copy

NONCOMPETITION AND NONSOLICITATION AGREEMENT

     This Noncompetition and Nonsolicitation Agreement (this “Agreement”) is made and
entered into as of December 29, 2010 (the “Agreement Date”), by and among PGxHealth,
LLC, a Delaware limited liability company (“Seller”), Clinical Data, Inc., a Delaware
corporation (“Seller Parent”), and Transgenomic, Inc., a Delaware corporation
(“Buyer”). Capitalized terms used and not otherwise defined in this Agreement shall have the
meanings given to them in the Purchase Agreement (as defined below).

RECITALS

     Whereas, Seller, Seller Parent and Buyer have entered into that certain Asset
Purchase Agreement, dated as of November 29, 2010, as amended by that certain Amendment to Asset
Purchase Agreement, dated December 29, 2010, by and among Seller, Seller Parent and Buyer
(together, the “Purchase Agreement”);

     Whereas, in connection with and as a condition to Buyer’s obligation to consummate
the acquisition of the Assets from Seller and Seller Parent pursuant to the Purchase Agreement (the
“Sale”), and to enable Buyer to secure more fully the benefits of the Sale, Buyer has required that
Seller and Seller Parent enter into this Agreement; and

     Whereas, each of Seller and Seller Parent believe that the restrictions set forth in
this Agreement are just and reasonable in light of the Sale and are entering into this Agreement in
order to induce Buyer to consummate the Sale and the other transactions contemplated by the
Transaction Documents.

     Now, Therefore, in consideration of the foregoing and the respective covenants,
agreements and representations and warranties set forth herein, the parties to this Agreement,
intending to be legally bound, hereby agree as follows:

AGREEMENT

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

     1.1 “Affiliate” shall mean, with respect to any Person, a direct or indirect wholly-owned
subsidiary of such Person.

     1.2 “Business” shall mean the business of: (i) providing the proprietary FAMILION family of
genetic tests for inherited cardiac syndromes; and (ii) developing and commercializing other
proprietary genetic and related biomarker tests, other than any proprietary genetic and related
biomarker tests of or relating to the Seller’s therapeutic development business, which, for the
avoidance of doubt, does not and will not include any proprietary genetic and related biomarker
tests included in the Assets.

 

 

     1.3 “Competitive Business” means any business, whether conducted within or outside of the
United States, that competes, either directly or indirectly, with the Business or that otherwise
interferes, either directly or indirectly, with the Business.

     1.4 “Noncompetition Period” shall mean the period commencing on the Closing Date and ending on
the third (3rd) anniversary of the Closing Date; provided, however, that in the
event of any breach by either Seller or Seller Parent or any of their Affiliates or Representatives
of any provision of this Agreement, the Noncompetition Period shall be automatically extended by a
number of days equal to the total number of days in the period from the date on which such breach
shall have first occurred through the date as of which such breach shall have been fully cured.

     1.5 “Representatives” means the executive officers and employees.

     1.6 “Seller Employee” means any individual who is an employee of Seller or Seller Parent on
the Closing Date, other than Specified Employees.

     1.7 “Specified Employee” means any individual who: (i) is or was an employee of Seller or
Seller Parent that, on the Closing Date or during the one hundred eighty (180) day period ending on
the Closing Date, provided services to Seller or Parent Seller in connection with the Business; or
(ii) is an employee of Buyer or its Affiliates at any time during the Noncompetition Period.

2. Restriction on Competition. Each of Seller and Seller Parent agree that, during the
Noncompetition Period, it shall not, and shall not permit any of its Affiliates or Representatives
to manage, control, participate in or otherwise engage in, directly or indirectly, a Competitive
Business; provided, however, that Seller and Seller Parent may, without violating
the restrictions set forth in this Section 2, own, as a passive investment, shares of capital stock
of a publicly held corporation that engages in a Competitive Business if (i) such shares are
actively traded on an Exchange, (ii) the number of shares of such corporation’s capital stock that
are owned beneficially (directly or indirectly) by Seller and Seller Parent, and the number of
shares of such corporation’s capital stock that are owned beneficially (directly or indirectly) by
Seller’s and Seller Parent’s Affiliates and Representatives collectively represent less than one
percent (1%) of the total number of shares of such corporation’s outstanding capital stock and
(iii) neither Seller nor Seller Parent nor any of their respective Affiliates or Representatives is
otherwise associated directly or indirectly with such corporation or with any Affiliate or
Representative of such corporation.

3. No Hiring or Solicitation of Employees.

     3.1 Each of Seller and Seller Parent agree that, during the Noncompetition Period, it shall
not, and shall not permit any of its Affiliates or Representatives to: (i) hire any Specified
Employee; or (ii) directly or indirectly encourage, induce, attempt to induce, solicit or attempt
to solicit (on its own behalf or on behalf of any other Person) any Specified Employee to leave his
or her employment with Buyer or any of its Affiliates or Representatives, as applicable;
provided, however, that this paragraph will not restrict Seller and Seller Parent
from hiring any Specified Employee who applies for employment with Seller or Seller Parent in
response to an

 

 

advertisement in a publication or medium of general circulation that is not targeted to such
Specified Employee.

     3.2 Buyer agrees that, during the Noncompetition Period, it shall not, and shall not permit
any of its Affiliates or Representatives to: (i) hire any Seller Employee; or (ii) directly or
indirectly encourage, induce, attempt to induce, solicit or attempt to solicit (on its own behalf
or on behalf of any other Person) any Seller Employee to leave his or her employment with Seller or
any of its Affiliates or Representatives as applicable; provided, however, that
this paragraph will not restrict Buyer from hiring any Seller Employee who applies for employment
with Buyer in response to an advertisement in a publication or medium of general circulation that
is not targeted to such Seller Employee.

4. Nondisparagement. Each of Seller and Seller Parent agree that, during the
Noncompetition Period, it shall not make any written or oral statements or disclosures, or cause or
encourage any of its Affiliates, Representatives or directors to make any written or oral
statements or disclosures, that defame, disparage or in any way criticize the Business or the
reputation, practices or conduct of Buyer or any of its Affiliates, Representatives or directors.
Buyer agrees that, during the Noncompetition Period, it shall not make any written or oral
statements or disclosures, or cause or encourage any of its Affiliates, Representatives or
directors to make any written or oral statements or disclosures, that defame, disparage or in any
way criticize Seller or Seller Parent or the reputation, practices or conduct of Seller or Seller
Parent or any of its Affiliates, Representatives or directors.

5. Reasonableness of Covenants. The parties hereto expressly acknowledge and agree that
the character, duration and geographical scope of the restrictive covenants set forth in this
Agreement are reasonable in light of the circumstances as they exist on the date hereof, including,
without limitation, Seller’s and Seller Parent’s substantial economic interest in the transactions
contemplated by the Transaction Documents. Without limiting the generality of the foregoing, if
any court determines that any of the restrictive covenants contained herein, or any part thereof,
is unenforceable because of the character, duration or geographic scope of such covenant, the
parties agree that it would serve the mutual intent of such parties if such court would modify the
duration or scope of such provision so that such provision, in its modified form, shall then be
enforceable to the maximum extent permitted by applicable law.

	6.	 	Miscellaneous.

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

     6.2 Notices. All notices and other communications given or made pursuant hereto shall be in
writing and shall be deemed effectively given: (i) upon personal delivery to the party to be
notified; (ii) when sent by confirmed electronic mail or facsimile if sent during normal business
hours of the recipient; if not, then on the next business day; (iii) five (5) business days after
having been sent by registered or certified mail, return receipt requested, postage prepaid; or
(iv) one (1) business day after deposit with a nationally recognized overnight courier,

 

 

specifying next-day delivery, with written verification of receipt. All communications shall
be sent to the respective parties at the following addresses (or at such other addresses as shall
be specified by notice given in accordance with this Section 6.2):

     If to Seller or Seller Parent:

Clinical Data, Inc.

One Gateway Center, Suite 702

Newton, MA 02458

Attn: Caesar J. Belbel, EVP and Chief Legal Officer

Fax: 617-965-0445

     With a copy to (which shall not constitute notice):

Cooley LLP

500 Boylston Street, 14 Floor

Boston, MA 02116

Attn: Marc A. Recht

Fax: 617-937-2400

     If to Buyer:

Transgenomic, Inc.

12325 Emmet Street

Omaha, NE 68164

Attn: Craig J. Tuttle, President and Chief Executive Officer

Fax: 402-452-5461

     With a copy to (which shall not constitute notice):

Paul, Hastings, Janofsky & Walker LLP

4747 Executive Drive, 12th Floor

San Diego, CA 92121

Attn: Carl R. Sanchez, Esq.

Fax: 858-458-3005

Notwithstanding the foregoing, the parties expressly acknowledge and agree that, for purposes of
delivering any notice pursuant to this Agreement: (i) any such notice delivered to either Seller or
Seller Parent in accordance with this Section 6.2 shall be deemed to have been delivered to both
Seller and Seller Parent; and (ii) any such notice given by either Seller or Seller Parent in
accordance with this Section 6.2 shall be deemed to have been given by both Seller and Seller
Parent.

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

 

 

     6.4 Governing Law. This Agreement shall be governed by and construed in accordance with the
laws of the State of Delaware, excluding any conflict of law rules that may direct the application
of the laws of another jurisdiction.

     6.5 Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns, if any. Neither Seller nor Seller
Parent shall assign its rights or obligations under this Agreement to any Person without the
consent of Buyer. Buyer shall not assign its rights or obligations under this Agreement to any
Person without the consent of Seller Parent.

     6.6 Termination. This Agreement shall automatically terminate and be of no further force or
effect upon a merger, change of control, or sale of all or substantially all of the assets of
Seller Parent.

     6.7 Remedies Cumulative; Specific Performance. The rights and remedies of the parties hereto
shall be cumulative and not alternative. The parties agree that, in the event of any breach or
threatened breach by any party to this Agreement of any covenant, obligation or other provision set
forth in this Agreement for the benefit of any other party to this Agreement, such other party
shall be entitled, in addition to any other remedy that may be available to it, to: (i) a decree or
order of specific performance or mandamus to enforce the observance and performance of such
covenant, obligation or other provision; and (ii) an injunction restraining such breach or
threatened breach. The parties further agree that no Person shall be required to obtain, furnish
or post any bond or similar instrument in connection with or as a condition to obtaining any remedy
referred to in this Section 6.6, and the parties irrevocably waive any right they may have to
require the obtaining, furnishing or posting of any such bond or similar instrument.

     6.8 Waiver. No failure on the part of any Person to exercise any power, right, privilege or
remedy under this Agreement, and no delay on the part of any Person in exercising any power, right,
privilege or remedy under this Agreement, shall operate as a waiver of such power, right, privilege
or remedy and no single or partial exercise of any such power, right, privilege or remedy shall
preclude any other or further exercise thereof or of any other power, right, privilege or remedy.
No Person shall be deemed to have waived any claim arising out of this Agreement, or any power,
right, privilege or remedy under this Agreement, unless the waiver of such claim, power, right,
privilege or remedy is expressly set forth in a written instrument duly executed and delivered on
behalf of such Person, and any such waiver shall not be applicable or have any effect except in the
specific instance in which it is given.

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

     6.10 Severability. Subject to the provisions of Section 5, if one or more provisions of this
Agreement are held to be unenforceable under applicable law, the parties agree to renegotiate such
provision in good faith. In the event that the parties cannot reach a mutually agreeable and
enforceable replacement in writing for such provision, then: (i) such provision shall be excluded
from this Agreement; (ii) the balance of the Agreement shall be interpreted as

 

 

if such provision were so excluded; and (iii) the balance of the Agreement shall be
enforceable in accordance with its terms.

     6.11 Counterparts. This Agreement may be executed in counterparts and by facsimile
signatures, any one of which need not contain the signatures of more than one Party and each of
which shall be an original, but all such counterparts taken together shall constitute one and the
same instrument. The exchange of copies of this Agreement or amendments thereto and of signature
pages by facsimile transmission or by e-mail transmission in portable digital format (or similar
format) shall constitute effective execution and delivery of such instrument(s) as to the Parties
and may be used in lieu of the original Agreement or amendment for all purposes. Signatures of the
Parties transmitted by facsimile or by e-mail transmission in portable digital format (or similar
format) shall be deemed to be their original signatures for all purposes.

     6.12 Entire Agreement. This Agreement, together with each of the other Transaction Documents
and the schedules and exhibits hereto and thereto, set forth the entire understanding of the
parties hereto relating to the subject matter hereof and thereof and supersede all prior agreements
and understandings among or between any of the parties relating to the subject matter hereof and
thereof.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

     In Witness Whereof, the parties have duly executed this Noncompetition and
Nonsolicitation Agreement as of the date first set forth above.

	 	 	 	 	 
	 	BUYER:

Transgenomic, Inc.

 	 
	 	By:  	/s/ Craig J. Tuttle
 	 
	 	 	Craig J. Tuttle 	 
	 	 	President and Chief Executive Officer 	 
	 
	 	SELLER:

PGxHealth, LLC

 	 
	 	By: PGxHealth Holding, Inc.
	 
	 	 	Its:  Sole Member
 	 
	 	 	 	 
	 	By:  	/s/ Caesar J. Belbel
 	 
	 	 	Caesar J. Belbel 	 
	 	 	Executive Vice President and Chief Legal Officer 	 
	 
	 	SELLER PARENT:

Clinical Data, Inc.

 	 
	 	By:  	/s/ Caesar J. Belbel
 	 
	 	 	Caesar J. Belbel 	 
	 	 	Executive Vice President and Chief Legal Officer 	 
	 

[Signature Page to Noncompetition and Nonsolicitation Agreement]exv10w1

Exhibit 10.1

AGREEMENT

          This Agreement (this “Agreement”) is made and entered into as of January 5, 2011, by
and among SurModics, Inc. (the “Company” or “SurModics”) and the entities and
natural persons listed on Exhibit A hereto (collectively, the “Ramius Group”) (each of the
Company and the Ramius Group, a “Party” to this Agreement, and collectively, the
“Parties”).

          WHEREAS, the Ramius Group duly submitted a nomination letter to the Company on November 10,
2010 (the “Nomination Letter”) nominating three individuals as director candidates for
election to the Company’s board of directors (the “Board”) at the 2011 annual meeting of
shareholders of the Company (including any adjournment or postponement thereof, the “2011
Annual Meeting”); and

          WHEREAS, the Company and the members of the Ramius Group have determined (i) that the
interests of the Company and its shareholders would be best served by, among other things, avoiding
an election contest and the expense and disruption that may result therefrom and (ii) to come to an
agreement with respect to the composition of the Board, certain matters related to the 2011 Annual
Meeting and certain other matters, as provided in this Agreement.

          NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and
agreements contained herein, and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the Parties, intending to be legally bound hereby,
agree as follows:

	1.	 	Board Matters; Board Appointments; 2011 Annual Meeting; Committee Appointments;
Replacement Directors.

	 	(a)	 	Prior to the execution of this Agreement, (i) the Corporate Governance and
Nominating Committee of the Board has reviewed and approved the qualifications of
Jeffrey C. Smith and David Dantzker, M.D. (each a “New Appointee” and together,
the “New Appointees”) to serve as members of the Board and (ii) the Board has
determined, based on information provided by Mr. Smith and Dr. Dantzker, that each New
Appointee is “independent” as defined by the listing standards of the NASDAQ Stock
Market. The New Appointees shall comply with the Company’s current policies to the
extent such policies are consistent with law and applicable to all the Company’s
directors.
	 
	 	(b)	 	Simultaneously with the execution of this Agreement, the Company has taken all
necessary actions to (i) increase the size of the Board from ten (10) to twelve (12)
members, and (ii) appoint the New Appointees to fill the vacancies on the Board created
by increasing its size to twelve (12) members. Dr. Dantzker shall be appointed to the
class of directors whose terms expire in 2012, and Mr. Smith shall be appointed to the
class of directors whose terms expire in 2011.
	 
	 	(c)	 	Upon execution of this Agreement, the Ramius Group hereby withdraws the
Nomination Letter.

 

 

	 	(d)	 	The Company has taken all action necessary to establish a special committee
(the “Pharma Special Committee”) composed of four directors including Jeffrey
C. Smith (who will be Chair), David Dantzker, M.D., Susan E. Knight, and John W.
Benson. The Pharma Special Committee will be responsible for reviewing the strategic
alternatives available to the Company regarding the Company’s Pharmaceuticals business,
which shall include the right to work with, direct and seek advice from the Company’s
investment bank, and recommending to the Board an appropriate course of action, which
recommendation shall be subject to the review and approval of the Board.
	 
	 	(e)	 	The Company has taken all action necessary to appoint Jeffrey C. Smith to the
Organization and Compensation Committee of the Board and to appoint David Dantzker,
M.D. to the Audit Committee and Corporate Governance and Nominating Committee of the
Board. If any new Committee of the Board is formed after the date of this Agreement
and while Mr. Smith is a director of the Company, Mr. Smith shall be appointed the
Chair of any such Committee.
	 
	 	(f)	 	The Company agrees that in the Company’s definitive proxy statement for the
2011 Annual Meeting (the “2011 Proxy Statement”), it will include as a voting
matter, and recommend to shareholders that they vote in favor of, setting the size of
the Board at 10 members. Pursuant to the provisions of the Company’s Corporate
Governance Guidelines relating to the tenure of directors, John A. Meslow, shall retire
from the Board effective at the conclusion of the 2011 Annual Meeting. The Company
acknowledges that it has received a letter from Mr. Meslow, whereby Mr. Meslow has
resigned as a member of the Board, effective at the conclusion of the 2011 Annual
Meeting.
	 
	 	(g)	 	The Company and the Ramius Group agree that following the conclusion of the
2011 Annual Meeting the size of the Board shall not exceed 10 members until the
conclusion of the Company’s 2012 annual meeting of shareholders (including any
adjournment or postponement thereof, the “2012 Annual Meeting”). There will be
four (4) directors up for election at the 2012 Annual Meeting.
	 
	 	(h)	 	The Company agrees that if Mr. Smith is unable or refuses to serve as a
director, resigns as a director or is removed as a director prior to the Annual Meeting
of the shareholders of the Company to be held in 2014 (the “2014 Annual
Meeting”), the Ramius Group shall have the ability to recommend a substitute
person(s), who will qualify as “independent” pursuant to NASDAQ Stock Market listing
standards, to replace Mr. Smith, subject to the approval of SurModics’ Corporate
Governance and Nominating Committee in good faith after exercising its fiduciary duties
(any such replacement nominee appointed in accordance with the provisions of this
clause (h) shall be referred to as the “Smith Replacement Director”). In the
event the Corporate Governance and Nominating Committee does not accept a substitute
person(s) recommended by the Ramius Group, the Ramius Group will have the right to
recommend additional substitute persons for consideration by the Corporate Governance
and Nominating Committee. Upon the acceptance of a replacement director nominee by the
Corporate Governance and Nominating Committee, the

2

 

	 	 	 	Board will appoint such replacement director to the Board no later than five business
days after the Corporate Governance and Nominating Committee’s recommendation of such
replacement director. The Smith Replacement Director shall be deemed a New Appointee for
all purposes of this Agreement.

	 	(i)	 	The Company agrees that if Dr. Dantzker is unable or refuses to serve as a
director, resigns as a director or is removed as a director prior to the 2014 Annual
Meeting, a substitute person to replace Dr. Dantzker shall be recommended for
appointment to the Board by the Corporate Governance and Nominating Committee,
following the identification of a candidate identified by Ramius mutually acceptable to
the Company and the Ramius Group (any such replacement appointed in accordance with the
provisions of this clause (i) shall be referred to as the “Dantzker Replacement
Director”). Such substitute person shall qualify as “independent” pursuant to
NASDAQ Stock Market listing standards. Once the Company and the Ramius Group identify
a mutually acceptable candidate, the Board shall appoint such candidate as a Dantzker
Replacement Director to the Board no later than five (5) business days after the
Corporate Governance and Nominating Committee’s recommendation of such replacement
director.
	 
	 	(j)	 	The Parties acknowledge that the only matters that are to be presented by the
Company for consideration by shareholders at the 2011 Annual Meeting include (i)
electing the Company’s director-nominees, Jeffrey C. Smith (or the Smith Replacement
Director, if applicable), Robert C. Buhrmaster, and Susan E. Knight (the “2011
Nominees”), (ii) setting the number of directors on the Board at 10, (iii)
ratifying the Company’s independent registered public accounting firm, (iv) a
non-binding advisory vote on executive compensation, and (v) a non-binding advisory
vote regarding the frequency of non-binding shareholder advisory votes on executive
compensation (the “2011 Proposals”).
	 
	 	(k)	 	The Company agrees that Dr. Dantzker shall be nominated as part of the
Company’s slate of directors at the 2012 Annual Meeting (such slate, the “2012
Nominees”).
	 
	 	(l)	 	The Company agrees to recommend, support and solicit proxies for the election
of Mr. Smith (or the Smith Replacement Director, if applicable) at the 2011 Annual
Meeting in the same manner as for the other 2011 Nominees. The Company agrees to
recommend, support and solicit proxies for the election of Dr. Dantzker (or the
Dantzker Replacement Director, if applicable) in the same manner as for the Company’s
other 2012 Nominees at the 2012 Annual Meeting.
	 
	 	(m)	 	At the 2011 Annual Meeting, the Ramius Group agrees to appear in person or by
proxy and vote all shares of Common Stock beneficially owned by it and its Affiliates
(i) in favor of the election of the 2011 Nominees, setting the number of directors on
the Board at ten (10) and the ratification of the Company’s independent registered
public accounting firm, and (ii) in a manner consistent with the recommendation of
RiskMetrics with respect to the Company’s compensation of its named executive officers
and the annual non-binding shareholder advisory vote on executive compensation
(provided, however, if for any reason RiskMetrics fails to provide a

3

 

	 	 	 	recommendation on the two proposals identified in this subsection (ii), the Ramius Group
shall be free to vote as it chooses on these two proposals). No later than forty-eight
hours prior to the 2011 Annual Meeting, the Ramius Group shall cause to be executed
proxies for the 2011 Proposals (in the form utilized by the Company to solicit proxies
for all shareholders) so as to vote all shares of Common Stock beneficially owned by it
and its Affiliates in accordance with this Section 1(m). The Ramius Group shall not
withdraw or modify any such proxies. From the date hereof through the 2011 Annual
Meeting, neither the Company, the Ramius Group nor any member of the Ramius Group shall
directly or indirectly make any statements or engage in any activities in opposition to
the 2011 Proposals or enter into any agreement, understanding or arrangement with the
purpose or effect to cause or further any of the foregoing.

	 	(n)	 	Neither the Ramius Group nor any member of the Ramius Group shall (i) nominate
any person for election at the 2011 Annual Meeting, (ii) submit any proposal for
consideration at, or bring any other business before, the 2011 Annual Meeting, directly
or indirectly, or (iii) take any action to call a special meeting of the shareholders
of the Company prior to the 2012 Annual Meeting. The Ramius Group shall not enter into
any agreement, understanding or arrangement with a third party with the purpose or
effect to cause or further any of the foregoing or otherwise engage in any activities
with the purpose or effect to cause or further any of the foregoing.
	 
	 	(o)	 	Notwithstanding anything to the contrary herein, if at any time prior to the
conclusion of the 2014 Annual Meeting the Ramius Group’s aggregate beneficial ownership
of Common Stock decreases to less than three percent (3%) of the Company’s then
outstanding Common Stock, Mr. Smith (or the Smith Replacement Director) shall promptly
tender to the Company an irrevocable resignation letter in a form satisfactory to the
Company, pursuant to which he shall resign from the Board and all committees thereof to
which he is then a member, and the rights of the Ramius Group to recommend a Smith
Replacement Director to fill the vacancy caused by the resignation of Mr. Smith (or any
Smith Replacement Director) pursuant to Section 1(h) and to any involvement in
identifying a substitute director under Section 1(i) shall automatically terminate. The
Ramius Group has obtained the conditional resignation letter from Mr. Smith (and will
obtain such a letter from Smith Replacement Director prior to his or her appointment to
the Board) and agrees to provide the resignation letter to the Company to the extent
required by this Section 1(o).
	 
	 	(p)	 	As used in this Agreement, the terms “Affiliate” and “Associate” shall have the
respective meanings set forth in Rule 12b-2 promulgated by the SEC under the Exchange
Act; the terms “beneficial owner” and “beneficial ownership” shall have the respective
meanings as set forth in Rule 13d-3 promulgated by the SEC under the Exchange Act; and
the terms “person” or “persons” shall mean any individual, corporation (including
not-for-profit), general or limited partnership, limited liability company, joint
venture, estate, trust, association, organization or other entity of any kind or
nature.

4

 

	2.	 	Representations and Warranties of the Company.

          The Company represents and warrants to the Ramius Group that (a) the Company has the corporate
power and authority to execute this Agreement and to bind it thereto, (b) this Agreement has been
duly and validly authorized, executed and delivered by the Company, constitutes a valid and binding
obligation and agreement of the Company, and is enforceable against the Company in accordance with
its terms, except as enforcement thereof may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium, fraudulent conveyance or similar laws generally affecting the rights of
creditors and subject to general equity principles, and (c) the execution, delivery and performance
of this Agreement by the Company does not and will not violate or conflict with (i) any law, rule,
regulation, order, judgment or decree applicable to it, or (ii) result in any breach or violation
of or constitute a default (or an event which with notice or lapse of time or both could become a
default) under or pursuant to, or result in the loss of a material benefit under, or give any right
of termination, amendment, acceleration or cancellation of, any organizational document, agreement,
contract, commitment, understanding or arrangement to which the Company is a party or by which it
is bound.

	3.	 	Representations and Warranties of the Ramius Group.

          The Ramius Group shall cause its Affiliates to comply with the terms of this Agreement. Each
member of the Ramius Group listed herein, on behalf of himself or itself, as applicable, represents
and warrants to the Company that (a) as of the date hereof, the Ramius Group and each member of the
Ramius Group beneficially owns only the number of shares of Common Stock as set forth opposite his
or its name on Exhibit A and Exhibit A includes all Affiliates of any members of the Ramius Group
that own any securities of the Company beneficially or of record, (b) the authorized signatory of
each member of the Ramius Group set forth on the signature page hereto has the power and authority
to execute this Agreement and to bind such member to this Agreement, (c) this Agreement has been
duly authorized, executed and delivered by such member, and is a valid and binding obligation of
such member, enforceable against such member in accordance with its terms, except as enforcement
thereof may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent
conveyance or similar laws generally affecting the rights of creditors and subject to general
equity principles, (d) the execution of this Agreement, the consummation of any of the transactions
contemplated hereby, and the fulfillment of the terms hereof, in each case in accordance with the
terms hereof, will not conflict with, or result in a breach or violation of the organizational
documents of any member of the Ramius Group as currently in effect and (e) the execution, delivery
and performance of this Agreement by each member of the Ramius Group does not and will not violate
or conflict with (i) any law, rule, regulation, order, judgment or decree applicable to it, or (ii)
result in any breach or violation of or constitute a default (or an event which with notice or
lapse of time or both could become a default) under or pursuant to, or result in the loss of a
material benefit under, or give any right of termination, amendment, acceleration or cancellation
of, any organizational document, agreement, contract, commitment, understanding or arrangement to
which such member is a party or by which it is bound.

5

 

	4.	 	Press Release.

          Promptly following the execution of this Agreement, the Company and the Ramius Group shall
jointly issue a mutually agreeable press release (the “Mutual Press Release”) announcing
the terms of this Agreement, in the form attached hereto as Exhibit B. Prior to the issuance of the
Mutual Press Release, neither the Company nor the Ramius Group shall issue any press release or
public announcement regarding this Agreement without the prior written consent of the other party.

	5.	 	Specific Performance.

          Each of the members of the Ramius Group, on the one hand, and the Company, on the other hand,
acknowledges and agrees that irreparable injury to the other party hereto would occur in the event
any of the provisions of this Agreement were not performed in accordance with their specific terms
or were otherwise breached and that such injury would not be adequately compensable in damages. It
is accordingly agreed that the members of the Ramius Group or any of them, on the one hand, and the
Company, on the other hand (the “Moving Party”), shall each be entitled to specific
enforcement of, and injunctive relief to prevent any violation of, the terms hereof, and the other
party hereto will not take action, directly or indirectly, in opposition to the Moving Party
seeking such relief on the grounds that any other remedy or relief is available at law or in
equity.

	6.	 	Expenses.

          The Company shall reimburse the Ramius Group for its reasonable, documented out of pocket fees
and expenses (including legal expenses) incurred in connection with the matters related to the 2011
Annual Meeting and the negotiation and execution of this Agreement, provided that such
reimbursement shall not exceed twenty-five thousand dollars ($25,000) in the aggregate.

	7.	 	Severability.

          If any term, provision, covenant or restriction of this Agreement is held by a court of
competent jurisdiction to be invalid, void or unenforceable, the remainder of the terms,
provisions, covenants and restrictions of this Agreement shall remain in full force and effect and
shall in no way be affected, impaired or invalidated. It is hereby stipulated and declared to be
the intention of the parties that the parties would have executed the remaining terms, provisions,
covenants and restrictions without including any of such which may be hereafter declared invalid,
void or unenforceable. In addition, the parties agree to use their best efforts to agree upon and
substitute a valid and enforceable term, provision, covenant or restriction for any of such that is
held invalid, void or enforceable by a court of competent jurisdiction.

	8.	 	Notices.

          Any notices, consents, determinations, waivers or other communications required or permitted
to be given under the terms of this Agreement must be in writing and will be deemed to have been
delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent

6

 

by facsimile (provided confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one business day after deposit with a nationally
recognized overnight delivery service, in each case properly addressed to the party to receive the
same. The addresses and facsimile numbers for such communications shall be:

               If to the Company:

SurModics, Inc.

9924 West 74th Street

Eden Prairie, MN 55344

Attention: General Counsel

Facsimile: (952) 345-3560

               With a copy to:

Faegre & Benson LLP

2200 Wells Fargo Center

90 South 7th Street

Minneapolis, MN 55402

Attention: Douglas P. Long

Facsimile: (612) 766-1600

               If to the Ramius Group or any member of the Ramius Group:

Ramius Value and Opportunity Master Fund Ltd

c/o Ramius Value and Opportunity Advisors LLC

599 Lexington Avenue, 20th Floor

New York, New York 10022

Attention: Owen S. Littman

Facsimile: (212) 845-7995

               With a copy to:

Olshan Grundman Frome Rosenzweig & Wolosky LLP

Park Avenue Tower

65 East 55th Street

New York, NY 10022

Attention: Steven Wolosky

Facsimile: (212) 451-2222

	9.	 	Applicable Law.

          This Agreement shall be governed by and construed and enforced in accordance with the laws of
the State of Minnesota without reference to the conflict of laws principles thereof. Each of the
Parties hereto irrevocably agrees that any legal action or proceeding with respect to this
Agreement and the rights and obligations arising hereunder, or for recognition and enforcement of
any judgment in respect of this Agreement and the rights and obligations arising hereunder

7

 

brought by the other Party hereto or its successors or assigns, shall be brought and determined
exclusively in the Federal or State courts of the State of Minnesota or New York. Each of the
Parties hereto hereby irrevocably submits with regard to any such action or proceeding for itself
and in respect of its property, generally and unconditionally, to the personal jurisdiction of the
aforesaid courts and agrees that it will not bring any action relating to this Agreement in any
court other than the aforesaid courts. Each of the Parties hereto hereby irrevocably waives, and
agrees not to assert in any action or proceeding with respect to this Agreement, (i) any claim that
it is not personally subject to the jurisdiction of the above-named courts for any reason, (ii) any
claim that it or its property is exempt or immune from jurisdiction of any such court or from any
legal process commenced in such courts (whether through service of notice, attachment prior to
judgment, attachment in aid of execution of judgment, execution of judgment or otherwise), and
(iii) to the fullest extent permitted by applicable legal requirements, any claim that (A) the
suit, action or proceeding in such court is brought in an inconvenient forum, (B) the venue of such
suit, action or proceeding is improper, or (C) this Agreement, or the subject matter hereof, may
not be enforced in or by such courts.

10.     Counterparts. This Agreement may be executed in one or more counterparts which
together shall constitute a single agreement.

	11.	 	Entire Agreement; Amendment and Waiver; Successors and Assigns.

          This Agreement contains the entire understanding of the parties hereto with respect to its
subject matter. There are no restrictions, agreements, promises, representations, warranties,
covenants or undertakings between the Parties other than those expressly set forth herein. No
modifications of this Agreement can be made except in writing signed by an authorized
representative of each the Company and the Ramius Group. No failure on the part of any Party to
exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of such right, power or remedy by such
Party preclude any other or further exercise thereof or the exercise of any other right, power or
remedy. All remedies hereunder are cumulative and are not exclusive of any other remedies provided
by law. The terms and conditions of this Agreement shall be binding upon, inure to the benefit of,
and be enforceable by the Parties hereto and their respective successors, heirs, executors, legal
representatives, and permitted assigns. No Party shall assign this Agreement or any rights or
obligations hereunder without, with respect to any member of the Ramius Group, the prior written
consent of the Company, and with respect to the Company, the prior written consent of the Ramius
Group.

	12.	 	Nondisparagement.

          For a period beginning on the effective date of this Agreement and ending on the date that is
twenty (20) business days prior to the shareholder nomination deadline for the 2012 Annual Meeting,
each of the Parties covenants and agrees that, for so long as either of the New Appointees or their
respective Replacement Director(s) is serving as a member of the Board, neither it nor any of its
respective subsidiaries, affiliates, successors, assigns, officers, key employees or directors
shall in any way publicly disparage, attempt to discredit, or otherwise call into disrepute, the
other Parties or such other Parties’ subsidiaries, affiliates, successors, assigns, officers
(including any current officer of a Party or a Parties’ subsidiaries who no longer serves

8

 

in such capacity following the execution of this Agreement), directors (including any current
director of a Party or a Parties’ subsidiaries who no longer serves in such capacity following the
execution of this Agreement), employees, shareholders, agents, attorneys or representatives, or any
of their products or services, in any manner that would damage the business or reputation of such
other Parties, their products or services or their subsidiaries, affiliates, successors, assigns,
officers (or former officers), directors (or former directors), employees, shareholders, agents,
attorneys or representatives.

[The remainder of this page intentionally left blank]

9

 

          IN WITNESS WHEREOF, this Agreement has been duly executed and delivered by the duly
authorized signatories of the parties as of the date hereof.

	 	 	 	 	 
	 	SURMODICS, INC.

 	 
	 	By:  	/s/ Philip D. Ankeny
 	 
	 	 	Name:  	Philip D. Ankeny 	 
	 	 	Title:  	Senior Vice President and

Chief Financial Officer 	 
	 

THE RAMIUS GROUP:

	 	 	 	 	 	 	 

	RAMIUS VALUE AND OPPORTUNITY 

MASTER FUND LTD	 	RAMIUS ADVISORS, LLC
	 
	 	 	 	 	 	 
	By:

	 	Ramius Value and Opportunity
Advisors LLC,
	 	By:
	 	Ramius LLC,
	 

	 	its investment manager
	 	 	 	its sole member
	 
	 	 	 	 	 	 
	RAMIUS VALUE AND OPPORTUNITY 

ADVISORS LLC	 	RAMIUS LLC
	 
	 	 	 	 	 	 
	By:

	 	Ramius LLC
	 	By:
	 	Cowen Group, Inc.,
	 

	 	its sole member
	 	 	 	its sole member
	 
	 	 	 	 	 	 
	COWEN OVERSEAS INVESTMENT LP	 	COWEN GROUP, INC.
	 
	 	 	 	 	 	 
	By:

	 	Ramius Advisors, LLC,	 	 	 	 
	 

	 	its general partner	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	 	 	RCG HOLDINGS LLC
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	C4S & Co., L.L.C.,
	 

	 	 	 	 	 	its managing member

	 	 	 	 	 
	 	C4S & Co., L.L.C.

 	 
	 	By:  	/s/ Owen S. Littman
 	 
	 	 	Name:  	Owen S. Littman 	 
	 	 	Title:  	Authorized Signatory 	 
	 

	 	 	 	 	 
	 	 	 
	/s/ Owen S. Littman
 	 	 
	Name:  	Owen S. Littman 	 	 
	 	As attorney-in-fact for Jeffrey M. Solomon,
Peter A. Cohen, Morgan B. Stark, Thomas W.
Strauss and David Dantzker, M.D. 	 
	 
	 	 	 
	/s/ Jeffrey C. Smith
 	 	 
	JEFFREY C. SMITH 	 	 
	 	 	 
	 

Signature Page — Agreement

 

 

EXHIBIT A

The Ramius Group

	 	 	 	 	 
	Name	 	Shares
	 
	 	 	 	 
	Ramius Value and Opportunity Master Fund Ltd
	 	 	1,566,567	 
	Cowen Overseas Investment LP
	 	 	522,193	 
	Ramius Value and Opportunity Advisors LLC
	 	 	1,566,567	 
	Ramius Advisors, LLC
	 	 	522,193	 
	Ramius LLC
	 	 	2,088,760	 
	Cowen Group, Inc.
	 	 	2,088,760	 
	RCG Holdings LLC
	 	 	2,088,760	 
	C4S & Co., L.L.C.
	 	 	2,088,760	 
	Peter A. Cohen
	 	 	2,088,760	 
	Morgan B. Stark
	 	 	2,088,760	 
	Thomas W. Strauss
	 	 	2,088,760	 
	Jeffrey M. Solomon
	 	 	2,088,760	 
	Jeffrey C. Smith
	 	 	0	 
	David Dantzker, M.D.
	 	 	500	 

EXHIBIT A

 

 

EXHIBIT B

Mutual Press Release

EXHIBIT B

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